81 FR 91235 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.5 of Bats EDGX Exchange, Inc. To Extend Through June 30, 2017, the Penny Pilot Program in Options Classes in Certain Issues
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 242 (December 16, 2016)
Federal Register Volume 81, Issue 242 (December 16, 2016)
| Page Range | 91235-91237 | |
| FR Document | 2016-30254 |
[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)] [Notices] [Pages 91235-91237] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30254] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79526; File No. SR-BatsEDGX-2016-71] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.5 of Bats EDGX Exchange, Inc. To Extend Through June 30, 2017, the Penny Pilot Program in Options Classes in Certain Issues December 12, 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 EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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 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)(iii) 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\ 15 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)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to extend through June 30, 2017, the Penny Pilot Program (``Penny Pilot'') in options classes in certain issues (``Pilot Program'') previously approved by the Commission.\5\ --------------------------------------------------------------------------- \5\ The rules of EDGX Options, including rules applicable to EDGX Options' participation in the Penny Pilot, were approved on August 7, 2015. See Securities Exchange Act Release No. 75650 (August 7, 2015), 80 FR 48600 (August 13, 2015) (SR-EDGX-2015-18). EDGX Options commenced operations on November 2, 2015. The Penny Pilot was extended for EDGX Options through December 31, 2016. See Securities Exchange Act Release No. 78052 (June 13, 2016), 81 FR 39731 (June 17, 2016) (SR-BatsEDGX-2016-22). --------------------------------------------------------------------------- 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. [[Page 91236]] 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 purpose of this filing is to extend the Penny Pilot, which was previously approved by the Commission, through June 30, 2017, and to provide revised dates for adding replacement issues to the Pilot Program. The Exchange proposes that any Pilot Program issues that have been delisted may be replaced on the second trading day following January 1, 2017. The replacement issues will be selected based on trading activity for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning June 1, 2016, and ending November 30, 2016). The Exchange represents that the Exchange has the necessary system capacity to continue to support operation of the Penny Pilot. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\6\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \7\ because it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system. The Exchange believes that the Pilot Program promotes just and equitable principles of trade by enabling public customers and other market participants to express their true prices to buy and sell options. Accordingly, the Exchange believes that the proposal is consistent with the Act because it will allow the Exchange to extend the Pilot Program prior to its expiration on December 31, 2016. The Exchange notes that this proposal does not propose any new policies or provisions that are unique or unproven, but instead relates to the continuation of an existing program that operates on a pilot basis. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In this regard, the Exchange notes that the rule change is being proposed in order to continue the Pilot Program, which is a competitive response to analogous programs offered by other options exchanges. The Exchange believes this proposed rule change is necessary to permit fair competition among the options exchanges. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, 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 \8\ and paragraph (f)(6) of Rule 19b-4 thereunder,\9\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-BatsEDGX-2016-71 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-BatsEDGX-2016-71. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments [[Page 91237]] 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-BatsEDGX-2016-71 and should be submitted on or before January 6, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-30254 Filed 12-15-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices 91235
only one method. The Commission will Rule Changes, as modified by SECURITIES AND EXCHANGE
post all comments on the Commission’s Amendments No. 1, will establish a COMMISSION
Internet Web site (http://www.sec.gov/ Clearing Agency Investment Policy that
rules/sro.shtml). Copies of the adheres to a conservative investment [Release No. 34–79526; File No. SR–
submission, all subsequent philosophy that places the highest BatsEDGX–2016–71]
amendments, all written statements priority on maximizing liquidity and
with respect to the Proposed Rule avoiding risk to the funds in the custody Self-Regulatory Organizations; Bats
Changes that are filed with the of the Clearing Agencies, thereby EDGX Exchange, Inc.; Notice of Filing
Commission, and all written promoting the prompt and accurate and Immediate Effectiveness of a
communications relating to the
clearance and settlement of securities, Proposed Rule Change to Rule 21.5 of
Proposed Rule Changes between the
consistent with Section 17A(b)(3)(F) of Bats EDGX Exchange, Inc. To Extend
Commission and any person, other than
those that may be withheld from the the Act, cited above. The Commission Through June 30, 2017, the Penny Pilot
public in accordance with the also finds, as discussed above, that via Program in Options Classes in Certain
provisions of 5 U.S.C. 552, will be the Proposed Rule Changes, as modified Issues
available for Web site viewing and by Amendments No. 1, NSCC will hold
December 12, 2016.
