81 FR 51951 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt an Options Regulatory Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 151 (August 5, 2016)
Federal Register Volume 81, Issue 151 (August 5, 2016)
| Page Range | 51951-51954 | |
| FR Document | 2016-18570 |
[Federal Register Volume 81, Number 151 (Friday, August 5, 2016)] [Notices] [Pages 51951-51954] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-18570] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78452; File No. SR-BatsEDGX-2016-33] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt an Options Regulatory Fee August 1, 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 20, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (the ``Commission'') the proposed rule [[Page 51952]] change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. 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. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to EDGX Rules 15.1(a) and (c). --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to modify the fee schedule applicable to the Exchange's options platform (``EDGX Options'') to adopt an ORF in the amount of $0.0002 per contract side. The per-contract ORF will be assessed by the Exchange to each Member and non-Member for all options transactions cleared by OCC in the ``customer'' range, regardless of the exchange on which the transaction occurs. The ORF will be collected indirectly from Members and non-Members through their clearing firms by OCC on behalf of the Exchange. The ORF will be collected indirectly from Members and non-Members through their clearing firms by OCC on behalf of EDGX Options. The Exchange believes it is appropriate to charge the ORF to transactions by Members and non-Members that clear as customer at the OCC, irrespective of where the transactions takes place. Many of the Exchange's surveillance programs for customer trading activity require the Exchange to look at activity across all options markets, such as surveillances for position limit violations, manipulation, insider trading, front-running and contrary exercise advice violations/expiring exercise declarations. Accordingly, there is a strong nexus between the ORF and the Exchange's regulatory activities with respect to its Members', as well as non-Members', customer trading activity. These activities span across multiple exchanges. In addition to its own surveillance programs, the Exchange works with other SROs and exchanges on intermarket surveillance related issues. Through its participation in the Intermarket Surveillance Group (``ISG''),\6\ the Exchange shares information and coordinates inquiries and investigations with other exchanges designed to address potential intermarket manipulation and trading abuses. Also, the Exchange and the other options exchanges are required to populate a consolidated options audit trail (``COATS'') \7\ system in order to surveil trading activities across markets. --------------------------------------------------------------------------- \6\ ISG is an industry organization formed in 1983 to coordinate intermarket surveillance among the SROs by co-operatively sharing regulatory information pursuant to a written agreement between the parties. The goal of the ISG's information sharing is to coordinate regulatory efforts to address potential intermarket trading abuses and manipulations. \7\ COATS effectively enhances intermarket options surveillance by enabling the options exchanges to reconstruct the market promptly to effectively surveil certain rules. --------------------------------------------------------------------------- The Exchange proposes to assess ORF monthly based on information received from the OCC regarding transactions that cleared in the customer range. Notably, the Exchange believes that this will help to alleviate confusion or even potential double-billing of customer transactions. In particular, by billing all customer transactions on a monthly basis the Exchange will be able to capture transactions that may have been executed on the Exchange that were submitted for clearing by a Member but then ``flipped'' to the account of a non-Member. Thus, the Exchange believes that charging the ORF to Members and non-Members across all markets will avoid having non-Members clear their trades through non-Members in order to avoid the fee and to thereby avoid paying for their fair share for regulation. If the ORF did not apply to activity across markets then a Member or non-Member would send their orders to the least cost, least regulated exchange. In addition, applying the fee to all Members' and non-Members' activity across all market will avoid options participants from terminating their membership status on or not becoming a Members of certain exchanges simply to avoid being assessed ORF. As discussed above, the ORF is designed to recover a material portion of the costs to the Exchange of the supervision and regulation of Members' and non-Member's customer options business, including performing routine surveillances and investigations, as well as policy, rulemaking, interpretive and enforcement activities. The Exchange believes that revenue generated from the ORF, when combined with all of the Exchange's other regulatory fees and fines, will cover a material portion, but not all, of the Exchange's regulatory costs.\8\ --------------------------------------------------------------------------- \8\ The Exchange notes that its regulatory responsibilities with respect to compliance with options sales practice rules has been allocated to the Financial Industry Regulatory Authority, Inc. (``FINRA'') under a 17d-2 Agreement. The ORF is not designed to cover the cost of options sales practice regulation. --------------------------------------------------------------------------- The Exchange will monitor the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed the Exchange's total regulatory costs. The Exchange expects to monitor its regulatory costs and revenues at a minimum on a semi-annual basis. If the Exchange determines regulatory revenues exceed or are insufficient to cover a material portion of its regulatory costs, the Exchange will adjust the ORF by submitting a fee change filing to the Commission. The Exchange will notify Members and non-Members of adjustments to the ORF at least 30 calendar days prior to the effective date of the change.\9\ --------------------------------------------------------------------------- \9\ The Exchange announced its intent to charge an ORF on June 30, 2016. See Bats Options Exchange Regulatory Fee Schedule Update Effective August 1, 2016 available at: http://cdn.batstrading.com/resources/fee_schedule/2016/Bats-Options-Exchange-Regulatory-Fee-Schedule-Update-Effective-August-1-2016.pdf. The semi-annual review and notice provisions are similar to those adopted by NYSE Arca, Inc. (``NYSE Arca''). See Securities Exchange Act Release No. 70500 (September 25, 2013), 78 FR 60361 (October 1, 2013) (SR-NYSEArca- 2013-91). --------------------------------------------------------------------------- [[Page 51953]] The Exchange notes that there is established precedent for an SRO charging a fee across markets, namely, FINRAs Trading Activity Fee \10\ and the BZX, MIAX, NYSE Amex, NYSE Arca, CBOE, PHLX, ISE and BOX ORFs. While the Exchange does not have all of the same regulatory responsibilities as FINRA, the Exchange believes that, like other exchanges that have adopted an ORF, its broad regulatory responsibilities with respect to a Member's and non-Members' activities, irrespective of where their transactions take place, support a regulatory fee applicable to transactions on other markets. Unlike FINRA's Trading Activity Fee, the ORF would apply only to a Member's and non-Member's customer options transactions. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 47946 (May 30, 2003), 68 FR 3402 (June 6, 2003). --------------------------------------------------------------------------- Implementation Date The Exchange proposes to implement the ORF on August 1, 2016. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of section 6 of the Act.\11\ Specifically, the Exchange believes that the proposed rule change is consistent with section 6(b)(4) of the Act,\12\ in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and other persons using any facility or system which the Exchange operates or controls. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues or providers of routing services if they deem fee levels to be excessive. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes the ORF is equitable and not unfairly discriminatory because it would be objectively allocated to Members and non-Members in that it would be charged to all Members and non-Members on all their transactions that clear as customer transactions at the OCC. Moreover, the Exchange believes the ORF ensures fairness by assessing fees to those Members and non-Members that are directly based on the amount of customer options business they conduct. Regulating customer trading activity is much more labor intensive and requires greater expenditure of human and technical resources than regulating non-customer trading activity, which tends to be more automated and less labor-intensive. As a result, the costs associated with administering the customer component of the Exchange's overall regulatory program are materially higher than the costs associated with administering the non-customer component (e.g., Member proprietary transactions) of its regulatory program. In addition, the Exchange believes the amount of the ORF is reasonable as it is significantly lower than ORFs charged by other exchanges. By way of comparison, MIAX charges an ORF of $0.0045 per contract side,\13\ and both NYSE Arca and NYSE Amex charge an ORF of $0.0055 per contract side.\14\ The CBOE charges an ORF of $0.0081 per contract.\15\ --------------------------------------------------------------------------- \13\ See MIAX fee schedule available at http://www.miaxoptions.com/sites/default/files/MIAX_Options_Fee_Schedule_06012016.pdf (date May 1, 2016). \14\ See NYSE Arca Options fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (dated June 6, 2016); and NYSE Amex fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf (dated June 9, 2016). \15\ See CBOE fee schedule available at http://www.cboe.com/framed/pdfframed.aspx?content=/publish/feeschedule/CBOEFeeSchedule.pdf§ion=SEC_RESOURCES&title=CBOE%20Fee%20Schedule (dated May 16, 2016). --------------------------------------------------------------------------- The Exchange believes applying the ORF to transactions executed or cleared by non-Members is equitable and not unfairly discriminatory because it should avoid having transactions cleared through non-Members in order to avoid the fee and to thereby avoid paying for their fair share for regulation.\16\ If the ORF did not apply to activity across markets then a non-Member would send their orders to the least cost, least regulated exchange. In addition, applying the fee to all Members' and non-Members' activity across all market will avoid options participants from terminating their membership status on or not becoming a Members of certain exchanges simply to avoid being assessed ORF. Moreover, the Exchange believes the ORF ensures fairness by assessing fees to those Members and non-Members that are directly based on the amount of customer options business they conduct. --------------------------------------------------------------------------- \16\ Despite rule text to the contrary, the Exchange believes based on conversations with market participants that other options exchanges currently charge an ORF on all options transactions cleared by the OCC in the customer range regardless of whether they are executed or cleared by their member. --------------------------------------------------------------------------- The Exchange also believes it is reasonable and appropriate for the Exchange to charge the ORF for options transactions by a non-Member regardless of the exchange on which the transactions occur. The Exchange has a statutory obligation to enforce compliance by Members and their associated persons under the Act and the rules of the Exchange and cannot effectively surveil for manipulative conduct by market participants (including non-Members) trading on the Exchange without looking at and evaluating activity across all options markets. Many of the Exchange's market surveillance programs require the Exchange to look at and evaluate activity across all options markets, such as surveillance for position limit violations, manipulation, front-running and contrary exercise advice violations/expiring exercise declarations. The ORF is designed to recover a material portion of the costs of supervising and regulating Members' and non-Members' customer options business including performing routine surveillances, investigations, examinations, financial monitoring, and policy, rulemaking, interpretive, and enforcement activities. The Exchange will monitor, on at least a semi-annual basis the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed the Exchange's total regulatory costs. If the Exchange determines regulatory revenues exceed or are insufficient to cover a material portion of its regulatory costs, the Exchange will adjust the ORF by submitting a fee change filing to the Commission. The Exchange will notify Members and non-Members of adjustments to the ORF via regulatory circular. The Exchange has designed the ORF to generate revenues that, when combined with all of the Exchange's other regulatory fees, will be less than or equal to the Exchange's regulatory costs, which is consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business side. In this regard, the Exchange believes that the initial level of the fee is reasonable. 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. The ORF is not intended to have any impact on competition. Rather, it is designed to [[Page 51954]] enable the Exchange to recover a material portion of the Exchange's cost related to its regulatory activities. The proposed ORF is also comparable to, and in most instances less than, ORF fees charged by other options exchanges. Further, the expansion of ORF to non-Members is also not designed to have an impact on competition as the Exchange believes based on conversations from market participants that it is consistent with the practice by other exchanges in applying ORF to non- Member transactions, despite rule text to the contrary. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to section 19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 thereunder.\18\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsEDGX-2016-33 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 No. SR-BatsEDGX-2016-33. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsEDGX-2016-33, and should be submitted on or before August 26, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-18570 Filed 8-4-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices 51951
associated tasks, which appear in the necessary or appropriate in furtherance subject line if email is used. To help the
revised content outline, reflect the day- of the purposes of the Act. The updated Commission process and review your
to-day activities of a General Securities examination aligns with the functions comments more efficiently, please use
Sales Supervisor. CBOE is also and associated tasks currently only one method. The Commission will
proposing to adopt the changes made by performed by a General Securities Sales post all comments on the Commission’s
FINRA to the format of the content Supervisor and tests knowledge of the Internet Web site (http://www.sec.gov/
outline, including the preface, sample most current laws, rules, regulations rules/sro.shtml). Copies of the
questions and reference materials. and skills relevant to those functions submission, all subsequent
FINRA also adjusted the number of and associated tasks. As such, the amendments, all written statements
examination questions assigned to each proposed revisions would make the with respect to the proposed rule
major job function to ensure that the examination more efficient and change that are filed with the
overall examination better reflects the effective. Commission, and all written
key tasks performed by a General communications relating to the
Securities Sales Supervisor. The C. Self-Regulatory Organization’s proposed rule change between the
questions on the revised Series 9/10 Statement on Comments on the Commission and any person, other than
examination will place greater emphasis Proposed Rule Change Received From those that may be withheld from the
on key tasks such as supervision of Members, Participants, or Others public in accordance with the
registered persons, sales practices and Written comments were neither provisions of 5 U.S.C. 552, will be
compliance. CBOE is proposing to adopt solicited nor received. available for Web site viewing and
these revisions related to the Series 9/ printing in the Commission’s Public
III. Date of Effectiveness of the
10 examination questions. Reference Room, 100 F Street NE.,
Proposed Rule Change and Timing for Washington, DC 20549 on official
Finally, CBOE is proposing to adopt
Commission Action business days between the hours of
the changes made by FINRA to the
Series 9/10 selection specifications and The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
question bank. effective pursuant to Section 19(b)(3)(A) filing also will be available for
of the Act 15 and paragraph (f)(1) of Rule inspection and copying at the principal
Availability of Content Outline 19b–4 thereunder.16 At any time within office of the Exchange. All comments
The revised Series 9/10 content 60 days of the filing of the proposed rule received will be posted without change;
outline is available on FINRA’s Web change, the Commission summarily may the Commission does not edit personal
site, at www.finra.org/ temporarily suspend such rule change if identifying information from
brokerqualifications/exams. it appears to the Commission that such submissions. You should submit only
CBOE is filing the proposed rule action is necessary or appropriate in the information that you wish to make
change for immediate effectiveness. public interest, for the protection of available publicly. All submissions
CBOE will announce the proposed rule investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
change in a Regulatory Circular. the purposes of the Act. If the 2016–051 and should be submitted on
Commission takes such action, the or before August 26, 2016.
