81_FR_25542 81 FR 25460 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility

81 FR 25460 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 82 (April 28, 2016)

Page Range25460-25462
FR Document2016-09901

Federal Register, Volume 81 Issue 82 (Thursday, April 28, 2016)
[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)]
[Notices]
[Pages 25460-25462]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09901]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77694; File No. SR-BOX-2016-17]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility

April 22, 2106.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 12, 2016, BOX Options Exchange LLC (the ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. The Exchange filed the 
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ 
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the Fee Schedule to 
amend the BOX Volume Rebate (``BVR'') in Section I.B.2 of the Fee 
Schedule on the BOX Market LLC (``BOX'') options facility. While 
changes to the fee schedule pursuant to this proposal will be effective 
upon filing, the changes will become operative on April 13, 2016. The 
text of the proposed rule change is available from the principal office 
of the Exchange, at the Commission's Public Reference Room and also on 
the Exchange's Internet Web site at http://boxexchange.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Fee Schedule for trading on BOX. 
Specifically, the Exchange proposes to amend the BOX Volume Rebate 
(``BVR'') in Section I.B.2 of the Fee Schedule.
    Under the current BVR, the Exchange offers a tiered per contract 
rebate for all

[[Page 25461]]

PIP Orders and COPIP Orders of 100 contracts and under. PIP and COPIP 
executions of 100 contracts and under are awarded a per contract rebate 
calculated on a monthly basis by totaling the Participant's PIP and 
COPIP volume submitted to BOX, relative to the total national Customer 
volume in multiply-listed options classes. The current per contract 
rebate for Participants in PIP and COPIP Transactions under the BVR is:

------------------------------------------------------------------------
                   Percentage thresholds     Per contract rebate  (all
                    of national customer          account types)
       Tier         volume in multiply-  -------------------------------
                       listed options
                     classes  (monthly)         PIP            COPIP
------------------------------------------------------------------------
1................  0.000% to 0.159%.....         ($0.00)         ($0.00)
2................  0.160% to 0.339%.....          (0.04)          (0.02)
3................  0.340% to 0.99%......          (0.11)          (0.04)
4................  1.00% and Above......          (0.14)          (0.06)
------------------------------------------------------------------------

    The Exchange proposes to amend the BVR to apply the rebate to only 
those PIP Orders and COPIP Orders of 100 and under contracts that do 
not trade solely with their contra order. The percentage thresholds 
will continue to be based on all PIP and COPIP volume submitted to BOX, 
relative to the total national Customer volume in multiply-listed 
options classes.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act, in general, and Section 
6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among BOX Participants and other persons using its facilities 
and does not unfairly discriminate between customers, issuers, brokers 
or dealers.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the proposed amendments to the BVR are 
reasonable, equitable and non-discriminatory. The BVR was adopted to 
attract Public Customer order flow to the Exchange by offering these 
Participants incentives to submit their PIP and COPIP Orders to the 
Exchange. The Exchange believes it is reasonable and appropriate to 
continue to provide incentives for Public Customers, which will result 
in greater liquidity and ultimately benefit all Participants trading on 
the Exchange. The Exchange believes providing a rebate to Participants 
that reach a certain volume threshold is equitable and non-
discriminatory as the rebate will apply to all Participants uniformly.
    The Exchange believes it is reasonable, equitable and non-
discriminatory to apply the BVR to PIP and COPIP Orders that do not 
trade solely with their contra order. The BVR is intended to 
incentivize Participants to direct Customer order flow to the Exchange, 
and the Exchange believes incentives are not necessary for internalized 
PIP and COPIP Orders that only trade against their contra order. 
Additionally, other Exchanges also make this distinction when providing 
rebates for transactions in their auction mechanisms.\6\
---------------------------------------------------------------------------

    \6\ See the International Securities Exchange (``ISE'') Fee 
Schedule. Under the ISE Fee Schedule the initiator receives a 
``break-up'' rebate only for contracts that are submitted to their 
auction mechanism that do not trade with their contra order.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes the 
proposed fee changes are reasonably designed to enhance competition in 
BOX transactions, particularly auction transactions.
    The proposed rule change amends the BVR to only provide a rebate 
when the PIP or COPIP Order does not trade with its contra order. The 
Exchange does not believe that the proposed change burdens competition 
and will instead help promote competition by providing additional 
incentives for market participants to submit customer order flow to BOX 
and thus, create a greater opportunity for retail customers to receive 
additional price improvement.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Exchange Act \7\ and Rule 19b-4(f)(2) 
thereunder,\8\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2016-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2016-17. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than

[[Page 25462]]

those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BOX-2016-17, and should be 
submitted on or before May 19, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-09901 Filed 4-27-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                  25460                         Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices

                                                  these types of orders would further align               All submissions should refer to File                  2016, BOX Options Exchange LLC (the
                                                  the exclusion of Professional-to-                       Number SR–Phlx–2016–52. This file                     ‘‘Exchange’’) filed with the Securities
                                                  Professional orders with the exclusion                  number should be included on the                      and Exchange Commission
                                                  of Customer-to-Customer and Customer-                   subject line if email is used. To help the            (‘‘Commission’’) the proposed rule
                                                  to-Professional orders from receiving a                 Commission process and review your                    change as described in Items I, II, and
                                                  QCC Rebate.                                             comments more efficiently, please use                 III below, which Items have been
                                                     The Exchange’s proposal does not                     only one method. The Commission will                  prepared by the Exchange. The
                                                  place on undue burden on inter-market                   post all comments on the Commission’s                 Exchange filed the proposed rule change
                                                  competition because the QCC order type                  Internet Web site (http://www.sec.gov/                pursuant to Section 19(b)(3)(A)(ii) of the
                                                  is similar on other options exchanges 36                rules/sro.shtml).                                     Act,3 and Rule 19b–4(f)(2) thereunder,4
                                                  and these exchanges may also file to                       Copies of the submission, all                      which renders the proposal effective
                                                  eliminate the distinction between                       subsequent amendments, all written                    upon filing with the Commission. The
                                                  Customers and Professionals for the                     statements with respect to the proposed               Commission is publishing this notice to
                                                  QCC order type.                                         rule change that are filed with the                   solicit comments on the proposed rule
                                                                                                          Commission, and all written                           change from interested persons.
                                                  C. Self-Regulatory Organization’s                       communications relating to the
                                                  Statement on Comments on the                            proposed rule change between the                      I. Self-Regulatory Organization’s
                                                  Proposed Rule Change Received From                      Commission and any person, other than                 Statement of the Terms of the Substance
                                                  Members, Participants, or Others                        those that may be withheld from the                   of the Proposed Rule Change
                                                    No written comments were either                       public in accordance with the                            The Exchange is filing with the
                                                  solicited or received.                                  provisions of 5 U.S.C. 552, will be                   Securities and Exchange Commission
                                                                                                          available for Web site viewing and                    (‘‘Commission’’) a proposed rule change
                                                  III. Date of Effectiveness of the                       printing in the Commission’s Public                   to amend the Fee Schedule to amend
                                                  Proposed Rule Change and Timing for                     Reference Room, 100 F Street NE.,                     the BOX Volume Rebate (‘‘BVR’’) in
                                                  Commission Action                                       Washington, DC 20549, on official                     Section I.B.2 of the Fee Schedule on the
                                                     The foregoing rule change has become                 business days between the hours of                    BOX Market LLC (‘‘BOX’’) options
                                                  effective pursuant to Section                           10:00 a.m. and 3:00 p.m. Copies of the                facility. While changes to the fee
                                                  19(b)(3)(A)(ii) of the Act.37                           filing also will be available for                     schedule pursuant to this proposal will
                                                     At any time within 60 days of the                    inspection and copying at the principal               be effective upon filing, the changes will
                                                  filing of the proposed rule change, the                 office of the Exchange. All comments                  become operative on April 13, 2016.
                                                  Commission summarily may                                received will be posted without change;               The text of the proposed rule change is
                                                  temporarily suspend such rule change if                 the Commission does not edit personal                 available from the principal office of the
                                                  it appears to the Commission that such                  identifying information from                          Exchange, at the Commission’s Public
                                                  action is: (i) Necessary or appropriate in              submissions. You should submit only                   Reference Room and also on the
                                                  the public interest; (ii) for the protection            information that you wish to make                     Exchange’s Internet Web site at http://
                                                  of investors; or (iii) otherwise in                     available publicly.                                   boxexchange.com.
                                                  furtherance of the purposes of the Act.                    All submissions should refer to File               II. Self-Regulatory Organization’s
                                                  If the Commission takes such action, the                Number SR–Phlx–2016–52 and should                     Statement of the Purpose of, and
                                                  Commission shall institute proceedings                  be submitted on or before May 19, 2016.               Statutory Basis for, the Proposed Rule
                                                  to determine whether the proposed rule                    For the Commission, by the Division of              Change
                                                  should be approved or disapproved.                      Trading and Markets, pursuant to delegated
                                                                                                          authority.38                                             In its filing with the Commission, the
                                                  IV. Solicitation of Comments                                                                                  Exchange included statements
                                                                                                          Brent J. Fields,
                                                    Interested persons are invited to                                                                           concerning the purpose of and basis for
                                                                                                          Secretary.
                                                  submit written data, views, and                                                                               the proposed rule change and discussed
                                                                                                          [FR Doc. 2016–09898 Filed 4–27–16; 8:45 am]           any comments it received on the
                                                  arguments concerning the foregoing,
                                                                                                          BILLING CODE 8011–01–P                                proposed rule change. The text of these
                                                  including whether the proposed rule
                                                  change is consistent with the Act.                                                                            statements may be examined at the
                                                  Comments may be submitted by any of                                                                           places specified in Item IV below. The
                                                                                                          SECURITIES AND EXCHANGE                               Exchange has prepared summaries, set
                                                  the following methods:                                  COMMISSION                                            forth in Sections A, B, and C below, of
                                                  Electronic Comments                                     [Release No. 34–77694; File No. SR–BOX–               the most significant aspects of such
                                                    • Use the Commission’s Internet                       2016–17]                                              statements.
                                                  comment form (http://www.sec.gov/
                                                                                                          Self-Regulatory Organizations; BOX                    A. Self-Regulatory Organization’s
                                                  rules/sro.shtml); or
                                                                                                                                                                Statement of the Purpose of, and
                                                    • Send an email to rule-comments@                     Options Exchange LLC; Notice of
                                                                                                          Filing and Immediate Effectiveness of                 Statutory Basis for, the Proposed Rule
                                                  sec.gov. Please include File Number SR–
                                                                                                          a Proposed Rule Change To Amend                       Change
                                                  Phlx–2016–52 on the subject line.
                                                                                                          the Fee Schedule on the BOX Market                    1. Purpose
                                                  Paper Comments                                          LLC (‘‘BOX’’) Options Facility
                                                                                                                                                                   The Exchange proposes to amend the
                                                    • Send paper comments in triplicate
                                                                                                          April 22, 2106.                                       Fee Schedule for trading on BOX.
                                                  to Secretary, Securities and Exchange
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                             Pursuant to Section 19(b)(1) of the                Specifically, the Exchange proposes to
                                                  Commission, 100 F Street NE.,
                                                                                                          Securities Exchange Act of 1934 (the                  amend the BOX Volume Rebate (‘‘BVR’’)
                                                  Washington, DC 20549–1090.
                                                                                                          ‘‘Act’’),1 and Rule 19b–4 thereunder,2                in Section I.B.2 of the Fee Schedule.
                                                    36 See Chicago Board Options Exchange,
                                                                                                          notice is hereby given that on April 12,                 Under the current BVR, the Exchange
                                                  Incorporated’s Fees Schedule and Miami                                                                        offers a tiered per contract rebate for all
                                                                                                            38 17 CFR 200.30–3(a)(12).
                                                  International Securities Exchange LLC’s Pricing
                                                  Schedule.                                                 1 15 U.S.C. 78s(b)(1).                                3 15   U.S.C. 78s(b)(3)(A)(ii).
                                                    37 15 U.S.C. 78s(b)(3)(A)(ii).                          2 17 CFR 240.19b–4.                                   4 17   CFR 240.19b–4(f)(2).



