81 FR 39979 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Extension of the Exchange's Penny Pilot Program and Replacement of Penny Pilot Issues That Have Been Delisted
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 118 (June 20, 2016)
Federal Register Volume 81, Issue 118 (June 20, 2016)
| Page Range | 39979-39981 | |
| FR Document | 2016-14444 |
[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)] [Notices] [Pages 39979-39981] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14444] [[Page 39979]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78060; File No. SR-Phlx-2016-47] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Extension of the Exchange's Penny Pilot Program and Replacement of Penny Pilot Issues That Have Been Delisted June 14, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given that on June 10, 2016, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II, 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 is filing with the Commission a proposal to amend Phlx Rule 1034 (Minimum Increments) \3\ to extend through December 31, 2016 or the date of permanent approval, if earlier, the Penny Pilot Program in options classes in certain issues (``Penny Pilot'' or ``Pilot''), and to change the date when delisted classes may be replaced in the Penny Pilot.\4\ --------------------------------------------------------------------------- \3\ References herein to rules refer to rules of Phlx, unless otherwise noted. \4\ The Penny Pilot was established in January 2007 and was last extended in 2014. See Securities Exchange Act Release Nos. 55153 (January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74) (notice of filing and approval order establishing Penny Pilot); and 75286 (June 24, 2015), 80 FR 37333 (June 30, 2015) (SR-Phlx-2015-54) (notice of filing and immediate effectiveness extending the Penny Pilot through June 30, 2016). --------------------------------------------------------------------------- The text of the amended Exchange rule is set forth immediately below. Proposed new language is in italics and proposed deleted language is [bracketed]. NASDAQ PHLX Rules Options Rules * * * * * Rule 1034. Minimum Increments (a) Except as provided in sub-paragraphs (i)(B) and (iii) below, all options on stocks, index options, and Exchange Traded Fund Shares quoting in decimals at $3.00 or higher shall have a minimum increment of $.10, and all options on stocks and index options quoting in decimals under $3.00 shall have a minimum increment of $.05. (i)(A) No Change. (B) For a pilot period scheduled to expire [June 30] December 31, 2016 or the date of permanent approval, if earlier (the ``pilot''), certain options shall be quoted and traded on the Exchange in minimum increments of $0.01 for all series in such options with a price of less than $3.00, and in minimum increments of $0.05 for all series in such options with a price of $3.00 or higher, except that options overlying the PowerShares QQQ Trust (``QQQQ'')[supreg], SPDR S&P 500 Exchange Traded Funds (``SPY''), and iShares Russell 2000 Index Funds (``IWM'') shall be quoted and traded in minimum increments of $0.01 for all series regardless of the price. A list of such options shall be communicated to membership via an Options Trader Alert (``OTA'') posted on the Exchange's Web site. The Exchange may replace any pilot issues that have been delisted with the next most actively traded multiply listed options classes that are not yet included in the pilot, based on trading activity in the previous six months. The replacement issues may be added to the pilot on the second trading day following July 1, [2015] 2016 [and January 1, 2016]. (C) No Change. (ii)-(v) No Change. * * * * * The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqomxphlx.cchwallstreet.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 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 purpose of this filing is to amend Phlx Rule 1034 to extend the Penny Pilot through December 31, 2016 or the date of permanent approval, if earlier,\5\ and to change the date when delisted classes may be replaced in the Penny Pilot. The Exchange believes that extending the Penny Pilot will allow for further analysis of the Penny Pilot and a determination of how the program should be structured in the future. --------------------------------------------------------------------------- \5\ The options exchanges in the U.S. that have pilot programs similar to the Penny Pilot (together ``pilot programs'') are currently working on a proposal for permanent approval of the respective pilot programs. --------------------------------------------------------------------------- Under the Penny Pilot, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot is currently scheduled to expire on June 30, 2016. The Exchange proposes to extend the time period of the Penny Pilot through December 31, 2016 or the date of permanent approval, if earlier, and to provide a revised date for adding replacement issues to the Penny Pilot. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2016. The replacement issues will be selected based on trading activity in the previous six months.\6\ --------------------------------------------------------------------------- \6\ The replacement issues will be announced to the Exchange's membership via an Options Trader Alert (OTA) posted on the Exchange's Web site. The Exchange proposes in its Penny Pilot rule that replacement issues will be selected based on trading activity in the previous six months. The replacement issues would be identified based on The Options Clearing Corporation's trading volume data. For example, for the July replacement, trading volume from December 1, 2015 through May 30, 2016 would be analyzed. The month immediately preceding the replacement issues' addition to the Pilot Program (i.e., June) would not be used for purposes of the six-month analysis. --------------------------------------------------------------------------- This filing does not propose any substantive changes to the Penny Pilot Program; all classes currently participating in the Penny Pilot will remain the same and all minimum increments will remain unchanged. The [[Page 39980]] Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the potential increase in quote traffic. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\8\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot for an additional six months through December 31, 2016 or the date of permanent approval, if earlier, and changes the date for replacing Penny Pilot issues that were delisted to the second trading day following July 1, 2016, will enable public customers and other market participants to express their true prices to buy and sell options for the benefit of all market participants. This is consistent with the Act. 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. To the contrary, this proposal is pro-competitive because it allows Penny Pilot issues to continue trading on the Exchange. Moreover, the Exchange believes that the proposed rule change will allow for further analysis of the Pilot and a determination of how the Pilot should be structured in the future; and will serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot is an industry-wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot will allow for continued competition between market participants on the Exchange trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot. 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(iii). \10\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally does not become operative prior to 30 days after the date of the filing.\12\ However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\14\ --------------------------------------------------------------------------- \11\ 17 CFR 240.19b-4(f)(6). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this pre-filing requirement. \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-Phlx-2016-47 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, Station Place, 100 F Street NE., Washington, DC 20549-9303. All submissions should refer to File Number SR-Phlx-2016-47. 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 [[Page 39981]] 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 the filing also will be available for inspection and copying at the principal office of Phlx. 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-Phlx-2016-47 and should be submitted on or before July 11, 2016. --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14444 Filed 6-17-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Notices 39979
SECURITIES AND EXCHANGE Exchange Traded Fund Shares quoting A. Self-Regulatory Organization’s
COMMISSION in decimals at $3.00 or higher shall have Statement of the Purpose of, and
a minimum increment of $.10, and all Statutory Basis for, the Proposed Rule
[Release No. 34–78060; File No. SR–Phlx–
2016–47] options on stocks and index options Change
quoting in decimals under $3.00 shall 1. Purpose
Self-Regulatory Organizations; have a minimum increment of $.05.
NASDAQ PHLX LLC; Notice of Filing The purpose of this filing is to amend
(i)(A) No Change. Phlx Rule 1034 to extend the Penny
and Immediate Effectiveness of a
Proposed Rule Change Relating to (B) For a pilot period scheduled to Pilot through December 31, 2016 or the
Extension of the Exchange’s Penny expire [June 30] December 31, 2016 or date of permanent approval, if earlier,5
Pilot Program and Replacement of the date of permanent approval, if and to change the date when delisted
Penny Pilot Issues That Have Been earlier (the ‘‘pilot’’), certain options classes may be replaced in the Penny
Delisted shall be quoted and traded on the Pilot. The Exchange believes that
Exchange in minimum increments of extending the Penny Pilot will allow for
June 14, 2016. $0.01 for all series in such options with further analysis of the Penny Pilot and
Pursuant to Section 19(b)(1) of the a price of less than $3.00, and in a determination of how the program
Securities Exchange Act of 1934 minimum increments of $0.05 for all should be structured in the future.
