81 FR 70718 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees To Make a Clarifying Change Related to the Tape B Quoting Tier
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 198 (October 13, 2016)
Federal Register Volume 81, Issue 198 (October 13, 2016)
| Page Range | 70718-70719 | |
| FR Document | 2016-24701 |
[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)] [Notices] [Pages 70718-70719] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24701] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79064; File No. SR-BatsBZX-2016-64] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees To Make a Clarifying Change Related to the Tape B Quoting Tier October 6, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 28, 2016, Bats BZX Exchange, Inc. (``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 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. --------------------------------------------------------------------------- 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 \3\ and non-members of the Exchange pursuant to BZX Rules 15.1(a) and (c) in order to make a clarifying change related to the Tape B Quoting Tier. --------------------------------------------------------------------------- \3\ The term ``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 Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its fee schedule to make clear that the additional rebate per share for orders in Tape B securities associated with meeting the Tape B Quoting Tier (the ``Tape B Rebate'') does not apply to the rebates set forth in footnote 14 part A of the fee schedule (the ``LMM Incentive Program''). Specifically, this means that a Member does not receive the Tape B Rebate on top of the rebate that the LMM receives under the LMM Incentive Program for securities in which they are the LMM.\4\ The Exchange notes this clarification applies only to the rebates for securities in which a Member receives rebates under the LMM Incentive Program and that enrollment in LMP Securities is available to all Members, including LMMs, and Members that act as an LMM are eligible to receive the Tape B Rebate for securities in which the Member is not the LMM. --------------------------------------------------------------------------- \4\ As provided in the fee schedule, the Exchange notes that to the extent a Member qualifies for higher rebates than those provided by a tier for which such Member qualifies, such as the LMM Incentive Program, the higher rebates shall apply. --------------------------------------------------------------------------- The Exchange proposes to implement these amendments to its fee schedule effective immediately. 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.\5\ Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) and 6(b)(5) of the Act,\6\ in that it provides for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange notes that it is not proposing to make any changes to the rebates or fees that it currently charges. As such, the Exchange believes that the change is reasonable, fair and equitable, and non- discriminatory because it is non-substantive and is designed to make sure that the fee schedule is as clear and easily understandable as possible. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f. \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The Exchange does not believe that the changes burden competition, as this change is intended to make the Exchange's fee schedule as clear and easily understandable as possible. 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 \7\ and paragraph (f) of Rule 19b-4 thereunder.\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 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 proposal is consistent with the Act. Comments may be submitted by any of the following methods: [[Page 70719]] 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-2016-64 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-2016-64. 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-BatsBZX-2016-64 and should be submitted on or before November 3, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-24701 Filed 10-12-16; 8:45 am] BILLING CODE 8011-01-P
![70718 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices
available publicly. All submissions II. Self-Regulatory Organization’s Act,6 in that it provides for the equitable
should refer to File Number SR– Statement of the Purpose of, and allocation of reasonable dues, fees and
ISEGemini–2016–11 and should be Statutory Basis for, the Proposed Rule other charges among its Members and
submitted on or before November 3, Change other persons using its facilities. The
2016. Exchange notes that it is not proposing
In its filing with the Commission, the
For the Commission, by the Division of Exchange included statements to make any changes to the rebates or
Trading and Markets, pursuant to delegated concerning the purpose of and basis for fees that it currently charges. As such,
authority.13 the proposed rule change and discussed the Exchange believes that the change is
Brent J. Fields, any comments it received on the reasonable, fair and equitable, and non-
Secretary. proposed rule change. The text of these discriminatory because it is non-
[FR Doc. 2016–24697 Filed 10–12–16; 8:45 am] statements may be examined at the substantive and is designed to make
BILLING CODE 8011–01–P places specified in Item IV below. The sure that the fee schedule is as clear and
Exchange has prepared summaries, set easily understandable as possible.
forth in Sections A, B, and C below, of
B. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE the most significant parts of such
Statement on Burden on Competition
COMMISSION statements.
A. Self-Regulatory Organization’s The Exchange does not believe that
[Release No. 34–79064; File No. SR– Statement of the Purpose of, and the proposed rule change will result in
BatsBZX–2016–64] Statutory Basis for, the Proposed Rule any burden on competition that is not
Change necessary or appropriate in furtherance
Self-Regulatory Organizations; Bats of the purposes of the Act, as amended.
BZX Exchange, Inc.; Notice of Filing 1. Purpose The Exchange does not believe that the
and Immediate Effectiveness of a changes burden competition, as this
The Exchange proposes to amend its
Proposed Rule Change Related to Fees change is intended to make the
fee schedule to make clear that the
To Make a Clarifying Change Related Exchange’s fee schedule as clear and
additional rebate per share for orders in
to the Tape B Quoting Tier easily understandable as possible.
