81 FR 81842 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of Bats BYX Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 223 (November 18, 2016)
Federal Register Volume 81, Issue 223 (November 18, 2016)
| Page Range | 81842-81844 | |
| FR Document | 2016-27745 |
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)] [Notices] [Pages 81842-81844] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27745] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79307; File No. SR-BatsBYX-2016-34] Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of Bats BYX Exchange, Inc. November 14, 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 November 7, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') 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 amend the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to BYX Rules 15.1(a) and (c). --------------------------------------------------------------------------- \5\ 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 [[Page 81843]] 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 increase the fee for orders yielding fee code Z, which results from an order routed to a dark liquidity venue (except through the SLIM \6\ routing strategy), from $0.00200 to $0.00220 per share for securities priced at or above $1.00 and for securities priced below $1.00. The Exchange proposes to implement this amendment to its Fee Schedule immediately.\7\ --------------------------------------------------------------------------- \6\ See Exchange Rule 11.13(b)(3). \7\ The Exchange initially submitted the proposed rule change on October 28, 2016. (SR-BatsBYX-2016-30). On November 3, 2016, the Exchange withdrew SR-BatsBYX-2016-30 and submitted SR-BatsBYX-2016- 31. On November 7, 2016, the Exchange withdrew SR-BatsBYX-2016-31 and submitted this filing. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\8\ in general, and furthers the objectives of Section 6(b)(4),\9\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange believes that its proposal to increase the fee for orders routed to a dark liquidity venue that yield fee code Z represents an equitable allocation of reasonable dues, fees, and other charges among Members and other person using its facilities in that they are designed in part to cover the costs of routing. While Members that route orders to a dark liquidity venue will be paying higher fees due to the proposal, the increased revenue received by the Exchange will be used to fund the Exchange generally, including the cost of maintaining and improving the technology used to handle and route orders from the Exchange as well as programs that the Exchange believes help to attract additional liquidity and thus improve the depth of liquidity available on the Exchange. Accordingly, although the cost of routing is increasing, the Exchange believes that the increase is a modest increase and that higher routing fees will benefit Members in other ways. Furthermore, the Exchange notes that routing through the Exchange is voluntary. Lastly the Exchange also believes that the proposed amendment is non-discriminatory because it applies uniformly to all Members. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f. \9\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- 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 that this change represents a significant departure from previous pricing offered by the Exchange or from pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. 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 \10\ and paragraph (f) of Rule 19b-4 thereunder.\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 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 Number SR-BatsBYX-2016-34 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BatsBYX-2016-34. 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 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-BatsBYX-2016-34, and should be submitted on or before December 9, 2016. [[Page 81844]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-27745 Filed 11-17-16; 8:45 am] BILLING CODE 8011-01-P
![81842 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
baseline. The MSRB also considered Register or within such longer period of information that you wish to make
other economic impacts of the proposed up to 90 days (i) as the Commission may available publicly. All submissions
rule change and has addressed any designate if it finds such longer period should refer to File Number SR–MSRB–
comments relevant to these impacts in to be appropriate and publishes its 2016–15 and should be submitted on or
other sections of this document. reasons for so finding or (ii) as to which before December 9, 2016.
The MSRB does not believe that the the self-regulatory organization For the Commission, pursuant to delegated
proposed rule change will impose any consents, the Commission will: authority.39
additional burdens on competition, (A) By order approve or disapprove Brent J. Fields,
relative to the baseline, that are not such proposed rule change, or Secretary.
necessary or appropriate in furtherance (B) institute proceedings to determine
[FR Doc. 2016–27738 Filed 11–17–16; 8:45 am]
of the purposes of the Exchange Act. whether the proposed rule change
should be disapproved. BILLING CODE 8011–01–P
While the MSRB believes that the
proposed rule changes represent a IV. Solicitation of Comments
reduction in burden compared to the SECURITIES AND EXCHANGE
existing Rule G–10, the MSRB Interested persons are invited to
submit written data, views, and COMMISSION
recognizes that the recordkeeping
requirements associated with the arguments concerning the foregoing, [Release No. 34–79307; File No. SR–
proposed rule change may impose some including whether the proposed rule BatsBYX–2016–34]
initial costs on dealers that currently change is consistent with the Act.