(‘‘Act’’),1 and Rule 19b–4 2 thereunder, series in such options with a price of Under the Penny Pilot, the minimum
notice is hereby given that on June 10, $3.00 or higher, except that options price variation for all participating
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or overlying the PowerShares QQQ Trust options classes, except for the Nasdaq-
‘‘Exchange’’) filed with the Securities (‘‘QQQQ’’)®, SPDR S&P 500 Exchange 100 Index Tracking Stock (‘‘QQQQ’’),
and Exchange Commission (‘‘SEC’’ or Traded Funds (‘‘SPY’’), and iShares the SPDR S&P 500 Exchange Traded
‘‘Commission’’) the proposed rule Russell 2000 Index Funds (‘‘IWM’’) Fund (‘‘SPY’’) and the iShares Russell
change as described in Items I and II, shall be quoted and traded in minimum 2000 Index Fund (‘‘IWM’’), is $0.01 for
below, which Items have been prepared increments of $0.01 for all series all quotations in options series that are
by the Exchange. The Commission is regardless of the price. A list of such quoted at less than $3 per contract and
publishing this notice to solicit options shall be communicated to $0.05 for all quotations in options series
comments on the proposed rule change membership via an Options Trader Alert that are quoted at $3 per contract or
from interested persons. (‘‘OTA’’) posted on the Exchange’s Web greater. QQQQ, SPY and IWM are
I. Self-Regulatory Organization’s site. quoted in $0.01 increments for all
Statement of the Terms of Substance of options series. The Penny Pilot is
The Exchange may replace any pilot currently scheduled to expire on June
the Proposed Rule Change issues that have been delisted with the 30, 2016.
The Exchange is filing with the next most actively traded multiply The Exchange proposes to extend the
Commission a proposal to amend Phlx listed options classes that are not yet time period of the Penny Pilot through
Rule 1034 (Minimum Increments) 3 to included in the pilot, based on trading December 31, 2016 or the date of
extend through December 31, 2016 or activity in the previous six months. The permanent approval, if earlier, and to
the date of permanent approval, if replacement issues may be added to the provide a revised date for adding
earlier, the Penny Pilot Program in pilot on the second trading day replacement issues to the Penny Pilot.
options classes in certain issues (‘‘Penny following July 1, [2015] 2016 [and The Exchange proposes that any Penny
Pilot’’ or ‘‘Pilot’’), and to change the January 1, 2016]. Pilot Program issues that have been
date when delisted classes may be (C) No Change. delisted may be replaced on the second
replaced in the Penny Pilot.4 trading day following July 1, 2016. The
The text of the amended Exchange (ii)–(v) No Change.
replacement issues will be selected
rule is set forth immediately below. * * * * * based on trading activity in the previous
Proposed new language is in italics The text of the proposed rule change six months.6
and proposed deleted language is is available on the Exchange’s Web site This filing does not propose any
[bracketed]. at http://nasdaqomxphlx. substantive changes to the Penny Pilot
NASDAQ PHLX Rules cchwallstreet.com, at the principal Program; all classes currently
Options Rules office of the Exchange, and at the participating in the Penny Pilot will
Commission’s Public Reference Room. remain the same and all minimum
* * * * * increments will remain unchanged. The
II. Self-Regulatory Organization’s
Rule 1034. Minimum Increments Statement of the Purpose of, and 5 The options exchanges in the U.S. that have
(a) Except as provided in sub- Statutory Basis for, the Proposed Rule pilot programs similar to the Penny Pilot (together
paragraphs (i)(B) and (iii) below, all Change ‘‘pilot programs’’) are currently working on a
options on stocks, index options, and proposal for permanent approval of the respective
In its filing with the Commission, the pilot programs.
