81 FR 9568 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13(b)(3)(H), Order Execution and Routing, To Amend the Operation of Non-Displayed Orders and Reserve Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 37 (February 25, 2016)
Federal Register Volume 81, Issue 37 (February 25, 2016)
| Page Range | 9568-9570 | |
| FR Document | 2016-03948 |
[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)] [Notices] [Pages 9568-9570] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-03948] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77188; File No. SR-BATS-2016-18] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13(b)(3)(H), Order Execution and Routing, To Amend the Operation of Non-Displayed Orders and Reserve Orders February 19, 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 February 10, 2016, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'') filed with the Securities and Exchange Commission (the ``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)(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 is proposing to amend the operation of Non-Displayed Orders \5\ and Reserve Orders \6\ when they are to be routed away from the Exchange pursuant to the Post to Away routing option set forth in Rule 11.13(b)(3)(H). --------------------------------------------------------------------------- \5\ See Exchange Rule 11.9(c)(11). \6\ See Exchange Rule 11.9(c)(1). --------------------------------------------------------------------------- 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 A Non-Displayed Order is an order that is not displayed on the Exchange.\7\ A Reserve Order is a limit order with a portion of the quantity displayed (``Display Quantity'') and with a reserve portion of the quantity (``Reserve Quantity'') that is not displayed.\8\ Both the Display Quantity and the Reserve [[Page 9569]] Quantity are available for execution against incoming orders. Under the Post to Away routing option, the remainder of an order that was previously routed away and returned to the Exchange may be re-routed to and post on the order book of a destination on the System routing table \9\ as specified by the User.\10\ --------------------------------------------------------------------------- \7\ See Exchange Rule 11.9(c)(11). \8\ See Exchange Rule 11.9(c)(1). \9\ The term ``System routing table'' refers to the proprietary process for determining the specific trading venues to which the System routes orders and the order in which it routes them. See Exchange Rule 11.13(b)(3). \10\ See Exchange Rule 11.13(b)(3)(H). The Post to Away routing option can be combined with the following routing options: ROUT, ROUX, ROUZ, INET, RDOT, and RDOX. Id. An order subject to the ROUT, ROUX, ROUZ, INET, RDOT, and RDOX routing options will not be posted to the order book of the Trading Center to which it is routed. The User may elect that the order be cancelled or post to the BATS Book upon its initial return to the Exchange. Id. Alternatively, if the User had selected the Post to Away routing option, the order would be currently routed to the away Trading Center as a Displayed Order. --------------------------------------------------------------------------- Currently, Non-Displayed Orders and Reserve Orders that are routed to an away Trading Center pursuant to the Post to Away routing option are routed as fully displayed orders. The Exchange proposes to identify Non-Displayed Orders and Reserve Orders as such when routed to an away Trading Center. The Exchange believes doing so is consistent with the original intent of the order, to be not displayed or to include a Reserve Quantity.\11\ --------------------------------------------------------------------------- \11\ Routable Non-Displayed and Reserve Orders would be handled in accordance with the rules of the Trading Center to which they are routed. --------------------------------------------------------------------------- The Exchange, therefore, proposes to amend the definition of Non- Displayed Orders under Exchange Rule 11.9(c)(11) to state that a Non- Displayed Order that is to be re-routed pursuant to the Post to Away routing option set forth in Rule 11.13(b)(3)(H) will be identified as a Non-Displayed Order when routed to an away Trading Center. Similarly, the Exchange proposes to amend the definition of a Reserve Order under Exchange Rule 11.9(c)(1) to state that a Reserve Order that is to be re-routed pursuant to the Post to Away routing option set forth in Rule 11.13(b)(3)(H) will be identified as a Reserve Order when routed to an away Trading Center. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\12\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\13\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The proposal promotes just and equitable principles of trade by enabling Members to continue to identify their order as a Non-Displayed Order or Reserve Order when they are re-routed to an away Trading Center. The proposal also removes impediments to and perfects the mechanism of a free and open market and a national market system by providing Users the flexibility with regard to the handling of their orders by ensuring that the order is not altered and retains its original instructions from order entry when it is routed to an away Trading Center. Doing so ensures that such orders that are routed pursuant to the Post to Away routing option may be posted to the away Trading Center's order book consistent with the order's original instructions. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes its proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposal would enhance competition by attracting additional order flow to the Exchange because it allows Users to ensure that their order is not altered and retains its original instructions from order entry when it is routed to an away Trading Center. (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 unsolicited 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) 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 \14\ and paragraph (f)(6) of Rule 19b-4 thereunder.\15\ 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 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 Number SR-BATS-2016-18 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-BATS-2016-18. 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 [[Page 9570]] 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BATS-2016-18 and should be submitted on or before March 17, 2016. --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ Brent J. Fields, Secretary. [FR Doc. 2016-03948 Filed 2-24-16; 8:45 am] BILLING CODE 8011-01-P
![9568 Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices
unsolicited written comments from number should be included on the ‘‘Exchange’’ or ‘‘BATS’’) filed with the
Members or other interested parties. subject line if email is used. To help the Securities and Exchange Commission
Commission process and review your (the ