81_FR_54291 81 FR 54134 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of the Exchange's Options Platform

81 FR 54134 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of the Exchange's Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 157 (August 15, 2016)

Page Range54134-54137
FR Document2016-19320

Federal Register, Volume 81 Issue 157 (Monday, August 15, 2016)
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)]
[Notices]
[Pages 54134-54137]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19320]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78517; File No. SR-BatsBZX-2016-44]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of the Exchange's Options Platform

August 9, 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 29, 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 
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).
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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 amend the fee schedule applicable 
to Members \5\ and non-Members of the Exchange pursuant to BZX 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify its fee schedule applicable to the 
Exchange's options platform (``BZX Options'') to: (i) Increase the fee 
for orders that yield fee code NP, which is appended Non-Customer \6\ 
orders in Non-Penny Pilot Securities; \7\ (ii) add three new tiers 
under new footnote 13 entitled, ``Non-Customer Non-Penny Pilot Take 
Volume Tier''; (iii) eliminate Tier 4 from footnote 5, Quoting 
Incentive Program (``QIP'') Tier; and (iv) modify the billing policy 
for the logical port fees.
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    \6\ As defined in the Exchange's fee schedule available at 
http://www.batsoptions.com/support/fee_schedule/bzx/.
    \7\ Id.
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Fee Code NP
    Fee code NP is appended to Non-Customer orders that remove 
liquidity in Non-Penny Pilot Securities on the Exchange. Orders that 
yield fee code NP currently incur a fee of $0.99 per contract. The 
Exchange is proposing to increase this fee to $1.07 per contract, which 
as explained below, is commensurate with industry standards.

[[Page 54135]]

In conjunction with this change, the Exchange also proposes to update 
the Standard Rate table.
Non-Customer Non-Penny Pilot Take Volume Tier
    The Exchange proposes to add three tiers under new footnote 13 
entitled, ``Non-Customer Non-Penny Pilot Take Volume Tier''. Under the 
proposed new tiers, orders that yield fee code NP would receive a 
discounted rate from the proposed $1.07 fee discussed above. The 
Exchange proposes to add three Non-Customer Non-Penny Pilot Take Volume 
Tiers, as set forth below.
     Tier 1, would provide a discounted rate of $1.02 in orders 
where: the (1) Member has an ADAV \8\ in Customer \9\ orders equal to 
or greater than 0.60% of average TCV \10\; (2) Member has an ADAV in 
Market Maker \11\ orders equal to or greater than 0.30% of average TCV; 
and (3) Member has on Exchange's equity platform (``BZX Equities'') an 
ADAV \12\ equal to or greater than 0.30% of average TCV.
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    \8\ Id.
    \9\ Id.
    \10\ Id.
    \11\ As defined in the Exchange's fee schedule available at 
http://www.batsoptions.com/support/fee_schedule/bzx/.
    \12\ As defined in the BZX Equities' fee schedule available at 
http://batstrading.com/support/fee_schedule/bzx/.
---------------------------------------------------------------------------

     Tier 2, would provide a discounted rate of $1.02 in orders 
where a Member has an ADAV in Customer orders equal to or greater than 
1.00% of average TCV.
     Tier 3, would provide a discounted rate of $1.01 in orders 
where a Member has an ADAV in Customer orders equal to or greater than 
1.30% of average TCV.
    The Exchange notes that the criteria necessary to achieve the 
discounted rate under Tiers 1, 2, and 3 proposed above mirrors the 
criteria required by the existing Non-Customer Penny Pilot Take Volume 
Tiers under footnote 3 of the Exchange's fee schedule. In conjunction 
with the addition of footnote 13, the Exchange also proposes to append 
footnote 13 to fee code NP within the Fee Codes and Associate Fees 
table and update the Standard Rates table.
Quoting Incentive Program (``QIP'') Tier
    The Exchange currently offers four QIP tiers which provide an 
additional rebate per contract for an order that adds liquidity to the 
BZX Options Book in options classes in which a Member is a Market Maker 
registered on BZX Options pursuant to Rule 22.2. The Market Maker must 
be registered with BZX Options in an average of 20% or more of the 
associated options series in a class in order to qualify for QIP 
rebates for that class. Under the QIP Tiers, a Market Maker receives an 
additional rebate ranging from $0.02 to $0.06 per contract where that 
Market Maker satisfies certain ADV \13\ thresholds. Under the highest 
tier, QIP Tier 4, a Market Maker receives an additional rebate of $0.06 
per contract where that Market Maker has an ADV equal to or greater 
than 3.5% of average TCV. The Exchange proposes to eliminate QIP Tier 4 
because the rebate has not achieved the desired effect, despite being 
designed to incentivize Market Markers to add liquidity to the BZX 
Options Book.
---------------------------------------------------------------------------

    \13\ As defined in the Exchange's fee schedule available at 
http://www.batsoptions.com/support/fee_schedule/bzx/.
---------------------------------------------------------------------------

Logical Port Fees
    A logical port represents a port established by the Exchange within 
the Exchange's system for trading and billing purposes. Each logical 
port established is specific to a Member or non-Member and grants that 
Member or non-Member the ability to operate a specific application, 
such as FIX order entry or PITCH data receipt. The Exchange's Multicast 
PITCH data feed is available from two primary feeds, identified as the 
``A feed'' and the ``C feed'', which contain the same information but 
differ only in the way such feeds are received. The Exchange also 
offers two redundant fees, identified as the ``B feed'' and the ``D 
feed.'' The Exchange also offers a bulk-quoting interface which allows 
Users \14\ of BZX Options to submit and update multiple bids and offers 
in one message through logical ports enabled for bulk-quoting. The 
bulk-quoting application for BZX Options is a particularly useful 
feature for Users that provide quotations in many different options.
---------------------------------------------------------------------------

    \14\ A User on BZX Options is either a member of BZX Options or 
a sponsored participant who is authorized to obtain access to the 
Exchange's system pursuant to BZX Rule 11.3. See Exchange Rule 
1.5(ee) [sic].
---------------------------------------------------------------------------

    The Exchange currently charges for logical ports (including 
Multicast PITCH Spin Server and GRP ports) $650 per port per month and 
$1,500 per month for ports with bulk quoting capabilities. Where a User 
subscribes to more than five ports with bulk quoting capabilities, the 
Exchange charges for each port in excess of five $2,000 per logical 
port per month for logical ports with bulk quoting capabilities. 
Logical port fees are limited to logical ports in the Exchange's 
primary data center and no logical port fees are assessed for redundant 
secondary data center ports. The Exchange assesses the monthly per 
logical port fees to all Member's and non-Member's logical ports.
    The Exchange proposes to clarify within its fee schedule how fees 
for logical ports may be pro-rated. As proposed, new requests will be 
pro-rated for the first month of service. Cancellation requests are 
billed in full month increments as firms are required to pay for the 
service for the remainder of the month, unless the session is 
terminated within the first month of service.
Implementation Date
    The Exchange proposes to implement these amendments to its fee 
schedule 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.\15\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\16\ 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 if they deem fee levels to be 
excessive.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Volume-based rebates such as those currently maintained on the 
Exchange have been widely adopted by equities and options exchanges and 
are equitable because they are open to all Members on an equal basis 
and provide additional benefits or discounts that are reasonably 
related to the value to an exchange's market quality associated with 
higher levels of market activity, such as higher levels of liquidity 
provision and/or growth patterns, and introduction of higher volumes of 
orders into the price and volume discovery processes.
Fee Code NP
    The Exchange believes that its proposal to change the standard fee 
charged for Customer orders that remove liquidity in Non-Customer Non-
Penny Pilot Securities from $0.99 to $1.07 per contract is reasonable, 
fair and equitable because, while the change marks an increase in fees 
for orders in Non-Penny Pilot Securities, such

[[Page 54136]]

proposed fees remain consistent with pricing previously offered by the 
Exchange as well as competitors of the Exchange and does not represent 
a significant departure from the Exchange's general pricing 
structure.\17\ Additionally, this pricing structure will allow the 
Exchange to earn additional revenue that can be used to offset the 
addition of new pricing incentives, including those introduced as part 
of this proposal. The proposed rate change is also not unfairly 
discriminatory because it will apply equally to all Members.
---------------------------------------------------------------------------

    \17\ NYSE Arca, Inc. (``NYSE Arca'') charges a fee of $1.08 to 
non-customer orders that remove liquidity in Non-Penny Pilot 
Securities. See NYSE Arca Options fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf. Similarly, the Nasdaq Stock 
Market LLC (``Nasdaq'') charges a fee of $1.10 to non-customer 
orders that remove liquidity in Non-Penny Pilot Securities. See 
Nasdaq Options fee schedule available at http://www.nasdaqtrader.com/Micro.aspx?id=optionsPricing.
---------------------------------------------------------------------------

Non-Customer Non-Penny Pilot Take Volume Tier
    The Exchange believes the volume-based discounted rates offered in 
the Non-Customer Non-Penny Pilot Take Volume Tiers are reasonable, 
fair, equitable and non-discriminatory for the reasons set forth above 
with respect to volume-based pricing generally, such changes will apply 
equally to all participants, and the change is intended to incentivize 
participants to further contribute to market quality on the Exchange. 
Moreover, the proposed changes will provide Members with an increased 
incentive to interact with orders in Non-Penny Pilot securities on the 
Exchange. The Exchange believes this will enhance market quality for 
all market participants and encourage increased participation of other 
orders wanting to interact with such Non-Customer Non-Penny Pilot 
orders, to further the benefit of all market participants.
    The Exchange also believes that the proposed new tiers remain 
consistent with pricing previously offered by the Exchange as well as 
competitors of the Exchange. The Exchange notes that the criteria 
required to achieve proposed Tiers 1, 2, and 3 mirror those required to 
achieve the Non-Customer Penny-Pilot Take Volume Tiers 1, 2, and 3 
under footnote 3 of the Exchange's fee schedule. Furthermore, the 
criteria required to achieve proposed Tier 1, 2, and 3 mirrors that 
required by the Customer Add Volume Tier 5, 4, and 6, respectively.
    The Exchange further believes that the criteria necessary to 
achieve Tier 1 of the Non-Customer Non-Penny Pilot Take Volume Tier is 
reasonable, fair, equitable and non-discriminatory because to the 
extent a Member participates on the Exchange but not on BZX Equities 
[sic] based on the overall benefit to the Exchange resulting from the 
success of BZX Equities. Such success allows the Exchange to continue 
to provide and potentially expand its existing incentive programs to 
the benefit of all participants on the Exchange, whether they 
participate on BZX Equities or not. The proposed pricing program is 
also fair and equitable in that membership in BZX Equities is available 
to all Members which would provide them with access to the benefits 
provided by the proposed tier, as described above, even where a Member 
of BZX Equities is not necessarily eligible for the proposed increased 
rebates on the Exchange.
QIP Tier
    The Exchange believes that its proposal to eliminate QIP Tier 4 
under footnote 5 represents an equitable allocation of reasonable dues, 
fees, and other charges among Members and other persons using its 
facilities. As described above, the additional rebates offered under 
this tier is not affecting Members' behavior in the manner originally 
conceived by the Exchange. Additionally, the Exchange currently 
provides three other QIP Tiers which offer additional rebates to 
qualifying Members adding liquidity. While the Exchange acknowledges 
the benefit of Members entering orders which add liquidity, the 
Exchange has determined that it is providing additional rebates for 
liquidity that would be added regardless of whether the tier existed. 
By providing this rebate, the Exchange is not only offering a rebate 
for orders that would add liquidity without being incentivized to do 
so, but also bypassing the opportunity to offer other rebates or 
reduced fees which could incentivize other behavior that would enhance 
market quality on the Exchange and benefit all Members. As such, the 
Exchange believes the proposed elimination of the QIP Tier 4 would be 
non-discriminatory in that it currently applies equally to all Members 
and, upon elimination, would no longer be available to any Members. 
Further, it will allow the Exchange to explore other ways in which it 
may enhance market quality for all Members.
Logical Port Fees
    The Exchange believes that the proposed clarification on how 
logical port fees may be pro-rated is consistent with Section 6(b)(4) 
of the Act,\18\ 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 proposed rule change seeks to provide clarity to subscribers 
regarding the Exchange's pro-rata billing policy for logical ports by 
describing how logical port fees may be pro-rated for a new request and 
upon cancellation. The Exchange believes that the proposed pro-rata 
billing of fees for logical ports is reasonable in that it is similar 
to how port fees are pro-rated by the Nasdaq Stock Market LLC 
(``Nasdaq'').\19\
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b)(4).
    \19\ See Nasdaq Price List--Trade Connectivity available at 
http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2#connectivity. The Exchange notes 
that, unlike as proposed by the Exchange, Nasdaq does not pro-rate 
where the session is terminated within the first month of service.
---------------------------------------------------------------------------

