81 FR 6558 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Exchange's Supplemental Competitive Liquidity Provider Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 25 (February 8, 2016)

Page Range		6558-6560
FR Document		2016-02333
Federal Register, Volume 81 Issue 25 (Monday, February 8, 2016)
[Federal Register Volume 81, Number 25 (Monday, February 8, 2016)]
[Notices]
[Pages 6558-6560]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02333]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77033; File No. SR-BATS-2016-12]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend 
the Pilot Period for the Exchange's Supplemental Competitive Liquidity 
Provider Program

February 2, 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 January 28, 2016, BATS Exchange, Inc. (``Exchange'' or 
``BATS'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
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.
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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 extend the pilot period for the 
Exchange's Supplemental Competitive Liquidity Provider Program (the 
``Program''), which is currently set to expire on January 28, 2016, for 
three months, to expire on April 28, 2016. The Exchange has designated 
this proposal as non-controversial and provided the Commission with the 
notice required by Rule 19b-4(f)(6)(iii) under the Act.\3\
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    \3\ 17 CFR 240.19b-4(f)(6)(iii).
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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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
Background
    On August 30, 2011, the Exchange received approval of rules 
applicable to the qualification, listing and delisting of securities of 
issuers on the Exchange.\4\ More recently, the Exchange received 
approval to operate a pilot program that is designed to incentivize 
certain Market Makers \5\ registered with the Exchange as ETP CLPs, as 
defined in Interpretation and Policy .03 to Rule 11.8, to enhance 
liquidity on the Exchange in certain ETPs \6\ listed on the Exchange 
and thereby qualify to receive part of a daily rebate as part of the 
Program under Interpretation and Policy .03 to Rule 11.8.\7\
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    \4\ See Securities Exchange Act Release No. 65225 (August 30, 
2011), 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
    \5\ As defined in BATS Rules, the term ``Market Maker'' means a 
Member that acts a as a market maker pursuant to Chapter XI of BATS 
Rules.
    \6\ ETP is defined in Interpretation and Policy .03(b)(4) to 
Rule 11.8.
    \7\ See Securities Exchange Act Release No. 72692 (July 28, 
2014), 79 FR 44908 (August 1, 2014) (SR-BATS-2014-022) (``CLP 
Approval Order'').
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    The Program was approved by the Commission on a pilot basis running 
one-year from the date of implementation.\8\ The Commission approved 
the Program on July 28, 2014.\9\ The Exchange implemented the Program 
on July 28, 2014 and the pilot period for the Program was originally 
scheduled to end on July 28, 2015 until it was extended to end on 
October 28, 2015 \10\

[[Page 6559]]

and later extended to January 28, 2016.\11\
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    \8\ See id at 44909.
    \9\ Id.
    \10\ See Securities Exchange Act Release No. 75518 (July 24, 
2015), 80 FR 45566 (July 30, 2015 (SR-BATS-2015-55).
    \11\ See Securities Exchange Act Release No. 76293 (October 28, 
2015), 80 FR 67808 (November 3, 2015 (SR-BATS-2015-96).
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Proposal To Extend the Operation of the Program
    The Exchange established the Program in order to enhance liquidity 
on the Exchange in certain ETPs listed on the Exchange (and thereby 
enhance the Exchange's ability to compete as a listing venue) by 
providing a mechanism by which ETP CLPs compete for part of a daily 
quoting incentive on the basis of providing the most aggressive quotes 
with the greatest amount of size. Such competition has the ability to 
reduce spreads, facilitate the price discovery process, and reduce 
costs for investors trading in such securities, thereby promoting 
capital formation and helping the Exchange to compete as a listing 
venue. The Exchange believes that extending the pilot is appropriate 
because the Exchange is also planning to submit a proposal to make the 
Program permanent. As part of this proposal, the Exchange is also 
preparing a report analyzing the Program. As such, the Exchange 
believes that it is appropriate to extend the current operation of the 
Program for three months in order to provide enough time for the 
Program to continue operating while such proposal is under 
consideration by the Commission. Through this filing, the Exchange 
seeks to extend the current pilot period of the Program until April 28, 
2016.
2. Statutory Basis
    The Exchange believes that its proposal 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(b) of the Act.\12\ In particular, 
the Exchange believes the proposed change furthers the objectives of 
Section 6(b)(5) of the Act,\13\ in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that 
extending the pilot period for the Program is consistent with these 
principles because the Program is reasonably designed to enhance quote 
competition, improve liquidity in securities listed on the Exchange, 
support the quality of price discovery, promote market transparency, 
and increase competition for listings and trade executions, while 
reducing spreads and transaction costs in such securities. Maintaining 
and increasing liquidity in Exchange-listed securities will help raise 
investors' confidence in the fairness of the market and their 
transactions. The extension of the pilot period will allow Exchange 
[sic] to continue to operate the Program while its proposal to make the 
Program permanent is under consideration by the Commission.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
extends an established pilot program for 6 [sic] months, thus allowing 
the Program to enhance competition in both the listings market and in 
competition for market makers. The Program will continue to promote 
competition in the listings market by providing issuers with a vehicle 
for paying the Exchange additional fees in exchange for incentivizing 
tighter spreads and deeper liquidity in listed securities and allow the 
Exchange to continue to compete with similar programs at Nasdaq Stock 
Market LLC \14\ and NYSE Arca Equities, Inc.\15\
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    \14\ See Securities Exchange Act Release No. 69195 (March 20, 
2013), 78 FR 18393 (March 26, 2013) (SR-NASDAQ-2012-137).
    \15\ See Securities Exchange Act Release No. 69335 (April 5, 
2013), 78 FR 35340 (June 12, 2013) (SR-NYSEARCA-2013-34).
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    The Exchange also believes that extending the pilot program for an 
additional 6 [sic] months will allow the Program to continue to enhance 
competition among market participants by creating incentives for market 
makers to compete to make better quality markets. By continuing to 
require that market makers both meet the quoting requirements and also 
compete for the daily financial incentives, the quality of quotes on 
the Exchange will continue to improve. This, in turn, will attract more 
liquidity to the Exchange and further improve the quality of trading in 
exchange-listed securities participating in the Program, which will 
also act to bolster the Exchange's listing business.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(6) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative before 30 days from the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\18\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \18\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Waiver of the operative delay will allow the Exchange to extend the 
Program prior to its expiration on January 28, 2016, which will ensure 
that the Program continues to operate uninterrupted while the Exchange 
and the Commission continue to analyze data regarding the Program. 
Therefore, the Commission hereby waives the 30-day operative delay and 
designates the proposed rule change to be operative upon filing with 
the Commission.\19\
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    \19\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may

[[Page 6560]]

temporarily suspend such rule change if it appears to the Commission 
that such action is necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 No. SR-BATS-2016-12 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-BATS-2016-12. 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 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 No. SR-BATS-2016-12 and should be 
submitted on or before February 29, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
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    \20\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-02333 Filed 2-5-16; 8:45 am]
BILLING CODE 8011-01-P
6558 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices

At any time within 60 days of the received will be posted without change; at www.batstrading.com, at the
filing of the proposed rule change, the the Commission does not edit personal principal office of the Exchange, and at
Commission summarily may identifying information from the Commission’s Public Reference
temporarily suspend such rule change if submissions. You should submit only Room.
it appears to the Commission that such information that you wish to make
II. Self-Regulatory Organization’s
action is necessary or appropriate in the available publicly. All submissions
Statement of the Purpose of, and
public interest, for the protection of should refer to File Number SR–MIAX–
Statutory Basis for, the Proposed Rule
investors, or otherwise in furtherance of 2016–02 and should be submitted on or
Change
the purposes of the Act. If the before February 29, 2016.
Commission takes such action, the In its filing with the Commission, the
For the Commission, by the Division of
Commission shall institute proceedings Trading and Markets, pursuant to delegated Exchange included statements
to determine whether the proposed rule authority.14 concerning the purpose of and basis for
should be approved or disapproved. Robert W. Errett, the proposed rule change and discussed
Deputy Secretary.
any comments it received on the
IV. Solicitation of Comments proposed rule change. The text of these
[FR Doc. 2016–02335 Filed 2–5–16; 8:45 am]
Interested persons are invited to statements may be examined at the
BILLING CODE 8011–01–P
submit written data, views, and places specified in Item IV below. The
arguments concerning the foregoing, Exchange has prepared summaries, set
including whether the proposed rule forth in Sections A, B, and C below, of
SECURITIES AND EXCHANGE
change is consistent with the Act. the most significant parts of such
COMMISSION
Comments may be submitted by any of statements.
the following methods: [Release No. 34–77033; File No. SR–BATS–
2016–12] A. Self-Regulatory Organization’s
Electronic Comments Statement of the Purpose of, and
Self-Regulatory Organizations; BATS Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet
Exchange, Inc.; Notice of Filing and Change
comment form (http://www.sec.gov/
rules/sro.shtml); or Immediate Effectiveness of a Proposed 1. Purpose
• Send an email to rule-comments@ Rule Change To Extend the Pilot
Period for the Exchange’s Background
sec.gov. Please include File Number SR–
MIAX–2016–02 on the subject line. Supplemental Competitive Liquidity On August 30, 2011, the Exchange
Provider Program received approval of rules applicable to
Paper Comments the qualification, listing and delisting of
February 2, 2016.
• Send paper comments in triplicate securities of issuers on the Exchange.4
Pursuant to Section 19(b)(1) of the More recently, the Exchange received
to Brent J. Fields, Secretary, Securities
Securities Exchange Act of 1934 (the approval to operate a pilot program that
and Exchange Commission, 100 F Street
‘‘Act’’),1 and Rule 19b–4 thereunder,2 is designed to incentivize certain Market
NE., Washington, DC 20549–1090.
notice is hereby given that on January Makers 5 registered with the Exchange
All submissions should refer to File 28, 2016, BATS Exchange, Inc.
Number SR–MIAX–2016–02. This file as ETP CLPs, as defined in
(‘‘Exchange’’ or ‘‘BATS’’) filed with the Interpretation and Policy .03 to Rule
number should be included on the Securities and Exchange Commission
subject line if email is used. To help the 11.8, to enhance liquidity on the
(‘‘Commission’’) the proposed rule Exchange in certain ETPs 6 listed on the
Commission process and review your change as described in Items I and II
comments more efficiently, please use Exchange and thereby qualify to receive
below, which Items have been prepared part of a daily rebate as part of the
only one method. The Commission will by the Exchange. The Commission is
post all comments on the Commission’s Program under Interpretation and Policy
publishing this notice to solicit .03 to Rule 11.8.7
Internet Web site (http://www.sec.gov/ comments on the proposed rule change
rules/sro.shtml). Copies of the The Program was approved by the
from interested persons. Commission on a pilot basis running
submission, all subsequent
amendments, all written statements I. Self-Regulatory Organization’s one-year from the date of
with respect to the proposed rule Statement of the Terms of Substance of implementation.8 The Commission
the Proposed Rule Change approved the Program on July 28, 2014.9
change that are filed with the
The Exchange implemented the Program
Commission, and all written The Exchange filed a proposal to on July 28, 2014 and the pilot period for
communications relating to the extend the pilot period for the the Program was originally scheduled to
proposed rule change between the Exchange’s Supplemental Competitive end on July 28, 2015 until it was
Commission and any person, other than Liquidity Provider Program (the extended to end on October 28, 2015 10
those that may be withheld from the ‘‘Program’’), which is currently set to
public in accordance with the expire on January 28, 2016, for three 4 See Securities Exchange Act Release No. 65225
provisions of 5 U.S.C. 552, will be months, to expire on April 28, 2016. (August 30, 2011), 76 FR 55148 (September 6, 2011)
available for Web site viewing and The Exchange has designated this (SR–BATS–2011–018).
printing in the Commission’s Public proposal as non-controversial and
5 As defined in BATS Rules, the term ‘‘Market

Reference Room, 100 F Street NE., Maker’’ means a Member that acts a as a market
provided the Commission with the maker pursuant to Chapter XI of BATS Rules.
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Washington, DC 20549, on official notice required by Rule 19b–4(f)(6)(iii) 6 ETP is defined in Interpretation and Policy
business days between the hours of under the Act.3 .03(b)(4) to Rule 11.8.
10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change 7 See Securities Exchange Act Release No. 72692

filing also will be available for is available at the Exchange’s Web site (July 28, 2014), 79 FR 44908 (August 1, 2014) (SR–
BATS–2014–022) (‘‘CLP Approval Order’’).
inspection and copying at the principal 8 See id at 44909.
office of the Exchange. All comments 14 17 CFR 200.30–3(a)(12). 9 Id.
1 15 U.S.C. 78s(b)(1). 10 See Securities Exchange Act Release No. 75518
2 17 CFR 240.19b–4.
proposed rule’s impact on efficiency, competition, (July 24, 2015), 80 FR 45566 (July 30, 2015 (SR–
and capital formation. See 15 U.S.C. 78c(f). 3 17 CFR 240.19b–4(f)(6)(iii). BATS–2015–55).

