81 FR 43295 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.22(j) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing Price
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 127 (July 1, 2016)
Federal Register Volume 81, Issue 127 (July 1, 2016)
| Page Range | 43295-43297 | |
| FR Document | 2016-15582 |
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)] [Notices] [Pages 43295-43297] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15582] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78164; File No. SR-BatsBZX-2016-27] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.22(j) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing Price June 27, 2016. 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 June 17, 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 content of the Bats One Feed under Rule 11.22(j) to identify certain transactions as the ``Bats One Opening Price'' or the ``Bats One Closing Price.'' 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. 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 content of the Bats One Feed under Rule 11.22(j) to identify certain transactions as the ``Bats One Opening Price'' or the ``Bats One Closing Price.'' The last sale information described below that the Exchange proposes to identify as the Bats One Opening or Closing Price is currently included in the Bats One Feed. The Exchange notes that it is not proposing to add new data elements to the Bats One Feed; it is simply proposing to identify existing data elements as the Bats One Opening or Closing Price. The Bats One Feed is a data feed that disseminates, on a real-time basis, the aggregate best bid and offer (``BBO'') of all displayed orders for securities traded on BZX and its affiliated exchanges \3\ and for which the Bats Exchanges reports [sic] quotes under the Consolidated Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan.\4\ --------------------------------------------------------------------------- \3\ BZX's affiliated exchanges are the Bats BYX Exchange, Inc. (``BYX''), Bats EDGA Exchange, Inc. (``EDGA''), and Bats EDGX Exchange, Inc. (``EDGX'', together with EDGA, BZX, and BYX, the ``Bats Exchanges''). \4\ See Securities Exchange Act Release No. 73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) (Notice of Amendments No. 2 and Order Granting Accelerated Approval to Proposed Rule Changes, as Modified by Amendments Nos. 1 and 2, to Establish a New Market Data Product called the Bats One Feed) (``Bats One Approval Order''). --------------------------------------------------------------------------- The last sale information disseminated as part of the Bats One Feed includes the price, size, time of execution, and individual Bats Exchange on which the trade was executed. The last sale information also includes the cumulative number of shares executed on all Bats Exchanges for that trading day.\5\ --------------------------------------------------------------------------- \5\ The Bats One Feed also contains optional functionality which enables recipients to receive aggregated two-sided quotations from the Bats Exchanges for up to five (5) price levels for all securities that are traded on the Bats Exchanges in addition to the Bats One Summary Feed (``Bats One Premium Feed''). For each price level on one of the Bats Exchanges, the Bats One Premium Feed includes a two-sided quote and the number of shares available to buy and sell at that particular price level. --------------------------------------------------------------------------- The Exchange now proposes to identify certain last sale transactions as the Bats One Opening Price or the Bats One Closing Price. For BZX listed [[Page 43296]] securities,\6\ the Bats One Opening Price would be the BZX Official Opening Price as defined in BZX Rule 11.23(a)(5) \7\ and the Bats One Closing Price would be the BZX Official Closing Price as defined in BZX Rule 11.23(a)(3).\8\ For non-BZX listed securities, the Bats One Opening Price would be the first last sale eligible trade \9\ that occurred on a Bats Exchange after 9:30 a.m. Eastern Time. That first trade would be identified as the Bats One Opening Price when disseminated via the Bats One Feed. The Bats One Closing Price for non- BZX listed securities would be the final last sale eligible trade to occur on a Bats Exchange prior to 4:00 p.m. Eastern Time. The Bats One Closing Price would be disseminated via the Bats One Feed after 4:00 p.m. Eastern Time. The Exchange would not disseminate a Bats One Opening or Closing Price for a particular trading day when a trade satisfying the above criteria does not occur. --------------------------------------------------------------------------- \6\ A BZX listed security is a security listed on the BZX pursuant to Chapter 14 of BZX's Rules. \7\ The term ``BZX Official Opening Price'' is the price disseminated to the consolidated tape as the market center opening trade. See Exchange Rule 11.23(a)(5). In the event that there is no opening auction for a BZX listed security, the BZX Official Opening Price will be the price of the final last sale eligible trade, which will be the previous BZX Official Closing Price. See BZX Rule 11.23(b)(2)(B). \8\ The term ``BZX Official Closing Price'' is the price disseminated to the consolidated tape as the market center closing trade. See Exchange Rule 11.23(a)(3). In the event that there is no closing auction for a BZX listed security, the BZX Official Closing Price will be the price of the final last sale eligible trade. See BZX Rule 11.23(c)(2)(B). \9\ A last sale eligible trade must be of at least one round lot. A round lot consists of one hundred (100) shares. See Exchange Rule 11.10. --------------------------------------------------------------------------- In addition, the Bats One Opening and Closing Price for BZX listed securities are included in the depth-of-book data feeds for each of the Bats Exchanges, which are used to construct the Bats One Feed. Also, the Bats One Opening and Closing Prices for non-BZX listed securities is derivable from the underlying data feeds that comprise the Bats One Feed, as those feeds contain the necessary last sale information to identify if a transaction is last sale eligible. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \10\ in general, and furthers the objectives of Section 6(b)(5) of the Act \11\ in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change is consistent with Section 11(A) of the Act \12\ in that it supports (1) fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets and (2) the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. Furthermore, the proposed rule change is consistent with Rule 603 of Regulation NMS,\13\ which provides that any national securities exchange which distributes information with respect to quotations for or transactions in an NMS stock do so on terms that are not unreasonably discriminatory. In adopting Regulation NMS, the Commission granted self-regulatory organizations and broker-dealers increased authority and flexibility to offer new and unique market data products to the public. It was believed that this authority would expand the amount of data available to consumers, and also spur innovation and competition in the market data provider industry. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78k-1. \13\ See 17 CFR 242.603. --------------------------------------------------------------------------- The proposed rule change is designed to promote just and equitable principles of trade and remove impediments to and perfect the mechanism of a free and open market and a national market system by identifying certain transactions as the Bats One Opening or Closing Price to investors. The Exchange also believes this proposal is consistent with Section 6(b)(5) of the Act because it protects investors and the public interest and promotes just and equitable principles of trade by providing investors with new options for receiving such information. Lastly, the proposal would not permit unfair discrimination because the information will be available to all investors and market data vendors on an equivalent basis. In addition, any investor that wishes to receive such information via a different source will be able to do so. As noted above, the Exchange is not proposing to add new data elements to the Bats One Feed; it is simply proposing to identify existing data elements as the Bats One Opening or Closing Price. Specifically, that the BZX Official Opening Price and BZX Official Closing Price for BZX listed securities are currently provided and disseminated via the consolidated tape \14\ and included in the depth- of-book data feeds for each of the Bats Exchanges, which are used to construct the Bats One Feed. In addition, investors can also independently identify the Bats One Official Opening and Closing prices for non-BZX listed securities via other sources, as prices of the first and final last sale eligible transaction to occur during Regular Trading Hours \15\ are posted to the consolidated tape. Also, the Bats One Opening and Closing Prices for non-BZX listed securities are derivable from the underlying data feeds that comprise the Bats One Feed, as those feeds contain the necessary last sale information to identify if a transaction is last sale eligible. --------------------------------------------------------------------------- \14\ See BZX Rule 11.23(a)(3) and (5). \15\ Regular Trading Hours is defined as the time between 9:30 a.m. and 4:00 p.m. Eastern Time. See Exchange Rule 1.5(w). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe the proposal will impose any burden on competition not deemed necessary or appropriate in furtherance of the purposes of the Act. A vendor seeking to offer a similar product by identifying certain transaction as an opening or closing price would be able to do so on the same terms as the Exchange. As discussed in in [sic] the Bats One Approval Order,\16\ any entity may separately purchase the individual underlying products, and if they so choose, perform an aggregation and consolidation function similar to that which the Exchange performs in creating the Bats One Feed. Any entity may offer a data feed with the same information included in the Bats One Feed to sell and distribute it to its clients with no greater cost than the Exchange. Likewise, a competing vendor could independently identify certain transaction as an opening or closing price and include such information as part of their product to be disseminated to their customers. As discussed above, the BZX Official Opening Price and BZX Official Closing Price for BZX listed securities is currently provided to and disseminated via the consolidated tape.\17\ A competing market data vendor could also independently identify the Bats One Official Opening and Closing prices for non-BZX listed securities via other sources, as such prices are the first and final last sale eligible transaction to occur during Regular Trading Hours. [[Page 43297]] Therefore, the Exchange believes the identification of an Official Bats One Opening Price or Closing Price in the Bats One Feed would not impose any burden on competition not deemed necessary or appropriate in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \16\ See Bats One Approval Order, supra note 4. \17\ See BZX Rule 11.23(a)(3) and (5). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, become operative for 30 days from the date on which it was filed or such shorter time as the Commission may designate it has become effective pursuant to Section 19(b)(3)(A) of the Act \18\ and paragraph (f)(6) of Rule 19b-4 thereunder,\19\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and 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. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of 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 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-2016-27 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-BatsBZX-2016-27. 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 will also 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-2016-27 and should be submitted on or before July 22, 2016. --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-15582 Filed 6-30-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices 43295
SUMMARY: The Postal Service hereby Documents pertinent to this action are Exchange has prepared summaries, set
provides notice that Post Office® Box available at www.prc.gov, Docket No. forth in Sections A, B, and C below, of
service for ZIP Code® 98025 is MC2011–25. the most significant parts of such
reassigned from its market dominant fee statements.