printing in the Commission’s Public the described funds in a manner that
Reference Room, 100 F Street NE., minimizes the risk of loss or delay in Pursuant to Section 19(b)(1) of the
Washington, DC 20549 on official access to them and will invest the funds Securities Exchange Act of 1934 (the
business days between the hours of in instruments with minimal credit, ‘‘Act’’),1 and Rule 19b–4 thereunder,2
10:00 a.m. and 3:00 p.m. Copies of the market and liquidity risks, consistent notice is hereby given that on November
filings also will be available for with Rule 17Ad–22(d)(3) of the Act, 30, 2016, Bats EDGX Exchange, Inc. (the
inspection and copying at the principal cited above. Additionally, the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
office of DTCC and on DTCC’s Web site Commission finds that Amendments Securities and Exchange Commission
(http://dtcc.com/legal/sec-rule- No. 1 only made a technical, non- (‘‘Commission’’) the proposed rule
filings.aspx). All comments received substantive change to the Investment change as described in Items I, II and III
will be posted without change; the Policy as originally proposed. below, which Items have been prepared
Commission does not edit personal Accordingly, the Commission finds by the Exchange. The Exchange has
identifying information from good cause for approving the Proposed designated this proposal as a ‘‘non-
submissions. You should submit only Rule Changes, as modified by controversial’’ proposed rule change
information that you wish to make pursuant to Section 19(b)(3)(A) of the
Amendments No. 1, on an accelerated
available publicly. All submissions
basis, pursuant to Section 19(b)(2) of the Act 3 and Rule 19b–4(f)(6)(iii)
should refer to File Number SR–DTC–
2016–007, SR–FICC–2016–005, or SR– Act.26 thereunder,4 which renders it effective
NSCC–2016–003 and should be upon filing with the Commission. The
V. Conclusion
submitted on or before January 3, 2017. Commission is publishing this notice to
On the basis of the foregoing, the solicit comments on the proposed rule
IV. Accelerated Approval of the change from interested persons.
Commission finds that the Proposed
Proposed Rule Changes, as Modified by
Rule Changes, as modified by I. Self-Regulatory Organization’s
Amendments No. 1
Amendments No. 1, are consistent with Statement of the Terms of Substance of
The Commission, pursuant to Section the requirements of the Act and in
19(b)(2) of the Act,24 finds good cause the Proposed Rule Change
particular with the requirements of
to approve the Proposed Rule Changes, Section 17A of the Act 27 and the rules The Exchange filed a proposal to
as modified by Amendments No. 1, and regulations thereunder. extend through June 30, 2017, the Penny
prior to the thirtieth day after the date
It is therefore ordered, pursuant to Pilot Program (‘‘Penny Pilot’’) in options
of publication of Amendments No. 1 in
Section 19(b)(2) of the Act, that classes in certain issues (‘‘Pilot
the Federal Register. In Amendments
No. 1, the Clearing Agencies make a proposed rule changes SR–DTC–2016– Program’’) previously approved by the
technical correction to the Clearing 007, SR–FICC–2016–005, and SR– Commission.5
Agency Investment Policy. The NSCC–2016–003, as modified by The text of the proposed rule change
originally filed Clearing Agency Amendments No. 1, be, and hereby are, is available at the Exchange’s Web site
Investment Policy referenced a pending approved on an accelerated basis.28 at www.batstrading.com, at the
request for no action relief with the For the Commission, by the Division of principal office of the Exchange, and at
Commission regarding how NSCC Trading and Markets, pursuant to delegated the Commission’s Public Reference
would invest funds in its Fully-Paid-For authority.29 Room.
Account. On December 1, 2016, the
Division took a no-action position Eduardo A. Aleman,
1 15 U.S.C. 78s(b)(1).
regarding how NSCC could invest funds Assistant Secretary. 2 17 CFR 240.19b–4.
in its Fully-Paid-For Account.25 As [FR Doc. 2016–30256 Filed 12–15–16; 8:45 am] 3 15 U.S.C. 78s(b)(3)(A).
such, Amendments No. 1 would amend BILLING CODE 8011–01–P 4 17 CFR 240.19b–4(f)(6)(iii).
the Clearing Agency Investment Policy 5 The rules of EDGX Options, including rules
to reflect the Division’s position. applicable to EDGX Options’ participation in the
mstockstill on DSK3G9T082PROD with NOTICES
As discussed more fully above, the Penny Pilot, were approved on August 7, 2015. See
26 15 U.S.C. 78s(b)(2). Securities Exchange Act Release No. 75650 (August
Commission finds that the Proposed 27 15 7, 2015), 80 FR 48600 (August 13, 2015) (SR–
U.S.C. 78q–1.
28 In approving the Proposed Rule Changes, the EDGX–2015–18). EDGX Options commenced
24 15 U.S.C. 78s(b)(2). operations on November 2, 2015. The Penny Pilot
25 See Commission considered the proposals’ impact on was extended for EDGX Options through December
NSCC, SEC No-Action Letter (December 1,
2016), available at https://www.sec.gov/divisions/ efficiency, competition, and capital formation. 15 31, 2016. See Securities Exchange Act Release No.
marketreg/mr-noaction/2016/national-securities- U.S.C. 78c(f). 78052 (June 13, 2016), 81 FR 39731 (June 17, 2016)
clearing-corporation-120116.pdf. 29 17 CFR 200.30–3(a)(12). (SR–BatsEDGX–2016–22).
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![Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices 91237
received will be posted without change; Goshen Branch Between Firth & Reauthorization Act of 2015, Public Law
the Commission does not edit personal Ammon, in Bingham & Bonneville 114–110 (2015). Under Section 13 of
identifying information from Counties, Idaho, 360 I.C.C. 91 (1979). To that Act (codified at 49 U.S.C. 11708),
submissions. You should submit only address whether this condition the Board must ‘‘promulgate regulations
information that you wish to make adequately protects affected employees, to establish a voluntary and binding
available publicly. All submissions a petition for partial revocation under arbitration process to resolve rail rate
should refer to File No. SR–BatsEDGX– 49 U.S.C. 10502(d) must be filed. and practice complaints’’ that are
2016–71 and should be submitted on or Provided no formal expression of subject to the Board’s jurisdiction.
before January 6, 2017. intent to file an offer of financial Section 11708(f) provides that, unless
assistance (OFA) to subsidize continued parties otherwise agree, an arbitrator or
For the Commission, by the Division of
Trading and Markets, pursuant to delegated rail service has been received, this panel of arbitrators shall be selected
authority.10 exemption will be effective on January from a roster maintained by the Board.
Eduardo A. Aleman, 17, 2017, unless stayed pending Accordingly, the Board’s rules establish
reconsideration.2 Petitions to stay that
Assistant Secretary. a process for creating and maintaining a
do not involve environmental issues
[FR Doc. 2016–30254 Filed 12–15–16; 8:45 am] roster of arbitrators. See Revisions to
and formal expressions of intent to file
BILLING CODE 8011–01–P Arbitration Procedures, EP 730, slip op.
an OFA to subsidize continued rail
service under 49 CFR 1152.27(c)(2) 3 at 3–4 (STB served Oct. 11, 2016).
must be filed by December 23, 2016.4 To establish the initial roster of
SURFACE TRANSPORTATION BOARD Petitions to reopen must be filed by arbitrators, the Board now seeks
January 5, 2017, with the Surface applications from all interested persons
[Docket No. AB 55 (Sub-No. 767X)]
Transportation Board, 395 E Street SW., who wish to be included on the roster.
CSX Transportation, Inc.— Washington, DC 20423–0001. Each applicant should describe his or
Discontinuance of Service A copy of any petition filed with the her experience with rail transportation
Exemption—in Perry County, Ky. Board should be sent to CSXT’s and economic regulation, as well as
representative: Louis E. Gitomer, Law professional or business experience,
CSX Transportation, Inc. (CSXT), filed Offices of Louis E. Gitomer, LLC, 600 including agriculture, in the private
a verified notice of exemption under 49 Baltimore Avenue, Suite 301, Towson, sector. Further, each applicant should
CFR part 1152 subpart F—Exempt MD 21204. describe his or her training in dispute
Abandonments and Discontinuances of If the verified notice contains false or resolution and/or experience in
Service to discontinue service over an misleading information, the exemption arbitration or other forms of dispute
approximately 3.3-mile rail line on is void ab initio. resolution, including the number of
CSXT’s Northern Region, Louisville Board decisions and notices are years of experience. Lastly, the
Division, EK Subdivision, between available on our Web site at applicant should provide his or her
milepost 0WV 242.0 and milepost 0WV ‘‘WWW.STB.GOV.’’ contact information and fees.
245.3 in Hazard, Perry County, Ky. (the Decided: December 13, 2016.
Line). The Line traverses United States Applications should be submitted by
By the Board, Rachel D. Campbell,
Postal Service Zip Codes 41701 and January 17, 2017.1 The Board will assess
Director, Office of Proceedings.
41722. There is one station on the Line, each applicant’s qualifications to
Kenyatta Clay,
Sigmon, located at milepost 0VD 245 determine which individuals can ably
Clearance Clerk.
(FSAC 42845/OPSL 17202).1 serve as arbitrators based on the criteria
[FR Doc. 2016–30275 Filed 12–15–16; 8:45 am]
CSXT has certified that: (1) No local established under 49 CFR 1108.6(b). The
BILLING CODE 4915–01–P Board will then establish the initial
traffic has moved over the Line for at
least two years; (2) because the Line is roster of arbitrators by no-objection vote.
not a through route, no overhead traffic The Board’s roster will include a brief
SURFACE TRANSPORTATION BOARD
has operated, and, therefore, none needs biographical sketch of each arbitrator,
to be rerouted over other lines; (3) no [Docket No. EP 730 (Sub-No. 1)] including information such as
formal complaint filed by a user of rail background, area(s) of expertise,
service on the Line (or by a state or local Revisions to Arbitration Procedures arbitration experience, and geographical
government entity acting on behalf of By decision served on September 30, location, as well as contact information
such user) regarding cessation of service 2016, as corrected on October 11, 2016, and fees, based on the information
over the Line is pending either with the the Board adopted rules to modify its supplied by the arbitrator. The roster
Surface Transportation Board (Board) or arbitration procedures so that its will be published on the Board’s Web
with any U.S. District Court or has been regulations, set forth at 49 CFR 1108 and site, pursuant to 49 CFR 1108.6(b). The
decided in favor of complainant within 1115.8, conform to the requirements of roster will be updated every year and
the two-year period; and (4) the the Surface Transportation may be modified by the Board at any
requirements at 49 CFR 1105.12 time through a no-objection vote.
(newspaper publication) and 49 CFR 2 Although CSXT states in its verified notice that
It is ordered:
1152.50(d)(1) (notice to governmental the proposed consummation date of this transaction
agencies) have been met. is January 16, 2017, this transaction cannot be 1. Applications to be included on the
consummated until January 17, 2017 (50 days from Board’s roster of arbitrators are due by
As a condition to this exemption, any its filing date). 49 CFR 1152.50(d)(2).
mstockstill on DSK3G9T082PROD with NOTICES
employee adversely affected by the 3 Each OFA must be accompanied by the filing January 17, 2017.
discontinuance of service shall be fee, which is currently set at $1,700. See 49 CFR 2. This decision is effective on the day
protected under Oregon Short Line 1002.2(f)(25).
4 Because this is a discontinue proceeding and
of service.
Railroad—Abandonment Portion not an abandonment, interim trail use/rail banking
and public use conditions are not appropriate. 1 Persons who have informally indicated an
10 17 CFR 200.30–3(a)(12). Because there will be an environmental review interest in being included on the arbitrator roster
1 CSXT states that the Sigmon station can be during abandonment, this discontinuance does not (e.g., correspondence to Board members) should
closed. require an environmental review. submit an application pursuant to this decision.
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Document Created: 2018-02-14 09:07:38
Document Modified: 2018-02-14 09:07:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 91235 |
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