81 FR 33565 - Self-Regulatory Organizations; ISE Gemini, LLC; Order Approving Proposed Rule Change Related to Market Wide Risk Protection
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 102 (May 26, 2016)
Federal Register Volume 81, Issue 102 (May 26, 2016)
| Page Range | 33565-33567 | |
| FR Document | 2016-12389 |
[Federal Register Volume 81, Number 102 (Thursday, May 26, 2016)] [Notices] [Pages 33565-33567] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12389] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77881; File No. SR-ISEGemini-2016-03] Self-Regulatory Organizations; ISE Gemini, LLC; Order Approving Proposed Rule Change Related to Market Wide Risk Protection May 20, 2016. I. Introduction On March 17, 2016, ISE Gemini, LLC (the ``Exchange'' or ``ISE Gemini'') filed with the Securities and Exchange Commission (``Commission'') pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to introduce new activity-based risk protection functionality. The proposed rule change was published for comment in the Federal Register on April 6, 2016.\3\ No comment letters were received in response to this proposal. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 77488 (Mar. 31, 2016), 81 FR 20021 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The Exchange proposed to introduce two activity-based risk protection measures that will be mandatory for all members: (1) The ``Order Entry Rate Protection,'' which prevents members from entering orders at a rate that exceeds predefined thresholds,\4\ and (2) the ``Order Execution Rate Protection,'' which prevents members from executing orders at a rate that exceeds their predefined risk settings (together, ``Market Wide Risk Protection''). The Exchange will announce the implementation date of the proposed [[Page 33566]] rule in a circular to be distributed to members prior to implementation.\5\ --------------------------------------------------------------------------- \4\ The Exchange stated that it will initiate the Order Entry Rate Protection pre-open, but in a manner that allows members time to load their orders without inadvertently triggering the protection. The Exchange further noted that it will establish and communicate the precise initiation time via circular and prior to implementation. See Notice, supra note 3, at 20022 n.4. \5\ See Notice, supra note 3, at 20022. --------------------------------------------------------------------------- Pursuant to proposed Rule 714(d), ``Market Wide Risk Protection,'' the Exchange's trading system (the ``System'') will maintain one or more counting programs on behalf of each member that will track the number of orders entered and the number of contracts traded on ISE Gemini or, if chosen by the member, across both ISE Gemini and its affiliate, International Securities Exchange, LLC (``ISE'').\6\ Members may also use multiple counting programs to separate risk protections for different groups established within the member.\7\ The counting programs will maintain separate counts, over rolling time periods specified by the member, for each count of: (1) The total number of orders entered; and (2) the total number of contracts traded.\8\ --------------------------------------------------------------------------- \6\ Members may set different risk parameters for their trading activity on each exchange, or they may set risk parameters that apply to their trading across both ISE Gemini and ISE. See proposed Rule 714(d). \7\ The Exchange stated that it will explain how members can go about setting up risk protections for different groups (e.g., business units) in a circular issued to members. See Notice, supra note 3, at 20022 n.7. \8\ See proposed Rule 714(d). The Exchange clarified that a member's allowable order rate for the Order Entry Rate Protection will be comprised of parameter (1), while the allowable contract execution rate for the Order Execution Rate Protection will be comprised of parameter (2). The Exchange further explained that contracts executed on the agency and contra-side of a two-sided crossing order will be counted separately for the Order Execution Rate Protection. See Notice, supra note 3, at 20022. --------------------------------------------------------------------------- According to the Exchange, members will have the discretion to establish the applicable time period for each of the counts maintained under the Market Wide Risk Protection, provided that the selected period is within minimum and maximum time parameters that will be established by the Exchange and announced via circular.\9\ By contrast, the Exchange's proposal does not establish minimum or maximum values for the order entry or execution parameters described in (1) and (2) above. Nevertheless, the Exchange will establish default values \10\ for the time period, order entry, and contracts traded parameters in a circular to be distributed to members. The Exchange represented that such default values will apply only to members that do not submit their own parameters for the Market Wide Risk Protection measures.