81 FR 62219 - Self-Regulatory Organizations; Bats EDGA 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 11.21 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 | 62219-62221 | |
| FR Document | 2016-21647 |
[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)] [Notices] [Pages 62219-62221] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-21647] [[Page 62219]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78763; File No. SR-BatsEDGA-2016-15] Self-Regulatory Organizations; Bats EDGA 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 11.21 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 EDGA Exchange, Inc. (``Exchange'' or ``EDGA'') 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 adopt Exchange Rule 11.21(c) to describe changes to System \3\ functionality to implement the Regulation NMS Plan to Implement a Tick Size Pilot Program (``Plan'' or ``Pilot'').\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. 78330 (July 14, 2016), 81 FR 47223 (``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 11.21(c) to all Pilot Securities; (2) clarify in Rule 11.21(c)(1) that the increment for Market Orders and Rule 11.21(c)(5) that the increment for Market Maker Peg Orders will be at ``permissible'' increments; (3) state in Rule 11.21(c)(2) that orders with a Market Peg instruction, Rule 11.21(c)(4) that orders with a Discretionary Range, and Rule 11.21(c)(6) that Supplemental Peg Orders will not be accepted in Pilot Securities; (4) clarify in Rule 11.21(c)(3) that MidPoint 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 orders with a Non-Displayed instruction; and (6) clarify how orders subject to Display-Price Sliding will operate when they are unexecutable at the locking price. --------------------------------------------------------------------------- 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 11.21(c) would specify the order handling for the following order types in Pilot Securities: (i) Market Orders; (ii) orders with a Market Peg instruction; (iii) MidPoint Peg Orders; (iv) orders with a Discretionary Range instruction; (v) Market Maker Peg Orders; (vi) Supplemental Peg Orders; and (vii) orders subject to the Display-Price Sliding process. 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). Additionally, the Exchange proposes to amend the last sentence of Rule 11.21(a)(4) to specify that the current permissible price increments are set forth under Exchange Rule 11.6(i), Minimum Price Variation. The Exchange proposes in Exchange Rule 11.21(c) specific procedures for handling, executing, repricing and displaying certain order types and order type instructions. The provisions in proposed Rule 11.21(c) would apply to all Pilot Securities. Further, the Exchange proposes that only the provisions in Exchange Rules 11.21(a) and (b) would be limited to the Pilot Period.\8\ --------------------------------------------------------------------------- \8\ The Exchange proposes to clarify in the introduction to Exchange Rule 11.21 that only the provisions in 11.21(a) and 11.21(b) would be in effect during the Pilot Period. --------------------------------------------------------------------------- 1. Market Orders Proposed Exchange Rule 11.21(c)(1) provides that for purposes of determining whether the execution price of a Market Order is more than 5 percent worse than the national best bid or offer (``NBBO'') \9\ under current Exchange Rule 11.8(a)(7), 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 Peg Instruction Under Exchange Rule 11.9(c)(8)(B), an order with a Market Peg instruction is pegged to the contra-side NBBO. EDGA Users can specify that such an order will offset the inside quote on the contra side of the market by an amount (``Offset Amount''). Under proposed Exchange Rule 11.21(c)(2), the Exchange proposes not to accept orders with a Market Peg instruction, regardless of price, in any Pilot Security.\11\ --------------------------------------------------------------------------- \11\ Id. --------------------------------------------------------------------------- 3. MidPoint Peg Orders Under Exchange Rule 11.9(c)(9), the System automatically adjusts the price of a MidPoint 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 MidPoint Peg Order. Under proposed Exchange Rule 11.21(c)(3), the Exchange proposes that MidPoint 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 Range Instruction Under Exchange Rule 11.6(d), an order with a Discretionary Range instructionis 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 orders with a Discretionary Range instruction, regardless of price, in any Pilot Security.\13\ --------------------------------------------------------------------------- \13\ Id. --------------------------------------------------------------------------- 5. Market Maker Peg Orders Under Exchange Rule 11.8(f), 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 11.20(d)(2)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 11.20(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 11.8(g), 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 [[Page 62220]] 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 11.6(l)(1)(B), 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. 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 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: Orders with a Market Peg instruction, orders with a Discretionary Range instruction, 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 MidPoint Peg Orders in Pilot Securities. As proposed, MidPoint 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. [[Page 62221]] 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-BatsEDGA-2016-15 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BatsEDGA-2016-15. 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- BatsEDGA-2016-15 and should be submitted on or before September 29, 2016. 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 11.21(c) to all Pilot Securities; (2) clarify in Rule 11.21(c)(1) that the increment for Market Orders and Rule 11.21(c)(5) that the increment for Market Maker Peg Orders will be at ``permissible'' increments; (3) state in Rule 11.21(c)(2) that orders with a Market Peg instruction, Rule 11.21(c)(4) that orders with a Discretionary Range, and Rule 11.21(c)(6) that Supplemental Peg Orders will not be accepted in Pilot Securities; (4) clarify in Rule 11.21(c)(3) that MidPoint 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 orders with a Non-Displayed instruction; 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-BatsEDGA-2016-15), 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. 2016-21647 Filed 9-7-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices 62219
SECURITIES AND EXCHANGE This order provides notice of filing of Amount’’). Under proposed Exchange
COMMISSION Amendment No. 1 and approves the Rule 11.21(c)(2), the Exchange proposes
proposal, as modified by Amendment not to accept orders with a Market Peg
[Release No. 34–78763; File No. SR–
No. 1, on an accelerated basis. instruction, regardless of price, in any
BatsEDGA–2016–15]
Pilot Security.11
II. Description of the Amended
Self-Regulatory Organizations; Bats Proposal 3. MidPoint Peg Orders
EDGA Exchange, Inc.; Notice of Filing
Proposed Exchange Rule 11.21(c) Under Exchange Rule 11.9(c)(9), the
of Amendment No. 1 and Order
would specify the order handling for the System automatically adjusts the price
Granting Accelerated Approval of a
following order types in Pilot Securities: of a MidPoint Peg Order in response to
Proposed Rule Change, as Modified by
(i) Market Orders; (ii) orders with a changes in the NBBO to be pegged to the
Amendment No. 1, To Amend
Market Peg instruction; (iii) MidPoint mid-point of the NBBO, or,
Exchange Rule 11.21 To Describe
Peg Orders; (iv) orders with a alternatively, pegged to the less
Changes to System Functionality
Discretionary Range instruction; (v) aggressive midpoint of the NBBO, or
Necessary To Implement the
Market Maker Peg Orders; (vi) one minimum price variation inside the
Regulation NMS Plan To Implement a Supplemental Peg Orders; and (vii)
Tick Size Pilot Program same side of the NBBO as the MidPoint
orders subject to the Display-Price Peg Order.
September 2, 2016. Sliding process. As proposed, such Under proposed Exchange Rule
order handling would apply to all 11.21(c)(3), the Exchange proposes that
I. Introduction orders entered into the System for Pilot MidPoint Peg Orders for Pilot Securities
On June 29, 2016, Bats EDGA Securities (i.e., Test Group One, Test would not be permitted to alternatively
Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’) Group Two, Test Group Three, and the peg to one minimum price variation
filed with the Securities and Exchange Control Group). Additionally, the inside the same side of the NBBO as the
Commission (‘‘Commission’’) pursuant Exchange proposes to amend the last order.12
to Section 19(b)(1) of the Securities sentence of Rule 11.21(a)(4) to specify
Exchange Act of 1934 (‘‘Exchange Act’’ that the current permissible price 4. Discretionary Range Instruction
or ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 increments are set forth under Exchange Under Exchange Rule 11.6(d), an
a proposed rule change to adopt Rule 11.6(i), Minimum Price Variation. order with a Discretionary Range
Exchange Rule 11.21(c) to describe The Exchange proposes in Exchange instructionis a limit order with a
changes to System 3 functionality to Rule 11.21(c) specific procedures for displayed or non-displayed ranked price
implement the Regulation NMS Plan to handling, executing, repricing and and size and an additional non-
Implement a Tick Size Pilot Program displaying certain order types and order displayed ‘‘discretionary price.’’ The
(‘‘Plan’’ or ‘‘Pilot’’).4 The proposed rule type instructions. The provisions in Exchange proposes to not accept orders
change was published for comment in proposed Rule 11.21(c) would apply to with a Discretionary Range instruction,
the Federal Register on July 20, 2016.5 all Pilot Securities. Further, the regardless of price, in any Pilot
The Commission received one comment Exchange proposes that only the Security.13
letter from the Exchange in response to provisions in Exchange Rules 11.21(a)
and (b) would be limited to the Pilot 5. Market Maker Peg Orders
the Notice.6 On September 1, 2016, the
Exchange filed an amendment to the Period.8 Under Exchange Rule 11.8(f), a
proposed rule change (‘‘Amendment No. 1. Market Orders Market Maker Peg Order is a limit order
1’’), which supersedes and replaces the that is automatically priced by the
Proposed Exchange Rule 11.21(c)(1) System at the Designated Percentage (as
proposal in its entirety.7
provides that for purposes of defined in Exchange Rule 11.20(d)(2)D))
1 15 U.S.C. 78s(b)(1).
determining whether the execution away from the then current national best
2 17 CFR 240.19b–4. price of a Market Order is more than 5 bid (‘‘NBB’’) or national best offer
3 The term ‘‘System’’ is defined as the ‘‘electronic percent worse than the national best bid (‘‘NBO’’), or if no NBB or NBO, at the
communications and trading facility designated by or offer (‘‘NBBO’’) 9 under current Designated Percentage away from the
the Board of Directors of the Exchange through Exchange Rule 11.8(a)(7), the execution
which securities orders of Users are consolidated last reported sale from the responsible
for ranking, execution and, when applicable,
price for a buy (sell) will be rounded single plan processor in order to comply
routing away.’’ See Exchange Rule 1.5(aa). down (up) to the nearest permissible with the quotation requirements for
4 See Securities Exchange Act Release No. 74892 increment.10 Market Makers set forth in Exchange
(May 6, 2015), 80 FR 27513 (May 13, 2015)
(‘‘Approval Order’’). Unless otherwise specified, 2. Market Peg Instruction Rule 11.20(d). The Exchange proposes
capitalized terms used in this rule filing are defined Under Exchange Rule 11.9(c)(8)(B), an that Market Marker Peg Orders to buy
as set forth in the Plan.
order with a Market Peg instruction is (sell) be rounded up (down) to the
5 Securities Exchange Act Release No. 78330 (July
pegged to the contra-side NBBO. EDGA nearest permissible increment when the
14, 2016), 81 FR 47223 (‘‘Notice’’).
6 See Letter to Brent J. Fields, Secretary, Users can specify that such an order pricing results in an impermissible
Commission, from Eric Swanson, General Counsel, will offset the inside quote on the contra increment.
Exchange, dated July 26, 2016 (‘‘Exchange Letter’’). side of the market by an amount (‘‘Offset
7 In Amendment No. 1, the Exchange proposes to:
6. Supplemental Peg Orders
(1) Apply the changes in proposed Rule 11.21(c) to
same side of the NBBO as the order; (5) delete the
Under Exchange Rule 11.8(g), a
all Pilot Securities; (2) clarify in Rule 11.21(c)(1) Supplemental Peg Order is a non-
that the increment for Market Orders and Rule proposal to amend orders with a Non-Displayed
mstockstill on DSK3G9T082PROD with NOTICES
11.21(c)(5) that the increment for Market Maker Peg instruction; and (6) clarify how orders subject to displayed limit order that posts to the
Orders will be at ‘‘permissible’’ increments; (3) state Display-Price Sliding will operate when they are Exchange Book and thereafter is eligible
unexecutable at the locking price.
in Rule 11.21(c)(2) that orders with a Market Peg
8 The Exchange proposes to clarify in the
for execution at the NBB for buy orders
instruction, Rule 11.21(c)(4) that orders with a and NBO for sell orders against routable
Discretionary Range, and Rule 11.21(c)(6) that introduction to Exchange Rule 11.21 that only the
Supplemental Peg Orders will not be accepted in provisions in 11.21(a) and 11.21(b) would be in
Pilot Securities; (4) clarify in Rule 11.21(c)(3) that effect during the Pilot Period. 11 Id.
9 See Exchange Rule 1.5(o). 12 Id.
MidPoint Peg Orders may not be alternatively
pegged to one minimum price variation inside the 10 See Amendment No. 1. 13 Id.
VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00148 Fmt 4703 Sfmt 4703 E:\FR\FM\08SEN1.SGM 08SEN1](https://thefederalregister.org/doc/81_FR_62393/page/1.svg)
![Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices 62221
IV. Solicitation of Comments on V. Accelerated Approval of Proposed SECURITIES AND EXCHANGE
Amendment No. 1 to the Proposed Rule Rule Change, as Modified by COMMISSION
Change Amendment No. 1
Proposed Collection; Comment
Interested persons are invited to The Commission finds good cause to Request
submit written data, views, and approve the proposed rule change, as
arguments concerning the foregoing, modified by Amendment No. 1, prior to Upon Written Request Copies Available
including whether the proposal, as the thirtieth day after the date of From: Securities and Exchange
modified by Amendment No. 1, is publication of notice of Amendment No. Commission, Office of FOIA Services,
consistent with the Exchange Act. 1 in the Federal Register. In 100 F Street NE., Washington, DC
Comments may be submitted by any of Amendment No. 1, the Exchange 20549–2736.
the following methods: proposes to: (1) Apply the changes in Extension:
proposed Rule 11.21(c) to all Pilot Form 10–K, SEC File No. 270–48, OMB
Electronic Comments Securities; (2) clarify in Rule 11.21(c)(1) Control No. 3235–0063
that the increment for Market Orders
• Use the Commission’s Internet and Rule 11.21(c)(5) that the increment
Notice is hereby given that, pursuant
comment form (http://www.sec.gov/ to the Paperwork Reduction Act of 1995
for Market Maker Peg Orders will be at
rules/sro.shtml); or (44 U.S.C. 3501 et seq.), the Securities
‘‘permissible’’ increments; (3) state in
and Exchange Commission
• Send an email to rule-comments@ Rule 11.21(c)(2) that orders with a
(‘‘Commission’’) is soliciting comments
sec.gov. Please include File Number SR– Market Peg instruction, Rule 11.21(c)(4)
on the collection of information
BatsEDGA–2016–15 on the subject line. that orders with a Discretionary Range,
summarized below. The Commission
and Rule 11.21(c)(6) that Supplemental
Paper Comments plans to submit this existing collection
Peg Orders will not be accepted in Pilot
of information to the Office of
• Send paper comments in triplicate Securities; (4) clarify in Rule 11.21(c)(3)
Management and Budget for extension
to Secretary, Securities and Exchange that MidPoint Peg Orders may not be
and approval.
Commission, 100 F Street NE., alternatively pegged to one minimum
price variation inside the same side of Form 10–K (17 CFR 249.310) is filed
Washington, DC 20549–1090. by issuers of securities to satisfy their
the NBBO as the order; (5) delete the
All submissions should refer to File proposal to amend orders with a Non- annual reporting obligations under to
Number SR–BatsEDGA–2016–15. This Displayed instruction; and (6) clarify Section 13 or 15(d) of the Exchange Act
file number should be included on the how orders subject to Display-Price (‘‘Exchange Act’’) (15 U.S.C. 78m or
subject line if email is used. To help the Sliding will operate when they are 78o(d)). The information provided by
Commission process and review your unexecutable at the locking price. Form 10–K is intended to ensure the
adequacy of information available to
comments more efficiently, please use The Commission believes that investors and securities markets about
only one method. The Commission will Amendment No. 1 modifies the an issuer. Form 10–K takes
post all comments on the Commission’s proposal so that it does not cause a approximately 2003.7884 hours per
Internet Web site (http://www.sec.gov/ disparate impact on different Test response to prepare and is filed by
rules/sro.shtml). Copies of the Groups and the Control Group. In approximately 8,137 respondents. We
submission, all subsequent addition, the Commission notes that the estimate that 75% of the approximately
amendments, all written statements Pilot is scheduled to start on October 3, 2003.7884 hours per response
with respect to the proposed rule 2016, and accelerated approval would (1,502.8413 hours) is prepared by the
change that are filed with the ensure that the rules of the Exchange company for an annual reporting burden
Commission, and all written would be in place for the start of the of 12,228,620 hours (1,502.8413 hours
communications relating to the Pilot. Accordingly, the Commission per response × 8,137 responses).
proposed rule change between the finds good cause, pursuant to Section Written comments are invited on: (a)
Commission and any person, other than 19(b)(2) of the Exchange Act,19 to Whether this proposed collection of
those that may be withheld from the approve the proposed rule change, as information is necessary for the proper
public in accordance with the modified by Amendment No. 1, on an performance of the functions of the
provisions of 5 U.S.C. 552, will be accelerated basis. agency, including whether the
available for Web site viewing and VI. Conclusion information will have practical utility;
printing in the Commission’s Public (b) the accuracy of the agency’s estimate
Reference Room, 100 F Street NE., It is therefore ordered, pursuant to of burden imposed by the collection of
Washington, DC 20549–1090, on official Section 19(b)(2) of the Exchange Act,20 information; (c) ways to enhance the
business days between the hours of that the proposed rule change (SR– quality, utility, and clarity of the
10:00 a.m. and 3:00 p.m. Copies of such BatsEDGA–2016–15), as modified by information collected; and (d) ways to
filing will also be available for Amendment No. 1, be and hereby is minimize the burden of the collection of
inspection and copying at the principal approved on an accelerated basis. information on respondents, including
office of the Exchange. All comments For the Commission, by the Division of through the use of automated collection
received will be posted without change; Trading and Markets, pursuant to delegated techniques or other forms of information
the Commission does not edit personal authority.21 technology. Consideration will be given
identifying information from Brent J. Fields, to comments and suggestions submitted
mstockstill on DSK3G9T082PROD with NOTICES
submissions. You should submit only Secretary. in writing within 60 days of this
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Document Created: 2018-02-09 13:12:49
Document Modified: 2018-02-09 13:12:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 62219 |
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