6 The replacement issues will be announced to
1 15
U.S.C. 78s(b)(1). Exchange included statements
the Exchange’s membership via an Options Trader
2 17 CFR 240.19b–4. concerning the purpose of and basis for Alert (OTA) posted on the Exchange’s Web site. The
3 References herein to rules refer to rules of Phlx, the proposed rule change and discussed
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Exchange proposes in its Penny Pilot rule that
unless otherwise noted. any comments it received on the replacement issues will be selected based on
4 The Penny Pilot was established in January 2007 trading activity in the previous six months. The
proposed rule change. The text of these
and was last extended in 2014. See Securities replacement issues would be identified based on
Exchange Act Release Nos. 55153 (January 23, statements may be examined at the The Options Clearing Corporation’s trading volume
2007), 72 FR 4553 (January 31, 2007) (SR–Phlx– places specified in Item IV below. The data. For example, for the July replacement, trading
2006–74) (notice of filing and approval order Exchange has prepared summaries, set volume from December 1, 2015 through May 30,
establishing Penny Pilot); and 75286 (June 24, 2016 would be analyzed. The month immediately
2015), 80 FR 37333 (June 30, 2015) (SR–Phlx–2015–
forth in sections A, B, and C below, of preceding the replacement issues’ addition to the
54) (notice of filing and immediate effectiveness the most significant aspects of such Pilot Program (i.e., June) would not be used for
extending the Penny Pilot through June 30, 2016). statements. purposes of the six-month analysis.
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![Federal Register / Vol. 81, No. 118 / Monday, June 20, 2016 / Notices 39981
provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule Pilot Securities,8 respectively, and
available for Web site viewing and change from interested persons. result in a standard rebate of $0.01 per
printing in the Commission’s Public contract. The Exchange proposes to
I. Self-Regulatory Organization’s
Reference Room, 100 F Street NE., increase the standard rate for all
Statement of the Terms of Substance of
Washington, DC 20549, on official Customer orders in Penny Pilot
the Proposed Rule Change
business days between the hours of Securities and Non-Penny Pilot
10:00 a.m. and 3:00 p.m. Copies of the The Exchange filed a proposal to Securities to a standard rebate of $0.05
filing also will be available for amend the fee schedule applicable to per contract. In addition to reflecting the
inspection and copying at the principal Members 5 and non-members of the increase in the Fee Codes and
office of Phlx. All comments received Exchange pursuant to EDGX Rules Associated Fees portion of the
will be posted without change; the 15.1(a) and (c). Exchange’s fee schedule for fee codes
Commission does not edit personal The text of the proposed rule change PC and NC, the Exchange proposes to
identifying information from is available at the Exchange’s Web site delete the reference to the $0.01 rebate
submissions. You should submit only at www.batstrading.com, at the on the Standard Rates table with respect
information that you wish to make principal office of the Exchange, and at to fee codes PC and NC. The Standard
available publicly. the Commission’s Public Reference Rates table provides a range of rebates
All submissions should refer to File and fees applicable to executions on the
Room.
Number SR–Phlx–2016–47 and should Exchange in summary form.
II. Self-Regulatory Organization’s In addition to the standard rebate
be submitted on or before July 11, 2016.
Statement of the Purpose of, and provided to all Customer orders, the
For the Commission, by the Division of Statutory Basis for, the Proposed Rule Exchange offers several Customer
Trading and Markets, pursuant to delegated Change Volume Tiers pursuant to footnote 1.
authority.16 The Customer Volume Tiers currently
Robert W. Errett, In its filing with the Commission, the consist of six separate tiers, each
Deputy Secretary. Exchange included statements providing an enhanced rebate to a
[FR Doc. 2016–14444 Filed 6–17–16; 8:45 am] concerning the purpose of and basis for Member’s Customer orders that yield fee
BILLING CODE 8011–01–P
the proposed rule change and discussed codes PC or NC upon satisfying monthly
any comments it received on the volume criteria required by the
proposed rule change. The text of these respective tier. Pursuant to Customer
SECURITIES AND EXCHANGE statements may be examined at the Volume Tier 1, the lowest volume tier,
COMMISSION places specified in Item IV below. The a Member currently receives a rebate of
Exchange has prepared summaries, set $0.05 per contract where the Member
[Release No. 34–78062; File No. SR–
forth in Sections A, B, and C below, of has an ADV 9 in Customer orders equal
BatsEDGX–2016–21] the most significant parts of such to or greater than 0.10% of average
statements. TCV.10 Because the Exchange is
Self-Regulatory Organizations; Bats (A) Self-Regulatory Organization’s increasing its standard rebate to $0.05
EDGX Exchange, Inc.; Notice of Filing Statement of the Purpose of, and per share, the Exchange proposes to
and Immediate Effectiveness of a Statutory Basis for, the Proposed Rule delete current Tier 1 and to re-number
Proposed Rule Change Related to Fees Change Tiers 2 through 6 as Tiers 1 through 5.