\11\ --------------------------------------------------------------------------- \9\ Id. The Exchange stated that it anticipated setting these minimum and maximum time parameters at one second and a full trading day, respectively. See Notice, supra note 3, at 20022 n.9. \10\ See proposed Rule 714(d); see also Notice, supra note 3, at 20022. \11\ Id. --------------------------------------------------------------------------- Under proposed Rule 714(d), the System will trigger the Market Wide Risk Protection when it determines that the member has either (1) entered a number of orders exceeding its designated allowable order rate for the specified time period, or (2) executed a number of contracts exceeding its designated allowable contract execution rate for the specified time period.\12\ If the member's thresholds have been exceeded, the Market Wide Risk Protection will be triggered and the System will automatically reject all subsequent incoming orders entered by the member on ISE Gemini or, if set by the member, across both ISE Gemini and ISE.\13\ In addition, if the member has opted in to this functionality, the System will automatically cancel all of the member's existing orders.\14\ The Market Wide Risk Protection will remain engaged until the member manually (e.g., via email) notifies the Exchange to enable the acceptance of new orders.\15\ --------------------------------------------------------------------------- \12\ Id.; see also proposed Rule 714(d)(1). Specifically, after a member enters or executes an order, the System will look back over the specified time period to determine whether the member has exceeded the relevant thresholds. See Notice, supra note 3, at 20022. In the Notice, the Exchange provided examples illustrating how the Market Wide Risk Protection functionality would work both for order entry and order execution protections. See Notice, supra note 3, at 20022-23. \13\ According to the Exchange, members that set different risk parameters for ISE Gemini and ISE will only have their orders rejected on the exchange whose threshold was exceeded. See Notice, supra note 3, at 20022 n.10. \14\ Proposed Rule 714(d)(2). \15\ Proposed Rule 714(d)(3). Members who have not opted to cancel all existing orders under proposed Rule 714(d)(2), however, will still be able to interact with their existing orders entered before the Market Wide Risk Protection was triggered. For instance, such members may send cancel order messages and/or receive trade executions for those orders. Id.; see also Notice, supra note 3, at 20022. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of Section 6 of the Act \16\ and rules and regulations thereunder applicable to a national securities exchange.\17\ In particular, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, to protect investors and the public interest.\18\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ In approving these proposed rule changes, the Commission has considered the proposed rules' impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission believes that the Exchange's proposed activity-based order protections will provide an additional tool to members to assist them in managing their risk exposure.\19\ Specifically, the Commission believes that the Market Wide Risk Protection functionality may help members to mitigate the potential risks associated with entering and/or executing a level of orders that exceeds their risk management thresholds that may result from, for example, technology issues with electronic trading systems. Further, the Commission notes that other exchanges have established risk protection mechanisms for members and market makers that are similar in many respects to ISE Gemini's proposal.\20\ --------------------------------------------------------------------------- \19\ The Exchange currently provides members with limit order price protections that reject orders priced too far outside of the Exchange's best bid or offer. See ISE Gemini Rule 714(b)(2). \20\ See, e.g., Miami International Securities Exchange, LLC Rule 519A (``Risk Protection Monitor''); BATS BZX Exchange, Inc. Rule 21.16 (``Risk Monitor Mechanism''). --------------------------------------------------------------------------- Proposed Rule 714(d) imposes a mandatory obligation on ISE Gemini members to utilize the Market Wide Risk Protection functionality. The Commission notes that, although the Exchange will establish minimum and maximum permissible parameters for the time period values, members will have discretion to set the threshold values for the order entry and order execution parameters.\21\ If members do not independently set such parameters, they will be subject to the default parameters established by ISE Gemini.\22\ While the Commission believes that the Exchange's proposed rule provides members flexibility to tailor the Market Wide Risk Protection to their respective risk management needs, the Commission reminds members to be mindful of their obligations to, among other things, seek best execution of orders they handle on an agency basis and consider their best execution obligations when establishing parameters for the Market Wide Risk Protection or utilizing the default [[Page 33567]] parameters set by ISE.