2. Statutory Basis
Commission will institute proceedings For the Commission, by the Division of
CBOE believes that the proposed to determine whether the proposed rule Trading and Markets, pursuant to delegated
revisions to the Series 9/10 examination change should be approved or authority.17
program are consistent with the disapproved. Robert W. Errett,
provisions of Section 6(b)(5) of the Deputy Secretary.
Act,13 which requires, among other IV. Solicitation of Comments
[FR Doc. 2016–18568 Filed 8–4–16; 8:45 am]
things, that CBOE rules must be Interested persons are invited to
BILLING CODE 8011–01–P
designed to prevent fraudulent and submit written data, views, and
manipulative acts and practices, to arguments concerning the foregoing,
promote just and equitable principles of including whether the proposed rule SECURITIES AND EXCHANGE
trade, and, in general, to protect change is consistent with the Act. COMMISSION
investors and the public interest, and Comments may be submitted by any of
Section 6(c)(3) of the Act,14 which the following methods: [Release No. 34–78452; File No. SR–
authorizes CBOE to prescribe standards BatsEDGX–2016–33]
Electronic Comments
of training, experience, and competence Self-Regulatory Organizations; Bats
for persons associated with CBOE TPHs. • Use the Commission’s Internet
EDGX Exchange, Inc.; Notice of Filing
CBOE believes that the proposed comment form (http://www.sec.gov/
and Immediate Effectiveness of a
revisions will further these purposes by rules/sro.shtml); or
• Send an email to rule-comments@ Proposed Rule Change To Adopt an
updating the examination program to Options Regulatory Fee
reflect changes to the laws, rules and sec.gov. Please include File Number SR–
regulations covered by the examination CBOE–2016–051 on the subject line. August 1, 2016.
and to incorporate the functions and Paper Comments Pursuant to section 19(b)(1) of the
associated tasks currently performed by Securities Exchange Act of 1934 (the
a General Securities Sales Supervisor. • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
to Brent J. Fields, Secretary, Securities notice is hereby given that on July 20,
B. Self-Regulatory Organization’s and Exchange Commission, 100 F Street
mstockstill on DSK3G9T082PROD with NOTICES
2016, Bats EDGX Exchange, Inc. (the
Statement on Burden on Competition NE., Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
CBOE does not believe that the All submissions should refer to File Securities and Exchange Commission
proposed rule change will result in any Number SR–CBOE–2016–051. This file (the ‘‘Commission’’) the proposed rule
burden on competition that is not number should be included on the
17 17 CFR 200.30–3(a)(12).
13 15 U.S.C. 78f(b)(5). 15 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
14 15 U.S.C. 78f(c)(3). 16 17 CFR 240.19b–4(f)(1). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 17:42 Aug 04, 2016 Jkt 238001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\05AUN1.SGM 05AUN1](https://thefederalregister.org/doc/81_FR_52102/page/1.svg)
![51954 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices
enable the Exchange to recover a All submissions should refer to File No. ‘‘Exchange’’ or ‘‘BZX’’) filed with the
material portion of the Exchange’s cost SR–BatsEDGX–2016–33. This file Securities and Exchange Commission
related to its regulatory activities. The number should be included on the (the ‘‘Commission’’) the proposed rule
proposed ORF is also comparable to, subject line if email is used. To help the change as described in Items I, II, and
and in most instances less than, ORF Commission process and review your III below, which Items have been
fees charged by other options comments more efficiently, please use prepared by the Exchange. The
exchanges. Further, the expansion of only one method. The Commission will Exchange has designated the proposed
ORF to non-Members is also not post all comments on the Commission’s rule change as one establishing or
designed to have an impact on Internet Web site (http://www.sec.gov/ changing a member due, fee, or other
competition as the Exchange believes rules/sro.shtml). Copies of the charge imposed by the Exchange under
based on conversations from market submission, all subsequent section 19(b)(3)(A)(ii) of the Act 3 and
participants that it is consistent with the amendments, all written statements Rule 19b–4(f)(2) thereunder,4 which
practice by other exchanges in applying with respect to the proposed rule renders the proposed rule change
ORF to non-Member transactions, change that are filed with the effective upon filing with the
despite rule text to the contrary. Commission, and all written Commission. The Commission is
communications relating to the publishing this notice to solicit
C. Self-Regulatory Organization’s proposed rule change between the comments on the proposed rule change
Statement on Comments on the Commission and any person, other than from interested persons.