as They Apply to the Equity Options
Platform 1. Purpose Tiered Pricing Changes
The Exchange proposes to amend its In addition to the Customer Volume
June 14, 2016.
fee schedule for its equity options Tiers described above and in footnote 1
Pursuant to Section 19(b)(1) of the of the fee schedule, the Exchange also
platform (‘‘EDGX Options’’) to: (1)
Securities Exchange Act of 1934 (the provides reduced fees or enhanced
Increase the Exchange’s standard rates
‘‘Act’’),1 and Rule 19b–4 thereunder,2 rebates under the Market Maker Volume
for Customer 6 orders executed on the
notice is hereby given that on June 1, Tiers described in footnote 2. Fee codes
EDGX Options and to make related
2016, Bats EDGX Exchange, Inc. (the PM and NM are currently appended to
changes; (2) modify the criteria to
‘‘Exchange’’ or ‘‘EDGX’’) filed with the all Market Maker 11 orders in Penny
qualify for a tier under the Exchange’s
Securities and Exchange Commission Pilot Securities and Non-Penny Pilot
existing tiered pricing structure; and (3)
(‘‘Commission’’) the proposed rule Securities, respectively, and result in a
modify the Exchange’s routing fees, as
change as described in Items I, II and III standard fee of $0.19 per contract. The
further described below.
below, which Items have been prepared
by the Exchange. The Exchange has Customer Orders 8 The term ‘‘Non-Penny Pilot Security’’ applies to
designated the proposed rule change as those issues that are not Penny Pilot Securities
one establishing or changing a member Fee codes PC and NC are currently quoted pursuant to Exchange Rule 21.5,
appended to all Customer orders in Interpretation and Policy .01.
due, fee, or other charge imposed by the 9 ‘‘ADV’’ means average daily volume calculated
Exchange under Section 19(b)(3)(A)(ii) Penny Pilot Securities 7 and Non-Penny
as the number of contracts added or removed,
of the Act 3 and Rule 19b–4(f)(2) combined, per day.
5 The term ‘‘Member’’ is defined as ‘‘any 10 ‘‘TCV’’ means total consolidated volume
thereunder,4 which renders the
registered broker or dealer that has been admitted calculated as the volume reported by all exchanges
asabaliauskas on DSK3SPTVN1PROD with NOTICES
proposed rule change effective upon to membership in the Exchange.’’ See Exchange to the consolidated transaction reporting plan for
filing with the Commission. The Rule 1.5(n). the month for which the fees apply, excluding
Commission is publishing this notice to 6 The term ‘‘Customer’’ applies to any transaction volume on any day that the Exchange experiences
identified by a Member for clearing in the Customer an Exchange System Disruption and on any day
16 17
range at the Options Clearing Corporation (‘‘OCC’’), with a scheduled early market close.
CFR 200.30–3(a)(12). excluding any transaction for a Broker Dealer or a 11 The term ‘‘Market Maker’’ applies to any
1 15 U.S.C. 78s(b)(1). ‘‘Professional’’ as defined in Exchange Rule 16.1. transaction identified by a Member for clearing in
2 17 CFR 240.19b–4. 7 The term ‘‘Penny Pilot Security’’ applies to the Market Maker range at the OCC, where such
3 15 U.S.C. 78s(b)(3)(A)(ii).
those issues that are quoted pursuant to Exchange Member is registered with the Exchange as a Market
4 17 CFR 240.19b–4(f)(2). Rule 21.5, Interpretation and Policy .01. Maker as defined in Rule 16.1(a)(37).
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Document Created: 2016-06-18 00:09:08
Document Modified: 2016-06-18 00:09:08
| 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 39979 |
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