81 FR 63235 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees for Use of Bats EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 178 (September 14, 2016)

Page Range		63235-63236
FR Document		2016-22030
Federal Register, Volume 81 Issue 178 (Wednesday, September 14, 2016)
[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Notices]
[Pages 63235-63236]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22030]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78789; File No. SR-BatsEDGX-2016-52]


Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees 
for Use of Bats EDGX Exchange, Inc.

September 8, 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 30, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-Members of the Exchange pursuant to EDGX Rules 
15.1(a) and (c).
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    \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).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its fee schedule to remove fee code 
ZA from footnote 1.
    Currently, the Exchange determines the liquidity adding rebate that 
it will provide to Members using the Exchange's fee code and tiered 
pricing structure. Retail orders which add liquidity yielding fee code 
ZA receive a rebate of $0.0034 in securities priced at or above $1.00, 
and a rebate of $0.00003 in securities priced below $1.00. The Exchange 
offers additional rebates depending on the volume tiers for which such 
Member qualifies. As is the case with any rebate on the Fee Schedule, 
to the extent that a Member qualifies for higher rebates than those 
provided under a volume tier, the higher rebate shall apply. Footnote 1 
offers volume tiered rebates ranging from $0.0025 to $0.0033 per share 
to orders yielding fee codes B, V, Y, 3, 4 and ZA. In this case, the 
corresponding tiered volume rebates are lower than the standard rebate 
and therefore do not result in an additional benefit. As a point of 
clarification, the Exchange proposes to remove fee code ZA from 
Footnote 1.
Implementation Date
    The Exchange proposes to implement these amendments to its fee 
schedule as of September 1, 2016.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\6\ in general, and 
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is 
designed to provide for the equitable

[[Page 63236]]

allocation of reasonable dues, fees and other charges among its Members 
and other persons using its facilities. The Exchange believes that its 
rates will continue to represent an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities and the proposed change will not in any way modify such 
rates. Rather, as described above, the proposed change is simply 
designed to remove fee code ZA from footnote 1, which further increases 
the clarity of the fee schedule. Lastly, the Exchange also believes 
that the proposed amendment is non-discriminatory because it applies 
uniformly to all Members.
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange does not believe the proposed rule change will 
impose any burden on competition as it is simply designed to clarify 
the fee schedule to reflect the higher rebate that qualifying orders 
are already receiving.

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 unsolicited 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 \8\ and paragraph (f) of Rule 19b-4 
thereunder.\9\ At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BatsEDGX-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 Number SR-BatsEDGX-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 Number SR-BatsEDGX-2016-52, and should 
be submitted on or before October 5, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-22030 Filed 9-13-16; 8:45 am]
BILLING CODE 8011-01-P
63236 Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices

allocation of reasonable dues, fees and Comments may be submitted by any of SECURITIES AND EXCHANGE
other charges among its Members and the following methods: COMMISSION
other persons using its facilities. The
Exchange believes that its rates will Electronic Comments Proposed Collection; Comment
continue to represent an equitable Request
• Use the Commission’s Internet
allocation of reasonable dues, fees, and comment form (http://www.sec.gov/ Upon Written Request, Copies Available
other charges among Members and other rules/sro.shtml); or From: Securities and Exchange
persons using its facilities and the Commission, Office of FOIA Services,
proposed change will not in any way • Send an email to rule-comments@
sec.gov. Please include File Number SR– 100 F Street NE., Washington, DC
modify such rates. Rather, as described 20549–2736.
above, the proposed change is simply BatsEDGX–2016–52 on the subject line.
designed to remove fee code ZA from Extension:
Paper Comments Rule 17f–1(g), SEC File No. 270–30, OMB
footnote 1, which further increases the Control No. 3235–0290.
clarity of the fee schedule. Lastly, the • Send paper comments in triplicate
Exchange also believes that the Notice is hereby given that pursuant
to Secretary, Securities and Exchange
proposed amendment is non- to the Paperwork Reduction Act of 1995
Commission, 100 F Street NE.,
discriminatory because it applies (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Washington, DC 20549–1090. Securities and Exchange Commission
uniformly to all Members.
All submissions should refer to File (‘‘Commission’’) is soliciting comments
B. Self-Regulatory Organization’s Number SR–BatsEDGX–2016–52. This on the existing collection of information
Statement on Burden on Competition file number should be included on the provided for in Rule 17f–1(g) (17 CFR
This proposed rule change does not subject line if email is used. To help the 240.17f–1(g)), under the Securities
impose any burden on competition that Commission process and review your Exchange Act of 1934 (15 U.S.C. 78a et
is not necessary or appropriate in comments more efficiently, please use seq.). The Commission plans to submit
furtherance of the purposes of the Act. only one method. The Commission will this existing collection of information to
the Office of Management and Budget
The Exchange does not believe the post all comments on the Commission’s
(‘‘OMB’’) for extension and approval.
proposed rule change will impose any Internet Web site (http://www.sec.gov/ Paragraph (g) of Rule 17f–1 requires
burden on competition as it is simply rules/sro.shtml). Copies of the that all reporting institutions (i.e., every
designed to clarify the fee schedule to submission, all subsequent national securities exchange, member
reflect the higher rebate that qualifying amendments, all written statements thereof, registered securities association,
orders are already receiving. with respect to the proposed rule broker, dealer, municipal securities
C. Self-Regulatory Organization’s change that are filed with the dealer, registered transfer agent,
Statement on Comments on the Commission, and all written registered clearing agency, participant
Proposed Rule Change Received From communications relating to the therein, member of the Federal Reserve
Members, Participants, or Others proposed rule change between the System and bank insured by the FDIC)
Commission and any person, other than maintain and preserve a number of
The Exchange has not solicited, and those that may be withheld from the documents related to their participation
does not intend to solicit, comments on public in accordance with the in the Lost and Stolen Securities
this proposed rule change. The Program (‘‘Program’’) under Rule 17f–1.
provisions of 5 U.S.C. 552, will be
Exchange has not received any The following documents must be kept
available for Web site viewing and
unsolicited written comments from in an easily accessible place for three
Members or other interested parties. printing in the Commission’s Public
Reference Room, 100 F Street NE., years, according to paragraph (g): (1)
III. Date of Effectiveness of the Washington, DC 20549, on official Copies of all reports of theft or loss
Proposed Rule Change and Timing for business days between the hours of (Form X–17F–1A) filed with the
Commission Action Commission’s designee: (2) all
10:00 a.m. and 3:00 p.m. Copies of the
agreements between reporting
The foregoing rule change has become filing also will be available for
institutions regarding registration in the
effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal
Program or other aspects of Rule 17f–1;
of the Act 8 and paragraph (f) of Rule office of the Exchange. All comments and (3) all confirmations or other
19b–4 thereunder.9 At any time within received will be posted without change; information received from the
60 days of the filing of the proposed rule the Commission does not edit personal Commission or its designee as a result
change, the Commission summarily may identifying information from of inquiry.
temporarily suspend such rule change if submissions. You should submit only Reporting institutions utilize these
it appears to the Commission that such information that you wish to make records and reports (a) to report missing,
action is necessary or appropriate in the available publicly. All submissions lost, stolen or counterfeit securities to
public interest, for the protection of should refer to File Number SR– the database, (b) to confirm inquiry of
investors, or otherwise in furtherance of BatsEDGX–2016–52, and should be the database, and (c) to demonstrate
the purposes of the Act. submitted on or before October 5, 2016. compliance with Rule 17f–1. The
For the Commission, by the Division of Commission and the reporting
IV. Solicitation of Comments
institutions’ examining authorities
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Trading and Markets, pursuant to delegated
Interested persons are invited to authority.10 utilize these records to monitor the
submit written data, views, and Brent J. Fields,
incidence of thefts and losses incurred
arguments concerning the foregoing, by reporting institutions and to
including whether the proposed rule Secretary. determine compliance with Rule 17f–1.
change is consistent with the Act. [FR Doc. 2016–22030 Filed 9–13–16; 8:45 am] If such records were not retained by
BILLING CODE 8011–01–P reporting institutions, compliance with
8 15 U.S.C. 78s(b)(3)(A). Rule 17f–1 could not be monitored
9 17 CFR 240.19b–4(f). 10 17 CFR 200.30–3(a)(12). effectively.

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Document Created: 2016-09-14 02:26:50
Document Modified: 2016-09-14 02:26:50
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 63235