81 FR 88289 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Non-Substantive Changes to the Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 235 (December 7, 2016)
Federal Register Volume 81, Issue 235 (December 7, 2016)
| Page Range | 88289-88290 | |
| FR Document | 2016-29283 |
[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)] [Notices] [Pages 88289-88290] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29283] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79436; File No. SR-BatsEDGA-2016-29] Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Non-Substantive Changes to the Fee Schedule December 1, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on November 18, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') filed with the Securities and Exchange Commission (the ``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 the Substance of the Proposed Rule Change The Exchange filed a proposal to make several non-substantive changes to the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to Exchange Rules 15.1(a) and (c). --------------------------------------------------------------------------- \5\ A Member is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to make certain clarifying and non- substantive changes to its fee schedule in order to improve formatting, eliminate certain redundancies, increase overall readability, and provide users with straightforward descriptions to augment overall comprehensibility and usability of the existing fee schedule. The Exchange notes that these changes are purely clerical and do not substantively amend any fee or rebate, nor do they alter the manner in which the Exchange assesses fees or calculates rebates. The proposed changes are simply intended to provide greater transparency to market participants regarding how the Exchange assesses fees and calculates rebates. Specifically, the Exchange proposes to:Capitalize the title of the column setting forth each tier's rate under footnotes 3 and 4; replace the phrase ``of at least'' with ``>='' in all required criteria cells under footnotes 3 and 4; amend the description of the required criteria of ``Step- Up Tier 1'' and the ``Step-Up Tier 2'' under footnote 4 to begin with ``MPID adds/has'' and delete the phrase ``[o]n an MPID Basis''. Amending this description is intended to harmonize the format of the tier's criteria with that of other tier's listed under footnotes 3 and 4 which state ``Member has'' or ``Member adds''. 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.\6\ Specifically, the Exchange believes that the proposed rule change is consistent with Sections 6(b)(4) of the Act of the Act [sic],\7\ in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and other persons using any facility or system which the Exchange operates or controls. The Exchange believes that the proposed changes are reasonable and equitable because they are intended to simplify the Exchange's fee schedule and provide greater transparency to market participants regarding how the Exchange assesses fees and calculates rebates. The Exchange notes that these changes are purely clerical and do not substantively amend any fee or rebate, nor do they alter the manner in which the Exchange assesses fees or calculates rebates. The Exchange also believes that the proposal is non-discriminatory because it applies uniformly to all Members. Finally, the Exchange believes that the proposed changes will make the fee schedule clearer and eliminate potential investor confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market [[Page 88290]] system, and, in general, protecting investors and the public interest. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f. \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- 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. To the contrary, the Exchange believes that the [sic] will not impose any burden on competition as the changes are purely clerical and do not amend and [sic] fee or rebate. 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 \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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 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 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-BatsEDGA-2016-29 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-BatsEDGA-2016-29. 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-BatsEDGA-2016-29, and should be submitted on or before December 28, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-29283 Filed 12-6-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices 88289
compliance with the conditions of this change as described in Items I, II, and Exchange notes that these changes are
Order. The Applicant’s chief III below, which Items have been purely clerical and do not substantively
compliance officer will, on at least a prepared by the Exchange. The amend any fee or rebate, nor do they
quarterly basis, conduct testing Exchange has designated the proposed alter the manner in which the Exchange
reasonably sufficient to verify such rule change as one establishing or assesses fees or calculates rebates. The
compliance. Such written policies and changing a member due, fee, or other proposed changes are simply intended
procedures, monitoring and testing will charge imposed by the Exchange under to provide greater transparency to
address, without limitation: (a) Section 19(b)(3)(A)(ii) of the Act 3 and market participants regarding how the
Compliance by the Applicant with its Rule 19b–4(f)(2) thereunder,4 which Exchange assesses fees and calculates
disclosure and consent requirements renders the proposed rule change rebates. Specifically, the Exchange
under this Order; (b) the integrity and effective upon filing with the proposes to:
operation of electronic systems Commission. The Commission is • Capitalize the title of the column
employed by the Applicant in publishing this notice to solicit setting forth each tier’s rate under
connection with its reliance on this comments on the proposed rule change footnotes 3 and 4;
Order; (c) compliance by the Applicant from interested persons. • replace the phrase ‘‘of at least’’ with
with its recordkeeping obligations under ‘‘≥’’ in all required criteria cells under
this Order; and (d) whether there is any I. Self-Regulatory Organization’s footnotes 3 and 4;
evidence of the Applicant engaging in Statement of the Terms of the Substance • amend the description of the
‘‘dumping’’ in connection with its of the Proposed Rule Change required criteria of ‘‘Step-Up Tier 1’’
reliance on this Order.4 The Applicant’s The Exchange filed a proposal to and the ‘‘Step-Up Tier 2’’ under footnote
chief compliance officer will document make several non-substantive changes to 4 to begin with ‘‘MPID adds/has’’ and
the frequency and results of such the fee schedule applicable to delete the phrase ‘‘[o]n an MPID Basis’’.