    The Exchange operates in a highly competitive market in which 
exchanges offer connectivity services as a means to facilitate the 
trading activities of Members and other participants. Accordingly, fees 
charged for connectivity are constrained by the active competition for 
the order flow of such participants as well as demand for market data 
from the Exchange. If a particular exchange charges excessive fees for 
connectivity, affected Members will opt to terminate their connectivity 
arrangements with that exchange, and adopt a possible range of 
alternative strategies, including routing to the applicable exchange 
through another participant or market center or taking that exchange's 
data indirectly. Accordingly, an exchange charging excessive fees would 
stand to lose not only connectivity revenues, but also revenues 
associated with the execution of orders routed to it by affected 
members, and, to the extent applicable, market data revenues. The 
Exchange believes that this competitive dynamic imposes powerful 
restraints on the ability of any exchange to charge unreasonable fees 
for connectivity.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed amendments to its fee schedule 
would not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. To the contrary, 
the Exchange has designed the proposed amendments to its fee schedule 
to enhance its ability to compete with other exchanges. Rather, the 
proposal as a whole is a competitive

[[Page 54137]]

proposal that is seeking to further the growth of the Exchange. The 
Exchange has structured certain fees and rebates proposed herein to 
attract certain additional volume in both Customer and certain Non-
Customer orders, however, the Exchange believes that its pricing for 
all capacities is competitive with that offered by other options 
exchanges. Additionally, Members may opt to disfavor the Exchange's 
pricing if they believe that alternatives offer them better value. 
Accordingly, the Exchange does not believe that the proposed change 
will impair the ability of Members or competing venues to maintain 
their competitive standing in the financial markets. Additionally, 
Members may opt to disfavor the Exchange's pricing if they believe that 
alternatives offer them better value. Accordingly, the Exchange does 
not believe that the proposed changes to the Exchange's tiered pricing 
structure burdens competition, but instead enhances competition by 
increasing the competitiveness of the Exchange. The Exchange believes 
that the price changes contribute to, rather than burden competition, 
as such changes are broadly intended to incentivize participants to 
increase their participation on the Exchange, which will increase the 
liquidity and market quality on the Exchange and further enhance the 
Exchange's ability to compete with other exchanges.
    With regard to the proposed logical port fee amendment, the 
Exchange believes that fees for connectivity are constrained by the 
robust competition for order flow among exchanges and non-exchange 
markets. Further, excessive fees for connectivity, including logical 
port fees, would serve to impair an exchange's ability to compete for 
order flow rather than burdening competition. The Exchange also does 
not believe the proposed rule change would impact intramarket 
competition as it would apply to all Members and non-Members equally.

(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 \20\ and paragraph (f) of Rule 19b-4 
thereunder.\21\ 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.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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 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-BatsBZX-2016-44 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-2016-44. 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-2016-44 and should 
be submitted on or before September 6, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19320 Filed 8-12-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                54134                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                   A request for a hearing or petition for                  prior to the filing deadline, the                      110.81, should be submitted within
                                                leave to intervene may be filed with the                    petitioner/requestor should contact the                thirty days after publication of this
                                                NRC electronically in accordance with                       Office of the Secretary by email at                    notice in the Federal Register to Office
                                                NRC’s E-Filing rule promulgated in                          HEARINGDOCKET@NRC.GOV, or by                           of the Secretary, U.S. Nuclear
                                                August 2007, 72 FR 49139; August 28,                        calling 301–415–1677, to request a                     Regulatory Commission, Washington,
                                                2007. Information about filing                              digital ID certificate and allow for the               DC 20555, Attention: Rulemaking and
                                                electronically is available on the NRC’s                    creation of an electronic docket.                      Adjudications.
                                                public Web site at http://www.nrc.gov/                        In addition to a request for hearing or                The information concerning this
                                                site-help/e-submittals.html. To ensure                      petition for leave to intervene, written               application for an export license
                                                timely electronic filing, at least 5 days                   comments, in accordance with 10 CFR                    follows.

                                                                                                              NRC EXPORT LICENSE APPLICATION
                                                                                                                         [Description of Material]

                                                     Name of applicant
                                                     Date of application
                                                       Date received                          Material type                    Total quantity                     End use                       Destination
                                                      Application No.
                                                        Docket No.

                                                U.S. Department of En-                 High-Enriched Uranium           6.7 kilograms (kg) ura-           For target fabrication at      Belgium.
                                                  ergy, National Nuclear                 (93.35 WGT %) in the            nium-235 contained in             AREVA NP Romans in
                                                  Security Administration.               form of broken metal.           7.2 kg uranium.                   France, to be used for
                                                July 14, 2016 .....................                                                                        medical isotope produc-
                                                July 21, 2016 .....................                                                                        tion at the Institute for
                                                XSNM3776 ........................                                                                          Radioelements in Bel-
                                                11006241 ...........................                                                                       gium.


                                                  Dated this 8th day of August 2016 at                      Exchange under Section 19(b)(3)(A)(ii)                 places specified in Item IV below. The
                                                Rockville, Maryland.                                        of the Act3 and Rule 19b–4(f)(2)                       Exchange has prepared summaries, set
                                                  For the Nuclear Regulatory Commission.                    thereunder,4 which renders the                         forth in Sections A, B, and C below, of
                                                Mugeh Afshar-Tous,                                          proposed rule change effective upon                    the most significant parts of such
                                                Acting Director, Office of International
                                                                                                            filing with the Commission. The                        statements.
                                                Programs.                                                   Commission is publishing this notice to
                                                                                                                                                                   (A) Self-Regulatory Organization’s
                                                                                                            solicit comments on the proposed rule
                                                [FR Doc. 2016–19360 Filed 8–12–16; 8:45 am]                                                                        Statement of the Purpose of, and
                                                                                                            change from interested persons.
                                                BILLING CODE 7590–01–P                                                                                             Statutory Basis for, the Proposed Rule
                                                                                                            I. Self-Regulatory Organization’s                      Change
                                                                                                            Statement of the Terms of Substance of
                                                                                                                                                                   1. Purpose
                                                SECURITIES AND EXCHANGE                                     the Proposed Rule Change
                                                COMMISSION                                                     The Exchange filed a proposal to                      The Exchange proposes to modify its
                                                                                                            amend the fee schedule applicable to                   fee schedule applicable to the
                                                [Release No. 34–78517; File No. SR–
                                                                                                            Members 5 and non-Members of the                       Exchange’s options platform (‘‘BZX
                                                BatsBZX–2016–44]                                                                                                   Options’’) to: (i) Increase the fee for
                                                                                                            Exchange pursuant to BZX Rules 15.1(a)
                                                                                                            and (c).                                               orders that yield fee code NP, which is
                                                Self-Regulatory Organizations; Bats                                                                                appended Non-Customer 6 orders in
                                                BZX Exchange, Inc.; Notice of Filing                           The text of the proposed rule change
                                                                                                            is available at the Exchange’s Web site                Non-Penny Pilot Securities; 7 (ii) add
                                                and Immediate Effectiveness of a                                                                                   three new tiers under new footnote 13
                                                Proposed Rule Change Related to Fees                        at www.batstrading.com, at the
                                                                                                            principal office of the Exchange, and at               entitled, ‘‘Non-Customer Non-Penny
                                                for Use of the Exchange’s Options                                                                                  Pilot Take Volume Tier’’; (iii) eliminate
                                                Platform                                                    the Commission’s Public Reference
                                                                                                            Room.                                                  Tier 4 from footnote 5, Quoting
                                                August 9, 2016.                                                                                                    Incentive Program (‘‘QIP’’) Tier; and (iv)
                                                                                                            II. Self-Regulatory Organization’s                     modify the billing policy for the logical
                                                   Pursuant to Section 19(b)(1) of the
                                                                                                            Statement of the Purpose of, and                       port fees.
                                                Securities Exchange Act of 1934 (the
                                                                                                            Statutory Basis for, the Proposed Rule
                                                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                                                                             Fee Code NP
                                                                                                            Change
                                                notice is hereby given that on July 29,
                                                                                                               In its filing with the Commission, the                Fee code NP is appended to Non-
                                                2016, Bats BZX Exchange, Inc. (the
                                                                                                            Exchange included statements                           Customer orders that remove liquidity
                                                ‘‘Exchange’’ or ‘‘BZX’’) filed with the
                                                                                                            concerning the purpose of and basis for                in Non-Penny Pilot Securities on the
                                                Securities and Exchange Commission
                                                                                                            the proposed rule change and discussed                 Exchange. Orders that yield fee code NP
                                                (‘‘Commission’’) the proposed rule
                                                                                                            any comments it received on the                        currently incur a fee of $0.99 per
                                                change as described in Items I, II and III
                                                                                                            proposed rule change. The text of these                contract. The Exchange is proposing to
sradovich on DSK3GMQ082PROD with NOTICES




                                                below, which Items have been prepared
                                                                                                            statements may be examined at the                      increase this fee to $1.07 per contract,
                                                by the Exchange. The Exchange has
                                                                                                                                                                   which as explained below, is
                                                designated the proposed rule change as
                                                                                                              3 15 U.S.C. 78s(b)(3)(A)(ii).                        commensurate with industry standards.
                                                one establishing or changing a member                         4 17 CFR 240.19b–4(f)(2).
                                                due, fee, or other charge imposed by the                      5 The term ‘‘Member’’ is defined as ‘‘any              6 As defined in the Exchange’s fee schedule

                                                                                                            registered broker or dealer that has been admitted     available at http://www.batsoptions.com/support/
                                                  1 15   U.S.C. 78s(b)(1).                                                                                         fee_schedule/bzx/.
                                                                                                            to membership in the Exchange.’’ See Exchange
                                                  2 17   CFR 240.19b–4.                                     Rule 1.5(n).                                             7 Id.




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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                            54135

                                                In conjunction with this change, the                    for that class. Under the QIP Tiers, a                logical port fees to all Member’s and
                                                Exchange also proposes to update the                    Market Maker receives an additional                   non-Member’s logical ports.
                                                Standard Rate table.                                    rebate ranging from $0.02 to $0.06 per                  The Exchange proposes to clarify
                                                                                                        contract where that Market Maker                      within its fee schedule how fees for
                                                Non-Customer Non-Penny Pilot Take                                                                             logical ports may be pro-rated. As
                                                                                                        satisfies certain ADV 13 thresholds.
                                                Volume Tier                                                                                                   proposed, new requests will be pro-
                                                                                                        Under the highest tier, QIP Tier 4, a
                                                   The Exchange proposes to add three                   Market Maker receives an additional                   rated for the first month of service.
                                                tiers under new footnote 13 entitled,                   rebate of $0.06 per contract where that               Cancellation requests are billed in full
                                                ‘‘Non-Customer Non-Penny Pilot Take                     Market Maker has an ADV equal to or                   month increments as firms are required
                                                Volume Tier’’. Under the proposed new                   greater than 3.5% of average TCV. The                 to pay for the service for the remainder
                                                tiers, orders that yield fee code NP                    Exchange proposes to eliminate QIP                    of the month, unless the session is
                                                would receive a discounted rate from                    Tier 4 because the rebate has not                     terminated within the first month of
                                                the proposed $1.07 fee discussed above.                 achieved the desired effect, despite                  service.
                                                The Exchange proposes to add three                      being designed to incentivize Market
                                                Non-Customer Non-Penny Pilot Take                                                                             Implementation Date
                                                                                                        Markers to add liquidity to the BZX
                                                Volume Tiers, as set forth below.                       Options Book.                                           The Exchange proposes to implement
                                                   • Tier 1, would provide a discounted                                                                       these amendments to its fee schedule on
                                                rate of $1.02 in orders where: the (1)                  Logical Port Fees                                     August 1, 2016.
                                                Member has an ADAV 8 in Customer 9                         A logical port represents a port                   2. Statutory Basis
                                                orders equal to or greater than 0.60% of                established by the Exchange within the
                                                average TCV 10; (2) Member has an                                                                                The Exchange believes that the
                                                                                                        Exchange’s system for trading and                     proposed rule change is consistent with
                                                ADAV in Market Maker 11 orders equal                    billing purposes. Each logical port
                                                to or greater than 0.30% of average TCV;                                                                      the requirements of the Act and the
                                                                                                        established is specific to a Member or                rules and regulations thereunder that
                                                and (3) Member has on Exchange’s                        non-Member and grants that Member or
                                                equity platform (‘‘BZX Equities’’) an                                                                         are applicable to a national securities
                                                                                                        non-Member the ability to operate a                   exchange, and, in particular, with the
                                                ADAV 12 equal to or greater than 0.30%                  specific application, such as FIX order
                                                of average TCV.                                                                                               requirements of Section 6 of the Act.15
                                                                                                        entry or PITCH data receipt. The
                                                   • Tier 2, would provide a discounted                 Exchange’s Multicast PITCH data feed is
                                                                                                                                                              Specifically, the Exchange believes that
                                                rate of $1.02 in orders where a Member                                                                        the proposed rule change is consistent
                                                                                                        available from two primary feeds,                     with Section 6(b)(4) of the Act,16 in that
                                                has an ADAV in Customer orders equal                    identified as the ‘‘A feed’’ and the ‘‘C
                                                to or greater than 1.00% of average TCV.                                                                      it provides for the equitable allocation
                                                                                                        feed’’, which contain the same
                                                   • Tier 3, would provide a discounted                                                                       of reasonable dues, fees and other
                                                                                                        information but differ only in the way                charges among members and other
                                                rate of $1.01 in orders where a Member
                                                                                                        such feeds are received. The Exchange                 persons using any facility or system
                                                has an ADAV in Customer orders equal
                                                                                                        also offers two redundant fees,                       which the Exchange operates or
                                                to or greater than 1.30% of average TCV.
                                                                                                        identified as the ‘‘B feed’’ and the ‘‘D              controls. The Exchange notes that it
                                                   The Exchange notes that the criteria
                                                                                                        feed.’’ The Exchange also offers a bulk-              operates in a highly competitive market
                                                necessary to achieve the discounted rate
                                                                                                        quoting interface which allows Users 14               in which market participants can
                                                under Tiers 1, 2, and 3 proposed above
                                                mirrors the criteria required by the                    of BZX Options to submit and update                   readily direct order flow to competing
                                                existing Non-Customer Penny Pilot Take                  multiple bids and offers in one message               venues if they deem fee levels to be
                                                Volume Tiers under footnote 3 of the                    through logical ports enabled for bulk-               excessive.
                                                Exchange’s fee schedule. In conjunction                 quoting. The bulk-quoting application                    Volume-based rebates such as those
                                                with the addition of footnote 13, the                   for BZX Options is a particularly useful              currently maintained on the Exchange
                                                Exchange also proposes to append                        feature for Users that provide quotations             have been widely adopted by equities
                                                footnote 13 to fee code NP within the                   in many different options.                            and options exchanges and are equitable
                                                Fee Codes and Associate Fees table and                     The Exchange currently charges for                 because they are open to all Members on
                                                update the Standard Rates table.                        logical ports (including Multicast PITCH              an equal basis and provide additional
                                                                                                        Spin Server and GRP ports) $650 per                   benefits or discounts that are reasonably
                                                Quoting Incentive Program (‘‘QIP’’) Tier                port per month and $1,500 per month                   related to the value to an exchange’s
                                                  The Exchange currently offers four                    for ports with bulk quoting capabilities.             market quality associated with higher
                                                QIP tiers which provide an additional                   Where a User subscribes to more than                  levels of market activity, such as higher
                                                rebate per contract for an order that                   five ports with bulk quoting capabilities,            levels of liquidity provision and/or
                                                adds liquidity to the BZX Options Book                  the Exchange charges for each port in                 growth patterns, and introduction of
                                                in options classes in which a Member is                 excess of five $2,000 per logical port per            higher volumes of orders into the price
                                                a Market Maker registered on BZX                        month for logical ports with bulk                     and volume discovery processes.
                                                Options pursuant to Rule 22.2. The                      quoting capabilities. Logical port fees
                                                Market Maker must be registered with                    are limited to logical ports in the                   Fee Code NP
                                                BZX Options in an average of 20% or                     Exchange’s primary data center and no                   The Exchange believes that its
                                                more of the associated options series in                logical port fees are assessed for                    proposal to change the standard fee
                                                a class in order to qualify for QIP rebates             redundant secondary data center ports.                charged for Customer orders that
                                                                                                        The Exchange assesses the monthly per                 remove liquidity in Non-Customer Non-
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                                                  8 Id.                                                                                                       Penny Pilot Securities from $0.99 to
                                                  9 Id.                                                   13 As defined in the Exchange’s fee schedule        $1.07 per contract is reasonable, fair and
                                                  10 Id.
                                                                                                        available at http://www.batsoptions.com/support/      equitable because, while the change
                                                  11 As defined in the Exchange’s fee schedule          fee_schedule/bzx/.                                    marks an increase in fees for orders in
                                                available at http://www.batsoptions.com/support/          14 A User on BZX Options is either a member of
                                                fee_schedule/bzx/.                                      BZX Options or a sponsored participant who is
                                                                                                                                                              Non-Penny Pilot Securities, such
                                                  12 As defined in the BZX Equities’ fee schedule       authorized to obtain access to the Exchange’s
                                                                                                                                                                15 15   U.S.C. 78f.
                                                available at http://batstrading.com/support/fee_        system pursuant to BZX Rule 11.3. See Exchange
                                                schedule/bzx/.                                          Rule 1.5(ee) [sic].                                     16 15   U.S.C. 78f(b)(4).



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                                                54136                        Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices

                                                proposed fees remain consistent with                    the Non-Customer Non-Penny Pilot                      with Section 6(b)(4) of the Act,18 in that
                                                pricing previously offered by the                       Take Volume Tier is reasonable, fair,                 it provides for the equitable allocation
                                                Exchange as well as competitors of the                  equitable and non-discriminatory                      of reasonable dues, fees and other
                                                Exchange and does not represent a                       because to the extent a Member                        charges among members and other
                                                significant departure from the                          participates on the Exchange but not on               persons using any facility or system
                                                Exchange’s general pricing structure.17                 BZX Equities [sic] based on the overall               which the Exchange operates or
                                                Additionally, this pricing structure will               benefit to the Exchange resulting from                controls. The proposed rule change
                                                allow the Exchange to earn additional                   the success of BZX Equities. Such                     seeks to provide clarity to subscribers
                                                revenue that can be used to offset the                  success allows the Exchange to continue               regarding the Exchange’s pro-rata billing
                                                addition of new pricing incentives,                     to provide and potentially expand its                 policy for logical ports by describing
                                                including those introduced as part of                   existing incentive programs to the                    how logical port fees may be pro-rated
                                                this proposal. The proposed rate change                 benefit of all participants on the                    for a new request and upon
                                                is also not unfairly discriminatory                     Exchange, whether they participate on                 cancellation. The Exchange believes that
                                                because it will apply equally to all                    BZX Equities or not. The proposed                     the proposed pro-rata billing of fees for
                                                Members.                                                pricing program is also fair and                      logical ports is reasonable in that it is
                                                                                                        equitable in that membership in BZX                   similar to how port fees are pro-rated by
                                                Non-Customer Non-Penny Pilot Take
                                                                                                        Equities is available to all Members                  the Nasdaq Stock Market LLC
                                                Volume Tier
                                                                                                        which would provide them with access                  (‘‘Nasdaq’’).19
                                                  The Exchange believes the volume-                     to the benefits provided by the proposed                 The Exchange operates in a highly
                                                based discounted rates offered in the                   tier, as described above, even where a                competitive market in which exchanges
                                                Non-Customer Non-Penny Pilot Take                       Member of BZX Equities is not                         offer connectivity services as a means to
                                                Volume Tiers are reasonable, fair,                      necessarily eligible for the proposed                 facilitate the trading activities of
                                                equitable and non-discriminatory for the                increased rebates on the Exchange.                    Members and other participants.
                                                reasons set forth above with respect to                                                                       Accordingly, fees charged for
                                                volume-based pricing generally, such                    QIP Tier                                              connectivity are constrained by the
                                                changes will apply equally to all                          The Exchange believes that its                     active competition for the order flow of
                                                participants, and the change is intended                proposal to eliminate QIP Tier 4 under                such participants as well as demand for
                                                to incentivize participants to further                  footnote 5 represents an equitable                    market data from the Exchange. If a
                                                contribute to market quality on the                     allocation of reasonable dues, fees, and              particular exchange charges excessive
                                                Exchange. Moreover, the proposed                        other charges among Members and other                 fees for connectivity, affected Members
                                                changes will provide Members with an                    persons using its facilities. As described            will opt to terminate their connectivity
                                                increased incentive to interact with                    above, the additional rebates offered                 arrangements with that exchange, and
                                                orders in Non-Penny Pilot securities on                 under this tier is not affecting Members’             adopt a possible range of alternative
                                                the Exchange. The Exchange believes                     behavior in the manner originally                     strategies, including routing to the
                                                this will enhance market quality for all                conceived by the Exchange.                            applicable exchange through another
                                                market participants and encourage                       Additionally, the Exchange currently                  participant or market center or taking
                                                increased participation of other orders                 provides three other QIP Tiers which                  that exchange’s data indirectly.
                                                wanting to interact with such Non-                      offer additional rebates to qualifying                Accordingly, an exchange charging
                                                Customer Non-Penny Pilot orders, to                     Members adding liquidity. While the                   excessive fees would stand to lose not
                                                further the benefit of all market                       Exchange acknowledges the benefit of                  only connectivity revenues, but also
                                                participants.                                           Members entering orders which add                     revenues associated with the execution
                                                  The Exchange also believes that the                                                                         of orders routed to it by affected
                                                                                                        liquidity, the Exchange has determined
                                                proposed new tiers remain consistent                                                                          members, and, to the extent applicable,
                                                                                                        that it is providing additional rebates for
                                                with pricing previously offered by the                                                                        market data revenues. The Exchange
                                                                                                        liquidity that would be added regardless
                                                Exchange as well as competitors of the                                                                        believes that this competitive dynamic
                                                                                                        of whether the tier existed. By providing
                                                Exchange. The Exchange notes that the                                                                         imposes powerful restraints on the
                                                                                                        this rebate, the Exchange is not only
                                                criteria required to achieve proposed                                                                         ability of any exchange to charge
                                                                                                        offering a rebate for orders that would
                                                Tiers 1, 2, and 3 mirror those required                                                                       unreasonable fees for connectivity.
                                                                                                        add liquidity without being incentivized
                                                to achieve the Non-Customer Penny-
                                                                                                        to do so, but also bypassing the                      (B) Self-Regulatory Organization’s
                                                Pilot Take Volume Tiers 1, 2, and 3
                                                                                                        opportunity to offer other rebates or                 Statement on Burden on Competition
                                                under footnote 3 of the Exchange’s fee
                                                                                                        reduced fees which could incentivize
                                                schedule. Furthermore, the criteria                                                                              The Exchange believes the proposed
                                                                                                        other behavior that would enhance
                                                required to achieve proposed Tier 1, 2,                                                                       amendments to its fee schedule would
                                                                                                        market quality on the Exchange and
                                                and 3 mirrors that required by the                                                                            not impose any burden on competition
                                                                                                        benefit all Members. As such, the
                                                Customer Add Volume Tier 5, 4, and 6,                                                                         that is not necessary or appropriate in
                                                                                                        Exchange believes the proposed
                                                respectively.                                                                                                 furtherance of the purposes of the Act.
                                                                                                        elimination of the QIP Tier 4 would be
                                                  The Exchange further believes that the                                                                      To the contrary, the Exchange has
                                                                                                        non-discriminatory in that it currently
                                                criteria necessary to achieve Tier 1 of                                                                       designed the proposed amendments to
                                                                                                        applies equally to all Members and,
                                                                                                        upon elimination, would no longer be                  its fee schedule to enhance its ability to
                                                   17 NYSE Arca, Inc. (‘‘NYSE Arca’’) charges a fee
                                                                                                        available to any Members. Further, it                 compete with other exchanges. Rather,
                                                of $1.08 to non-customer orders that remove
                                                liquidity in Non-Penny Pilot Securities. See NYSE       will allow the Exchange to explore other              the proposal as a whole is a competitive
sradovich on DSK3GMQ082PROD with NOTICES




                                                Arca Options fee schedule available at https://         ways in which it may enhance market                     18 15 U.S.C. 78f(b)(4).
                                                www.nyse.com/publicdocs/nyse/markets/arca-
                                                options/NYSE_Arca_Options_Fee_Schedule.pdf.
                                                                                                        quality for all Members.                                19 See Nasdaq Price List—Trade Connectivity
                                                Similarly, the Nasdaq Stock Market LLC (‘‘Nasdaq’’)     Logical Port Fees                                     available at http://www.nasdaqtrader.com/
                                                charges a fee of $1.10 to non-customer orders that                                                            Trader.aspx?id=PriceListTrading2#connectivity.
                                                remove liquidity in Non-Penny Pilot Securities. See       The Exchange believes that the                      The Exchange notes that, unlike as proposed by the
                                                Nasdaq Options fee schedule available at http://                                                              Exchange, Nasdaq does not pro-rate where the
                                                www.nasdaqtrader.com/
                                                                                                        proposed clarification on how logical                 session is terminated within the first month of
                                                Micro.aspx?id=optionsPricing.                           port fees may be pro-rated is consistent              service.



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                                                                             Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices                                                    54137

                                                proposal that is seeking to further the                 of the Act 20 and paragraph (f) of Rule                 submissions. You should submit only
                                                growth of the Exchange. The Exchange                    19b–4 thereunder.21 At any time within                  information that you wish to make
                                                has structured certain fees and rebates                 60 days of the filing of the proposed rule              available publicly. All submissions
                                                proposed herein to attract certain                      change, the Commission summarily may                    should refer to File Number SR-
                                                additional volume in both Customer and                  temporarily suspend such rule change if                 BatsBZX–2016–44 and should be
                                                certain Non-Customer orders, however,                   it appears to the Commission that such                  submitted on or before September 6,
                                                the Exchange believes that its pricing for              action is necessary or appropriate in the               2016.
                                                all capacities is competitive with that                 public interest, for the protection of                    For the Commission, by the Division of
                                                offered by other options exchanges.                     investors, or otherwise in furtherance of               Trading and Markets, pursuant to delegated
                                                Additionally, Members may opt to                        the purposes of the Act.                                authority.22
                                                disfavor the Exchange’s pricing if they                                                                         Robert W. Errett,
                                                                                                        IV. Solicitation of Comments
                                                believe that alternatives offer them                                                                            Deputy Secretary.
                                                better value. Accordingly, the Exchange                   Interested persons are invited to
                                                                                                        submit written data, views, and                         [FR Doc. 2016–19320 Filed 8–12–16; 8:45 am]
                                                does not believe that the proposed
                                                change will impair the ability of                       arguments concerning the foregoing,                     BILLING CODE 8011–01–P

                                                Members or competing venues to                          including whether the proposed rule
                                                maintain their competitive standing in                  change is consistent with the Act.
                                                                                                        Comments may be submitted by any of                     SECURITIES AND EXCHANGE
                                                the financial markets. Additionally,
                                                                                                        the following methods:                                  COMMISSION
                                                Members may opt to disfavor the
                                                Exchange’s pricing if they believe that                 Electronic Comments                                     [Release No. 34–78513; File No. SR–CBOE–
                                                alternatives offer them better value.                                                                           2016–058]
                                                Accordingly, the Exchange does not                        • Use the Commission’s Internet
                                                believe that the proposed changes to the                comment form (http://www.sec.gov/                       Self-Regulatory Organizations;
                                                Exchange’s tiered pricing structure                     rules/sro.shtml); or                                    Chicago Board Options Exchange,
                                                burdens competition, but instead                          • Send an email to rule-comments@                     Incorporated; Notice of Filing and
                                                enhances competition by increasing the                  sec.gov. Please include File Number SR-                 Immediate Effectiveness of a Proposed
                                                competitiveness of the Exchange. The                    BatsBZX–2016–44 on the subject line.                    Rule Change Relating to Rule 24.6
                                                Exchange believes that the price                        Paper Comments                                          August 9, 2016.
                                                changes contribute to, rather than
                                                                                                           • Send paper comments in triplicate                     Pursuant to Section 19(b)(1) of the
                                                burden competition, as such changes are                                                                         Securities Exchange Act of 1934 (the
                                                                                                        to Secretary, Securities and Exchange
                                                broadly intended to incentivize                                                                                 ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                        Commission, 100 F Street NE.,
                                                participants to increase their                                                                                  notice is hereby given that on August 8,
                                                                                                        Washington, DC 20549–1090.
                                                participation on the Exchange, which                                                                            2016, Chicago Board Options Exchange,
                                                will increase the liquidity and market                  All submissions should refer to File
                                                                                                        Number SR-BatsBZX–2016–44. This file                    Incorporated (the ‘‘Exchange’’ or
                                                quality on the Exchange and further                                                                             ‘‘CBOE’’) filed with the Securities and
                                                enhance the Exchange’s ability to                       number should be included on the
                                                                                                        subject line if email is used. To help the              Exchange Commission (the
                                                compete with other exchanges.                                                                                   ‘‘Commission’’) the proposed rule
                                                   With regard to the proposed logical                  Commission process and review your
                                                                                                        comments more efficiently, please use                   change as described in Items I and II
                                                port fee amendment, the Exchange
                                                                                                        only one method. The Commission will                    below, which Items have been prepared
                                                believes that fees for connectivity are
                                                                                                        post all comments on the Commission’s                   by the Exchange. The Commission is
                                                constrained by the robust competition
                                                                                                        Internet Web site (http://www.sec.gov/                  publishing this notice to solicit
                                                for order flow among exchanges and
                                                                                                        rules/sro.shtml). Copies of the                         comments on the proposed rule change
                                                non-exchange markets. Further,
                                                                                                        submission, all subsequent                              from interested persons.
                                                excessive fees for connectivity,
                                                including logical port fees, would serve                amendments, all written statements                      I. Self-Regulatory Organization’s
                                                to impair an exchange’s ability to                      with respect to the proposed rule                       Statement of the Terms of Substance of
                                                compete for order flow rather than                      change that are filed with the                          the Proposed Rule Change
                                                burdening competition. The Exchange                     Commission, and all written
                                                                                                        communications relating to the                             The Exchange seeks to amend Rule
                                                also does not believe the proposed rule                                                                         24.6. The text of the proposed rule
                                                change would impact intramarket                         proposed rule change between the
                                                                                                        Commission and any person, other than                   change is provided below.
                                                competition as it would apply to all
                                                                                                        those that may be withheld from the                     (additions are underlined; deletions are
                                                Members and non-Members equally.
                                                                                                        public in accordance with the                           [bracketed])
                                                (C) Self-Regulatory Organization’s                      provisions of 5 U.S.C. 552, will be                     *      *     *     *    *
                                                Statement on Comments on the                            available for Web site viewing and                      Chicago Board Options Exchange,
                                                Proposed Rule Change Received From                      printing in the Commission’s Public                     Incorporated Rules
                                                Members, Participants or Others                         Reference Room, 100 F Street, NE.,                      *      *     *     *    *
                                                  The Exchange has not solicited, and                   Washington, DC 20549, on official                       Rule 24.6. Days and Hours of Business
                                                does not intend to solicit, comments on                 business days between the hours of                         (a)–(b) No change
                                                this proposed rule change. The                          10:00 a.m. and 3:00 p.m. Copies of such                    . . . Interpretations and Policies:
                                                Exchange has not received any written                   filing will also be available for                          .01–.05 No change.
sradovich on DSK3GMQ082PROD with NOTICES




                                                comments from members or other                          inspection and copying at the principal                    .06 With respect to options on a
                                                interested parties.                                     office of the Exchange. All comments                    foreign index that is comprised of
                                                                                                        received will be posted without change;                 component securities trading in a single
                                                III. Date of Effectiveness of the
                                                                                                        the Commission does not edit personal                   country, the Exchange may determine
                                                Proposed Rule Change and Timing for
                                                                                                        identifying information from
                                                Commission Action                                                                                                 22 17 CFR 200.30–3(a)(12).
                                                   The foregoing rule change has become                   20 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                effective pursuant to Section 19(b)(3)(A)                 21 17 CFR 240.19b–4(f).                                 2 17 CFR 240.19b–4.




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Document Created: 2016-08-13 02:22:14
Document Modified: 2016-08-13 02:22:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 54134 

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