Comments may be submitted by any of Self-Regulatory Organizations; Bats
comply with FINRA Rule 4530 but need BYX Exchange, Inc.; Notice of Filing
to adopt a new set of complaint codes. the following methods:
and Immediate Effectiveness of a
The MSRB also recognizes that dealers Electronic Comments Proposed Rule Change Related to Fees
that are not currently FINRA members • Use the Commission’s Internet for Use of Bats BYX Exchange, Inc.
may experience a greater burden as the comment form (http://www.sec.gov/
proposed recordkeeping requirements rules/sro.shtml); or
November 14, 2016.
may constitute a new activity that they • Send an email to rule-comments@ Pursuant to Section 19(b)(1) of the
have not previously performed. The sec.gov. Please include File Number SR– Securities Exchange Act of 1934 (the
MSRB does not believe, however, that MSRB–2016–15 on the subject line. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
the potentially greater burden on dealers notice is hereby given that on November
that are not FINRA members is Paper Comments 7, 2016, Bats BYX Exchange, Inc. (the
significant enough to constitute a • Send paper comments in triplicate ‘‘Exchange’’ or ‘‘BYX’’) filed with the
burden on competition. to Secretary, Securities and Exchange Securities and Exchange Commission
The MSRB recognizes that the Commission, 100 F Street NE., (‘‘Commission’’) the proposed rule
proposal represents a new requirement Washington, DC 20549. change as described in Items I, II, and
on municipal advisors and that the All submissions should refer to File III below, which Items have been
recordkeeping requirements in Number SR–MSRB–2016–15. This file prepared by the Exchange. The
particular may disproportionately number should be included on the Exchange has designated the proposed
impact small municipal advisors. subject line if email is used. To help the rule change as one establishing or
However, the MSRB does not believe Commission process and review your changing a member due, fee, or other
that the overall burden of the proposed comments more efficiently, please use charge imposed by the Exchange under
rule change is significant or that the only one method. The Commission will Section 19(b)(3)(A)(ii) of the Act 3 and
impact on small municipal advisors will post all comments on the Commission’s Rule 19b–4(f)(2) thereunder,4 which
materially alter the competitive Internet Web site (http://www.sec.gov/ renders the proposed rule change
landscape. To the extent the proposed effective upon filing with the
rules/sro.shtml). Copies of the
rule changes do lead some firms to exit Commission. The Commission is
submission, all subsequent
the market or consolidate, based on the publishing this notice to solicit
amendments, all written statements
SEC’s analysis in its order adopting the comments on the proposed rule change
with respect to the proposed rule
municipal advisor rules, the MSRB from interested persons.
change that are filed with the
believes that the market for municipal Commission, and all written I. Self-Regulatory Organization’s
advisory activities is likely to remain communications relating to the Statement of the Terms of Substance of
competitive.38 proposed rule change between the the Proposed Rule Change
C. Self-Regulatory Organization’s Commission and any person, other than The Exchange filed a proposal to
Statement on Comments on the those that may be withheld from the amend the fee schedule applicable to
Proposed Rule Change Received From public in accordance with the Members 5 and non-members of the
Members, Participants, or Others provisions of 5 U.S.C. 552, will be Exchange pursuant to BYX Rules 15.1(a)
available for Web site viewing and and (c).
Written comments were neither printing in the Commission’s Public
solicited nor received on the proposed The text of the proposed rule change
Reference Room, 100 F Street NE., is available at the Exchange’s Web site
rule change. Washington, DC 20549 on official at www.batstrading.com, at the
III. Date of Effectiveness of the business days between the hours of
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the
mstockstill on DSK3G9T082PROD with NOTICES
39 17 CFR 200.30–3(a)(12).
Commission Action filing also will be available for 1 15 U.S.C. 78s(b)(1).
inspection and copying at the principal 2 17 CFR 240.19b–4.
Within 45 days of the date of 3 15 U.S.C. 78s(b)(3)(A)(ii).
office of the MSRB. All comments
publication of this notice in the Federal 4 17 CFR 240.19b–4(f)(2).
received will be posted without change; 5 The term ‘‘Member’’ is defined as ‘‘any
38 Securities Exchange Act Release No. 70462 the Commission does not edit personal registered broker or dealer that has been admitted
(Sept. 20, 2013), 78 FR 67468, 67608 (Nov. 12, identifying information from to membership in the Exchange.’’ See Exchange
2013). submissions. You should submit only Rule 1.5(n).
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![81844 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
For the Commission, by the Division of FINRA is revising other provisions in claim through that system (‘‘online
Trading and Markets, pursuant to delegated the Codes to conform to existing claim filing system’’).9 Currently, the
authority.12 practice. Codes allow a claimant to file a claim 10
Brent J. Fields, The proposed rule change was either in hard copy or by using the
Secretary. published for comment in the Federal online claim filing system.11 The online
[FR Doc. 2016–27745 Filed 11–17–16; 8:45 am] Register on August 17, 2016.3 The claim filing system allows a claimant to
BILLING CODE 8011–01–P public comment period closed on complete forms, submit documents, and
September 7, 2016. On September 26, pay filing fees online.
2016, FINRA extended the time period In June 2013, FINRA introduced a
SECURITIES AND EXCHANGE in which the Commission must approve separate secure, online service called
COMMISSION the proposed rule change, disapprove the Dispute Resolution Portal (‘‘DR
the proposed rule change, or institute Portal’’) to facilitate interactions among
[Release No. 34–79296; File No. SR–FINRA–
2016–029] proceedings to determine whether to parties, arbitrators, mediators, and
approve or disapprove the proposed FINRA staff on arbitration case-related
Self-Regulatory Organizations; rule change to November 15, 2016.4 The matters. As further discussed below, the
Financial Industry Regulatory Commission received five comment DR Portal includes both a Party Portal
Authority, Inc.; Order Approving Rule letters in response to the Notice.5 On and an Arbitrator and Mediator Portal.
Change Amending the Code of October 28, 2016, FINRA responded to The Party Portal uses an invitation/
Arbitration Procedure for Customer the comment letters received in registration process that provides a way
Disputes and the Code of Arbitration response to the Notice.6 This order to send and receive arbitration and
Procedure for Industry Disputes To grants approval of the proposed rule mediation case documents. For
Require All Parties Other Than Pro Se change. example, once a party notifies FINRA of
Customers To File and Serve the name of the person who should be
II. Description of the Proposed Rule given access to the arbitration or
Pleadings and Documents Through the
Change 7 mediation case file (typically the party’s
FINRA Office of Dispute Resolution’s
Party Portal and To Permit Mediation Background representative), FINRA sends an email
Parties To Use the Portal to the named person with an invitation
In 2004, FINRA implemented an to register on the Party Portal via a
November 14, 2016. online, web-based arbitration claim personalized web address link that
notification and filing system that provides complete access to the
I. Introduction allowed a claimant 8 or claimant’s specified case. Once registered, the
On July 27, 2016, Financial Industry counsel to file voluntarily an arbitration representative can provide other
Regulatory Authority, Inc. (‘‘FINRA’’) individuals (such as legal assistants and
3 See Exchange Act Release No. 78549 (Aug. 11,
filed with the Securities and Exchange co-counsel) with access to appropriate
2016), 81 FR 54858 (Aug. 17, 2016) (File No. SR–
Commission (‘‘Commission’’), pursuant FINRA–2016–029) (‘‘Notice’’). cases on the Party Portal.
to Section 19(b)(1) of the Securities 4 See Letter from Margo A. Hassan, Associate FINRA initially opened the Party
Exchange Act of 1934 (‘‘Exchange Chief Counsel, FINRA, to Lourdes Gonzalez, Portal to a small number of firms to gain
Act’’) 1 and Rule 19b–4 thereunder,2 a Assistant Chief Counsel—Sales Practices, Division experience with the technology and to
proposed rule change to amend the of Trading and Markets, Securities and Exchange incorporate user feedback. Over time,
Commission, dated September 26, 2016.
Code of Arbitration Procedure for 5 See Letters from Steven B. Caruso, Maddox
FINRA expanded access to the Party
Customer Disputes (‘‘Customer Code’’) Hargett & Caruso, P.C., dated August 12, 2016 Portal, and as of July 20, 2015, FINRA
and the Code of Arbitration Procedure (‘‘Caruso Letter’’); David Lagziel, CEO, Conflicteam, allowed all parties to use the Party
for Industry Disputes (‘‘Industry Code’’ dated August 30, 2016 (‘‘Conflicteam Letter’’); Portal voluntarily in all arbitration and
David T. Bellaire, Executive Vice President and mediation cases filed as of that date.
and, together with the Customer Code, General Counsel, Financial Services Institute
‘‘Codes’’), to require all parties, except (‘‘FSI’’), dated September 7, 2016 (‘‘FSI Letter’’); Through the Party Portal, parties can,
customers who are not represented by Nicole Iannarone, Assistant Clinical Professor, and among other things, receive documents
an attorney or other person (‘‘pro se Michael F. Williford, Student Intern, Investor from and send documents to FINRA,
Advocacy Clinic (‘‘IAC’’), Georgia State University receive service 12 of a claim, submit an
customers’’), to use the FINRA Office of College of Law, dated September 7, 2016 (‘‘IAC
Dispute Resolution’s Party Portal Letter’’); and Hugh Berkson, President, Public answer to a claim, submit additional
(‘‘Party Portal’’) to file initial statements Investors Arbitration Bar Association (‘‘PIABA’’), case documents, view the status of a
of claim and to file and serve pleadings dated September 7, 2016 (‘‘PIABA Letter’’). The case, and select arbitrators.
comment letters are available on FINRA’s Web site FINRA has periodically upgraded the
and other documents on FINRA or any at http://www.finra.org, at the principal office of
other party. Under the proposed rule FINRA, at the Commission’s Web site at https:// Party Portal to allow parties to, among
change, FINRA would require parties to www.sec.gov/comments/sr-finra-2016-029/ other things, schedule hearings, receive
use the Party Portal to file and serve finra2016029.shtml, and at the Commission’s Public automated messages when new
Reference Room. documents are posted, see an indication
correspondence relating to discovery 6 See Letter from Margo A. Hassan, Associate
requests, but would not permit parties Chief Counsel, FINRA, to Brent J. Fields, Secretary,
of received documents not yet viewed,
to file documents produced in response Securities and Exchange Commission, dated and send documents to other Party
to discovery requests through the Party October 28, 2016 (‘‘FINRA Letter’’). The FINRA Portal case participants. FINRA believes
Portal. FINRA is also proposing to Letter is available on FINRA’s Web site at http:// that using the online claim filing system
www.finra.org, at the principal office of FINRA, at
amend the Code of Mediation Procedure the Commission’s Web site at https://www.sec.gov/
improves the forum by hastening the
mstockstill on DSK3G9T082PROD with NOTICES
(‘‘Mediation Code’’) to permit mediation comments/sr-finra-2016-029/finra2016029.shtml,
9 See Notice to Members 04–56.
parties to agree to use the Party Portal and at the Commission’s Public Reference Room.
7 The subsequent description of the proposed rule 10 See Rules 12302(a) and 13302(a).
to submit and retrieve all documents
change is substantially excerpted from FINRA’s 11 See FINRA, Arbitration Online Claim Filing,
and other communications. In addition, description in the Notice. See Notice, 81 FR 54858– available at http://www.finra.org/arbitration-and-
66. mediation/online-claim-filing.
12 17 CFR 200.30–3(a)(12). 8 See Rules 12100(e) and 13100(e). The term 12 Service is the process of delivering a pleading
1 15 U.S.C. 78s(b)(1). ‘‘claimant’’ means a party that files the statement (e.g., the statement of claim or answer) or other
2 17 CFR 240.19b–4. of claim that initiates an arbitration proceeding. documents to the opposing party.
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Document Created: 2018-02-14 08:31:38
Document Modified: 2018-02-14 08:31:38
| 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 81842 |
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