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                                                                                           Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices                                                                         25461

                                                  PIP Orders and COPIP Orders of 100                                       calculated on a monthly basis by                                         multiply-listed options classes. The
                                                  contracts and under. PIP and COPIP                                       totaling the Participant’s PIP and COPIP                                 current per contract rebate for
                                                  executions of 100 contracts and under                                    volume submitted to BOX, relative to                                     Participants in PIP and COPIP
                                                  are awarded a per contract rebate                                        the total national Customer volume in                                    Transactions under the BVR is:

                                                                                                                                                                                                                          Per contract rebate
                                                                              Percentage thresholds of national customer volume in multiply-listed options classes                                                        (all account types)
                                                      Tier                                                         (monthly)
                                                                                                                                                                                                                          PIP            COPIP

                                                  1   ..........   0.000% to 0.159% ..................................................................................................................................     ($0.00)              ($0.00)
                                                  2   ..........   0.160% to 0.339% ..................................................................................................................................      (0.04)               (0.02)
                                                  3   ..........   0.340% to 0.99% ....................................................................................................................................     (0.11)               (0.04)
                                                  4   ..........   1.00% and Above ...................................................................................................................................      (0.14)               (0.06)



                                                     The Exchange proposes to amend the                                    Additionally, other Exchanges also                                          At any time within 60 days of the
                                                  BVR to apply the rebate to only those                                    make this distinction when providing                                     filing of the proposed rule change, the
                                                  PIP Orders and COPIP Orders of 100                                       rebates for transactions in their auction                                Commission summarily may
                                                  and under contracts that do not trade                                    mechanisms.6                                                             temporarily suspend the rule change if
                                                  solely with their contra order. The                                                                                                               it appears to the Commission that the
                                                  percentage thresholds will continue to                                   B. Self-Regulatory Organization’s                                        action is necessary or appropriate in the
                                                  be based on all PIP and COPIP volume                                     Statement on Burden on Competition                                       public interest, for the protection of
                                                  submitted to BOX, relative to the total                                     The Exchange does not believe that                                    investors, or would otherwise further
                                                  national Customer volume in multiply-                                    the proposed rule change will impose                                     the purposes of the Act. If the
                                                  listed options classes.                                                  any burden on competition not                                            Commission takes such action, the
                                                                                                                           necessary or appropriate in furtherance                                  Commission shall institute proceedings
                                                  2. Statutory Basis
                                                                                                                           of the purposes of the Act. The                                          to determine whether the proposed rule
                                                     The Exchange believes that the                                        Exchange believes the proposed fee                                       should be approved or disapproved.
                                                  proposal is consistent with the                                          changes are reasonably designed to
                                                  requirements of Section 6(b) of the Act,                                                                                                          IV. Solicitation of Comments
                                                                                                                           enhance competition in BOX
                                                  in general, and Section 6(b)(4) and                                      transactions, particularly auction                                         Interested persons are invited to
                                                  6(b)(5) of the Act,5 in particular, in that                              transactions.                                                            submit written data, views, and
                                                  it provides for the equitable allocation                                                                                                          arguments concerning the foregoing,
                                                                                                                              The proposed rule change amends the
                                                  of reasonable dues, fees, and other                                                                                                               including whether the proposed rule
                                                  charges among BOX Participants and                                       BVR to only provide a rebate when the                                    change is consistent with the Act.
                                                  other persons using its facilities and                                   PIP or COPIP Order does not trade with                                   Comments may be submitted by any of
                                                  does not unfairly discriminate between                                   its contra order. The Exchange does not                                  the following methods:
                                                  customers, issuers, brokers or dealers.                                  believe that the proposed change
                                                     The Exchange believes the proposed                                    burdens competition and will instead                                     Electronic Comments
                                                  amendments to the BVR are reasonable,                                    help promote competition by providing                                      • Use the Commission’s Internet
                                                  equitable and non-discriminatory. The                                    additional incentives for market                                         comment form (http://www.sec.gov/
                                                  BVR was adopted to attract Public                                        participants to submit customer order                                    rules/sro.shtml); or
                                                  Customer order flow to the Exchange by                                   flow to BOX and thus, create a greater                                     • Send an email to rule-comments@
                                                  offering these Participants incentives to                                opportunity for retail customers to                                      sec.gov. Please include File Number SR–
                                                  submit their PIP and COPIP Orders to                                     receive additional price improvement.                                    BOX–2016–17 on the subject line.
                                                  the Exchange. The Exchange believes it                                   C. Self-Regulatory Organization’s                                        Paper Comments
                                                  is reasonable and appropriate to                                         Statement on Comments on the
                                                  continue to provide incentives for                                                                                                                  • Send paper comments in triplicate
                                                                                                                           Proposed Rule Change Received From                                       to Secretary, Securities and Exchange
                                                  Public Customers, which will result in                                   Members, Participants, or Others
                                                  greater liquidity and ultimately benefit                                                                                                          Commission, 100 F Street NE.,
                                                  all Participants trading on the Exchange.                                  No written comments were either                                        Washington, DC 20549–1090.
                                                  The Exchange believes providing a                                        solicited or received.                                                   All submissions should refer to File
                                                  rebate to Participants that reach a                                                                                                               Number SR–BOX–2016–17. This file
                                                                                                                           III. Date of Effectiveness of the                                        number should be included on the
                                                  certain volume threshold is equitable                                    Proposed Rule Change and Timing for
                                                  and non-discriminatory as the rebate                                                                                                              subject line if email is used. To help the
                                                                                                                           Commission Action                                                        Commission process and review your
                                                  will apply to all Participants uniformly.
                                                     The Exchange believes it is                                              The foregoing rule change has become                                  comments more efficiently, please use
                                                  reasonable, equitable and non-                                           effective pursuant to Section                                            only one method. The Commission will
                                                  discriminatory to apply the BVR to PIP                                   19(b)(3)(A)(ii) of the Exchange Act 7 and                                post all comments on the Commission’s
                                                  and COPIP Orders that do not trade                                       Rule 19b–4(f)(2) thereunder,8 because it                                 Internet Web site (http://www.sec.gov/
                                                  solely with their contra order. The BVR                                  establishes or changes a due, or fee.                                    rules/sro.shtml). Copies of the
                                                  is intended to incentivize Participants to                                                                                                        submission, all subsequent
mstockstill on DSK3G9T082PROD with NOTICES




                                                  direct Customer order flow to the                                           6 See the International Securities Exchange                           amendments, all written statements
                                                  Exchange, and the Exchange believes                                      (‘‘ISE’’) Fee Schedule. Under the ISE Fee Schedule                       with respect to the proposed rule
                                                  incentives are not necessary for                                         the initiator receives a ‘‘break-up’’ rebate only for                    change that are filed with the
                                                                                                                           contracts that are submitted to their auction
                                                  internalized PIP and COPIP Orders that                                   mechanism that do not trade with their contra
                                                                                                                                                                                                    Commission, and all written
                                                  only trade against their contra order.                                   order.                                                                   communications relating to the
                                                                                                                              7 15 U.S.C. 78s(b)(3)(A)(ii).                                         proposed rule change between the
                                                      5 15   U.S.C. 78f(b)(4) and (5).                                        8 17 CFR 240.19b–4(f)(2).                                             Commission and any person, other than


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                                                  25462                             Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices

                                                  those that may be withheld from the                      solicit comments on the proposed rule                 liquidity’’ as a percentage of ‘‘added
                                                  public in accordance with the                            change from interested persons.                       plus removed liquidity’’ of at least 85%;
                                                  provisions of 5 U.S.C. 552, will be                                                                            and (3) add an ADV of at least 500,000
                                                                                                           I. Self-Regulatory Organization’s
                                                  available for Web site viewing and                                                                             share as Non-displayed 9 orders that
                                                                                                           Statement of the Terms of Substance of
                                                  printing in the Commission’s Public                                                                            yield fee code HA.10
                                                                                                           the Proposed Rule Change                                 The Exchange now proposes to amend
                                                  Reference Room, 100 F Street NE.,
                                                  Washington, DC 20549 on official                            The Exchange filed a proposal to                   the Investor Depth Tier to: (i) Decrease
                                                  business days between the hours of                       amend the fee schedule applicable to                  the Member’s added ADV threshold in
                                                  10:00 a.m. and 3:00 p.m. Copies of such                  Members 5 and non-members of the                      Non-Displayed orders from 500,000
                                                  filing also will be available for                        Exchange pursuant to EDGX Rules                       shares to 400,000 shares; and (ii) permit
                                                  inspection and copying at the principal                  15.1(a) and (c) (‘‘Fee Schedule’’) to                 a Member’s added ADV to include Non-
                                                  office of the Exchange. All comments                     amend the Investor Depth Tier under                   Displayed orders that yield fee codes HI
                                                  received will be posted without change;                  footnote 1.                                           and/or MM, in addition to fee code HA.
                                                  the Commission does not edit personal                       The text of the proposed rule change               Fee code HI is appended to Non-
                                                  identifying information from                             is available at the Exchange’s Web site               Displayed orders that receive price
                                                  submissions. You should submit only                      at www.batstrading.com, at the                        improvement and add liquidity, and fee
                                                  information that you wish to make                        principal office of the Exchange, and at              code MM is appended to Non-Displayed
                                                  available publicly. All submissions                      the Commission’s Public Reference                     orders that add liquidity using MidPoint
                                                  should refer to File Number SR–BOX–                      Room.                                                 Peg Orders.11 Lowering the Member’s
                                                  2016–17, and should be submitted on or                                                                         ADV threshold would encourage
                                                                                                           II. Self-Regulatory Organization’s
                                                  before May 19, 2016.                                                                                           Members who cannot meet the tier’s
                                                                                                           Statement of the Purpose of, and
                                                                                                                                                                 current criteria to increase their volume
                                                    For the Commission, by the Division of                 Statutory Basis for, the Proposed Rule                on the Exchange in order to achieve the
                                                  Trading and Markets, pursuant to delegated               Change                                                lower threshold. Also, permitting Non-
                                                  authority.9
                                                                                                              In its filing with the Commission, the             Displayed orders that yield fee codes HI
                                                  Brent J. Fields,                                         Exchange included statements                          and/or MM, in addition to fee code HA,
                                                  Secretary.                                               concerning the purpose of and basis for               to be included as part of the Member’s
                                                  [FR Doc. 2016–09901 Filed 4–27–16; 8:45 am]              the proposed rule change and discussed                ADV would enable Members that utilize
                                                  BILLING CODE 8011–01–P                                   any comments it received on the                       other types of Non-Displayed orders to
                                                                                                           proposed rule change. The text of these               be included as part of the Members
                                                                                                           statements may be examined at the                     added ADV for purposes to satisfying
                                                  SECURITIES AND EXCHANGE                                  places specified in Item IV below. The                the Investor Depth Tier. In addition,
                                                  COMMISSION                                               Exchange has prepared summaries, set                  lowering the ADV threshold, combined
                                                                                                           forth in Sections A, B, and C below, of               with the additional fee codes, necessary
                                                  [Release No. 34–77691; File No. SR–                      the most significant parts of such                    to achieve the tier should encourage
                                                  BatsEDGX–2016–11]                                        statements.                                           Members to add displayed liquidity, as
                                                                                                                                                                 only the displayed liquidity in this tier
                                                  Self-Regulatory Organizations; Bats                      A. Self-Regulatory Organization’s
                                                                                                                                                                 is awarded the enhanced rebate. The
                                                  EDGX Exchange, Inc.; Notice of Filing                    Statement of the Purpose of, and the
                                                                                                                                                                 remainder of the criteria required to
                                                  and Immediate Effectiveness of a                         Statutory Basis for, the Proposed Rule
                                                                                                                                                                 meet the tier as well as the rate offered
                                                  Proposed Rule Change Related to Fees                     Change
                                                                                                                                                                 by the tier would remain unchanged.
                                                                                                           1. Purpose                                               The Exchange proposes to implement
                                                  April 22, 2016.
                                                                                                              The Exchange determines the                        this amendment to its Fee Schedule
                                                     Pursuant to Section 19(b)(1) of the                   liquidity adding rebate that it will                  immediately.12
                                                  Securities Exchange Act of 1934 (the                     provide to Members using the                          2. Statutory Basis
                                                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   Exchange’s tiered pricing structure.
                                                  notice is hereby given that on April 11,                                                                          The Exchange believes that the
                                                                                                           Under such pricing structure, a Member                proposed rule change is consistent with
                                                  2016, Bats EDGX Exchange, Inc. (the                      will receive a rebate of anywhere
                                                  ‘‘Exchange’’ or ‘‘EDGX’’) filed with the                                                                       the objectives of Section 6 of the Act,13
                                                                                                           between $0.0025 and $0.0034 per share                 in general, and furthers the objectives of
                                                  Securities and Exchange Commission                       executed, depending on the volume tier
                                                  (‘‘Commission’’) the proposed rule                                                                             Section 6(b)(4),14 in particular, as it is
                                                                                                           for which such Member qualifies. In                   designed to provide for the equitable
                                                  change as described in Items I, II and III               January 2014, the Exchange adopted the
                                                  below, which Items have been prepared                                                                          allocation of reasonable dues, fees and
                                                                                                           Investor Depth Tier under footnote 1 of               other charges among its Members and
                                                  by the Exchange. The Exchange has                        the Fee Schedule.6 Members who
                                                  designated the proposed rule change as                                                                         other persons using its facilities. The
                                                                                                           qualify for the Investor Depth Tier                   Exchange also notes that it operates in
                                                  one establishing or changing a member
                                                                                                           receive a rebate of $0.0033 per share
                                                  due, fee, or other charge imposed by the
                                                                                                           where they: (i) Add an ADV 7 of at least                9 See Exchange Rule 11.6(e)(2) for the definition
                                                  Exchange under Section 19(b)(3)(A)(ii)
                                                                                                           0.15% of the TCV; 8 (ii) have an ‘‘added              of Non-Displayed.
                                                  of the Act 3 and Rule 19b–4(f)(2)                                                                                10 Fee code HA is appended to Non-displayed
                                                  thereunder,4 which renders the                              5 The term ‘‘Member’’ is defined as ‘‘any          orders that add liquidity on the Exchange. See the
                                                  proposed rule change effective upon                      registered broker or dealer that has been admitted    Exchange’s Fee Schedule available at http://
mstockstill on DSK3G9T082PROD with NOTICES




                                                  filing with the Commission. The                          to membership in the Exchange.’’ See Exchange         batstrading.com/support/fee_schedule/edgx/.
                                                  Commission is publishing this notice to                  Rule 1.5(n).                                            11 See Exchange Rule 11.8(d) for a description of
                                                                                                              6 See Securities Exchange Act Release No. 76816    MidPoint Peg orders.
                                                                                                           (January 4, 2016, 81 FR 987 (January 8, 2016) (SR–      12 The Exchange initially filed the proposed
                                                    9 17 CFR 200.30–3(a)(12).                              EDGX–2015–67).                                        change on April 1, 2016 (SR–BatsEDGX–2016–06).
                                                    1 15 U.S.C. 78s(b)(1).                                    7 As defined in the Exchange’s Fee Schedule        On April 11, 2016, the Exchange withdrew SR–
                                                    2 17 CFR 240.19b–4.                                                                                          BatsEDGX–2016–06 and submitted this filing).
                                                                                                           available at http://batstrading.com/support/fee_
                                                    3 15 U.S.C. 78s(b)(3)(A)(ii).                          schedule/edgx/.                                         13 15 U.S.C. 78f.
                                                    4 17 CFR 240.19b–4(f)(2).                                 8 Id.                                                14 15 U.S.C. 78f(b)(4).




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Document Created: 2016-04-28 01:05:17
Document Modified: 2016-04-28 01:05:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 25460 

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