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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6559

and later extended to January 28, reasonably designed to enhance quote C. Self-Regulatory Organization’s
2016.11 competition, improve liquidity in Statement on Comments on the
securities listed on the Exchange, Proposed Rule Change Received From
Proposal To Extend the Operation of the
support the quality of price discovery, Members, Participants or Others
Program
promote market transparency, and The Exchange has not solicited, and
The Exchange established the increase competition for listings and does not intend to solicit, comments on
Program in order to enhance liquidity trade executions, while reducing this proposed rule change. The
on the Exchange in certain ETPs listed spreads and transaction costs in such Exchange has not received any written
on the Exchange (and thereby enhance
securities. Maintaining and increasing comments from Members or other
the Exchange’s ability to compete as a
liquidity in Exchange-listed securities interested parties.
listing venue) by providing a
mechanism by which ETP CLPs will help raise investors’ confidence in III. Date of Effectiveness of the
compete for part of a daily quoting the fairness of the market and their Proposed Rule Change and Timing for
incentive on the basis of providing the transactions. The extension of the pilot Commission Action
most aggressive quotes with the greatest period will allow Exchange [sic] to
continue to operate the Program while Because the foregoing proposed rule
amount of size. Such competition has change does not: (i) Significantly affect
the ability to reduce spreads, facilitate its proposal to make the Program
the protection of investors or the public
the price discovery process, and reduce permanent is under consideration by the
interest; (ii) impose any significant
costs for investors trading in such Commission.
burden on competition; and (iii) become
securities, thereby promoting capital B. Self-Regulatory Organization’s operative for 30 days from the date on
formation and helping the Exchange to which it was filed, or such shorter time
Statement on Burden on Competition
compete as a listing venue. The as the Commission may designate, it has
Exchange believes that extending the The Exchange does not believe that become effective pursuant to Section
pilot is appropriate because the the proposed rule change will impose 19(b)(3)(A) of the Act 16 and Rule 19b–
Exchange is also planning to submit a any burden on competition that is not 4(f)(6) thereunder.17
proposal to make the Program necessary or appropriate in furtherance A proposed rule change filed under
permanent. As part of this proposal, the of the purposes of the Act. The Rule 19b–4(f)(6) normally does not
Exchange is also preparing a report proposed rule change extends an become operative before 30 days from
analyzing the Program. As such, the the date of the filing. However, pursuant
established pilot program for 6 [sic]
Exchange believes that it is appropriate to Rule 19b–4(f)(6)(iii),18 the
months, thus allowing the Program to
to extend the current operation of the Commission may designate a shorter
Program for three months in order to enhance competition in both the listings
market and in competition for market time if such action is consistent with the
provide enough time for the Program to protection of investors and the public
continue operating while such proposal makers. The Program will continue to
promote competition in the listings interest.
is under consideration by the The Exchange has asked the
Commission. Through this filing, the market by providing issuers with a
vehicle for paying the Exchange Commission to waive the 30-day
Exchange seeks to extend the current operative delay. The Commission
pilot period of the Program until April additional fees in exchange for
incentivizing tighter spreads and deeper believes that waiving the 30-day
28, 2016. operative delay is consistent with the
liquidity in listed securities and allow
2. Statutory Basis the Exchange to continue to compete protection of investors and the public
The Exchange believes that its interest. Waiver of the operative delay
with similar programs at Nasdaq Stock
proposal is consistent with the will allow the Exchange to extend the
Market LLC 14 and NYSE Arca Equities,
requirements of the Act and the rules Program prior to its expiration on
Inc.15
and regulations thereunder that are January 28, 2016, which will ensure that
The Exchange also believes that the Program continues to operate
applicable to a national securities
extending the pilot program for an uninterrupted while the Exchange and
exchange, and, in particular, with the
additional 6 [sic] months will allow the the Commission continue to analyze
requirements of Section 6(b) of the
Program to continue to enhance data regarding the Program. Therefore,
Act.12 In particular, the Exchange
believes the proposed change furthers competition among market participants the Commission hereby waives the 30-
the objectives of Section 6(b)(5) of the by creating incentives for market makers day operative delay and designates the
Act,13 in that it is designed to prevent to compete to make better quality proposed rule change to be operative
fraudulent and manipulative acts and markets. By continuing to require that upon filing with the Commission.19
practices, to promote just and equitable market makers both meet the quoting At any time within 60 days of the
principles of trade, to foster cooperation requirements and also compete for the filing of the proposed rule change, the
and coordination with persons engaged daily financial incentives, the quality of Commission summarily may
in facilitating transactions in securities, quotes on the Exchange will continue to
16 15 U.S.C. 78s(b)(3)(A).
and to remove impediments to and improve. This, in turn, will attract more
17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
perfect the mechanism of a free and liquidity to the Exchange and further
4(f)(6) requires a self-regulatory organization to give
open market and a national market improve the quality of trading in the Commission written notice of its intent to file
system. The Exchange believes that exchange-listed securities participating the proposed rule change at least five business days
asabaliauskas on DSK5VPTVN1PROD with NOTICES

extending the pilot period for the in the Program, which will also act to prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Program is consistent with these bolster the Exchange’s listing business. Commission. The Exchange has satisfied this
principles because the Program is requirement.
14 See Securities Exchange Act Release No. 69195 18 17 CFR 240.19b–4(f)(6)(iii).
11 See Securities Exchange Act Release No. 76293 (March 20, 2013), 78 FR 18393 (March 26, 2013) 19 For purposes only of waiving the operative
(October 28, 2015), 80 FR 67808 (November 3, 2015 (SR–NASDAQ–2012–137). delay for this proposal, the Commission has
(SR–BATS–2015–96). 15 See Securities Exchange Act Release No. 69335 considered the proposed rule’s impact on
12 15 U.S.C. 78f(b).
(April 5, 2013), 78 FR 35340 (June 12, 2013) (SR– efficiency, competition, and capital formation. See
13 15 U.S.C. 78f(b)(5). NYSEARCA–2013–34). 15 U.S.C. 78c(f).

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6560 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices

temporarily suspend such rule change if should refer to File No. SR–BATS– concerning the purpose of and basis for
it appears to the Commission that such 2016–12 and should be submitted on or the proposed rule change and discussed
action is necessary or appropriate in the before February 29, 2016. any comments it received on the
public interest, for the protection of For the Commission, by the Division of proposed rule change. The text of these
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated statements may be examined at the
the purposes of the Act. If the authority.20 places specified in Item IV below. The
Commission takes such action, the Robert W. Errett, Exchange has prepared summaries, set
Commission shall institute proceedings Deputy Secretary. forth in sections A, B, and C below, of
to determine whether the proposed rule [FR Doc. 2016–02333 Filed 2–5–16; 8:45 am]
the most significant aspects of such
should be approved or disapproved. statements.
BILLING CODE 8011–01–P
IV. Solicitation of Comments A. Self-Regulatory Organization’s
Interested persons are invited to Statement of the Purpose of, and
submit written data, views and SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
arguments concerning the foregoing, COMMISSION Change
including whether the proposal is [Release No. 34–77032; File No. SR–Phlx– 1. Purpose
consistent with the Act. Comments may 2016–04]
The Exchange proposes to decrease
be submitted by any of the following
Self-Regulatory Organizations; the ORF from $0.0035 to $0.0034 as of
methods:
NASDAQ OMX PHLX LLC; Notice of February 1, 2016 to account for
Electronic Comments Filing and Immediate Effectiveness of additional fine revenue, cost reductions
• Use the Commission’s Internet Proposed Rule Change To Amend the and to balance the Exchange’s
comment form (http://www.sec.gov/ Options Regulatory Fee regulatory revenue against the
rules/sro.shtml); or anticipated costs and potential fines.3
• Send an email to rule-comments@ February 2, 2016.
Pursuant to Section 19(b)(1) of the Background
sec.gov. Please include File No. SR–
BATS–2016–12 on the subject line. Securities Exchange Act of 1934 The ORF is assessed to each member
(‘‘Act’’) 1, and Rule 19b–4 thereunder,2 for all options transactions executed or
Paper Comments notice is hereby given that on January cleared by the member that are cleared
• Send paper comments in triplicate 20, 2016, NASDAQ OMX PHLX LLC at The Options Clearing Corporation
to Secretary, Securities and Exchange (‘‘Phlx’’ or ‘‘Exchange’’) filed with the (‘‘OCC’’) in the Customer range (i.e., that
Commission, 100 F Street NE., Securities and Exchange Commission clear in the Customer account of the
Washington, DC 20549–1090. (‘‘SEC’’ or ‘‘Commission’’) the proposed member’s clearing firm at OCC). The
All submissions should refer to File No. rule change as described in Items I, II, Exchange monitors the amount of
SR–BATS–2016–12. This file number and III, below, which Items have been revenue collected from the ORF to
should be included on the subject line prepared by the Exchange. The ensure that it, in combination with other
if email is used. To help the Commission is publishing this notice to regulatory fees and fines, does not
Commission process and review your solicit comments on the proposed rule exceed regulatory costs. The ORF is
comments more efficiently, please use change from interested persons. imposed upon all transactions executed
only one method. The Commission will by a member, even if such transactions
I. Self-Regulatory Organization’s do not take place on the Exchange.4 The
post all comments on the Commission’s Statement of the Terms of Substance of
Internet Web site (http://www.sec.gov/ ORF also includes options transactions
the Proposed Rule Change that are not executed by an Exchange
rules/sro.shtml). Copies of the
The Exchange proposes to make member but are ultimately cleared by an
submission, all subsequent
adjustments to its Options Regulatory Exchange member.5 The ORF is not
amendments, all written statements
with respect to the proposed rule Fee (‘‘ORF’’) by amending Section IV,
change that are filed with the Part D of the Pricing Schedule. 3 The Exchange notes that it previously filed a

While changes to the Pricing rule change to amend the ORF as of February 1,
Commission, and all written 2016 to $0.0040. This rule change supersedes that
Schedule pursuant to this proposal are filing. See Securities Exchange Act Release No.
communications relating to the
effective upon filing, the Exchange has 75749 (August 21, 2015), 80 FR 52073 (August 27,
proposed rule change between the
designated these changes to be operative 2015) (SR–Phlx–2015–71).
Commission and any person, other than 4 The ORF applies to all ‘‘C’’ account origin code
on February 1, 2016.
those that may be withheld from the The text of the proposed rule change orders executed by a member on the Exchange.
public in accordance with the is available on the Exchange’s Web site
Exchange Rules require each member to record the
provisions of 5 U.S.C. 552, will be appropriate account origin code on all orders at the
at http:// time of entry in order to allow the Exchange to
available for Web site viewing and nasdaqomxphlx.cchwallstreet.com/, at properly prioritize and route orders and assess
printing in the Commission’s Public the principal office of the Exchange, and transaction fees pursuant to the Rules of the
Reference Room, 100 F Street NE., at the Commission’s Public Reference
Exchange and report resulting transactions to OCC.
Washington, DC 20549, on official See Exchange Rule 1063, Responsibilities of Floor
Room. Brokers, and Options Floor Procedure Advice F–4,
business days between the hours of Orders Executed as Spreads, Straddles,
10:00 a.m. and 3:00 p.m. Copies of such II. Self-Regulatory Organization’s Combinations or Synthetics and Other Order Ticket
filing will also be available for Statement of the Purpose of, and Marking Requirements. The Exchange represents
asabaliauskas on DSK5VPTVN1PROD with NOTICES

inspection and copying at the principal Statutory Basis for, the Proposed Rule that it has surveillances in place to verify that
members mark orders with the correct account
office of the Exchange. All comments Change origin code.
received will be posted without change; In its filing with the Commission, the 5 In the case where one member both executes a

the Commission does not edit personal Exchange included statements transaction and clears the transaction, the ORF is
identifying information from assessed to the member only once on the execution.
In the case where one member executes a
submissions. You should submit only 20 17 CFR 200.30–3(a)(12). transaction and a different member clears the
information that you wish to make 1 15 U.S.C. 78s(b)(1). transaction, the ORF is assessed only to the member
available publicly. All submissions 2 17 CFR 240.19b–4. who executes the transaction and is not assessed to

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Document Created: 2016-02-06 00:24:22
Document Modified: 2016-02-06 00:24:22
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 6558