Proposed Rule Change Received From those that may be withheld from the
Members, Participants, or Others public in accordance with the I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of
The Exchange has not solicited, and
available for Web site viewing and the Proposed Rule Change
does not intend to solicit, comments on
this proposed rule change. The printing in the Commission’s Public The Exchange filed a proposal to
Exchange has not received any written Reference Room, 100 F Street NE., amend the fee schedule applicable to
comments from members or other Washington, DC 20549, on official Members 5 and non-members of the
interested parties. business days between the hours of Exchange pursuant to BZX Rules 15.1(a)
10:00 a.m. and 3:00 p.m. Copies of the and (c).
III. Date of Effectiveness of the filing also will be available for The text of the proposed rule change
Proposed Rule Change and Timing for inspection and copying at the principal is available at the Exchange’s Web site
Commission Action office of the Exchange. All comments at www.batstrading.com, at the
The foregoing rule change has become received will be posted without change; principal office of the Exchange, and at
effective pursuant to section 19(b)(3)(A) the Commission does not edit personal the Commission’s Public Reference
of the Act 17 and paragraph (f) of Rule identifying information from Room.
19b–4 thereunder.18 At any time within submissions. You should submit only
information that you wish to make II. Self-Regulatory Organization’s
60 days of the filing of the proposed rule Statement of the Purpose of, and
change, the Commission summarily may available publicly. All submissions
should refer to File No. SR–BatsEDGX– Statutory Basis for, the Proposed Rule
temporarily suspend such rule change if Change
it appears to the Commission that such 2016–33, and should be submitted on or
action is necessary or appropriate in the before August 26, 2016. In its filing with the Commission, the
public interest, for the protection of For the Commission, by the Division of Exchange included statements
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated concerning the purpose of and basis for
the purposes of the Act. authority.19 the proposed rule change and discussed
Robert W. Errett, any comments it received on the
IV. Solicitation of Comments Deputy Secretary. proposed rule change. The text of these
Interested persons are invited to [FR Doc. 2016–18570 Filed 8–4–16; 8:45 am] statements may be examined at the
submit written data, views, and BILLING CODE 8011–01–P
places specified in Item IV below. The
arguments concerning the foregoing, Exchange has prepared summaries, set
including whether the proposed rule forth in sections A, B, and C below, of
change is consistent with the Act. SECURITIES AND EXCHANGE the most significant parts of such
Comments may be submitted by any of COMMISSION statements.
the following methods: [Release No. 34–78453; File No. SR– A. Self-Regulatory Organization’s
Electronic Comments BatsBZX–2016–42] Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet Self-Regulatory Organizations; Bats Change
comment form (http://www.sec.gov/ BZX Exchange, Inc.; Notice of Filing
rules/sro.shtml); or and Immediate Effectiveness of a 1. Purpose
• Send an email to rule-comments@ Proposed Rule Change To Amend the The Exchange proposes to modify the
sec.gov. Please include File No. SR– Options Regulatory Fee fee schedule applicable to the
BatsEDGX–2016–33 on the subject line. August 1, 2016. Exchange’s options platform (‘‘BZX
Pursuant to section 19(b)(1) of the Options’’) to amend the rate of its ORF
Paper Comments as well as to expand its application to
mstockstill on DSK3G9T082PROD with NOTICES
Securities Exchange Act of 1934 (the
• Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 non-Members. Currently, the Exchange
to Secretary, Securities and Exchange notice is hereby given that on July 20, 3 15 U.S.C. 78s(b)(3)(A)(ii).
Commission, 100 F Street NE., 2016, Bats BZX Exchange, Inc. (the 4 17 CFR 240.19b–4(f)(2).
Washington, DC 20549–1090. 5 The term ‘‘Member’’ is defined as ‘‘any
19 17 CFR 200.30–3(a)(12). registered broker or dealer that has been admitted
17 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). to membership in the Exchange.’’ See Exchange
18 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. Rule 1.5(n).
VerDate Sep<11>2014 17:42 Aug 04, 2016 Jkt 238001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 E:\FR\FM\05AUN1.SGM 05AUN1](https://thefederalregister.org/doc/81_FR_52102/page/4.svg)
Document Created: 2016-08-05 06:43:49
Document Modified: 2016-08-05 06:43:49
| 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 51951 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR