81 FR 46984 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to EDGA Rule 13.4(a), Stating It Will Utilize IEX Market Data From the CQS/UQDF for Purposes of Order Handling, Routing, and Related Compliance Processes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 138 (July 19, 2016)

Page Range		46984-46985
FR Document		2016-16970
Federal Register, Volume 81 Issue 138 (Tuesday, July 19, 2016)
[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)]
[Notices]
[Pages 46984-46985]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16970]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78314; File No. SR-BatsEDGA-2016-16]


Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change to EDGA 
Rule 13.4(a), Stating It Will Utilize IEX Market Data From the CQS/UQDF 
for Purposes of Order Handling, Routing, and Related Compliance 
Processes

July 13, 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 July 5, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to update Rule 13.4(a) regarding the 
public disclosure of the sources of data that the Exchange utilizes 
when performing: (i) Order handling; (ii) order routing; and (iii) 
related compliance processes to reflect the operation of the Investors 
Exchange LLC (``IEX'') as a registered national securities exchange \3\ 
beginning on August 19, 2016.\4\
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    \3\ See Securities Exchange Act Release No. 78101 (June 17, 
2016), 81 FR 41141 (June 23, 2016) (``IEX Approval Order'').
    \4\ See Letter from Brad Katsuyama, CEO, IEX, to IEX's Sell-Side 
and Buy-Side Partners, dated June 17, 2016 (https://www.iextrading.com/) (stating that IEX will commence a symbol-by-
symbol roll-out on August 19, 2016, concluding on September 2, 
2016).
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    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
    On June 17, 2016, the Commission approved IEX's application to 
register as a national securities exchange.\5\ As part of its 
transition to exchange status, IEX announced that it will commence a 
symbol-by-symbol roll-out on August 19, 2016, concluding on September 
2, 2016.\6\ The Exchange, therefore, proposes to update Rule 13.4(a) 
regarding the public disclosure of the sources of data that the 
Exchange utilizes when performing: (i) Order handling; (ii) order 
routing; and (iii)

[[Page 46985]]

related compliance processes to reflect the operation of IEX as a 
registered national securities exchange beginning on August 19, 2016. 
Specifically, the Exchange proposes to amend Rule 13.4 (a) to include 
IEX by stating it will utilize IEX market data from the CQS/UQDF for 
purposes of order handling, routing, and related compliance processes.
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    \5\ See supra note 3.
    \6\ See supra note 4.
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2. Statutory Basis
    The Exchange believes that the proposed rule change 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 regulating, 
clearing, settling, processing information with respect to, and 
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.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to update Exchange Rule 
13.4(a) to include IEX will ensure that the rule correctly identifies 
and publicly states on a market-by-market basis all of the specific 
network processor and proprietary data feeds that the Exchange utilizes 
for the handling, routing, and execution of orders, and for performing 
the regulatory compliance checks related to each of those functions. 
The proposed rule change also removes impediments to and perfects the 
mechanism of a free and open market and protects investors and the 
public interest because it provides additional specificity, clarity and 
transparency.

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

    The Exchange believes its proposed rule change would not impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. To the contrary, the Exchange 
believes the proposal would enhance competition because including all 
of the exchanges enhances transparency and enables investors to better 
assess the quality of the Exchange's execution and routing services.

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 unsolicited written comments from Members or other interested 
parties.

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 \9\ and 
paragraph (f)(6) of Rule 19b-4 thereunder,\10\ 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4.
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    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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BatsEDGA-2016-16 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-BatsEDGA-2016-16. 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-BatsEDGA-2016-16 and should 
be submitted on or before August 9, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2016-16970 Filed 7-18-16; 8:45 am]
 BILLING CODE 8011-01-P
46984 Federal Register / Vol. 81, No. 138 / Tuesday, July 19, 2016 / Notices

III. Date of Effectiveness of the rules/sro.shtml). Copies of the Commission is publishing this notice to
Proposed Rule Change and Timing for submission, all subsequent solicit comments on the proposed rule
Commission Action amendments, all written statements change from interested persons.
Because the foregoing proposed rule with respect to the proposed rule
I. Self-Regulatory Organization’s
change does not: (i) Significantly affect change that are filed with the
Statement of the Terms of Substance of
the protection of investors or the public Commission, and all written
the Proposed Rule Change
interest; (ii) impose any significant communications relating to the
proposed rule change between the The Exchange filed a proposal to
burden on competition; and (iii) become update Rule 13.4(a) regarding the public
operative for 30 days from the date on Commission and any person, other than
those that may be withheld from the disclosure of the sources of data that the
which it was filed, or such shorter time Exchange utilizes when performing: (i)
as the Commission may designate, it has public in accordance with the
provisions of 5 U.S.C. 552, will be Order handling; (ii) order routing; and
become effective pursuant to Section (iii) related compliance processes to
19(b)(3)(A)(iii) of the Act 41 and available for Web site viewing and
printing in the Commission’s Public reflect the operation of the Investors
subparagraph (f)(6) of Rule 19b–4 Exchange LLC (‘‘IEX’’) as a registered
Reference Room, 100 F Street NE.,
thereunder.42 national securities exchange 3 beginning
At any time within 60 days of the Washington, DC 20549, on official
business days between the hours of on August 19, 2016.4
filing of the proposed rule change, the The text of the proposed rule change
Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for is available at the Exchange’s Web site
temporarily suspend such rule change if at www.batstrading.com, at the
it appears to the Commission that such inspection and copying at the principal
office of the Exchange. All comments principal office of the Exchange, and at
action is: (i) Necessary or appropriate in the Commission’s Public Reference
received will be posted without change;
the public interest; (ii) for the protection Room.
the Commission does not edit personal
of investors; or (iii) otherwise in
identifying information from II. Self-Regulatory Organization’s
furtherance of the purposes of the Act.
submissions. You should submit only Statement of the Purpose of, and
If the Commission takes such action, the
information that you wish to make Statutory Basis for, the Proposed Rule
Commission shall institute proceedings
available publicly. All submissions Change
to determine whether the proposed rule
should refer to File Number SR–Phlx–
should be approved or disapproved. In its filing with the Commission, the
2016–73, and should be submitted on or
IV. Solicitation of Comments before August 9, 2016. Exchange included statements
concerning the purpose of and basis for
Interested persons are invited to For the Commission, by the Division of
the proposed rule change and discussed
submit written data, views, and Trading and Markets, pursuant to delegated
authority.43 any comments it received on the
arguments concerning the foregoing, proposed rule change. The text of these
including whether the proposed rule Jill M. Peterson,
Assistant Secretary.
statements may be examined at the
change is consistent with the Act. places specified in Item IV below. The
Comments may be submitted by any of [FR Doc. 2016–16973 Filed 7–18–16; 8:45 am]
Exchange has prepared summaries, set
the following methods: BILLING CODE 8011–01–P
forth in Sections A, B, and C below, of
Electronic Comments the most significant parts of such
• Use the Commission’s Internet SECURITIES AND EXCHANGE statements.
comment form (http://www.sec.gov/ COMMISSION A. Self-Regulatory Organization’s
rules/sro.shtml); or Statement of the Purpose of, and
[Release No. 34–78314; File No. SR–
• Send an email to rule-comments@ BatsEDGA–2016–16] Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Change
Phlx–2016–73 on the subject line. Self-Regulatory Organizations; Bats 1. Purpose
Paper Comments EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a On June 17, 2016, the Commission
• Send paper comments in triplicate Proposed Rule Change to EDGA Rule approved IEX’s application to register as
to Secretary, Securities and Exchange 13.4(a), Stating It Will Utilize IEX Market a national securities exchange.5 As part
Commission, 100 F Street NE., Data From the CQS/UQDF for of its transition to exchange status, IEX
Washington, DC 20549–1090. Purposes of Order Handling, Routing, announced that it will commence a
All submissions should refer to File and Related Compliance Processes symbol-by-symbol roll-out on August
Number SR–Phlx–2016–73. This file 19, 2016, concluding on September 2,
number should be included on the July 13, 2016. 2016.6 The Exchange, therefore,
subject line if email is used. To help the Pursuant to Section 19(b)(1) of the proposes to update Rule 13.4(a)
Commission process and review your Securities Exchange Act of 1934 (the regarding the public disclosure of the
comments more efficiently, please use ‘‘Act’’),1 and Rule 19b–4 thereunder,2 sources of data that the Exchange
only one method. The Commission will notice is hereby given that on July 5, utilizes when performing: (i) Order
post all comments on the Commission’s 2016, Bats EDGA Exchange, Inc. (the handling; (ii) order routing; and (iii)
Internet Web site (http://www.sec.gov/ ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission 3 See Securities Exchange Act Release No. 78101
mstockstill on DSK3G9T082PROD with NOTICES

41 15 U.S.C. 78s(b)(3)(a)(iii). (‘‘Commission’’) the proposed rule (June 17, 2016), 81 FR 41141 (June 23, 2016) (‘‘IEX
42 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– change as described in Items I, II, and Approval Order’’).
4 See Letter from Brad Katsuyama, CEO, IEX, to
4(f)(6) requires a self-regulatory organization to give III below, which Items have been
the Commission written notice of its intent to file IEX’s Sell-Side and Buy-Side Partners, dated June
prepared by the Exchange. The 17, 2016 (https://www.iextrading.com/) (stating that
the proposed rule change at least five business days
prior to the date of filing of the proposed rule IEX will commence a symbol-by-symbol roll-out on
43 17 CFR 200.30–3(a)(12). August 19, 2016, concluding on September 2, 2016).
change, or such shorter time as designated by the
1 15 U.S.C. 78s(b)(1). 5 See supra note 3.
Commission. The Exchange has satisfied this
requirement. 2 17 CFR 240.19b–4. 6 See supra note 4.

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Federal Register / Vol. 81, No. 138 / Tuesday, July 19, 2016 / Notices 46985

related compliance processes to reflect C. Self-Regulatory Organization’s Paper Comments
the operation of IEX as a registered Statement on Comments on the
national securities exchange beginning Proposed Rule Change Received From • Send paper comments in triplicate
on August 19, 2016. Specifically, the Members, Participants or Others to Secretary, Securities and Exchange
Exchange proposes to amend Rule 13.4 Commission, 100 F Street NE.,
The Exchange has not solicited, and
(a) to include IEX by stating it will Washington, DC 20549–1090.
does not intend to solicit, comments on
utilize IEX market data from the CQS/ this proposed rule change. The All submissions should refer to File
UQDF for purposes of order handling, Exchange has not received any Number SR–BatsEDGA–2016–16. This
routing, and related compliance unsolicited written comments from file number should be included on the
processes. Members or other interested parties. subject line if email is used. To help the
2. Statutory Basis III. Date of Effectiveness of the Commission process and review your
Proposed Rule Change and Timing for comments more efficiently, please use
The Exchange believes that the Commission Action only one method. The Commission will
proposed rule change is consistent with Because the foregoing proposed rule post all comments on the Commission’s
Section 6(b) of the Act,7 in general, and change does not: (A) Significantly affect Internet Web site (http://www.sec.gov/
furthers the objectives of Section 6(b)(5) the protection of investors or the public rules/sro.shtml). Copies of the
of the Act,8 in particular, in that it is interest; (B) impose any significant submission, all subsequent
designed to prevent fraudulent and burden on competition; and (C) by its amendments, all written statements
manipulative acts and practices, to terms, become operative for 30 days with respect to the proposed rule
promote just and equitable principles of from the date on which it was filed or change that are filed with the
trade, to foster cooperation and such shorter time as the Commission Commission, and all written
coordination with persons engaged in may designate it has become effective communications relating to the
regulating, clearing, settling, processing pursuant to Section 19(b)(3)(A) of the proposed rule change between the
information with respect to, and Act 9 and paragraph (f)(6) of Rule 19b– Commission and any person, other than
facilitating transactions in securities, to 4 thereunder,10 the Exchange has those that may be withheld from the
remove impediments to and perfect the designated this rule filing as non- public in accordance with the
mechanism of a free and open market controversial. The Exchange has given provisions of 5 U.S.C. 552, will be
and a national market system, and, in the Commission written notice of its available for Web site viewing and
general, to protect investors and the intent to file the proposed rule change, printing in the Commission’s Public
public interest. along with a brief description and text Reference Room, 100 F Street NE.,
of the proposed rule change at least five Washington, DC 20549, on official
The Exchange believes that its business days prior to the date of filing
proposal to update Exchange Rule business days between the hours of
of the proposed rule change, or such
13.4(a) to include IEX will ensure that 10:00 a.m. and 3:00 p.m. Copies of such
shorter time as designated by the
the rule correctly identifies and publicly filing will also be available for
Commission.
states on a market-by-market basis all of At any time within 60 days of the inspection and copying at the principal
the specific network processor and filing of the proposed rule change, the office of the Exchange. All comments
proprietary data feeds that the Exchange Commission summarily may received will be posted without change;
utilizes for the handling, routing, and temporarily suspend such rule change if the Commission does not edit personal
execution of orders, and for performing it appears to the Commission that such identifying information from
the regulatory compliance checks action is: (1) Necessary or appropriate in submissions. You should submit only
related to each of those functions. The the public interest; (2) for the protection information that you wish to make
proposed rule change also removes of investors; or (3) otherwise in available publicly. All submissions
impediments to and perfects the furtherance of the purposes of the Act. should refer to File Number SR–
mechanism of a free and open market If the Commission takes such action, the BatsEDGA–2016–16 and should be
and protects investors and the public Commission shall institute proceedings submitted on or before August 9, 2016.
interest because it provides additional to determine whether the proposed rule For the Commission, by the Division of
should be approved or disapproved.
specificity, clarity and transparency. Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.11
B. Self-Regulatory Organization’s
Interested persons are invited to Jill M. Peterson,
Statement on Burden on Competition
submit written data, views, and Assistant Secretary.
The Exchange believes its proposed arguments concerning the foregoing, [FR Doc. 2016–16970 Filed 7–18–16; 8:45 am]
rule change would not impose any including whether the proposed rule BILLING CODE 8011–01–P
burden on competition that is not change is consistent with the Act.
necessary or appropriate in furtherance Comments may be submitted by any of
of the purposes of the Act. To the the following methods:
contrary, the Exchange believes the Electronic Comments
proposal would enhance competition
• Use the Commission’s Internet
because including all of the exchanges
mstockstill on DSK3G9T082PROD with NOTICES

comment form (http://www.sec.gov/
enhances transparency and enables
rules/sro.shtml); or
investors to better assess the quality of • Send an email to rule-comments@
the Exchange’s execution and routing sec.gov. Please include File Number SR–
services. BatsEDGA–2016–16 on the subject line.
7 15 U.S.C. 78f. 9 15 U.S.C. 78s(b)(3)(A).
8 15 U.S.C. 78f(b)(5). 10 17 CFR 240.19b–4. 11 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 19:39 Jul 18, 2016 Jkt 238001 PO 00000 Frm 00100 Fmt 4703 Sfmt 9990 E:\FR\FM\19JYN1.SGM 19JYN1
Document Created: 2016-07-19 01:10:46
Document Modified: 2016-07-19 01:10:46
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 46984