81 FR 89176 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to BZX Rule 11.23, Auctions, To Amend How the Official Auction Prices Are Calculated and Add Additional Specificity Regarding the Handling of RHO Orders During an Opening Auction for a BZX Listed Security
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 237 (December 9, 2016)
Federal Register Volume 81, Issue 237 (December 9, 2016)
| Page Range | 89176-89181 | |
| FR Document | 2016-29465 |
[Federal Register Volume 81, Number 237 (Friday, December 9, 2016)] [Notices] [Pages 89176-89181] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29465] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79467; File No. SR-BatsBZX-2016-81] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to BZX Rule 11.23, Auctions, To Amend How the Official Auction Prices Are Calculated and Add Additional Specificity Regarding the Handling of RHO Orders During an Opening Auction for a BZX Listed Security December 5, 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 30, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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 Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 5 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend Exchange Rule 11.23, Auctions, to: (i) Amend how the official auction prices are calculated and make related changes to the definitions of Indicative Price and Auction Only Price; and (ii) [[Page 89177]] add additional specificity regarding the handling of Regular Hours Only (``RHO'') Orders \5\ during an Opening Auction for a BZX listed security \6\ by describing situations in which RHO limit orders may be modified prior to the auction and cancelled after an auction. --------------------------------------------------------------------------- \5\ An RHO Order is ``[a] limit or market order that is designated for execution only during Regular Trading Hours, which includes the Opening Auction, the Closing Auction, and IPO/Halt Auctions for BZX listed securities and the Opening Process for non- BZX-listed securities (as such terms are defined in Rule 11.23 and 11.24). Any portion of a market RHO order will be cancelled immediately following any auction in which it is not executed.'' See Exchange Rule 11.9(b)(7). \6\ A BZX listed security is a security listed on the Exchange pursuant to Chapter 14 of the Exchange's Rules and includes both corporate listed securities and Exchange Traded Products (``ETPs''). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Exchange Rule 11.23, Auctions, to: (i) Amend how the official auction prices are calculated and make related changes to the definitions of Indicative Price and Auction Only Price; and (ii) add additional specificity regarding the handling of RHO Orders during an Opening Auction for a BZX listed security by describing situations in which RHO limit orders may be modified prior to the auction and cancelled after an auction. Official Auction Prices, Indicative Price, and Auction Only Price In general, the price for the Opening, Closing, IPO, Halt, and Volatility Closing auctions is established by determining the price level that maximizes the number of shares executed.\7\ In determining the auction price, the Exchange takes into account all buy and sell interest at each price level on the Auction Book \8\ and the Continuous Book.\9\ Today, in the event of a volume based tie at multiple price levels, the price of the Opening and Closing auctions will be the price closest to the Volume Based Tie Breaker.\10\ In the event of a volume based tie at multiple price levels for an IPO, Halt, and Volatility Closing auctions, the price closest to the issuing price will be used for IPO Auctions and the price level closest to the final last sale eligible trade will be used for Halt and the Volatility Closing Auctions. --------------------------------------------------------------------------- \7\ See Exchange Rules 11.23(b)(2)(B), (c)(2)(B), (d)(2)(D), and (e)(2)(D). \8\ See Exchange Rule 11.23(a)(1). \9\ See Exchange Rule 11.23(a)(7). \10\ ``Volume Based Tie Breaker'' is defined as ``the midpoint of the NBBO for a particular security where the NBBO is a Valid NBBO. A NBBO is a Valid NBBO where: (i) There is both a NBB and NBO for the security; (ii) the NBBO is not crossed; and (iii) the midpoint of the NBBO is less than the Maximum Percentage away from both the NBB and the NBO. The Maximum Percentage will be determined by the Exchange and will be published in a circular distributed to Members with reasonable advance notice prior to initial implementation and any change thereto. Where the NBBO is not a Valid NBBO, the price of the Final Last Sale Eligible Trade will be used.'' See Exchange Rule 11.23(a)(23). --------------------------------------------------------------------------- The Exchange proposes to amend Exchange Rules 11.23(b)(2)(B), (c)(2)(B), (d)(2)(D), and (e)(2)(D) to state that the prices of the Opening Auction, Closing Auction, IPO Auction, Halt Auction, and Volatility Closing Auction, respectively, will also occur at a price that not only maximizes the number of shares executed, but also minimizes the total imbalance. In all auctions, the auction price will first be established by determining the price level within the Collar Price Range \11\ that maximizes the number of shares executed. In the event of a volume based tie at multiple price levels, the auction price will be the price level that results in the minimum total imbalance. Lastly, should there be both a volume based tie and a tie in minimum total imbalance at multiple price levels, the auction price of the: (i) Opening and Closing auctions will be the price closest to the Volume Based Tie Breaker; (ii) Halt and Volatility Closing auctions will be the price closest to the final last sale eligible trade; and (iii) IPO auction will be the price closest to the issuing price. --------------------------------------------------------------------------- \11\ See Exchange Rule 11.23(a)(6). --------------------------------------------------------------------------- The below examples illustrate how the auction price, Auction Only Price and Indicative Price is selected today and how these prices will be selected under the proposed rule change. This first example illustrates current behavior. Assume that the NBBO is $24.90 x $25.10, which means that the Volume Based Tie Breaker is $25.00. -------------------------------------------------------------------------------------------------------------------------------------------------------- Total sell Total buy shares Buy shares Price Sell shares shares Paired shares Imbalance -------------------------------------------------------------------------------------------------------------------------------------------------------- 0....................................................... .............. 25.05 .............. 300 0 -300 500..................................................... 500 25.01 .............. 300 300 200 700..................................................... 200 25.00 100 300 300 400 1,200................................................... 500 24.95 200 200 200 1,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- In this example, current behavior would dictate that $25.00 would be selected as the auction price, Auction Only Price, and the Indicative Price, as applicable, because at $25.00 the maximum number of shares would be executed (300 shares, in a tie with $25.01) and of the two price levels at which 300 shares would be executed, $25.00 is closest to the Volume Based Tie Breaker. Under the same scenario described above, but using the price level that minimizes the total imbalance where there is a tie for the maximum number of shares executed in the auction at multiple price levels instead of the Volume Based Tie Breaker, the price chosen as the auction price, Auction Only Price, and Indicative Price would be $25.01. $25.01 would be used because, as noted above, 300 shares would be executed at both $25.00 and $25.01, but the imbalance at $25.01 is 200 shares while the imbalance at $25.00 is 400 shares. Stated another way, less executable interest would [[Page 89178]] remain unexecuted at $25.01 (200 shares) than at $25.00 (400 shares). -------------------------------------------------------------------------------------------------------------------------------------------------------- Total sell Total buy shares Buy shares Price Sell shares shares Paired shares Imbalance -------------------------------------------------------------------------------------------------------------------------------------------------------- 0....................................................... .............. 