monitoring and testing, and the Members 5 and non-members of the Amending this description is intended
Applicant will maintain and preserve Exchange pursuant to Exchange Rules to harmonize the format of the tier’s
such documentation in an easily 15.1(a) and (c). criteria with that of other tier’s listed
accessible place for a period of not less The text of the proposed rule change under footnotes 3 and 4 which state
than five years, the first two years in an is available at the Exchange’s Web site ‘‘Member has’’ or ‘‘Member adds’’.
appropriate office of the Applicant, and at www.batstrading.com, at the 2. Statutory Basis
be available for inspection by the staff principal office of the Exchange, and at
the Commission’s Public Reference The Exchange believes that the
of the Commission. proposed rule change is consistent with
Room.
By the Commission. the requirements of the Act and the
Brent J. Fields, II. Self-Regulatory Organization’s rules and regulations thereunder that
Secretary. Statement of the Purpose of, and are applicable to a national securities
[FR Doc. 2016–29299 Filed 12–6–16; 8:45 am] Statutory Basis for, the Proposed Rule exchange, and, in particular, with the
BILLING CODE 8011–01–P
Change requirements of Section 6 of the Act.6
In its filing with the Commission, the Specifically, the Exchange believes that
Exchange included statements the proposed rule change is consistent
SECURITIES AND EXCHANGE concerning the purpose of and basis for with Sections 6(b)(4) of the Act of the
COMMISSION the proposed rule change and discussed Act [sic],7 in that it provides for the
[Release No. 34–79436; File No. SR– any comments it received on the equitable allocation of reasonable dues,
BatsEDGA–2016–29] proposed rule change. The text of these fees and other charges among members
statements may be examined at the and other persons using any facility or
Self-Regulatory Organizations; Bats places specified in Item IV below. The system which the Exchange operates or
EDGA Exchange, Inc.; Notice of Filing Exchange has prepared summaries, set controls. The Exchange believes that the
and Immediate Effectiveness of a forth in Sections A, B, and C below, of proposed changes are reasonable and
Proposed Rule Change To Make Non- the most significant parts of such equitable because they are intended to
Substantive Changes to the Fee statements. simplify the Exchange’s fee schedule
Schedule and provide greater transparency to
A. Self-Regulatory Organization’s market participants regarding how the
December 1, 2016. Statement of the Purpose of, and Exchange assesses fees and calculates
Pursuant to Section 19(b)(1) of the Statutory Basis for, the Proposed Rule rebates. The Exchange notes that these
Securities Exchange Act of 1934 (the Change changes are purely clerical and do not
‘‘Act’’),1 and Rule 19b–4 thereunder,2 substantively amend any fee or rebate,
1. Purpose
notice is hereby given that on November nor do they alter the manner in which
18, 2016, Bats EDGA Exchange, Inc. (the The Exchange proposes to make
the Exchange assesses fees or calculates
‘‘Exchange’’ or ‘‘EDGA’’) filed with the certain clarifying and non-substantive
rebates. The Exchange also believes that
Securities and Exchange Commission changes to its fee schedule in order to
the proposal is non-discriminatory
(the ‘‘Commission’’) the proposed rule improve formatting, eliminate certain
because it applies uniformly to all
redundancies, increase overall
Members. Finally, the Exchange
4 See Report of the Securities and Exchange readability, and provide users with
asabaliauskas on DSK3SPTVN1PROD with NOTICES
believes that the proposed changes will
Commission, Investment Trusts and Investment straightforward descriptions to augment
Companies, H.R. Doc. No. 279, 76th Cong., 2d Sess., make the fee schedule clearer and
overall comprehensibility and usability
pt. 3, at 2581, 2589 (1939); Hearings on S.3580 eliminate potential investor confusion,
Before a Subcommittee of the Commission on of the existing fee schedule. The
thereby removing impediments to and
Banking and Currency, 76th Cong., 3d Sess. 209,
212–23 (1940); Hearings on S. 3580 Before the 3 15U.S.C. 78s(b)(3)(A)(ii).
perfecting the mechanism of a free and
Subcomm. of the Comm. on Banking and Currency, 4 17CFR 240.19b–4(f)(2). open market and a national market
76th Cong., 3d Sess. 322 (1940). 5 A Member is defined as ‘‘any registered broker
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f.
or dealer that has been admitted to membership in
2 17 CFR 240.19b–4. the Exchange.’’ See Exchange Rule 1.5(n). 7 15 U.S.C. 78f(b)(4).
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![88290 Federal Register / Vol. 81, No. 235 / Wednesday, December 7, 2016 / Notices
system, and, in general, protecting file number should be included on the (‘‘BX’’ or ‘‘Exchange’’) a limited
investors and the public interest. subject line if email is used. To help the exemption from the Sub-Penny Rule in
Commission process and review your connection with the operation of the
B. Self-Regulatory Organization’s
comments more efficiently, please use Exchange’s Retail Price Improvement
Statement on Burden on Competition
only one method. The Commission will Program (‘‘RPI Program’’).2 The limited
The Exchange does not believe that post all comments on the Commission’s exemption was granted concurrently
the proposed rule change will result in Internet Web site (http://www.sec.gov/ with the Commission’s approval of the
any burden on competition that is not rules/sro.shtml). Copies of the Exchange’s proposal to adopt the RPI
necessary or appropriate in furtherance submission, all subsequent Program on a one-year pilot term.3 On
of the purposes of the Act, as amended. amendments, all written statements November 20, 2015, the Commission
To the contrary, the Exchange believes with respect to the proposed rule extended the temporary exemption until
that the [sic] will not impose any change that are filed with the December 2016 concurrently with an
burden on competition as the changes Commission, and all written immediately effective filing that
are purely clerical and do not amend communications relating to the extended the operation of the RPI
and [sic] fee or rebate. proposed rule change between the Program until December 1, 2016.4
C. Self-Regulatory Organization’s Commission and any person, other than The Exchange now seeks to extend
Statement on Comments on the those that may be withheld from the the exemption until December 1, 2017.5
Proposed Rule Change Received From public in accordance with the The Exchange’s request was made in
Members, Participants, or Others provisions of 5 U.S.C. 552, will be conjunction with an immediately
available for Web site viewing and effective filing that extends the
The Exchange has not solicited, and printing in the Commission’s Public operation of the RPI Program until
does not intend to solicit, comments on Reference Room, 100 F Street NE., December 1, 2017.6 In its request to
this proposed rule change. The Washington, DC 20549 on official extend the exemption, the Exchange
Exchange has not received any written business days between the hours of notes that given the gradual
comments from members or other 10:00 a.m. and 3:00 p.m. Copies of such implementation of the RPI Program and
interested parties. filing also will be available for the preliminary participation and
III. Date of Effectiveness of the inspection and copying at the principal results, extending the exemption would
Proposed Rule Change and Timing for office of the Exchange. All comments provide additional opportunities for
Commission Action received will be posted without change; greater participation and assessment of
the Commission does not edit personal the results. Accordingly, the Exchange
The foregoing rule change has become
identifying information from has asked for additional time to allow it
effective pursuant to Section 19(b)(3)(A)
submissions. You should submit only and the Commission to analyze data
of the Act 8 and paragraph (f) of Rule
information that you wish to make concerning the RPI Program that the
19b–4 thereunder.9 At any time within
available publicly. All submissions Exchange has committed to provide to
60 days of the filing of the proposed rule
should refer to File Number SR– the Commission.7
change, the Commission summarily may
BatsEDGA–2016–29, and should be For this reason and the reasons stated
temporarily suspend such rule change if
submitted on or before December 28, in the RPI Approval Order originally
it appears to the Commission that such
2016. granting the limited exemption, the
action is necessary or appropriate in the
public interest, for the protection of For the Commission, by the Division of Commission, pursuant to its authority
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated under Rule 612(c) of Regulation NMS,
authority.10 finds that extending the exemption is
the purposes of the Act.
Brent J. Fields, appropriate in the public interest and
IV. Solicitation of Comments Secretary. consistent with the protection of
Interested persons are invited to [FR Doc. 2016–29283 Filed 12–6–16; 8:45 am] investors.
submit written data, views, and BILLING CODE 8011–01–P Therefore, it is hereby ordered that,
arguments concerning the foregoing, pursuant to Rule 612(c) of Regulation
including whether the proposed rule NMS, the Exchange is granted an
change is consistent with the Act. SECURITIES AND EXCHANGE extension of the limited exemption from
Comments may be submitted by any of COMMISSION Rule 612 of Regulation NMS that allows
the following methods: the Exchange to accept and rank orders
[Release No. 34–79448; File No. SR–BX–
2014–048] priced equal to or greater than $1.00 per
Electronic Comments share in increments of $0.001, in
• Use the Commission’s Internet Self-Regulatory Organizations; connection with the operation of its RPI
comment form (http://www.sec.gov/ NASDAQ BX, Inc.; Order Granting an Program, until December 1, 2017.
rules/sro.shtml); or Extension to Limited Exemption From
• Send an email to rule-comments@ Rule 612(c) of Regulation NMS in 2 See Securities Exchange Act Release No. 73702,
sec.gov. Please include File Number SR– Connection With the Exchange’s Retail 79 FR 72049 (December 4, 2014), (SR–BX–2014–
BatsEDGA–2016–29 on the subject line. 048) (‘‘RPI Approval Order’’).
Price Improvement Program Until 3 See id.
Paper Comments December 1, 2017 4 See Securities Exchange Act Release No. 76495,
80 FR 74185 (November 27, 2015), (SR–BX–2014–
• Send paper comments in triplicate
asabaliauskas on DSK3SPTVN1PROD with NOTICES
December 1, 2016. 048).
to Secretary, Securities and Exchange On November 28, 2014, the 5 See SR–BX–2016–065; see also Letter from
Commission, 100 F Street NE., Commission issued an order pursuant to Jeffrey Davis, Vice President and Deputy General
Washington, DC 20549–1090. its authority under Rule 612(c) of Counsel and Secretary, NASDAQ BX, Inc. to Brent
J. Fields, Secretary, and Securities and Exchange
All submissions should refer to File Regulation NMS 1 (‘‘Sub-Penny Rule’’) Commission, dated November 22, 2016 (‘‘BX
Number SR–BatsEDGA–2016–29. This that granted the NASDAQ BX, Inc. Letter’’).
6 See SR–BX–2016–065.
8 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 200.30–3(a)(12). 7 See e.g., BX Letter; SR–BX–2016–065; RPI
9 17 CFR 240.19b–4(f). 1 17 CFR 242.612(c). Approval Order, supra note 2.
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Document Created: 2016-12-07 05:31:57
Document Modified: 2016-12-07 05:31:57
| 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 88289 |
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