Stanley F. Mires,
group to a competitive fee group, and A. Self-Regulatory Organization’s
Post Office Box services for ZIP Code Attorney, Federal Compliance.
[FR Doc. 2016–15640 Filed 6–30–16; 8:45 am] Statement of the Purpose of, and
87325 and ZIP Code 87326 are Statutory Basis for, the Proposed Rule
reassigned from their competitive fee BILLING CODE 7710–12–P
Change
groups to market dominant fee groups.
1. Purpose
DATES: Effective date: August 15, 2016. SECURITIES AND EXCHANGE The Exchange proposes to amend the
FOR FURTHER INFORMATION CONTACT: COMMISSION content of the Bats One Feed under Rule
Direct questions or comments to: Joyce [Release No. 34–78164; File No. SR– 11.22(j) to identify certain transactions
Fleming (joycelyn.b.robinsonfleming BatsBZX–2016–27] as the ‘‘Bats One Opening Price’’ or the
@usps.gov), 202–268–7540; or David ‘‘Bats One Closing Price.’’ The last sale
Rubin (david.h.rubin@usps.gov), 202– Self-Regulatory Organizations; Bats information described below that the
268–2986. BZX Exchange, Inc.; Notice of Filing Exchange proposes to identify as the
SUPPLEMENTARY INFORMATION: Locations and Immediate Effectiveness of a Bats One Opening or Closing Price is
providing Post Office Box service are Proposed Rule Change to Rule 11.22(j) currently included in the Bats One
assigned to fee groups and classified as Identifying Certain Transactions as the Feed. The Exchange notes that it is not
competitive or market dominant based Bats One Opening Price or the Bats proposing to add new data elements to
upon the Post Office location and other One Closing Price the Bats One Feed; it is simply
criteria. proposing to identify existing data
June 27, 2016.
elements as the Bats One Opening or
In May 2011, a Request of the United Pursuant to Section 19(b)(1) of the Closing Price. The Bats One Feed is a
States Postal Service was filed with the Securities Exchange Act of 1934 (the data feed that disseminates, on a real-
Postal Regulatory Commission (PRC) to ‘‘Act’’),1 and Rule 19b–4 thereunder,2 time basis, the aggregate best bid and
transfer approximately 6,800 P.O. Box notice is hereby given that on June 17, offer (‘‘BBO’’) of all displayed orders for
locations from market dominant to 2016, Bats BZX Exchange, Inc. (the securities traded on BZX and its
competitive fee groups. At that time, the ‘‘Exchange’’ or ‘‘BZX’’) filed with the affiliated exchanges 3 and for which the
Postal Service advised the PRC that a Securities and Exchange Commission Bats Exchanges reports [sic] quotes
Federal Register notice would be filed (‘‘Commission’’) the proposed rule under the Consolidated Tape
when any future P.O. Box locations are change as described in Items I, II, and Association (‘‘CTA’’) Plan or the
transferred. III below, which Items have been Nasdaq/UTP Plan.4
While the Post Office serving ZIP prepared by the Exchange. The The last sale information
Code 98025 was inadvertently excluded Commission is publishing this notice to disseminated as part of the Bats One
from previous PRC filings, the solicit comments on the proposed rule Feed includes the price, size, time of
customers at that location have had a change from interested persons. execution, and individual Bats
qualified competitive choice since the I. Self-Regulatory Organization’s Exchange on which the trade was
time of the 2011 filing. The Box Section Statement of the Terms of Substance of executed. The last sale information also
98025 facility, in Hobart, Washington, the Proposed Rule Change includes the cumulative number of
serves approximately 424 P.O. Box shares executed on all Bats Exchanges
customers, and the location meets the The Exchange filed a proposal to for that trading day.5
criteria to be classified as and assigned amend the content of the Bats One Feed The Exchange now proposes to
to a competitive fee group. Therefore, under Rule 11.22(j) to identify certain identify certain last sale transactions as
the Postal Service has reassigned transactions as the ‘‘Bats One Opening the Bats One Opening Price or the Bats
Hobart, Washington, Box Section ZIP Price’’ or the ‘‘Bats One Closing Price.’’ One Closing Price. For BZX listed
Code 98025 from Market Dominant Fee The text of the proposed rule change
Group 4 to Competitive Fee Group 34. is available at the Exchange’s Web site 3 BZX’s affiliated exchanges are the Bats BYX
at www.batstrading.com, at the Exchange, Inc. (‘‘BYX’’), Bats EDGA Exchange, Inc.
Conversely, the Post Offices serving principal office of the Exchange, and at (‘‘EDGA’’), and Bats EDGX Exchange, Inc. (‘‘EDGX’’,
ZIP Codes 87325 and 87326 were the Commission’s Public Reference together with EDGA, BZX, and BYX, the ‘‘Bats
inadvertently included in a previous Exchanges’’).
Room. 4 See Securities Exchange Act Release No. 73918
PRC filing, but did not have a qualified
II. Self-Regulatory Organization’s (December 23, 2014), 79 FR 78920 (December 31,
competitor at the time of the 2011 filing. 2014) (File Nos. SR–EDGX–2014–25; SR–EDGA–
The Box Section 87325 in Tohatchi, Statement of the Purpose of, and 2014–25; SR–BATS–2014–055; SR–BYX–2014–030)
New Mexico, and the Box Section 87326 Statutory Basis for, the Proposed Rule (Notice of Amendments No. 2 and Order Granting
in Vanderwagen, New Mexico, do not Change Accelerated Approval to Proposed Rule Changes, as
Modified by Amendments Nos. 1 and 2, to Establish
meet the criteria to be classified as and In its filing with the Commission, the a New Market Data Product called the Bats One
assigned to a competitive fee group. Exchange included statements Feed) (‘‘Bats One Approval Order’’).
Therefore, the Postal Service has
asabaliauskas on DSK3SPTVN1PROD with NOTICES
5 The Bats One Feed also contains optional
concerning the purpose of and basis for
reassigned Tohatchi, New Mexico, Box functionality which enables recipients to receive
the proposed rule change and discussed aggregated two-sided quotations from the Bats
Section ZIP Code 87325 from any comments it received on the Exchanges for up to five (5) price levels for all
Competitive Fee Group 35 to Market proposed rule change. The text of these securities that are traded on the Bats Exchanges in
Dominant Fee Group 5; and has statements may be examined at the addition to the Bats One Summary Feed (‘‘Bats One
reassigned Vanderwagen, New Mexico, Premium Feed’’). For each price level on one of the
places specified in Item IV below. The Bats Exchanges, the Bats One Premium Feed
Box Section ZIP Code 87326 from includes a two-sided quote and the number of
Competitive Fee Group 40 to Market 1 15 U.S.C. 78s(b)(1). shares available to buy and sell at that particular
Dominant Fee Group 3. 2 17 CFR 240.19b–4. price level.
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![43296 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
securities,6 the Bats One Opening Price remove impediments to and perfect the disseminated via the consolidated
would be the BZX Official Opening mechanism of a free and open market tape 14 and included in the depth-of-
Price as defined in BZX Rule and a national market system and, in book data feeds for each of the Bats
11.23(a)(5) 7 and the Bats One Closing general, to protect investors and the Exchanges, which are used to construct
Price would be the BZX Official Closing public interest. the Bats One Feed. In addition,
Price as defined in BZX Rule The Exchange also believes that the investors can also independently
11.23(a)(3).8 For non-BZX listed proposed rule change is consistent with identify the Bats One Official Opening
securities, the Bats One Opening Price Section 11(A) of the Act 12 in that it and Closing prices for non-BZX listed
would be the first last sale eligible supports (1) fair competition among securities via other sources, as prices of
trade 9 that occurred on a Bats Exchange brokers and dealers, among exchange the first and final last sale eligible
after 9:30 a.m. Eastern Time. That first markets, and between exchange markets transaction to occur during Regular
trade would be identified as the Bats and markets other than exchange Trading Hours 15 are posted to the
One Opening Price when disseminated markets and (2) the availability to consolidated tape. Also, the Bats One
via the Bats One Feed. The Bats One brokers, dealers, and investors of Opening and Closing Prices for non-
Closing Price for non-BZX listed information with respect to quotations BZX listed securities are derivable from
securities would be the final last sale for and transactions in securities. the underlying data feeds that comprise
eligible trade to occur on a Bats Furthermore, the proposed rule change the Bats One Feed, as those feeds
Exchange prior to 4:00 p.m. Eastern is consistent with Rule 603 of contain the necessary last sale
Time. The Bats One Closing Price would Regulation NMS,13 which provides that information to identify if a transaction
be disseminated via the Bats One Feed any national securities exchange which is last sale eligible.
after 4:00 p.m. Eastern Time. The distributes information with respect to
Exchange would not disseminate a Bats quotations for or transactions in an NMS B. Self-Regulatory Organization’s
One Opening or Closing Price for a stock do so on terms that are not Statement on Burden on Competition
particular trading day when a trade unreasonably discriminatory. In The Exchange does not believe the
satisfying the above criteria does not adopting Regulation NMS, the proposal will impose any burden on
occur. Commission granted self-regulatory competition not deemed necessary or
In addition, the Bats One Opening organizations and broker-dealers appropriate in furtherance of the
and Closing Price for BZX listed increased authority and flexibility to purposes of the Act. A vendor seeking
securities are included in the depth-of- offer new and unique market data to offer a similar product by identifying
book data feeds for each of the Bats products to the public. It was believed certain transaction as an opening or
Exchanges, which are used to construct that this authority would expand the closing price would be able to do so on
the Bats One Feed. Also, the Bats One amount of data available to consumers, the same terms as the Exchange. As
Opening and Closing Prices for non- and also spur innovation and discussed in in [sic] the Bats One
BZX listed securities is derivable from competition in the market data provider Approval Order,16 any entity may
the underlying data feeds that comprise industry. separately purchase the individual
the Bats One Feed, as those feeds The proposed rule change is designed underlying products, and if they so
contain the necessary last sale to promote just and equitable principles choose, perform an aggregation and
information to identify if a transaction of trade and remove impediments to and consolidation function similar to that
is last sale eligible. perfect the mechanism of a free and which the Exchange performs in
open market and a national market creating the Bats One Feed. Any entity
2. Statutory Basis system by identifying certain may offer a data feed with the same
The Exchange believes that its transactions as the Bats One Opening or
proposal is consistent with Section 6(b) information included in the Bats One
Closing Price to investors. The Exchange
of the Act 10 in general, and furthers the Feed to sell and distribute it to its
also believes this proposal is consistent
objectives of Section 6(b)(5) of the Act 11 clients with no greater cost than the
with Section 6(b)(5) of the Act because
in particular, in that it is designed to Exchange. Likewise, a competing
it protects investors and the public
promote just and equitable principles of vendor could independently identify
interest and promotes just and equitable
trade, to foster cooperation and certain transaction as an opening or
principles of trade by providing
coordination with persons engaged in closing price and include such
investors with new options for receiving
facilitating transactions in securities, to information as part of their product to
such information.
be disseminated to their customers. As
Lastly, the proposal would not permit
discussed above, the BZX Official
6 A BZX listed security is a security listed on the
unfair discrimination because the
BZX pursuant to Chapter 14 of BZX’s Rules. Opening Price and BZX Official Closing
information will be available to all
7 The term ‘‘BZX Official Opening Price’’ is the Price for BZX listed securities is
price disseminated to the consolidated tape as the investors and market data vendors on an
currently provided to and disseminated
market center opening trade. See Exchange Rule equivalent basis. In addition, any
via the consolidated tape.17 A
11.23(a)(5). In the event that there is no opening investor that wishes to receive such
auction for a BZX listed security, the BZX Official
information via a different source will competing market data vendor could
Opening Price will be the price of the final last sale
be able to do so. As noted above, the also independently identify the Bats
eligible trade, which will be the previous BZX
Official Closing Price. See BZX Rule 11.23(b)(2)(B). Exchange is not proposing to add new One Official Opening and Closing prices
8 The term ‘‘BZX Official Closing Price’’ is the
data elements to the Bats One Feed; it for non-BZX listed securities via other
price disseminated to the consolidated tape as the sources, as such prices are the first and
asabaliauskas on DSK3SPTVN1PROD with NOTICES
is simply proposing to identify existing
market center closing trade. See Exchange Rule
data elements as the Bats One Opening final last sale eligible transaction to
11.23(a)(3). In the event that there is no closing occur during Regular Trading Hours.
auction for a BZX listed security, the BZX Official or Closing Price. Specifically, that the
Closing Price will be the price of the final last sale BZX Official Opening Price and BZX 14 See BZX Rule 11.23(a)(3) and (5).
eligible trade. See BZX Rule 11.23(c)(2)(B).
9 A last sale eligible trade must be of at least one
Official Closing Price for BZX listed 15 Regular Trading Hours is defined as the time
round lot. A round lot consists of one hundred securities are currently provided and between 9:30 a.m. and 4:00 p.m. Eastern Time. See
(100) shares. See Exchange Rule 11.10. Exchange Rule 1.5(w).
10 15 U.S.C. 78f(b). 12 15 U.S.C. 78k–1. 16 See Bats One Approval Order, supra note 4.
11 15 U.S.C. 78f(b)(5). 13 See 17 CFR 242.603. 17 See BZX Rule 11.23(a)(3) and (5).
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![Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices 43297
Therefore, the Exchange believes the Electronic Comments SECURITIES AND EXCHANGE
identification of an Official Bats One COMMISSION
Opening Price or Closing Price in the • Use the Commission’s Internet
comment form (http://www.sec.gov/ [Release No. 34–78181; File No. SR–
Bats One Feed would not impose any NYSEArca–2016–44]
burden on competition not deemed rules/sro.shtml); or
necessary or appropriate in furtherance • Send an email to rule-comments@ Self-Regulatory Organizations; NYSE
of the purposes of the Act. sec.gov. Please include File Number SR– Arca, Inc.; Notice of Filing of
BatsBZX–2016–27 on the subject line. Amendment No. 1, and Order Granting
C. Self-Regulatory Organization’s
Accelerated Approval of a Proposed
Statement on Comments on the Paper Comments Rule Change, as Modified by
Proposed Rule Change Received From
• Send paper comments in triplicate Amendment No. 1, To Add a New
Members, Participants or Others Discretionary Pegged Order
to Secretary, Securities and Exchange
The Exchange has neither solicited Commission, 100 F Street NE., June 28, 2016.
nor received written comments on the Washington, DC 20549–1090.
proposed rule change. I. Introduction
All submissions should refer to File
On March 11, 2016, NYSE Arca, Inc.
III. Date of Effectiveness of the Number SR–BatsBZX–2016–27. This file (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
Proposed Rule Change and Timing for number should be included on the with the Securities and Exchange
Commission Action subject line if email is used. To help the Commission (‘‘Commission’’), pursuant
Commission process and review your to Section 19(b)(1) of the Securities
Because the foregoing proposed rule
comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’) 1 and Rule
change does not: (A) Significantly affect
only one method. The Commission will 19b–4 thereunder,2 a proposed rule
the protection of investors or the public
post all comments on the Commission’s change to amend NYSE Arca Equities
interest; (B) impose any significant
Internet Web site (http://www.sec.gov/ Rule 7.31P(h) to add a new
burden on competition; and (C) by its
rules/sro.shtml). Copies of the Discretionary Pegged Order. The
terms, become operative for 30 days
from the date on which it was filed or submission, all subsequent proposed rule change was published for
such shorter time as the Commission amendments, all written statements comment in the Federal Register on
may designate it has become effective with respect to the proposed rule March 30, 2016.3 The Commission
pursuant to Section 19(b)(3)(A) of the change that are filed with the received two comment letters on the
Commission, and all written proposed rule change 4 and a response
Act 18 and paragraph (f)(6) of Rule 19b–
communications relating to the letter from the Exchange.5 On May 12,
4 thereunder,19 the Exchange has
proposed rule change between the 2016, pursuant to Section 19(b)(2) of the
designated this rule filing as non-
Commission and any person, other than Act,6 the Commission designated a
controversial. The Exchange has given
those that may be withheld from the longer period within which to approve
the Commission written notice of its
public in accordance with the the proposed rule change, disapprove
intent to file the proposed rule change, the proposed rule change, or institute
along with a brief description and text provisions of 5 U.S.C. 552, will be
available for Web site viewing and proceedings to determine whether to
of the proposed rule change at least five disapprove the proposed rule change.7
business days prior to the date of filing printing in the Commission’s Public
On June 23, 2016, the Exchange filed
of the proposed rule change, or such Reference Room, 100 F Street NE.,
Amendment No. 1 to the proposed rule
shorter time as designated by the Washington, DC 20549, on official
change.8 The Commission is publishing
Commission. business days between the hours of
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such 1 15 U.S.C. 78s(b)(1).
filing of the proposed rule change, the filing will also be available for 2 17 CFR 240.19b–4.
Commission summarily may inspection and copying at the principal 3 See Securities Exchange Act Release No. 77441
office of the Exchange. All comments (March 24, 2016), 81 FR 17749 (‘‘Notice’’).
temporarily suspend such rule change if 4 See Letter from Sophia Lee, General Counsel,
it appears to the Commission that such received will be posted without change; IEX Group, Inc. (‘‘IEX’’), to Brent J. Fields,
action is: (1) Necessary or appropriate in the Commission does not edit personal Secretary, Commission, dated April 15, 2016 (‘‘IEX
the public interest; (2) for the protection identifying information from Letter’’); Letter from John C. Nagel, Esq., Managing
submissions. You should submit only Director and Sr. Deputy General Counsel, Citadel
of investors; or (3) otherwise in LLC (‘‘Citadel’’), to Brent J. Fields, Secretary,
furtherance of the purposes of the Act. information that you wish to make Commission, dated April 20, 2016 (‘‘Citadel
If the Commission takes such action, the available publicly. All submissions Letter’’).
Commission shall institute proceedings should refer to File Number SR– 5 See Letter from Elizabeth K. King, General
BatsBZX–2016–27 and should be Counsel and Corporate Secretary, New York Stock
to determine whether the proposed rule Exchange, to Brent J. Fields, Secretary, Commission,
should be approved or disapproved. submitted on or before July 22, 2016. dated April 27, 2016 (‘‘Response Letter’’).
6 15 U.S.C. 78s(b)(2).
IV. Solicitation of Comments For the Commission, by the Division of
7 See Securities Exchange Act Release No. 77820,
Trading and Markets, pursuant to delegated
81 FR 31272 (May 18, 2016). The Commission
Interested persons are invited to authority.20 designated June 28, 2016, as the date by which it
submit written data, views, and Robert W. Errett, should approve, disapprove, or institute
asabaliauskas on DSK3SPTVN1PROD with NOTICES
arguments concerning the foregoing, proceedings to determine whether to disapprove the
Deputy Secretary. proposed rule change.
including whether the proposed rule [FR Doc. 2016–15582 Filed 6–30–16; 8:45 am] 8 In Amendment No. 1, the Exchange: (1) Added
change is consistent with the Act. subsection (E) to proposed Rule 7.31P(h)(3), which
BILLING CODE 8011–01–P
Comments may be submitted by any of would provide that if the PBBO (as defined below)
the following methods: is locked or crossed, both an arriving and resting
Discretionary Pegged Order would wait for a PBBO
that is not locked or crossed before the working
18 15 U.S.C. 78s(b)(3)(A). price (as defined below) is adjusted and the order
19 17 CFR 240.19b–4. 20 17 CFR 200.30–3(a)(12). Continued
VerDate Sep<11>2014 19:05 Jun 30, 2016 Jkt 238001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 E:\FR\FM\01JYN1.SGM 01JYN1](https://thefederalregister.org/doc/81_FR_43422/page/3.svg)
Document Created: 2016-07-14 11:37:48
Document Modified: 2016-07-14 11:37:48
| 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 43295 |
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