81 FR 59020 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 13.8, EDGA Book Feeds, To Adopt a New Market Data Product Known as EDGA Summary Depth
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 166 (August 26, 2016)
Federal Register Volume 81, Issue 166 (August 26, 2016)
| Page Range | 59020-59023 | |
| FR Document | 2016-20462 |
[Federal Register Volume 81, Number 166 (Friday, August 26, 2016)] [Notices] [Pages 59020-59023] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20462] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78636; File No. SR-BatsEDGA-2016-19] Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 13.8, EDGA Book Feeds, To Adopt a New Market Data Product Known as EDGA Summary Depth August 22, 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 August 11, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non- [[Page 59021]] controversial'' proposed rule change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders it 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). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule 13.8 to adopt a new market data product known as EDGA Summary Depth. 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 amend Rule 13.8 to adopt a new market data product known as EDGA Summary Depth. EDGA Summary Depth would be a data feed that offers aggregated two-sided quotations for all displayed orders entered into the System \5\ for up to five (5) price levels for securities traded on the Exchange and for which the Exchange reports quotes under the Consolidated Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan. EDGA Summary Depth also contains the individual last sale information, Market Status, Trading Status, and Trade Break messages. The individual last sale information will include the price, size, and time of execution. The last sale message will also include the cumulative number of shares executed on the Exchange for that trading day. The Exchange will disseminate the aggregate Best Bid and Offer (``BBO'') and last sale information through EDGA Summary Depth no earlier than it provides its BBO and last sale information to the processors under the CTA Plan or the Nasdaq/UTP Plan. --------------------------------------------------------------------------- \5\ ``System'' is defined as the ``the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away.'' See Exchange Rule 1.5(aa). --------------------------------------------------------------------------- The Market Status message will reflect a change in the status of the Exchange. For example, the Market Status message would indicate whether the Exchange is experiencing a systems issue or disruption resulting in quotation or trade information not currently being disseminated as part of the aggregated BBO. The Market Status message will also indicate when Exchange has resolved a systems issue or disruption and is properly reflecting the status of the aggregated BBO. The Trade Break message will indicate when an execution is broken in accordance with Exchange rules.\6\ The Trading Status message will indicate the current trading status of a security on the Exchange. For example, a Trading Status message will be sent when a short sale price restriction is in effect pursuant to Rule 201 of Regulation SHO (``Short Sale Circuit Breaker''),\7\ or when the security is subject to a trading halt, suspension or pause declared by the listing market. A Trading Status message will be sent whenever a security's trading status changes. --------------------------------------------------------------------------- \6\ See, e.g., Exchange Rule 11.15, Clearly Erroneous Executions. \7\ 17 CFR 242.200(g); 17 CFR 242.201. --------------------------------------------------------------------------- The Exchange intends to offer EDGA Summary Depth as of January 3, 2017. Prior to January 3, 2017, the Exchange will file a separate rule change with the Commission proposing fees to be charged for EDGA Summary Depth.\8\ --------------------------------------------------------------------------- \8\ The Exchange understands that its affiliated exchanges intend to file identical proposed rule changes to adopt rules and fees for the Book Viewer data feed with the Commission. The Exchange's affiliates are Bats EDGX Exchange, Inc., (``EDGX''), Bats BYX Exchange, Inc. (``BYX''), and Bats BZX Exchange, Inc. (``BZX'') (collectively, the ``Bats Exchanges''). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act,\9\ in general, and furthers the objectives of section 6(b)(5) of the Act,\10\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and to protect investors and the public interest, and that it is not designed to permit unfair discrimination among customers, brokers, or dealers. This proposal is in keeping with those principles in that it promotes increased transparency through the dissemination of EDGA Summary Depth. The Exchange also believes this proposal is consistent with section 6(b)(5) of the Act because it protects investors and the public interest and promotes just and equitable principles of trade by providing investors with an alternative for receiving market data as requested by market data vendors and purchasers that expressed an interest in exchange-only data for instances where consolidated data is no longer required to be purchased and displayed. The proposed rule change would benefit investors by facilitating their prompt access to real-time depth-of- book information contained in EDGA Summary Depth. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f. \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change is consistent with section 11(A) of the Act \11\ in that it supports (i) fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets and (ii) the availability of information with respect to quotations for and transactions in securities to brokers, dealers, and investors. Furthermore, the proposed rule change is consistent with Rule 603 of Regulation NMS,\12\ which provides that any national securities exchange that distributes information with respect to quotations for or transactions in an NMS stock do so on terms that are not unreasonably discriminatory. EDGA Summary Depth would be accessed and subscribed to on a voluntary basis, in that neither the Exchange nor market data distributors are required by any rule or regulation to make this data available. Accordingly, distributors and subscribers can discontinue their use at any time and for any reason. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78k-1. \12\ See 17 CFR 242.603. --------------------------------------------------------------------------- In adopting Regulation NMS, the Commission granted self-regulatory organizations and broker-dealers increased authority and flexibility to offer new and unique market data to consumers of such data. It was believed that this authority would expand the amount of data available to users and consumers of such data and also spur innovation and competition for the provision of market data. The Exchange believes that the data products proposed [[Page 59022]] herein are precisely the sort of market data products that the Commission envisioned when it adopted Regulation NMS. The Commission concluded that Regulation NMS--by lessening regulation of the market in proprietary data--would itself further the Act's goals of facilitating --------------------------------------------------------------------------- efficiency and competition: [E]fficiency is promoted when broker-dealers who do not need the data beyond the prices, sizes, market center identifications of the NBBO and consolidated last sale information are not required to receive (and pay for) such data. The Commission also believes that efficiency is promoted when broker-dealers may choose to receive (and pay for) additional market data based on their own internal analysis of the need for such data.\13\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005) (File No. S7-10-04) (``Regulation NMS Adopting Release''). By removing ``unnecessary regulatory restrictions'' on the ability of exchanges to sell their own data, Regulation NMS advanced the goals of the Act and the principles reflected in its legislative history. In addition, EDGA Summary Depth removes impediments to and perfects the mechanism of a free and open market and a national market system by providing investors with alternative market data and competing with similar market data products currently offered by the New York Stock Exchange, Inc. (``NYSE'') and the Nasdaq Stock Market LLC (``Nasdaq'').\14\ The provision of new options for investors to receive market data was a primary goal of the market data amendments adopted by Regulation NMS.\15\ --------------------------------------------------------------------------- \14\ See Nasdaq Rule 7023(a)(1)(C) (describing Nasdaq TotalView as a depth-of-book data feed that includes all orders and quotes from all Nasdaq members displayed in the Nasdaq Market Center as well as the aggregate size of such orders and quotes at each price level in the execution functionality of the Nasdaq Market Center). See NYSE OpenBook available at http://www.nyxdata.com/openbook (last visited July 5, 2016) (providing real-time view of the NYSE limit order book including the aggregated size at each price level). See Securities Exchange Act Release Nos. 46843 (November 18, 2002), 67 FR 70471 (November 22, 2002) (SR-NASD-2002-33) (order approving fees for Nasdaq TotalView); and 45138 (December 7, 2001), 66 FR 64895 (December 14, 2001) (SR-NYSE-2001-42) (order approving fees for NYSE OpenBook). \15\ See Regulation NMS Adopting Release, supra note 13. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.\16\ The Exchange believes that the proposal will promote competition by enabling the Exchange to offer a market data product similar to that currently offered by the NYSE and Nasdaq.\17\ Thus, the Exchange believes this proposed rule change is necessary to permit fair competition among national securities exchanges. --------------------------------------------------------------------------- \16\ The Bats One Feed is a data feed that disseminates, on a real-time basis, the aggregate BBO of all displayed orders for securities traded on each of the Bats Exchanges and for the Bats Exchanges report quotes under the CTA Plan or the Nasdaq/UTP Plan. The Bats One Feed also contains the individual last sale information for the Bats Exchanges (collectively with the aggregate BBO, the ``Bats One Summary Feed''). In addition, the Bats One Feed contains optional functionality which enables recipients to receive aggregated two-sided quotations from the Bats Exchanges for up to five (5) price levels (``Bats One Premium Feed''). See Exchange Rule 13.8(b). See also Securities Exchange Act Release No. 73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (File Nos. SR- EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) (Notice of Amendments No. 2 and Order Granting Accelerated Approval to Proposed Rule Changes, as Modified by Amendments Nos. 1 and 2, to Establish a New Market Data Product called the Bats One Feed) (``Bats One Approval Order''). The Exchange uses the following data feeds to create the Bats One Feed, each of which are available to vendors: EDGX Depth, EDGA Depth, BYX PITCH Feed, and the BZX PITCH Feed. The Exchange notes that a vendor could utilize the proposed EDGA Summary Depth Feed, as well as the summarized depth feeds to be proposed by BYX, BZX, and EDGX to create a competing product to the Bats One Feed. Supra note 8. The Exchange represents that a competing vendor could obtain these data feeds from each Bats Exchange on the same latency basis as the system that performs the aggregation and consolidation of the Bats One Feed. See Bats One Approval Order. While the proposed EDGA Summary Depth Feed does not contain the symbol summary or consolidated volume data included in the Bats One Feed, a vendor could include this information in a competing product as this information is easily derivable from the proposed feeds or can be obtained from the securities information processors on the same terms as the Exchange. \17\ See supra note 14. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsEDGA-2016-19 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-BatsEDGA-2016-19. 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 [[Page 59023]] 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-BatsEDGA-2016-19, and should be submitted on or before September 16, 2016. --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-20462 Filed 8-25-16; 8:45 am] BILLING CODE 8011-01-P
![59020 Federal Register / Vol. 81, No. 166 / Friday, August 26, 2016 / Notices
data was a primary goal of the market III. Date of Effectiveness of the rules/sro.shtml). Copies of the
data amendments adopted by Proposed Rule Change and Timing for submission, all subsequent
Regulation NMS.17 Commission Action amendments, all written statements
Because the proposed rule change with respect to the proposed rule
B. Self-Regulatory Organization’s change that are filed with the
Statement on Burden on Competition does not (i) significantly affect the
protection of investors or the public Commission, and all written
interest; (ii) impose any significant communications relating to the
The Exchange does not believe that
burden on competition; and (iii) become proposed rule change between the
the proposed rule change will result in
operative for 30 days from the date on Commission and any person, other than
any burden on competition that is not
which it was filed, or such shorter time those that may be withheld from the
necessary or appropriate in furtherance public in accordance with the
of the purposes of the Act.18 The as the Commission may designate, it has
become effective pursuant to section provisions of 5 U.S.C. 552, will be
Exchange believes that the proposal will available for Web site viewing and
promote competition by enabling the 19(b)(3)(A) of the Act 20 and Rule 19b–
printing in the Commission’s Public
Exchange to offer a market data product 4(f)(6) thereunder.21
At any time within 60 days of the Reference Room, 100 F Street NE.,
similar to that currently offered by the Washington, DC 20549, on official
NYSE and Nasdaq.19 Thus, the filing of the proposed rule change, the
Commission summarily may business days between the hours of
Exchange believes this proposed rule 10:00 a.m. and 3:00 p.m. Copies of the
change is necessary to permit fair temporarily suspend such rule change if
it appears to the Commission that such filing also will be available for
competition among national securities inspection and copying at the principal
action is necessary or appropriate in the
exchanges. office of the Exchange. All comments
public interest, for the protection of
received will be posted without change;
C. Self-Regulatory Organization’s investors, or otherwise in furtherance of
the Commission does not edit personal
Statement on Comments on the the purposes of the Act. If the
identifying information from
Proposed Rule Change Received From Commission takes such action, the
submissions. You should submit only
Members, Participants, or Others Commission shall institute proceedings
information that you wish to make
to determine whether the proposed rule
The Exchange has neither solicited available publicly. All submissions
change should be approved or
nor received written comments on the should refer to File No. SR–BatsBYX–
disapproved.
proposed rule change. 2016–21, and should be submitted on or
IV. Solicitation of Comments before September 16, 2016.
17 See Regulation NMS Adopting Release, supra Interested persons are invited to For the Commission, by the Division of
note 14. submit written data, views, and Trading and Markets, pursuant to delegated
18 The Bats One Feed is a data feed that
arguments concerning the foregoing, authority.22
disseminates, on a real-time basis, the aggregate Robert W. Errett,
BBO of all displayed orders for securities traded on
including whether the proposed rule
each of the Bats Exchanges and for the Bats change is consistent with the Act. Deputy Secretary.
Exchanges report quotes under the CTA Plan or the Comments may be submitted by any of [FR Doc. 2016–20458 Filed 8–25–16; 8:45 am]
Nasdaq/UTP Plan. The Bats One Feed also contains the following methods: BILLING CODE 8011–01–P
the individual last sale information for the Bats
Exchanges (collectively with the aggregate BBO, the Electronic Comments
‘‘Bats One Summary Feed’’). In addition, the Bats
One Feed contains optional functionality which • Use the Commission’s Internet SECURITIES AND EXCHANGE
enables recipients to receive aggregated two-sided comment form (http://www.sec.gov/ COMMISSION
quotations from the Bats Exchanges for up to five rules/sro.shtml); or
[Release No. 34–78636; File No. SR–
(5) price levels (‘‘Bats One Premium Feed’’). See • Send an email to rule-comments@ BatsEDGA–2016–19]
Exchange Rule 11.22(i). See also Securities
Exchange Act Release No. 73918 (December 23, sec.gov. Please include File No. SR–
2014), 79 FR 78920 (December 31, 2014) (File Nos. BatsBYX–2016–21 on the subject line. Self-Regulatory Organizations; Bats
SR–EDGX–2014–25; SR–EDGA–2014–25; SR– EDGA Exchange, Inc.; Notice of Filing
BATS–2014–055; SR–BYX–2014–030) (Notice of Paper Comments
and Immediate Effectiveness of a
Amendments No. 2 and Order Granting Accelerated • Send paper comments in triplicate Proposed Rule Change To Amend Rule
Approval to Proposed Rule Changes, as Modified by
Amendments Nos. 1 and 2, to Establish a New to Secretary, Securities and Exchange 13.8, EDGA Book Feeds, To Adopt a
Market Data Product called the Bats One Feed) Commission, 100 F Street NE., New Market Data Product Known as
(‘‘Bats One Approval Order’’). The Exchange uses Washington, DC 20549–1090. EDGA Summary Depth
the following data feeds to create the Bats One
Feed, each of which are available to vendors: EDGX All submissions should refer to File No.
Depth, EDGA Depth, BYX PITCH Feed, and the SR–BatsBYX–2016–21. This file number August 22, 2016.
BZX PITCH Feed. The Exchange notes that a vendor should be included on the subject line Pursuant to section 19(b)(1) of the
could utilize the proposed BYX Summary Depth if email is used. To help the Securities Exchange Act of 1934 (the
Feed, as well as the summarized depth feeds to be ‘‘Act’’),1 and Rule 19b–4 thereunder,2
proposed by BZX, EDGA, and EDGX to create a Commission process and review your
competing product to the Bats One Feed. Supra comments more efficiently, please use notice is hereby given that on August
note 10. The Exchange represents that a competing only one method. The Commission will 11, 2016, Bats EDGA Exchange, Inc. (the
vendor could obtain these data feeds from each Bats post all comments on the Commission’s ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Exchange on the same latency basis as the system Securities and Exchange Commission
that performs the aggregation and consolidation of Internet Web site (http://www.sec.gov/
the Bats One Feed. See Bats One Approval Order.
(‘‘Commission’’) the proposed rule
mstockstill on DSK3G9T082PROD with NOTICES
While the proposed BYX Summary Depth Feed 20 15 U.S.C. 78s(b)(3)(A). change as described in Items I and II
does not contain the symbol summary or 21 17 CFR 240.19b–4(f)(6). As required under Rule below, which Items have been prepared
consolidated volume data included in the Bats One 19b–4(f)(6)(iii), the Exchange provided the by the Exchange. The Exchange has
Feed, a vendor could include this information in a Commission with written notice of its intent to file
competing product as this information is easily
designated this proposal as a ‘‘non-
the proposed rule change, along with a brief
derivable from the proposed feeds or can be description and the text of the proposed rule
22 17 CFR 200.30–3(a)(12).
obtained from the securities information processors change, at least five business days prior to the date
on the same terms as the Exchange. 1 15 U.S.C. 78s(b)(1).
of filing of the proposed rule change, or such
19 See supra note 16. shorter time as designated by the Commission. 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 21:17 Aug 25, 2016 Jkt 238001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\26AUN1.SGM 26AUN1](https://thefederalregister.org/doc/81_FR_59186/page/1.svg)
![59022 Federal Register / Vol. 81, No. 166 / Friday, August 26, 2016 / Notices
herein are precisely the sort of market Exchange believes that the proposal will 19(b)(3)(A) of the Act 18 and Rule 19b–
data products that the Commission promote competition by enabling the 4(f)(6) thereunder.19
envisioned when it adopted Regulation Exchange to offer a market data product At any time within 60 days of the
NMS. The Commission concluded that similar to that currently offered by the filing of the proposed rule change, the
Regulation NMS—by lessening NYSE and Nasdaq.17 Thus, the Commission summarily may
regulation of the market in proprietary Exchange believes this proposed rule temporarily suspend such rule change if
data—would itself further the Act’s change is necessary to permit fair it appears to the Commission that such
goals of facilitating efficiency and competition among national securities action is necessary or appropriate in the
competition: exchanges. public interest, for the protection of
[E]fficiency is promoted when broker- investors, or otherwise in furtherance of
dealers who do not need the data beyond the C. Self-Regulatory Organization’s the purposes of the Act. If the
prices, sizes, market center identifications of Statement on Comments on the Commission takes such action, the
the NBBO and consolidated last sale Proposed Rule Change Received From Commission shall institute proceedings
information are not required to receive (and Members, Participants, or Others to determine whether the proposed rule
pay for) such data. The Commission also change should be approved or
believes that efficiency is promoted when The Exchange has neither solicited
broker-dealers may choose to receive (and disapproved.
nor received written comments on the
pay for) additional market data based on their IV. Solicitation of Comments
own internal analysis of the need for such proposed rule change.
data.13 Interested persons are invited to
III. Date of Effectiveness of the submit written data, views, and
By removing ‘‘unnecessary regulatory Proposed Rule Change and Timing for arguments concerning the foregoing,
restrictions’’ on the ability of exchanges Commission Action including whether the proposed rule
to sell their own data, Regulation NMS
Because the proposed rule change change is consistent with the Act.
advanced the goals of the Act and the
principles reflected in its legislative does not (i) significantly affect the Comments may be submitted by any of
history. protection of investors or the public the following methods:
In addition, EDGA Summary Depth interest; (ii) impose any significant Electronic Comments
removes impediments to and perfects burden on competition; and (iii) become • Use the Commission’s Internet
the mechanism of a free and open operative for 30 days from the date on comment form (http://www.sec.gov/
market and a national market system by which it was filed, or such shorter time
providing investors with alternative rules/sro.shtml); or
as the Commission may designate, it has • Send an email to rule-comments@
market data and competing with similar become effective pursuant to section
market data products currently offered sec.gov. Please include File No. SR–
by the New York Stock Exchange, Inc. BatsEDGA–2016–19 on the subject line.
BBO of all displayed orders for securities traded on
(‘‘NYSE’’) and the Nasdaq Stock Market each of the Bats Exchanges and for the Bats Paper Comments
LLC (‘‘Nasdaq’’).14 The provision of new Exchanges report quotes under the CTA Plan or the
options for investors to receive market Nasdaq/UTP Plan. The Bats One Feed also contains • Send paper comments in triplicate
data was a primary goal of the market the individual last sale information for the Bats to Secretary, Securities and Exchange
data amendments adopted by Exchanges (collectively with the aggregate BBO, the Commission, 100 F Street NE.,
‘‘Bats One Summary Feed’’). In addition, the Bats Washington, DC 20549–1090.
Regulation NMS.15 One Feed contains optional functionality which
All submissions should refer to File No.
B. Self-Regulatory Organization’s enables recipients to receive aggregated two-sided
quotations from the Bats Exchanges for up to five SR-BatsEDGA–2016–19. This file
Statement on Burden on Competition (5) price levels (‘‘Bats One Premium Feed’’). See number should be included on the
The Exchange does not believe that Exchange Rule 13.8(b). See also Securities subject line if email is used. To help the
Exchange Act Release No. 73918 (December 23, Commission process and review your
the proposed rule change will result in
2014), 79 FR 78920 (December 31, 2014) (File Nos.
any burden on competition that is not SR–EDGX–2014–25; SR–EDGA–2014–25; SR–
comments more efficiently, please use
necessary or appropriate in furtherance BATS–2014–055; SR–BYX–2014–030) (Notice of only one method. The Commission will
of the purposes of the Act.16 The Amendments No. 2 and Order Granting Accelerated post all comments on the Commission’s
Approval to Proposed Rule Changes, as Modified by Internet Web site (http://www.sec.gov/
13 See Securities Exchange Act Release No. 51808 Amendments Nos. 1 and 2, to Establish a New rules/sro.shtml). Copies of the
(June 9, 2005), 70 FR 37496 (June 29, 2005) (File Market Data Product called the Bats One Feed)
(‘‘Bats One Approval Order’’). The Exchange uses submission, all subsequent
No. S7–10–04) (‘‘Regulation NMS Adopting
Release’’). the following data feeds to create the Bats One amendments, all written statements
14 See Nasdaq Rule 7023(a)(1)(C) (describing Feed, each of which are available to vendors: EDGX with respect to the proposed rule
Nasdaq TotalView as a depth-of-book data feed that Depth, EDGA Depth, BYX PITCH Feed, and the change that are filed with the
includes all orders and quotes from all Nasdaq BZX PITCH Feed. The Exchange notes that a vendor
could utilize the proposed EDGA Summary Depth
Commission, and all written
members displayed in the Nasdaq Market Center as
well as the aggregate size of such orders and quotes Feed, as well as the summarized depth feeds to be communications relating to the
at each price level in the execution functionality of proposed by BYX, BZX, and EDGX to create a proposed rule change between the
the Nasdaq Market Center). See NYSE OpenBook competing product to the Bats One Feed. Supra Commission and any person, other than
available at http://www.nyxdata.com/openbook note 8. The Exchange represents that a competing those that may be withheld from the
(last visited July 5, 2016) (providing real-time view vendor could obtain these data feeds from each Bats
of the NYSE limit order book including the Exchange on the same latency basis as the system public in accordance with the
aggregated size at each price level). See Securities that performs the aggregation and consolidation of provisions of 5 U.S.C. 552, will be
Exchange Act Release Nos. 46843 (November 18, the Bats One Feed. See Bats One Approval Order.
mstockstill on DSK3G9T082PROD with NOTICES
2002), 67 FR 70471 (November 22, 2002) (SR– While the proposed EDGA Summary Depth Feed 18 15 U.S.C. 78s(b)(3)(A).
NASD–2002–33) (order approving fees for Nasdaq does not contain the symbol summary or 19 17 CFR 240.19b–4(f)(6). As required under Rule
TotalView); and 45138 (December 7, 2001), 66 FR consolidated volume data included in the Bats One 19b–4(f)(6)(iii), the Exchange provided the
64895 (December 14, 2001) (SR–NYSE–2001–42) Feed, a vendor could include this information in a Commission with written notice of its intent to file
(order approving fees for NYSE OpenBook). competing product as this information is easily the proposed rule change, along with a brief
15 See Regulation NMS Adopting Release, supra derivable from the proposed feeds or can be description and the text of the proposed rule
note 13. obtained from the securities information processors change, at least five business days prior to the date
16 The Bats One Feed is a data feed that on the same terms as the Exchange. of filing of the proposed rule change, or such
disseminates, on a real-time basis, the aggregate 17 See supra note 14. shorter time as designated by the Commission.
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![Federal Register / Vol. 81, No. 166 / Friday, August 26, 2016 / Notices 59023
available for Web site viewing and amend certain Penny Pilot Options 3 Change 1—Penny Pilot Options: Change
printing in the Commission’s Public pricing. Fee for Removing Customer and
Reference Room, 100 F Street NE., The text of the proposed rule change Professional Liquidity in SPY Options
Washington, DC 20549, on official is available on the Exchange’s Web site
business days between the hours of The Exchange currently assesses
at http://nasdaq.cchwallstreet.com, at Customers, Professionals, Firms,7 Non-
10:00 a.m. and 3:00 p.m. Copies of the
the principal office of the Exchange, and NOM Market Makers,8 NOM Market
filing also will be available for
inspection and copying at the principal at the Commission’s Public Reference Makers,9 and Broker-Dealers 10 a $0.50
office of the Exchange. All comments Room. per contract Penny Pilot Options Fee for
received will be posted without change; II. Self-Regulatory Organization’s Removing Liquidity in all NOM Penny
the Commission does not edit personal Statement of the Purpose of, and Pilot Options, except SPY options.
identifying information from Statutory Basis for, the Proposed Rule Today, the Exchange assesses a
submissions. You should submit only Change Customer or Professional that removes
information that you wish to make liquidity in SPY options a Penny Pilot
available publicly. All submissions In its filing with the Commission, the Options Fee for Removing Liquidity of
should refer to File No. SR–BatsEDGA– Exchange included statements $0.47 per contract.11 The Exchange
2016–19, and should be submitted on or concerning the purpose of and basis for proposes to amend note ‘‘3’’ of chapter
before September 16, 2016. the proposed rule change and discussed XV, section 2(1) to increase the
For the Commission, by the Division of any comments it received on the Customer or Professional Penny Pilot
Trading and Markets, pursuant to delegated proposed rule change. The text of these Options Fee for Removing Liquidity in
authority.20 statements may be examined at the SPY options from $0.47 to $0.48 per
Robert W. Errett, places specified in Item IV below. The contract. While the Exchange is
Deputy Secretary. Exchange has prepared summaries, set proposing to increase this fee, the
[FR Doc. 2016–20462 Filed 8–25–16; 8:45 am] forth in sections A, B, and C below, of Exchange believes that the lower fee, as
BILLING CODE 8011–01–P the most significant aspects of such compared to $0.50 per contract in other
statements. Penny Pilot Options, will continue to
incentivize Participants to send
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s Customer and Professional order flow in
COMMISSION Statement of the Purpose of, and SPY.12
[Release No. 34–78634; File No. SR– Statutory Basis for, the Proposed Rule
2. Statutory Basis
NASDAQ–2016–113] Change
1. Purpose The Exchange believes that its
Self-Regulatory Organizations; The proposal is consistent with section 6(b)
NASDAQ Stock Market LLC; Notice of The Exchange proposes to amend of the Act,13 in general, and furthers the
Filing and Immediate Effectiveness of NOM pricing at chapter XV, section 2(1) objectives of sections 6(b)(4) and 6(b)(5)
Proposed Rule Change To Amend the to increase the Customer 4 or of the Act,14 in particular, in that it
Exchange’s Options Pricing provides for the equitable allocation of
Professional 5 Penny Pilot Options Fee
August 22, 2016. for Removing Liquidity in SPY reasonable dues, fees and other charges
Pursuant to section 19(b)(1) of the Options.6 The proposed change is among its members and issuers and
Securities Exchange Act of 1934 discussed below. other persons using its facilities, and is
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 not designed to permit unfair
notice is hereby given that on August 9, 3 The Penny Pilot was established in March 2008
7 The term ‘‘Firm’’ or (‘‘F’’) applies to any
2016, The NASDAQ Stock Market LLC and was last extended in 2016. See Securities
Exchange Act Release Nos. 57579 (March 28, 2008), transaction that is identified by a Participant for
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the clearing in the Firm range at The Options Clearing
73 FR 18587 (April 4, 2008) (SR–NASDAQ–2008–
Securities and Exchange Commission 026) (notice of filing and immediate effectiveness Corporation.
(‘‘SEC’’ or ‘‘Commission’’) the proposed establishing Penny Pilot); and 78037 (June 10, 8 The term ‘‘Non-NOM Market Maker’’ or (‘‘O’’) is
rule change as described in Items I, II, 2016), 81 FR 39299 (June 16, 2016) (SR–NASDAQ– a registered market maker on another options
and III, below, which Items have been 2016–052) (notice of filing and immediate exchange that is not a NOM Market Maker. A Non-
effectiveness extending the Penny Pilot through NOM Market Maker must append the proper Non-
prepared by the Exchange. The December 31, 2016). All Penny Pilot Options listed NOM Market Maker designation to orders routed to
Commission is publishing this notice to on the Exchange can be found at http:// NOM.
solicit comments on the proposed rule www.nasdaqtrader.com/ 9 The term ‘‘NOM Market Maker’’ or (‘‘M’’) is a
change from interested persons. MicroNews.aspx?id=OTA2016-15. Participant that has registered as a Market Maker on
4 The term ‘‘Customer’’ or (‘‘C’’) applies to any NOM pursuant to Chapter VII, Section 2, and must
I. Self-Regulatory Organization’s transaction that is identified by a Participant for also remain in good standing pursuant to Chapter
Statement of the Terms of Substance of clearing in the Customer range at The Options VII, Section 4. In order to receive NOM Market
Clearing Corporation which is not for the account Maker pricing in all securities, the Participant must
the Proposed Rule Change be registered as a NOM Market Maker in at least one
of broker or dealer or for the account of a
The Exchange proposes to amend ‘‘Professional’’ (as that term is defined in Chapter security.
10 The term ‘‘Broker-Dealer’’ or (‘‘B’’) applies to
chapter XV, entitled ‘‘Options Pricing,’’ I, Section 1(a)(48)).
5 The term ‘‘Professional’’ or (‘‘P’’) means any any transaction which is not subject to any of the
at section 2, which governs pricing for other transaction fees applicable within a particular
person or entity that (i) is not a broker or dealer in
Exchange members using the NASDAQ securities, and (ii) places more than 390 orders in category.
mstockstill on DSK3G9T082PROD with NOTICES
Options Market LLC (‘‘NOM’’), the listed options per day on average during a calendar 11 Firms, Non-NOM Market Makers, NOM Market
Exchange’s facility for executing and month for its own beneficial account(s) pursuant to Makers and Broker-Dealers are assessed a $0.50 per
Chapter I, Section 1(a)(48). All Professional orders contract Penny Pilot Options Fee for Removing
routing standardized equity and index Liquidity in SPY options, similar to other Penny
shall be appropriately marked by Participants.
options. The Exchange proposes to 6 Options overlying Standard and Poor’s Pilot Options.
12 SPY options are the largest volume Penny Pilot
Depositary Receipts/SPDRs (‘‘SPY’’) are based on
20 17 CFR 200.30–3(a)(12). Options traded on the Exchange.
the SPDR exchange-traded fund (‘‘ETF’’), which is
1 15 U.S.C. 78s(b)(1). 13 15 U.S.C. 78f(b).
designed to track the performance of the S&P 500
2 17 CFR 240.19b–4. Index. 14 15 U.S.C. 78f(b)(4) and (5).
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Document Created: 2016-08-26 10:40:27
Document Modified: 2016-08-26 10:40:27
| 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 59020 |
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