81 FR 33718 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees as They Apply to the Equity Options Platform
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 103 (May 27, 2016)
Federal Register Volume 81, Issue 103 (May 27, 2016)
| Page Range | 33718-33720 | |
| FR Document | 2016-12511 |
[Federal Register Volume 81, Number 103 (Friday, May 27, 2016)] [Notices] [Pages 33718-33720] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12511] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77884; File No. SR-BatsBZX-2016-17] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees as They Apply to the Equity Options Platform May 23, 2016. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 16, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the fee schedule applicable to Members \3\ and non-members of the Exchange pursuant to BZX Rules 15.1(a) and (c). Changes to the fee schedule pursuant to this proposal are effective upon filing. --------------------------------------------------------------------------- \3\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. 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 parts of such statements. [[Page 33719]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to modify the fee schedule applicable to the Exchange's options platform (``BZX Options'') effective immediately, in order to: (i) Modify the fees for logical ports; and (ii) to no longer provide for separate fees based upon the number of logical ports utilized. A logical port represents a port established by the Exchange within the Exchange's system for trading and billing purposes. Each logical port established is specific to a Member or non-member and grants that Member or non-member the ability to operate a specific application, such as FIX order entry or PITCH data receipt. The Exchange's Multicast PITCH data feed is available from two primary feeds, identified as the ``A feed'' and the ``C feed'', which contain the same information but differ only in the way such feeds are received. The Exchange also offers two redundant fees, identified as the ``B feed'' and the ``D feed.'' The Exchange also offers a bulk-quoting interface which allows Users \4\ of BZX Options to submit and update multiple bids and offers in one message through logical ports enabled for bulk-quoting.\5\ The bulk-quoting application for BZX Options is a particularly useful feature for Users that provide quotations in many different options. --------------------------------------------------------------------------- \4\ A User on BZX Options is either a member of BZX Options or a sponsored participant who is authorized to obtain access to the Exchange's system pursuant to BZX Rule 11.3. \5\ See Securities Exchange Act Release Nos. 65133 (August 15, 2011), 76 FR 52032 (August 19, 2011) (SR-BATS-2011-029) and 65307 (September 9, 2011), 76 FR 57092 (September 15, 2011) (SR-BATS-2011- 034). --------------------------------------------------------------------------- The Exchange currently charges for logical ports (including Multicast PITCH Spin Server and GRP ports) $550 per port per month for the first five ports. Where a User subscribes to more than five ports, the Exchange charges for each port in excess of five $650 per logical port per month and $2,000 per month for logical ports with bulk quoting capabilities. Logical port fees are limited to logical ports in the Exchange's primary data center and no logical port fees are assessed for redundant secondary data center ports. The Exchange assesses the monthly per logical port fees for all of a Member and non-Member's logical ports. The Exchange now proposes to amend the fee for logical ports, Multicast PITCH Spin Server Ports for a set of primary ports (A or C feed), and GRP Ports for a set of primary ports (A or C feed) to $650 per month. These fees would now be set and not vary based on the number of ports purchased. The Exchange will continue to offer for free the ports necessary to receive the Exchange's redundant Multicast ``B feed'' and ``D feed'', as well as all ports made available in the Exchange's secondary data center. The Exchange does not propose to amend the monthly fee for ports with bulk quoting capabilities, other than reorganizing the fee table to reflect the above changes. Implementation Date The Exchange proposes to implement these amendments to its fee schedule on June 1, 2016. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of section 6 of the Act.\6\ Specifically, the Exchange believes that the proposed rule change is consistent with section 6(b)(4) of the Act,\7\ in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and other persons using any facility or system which the Exchange operates or controls. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f. \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange operates in a highly competitive market in which exchanges offer connectivity services as a means to facilitate the trading activities of members and other participants. Accordingly, fees charged for connectivity are constrained by the active competition for the order flow of such participants as well as demand for market data from the Exchange. If a particular exchange charges excessive fees for connectivity, affected members will opt to terminate their connectivity arrangements with that exchange, and adopt a possible range of alternative strategies, including routing to the applicable exchange through another participant or market center or taking that exchange's data indirectly. Accordingly, the exchange charging excessive fees would stand to lose not only connectivity revenues but also revenues associated with the execution of orders routed to it by affected members, and, to the extent applicable, market data revenues. The Exchange believes that this competitive dynamic imposes powerful restraints on the ability of any exchange to charge unreasonable fees for connectivity. The Exchange believes that the proposed fees for logical ports are equitably allocated, reasonable, and not unfairly discriminatory in that the proposed fees will help the Exchange to cover increasing infrastructure costs associated with offering and maintaining logical ports connections. The Exchange also notes its proposed fees equal that currently charged by the NASDAQ Stock Market LLC (``NASDAQ'').\8\ --------------------------------------------------------------------------- \8\ See NASDAQ Options Pricing, chapter XV, section 3(b) (charging a monthly fee of $650 order entry ports). --------------------------------------------------------------------------- Lastly, the Exchange also believes that the proposed amendments to its fee schedule are non-discriminatory because they will apply uniformly to all Members. All Members that voluntarily select various service options will be charged the same amount for the same services. All Members have the option to select any connectivity option, and there is no differentiation among Members with regard to the fees charged for the services offered by the Exchange. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes its proposed amendments to its fee schedule would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed change represents a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that fees for connectivity are constrained by the robust competition for order flow among exchanges and non-exchange markets. Further, excessive fees for connectivity, including logical port fees, would serve to impair an exchange's ability to compete for order flow rather than burdening competition. The Exchange also does not believe the proposed rule change would impact intramarket competition as it would apply to all Members and non-Members equally. [[Page 33720]] C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. 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) of the Act \9\ and paragraph (f) of Rule 19b-4 thereunder.\10\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse 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-BatsBZX-2016-17 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BatsBZX-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 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-BatsBZX-2016-17, and should be submitted on or before June 17, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-12511 Filed 5-26-16; 8:45 am] BILLING CODE 8011-01-P
![33718 Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
the most actively-traded issues because Paper Comments SECURITIES AND EXCHANGE
LMMs that achieve the discounts would COMMISSION
have reduced overhead. • Send paper comments in triplicate
The Exchange notes that it operates in to Secretary, Securities and Exchange
[Release No. 34–77884; File No. SR–
a highly competitive market in which Commission, 100 F Street NE., BatsBZX–2016–17]
market participants can readily favor Washington, DC 20549–1090.
competing venues. In such an Self-Regulatory Organizations; Bats
All submissions should refer to File
environment, the Exchange must BZX Exchange, Inc.; Notice of Filing
continually review, and consider Number SR–NYSEArca–2016–75. This
file number should be included on the and Immediate Effectiveness of a
adjusting, its fees and credits to remain Proposed Rule Change Related to Fees
competitive with other exchanges. For subject line if email is used. To help the
as They Apply to the Equity Options
the reasons described above, the Commission process and review your
Platform
Exchange believes that the proposed comments more efficiently, please use
rule change reflects this competitive only one method. The Commission will May 23, 2016.
environment. post all comments on the Commission’s Pursuant to section 19(b)(1) of the
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934
C. Self-Regulatory Organization’s
rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
Statement on Comments on the
submission, all subsequent notice is hereby given that on May 16,
Proposed Rule Change Received From
Members, Participants, or Others amendments, all written statements 2016, Bats BZX Exchange, Inc. (the
with respect to the proposed rule ‘‘Exchange’’ or ‘‘BZX’’) filed with the
No written comments were solicited change that are filed with the Securities and Exchange Commission
or received with respect to the proposed Commission, and all written (‘‘Commission’’) the proposed rule
rule change. communications relating to the change as described in Items I, II, and
III. Date of Effectiveness of the proposed rule change between the III below, which Items have been
Proposed Rule Change and Timing for Commission and any person, other than prepared by the Exchange. The
Commission Action those that may be withheld from the Commission is publishing this notice to
public in accordance with the solicit comments on the proposed rule
The foregoing rule change is effective
provisions of 5 U.S.C. 552, will be change from interested persons.
upon filing pursuant to section
19(b)(3)(A) 10 of the Act and available for Web site viewing and I. Self-Regulatory Organization’s
subparagraph (f)(2) of Rule 19b–4 11 printing in the Commission’s Public Statement of the Terms of Substance of
thereunder, because it establishes a due, Reference Room, 100 F Street NE., the Proposed Rule Change
fee, or other charge imposed by the Washington, DC 20549, on official
Exchange. The Exchange filed a proposal to
business days between the hours of amend the fee schedule applicable to
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
filing of such proposed rule change, the Members 3 and non-members of the
filing also will be available for Exchange pursuant to BZX Rules 15.1(a)
Commission summarily may inspection and copying at the principal
temporarily suspend such rule change if and (c). Changes to the fee schedule
office of the Exchange. All comments pursuant to this proposal are effective
it appears to the Commission that such received will be posted without change;
action is necessary or appropriate in the upon filing.
the Commission does not edit personal The text of the proposed rule change
public interest, for the protection of
identifying information from is available at the Exchange’s Web site
investors, or otherwise in furtherance of
the purposes of the Act. If the submissions. You should submit only at www.batstrading.com, at the
Commission takes such action, the information that you wish to make principal office of the Exchange, and at
Commission shall institute proceedings available publicly. All submissions the Commission’s Public Reference
under section 19(b)(2)(B) 12 of the Act to should refer to File Number SR– Room.
determine whether the proposed rule NYSEArca–2016–75 and should be
II. Self-Regulatory Organization’s
change should be approved or submitted on or before June 17, 2016.
Statement of the Purpose of, and
disapproved. For the Commission, by the Division of Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Trading and Markets, pursuant to delegated Change
authority.13
Interested persons are invited to In its filing with the Commission, the
Robert W. Errett,
submit written data, views and Exchange included statements
arguments concerning the foregoing, Deputy Secretary. concerning the purpose of and basis for
including whether the proposed rule [FR Doc. 2016–12512 Filed 5–26–16; 8:45 am] the proposed rule change and discussed
change is consistent with the Act. BILLING CODE 8011–01–P any comments it received on the
Comments may be submitted by any of proposed rule change. The text of these
the following methods: statements may be examined at the
Electronic Comments places specified in Item IV below. The
Exchange has prepared summaries, set
• Use the Commission’s Internet forth in sections A, B, and C below, of
comment form (http://www.sec.gov/ the most significant parts of such
sradovich on DSK3TPTVN1PROD with NOTICES
rules/sro.shtml); or statements.
• Send an email to rule-comments@
sec.gov. Please include File Number SR– 1 15 U.S.C. 78s(b)(1).
NYSEArca–2016–75 on the subject line. 2 17 CFR 240.19b–4.
3 The term ‘‘Member’’ is defined as ‘‘any
10 15 U.S.C. 78s(b)(3)(A). registered broker or dealer that has been admitted
11 17 CFR 240.19b–4(f)(2). to membership in the Exchange.’’ See Exchange
12 15 U.S.C. 78s(b)(2)(B). 13 17 CFR 200.30–3(a)(12). Rule 1.5(n).
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![33720 Federal Register / Vol. 81, No. 103 / Friday, May 27, 2016 / Notices
C. Self-Regulatory Organization’s Commission and any person, other than I. Self-Regulatory Organization’s
Statement on Comments on the those that may be withheld from the Statement of the Terms of Substance of
Proposed Rule Change Received From public in accordance with the the Proposed Rule Change
Members, Participants, or Others provisions of 5 U.S.C. 552, will be The Exchange proposes to amend the
The Exchange has not solicited, and available for Web site viewing and Exchange’s Schedule of Fees and
does not intend to solicit, comments on printing in the Commission’s Public Charges (‘‘Fee Schedule’’) to eliminate
this proposed rule change. The Reference Room, 100 F Street NE., the Listing Fee in connection with
Exchange has not received any written Washington, DC 20549 on official Exchange listing of certain Exchange
comments from members or other business days between the hours of Traded Products, effective May 10,
interested parties. 10:00 a.m. and 3:00 p.m. Copies of such 2016. The proposed rule change is
filing also will be available for available on the Exchange’s Web site at
III. Date of Effectiveness of the
inspection and copying at the principal www.nyse.com, at the principal office of
Proposed Rule Change and Timing for
office of the Exchange. All comments the Exchange, and at the Commission’s
Commission Action
received will be posted without change; Public Reference Room.
The foregoing rule change has become the Commission does not edit personal
effective pursuant to section 19(b)(3)(A) II. Self-Regulatory Organization’s
identifying information from Statement of the Purpose of, and
of the Act 9 and paragraph (f) of Rule
submissions. You should submit only Statutory Basis for, the Proposed Rule
19b–4 thereunder.10 At any time within
60 days of the filing of the proposed rule information that you wish to make Change
change, the Commission summarily may available publicly. All submissions
In its filing with the Commission, the
temporarily suspend such rule change if should refer to File Number SR– self-regulatory organization included
it appears to the Commission that such BatsBZX–2016–17, and should be statements concerning the purpose of,
action is necessary or appropriate in the submitted on or before June 17, 2016. and basis for, the proposed rule change
public interest, for the protection of For the Commission, by the Division of and discussed any comments it received
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated on the proposed rule change. The text
the purposes of the Act. authority.11 of those statements may be examined at
IV. Solicitation of Comments Robert W. Errett, the places specified in Item IV below.
Deputy Secretary. The Exchange has prepared summaries,
Interested persons are invited to set forth in sections A, B, and C below,
submit written data, views, and [FR Doc. 2016–12511 Filed 5–26–16; 8:45 am]
of the most significant parts of such
arguments concerning the foregoing, BILLING CODE 8011–01–P
statements.
including whether the proposed rule
change is consistent with the Act. A. Self-Regulatory Organization’s
Comments may be submitted by any of SECURITIES AND EXCHANGE Statement of the Purpose of, and the
the following methods: COMMISSION Statutory Basis for, the Proposed Rule
Change
Electronic Comments
[Release No. 34–77883; File No. SR– 1. Purpose
• Use the Commission’s Internet NYSEArca–2016–69]
comment form (http://www.sec.gov/ Currently, the Exchange’s Schedule of
rules/sro.shtml); or Self-Regulatory Organizations; NYSE Fees and Charges (‘‘Schedule’’) provides
• Send an email to rule-comments@ Arca, Inc.; Notice of Filing and that an issuer of a new Exchange Traded
sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed Product 4 (with the exception of
BatsBZX–2016–17 on the subject line. Managed Fund Shares and Managed
Rule Change Amending the
Trust Securities) shall pay a ‘‘Listing
Paper Comments Exchange’s Schedule of Fees and
Fee’’ of $7,500 and an issuer of Managed
• Send paper comments in triplicate Charges To Eliminate the Listing Fee
Fund Shares and Managed Trust
to Brent J. Fields, Secretary, Securities in Connection With Exchange Listing
Securities shall pay a Listing Fee of
and Exchange Commission, 100 F Street of Certain Exchange Traded Products $10,000.
NE., Washington, DC 20549–1090. May 23, 2016. The Exchange proposes to amend the
All submissions should refer to File Fee Schedule to eliminate the Listing
Number SR–BatsBZX–2016–17. This file Pursuant to section 19(b)(1) 1 of the Fee in connection with Exchange listing
number should be included on the Securities Exchange Act of 1934 (the of certain Exchange Traded Products
subject line if email is used. To help the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 (‘‘ETPs’’) effective May 10, 2016, as
Commission process and review your notice is hereby given that, on May 10, described below. Exchange rules
comments more efficiently, please use 2016, NYSE Arca, Inc. (the ‘‘Exchange’’ applicable to listing of certain ETPs
only one method. The Commission will or ‘‘NYSE Arca’’) filed with the provide for listing such products
post all comments on the Commission’s Securities and Exchange Commission pursuant to Rule 19b–4(e) under the Act
Internet Web site (http://www.sec.gov/ (the ‘‘Commission’’) the proposed rule if they satisfy all criteria—referred to as
rules/sro.shtml). Copies of the change as described in Items I and II ‘‘generic’’ listing criteria—in the
submission, all subsequent below, which Items have been prepared
amendments, all written statements by the self-regulatory organization. The 4 For the purposes of the Schedule, the term
Commission is publishing this notice to ‘‘Exchange Traded Products’’ includes securities
sradovich on DSK3TPTVN1PROD with NOTICES
with respect to the proposed rule described in NYSE Arca Equities Rules 5.2(j)(3)
change that are filed with the solicit comments on the proposed rule (Investment Company Units); 8.100 (Portfolio
Commission, and all written change from interested persons. Depositary Receipts); 8.200 (Trust Issued Receipts);
communications relating to the 8.201 (Commodity-Based Trust Shares); 8.202
(Currency Trust Shares); 8.203 (Commodity Index
proposed rule change between the 11 17 CFR 200.30–3(a)(12). Trust Shares); 8.204 (Commodity Futures Trust
1 15 U.S.C. 78s(b)(1). Shares); 8.300 (Partnership Units); 8.500 (Trust
9 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
Units); 8.600 (Managed Fund Shares), and 8.700
10 17 CFR 240.19b–4(f). 3 17 CFR 240.19b–4. (Managed Trust Securities).
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Document Created: 2018-02-07 15:10:27
Document Modified: 2018-02-07 15:10:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 33718 |
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