81 FR 62225 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay the Implementation of Amendments to the Options Regulatory Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 174 (September 8, 2016)
Federal Register Volume 81, Issue 174 (September 8, 2016)
| Page Range | 62225-62226 | |
| FR Document | 2016-21488 |
[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)] [Notices] [Pages 62225-62226] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-21488] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78746; File No. SR-BatsBZX-2016-52] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delay the Implementation of Amendments to the Options Regulatory Fee September 1, 2016. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 22, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to delay implementation of recently enacted amendments to the fee schedule applicable to Members \5\ and non-Members of the Exchange pursuant to BZX Rules 15.1(a) and (c) regarding its Options Regulatory Fee (``ORF''). --------------------------------------------------------------------------- \5\ A Member is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange recently submitted a proposed rule change to modify the fee schedule applicable to the Exchange's options platform (``BZX Options'') to decrease ORF from $0.0010 per contract side to $0.0008 per contract.\6\ The Exchange also proposed to expand the application of the per-contract ORF to each Member and non-Member for all options transactions cleared by OCC in the ``customer'' range, regardless of the exchange on which the transaction occurs. In order to provide market participants additional time to assess the impact of these changes to ORF on their transactions and order execution scenarios, the Exchange is delaying the implementation date of the fee until February 1, 2017.\7\ --------------------------------------------------------------------------- \6\ See Securities Exchange Release No. 78453 (August 1, 2016), 81 FR 51954 (August 5, 2016) (SR-BatsBZX-2016-42). \7\ The Exchange notes that its fee schedule states that it may only increase or decrease the ORF semi-annually, and any such fee change will be effective on the first business day of February or August. See the Exchange's fee schedule available at http://batstrading.com/support/fee_schedule/bzx/ (dated August 1, 2016). The Exchange initially filed the proposed fee change on August 11, 2016 (SR-BatsBZX-2016-49). On August 19, 2016, the Exchange withdrew SR-BatsBZX-2016-49 and submitted SR-BatsBZX-2016-51. On August 22, 2016, the Exchange withdrew SR-BatsBZX-2016-51 and submitted this filing. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of section 6 of the Act.\8\ The Exchange also believes that its proposal furthers the objectives of section 6(b)(5) of the Act \9\ in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes delaying the implementation of ORF will provide market participants additional time to assess the impact of the ORF on their transactions and order execution scenarios, and that implementation of the fee on February 1, 2017 will benefit investors and the public interest.\10\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f. \9\ 15 U.S.C. 78f(b)(5). \10\ The Exchange notes that other exchanges have delayed the implementation of fees that were previously published by the Commission. See Securities Exchange Act Release Nos. 72605 (July 14, 2014), 79 FR 42066 (July 18, 2014) (SR-Phlx-2014-44); 67068 (May 29, 2012), 77 FR 33256 (June 5, 2012) (SR-Nasdaq-2012-064); 66287 (February 1, 2012), 77 FR 6161 (February 7, 2012) (SR-FINRA-2012- 008); and 57183 (January 22, 2008), 73 FR 5249 (January 29, 2008) (SR-Nasdaq-2008-007). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The ORF is not intended to have any impact on competition. Rather, it is designed to enable the Exchange to recover a material portion of the Exchange's cost related to its regulatory activities. Therefore, the Exchange does not believe delaying the implantation of ORF till February 1, 2017 will have any impact on competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to section 19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 thereunder.\12\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if [[Page 62226]] 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsBZX-2016-52 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-BatsBZX-2016-52. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsBZX-2016-52, and should be submitted on or before September 29, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-21488 Filed 9-7-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices 62225
For the Commission, by the Division of II. Self-Regulatory Organization’s section 6(b)(5) of the Act 9 in that it is
Trading and Markets, pursuant to delegated Statement of the Purpose of, and designed to promote just and equitable
authority.42 Statutory Basis for, the Proposed Rule principles of trade, to foster cooperation
Brent J. Fields, Change and coordination with persons engaged
Secretary. in facilitating transactions in securities,
[FR Doc. 2016–21642 Filed 9–7–16; 8:45 am]