\23\ For example, an abnormally low order entry parameter, set over an abnormally long specified time period should be carefully scrutinized, particularly if a member's order flow to ISE Gemini contains agency orders. To the extent that a member chooses sensitive parameters, a member should consider the effect of its chosen settings on its ability to receive a timely execution on marketable agency orders that it sends to ISE Gemini in various market conditions. The Commission cautions brokers considering their best execution obligations to be aware that the agency orders they represent may be rejected as a result of the Market Wide Risk Protection functionality. --------------------------------------------------------------------------- \21\ The Exchange has represented that it anticipates that the minimum and maximum values for the applicable time period will be initially set at one second and a full trading day, respectively, which the Commission believes gives members wide latitude in establishing the applicable time periods. See Notice, supra note 3, at 20022 n.9. \22\ Proposed Rule 714(d). \23\ See Securities Exchange Act Release No. 37619A (Sept. 6, 1996), 61 FR 48290, at 48323 (Sept. 12, 1996) (Order Execution Obligations adopting release); see also Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37537-8 (June 29, 2005) (Regulation NMS adopting release). --------------------------------------------------------------------------- As discussed above, ISE Gemini determined not to establish minimum and maximum permissible settings for the order entry and order execution parameters in its rule and indicated its intent to set a minimum and maximum for the time period parameters that provide broad discretion to members (i.e., one second and a full trading day, respectively).\24\ In light of these broad limits, the Commission expects ISE Gemini to periodically assess whether the Market Wide Risk Protection measures are operating in a manner that is consistent with the promotion of fair and orderly markets, including whether the default values and minimum and maximum permissible parameters for the applicable time period established by ISE Gemini continue to be appropriate and operate in a manner consistent with the Act and the rules thereunder. --------------------------------------------------------------------------- \24\ See Notice, supra note 3, at 20022 n.9; see also supra note 21. --------------------------------------------------------------------------- Finally, the Commission believes that it is consistent with the Act for ISE Gemini to offer its Market Wide Risk Protection across both ISE Gemini and its affiliate, ISE, as such functionality could assist members in managing and reducing inadvertent exposure to excessive risk across both of these markets if the member desires to avail itself of that feature. Further, the Commission notes that it previously approved ISE Gemini's proposal to offer cross-market risk protections for market maker quotes, and approval of the cross-market application of the Market Wide Risk Protection functionality is consistent with that prior approval.\25\ --------------------------------------------------------------------------- \25\ See ISE Gemini Rule 804(g); see also Securities Exchange Act Release No. 73148 (Sept. 19, 2014), 79 FR 57626 (Sept. 25, 2014) (SR-ISEGemini-2014-09) (approval order). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\26\ that the proposed rule change (SR-ISEGemini-2016-03) be, and hereby is, approved. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78s(b)(2). \27\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\27\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-12389 Filed 5-25-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices 33565
executed according to price, with the permit unfair discrimination between proposed rule change (SR–NYSE–2016–
highest bid price and the lowest offer customers, issuers, brokers, or dealers. 17), as modified by Amendment No. 1,
price receiving highest priority and, The Commission notes that the be, and hereby is, approved.
within each price, according to the time Exchange believes that the proposed For the Commission, by the Division of
of order entry. For Timed Orders, rule change would protect investors and Trading and Markets, pursuant to delegated
priority within each price is determined remove impediments to, and perfect the authority.28
based on the effective time of the order, mechanisms of, a free and open market Robert W. Errett,
as provided in proposed Rule and a national market system by offering Deputy Secretary.
86(b)(2)(B)(vi)(3)(a)–(c). Timed Orders its Users additional order types and [FR Doc. 2016–12388 Filed 5–25–16; 8:45 am]
submitted with an Effective Time therefore affording them greater
BILLING CODE 8011–01–P
become effective at the time designated opportunities to execute their bond
on the order (i.e., at the Effective Time), orders on the Exchange.23 The Exchange
whereas Timed Orders submitted with further states that its proposal to adopt SECURITIES AND EXCHANGE
an Expire Time become effective at the new order types on NYSE Bonds, COMMISSION
time such order is submitted. including All-or-None, Fill-or-Kill, and
Minimum Quantity orders, is consistent [Release No. 34–77881; File No. SR–
Additionally, Timed Orders submitted ISEGemini–2016–03]
with a designated trading session alone with order types available on other
or with a designated trading session and ATSs and exchanges.24 The
Self-Regulatory Organizations; ISE
either an Effective Time or an Expire Commission notes that, according to the
Gemini, LLC; Order Approving
Time become effective at the time the Exchange, the proposal to codify Good
Proposed Rule Change Related to
‘Til Date Orders and Timed Orders does
designated trading session begins, Market Wide Risk Protection
not add any new functionality but
whereas Timed Orders submitted during
instead provides additional clarity and May 20, 2016.
a designated trading session become
transparency regarding current
effective at the time such order is I. Introduction
functionality offered by the Exchange.25
received. The Exchange proposes to Finally, the Commission notes that the On March 17, 2016, ISE Gemini, LLC
reflect these differences with an Exchange’s proposal relating to the (the ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed
amendment to Rule 86(j)(A)(ii).20 calculation of the IMP is intended to with the Securities and Exchange
Finally, the Exchange proposes to provide additional detail, clarity, and Commission (‘‘Commission’’) pursuant
make non-substantive organizational transparency to the rule.26 to Section 19(b)(1) of the Securities
changes to the rule text in order to make The Commission believes that the Exchange Act of 1934 (‘‘Act’’) 1 and Rule
the rule easier to read and understand. proposed rules to adopt new order types 19b–4 thereunder,2 a proposed rule
Specifically, the Exchange is proposing on NYSE Bonds would provide Users change to introduce new activity-based
to renumber each of paragraphs (C), (D), with additional options for trading in risk protection functionality. The
and (E) to (B)(ii), (B)(iii), and (B)(iv) and fixed income securities on the proposed rule change was published for
to renumber each of paragraphs (F) Exchange. Based on the Exchange’s comment in the Federal Register on
through (O) to (C) through (K). representations, the Commission April 6, 2016.3 No comment letters were
believes that the proposed rules received in response to this proposal.
III. Discussion and Commission regarding Good ‘Til Date and Timed This order approves the proposed rule
Findings Orders do not raise any novel regulatory change.
After careful review, the Commission considerations and should provide
II. Description of the Proposed Rule
finds that the proposed rule change is greater specificity, clarity, and
Change
consistent with the requirements of the transparency with respect to the
functionality available on the Exchange. The Exchange proposed to introduce
Act and the rules and regulations two activity-based risk protection
thereunder applicable to a national The Commission similarly believes that
the proposal relating to the IMP measures that will be mandatory for all
securities exchange.21 In particular, the members: (1) The ‘‘Order Entry Rate
calculation and the organizational
Commission finds that the proposed Protection,’’ which prevents members
changes to the rule text should provide
rule change is consistent with Section from entering orders at a rate that
additional clarity and transparency to
6(b)(5) of the Act,22 which requires, exceeds predefined thresholds,4 and (2)
the Exchange’s rules. For these reasons,
among other things, that the rules of a the ‘‘Order Execution Rate Protection,’’
the Commission believes that the
national securities exchange be which prevents members from
proposed rule change is consistent with
designed to prevent fraudulent and executing orders at a rate that exceeds
the Act.
manipulative acts and practices, to their predefined risk settings (together,
promote just and equitable principles of IV. Conclusion ‘‘Market Wide Risk Protection’’). The
trade, to foster cooperation and It is therefore ordered, pursuant to Exchange will announce the
coordination with persons engaged in Section 19(b)(2) of the Act,27 that the implementation date of the proposed
facilitating transactions in securities, to
remove impediments to and perfect the 23 See Notice, supra note 4, at 19677. 28 17 CFR 200.30–3(a)(12).
mechanism of a free and open market 24 See id. at 19672 & n.13, 19677. The Exchange 1 15 U.S.C. 78s(b)(1).
and a national market system, and, in states that, because fixed income securities are not 2 17 CFR 240.19b–4.
general, to protect investors and the subject to Regulation NMS, it proposes to display 3 See Securities Exchange Act Release No. 77488
sradovich on DSK3TPTVN1PROD with NOTICES
the All-or-None and Minimum Quantity and permit (Mar. 31, 2016), 81 FR 20021 (‘‘Notice’’).
public interest; and are not designed to executions that bypass an All-or-None order or 4 The Exchange stated that it will initiate the
Minimum Quantity order if the terms of such orders Order Entry Rate Protection pre-open, but in a
20 See id. cannot be met, unlike similar All-or-None and manner that allows members time to load their
21 Inapproving this proposed rule change, the Minimum Quantity order types on equity orders without inadvertently triggering the
Commission has considered the proposed rule’s exchanges. See id. at 19677. protection. The Exchange further noted that it will
25 See Notice, supra note 4, at 19677.
impact on efficiency, competition, and capital establish and communicate the precise initiation
formation. See 15 U.S.C. 78c(f). 26 See id. at 19672, 77.
time via circular and prior to implementation. See
22 15 U.S.C. 78f(b)(5). 27 15 U.S.C. 78s(b)(2). Notice, supra note 3, at 20022 n.4.
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![Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices 33567
parameters set by ISE.23 For example, an IV. Conclusion Exchange filed Amendment No. 1 to the
abnormally low order entry parameter, It is therefore ordered, pursuant to proposed rule change,6 which replaced
set over an abnormally long specified Section 19(b)(2) of the Act,26 that the the originally filed proposed rule
time period should be carefully proposed rule change (SR–ISEGemini– change in its entirety.7 On February 11,
scrutinized, particularly if a member’s 2016–03) be, and hereby is, approved. 2016, the Exchange both filed and
order flow to ISE Gemini contains withdrew Amendment No. 2 to the
agency orders. To the extent that a For the Commission, by the Division of
Trading and Markets, pursuant to delegated proposed rule change. On February 11,
member chooses sensitive parameters, a authority.27 2016, the Exchange filed Amendment
member should consider the effect of its No. 3 to the proposed rule change.8 On
Robert W. Errett,
chosen settings on its ability to receive
Deputy Secretary. February 17, 2016, the Exchange filed
a timely execution on marketable
[FR Doc. 2016–12389 Filed 5–25–16; 8:45 am] Amendment No. 4 to the proposed rule
agency orders that it sends to ISE
Gemini in various market conditions. BILLING CODE 8011–01–P change.9 On February 22, 2016, the
The Commission cautions brokers Commission issued notice of filing of
considering their best execution Amendment Nos. 1, 3, and 4 to the
obligations to be aware that the agency SECURITIES AND EXCHANGE proposed rule change and instituted
orders they represent may be rejected as COMMISSION proceedings under Section 19(b)(2)(B) of
a result of the Market Wide Risk [Release No. 34–77871; File No. SR–BATS–
Protection functionality. 2015–100] or institute proceedings to determine whether to
As discussed above, ISE Gemini disapprove, the proposed rule change. See id.
determined not to establish minimum Self-Regulatory Organizations; BATS 6 Amendment No. 1: (1) Clarifies the proposed
and maximum permissible settings for Exchange, Inc.; Notice of Designation treatment of convertible securities under the
of a Longer Period for Commission proposed generic listing criteria; (2) modifies the
the order entry and order execution proposed criterion regarding American Depositary
parameters in its rule and indicated its Action on Proceedings To Determine Receipts (‘‘ADRs’’) to provide that no more than
intent to set a minimum and maximum Whether To Approve or Disapprove a 10% of the equity weight of the portfolio shall
for the time period parameters that Proposed Rule Change, as Modified by consist of non-exchange traded (rather than
Amendments Nos. 1, 3, and 4 Thereto, unsponsored) ADRs; (3) modifies the proposed
provide broad discretion to members portfolio limit on listed derivatives to require that
(i.e., one second and a full trading day, To Amend BATS Rule 14.11(i) To at least 90% of the weight of such holdings invested
respectively).24 In light of these broad Adopt Generic Listing Standards for in futures, exchange-traded options, and listed
limits, the Commission expects ISE Managed Fund Shares swaps shall, on both an initial and continuing basis,
Gemini to periodically assess whether consist of futures, options, and swaps for which the
May 20, 2016. Exchange may obtain information via the
the Market Wide Risk Protection Intermarket Surveillance Group (‘‘ISG’’) from other
On November 18, 2015, BATS
measures are operating in a manner that members or affiliates of the ISG or for which the
Exchange, Inc. (now known as Bats BZX
is consistent with the promotion of fair principal market is a market with which the
Exchange, Inc., ‘‘Exchange’’) 1 filed with Exchange has a comprehensive surveillance sharing
and orderly markets, including whether
the Securities and Exchange agreement (‘‘CSSA’’); (4) provides that a portfolio’s
the default values and minimum and
Commission (‘‘Commission’’), pursuant investments in listed and over-the-counter
maximum permissible parameters for derivatives will be calculated for purposes the
to Section 19(b)(1) of the Securities
the applicable time period established proposed limits on such holdings as the total
Exchange Act of 1934 (‘‘Act’’) 2 and Rule absolute notional value of the derivatives; (5) makes
by ISE Gemini continue to be
19b–4 thereunder,3 a proposed rule certain other conforming and clarifying changes.
appropriate and operate in a manner
change to amend BATS Rule 14.11(i) by, The amendments to the proposed rule change are
consistent with the Act and the rules available at: http://www.sec.gov/comments/sr-bats-
among other things, adopting generic
thereunder. 2015-100/bats2015100.shtml.
Finally, the Commission believes that listing standards for Managed Fund 7 See Amendment No. 1, supra note 6, at 4.
it is consistent with the Act for ISE Shares. The proposed rule change was 8 Amendment No. 3 deletes from the proposal the
Gemini to offer its Market Wide Risk published for comment in the Federal following two sentences: (1) ‘‘Such limitation will
Protection across both ISE Gemini and Register on November 25, 2015.4 On not apply to listed swaps because swaps are listed
January 4, 2016, the Commission on swap execution facilities (‘‘SEFs’’), the majority
its affiliate, ISE, as such functionality of which are not members of ISG.’’ and (2) ‘‘Such
could assist members in managing and designated a longer period within which limitation would not apply to listed swaps because
reducing inadvertent exposure to to approve the proposed rule change, swaps are listed on SEFs, the majority of which are
excessive risk across both of these disapprove the proposed rule change, or not members of ISG.’’ Amendment No. 3 also
institute proceedings to determine corrects an erroneous statement in Item 11 to
markets if the member desires to avail indicate that an Exhibit 4 was included in
itself of that feature. Further, the whether to disapprove the proposed Amendment No. 1.
Commission notes that it previously rule change.5 On February 9, 2016, the 9 Amendment No. 4 deletes from the proposal the
approved ISE Gemini’s proposal to offer following sentence: ‘‘Thus, if the limitation applied
79 FR 57626 (Sept. 25, 2014) (SR–ISEGemini-2014– to swaps, there would effectively be a cap of 10%
cross-market risk protections for market 09) (approval order). of the portfolio invested in listed swaps.’’
maker quotes, and approval of the cross- 26 15 U.S.C. 78s(b)(2). Amendment No. 4 also amends two representations
market application of the Market Wide 27 17 CFR 200.30–3(a)(12). as follows (added language in brackets): The
Risk Protection functionality is 1 In March 2016, BATS changed its name from Exchange or FINRA, on behalf of the Exchange, will
communicate as needed regarding trading in
consistent with that prior approval.25 ‘‘BATS Exchange, Inc.’’ to ‘‘Bats BZX Exchange,
Managed Fund Shares [and their underlying
Inc.’’ See Securities Act Release No. 77307 (Mar. 7,
components] with other markets that are members
23 See Securities Exchange Act Release No. 2016), 81 FR 12996 (Mar. 11, 2016) (SR–BATS–
of the ISG, including all U.S. securities exchanges
2016–25) (publishing notice of the name change to
37619A (Sept. 6, 1996), 61 FR 48290, at 48323 and futures exchanges on which the components
sradovich on DSK3TPTVN1PROD with NOTICES
Bats BZX Exchange, Inc.).
(Sept. 12, 1996) (Order Execution Obligations are traded[, or with which the Exchange has in
2 15 U.S.C. 78s(b)(1).
adopting release); see also Securities Exchange Act place a CSSA.] In addition, the Exchange or
3 17 CFR 240.19b–4.
Release No. 51808 (June 9, 2005), 70 FR 37496, FINRA[,] on behalf of the Exchange[,] may obtain
37537–8 (June 29, 2005) (Regulation NMS adopting 4 See Securities Exchange Act Release No. 76478
information regarding trading in Managed Fund
release). (Nov. 19, 2015), 80 FR 73841 (‘‘Notice’’). Shares [and their underlying components] from
24 See Notice, supra note 3, at 20022 n.9; see also 5 See Securities Exchange Act Release No. 76820, other markets that are members of the ISG,
supra note 21. 81 FR 989 (Jan. 8, 2016). The Commission including all U.S. securities exchanges and futures
25 See ISE Gemini Rule 804(g); see also Securities designated February 23, 2016 as the date by which exchanges on which the components are traded, or
Exchange Act Release No. 73148 (Sept. 19, 2014), the Commission shall either approve or disapprove, with which the Exchange has in place a CSSA.’’
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Document Created: 2016-05-26 01:13:33
Document Modified: 2016-05-26 01:13:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 33565 |
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