25.05 .............. 300 0 -300 500..................................................... 500 25.01 .............. 300 300 200 700..................................................... 200 25.00 100 300 300 400 1,200................................................... 500 24.95 200 200 200 1,000 -------------------------------------------------------------------------------------------------------------------------------------------------------- This third example illustrates the proposed behavior when there is a tie for the maximum number of shares executed in the auction at multiple price levels and a tie in minimum total imbalance within those price levels. In such a situation, the price level closest to the Volume Based Tie Breaker will be used. Under this example, assume that the NBBO is $24.94 x $25.16, which means that the Volume Based Tie Breaker is $25.05. -------------------------------------------------------------------------------------------------------------------------------------------------------- Total sell Total buy shares Buy shares Price Sell shares shares Paired shares Imbalance -------------------------------------------------------------------------------------------------------------------------------------------------------- 500..................................................... 500 25.08 .............. 200 200 300 500..................................................... .............. 25.07 .............. 200 200 300 500..................................................... .............. 25.06 .............. 200 200 300 1,000................................................... 500 25.05 .............. 200 200 800 1,200................................................... 200 25.00 .............. 200 200 1,000 1,700................................................... 500 24.95 200 200 200 1,500 -------------------------------------------------------------------------------------------------------------------------------------------------------- In this example, there is a tie for the maximum number of shares executed in the auction at 200 shares for every price level from $24.95 to $25.08. Looking at the imbalance, there is also a tie at 300 shares at each of $25.06, $25.07, and $25.08. As such, the proposed behavior would look to the Volume Based Tie Breaker to determine the auction price, Auction Only Price, and Indicative Price. Because the Volume Based Tie Breaker is $25.05, $25.06 is selected because it is the closest of $25.06, $25.07, and $25.08 to the Volume Based Tie Breaker. The Exchange believes the proposed amendments are necessary to ensure that the price selected for the auction is reasonably based on all buying and selling interest for that security and is the price at which the most orders may be matched resulting in the minimal imbalance. Selecting a price that would minimize the imbalance best reflects the value of the security based on the auction's price discovery process because it is the price level where the amount of buy and sell interest is closest to equal. As noted above, minimizing the imbalance at the price levels at which the most shares will execute in the auction will result in the price closest to equilibrium because that price level has the least amount of executable interest that remains unexecuted. As a result, the proposed rule changes should also enhance the Exchange's auction processes resulting in improved price discovery of BZX listed securities. As a result of the above changes to the determination of the official auction price, the Exchange also proposes to make a related change to the definition of Indicative Price under paragraph (a)(10) of Rule 11.23. Indicative Price is currently defined as the price at which the most shares from the Auction Book and the Continuous Book would match.\12\ The Indicative Price is disseminated publicly beginning at 8:00 a.m. Eastern Time for an Opening \13\ and IPO Auction,\14\ 3:00 p.m. Eastern Time for a Closing Auction,\15\ five (5) minutes prior to the commencement of a Halt Auction,\16\ and at the time a security is halted after 3:50 p.m. Eastern Time for a Volatility Closing Auction.\17\ The Indicative Price is designed to facilitate price discovery and transparency while helping resolve order imbalances in the time leading up to an auction and the determination of the auction price. --------------------------------------------------------------------------- \12\ See Exchange Rule 11.23(a)(10). \13\ See Exchange Rule 11.23(b)(2)(A). \14\ See Exchange Rule 11.23(d)(2)(A). \15\ See Exchange Rule 11.23(c)(2)(A). \16\ See Exchange Rule 11.23(d)(2)(A). \17\ See Exchange Rule 11.23(e)(2)(A). --------------------------------------------------------------------------- Today, the Exchange will publish the price at which the most shares may be executed as the Indicative Price by taking into account all buy and sell interest at each price level. Like the determination of each of the auction prices discussed above, the Indicative Price reflects the price at which the maximum number of shares may be executed, but may not reflect the price which would result in the minimum total imbalance where there are multiple price levels at which the most shares may be executed. Therefore, like the amendments to the determination of auction prices above, the Exchange proposes to amend the definition of Indicative Price to ensure that the maximum number of shares will ultimately be executed in the auction resulting in the minimum total imbalance. Indicative Price will continue to be defined as ``the price at which the most shares from the Auction Book and the Continuous Book would match.'' However, the definition of Indicative Price would be expanded to state that in the event of a volume based tie at multiple price levels, the Indicative Price will be the price which results in the minimum total imbalance. In the event of a volume based tie and a tie in minimum total imbalance at multiple price levels, the Indicative Price will be the price closest to the Volume Based Tie Breaker. Lastly, the Exchange also publishes an Auction Only Price, which is the price at which the most shares from the Auction Book would match. Currently, in the event of a volume based tie at multiple price levels, the Auction Only Price will be the price closest to the Volume Based Tie Breaker. Auction Only Price will continue to be defined under Exchange Rule 11.23(a)(2) to state that the Auction Only Price will be the price at which the most shares from the Auction Book would match. However, the definition will be expanded to harmonize the calculation of the Auction Only Price with the above changes. As amended, in the event of a volume based tie at multiple price levels, the Auction Only Price will be the price which results in the minimum [[Page 89179]] total imbalance. In the event of a volume based tie and a tie in minimum total imbalance at multiple price levels, the Auction Only Price will be the price closest to the Volume Based Tie Breaker. RHO Orders An RHO Order is ``[a] limit or market order that is designated for execution only during Regular Trading Hours, which includes the Opening Auction, the Closing Auction, and IPO/Halt Auctions for BZX listed securities and the Opening Process for non-BZX-listed securities (as such terms are defined in Rule 11.23 and 11.24). RHO orders are also Eligible Auction Orders \18\ and may participate in the Opening Auction.\19\ Any Eligible Auction Orders designated for the Opening Auction will be queued until 9:30 a.m. at which time they will be eligible to be executed in the Opening Auction. Any portion of a RHO market order will be cancelled immediately following any auction in which it is not executed.'' \20\ However, any portion of an RHO limit order that is not executed in the auction will be placed on the Continuous Book at the conclusion of the auction and commencement of Regular Trading Hours (subject to the cancelling of certain RHO limit orders are described below). --------------------------------------------------------------------------- \18\ See Exchange Rule 11.23(a)(8). \19\ See id. \20\ See Exchange Rule 11.9(b)(7). --------------------------------------------------------------------------- In general, Eligible Auction Orders designated for the Opening Auction may not be cancelled or modified between 9:28 a.m. and 9:30 a.m.\21\ The Exchange now proposes to add additional specificity to Rule 11.23(b)(1) regarding how RHO limit orders are handled in the Opening Auction. Specifically, the Exchange proposes to amend Rule 11.23(b)(1)(B) to describe current behavior that allows Members to modify, but not cancel, RHO limit orders designated for the Opening Auction between 9:28 a.m. and 9:30 a.m.\22\ --------------------------------------------------------------------------- \21\ See Exchange Rule 11.23(b)(1)(B). \22\ Currently, RHO market orders submitted between 9:28 a.m. and 9:30 a.m. are rejected. See Exchange Rule 11.23(b)(1)(A). Modifications to RHO limit orders between 9:28 a.m. and 9:30 a.m. would not be limited by Exchange Rule 11.9(e)(3) as such orders are not active until the Opening Auction occurs at 9:30 a.m. --------------------------------------------------------------------------- The rule text currently provides that RHO limit orders submitted between 9:28 a.m. and 9:30 a.m. are treated as Late-Limit-On-Open (``LLOO'') \23\ orders until the Opening Auction has concluded. The Exchange proposes to amend Rule 11.23(b)(1)(B) to state that RHO limit orders that are modified between 9:28 a.m. and 9:30 a.m. will also be treated as LLOO orders until the Opening Auction is concluded. During the Opening Auction, RHO limit orders will be priced in accordance with the operation of LLOO orders as described in Rule 11.23(a)(12),\24\ subject to the order's limit price. At the conclusion of the Opening Auction, any unexecuted portion of a RHO limit order will be placed on the Continuous Book at its limit price (subject to the cancelling of certain RHO limit orders are described below). The Exchange believes that such treatment is consistent with the existing treatment of RHO limit orders submitted between 9:28 a.m. and 9:30 a.m. which are subject to the pricing restrictions applicable to LLOO orders. However, because, unlike LLOO orders, RHO limit orders will be added to the Continuous Book at the conclusion of the Opening Auction at their limit price, Members should be able to modify such orders between 9:28 a.m. and 9:30 a.m. Such functionality provides Members the price protections necessary to incentivize early entry of orders for participation in the Opening Auction while simultaneously allowing a Member to control an order that will be entered onto the Continuous Book if it is not executed in the Opening Auction. --------------------------------------------------------------------------- \23\ See Exchange Rule 11.23(a)(12). \24\ Under Exchange Rule 11.23(a)(12), LLOO orders are priced as follows: to the extent a LLOO bid or offer received by the Exchange has a limit price that is more aggressive than the NBB or NBO, the price of such bid or offer is adjusted to be equal to the NBB or NBO, respectively, at the time of receipt by the Exchange. Where the NBB or NBO becomes more aggressive, the limit price of the LLOO bid or offer will be adjusted to the more aggressive price, only to the extent that the more aggressive price is not more aggressive than the original User entered limit price. The limit price will never be adjusted to a less aggressive price. If there is no NBB or NBO, the LLOO bid or offer, respectively, will assume its entered limit price. Notwithstanding the foregoing, a LLOO order entered during the Quote-Only Period of an IPO will be converted to a limit order with a limit price equal to the original User entered limit price and any LLOO orders not executed in their entirety during the IPO Auction will be cancelled upon completion of the IPO Auction. --------------------------------------------------------------------------- The Exchange also proposes to describe within Exchange Rule 11.23(b)(1) how RHO orders with a limit price outside of the Collar Price Range are handled. Where the Opening Auction would have occurred at a price level but for such price level being greater than (less than) the high (low) range of the Collar Price Range (i.e., outside the Collar Price Range), all buy (sell) limit RHO orders with a limit price more aggressive than the BZX Official Opening Price that are not executed in the Opening Auction will be cancelled. The Collar Price Range is utilized to help limit volatility during the auction process and to reduce the possibility that an auction would occur at a price that would qualify as clearly erroneous under Exchange Rule 11.17(c)(1) and that may result in cancelled executions.\25\ The process to select the price of an Opening Auction as described above could lead to a price that is outside of the Collar Price Range. In that case, the Exchange will then look to find a price to execute the auction within the Collar Price Range and in accordance with the price selection process set forth above. The Exchange selecting a less aggressive price for the auction within the Collar Price Range can result in the unexecuted RHO limit orders priced more aggressively than the auction price being placed on the Continuous Book upon conclusion of the Opening Auction. --------------------------------------------------------------------------- \25\ As set forth under Exchange Rule 11.23(a)(6), the ``Collar Price Range'' is the range from a set percentage below the Collar Midpoint (as defined below) to above the Collar Midpoint, such set percentage being dependent on the value of the Collar Midpoint at the time of the auction, as described below. The Collar Midpoint will be the Volume Based Tie Breaker for all applicable auctions, except for IPO Auctions in ETPs (as defined in Rule 11.8, Interpretation and Policy .02(d)(2)), for which the Collar Midpoint will be the issue price. Specifically, the Collar Price Range will be determined as follows: Where the Collar Midpoint is $25.00 or less, the Collar Price Range shall be the range from 10% below the Collar Midpoint to 10% above the Collar Midpoint; where the Collar Midpoint is greater than $25.00 but less than or equal to $50.00, the Collar Price Range shall be the range from 5% below the Collar Midpoint to 5% above the Collar Midpoint; and where the Collar Midpoint is greater than $50.00, the Collar Price Range shall be the range from 3% below the Collar Midpoint to 3% above the Collar Midpoint. --------------------------------------------------------------------------- The Exchange believes that it is necessary and appropriate to cancel RHO orders with a limit price that is more aggressive than the auction price in such circumstances. Other than RHO limit orders, all Eligible Auction Orders will simply be cancelled if they do not execute in the Opening Auction. RHO limit orders, however, are unique in that they rest on the Auction Book until the conclusion of the Opening Auction, at which point any unexecuted portion is added to the Continuous Book. This could result in unexecuted RHO limit orders priced more aggressively than the auction price to be added to the Continuous Book, immediately applying price pressure in the direction of the price that the Opening Auction would have initially occurred but for the Exchange selecting a price within the Collar Price Range, thereby controverting the purpose of the Collar Price Range. Further, such a set of circumstances would also undermine the value of the price discovery process of the Opening Auction and could result in executions eligible for review as [[Page 89180]] clearly erroneous under Exchange Rule 11.17. The Exchange notes that Members whose RHO limit orders are cancelled because the price of the order is more aggressive than the Collar Price Range may always resubmit such orders at less aggressive prices or after regular trading begins. 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(b) of the Act.\26\ Specifically, the proposed change is consistent with Section 6(b)(5) of the Act,\27\ because it is designed to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and, in general, to protect investors and the public interest. The proposed rule change will enhance the Exchange's auction processes resulting in improved price discovery of BZX listed securities. Specifically, the Exchange believes amending the calculations of auction prices and the definitions of Indicative Price and Auction Only Price promotes just and equitable principles of trade by ensuring that the maximum number of shares will ultimately be executed in the auction resulting in the minimum total imbalance generally because selecting a price that would minimize the imbalance best reflects the value of the security based on the auction's price discovery process because it is the price level where the amount of buy and sell interest is closest to equal. Further, minimizing the imbalance at the price levels at which the most shares will execute in the auction will result in the price closest to equilibrium because that price level has the least amount of executable interest that remains unexecuted. These proposed amendments are similar to auction price selection process of other exchanges \28\ and would enhance the price discovery and transparency while helping resolve order imbalances in the time leading up to an auction and the determination of the ultimate auction price. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78f(b). \27\ 15 U.S.C. 78f(b)(5). \28\ See e.g., Nasdaq Stock Market LLC (``Nasdaq'') Rules 4752(a)(2)(A) and 4752(d)(2) (outlining the selection of the Nasdaq Current Reference Price and auction price). --------------------------------------------------------------------------- The Exchange believes allowing Members to modify RHO limit orders between 9:28 a.m. and 9:30 a.m. promotes just and equitable principles of trade, removes impediments to, and perfects the mechanism of, a free and open market and a national market system. Such functionality provides Members the price protections necessary to incentivize early entry of orders for participation in the Opening Auction while simultaneously allowing a Member to control an order that will be entered onto the Continuous Book if it is not executed in the Opening Auction. In addition, the modification of a RHO limit order between 9:28 a.m. and 9:30 a.m. would have no impact on the pricing of the Opening Auction as such order are priced in accordance with the operation of LLOO orders as described in Rule 11.23(a)(12),\29\ subject to the order's limit price, on the Continuous Book. --------------------------------------------------------------------------- \29\ See supra note 24. --------------------------------------------------------------------------- The proposal also supports the objectives of perfecting the mechanism of a free and open market and the national market system because not cancelling RHO orders with limit prices more aggressive than the Collar Price Range would result in executions vastly different from the auction price shortly after the regular trading commences. As such, the proposal also protects investors because it would prevent the executions of orders at prices not related to the current market for the security and possibly not in line with the investor's intent at the time they entered the orders prior to the commencement of the auction process. The Exchange believes this undermines the price discovery process of the auction and could result in executions eligible for review as clearly erroneous under Exchange Rule 11.17. The Exchange notes that Members whose RHO limit orders are cancelled because the price of the order is more aggressive than the Collar Price Range may always resubmit such orders at less aggressive prices or after regular trading begins. Therefore, the Exchange believes the proposed rule change promotes just and equitable principles of trade, removes impediments to, and perfects the mechanism of, a free and open market and a national market system. 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 not necessary or appropriate in furtherance of the purposes of the act. To the contrary, the proposal will promote competition because the Exchange believes the proposal improves and enhances the Exchange's auction processes, thereby attracting additional order flow to the Exchange. The proposed rule change is, in effect, pro-competition as it promotes fair and orderly markets and protects investors through enhanced auction processes. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 \30\ and Rule 19b-4(f)(6) thereunder.\31\ --------------------------------------------------------------------------- \30\ 15 U.S.C. 78s(b)(3)(A). \31\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of 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. --------------------------------------------------------------------------- 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change 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 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 No. SR-BatsBZX-2016-81 on the subject line. [[Page 89181]] 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-2016-81. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsBZX-2016-81, and should be submitted on or before December 30, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\32\ --------------------------------------------------------------------------- \32\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-29465 Filed 12-8-16; 8:45 am] BILLING CODE 8011-01-P
![89176 Federal Register / Vol. 81, No. 237 / Friday, December 9, 2016 / Notices
enhancement to all OTPs, regardless of action is necessary or appropriate in the submissions. You should submit only
size, and would not impose a public interest, for the protection of information that you wish to make
competitive burden on any participant. investors, or otherwise in furtherance of available publicly. All submissions
The Exchange does not believe that the the purposes of the Act. If the should refer to File Number SR–
proposed enhancement to the existing Commission takes such action, the NYSEArca–2016–155, and should be
risk limitation mechanism would Commission shall institute proceedings submitted on or before December 30,
impose a burden on competing options under Section 19(b)(2)(B) 30 of the Act to 2016.
exchanges. Rather, the availability of determine whether the proposed rule For the Commission, by the Division of
this mechanism may foster more change should be approved or Trading and Markets, pursuant to delegated
competition. Specifically, the Exchange disapproved. authority.31
notes that it operates in a highly Eduardo A. Aleman,
IV. Solicitation of Comments
competitive market in which market Assistant Secretary.
participants can readily favor competing Interested persons are invited to
[FR Doc. 2016–29467 Filed 12–8–16; 8:45 am]
venues. When an exchange offers submit written data, views, and
BILLING CODE 8011–01–P
enhanced functionality that arguments concerning the foregoing,
distinguishes it from the competition including whether the proposed rule
and participants find it useful, it has change is consistent with the Act.
SECURITIES AND EXCHANGE
been the Exchange’s experience that Comments may be submitted by any of
COMMISSION
competing exchanges will move to the following methods:
adopt similar functionality. Thus, the [Release No. 34–79467; File No. SR–
Electronic Comments BatsBZX–2016–81]
Exchange believes that this type of
competition amongst exchanges is • Use the Commission’s Internet
comment form (http://www.sec.gov/ Self-Regulatory Organizations; Bats
beneficial to the market place as a whole
rules/sro.shtml); or BZX Exchange, Inc.; Notice of Filing
as it can result in enhanced processes,
functionality, and technologies. • Send an email to rule-comments@ and Immediate Effectiveness of a
sec.gov. Please include File Number SR– Proposed Rule Change to BZX Rule
C. Self-Regulatory Organization’s NYSEArca–2016–155 on the subject 11.23, Auctions, To Amend How the
Statement on Comments on the line. Official Auction Prices Are Calculated
Proposed Rule Change Received From and Add Additional Specificity
Members, Participants, or Others Paper Comments Regarding the Handling of RHO Orders
No written comments were solicited • Send paper comments in triplicate During an Opening Auction for a BZX
or received with respect to the proposed to Brent J. Fields, Secretary, Securities Listed Security
rule change. and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. December 5, 2016
III. Date of Effectiveness of the All submissions should refer to File Pursuant to Section 19(b)(1) of the
Proposed Rule Change and Timing for Number SR–NYSEArca–2016–155. This Securities Exchange Act of 1934 (the
Commission Action file number should be included on the ‘‘Act’’),1 and Rule 19b–4 thereunder,2
The Exchange has filed the proposed subject line if email is used. To help the notice is hereby given that on November
rule change pursuant to Section Commission process and review your 30, 2016, Bats BZX Exchange, Inc. (the
19(b)(3)(A)(iii) of the Act 28 and Rule comments more efficiently, please use ‘‘Exchange’’ or ‘‘BZX’’) filed with the
19b–4(f)(6) thereunder.29 Because the only one method. The Commission will Securities and Exchange Commission
proposed rule change does not: (i) post all comments on the Commission’s (‘‘Commission’’) the proposed rule
Significantly affect the protection of Internet Web site (http://www.sec.gov/ change as described in Items I and II
investors or the public interest; (ii) rules/sro.shtml). Copies of the below, which Items have been prepared
impose any significant burden on submission, all subsequent by the Exchange. The Exchange has
competition; and (iii) become operative amendments, all written statements designated this proposal as a ‘‘non-
prior to 30 days from the date on which with respect to the proposed rule controversial’’ proposed rule change
it was filed, or such shorter time as the change that are filed with the pursuant to Section 19(b)(3)(A) of the
Commission may designate, if Commission, and all written Act 3 and Rule 19b–4(f)(6) thereunder,4
consistent with the protection of communications relating to the which renders it effective upon filing
investors and the public interest, the proposed rule change between the with the Commission. The Commission
proposed rule change has become Commission and any person, other than is publishing this notice to solicit
effective pursuant to Section 19(b)(3)(A) those that may be withheld from the comments on the proposed rule change
of the Act and Rule 19b–4(f)(6)(iii) public in accordance with the from interested persons.
thereunder. provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
At any time within 60 days of the available for Web site viewing and Statement of the Terms of Substance of
filing of such proposed rule change, the printing in the Commission’s Public the Proposed Rule Change
Commission summarily may Reference Room, 100 F Street NE.,
temporarily suspend such rule change if The Exchange filed a proposal to
Washington, DC 20549 on official amend Exchange Rule 11.23, Auctions,
it appears to the Commission that such business days between the hours of to: (i) Amend how the official auction
10:00 a.m. and 3:00 p.m. Copies of such prices are calculated and make related
28 15 U.S.C. 78s(b)(3)(A)(iii). filing also will be available for
mstockstill on DSK3G9T082PROD with NOTICES
29 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– changes to the definitions of Indicative
4(f)(6)(iii) requires a self-regulatory organization to
inspection and copying at the principal Price and Auction Only Price; and (ii)
give the Commission written notice of its intent to office of the Exchange. All comments
file the proposed rule change, along with a brief received will be posted without change; 31 17 CFR 200.30–3(a)(12).
description and text of the proposed rule change, the Commission does not edit personal 15
at least five business days prior to the date of filing U.S.C. 78s(b)(1).
of the proposed rule change, or such shorter time identifying information from 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
as designated by the Commission. The Exchange
has satisfied this requirement. 30 15 U.S.C. 78s(b)(2)(B). 4 17 CFR 240.19b–4(f)(6).
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![Federal Register / Vol. 81, No. 237 / Friday, December 9, 2016 / Notices 89177
add additional specificity regarding the Amend how the official auction prices prices of the Opening Auction, Closing
handling of Regular Hours Only are calculated and make related changes Auction, IPO Auction, Halt Auction,
(‘‘RHO’’) Orders 5 during an Opening to the definitions of Indicative Price and and Volatility Closing Auction,
Auction for a BZX listed security 6 by Auction Only Price; and (ii) add respectively, will also occur at a price
describing situations in which RHO additional specificity regarding the that not only maximizes the number of
limit orders may be modified prior to handling of RHO Orders during an shares executed, but also minimizes the
the auction and cancelled after an Opening Auction for a BZX listed total imbalance. In all auctions, the
auction. security by describing situations in auction price will first be established by
The text of the proposed rule change which RHO limit orders may be determining the price level within the
is available at the Exchange’s Web site modified prior to the auction and Collar Price Range 11 that maximizes the
at www.batstrading.com, at the cancelled after an auction.
principal office of the Exchange, and at number of shares executed. In the event
the Commission’s Public Reference Official Auction Prices, Indicative Price, of a volume based tie at multiple price
Room. and Auction Only Price levels, the auction price will be the
In general, the price for the Opening, price level that results in the minimum
II. Self-Regulatory Organization’s total imbalance. Lastly, should there be
Closing, IPO, Halt, and Volatility
Statement of the Purpose of, and both a volume based tie and a tie in
Closing auctions is established by
Statutory Basis for, the Proposed Rule minimum total imbalance at multiple
Change determining the price level that
maximizes the number of shares price levels, the auction price of the: (i)
In its filing with the Commission, the executed.7 In determining the auction Opening and Closing auctions will be
Exchange included statements price, the Exchange takes into account the price closest to the Volume Based
concerning the purpose of and basis for all buy and sell interest at each price Tie Breaker; (ii) Halt and Volatility
the proposed rule change and discussed level on the Auction Book 8 and the Closing auctions will be the price
any comments it received on the Continuous Book.9 Today, in the event closest to the final last sale eligible
proposed rule change. The text of these of a volume based tie at multiple price trade; and (iii) IPO auction will be the
statements may be examined at the levels, the price of the Opening and price closest to the issuing price.
places specified in Item IV below. The Closing auctions will be the price
Exchange has prepared summaries, set The below examples illustrate how
closest to the Volume Based Tie
forth in Sections A, B, and C below, of the auction price, Auction Only Price
Breaker.10 In the event of a volume
the most significant parts of such based tie at multiple price levels for an and Indicative Price is selected today
statements. IPO, Halt, and Volatility Closing and how these prices will be selected
auctions, the price closest to the issuing under the proposed rule change. This
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the price will be used for IPO Auctions and first example illustrates current
Statutory Basis for, the Proposed Rule the price level closest to the final last behavior. Assume that the NBBO is
Change sale eligible trade will be used for Halt $24.90 × $25.10, which means that the
and the Volatility Closing Auctions. Volume Based Tie Breaker is $25.00.
1. Purpose The Exchange proposes to amend
The Exchange proposes to amend Exchange Rules 11.23(b)(2)(B), (c)(2)(B),
Exchange Rule 11.23, Auctions, to: (i) (d)(2)(D), and (e)(2)(D) to state that the
Total sell
Total buy shares Buy shares Price Sell shares Paired shares Imbalance
shares
0 ............................................................... ........................ 25.05 ........................ 300 0 ¥300
500 ........................................................... 500 25.01 ........................ 300 300 200
700 ........................................................... 200 25.00 100 300 300 400
1,200 ........................................................ 500 24.95 200 200 200 1,000
In this example, current behavior $25.00 is closest to the Volume Based chosen as the auction price, Auction
would dictate that $25.00 would be Tie Breaker. Only Price, and Indicative Price would
selected as the auction price, Auction Under the same scenario described be $25.01. $25.01 would be used
Only Price, and the Indicative Price, as above, but using the price level that because, as noted above, 300 shares
applicable, because at $25.00 the minimizes the total imbalance where would be executed at both $25.00 and
maximum number of shares would be there is a tie for the maximum number $25.01, but the imbalance at $25.01 is
executed (300 shares, in a tie with of shares executed in the auction at 200 shares while the imbalance at
$25.01) and of the two price levels at multiple price levels instead of the $25.00 is 400 shares. Stated another
which 300 shares would be executed, Volume Based Tie Breaker, the price way, less executable interest would
5 An RHO Order is ‘‘[a] limit or market order that Rules and includes both corporate listed securities and (iii) the midpoint of the NBBO is less than the
is designated for execution only during Regular and Exchange Traded Products (‘‘ETPs’’). Maximum Percentage away from both the NBB and
Trading Hours, which includes the Opening 7 See Exchange Rules 11.23(b)(2)(B), (c)(2)(B), the NBO. The Maximum Percentage will be
mstockstill on DSK3G9T082PROD with NOTICES
Auction, the Closing Auction, and IPO/Halt (d)(2)(D), and (e)(2)(D). determined by the Exchange and will be published
Auctions for BZX listed securities and the Opening 8 See Exchange Rule 11.23(a)(1). in a circular distributed to Members with
Process for non-BZX-listed securities (as such terms
9 See Exchange Rule 11.23(a)(7). reasonable advance notice prior to initial
are defined in Rule 11.23 and 11.24). Any portion
of a market RHO order will be cancelled 10 ‘‘Volume Based Tie Breaker’’ is defined as ‘‘the implementation and any change thereto. Where the
immediately following any auction in which it is midpoint of the NBBO for a particular security NBBO is not a Valid NBBO, the price of the Final
not executed.’’ See Exchange Rule 11.9(b)(7). where the NBBO is a Valid NBBO. A NBBO is a Last Sale Eligible Trade will be used.’’ See
6 A BZX listed security is a security listed on the Valid NBBO where: (i) There is both a NBB and Exchange Rule 11.23(a)(23).
Exchange pursuant to Chapter 14 of the Exchange’s NBO for the security; (ii) the NBBO is not crossed; 11 See Exchange Rule 11.23(a)(6).
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![Federal Register / Vol. 81, No. 237 / Friday, December 9, 2016 / Notices 89179
total imbalance. In the event of a between 9:28 a.m. and 9:30 a.m. will process and to reduce the possibility
volume based tie and a tie in minimum also be treated as LLOO orders until the that an auction would occur at a price
total imbalance at multiple price levels, Opening Auction is concluded. During that would qualify as clearly erroneous
the Auction Only Price will be the price the Opening Auction, RHO limit orders under Exchange Rule 11.17(c)(1) and
closest to the Volume Based Tie will be priced in accordance with the that may result in cancelled
Breaker. operation of LLOO orders as described executions.25 The process to select the
in Rule 11.23(a)(12),24 subject to the price of an Opening Auction as
RHO Orders
order’s limit price. At the conclusion of described above could lead to a price
An RHO Order is ‘‘[a] limit or market the Opening Auction, any unexecuted that is outside of the Collar Price Range.
order that is designated for execution portion of a RHO limit order will be In that case, the Exchange will then look
only during Regular Trading Hours, placed on the Continuous Book at its to find a price to execute the auction
which includes the Opening Auction, limit price (subject to the cancelling of within the Collar Price Range and in
the Closing Auction, and IPO/Halt certain RHO limit orders are described accordance with the price selection
Auctions for BZX listed securities and below). The Exchange believes that such process set forth above. The Exchange
the Opening Process for non-BZX-listed treatment is consistent with the existing selecting a less aggressive price for the
securities (as such terms are defined in treatment of RHO limit orders submitted auction within the Collar Price Range
Rule 11.23 and 11.24). RHO orders are between 9:28 a.m. and 9:30 a.m. which can result in the unexecuted RHO limit
also Eligible Auction Orders 18 and may are subject to the pricing restrictions orders priced more aggressively than the
participate in the Opening Auction.19 applicable to LLOO orders. However, auction price being placed on the
Any Eligible Auction Orders designated because, unlike LLOO orders, RHO limit Continuous Book upon conclusion of
for the Opening Auction will be queued orders will be added to the Continuous the Opening Auction.
until 9:30 a.m. at which time they will Book at the conclusion of the Opening The Exchange believes that it is
be eligible to be executed in the Auction at their limit price, Members necessary and appropriate to cancel
Opening Auction. Any portion of a RHO should be able to modify such orders RHO orders with a limit price that is
market order will be cancelled between 9:28 a.m. and 9:30 a.m. Such more aggressive than the auction price
immediately following any auction in functionality provides Members the in such circumstances. Other than RHO
which it is not executed.’’ 20 However, price protections necessary to limit orders, all Eligible Auction Orders
any portion of an RHO limit order that incentivize early entry of orders for will simply be cancelled if they do not
is not executed in the auction will be participation in the Opening Auction execute in the Opening Auction. RHO
placed on the Continuous Book at the while simultaneously allowing a limit orders, however, are unique in that
conclusion of the auction and Member to control an order that will be they rest on the Auction Book until the
commencement of Regular Trading entered onto the Continuous Book if it conclusion of the Opening Auction, at
Hours (subject to the cancelling of is not executed in the Opening Auction. which point any unexecuted portion is
certain RHO limit orders are described The Exchange also proposes to added to the Continuous Book. This
below). describe within Exchange Rule could result in unexecuted RHO limit
In general, Eligible Auction Orders 11.23(b)(1) how RHO orders with a limit orders priced more aggressively than the
designated for the Opening Auction may price outside of the Collar Price Range auction price to be added to the
not be cancelled or modified between are handled. Where the Opening Continuous Book, immediately applying
9:28 a.m. and 9:30 a.m.21 The Exchange Auction would have occurred at a price price pressure in the direction of the
now proposes to add additional level but for such price level being price that the Opening Auction would
specificity to Rule 11.23(b)(1) regarding greater than (less than) the high (low) have initially occurred but for the
how RHO limit orders are handled in range of the Collar Price Range (i.e., Exchange selecting a price within the
the Opening Auction. Specifically, the outside the Collar Price Range), all buy Collar Price Range, thereby
Exchange proposes to amend Rule (sell) limit RHO orders with a limit controverting the purpose of the Collar
11.23(b)(1)(B) to describe current price more aggressive than the BZX Price Range. Further, such a set of
behavior that allows Members to Official Opening Price that are not circumstances would also undermine
modify, but not cancel, RHO limit executed in the Opening Auction will the value of the price discovery process
orders designated for the Opening be cancelled. of the Opening Auction and could result
Auction between 9:28 a.m. and 9:30 The Collar Price Range is utilized to in executions eligible for review as
a.m.22 help limit volatility during the auction
The rule text currently provides that 25 As set forth under Exchange Rule 11.23(a)(6),
RHO limit orders submitted between 24 Under Exchange Rule 11.23(a)(12), LLOO the ‘‘Collar Price Range’’ is the range from a set
9:28 a.m. and 9:30 a.m. are treated as orders are priced as follows: to the extent a LLOO percentage below the Collar Midpoint (as defined
Late-Limit-On-Open (‘‘LLOO’’) 23 orders bid or offer received by the Exchange has a limit below) to above the Collar Midpoint, such set
price that is more aggressive than the NBB or NBO, percentage being dependent on the value of the
until the Opening Auction has the price of such bid or offer is adjusted to be equal Collar Midpoint at the time of the auction, as
concluded. The Exchange proposes to to the NBB or NBO, respectively, at the time of described below. The Collar Midpoint will be the
amend Rule 11.23(b)(1)(B) to state that receipt by the Exchange. Where the NBB or NBO Volume Based Tie Breaker for all applicable
RHO limit orders that are modified becomes more aggressive, the limit price of the auctions, except for IPO Auctions in ETPs (as
LLOO bid or offer will be adjusted to the more defined in Rule 11.8, Interpretation and Policy
18 See
aggressive price, only to the extent that the more .02(d)(2)), for which the Collar Midpoint will be the
Exchange Rule 11.23(a)(8). aggressive price is not more aggressive than the issue price. Specifically, the Collar Price Range will
19 See id. original User entered limit price. The limit price be determined as follows: Where the Collar
20 See Exchange Rule 11.9(b)(7).
will never be adjusted to a less aggressive price. If Midpoint is $25.00 or less, the Collar Price Range
mstockstill on DSK3G9T082PROD with NOTICES
21 See Exchange Rule 11.23(b)(1)(B).
there is no NBB or NBO, the LLOO bid or offer, shall be the range from 10% below the Collar
22 Currently, RHO market orders submitted respectively, will assume its entered limit price. Midpoint to 10% above the Collar Midpoint; where
between 9:28 a.m. and 9:30 a.m. are rejected. See Notwithstanding the foregoing, a LLOO order the Collar Midpoint is greater than $25.00 but less
Exchange Rule 11.23(b)(1)(A). Modifications to entered during the Quote-Only Period of an IPO than or equal to $50.00, the Collar Price Range shall
RHO limit orders between 9:28 a.m. and 9:30 a.m. will be converted to a limit order with a limit price be the range from 5% below the Collar Midpoint
would not be limited by Exchange Rule 11.9(e)(3) equal to the original User entered limit price and to 5% above the Collar Midpoint; and where the
as such orders are not active until the Opening any LLOO orders not executed in their entirety Collar Midpoint is greater than $50.00, the Collar
Auction occurs at 9:30 a.m. during the IPO Auction will be cancelled upon Price Range shall be the range from 3% below the
23 See Exchange Rule 11.23(a)(12). completion of the IPO Auction. Collar Midpoint to 3% above the Collar Midpoint.
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![Federal Register / Vol. 81, No. 237 / Friday, December 9, 2016 / Notices 89181
Paper Comments information collection described below. this proposed collection, including the
• Send paper comments in triplicate In accordance with the Paperwork validity of the methodology and
to Secretary, Securities and Exchange Reduction Act of 1995, we are assumptions used.
Commission, 100 F Street NE., requesting comments on this collection • Enhance the quality, utility, and
Washington, DC 20549–1090. from all interested individuals and clarity of the information to be
organizations. The purpose of this collected.
All submissions should refer to File No. • Minimize the reporting burden on
SR–BatsBZX–2016–81. This file number Notice is to allow 60 days for public
comment preceding submission of the those who are to respond, including the
should be included on the subject line use of automated collection techniques
if email is used. To help the collection to OMB.
DATES: The Department will accept or other forms of information
Commission process and review your
comments from the public up to technology.
comments more efficiently, please use Please note that comments submitted
only one method. The Commission will February 7, 2017.
ADDRESSES: You may submit comments
in response to this Notice are public
post all comments on the Commission’s record. Before including any detailed
Internet Web site (http://www.sec.gov/ by any of the following methods:
• Web: Persons with access to the personal information, you should be
rules/sro.shtml). Copies of the aware that your comments as submitted,
submission, all subsequent Internet may comment on this notice by
going to www.Regulations.gov. You can including your personal information,
amendments, all written statements
search for the document by entering will be available for public review.
with respect to the proposed rule Abstract of proposed collection: The
change that are filed with the ‘‘Docket Number: DOS–2016–0076’’ in
the Search field. Then click the Birth Affidavit is submitted in
Commission, and all written conjunction with an application for a
communications relating to the ‘‘Comment Now’’ button and complete
the comment form. U.S. passport, and is used by Passport
proposed rule change between the Services to collect information for the
Commission and any person, other than • Email: PPTFormsOfficer@state.gov.
You must include the DS form purpose of establishing the U.S.
those that may be withheld from the nationality of a passport applicant who
public in accordance with the number (if applicable), information
collection title, and the OMB control has not submitted an acceptable United
provisions of 5 U.S.C. 552, will be States birth certificate with his/her
available for Web site viewing and number in any correspondence.
FOR FURTHER INFORMATION CONTACT:
passport application. The Secretary of
printing in the Commission’s Public State is authorized to issue U.S.
Reference Room, 100 F Street NE., Direct requests for additional
information regarding the collection passports under 22 U.S.C. 211a et seq.,
Washington, DC 20549, on official 8 U.S.C. 1104, and Executive Order
business days between the hours of listed in this notice, including requests
for copies of the proposed collection 11295 (August 5, 1966). Pursuant to 22
10:00 a.m. and 3:00 p.m. Copies of the U.S.C. 212 and 22 CFR 51.2, only U.S.
filing also will be available for instrument and supporting documents,
by mail to PPT Forms Officer, U.S. nationals may be issued a U.S. passport.
inspection and copying at the principal Most passport applicants show U.S.
office of the Exchange. All comments Department of State, CA/PPT/S/L 44132
Mercure Cir, P.O. Box 1227 , Sterling, nationality by providing a birth
received will be posted without change; certificate showing the applicant was
the Commission does not edit personal VA 20166–1227, or PPTFormsOfficer@
state.gov. born in the United States. Some
identifying information from applicants, however, may have been
submissions. You should submit only SUPPLEMENTARY INFORMATION: born in the United States (and subject to
information that you wish to make • Title of Information Collection: its jurisdiction), but were never issued
available publicly. All submissions Birth Affidavit. a birth certificate. Form DS–10 is a form
should refer to File No. SR–BatsBZX– • OMB Control Number: 1405–0132. affidavit for completion by a witness to
2016–81, and should be submitted on or • Type of Request: Revision of a
the birth of such an applicant; it collects
before December 30, 2016. Currently Approved Collection.
• Originating Office: Department of information relevant to establishing the
For the Commission, by the Division of identity of the affiant, and the birth
Trading and Markets, pursuant to delegated State, Bureau of Consular Affairs,
Passport Services, Office of Legal Affairs circumstances of the passport applicant.
authority.32
and Law Enforcement Liaison (CA/PPT/ If credible, the affidavit may permit the
Eduardo A. Aleman, applicant to show U.S. nationality based
Assistant Secretary. S/L/LA).
• Form Number: DS–10. on the applicant’s birth in the United
[FR Doc. 2016–29465 Filed 12–8–16; 8:45 am]
• Respondents: Individuals. States, despite never having been issued
BILLING CODE 8011–01–P • Estimated Number of Respondents: a U.S. birth certificate. We use the
22,056. information collected on the person
• Estimated Number of Responses: completing the affidavit to confirm that
DEPARTMENT OF STATE 22,056. individual’s identity, which is relevant
[Public Notice: 9796]
• Average Time Per Response: 40 to confirming his or her relationship to
minutes. the applicant and the likelihood that the
60-Day Notice of Proposed Information • Total Estimated Burden Time: affiant has actual knowledge of the
Collection: Birth Affidavit 14,711 hours. circumstances of the applicant’s birth.
• Frequency: On Occasion. Methodology: When needed, a Birth
ACTION:Notice of request for public • Obligation to Respond: Required to Affidavit is completed at the time a
mstockstill on DSK3G9T082PROD with NOTICES
comment and submission to OMB of Obtain a Benefit. person applies for a U.S. passport.
proposed collection of information. We are soliciting public comments to
permit the Department to: Brenda S. Sprague,
SUMMARY: The Department of State is • Evaluate whether the proposed Deputy Assistant Secretary for Passport
seeking Office of Management and information collection is necessary for Services, Bureau of Consular Affairs,
Budget (OMB) approval for the the proper functions of the Department. Department of State.
• Evaluate the accuracy of our [FR Doc. 2016–29533 Filed 12–8–16; 8:45 am]
32 17 CFR 200.30–3(a)(12). estimate of the time and cost burden for BILLING CODE 4710–06–P
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Document Created: 2018-02-14 09:03:24
Document Modified: 2018-02-14 09:03:24
| 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 89176 |
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