In its filing with the Commission, the to remove impediments to and perfect
Exchange included statements the mechanism of a free and open
BILLING CODE 8011–01–P
concerning the purpose of and basis for market and a national market system
the proposed rule change and discussed and, in general, to protect investors and
SECURITIES AND EXCHANGE any comments it received on the the public interest. The Exchange
COMMISSION proposed rule change. The text of these believes delaying the implementation of
statements may be examined at the ORF will provide market participants
[Release No. 34–78746; File No. SR– places specified in Item IV below. The
BatsBZX–2016–52] additional time to assess the impact of
Exchange has prepared summaries, set the ORF on their transactions and order
Self-Regulatory Organizations; Bats forth in sections A, B, and C below, of execution scenarios, and that
BZX Exchange, Inc.; Notice of Filing the most significant parts of such implementation of the fee on February
and Immediate Effectiveness of a statements. 1, 2017 will benefit investors and the
Proposed Rule Change To Delay the A. Self-Regulatory Organization’s public interest.10
Implementation of Amendments to the Statement of the Purpose of, and the
Options Regulatory Fee B. Self-Regulatory Organization’s
Statutory Basis for, the Proposed Rule Statement on Burden on Competition
September 1, 2016. Change
The Exchange does not believe that
Pursuant to section 19(b)(1) of the 1. Purpose the proposed rule change will impose
Securities Exchange Act of 1934 (the any burden on competition not
‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange recently submitted a
proposed rule change to modify the fee necessary or appropriate in furtherance
notice is hereby given that on August of the purposes of the Act. The ORF is
22, 2016, Bats BZX Exchange, Inc. (the schedule applicable to the Exchange’s
options platform (‘‘BZX Options’’) to not intended to have any impact on
‘‘Exchange’’ or ‘‘BZX’’) filed with the competition. Rather, it is designed to
Securities and Exchange Commission decrease ORF from $0.0010 per contract
side to $0.0008 per contract.6 The enable the Exchange to recover a
(‘‘Commission’’) the proposed rule material portion of the Exchange’s cost
change as described in Items I, II and III Exchange also proposed to expand the
application of the per-contract ORF to related to its regulatory activities.
below, which Items have been prepared Therefore, the Exchange does not
by the Exchange. The Exchange has each Member and non-Member for all
options transactions cleared by OCC in believe delaying the implantation of
designated the proposed rule change as ORF till February 1, 2017 will have any
one establishing or changing a member the ‘‘customer’’ range, regardless of the
exchange on which the transaction impact on competition.
due, fee, or other charge imposed by the
Exchange under section 19(b)(3)(A)(ii) occurs. In order to provide market C. Self-Regulatory Organization’s
of the Act 3 and Rule 19b–4(f)(2) participants additional time to assess Statement on Comments on the
thereunder,4 which renders the the impact of these changes to ORF on Proposed Rule Change Received From
proposed rule change effective upon their transactions and order execution Members, Participants, or Others
filing with the Commission. The scenarios, the Exchange is delaying the
The Exchange has not solicited, and
Commission is publishing this notice to implementation date of the fee until
does not intend to solicit, comments on
solicit comments on the proposed rule February 1, 2017.7
this proposed rule change. The
change from interested persons. 2. Statutory Basis Exchange has not received any written
I. Self-Regulatory Organization’s comments from members or other
The Exchange believes that the interested parties.
Statement of the Terms of Substance of proposed rule change is consistent with
the Proposed Rule Change the requirements of the Act and the III. Date of Effectiveness of the
The Exchange filed a proposal to rules and regulations thereunder that Proposed Rule Change and Timing for
delay implementation of recently are applicable to a national securities Commission Action
enacted amendments to the fee schedule exchange, and, in particular, with the The foregoing rule change has become
applicable to Members 5 and non- requirements of section 6 of the Act.8 effective pursuant to section 19(b)(3)(A)
Members of the Exchange pursuant to The Exchange also believes that its of the Act 11 and paragraph (f) of Rule
BZX Rules 15.1(a) and (c) regarding its proposal furthers the objectives of 19b–4 thereunder.12 At any time within
Options Regulatory Fee (‘‘ORF’’). 60 days of the filing of the proposed rule
The text of the proposed rule change 6 See Securities Exchange Release No. 78453
change, the Commission summarily may
is available at the Exchange’s Web site (August 1, 2016), 81 FR 51954 (August 5, 2016)
(SR–BatsBZX–2016–42).
temporarily suspend such rule change if
at www.batstrading.com, at the 7 The Exchange notes that its fee schedule states
principal office of the Exchange, and at that it may only increase or decrease the ORF semi-
9 15 U.S.C. 78f(b)(5).
the Commission’s Public Reference annually, and any such fee change will be effective 10 The Exchange notes that other exchanges have
Room. on the first business day of February or August. See delayed the implementation of fees that were
the Exchange’s fee schedule available at http:// previously published by the Commission. See
mstockstill on DSK3G9T082PROD with NOTICES
42 17 batstrading.com/support/fee_schedule/bzx/ (dated Securities Exchange Act Release Nos. 72605 (July
CFR 200.30–3(a)(12). 14, 2014), 79 FR 42066 (July 18, 2014) (SR–Phlx–
1 15
August 1, 2016). The Exchange initially filed the
U.S.C. 78s(b)(1). proposed fee change on August 11, 2016 (SR– 2014–44); 67068 (May 29, 2012), 77 FR 33256 (June
2 17 CFR 240.19b–4.
BatsBZX–2016–49). On August 19, 2016, the 5, 2012) (SR–Nasdaq–2012–064); 66287 (February 1,
3 15 U.S.C. 78s(b)(3)(A)(ii). 2012), 77 FR 6161 (February 7, 2012) (SR–FINRA–
Exchange withdrew SR–BatsBZX–2016–49 and
4 17 CFR 240.19b–4(f)(2). submitted SR–BatsBZX–2016–51. On August 22, 2012–008); and 57183 (January 22, 2008), 73 FR
5 A Member is defined as ‘‘any registered broker 2016, the Exchange withdrew SR–BatsBZX–2016– 5249 (January 29, 2008) (SR–Nasdaq–2008–007).
51 and submitted this filing. 11 15 U.S.C. 78s(b)(3)(A).
or dealer that has been admitted to membership in
the Exchange.’’ See Exchange Rule 1.5(n). 8 15 U.S.C. 78f. 12 17 CFR 240.19b–4(f).
VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 E:\FR\FM\08SEN1.SGM 08SEN1](https://thefederalregister.org/doc/81_FR_62399/page/1.svg)
![62226 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices
it appears to the Commission that such For the Commission, by the Division of principal office of the Exchange, and at
action is necessary or appropriate in the Trading and Markets, pursuant to delegated the Commission’s Public Reference
public interest, for the protection of authority.13 Room.
investors, or otherwise in furtherance of Robert W. Errett,
Deputy Secretary. II. Self-Regulatory Organization’s
the purposes of the Act. Statement of the Purpose of, and
[FR Doc. 2016–21488 Filed 9–7–16; 8:45 am]
IV. Solicitation of Comments Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P
Change
Interested persons are invited to
submit written data, views, and In its filing with the Commission, the
arguments concerning the foregoing, SECURITIES AND EXCHANGE Exchange included statements
including whether the proposed rule COMMISSION concerning the purpose of and basis for
change is consistent with the Act. the proposed rule change and discussed
[Release No. 34–78748; File No. SR–
Comments may be submitted by any of BatsEDGA–2016–20]
any comments it received on the
the following methods: proposed rule change. The text of these
Self-Regulatory Organizations; Bats statements may be examined at the
Electronic Comments EDGA Exchange, Inc.; Notice of Filing places specified in Item IV below. The
and Immediate Effectiveness of a Exchange has prepared summaries, set
• Use the Commission’s Internet forth in Sections A, B, and C below, of
comment form (http://www.sec.gov/ Proposed Rule Change Related to Fees
the most significant parts of such
rules/sro.shtml); or September 1, 2016. statements.
• Send an email to rule-comments@ Pursuant to Section 19(b)(1) of the
sec.gov. Please include File No. SR– Securities Exchange Act of 1934 (the A. Self-Regulatory Organization’s
BatsBZX–2016–52 on the subject line. ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and the
notice is hereby given that on August Statutory Basis for, the Proposed Rule
Paper Comments Change
19, 2016, Bats EDGA Exchange, Inc. (the
• Send paper comments in triplicate ‘‘Exchange’’ or ‘‘EDGA’’) filed with the 1. Purpose
to Secretary, Securities and Exchange Securities and Exchange Commission The Commission has approved IEX as
Commission, 100 F Street NE., (‘‘Commission’’) the proposed rule a registered national securities
Washington, DC 20549–1090. change as described in Items I, II and III exchange,7 which is to begin a symbol-
below, which Items have been prepared by-symbol roll out of symbols on August
All submissions should refer to File No.
by the Exchange. The Exchange has 19, 2016.8 As of that date, the Exchange
SR–BatsBZX–2016–52. This file number
designated the proposed rule change as will begin routing orders to IEX and
should be included on the subject line
one establishing or changing a member Members may elect that their orders be
if email is used. To help the
due, fee, or other charge imposed by the routed directly to IEX using the DIRC
Commission process and review your
Exchange under Section 19(b)(3)(A)(ii) routing strategy. The Exchange,
comments more efficiently, please use
of the Act 3 and Rule 19b–4(f)(2) therefore, proposes to amend its fee
only one method. The Commission will
thereunder,4 which renders the schedule to adopt new fee code IX,
post all comments on the Commission’s
proposed rule change effective upon which would be appended to all orders
Internet Web site (http://www.sec.gov/
filing with the Commission. The that are routed to IEX using the DIRC
rules/sro.shtml). Copies of the
Commission is publishing this notice to routing strategy. Orders yielding fee
submission, all subsequent
solicit comments on the proposed rule code IX in securities priced at or above
amendments, all written statements
change from interested persons. $1.00 will be charged a fee of $0.0010
with respect to the proposed rule
change that are filed with the I. Self-Regulatory Organization’s per share. Orders yielding fee code IX in
Commission, and all written Statement of the Terms of Substance of securities priced below $1.00 will
communications relating to the the Proposed Rule Change charged 0.30% of the transaction’s
proposed rule change between the The Exchange filed a rule change to dollar value.
Commission and any person, other than The proposed change would enable
amend the fee schedule applicable to
those that may be withheld from the the Exchange to charge a rate reasonably
Members and non-Members 5 of the
public in accordance with the related to the rate that Bats Trading, Inc.
Exchange pursuant to Exchange Rules
provisions of 5 U.S.C. 552, will be (‘‘Bats Trading’’), the Exchange’s
15.1(a) and (c). Specifically, the
available for Web site viewing and affiliated routing broker-dealer, would
Exchange proposes to adopt new fee
printing in the Commission’s Public be charged for routing orders to IEX,
code IX, which would be appended to
Reference Room, 100 F Street NE., when it does not qualify for a volume
all orders that are routed to the Investors
Washington, DC 20549, on official tier reduced fee.9 As a result, when Bats
Exchange, Inc. (‘‘IEX’’) using the using
business days between the hours of Trading routes an order to IEX which
the Destination Specific (‘‘DIRC’’)
10:00 a.m. and 3:00 p.m. Copies of the removes liquidity against a non-
routing strategy.6
filing also will be available for The text of the proposed rule change displayed order, it will be charged a
inspection and copying at the principal is available at the Exchange’s Web site standard rate of $0.0009 per share in
office of the Exchange. All comments at www.batstrading.com, at the securities priced at or above $1.00 and
received will be posted without change;
7 See Securities Exchange Act Release No. 78101
the Commission does not edit personal
mstockstill on DSK3G9T082PROD with NOTICES
13 17 CFR 200.30–3(a)(12).
(June 17, 2016), 81 FR 41141 (June 23, 2016) (‘‘IEX
identifying information from 1 15 U.S.C. 78s(b)(1).
Approval Order’’).
submissions. You should submit only 2 17 CFR 240.19b–4.
8 See Letter from Brad Katsuyama, CEO, IEX, to
information that you wish to make 3 15 U.S.C. 78s(b)(3)(A)(ii).
IEX’s Sell-Side and Buy-Side Partners, dated June
4 17 CFR 240.19b–4(f)(2).
available publicly. All submissions 17, 2016 (https://www.iextrading.com/) (stating that
5 A Member is defined as ‘‘any registered broker IEX will commence a symbol-by-symbol roll-out on
should refer to File No. SR–BatsBZX–
or dealer that has been admitted to membership in August 19, 2016, concluding on September 2, 2016).
2016–52, and should be submitted on or the Exchange.’’ See Exchange Rule 1.5(n). 9 The Exchange notes that IEX does not currently
before September 29, 2016. 6 See Exchange Rule 11.11(g)(14). offer volume tiered pricing.
VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 E:\FR\FM\08SEN1.SGM 08SEN1](https://thefederalregister.org/doc/81_FR_62399/page/2.svg)
Document Created: 2018-02-09 13:13:00
Document Modified: 2018-02-09 13:13:00
| 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 62225 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR