81 FR 62195 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Exchange Rule 11.27 To Describe Changes to System Functionality Necessary To Implement the Regulation NMS Plan To Implement a Tick Size Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 174 (September 8, 2016)
Federal Register Volume 81, Issue 174 (September 8, 2016)
| Page Range | 62195-62198 | |
| FR Document | 2016-21648 |
[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)] [Notices] [Pages 62195-62198] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-21648] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78765; File No. SR-BatsBZX-2016-29] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Exchange Rule 11.27 To Describe Changes to System Functionality Necessary To Implement the Regulation NMS Plan To Implement a Tick Size Pilot Program September 2, 2016. I. Introduction On June 29, 2016, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (``Commission'') pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend Exchange Rule 11.27(a) and adopt Exchange Rule 11.27(c) to describe changes to System \3\ functionality to implement the Plan.\4\ The proposed rule change was published for comment in the Federal Register on July 20, 2016.\5\ The Commission received one comment letter from the Exchange in response to the Notice.\6\ On September 1, 2016, the Exchange filed an amendment to the proposed rule change (``Amendment No. 1''), which supersedes and replaces the proposal in its entirety.\7\ --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ The term ``System'' is defined as the ``electronic communications and trading facility designated by the Board of Directors of the Exchange through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away.'' See Exchange Rule 1.5(aa). \4\ See Securities Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015) (``Approval Order''). Unless otherwise specified, capitalized terms used in this rule filing are defined as set forth in the Plan. \5\ Securities Exchange Act Release No. 78334 (July 14, 2016), 81 FR 47187 (``Notice''). \6\ See Letter to Brent J. Fields, Secretary, Commission, from Eric Swanson, General Counsel, Exchange, dated July 26, 2016 (``Exchange Letter''). \7\ In Amendment No. 1, the Exchange proposes to: (1) Apply the changes in proposed Rule 11.27(c) to all Pilot Securities; (2) clarify in Rule 11.27(c)(1) that the increment for BZX Market Orders and Rule 11.27(c)(5) that the increment for Market Maker Peg Orders will be at ``permissible'' increments; (3) state in Rule 11.27(c)(2) that Market Pegged Orders, Rule 11.27(c)(4) that Discretionary Orders, and Rule 11.27(c)(6) that Supplemental Peg Orders will not be accepted in Pilot Securities; (4) clarify in Rule 11.27(c)(3) that Mid-Point Peg Orders may not be alternatively pegged to one minimum price variation inside the same side of the NBBO as the order; (5) delete the proposal to amend Non-Displayed Orders; and (6) clarify how orders subject to Display-Price Sliding will operate when they are unexecutable at the locking price. --------------------------------------------------------------------------- [[Page 62196]] This order provides notice of filing of Amendment No. 1 and approves the proposal, as modified by Amendment No. 1, on an accelerated basis. II. Description of the Amended Proposal Proposed Exchange Rule 11.27(c) would specify the order handling for the following order types in Pilot Securities: (i) BZX Market Orders; (ii) Market Pegged Orders; (iii) Mid-Point Peg Orders; (iv) Discretionary Orders; (v) Market Maker Peg Orders; (vi) Supplemental Peg Orders; and (vii) orders subject to Display-Price Sliding. As proposed, such order handling would apply to all orders entered into the System for Pilot Securities (i.e., Test Group One, Test Group Two, Test Group Three, and the Control Group).\8\ In addition, amended Exchange Rule 11.27(a)(4) would specify that in Test Group One Pilot Securities trades may continue at any price increment that is permitted under Exchange Rule 11.11, Price Variations. --------------------------------------------------------------------------- \8\ The Exchange proposes to clarify in the introduction to Exchange Rule 11.27 that only the provisions in 11.27(a) and 11.27(b) would be in effect during the Pilot Period. --------------------------------------------------------------------------- The Exchange proposes in Exchange Rule 11.27(c) specific procedures for handling, executing, repricing, and displaying certain order types and order type instructions. The provisions in proposed Rule 11.27(c) would apply to all Pilot Securities. Further, the Exchange proposes that only the provisions in Exchange Rules 11.27(a) and (b) would be limited to the Pilot Period. 1. BZX Market Orders Proposed Exchange Rule 11.27(c)(1) provides that for purposes of determining whether the execution price of a BZX Market Order is more than 5 percent worse than the national best bid or offer (``NBBO'') \9\ under current Exchange Rule 11.9(a)(2), the execution price for a buy (sell) will be rounded down (up) to the nearest permissible increment.\10\ --------------------------------------------------------------------------- \9\ See Exchange Rule 1.5(o). \10\ See Amendment No. 1. --------------------------------------------------------------------------- 2. Market Pegged Orders Under Exchange Rule 11.9(c)(8)(B), a Market Pegged Order is pegged to the contra-side NBBO. BZX Users can specify that a Market Pegged Order will offset the inside quote on the contra side of the market by an amount (``Offset Amount''). Under proposed Exchange Rule 11.27(c)(2), the Exchange proposes not to accept Market Pegged Orders, regardless of price, in any Pilot Security.\11\ --------------------------------------------------------------------------- \11\ Id. --------------------------------------------------------------------------- 3. Mid-Point Peg Orders Under Exchange Rule 11.9(c)(9), the System automatically adjusts the price of a Mid-Point Peg Order in response to changes in the NBBO to be pegged to the mid-point of the NBBO, or, alternatively, pegged to the less aggressive midpoint of the NBBO, or one minimum price variation inside the same side of the NBBO as the Mid-Point Peg Order. Under proposed Exchange Rule 11.27(c)(3), the Exchange proposes that Mid-Point Peg Orders for Pilot Securities would not be permitted to alternatively peg to one minimum price variation inside the same side of the NBBO as the order.\12\ --------------------------------------------------------------------------- \12\ Id. --------------------------------------------------------------------------- 4. Discretionary Orders Under Exchange Rule 11.9(c)(10), a Discretionary Order is a limit order with a displayed or non-displayed ranked price and size and an additional non-displayed ``discretionary price.'' The Exchange proposes to not accept Discretionary Orders, regardless of price, in any Pilot Security.\13\ --------------------------------------------------------------------------- \13\ Id. --------------------------------------------------------------------------- 5. Market Maker Peg Orders Under Exchange Rule 11.9(c)(16), a Market Maker Peg Order is a limit order that is automatically priced by the System at the Designated Percentage (as defined in Exchange Rule 11.8(d)) away from the then current national best bid (``NBB'') or national best offer (``NBO''), or if no NBB or NBO, at the Designated Percentage away from the last reported sale from the responsible single plan processor in order to comply with the quotation requirements for Market Makers set forth in Exchange Rule 11.8(d). The Exchange proposes that Market Marker Peg Orders to buy (sell) be rounded up (down) to the nearest permissible increment when the pricing results in an impermissible increment. 6. Supplemental Peg Orders Under Exchange Rule 11.9(c)(19), a Supplemental Peg Order is a non- displayed limit order that posts to the Exchange Book and thereafter is eligible for execution at the NBB for buy orders and NBO for sell orders against routable orders that are equal to or less than the aggregate size of the Supplemental Peg Order interest available at that price. The Exchange proposes not to accept Supplemental Peg Orders, regardless of price, for any Pilot Security.\14\ --------------------------------------------------------------------------- \14\ Id. --------------------------------------------------------------------------- 7. Display-Price Sliding Under Exchange Rule 11.9(g)(1), an order eligible for display by the Exchange, that at the time of entry would create a violation of Rule 610(d) of Regulation NMS by locking or crossing a Protected Quotation of an external market, would be ranked at the locking price in the Exchange Book and displayed by the System at one minimum price variation below the current NBO (for bids) or one minimum price variation above the current NBB (for offers). The ranked and displayed prices of an order subject to Display-Price Sliding may be adjusted once or multiple times depending on the instructions of a User and changes to the prevailing NBBO. The Exchange proposes that orders subject to the Display-Price Sliding that are unexecutable at the locking price will be ranked at the midpoint of the NBBO, and displayed one minimum price variation below (above) the current NBO (NBB) for bids (for offers) for all Pilot Securities. In the Control Group, Test Group One, and Test Group Two, these orders would be initially ranked at the locking price and displayed one minimum price variation away. If a subsequent incoming Post-Only Order arrives on the Exchange book on the opposite side, then the orders subject to Display-Price Sliding would be adjusted to rank at the midpoint of the NBBO and continue to be displayed at one minimum price variation away. In Test Group Three, orders subject to Display- Price Sliding would be ranked at the midpoint of the NBBO and displayed at one minimum price variation away. In addition, the Exchange proposes to cancel orders subject to Display-Price Sliding when the NBBO widens and a contra-side Non-Displayed Order is resting on the Exchange Book at a price that such order would adjust, and the User has selected a single price adjustment. Like today, if the User has selected multiple price adjustments an order subject to Display-Price Sliding would not cancel in this scenario. [[Page 62197]] III. Discussion and Commission's Findings After careful review of the proposed rule change, as modified by Amendment No. 1, the Commission finds that the proposal, as modified by Amendment No. 1,\15\ is consistent with the requirements of the Exchange Act and the rules and regulations thereunder that are applicable to a national securities exchange.\16\ Specifically, the Commission finds that the rule change is consistent with section 6(b)(5) of the Exchange Act, which requires that the rules of a national securities exchange be designed, among other things, 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 are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \15\ The Commission notes that the Exchange Letter was submitted in connection with the Exchange's original proposal. Because the Exchange has filed Amendment No. 1, which supersedes and replaces the Exchange's original proposal in its entirety, the Commission does not believe it is necessary to summarize or respond to the Exchange Letter. \16\ In approving this rule change, the Commission has considered the rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- As noted in the Approval Order, the Plan is by design, an objective, data-driven test to evaluate how a wider tick size would impact trading, liquidity, and market quality of securities of smaller capitalization companies. In addition, the Plan is designed with three Test Groups and a Control Group, to allow analysis and comparison of incremental market structure changes on the Pilot Securities and is designed to produce empirical data that could inform future policy decisions. The Exchange proposes certain changes to modify the operation of the System for compliance with the Plan. For example, the Exchange proposes to clarify how BZX Market Orders and Market Maker Peg Orders would be rounded to permissible increments under the Plan. The Commission finds that these changes are consistent with the section 6(b)(5) of the Exchange Act \17\ and Rule 608 of Regulation NMS \18\ because they implement the Plan and clarify Exchange rules. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b)(5). \18\ 17 CFR 242.608. --------------------------------------------------------------------------- In addition, the Exchange proposes to eliminate certain order types and modify certain order handling functions for Pilot Securities Specifically, the Exchange proposes to no longer accept three order types: Market Peg Orders, Discretionary Orders, and Supplemental Peg Orders. The Exchange noted that these orders are infrequently used in Pilot Securities. The Exchange stated that eliminating these order types for Pilot Securities could reduce System complexity and maintain consistent functionality among all Pilot Securities. Finally, the Exchange noted that these order types would have limited ability to execute under Test Group Three. The Exchange also proposes to change the handling of orders subject to Display-Price Sliding in Pilot Securities. Orders that are subject to Display Price-Sliding in Pilot Securities that are unexecutable at the locking price will be ranked at the midpoint of the NBBO and displayed one minimum variation away. Finally, the Exchange proposes to modify the handling of Mid-Point Peg Orders in Pilot Securities. As proposed, Mid-Point Peg Orders would not be able to alternatively peg to one minimum price variation inside the same side of the NBBO as the order. The Exchange noted that there is a de minimis usage of the alternative pegging function in Pilot Securities that does not justify the complexity and risk to the System that would be created by re-programming the System to support the function. In the Notice, the Commission noted that proposed rule changes, other than those necessary for compliance with Plan, that are targeted at Pilot Securities, that have a disparate impact on different Test Groups and the Control Group, and that are to apply temporarily only for the Pilot Period, could bias the results of the Pilot and undermine the value of the data generated in informing future policy decisions. The Commission notes that the Exchange has modified its proposal so that those proposed changes that are not necessary for compliance with the Plan apply equally to all three Test Groups and the Control Group, and their duration is not limited to the Pilot Period. Thus, the Commission believes that the incremental design of the Pilot is maintained such that the data generated by the Test Groups and the Control Group could allow the Commission and interested parties to compare the change in market structure of each group vis-[agrave]-vis the other groups. Further, the Commission does not believe that the changes would bias the results of the Pilot or undermine the value of the data generated in informing future policy decisions. Accordingly, the Commission finds that the proposed rule change, as modified by Amendment No. 1, is consistent with the requirements of the Exchange Act. IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule Change Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposal, as modified by Amendment No. 1, is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BatsBZX-2016135029 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-2016-29. 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 20549-1090, 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-2016-29 and should be submitted on or before September 29, 2016. [[Page 62198]] V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of notice of Amendment No. 1 in the Federal Register. In Amendment No. 1, the Exchange proposes to: (1) Apply the changes in proposed Rule 11.27(c) to all Pilot Securities; (2) clarify in Rule 11.27(c)(1) that the increment for BZX Market Orders and Rule 11.27(c)(5) that the increment for Market Maker Peg Orders will be at ``permissible'' increments; (3) state in Rule 11.27(c)(2) that Market Pegged Orders, Rule 11.27(c)(4) that Discretionary Orders, and Rule 11.27(c)(6) that Supplemental Peg Orders will not be accepted in Pilot Securities; (4) clarify in Rule 11.27(c)(3) that Mid-Point Peg Orders may not be alternatively pegged to one minimum price variation inside the same side of the NBBO as the order; (5) delete the proposal to amend Non-Displayed Orders; and (6) clarify how orders subject to Display-Price Sliding will operate when they are unexecutable at the locking price. The Commission believes that Amendment No. 1 modifies the proposal so that it does not cause a disparate impact on different Test Groups and the Control Group. In addition, the Commission notes that the Pilot is scheduled to start on October 3, 2016, and accelerated approval would ensure that the rules of the Exchange would be in place for the start of the Pilot. Accordingly, the Commission finds good cause, pursuant to section 19(b)(2) of the Exchange Act,\19\ to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- VI. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Exchange Act,\20\ that the proposed rule change (SR-BatsBZX-2016-29), as modified by Amendment No. 1, be and hereby is approved on an accelerated basis. --------------------------------------------------------------------------- \20\ Id. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-21648 Filed 9-7-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices 62195
value of the data generated in informing should refer to File Number SR– For the Commission, by the Division of
future policy decisions. BatsBYX–2016–17 and should be Trading and Markets, pursuant to delegated
Accordingly, the Commission finds authority.23
submitted on or before September 29,
that the proposed rule change, as 2016. Brent J. Fields,
modified by Amendment No.1, is Secretary.
consistent with the requirements of the V. Accelerated Approval of Proposed [FR Doc. 2016–21649 Filed 9–7–16; 8:45 am]
Exchange Act. Rule Change, as Modified by BILLING CODE 8011–01–P
Amendment No. 1
IV. Solicitation of Comments on
Amendment No. 1 to the Proposed Rule The Commission finds good cause to SECURITIES AND EXCHANGE
Change approve the proposed rule change, as COMMISSION
Interested persons are invited to modified by Amendment No. 1, prior to
submit written data, views, and the thirtieth day after the date of [Release No. 34–78765; File No. SR–
BatsBZX–2016–29]
arguments concerning the foregoing, publication of notice of Amendment No.
including whether the proposal, as 1 in the Federal Register. In Self-Regulatory Organizations; Bats
modified by Amendment No. 1, is Amendment No. 1, the Exchange BZX Exchange, Inc.; Notice of Filing of
consistent with the Exchange Act. proposes to: (1) Apply the changes in Amendment No. 1 and Order Granting
Comments may be submitted by any of proposed Rule 11.27(c) to all Pilot Accelerated Approval of a Proposed
the following methods: Securities; (2) clarify in Rule 11.27(c)(1) Rule Change, as Modified by
Electronic Comments that the increment for BYX Market Amendment No. 1, To Amend
Orders and Rule 11.27(c)(5) that the Exchange Rule 11.27 To Describe
• Use the Commission’s Internet
increment for Market Maker Peg Orders Changes to System Functionality
comment form (http://www.sec.gov/
will be at ‘‘permissible’’ increments; (3) Necessary To Implement the
rules/sro.shtml); or
Regulation NMS Plan To Implement a
• Send an email to rule-comments@ state in Rule 11.27(c)(2) that Market
Pegged Orders, Rule 11.27(c)(4) that Tick Size Pilot Program
sec.gov. Please include File Number SR–
BatsBYX–2016–17 on the subject line. Discretionary Orders, and Rule September 2, 2016.
11.27(c)(6) that Supplemental Peg
Paper Comments I. Introduction
Orders will not be accepted in Pilot
• Send paper comments in triplicate Securities; (4) clarify in Rule 11.27(c)(3) On June 29, 2016, Bats BZX Exchange,
to Secretary, Securities and Exchange that Mid-Point Peg Orders may not be Inc. (‘‘Exchange’’ or ‘‘BZX’’) filed with
Commission, 100 F Street NE., alternatively pegged to one minimum the Securities and Exchange
Washington, DC 20549–1090. price variation inside the same side of Commission (‘‘Commission’’) pursuant
All submissions should refer to File the NBBO as the order; (5) delete the to section 19(b)(1) of the Securities
Number SR–BatsBYX–2016–17. This proposal to amend Non-Displayed Exchange Act of 1934 (‘‘Exchange Act’’
file number should be included on the Orders; and (6) clarify how orders or ‘‘Act’’) 1 and Rule 19b–4 thereunder,2
subject line if email is used. To help the subject to Display-Price Sliding will a proposed rule change to amend
Commission process and review your Exchange Rule 11.27(a) and adopt
operate when they are unexecutable at
comments more efficiently, please use Exchange Rule 11.27(c) to describe
the locking price.
only one method. The Commission will changes to System 3 functionality to
post all comments on the Commission’s The Commission believes that implement the Plan.4 The proposed rule
Internet Web site (http://www.sec.gov/ Amendment No. 1 modifies the change was published for comment in
rules/sro.shtml). Copies of the proposal so that it does not cause a the Federal Register on July 20, 2016.5
submission, all subsequent disparate impact on different Test The Commission received one comment
amendments, all written statements Groups and the Control Group. In letter from the Exchange in response to
with respect to the proposed rule addition, the Commission notes that the the Notice.6 On September 1, 2016, the
change that are filed with the Pilot is scheduled to start on October 3, Exchange filed an amendment to the
Commission, and all written 2016, and accelerated approval would proposed rule change (‘‘Amendment No.
communications relating to the ensure that the rules of the Exchange 1’’), which supersedes and replaces the
proposed rule change between the would be in place for the start of the proposal in its entirety.7
Commission and any person, other than Pilot. Accordingly, the Commission 23 17 CFR 200.30–3(a)(12).
those that may be withheld from the finds good cause, pursuant to Section 1 15 U.S.C. 78s(b)(1).
public in accordance with the 19(b)(2) of the Exchange Act,21 to 2 17 CFR 240.19b–4.
provisions of 5 U.S.C. 552, will be approve the proposed rule change, as 3 The term ‘‘System’’ is defined as the ‘‘electronic
available for Web site viewing and modified by Amendment No. 1, on an communications and trading facility designated by
printing in the Commission’s Public accelerated basis. the Board of Directors of the Exchange through
Reference Room, 100 F Street NE., which securities orders of Users are consolidated
for ranking, execution and, when applicable,
Washington, DC 20549–1090, on official VI. Conclusion routing away.’’ See Exchange Rule 1.5(aa).
business days between the hours of 4 See Securities Exchange Act Release No. 74892
10:00 a.m. and 3:00 p.m. Copies of such It is therefore ordered, pursuant to (May 6, 2015), 80 FR 27513 (May 13, 2015)
filing will also be available for Section 19(b)(2) of the Exchange Act,22 (‘‘Approval Order’’). Unless otherwise specified,
inspection and copying at the principal that the proposed rule change (SR– capitalized terms used in this rule filing are defined
mstockstill on DSK3G9T082PROD with NOTICES
as set forth in the Plan.
office of the Exchange. All comments BatsBYX–2016–17), as modified by 5 Securities Exchange Act Release No. 78334 (July
received will be posted without change; Amendment No. 1, be and hereby is 14, 2016), 81 FR 47187 (‘‘Notice’’).
the Commission does not edit personal approved on an accelerated basis. 6 See Letter to Brent J. Fields, Secretary,
identifying information from Commission, from Eric Swanson, General Counsel,
Exchange, dated July 26, 2016 (‘‘Exchange Letter’’).
submissions. You should submit only 7 In Amendment No. 1, the Exchange proposes to:
information that you wish to make 21 15 U.S.C. 78s(b)(2). (1) Apply the changes in proposed Rule 11.27(c) to
available publicly. All submissions 22 Id. Continued
VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\08SEN1.SGM 08SEN1](https://thefederalregister.org/doc/81_FR_62369/page/1.svg)
![62198 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices
V. Accelerated Approval of Proposed SECURITIES AND EXCHANGE disapprove the proposed rule change.8
Rule Change, as Modified by COMMISSION On August 22, 2016, pursuant to Section
Amendment No. 1 19(b)(2)(B) of the Act 9, the Commission
[Release No. 34–78758; File no. SR– instituted proceedings to determine
The Commission finds good cause to whether to approve or disapprove the
approve the proposed rule change, as NYSEArca–2016–67]
proposed rule change, as modified by
modified by Amendment No. 1, prior to Amendment No. 3.10
Self-Regulatory Organizations; NYSE
the thirtieth day after the date of On August 31, 2016, the Exchange
Arca, Inc.; Notice of Withdrawal of a
publication of notice of Amendment No. withdrew the proposed rule change
Proposed Rule Change To List and
1 in the Federal Register. In (SR–NYSEArca–2016–67).
Trade Shares of the Natixis Seeyond
Amendment No. 1, the Exchange
International Minimum Volatility ETF For the Commission, by the Division of
proposes to: (1) Apply the changes in
Under NYSE Arca Equities Rule 8.600 Trading and Markets, pursuant to delegated
proposed Rule 11.27(c) to all Pilot
authority.11
Securities; (2) clarify in Rule 11.27(c)(1) September 2, 2016.
that the increment for BZX Market Brent J. Fields,
On May 5, 2016, NYSE Arca, Inc. Secretary.
Orders and Rule 11.27(c)(5) that the (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
increment for Market Maker Peg Orders [FR Doc. 2016–21641 Filed 9–7–16; 8:45 am]
with the Securities and Exchange
will be at ‘‘permissible’’ increments; (3) Commission (‘‘Commission’’), pursuant BILLING CODE 8011–01–P
state in Rule 11.27(c)(2) that Market to Section 19(b)(1) of the Securities
Pegged Orders, Rule 11.27(c)(4) that Exchange Act of 1934 (‘‘Act’’) 1 and Rule
Discretionary Orders, and Rule SECURITIES AND EXCHANGE
19b–4 thereunder,2 a proposed rule COMMISSION
11.27(c)(6) that Supplemental Peg change to list and trade shares
Orders will not be accepted in Pilot (‘‘Shares’’) of the Natixis Seeyond [Release No. 34–78747; File No. SR–
Securities; (4) clarify in Rule 11.27(c)(3) International Minimum Volatility ETF BatsBYX–2016–23]
that Mid-Point Peg Orders may not be (‘‘Fund’’) under NYSE Arca Equities
alternatively pegged to one minimum Rule 8.600. The proposed rule change Self-Regulatory Organizations; Bats
price variation inside the same side of was published for comment in the BYX Exchange, Inc.; Notice of Filing
the NBBO as the order; (5) delete the Federal Register on May 25, 2016.3 On and Immediate Effectiveness of a
proposal to amend Non-Displayed June 13, 2016, the Exchange filed Proposed Rule Change Related to Fees
Orders; and (6) clarify how orders Amendment No. 1 to the proposed rule for Use of Bats BYX Exchange, Inc.
subject to Display-Price Sliding will change, which replaced and superseded
operate when they are unexecutable at September 1, 2016.
its entirety the proposed rule change as
the locking price. Pursuant to section 19(b)(1) of the
originally filed.4 On June 22, 2016, the
The Commission believes that Securities Exchange Act of 1934 (the
Exchange filed Amendment No. 2 to the
Amendment No. 1 modifies the ‘‘Act’’),1 and Rule 19b–4 thereunder,2
proposed rule change.5 On July 1, 2016,
proposal so that it does not cause a notice is hereby given that on August
the Exchange filed Amendment No. 3 to
disparate impact on different Test 25, 2016, Bats BYX Exchange, Inc. (the
the proposed rule change, which
Groups and the Control Group. In ‘‘Exchange’’ or ‘‘BYX’’) filed with the
replaced and superseded the proposed
addition, the Commission notes that the Securities and Exchange Commission
rule change as modified by
Pilot is scheduled to start on October 3, (‘‘Commission’’) the proposed rule
Amendments No. 1 and No. 2.6 The
2016, and accelerated approval would change as described in Items I, II and III
Commission has received no comments
ensure that the rules of the Exchange below, which Items have been prepared
on the proposed rule change. On June
would be in place for the start of the by the Exchange. The Exchange has
30, 2016, pursuant to Section 19(b)(2) of
Pilot. Accordingly, the Commission designated the proposed rule change as
the Act,7 the Commission designated a
finds good cause, pursuant to section one establishing or changing a member
longer period within which to approve
19(b)(2) of the Exchange Act,19 to due, fee, or other charge imposed by the
the proposed rule change, disapprove
approve the proposed rule change, as Exchange under section 19(b)(3)(A)(ii)
the proposed rule change, or institute
modified by Amendment No. 1, on an of the Act 3 and Rule 19b–4(f)(2)
proceedings to determine whether to
accelerated basis. thereunder,4 which renders the
1 15
proposed rule change effective upon
VI. Conclusion U.S.C. 78s(b)(1).
2 17
filing with the Commission. The
CFR 240.19b–4.
It is therefore ordered, pursuant to 3 See Securities Exchange Act Release No. 77861 Commission is publishing this notice to
section 19(b)(2) of the Exchange Act,20 (May 19, 2016), 81 FR 33291. solicit comments on the proposed rule
that the proposed rule change (SR–
4 In Amendment No. 1, the Exchange: (1) Narrows change from interested persons.
the universe of investments that may be held by the
BatsBZX–2016–29), as modified by Fund; (2) offers color regarding types of corporate 8 See Securities Exchange Act Release No. 78204,
Amendment No. 1, be and hereby is bonds of foreign issuers that the Fund would
81 FR 44393 (July 7, 2016). The Commission
approved on an accelerated basis. ordinarily hold; (3) clarifies potentially ambiguous
designated a longer period within which to take
language in the filing.
For the Commission, by the Division of 5 In Amendment No. 2, the Exchange proposes
action on the proposed rule change and designated
Trading and Markets, pursuant to delegated August 23, 2016, as the date by which it should
standards for the corporate bonds of foreign issuers approve, disapprove, or institute proceedings to
authority.21 that may be held by the Fund and clarifies how spot determine whether to disapprove the proposed rule
Brent J. Fields, foreign currency transactions would be priced for change.
mstockstill on DSK3G9T082PROD with NOTICES
purposes of calculating the net asset value of the 9 15 U.S.C. 78s(b)(2)(B).
Secretary. Fund. 10 See Securities Exchange Act Release No. 78627,
[FR Doc. 2016–21648 Filed 9–7–16; 8:45 am] 6 In Amendment No. 3, the Exchange revises the
81 FR 59002 (August 26, 2016).
BILLING CODE 8011–01–P standards for the Fund’s investment in non-U.S. 11 17 CFR 200.30–3(a)(12).
equity securities. Amendments No. 1, No. 2, and
1 15 U.S.C. 78s(b)(1).
No. 3 are available at: http://www.sec.gov/
19 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4.
comments/sr-nysearca-2016-67/
20 Id. nysearca201667.shtml. 3 15 U.S.C. 78s(b)(3)(A)(ii).
21 17 CFR 200.30–3(a)(12). 7 15 U.S.C. 78s(b)(2). 4 17 CFR 240.19b–4(f)(2).
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Document Created: 2018-02-09 13:12:23
Document Modified: 2018-02-09 13:12:23
| 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 62195 |
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