Tape B securities associated with
October 6, 2016. meeting the Tape B Quoting Tier (the
C. Self-Regulatory Organization’s
‘‘Tape B Rebate’’) does not apply to the
Pursuant to Section 19(b)(1) of the Statement on Comments on the
rebates set forth in footnote 14 part A of
Securities Exchange Act of 1934 Proposed Rule Change Received From
the fee schedule (the ‘‘LMM Incentive
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Members, Participants or Others
Program’’). Specifically, this means that
notice is hereby given that on
a Member does not receive the Tape B The Exchange has not solicited, and
September 28, 2016, Bats BZX
Rebate on top of the rebate that the does not intend to solicit, comments on
Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
LMM receives under the LMM Incentive this proposed rule change. The
filed with the Securities and Exchange
Program for securities in which they are Exchange has not received any written
Commission (‘‘Commission’’) the
the LMM.4 The Exchange notes this comments from members or other
proposed rule change as described in
clarification applies only to the rebates interested parties.
Items I, II and III below, which Items
for securities in which a Member
have been prepared by the Exchange. III. Date of Effectiveness of the
receives rebates under the LMM
The Commission is publishing this
Incentive Program and that enrollment Proposed Rule Change and Timing for
notice to solicit comments on the
in LMP Securities is available to all Commission Action
proposed rule change from interested
Members, including LMMs, and
persons. The foregoing rule change has become
Members that act as an LMM are eligible
I. Self-Regulatory Organization’s to receive the Tape B Rebate for effective pursuant to Section 19(b)(3)(A)
Statement of the Terms of Substance of securities in which the Member is not of the Act 7 and paragraph (f) of Rule
the Proposed Rule Change the LMM. 19b–4 thereunder.8 At any time within
The Exchange proposes to implement 60 days of the filing of the proposed rule
The Exchange filed a proposal to these amendments to its fee schedule change, the Commission summarily may
amend the fee schedule applicable to effective immediately. temporarily suspend such rule change if
Members 3 and non-members of the it appears to the Commission that such
Exchange pursuant to BZX Rules 15.1(a) 2. Statutory Basis action is necessary or appropriate in the
and (c) in order to make a clarifying The Exchange believes that the public interest, for the protection of
change related to the Tape B Quoting proposed rule change is consistent with investors, or otherwise in furtherance of
Tier. the requirements of the Act and the the purposes of the Act.
The text of the proposed rule change rules and regulations thereunder that
IV. Solicitation of Comments
is available at the Exchange’s Web site are applicable to a national securities
at www.batstrading.com, at the exchange, and, in particular, with the Interested persons are invited to
principal office of the Exchange, and at requirements of Section 6 of the Act.5 submit written data, views and
the Commission’s Public Reference Specifically, the Exchange believes that arguments concerning the foregoing,
Room. the proposed rule change is consistent including whether the proposal is
with Section 6(b)(4) and 6(b)(5) of the
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consistent with the Act. Comments may
13 17 CFR 200.30–3(a)(12). be submitted by any of the following
1 15 U.S.C. 78s(b)(1). 4 As provided in the fee schedule, the Exchange
2 17 CFR 240.19b–4.
methods:
notes that to the extent a Member qualifies for
3 The term ‘‘Member’’ is defined as ‘‘any higher rebates than those provided by a tier for
6 15 U.S.C. 78f(b)(4) and (5).
registered broker or dealer that has been admitted which such Member qualifies, such as the LMM
to membership in the Exchange.’’ See Exchange Incentive Program, the higher rebates shall apply. 7 15 U.S.C. 78s(b)(3)(A).
Rule 1.5(n). 5 15 U.S.C. 78f. 8 17 CFR 240.19b–4(f).
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![Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices 70719
Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Use the Commission’s Internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–79063; File No. SR–
rules/sro.shtml); or
NYSEArca–2016–132] 1. Purpose
• Send an email to rule-comments@
sec.gov. Please include File No. SR– Self-Regulatory Organizations; NYSE The Exchange proposes to cap the
BatsBZX–2016–64 on the subject line. Lead Market Maker (‘‘LMM’’) Rights
Arca, Inc.; Notice of Filing and
Fees (‘‘Rights Fee’’) charged for lower-
Immediate Effectiveness of Proposed
Paper Comments volume issues to encourage OTP Firms
Rule Change Amending the NYSE Arca
acting as LMMs to add more such issues
• Send paper comments in triplicate Options Fee Schedule to their allocation. The Exchange
to Secretary, Securities and Exchange proposes to implement the fee change
October 6, 2016.
Commission, 100 F Street NE., effective October 1, 2016.
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the The LMM Rights Fee is charged ‘‘on
Securities Exchange Act of 1934 (the a per issue basis to the OTP Firm acting
All submissions should refer to File No. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
SR–BatsBZX–2016–64. This file number as LMM in the issue.’’ 4 Currently, the
notice is hereby given that, on Exchange charges a Rights Fee on each
should be included on the subject line September 23, 2016, NYSE Arca, Inc. issue in a LMM’s allocation, with rates
if email is used. To help the (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed based on the Average National Daily
Commission process and review your with the Securities and Exchange Customer Contracts (‘‘CADV’’). The
comments more efficiently, please use Commission (the ‘‘Commission’’) the monthly Rights Fee ranges from $25 per
only one method. The Commission will proposed rule change as described in month to $3,000 per month. Under the
post all comments on the Commission’s Items I, II, and III below, which Items current Fee Schedule, the more active
Internet Web site (http://www.sec.gov/ have been prepared by the self- an issue is, the higher the Rights Fee, as
rules/sro.shtml). Copies of the regulatory organization. The set forth below:
submission, all subsequent Commission is publishing this notice to
amendments, all written statements solicit comments on the proposed rule Average national daily Monthly issue
with respect to the proposed rule customer contracts fee
change from interested persons.
change that are filed with the
0 to 100 ................................ $25
Commission, and all written I. Self-Regulatory Organization’s 101 to 1,000 ......................... 35
communications relating to the Statement of the Terms of the Substance 1,001 to 2,000 ...................... 75
proposed rule change between the of the Proposed Rule Change 2,001 to 5,000 ...................... 200
Commission and any person, other than 5,001 to 15,000 .................... 750
those that may be withheld from the The Exchange proposes to amend the 15,001 to 100,000 ................ 1,500
public in accordance with the NYSE Arca Options Fee Schedule (‘‘Fee Over 100,000 ........................ 3,000
provisions of 5 U.S.C. 552, will be Schedule’’). The Exchange proposes to
implement the fee change effective Earlier this year, the Exchange
available for Web site viewing and introduced an LMM Rights Fee Discount
printing in the Commission’s Public October 1, 2016. The proposed rule
change is available on the Exchange’s applicable to each issue in an LMM’s
Reference Room, 100 F Street NE., appointment with a CADV above 5,000
Washington, DC 20549, on official Web site at www.nyse.com, at the
principal office of the Exchange, and at based on the amount of monthly (i) total
business days between the hours of electronic volume and/or (ii) total
10:00 a.m. and 3:00 p.m. Copies of such the Commission’s Public Reference
Room. posted volume executed by an LMM in
filing will also be available for the Market Maker range relative to other
inspection and copying at the principal II. Self-Regulatory Organization’s Marker Makers appointed in that issue
office of the Exchange. All comments Statement of the Purpose of, and (the ‘‘Discount’’).5 This Discount was
received will be posted without change; Statutory Basis for, the Proposed Rule designed to incent LMMs that already
the Commission does not edit personal Change transact a significant amount of business
identifying information from on the Exchange and trade
submissions. You should submit only In its filing with the Commission, the competitively in their issues to increase
information that you wish to make self-regulatory organization included their trading and achieve one of the
available publicly. All submissions statements concerning the purpose of, Discounts as well as to incent LMMs to
should refer to File No. SR–BatsBZX– and basis for, the proposed rule change apply for new issue allocation. The
2016–64 and should be submitted on or and discussed any comments it received Exchange now proposes a modification
before November 3, 2016. on the proposed rule change. The text to its Fee schedule that is designed to
of those statements may be examined at encourage LMMs to add lower-volume
For the Commission, by the Division of issues to their appointments.
the places specified in Item IV below.
Trading and Markets, pursuant to delegated Specifically, the Exchange proposes to
authority.9
The Exchange has prepared summaries,
set forth in sections A, B, and C below, cap at 50 issues the Rights Fee it charges
Brent J. Fields, OTP Firms for issues with a CADV of 0
of the most significant parts of such
Secretary. statements. to 100 contracts (‘‘First Tier’’). The
Lhorne on DSK30JT082PROD with NOTICES
[FR Doc. 2016–24701 Filed 10–12–16; 8:45 am]
4 See Fee Schedule, Endnote 2, available
BILLING CODE 8011–01–P
here,https://www.nyse.com/publicdocs/nyse/
markets/arca-options/NYSE_Arca_Options_Fee_
Schedule.pdf.
1 15 U.S.C. 78s(b)(1). 5 See Securities and Exchange Act Release No.
2 15 U.S.C. 78a. 77885 (May 23, 2016), 81 FR 33716 (May 23 [sic],
9 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 2016) (SR–NYSEArca–2016–75).
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Document Created: 2016-10-13 00:53:28
Document Modified: 2016-10-13 00:53:28
| 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 70718 |
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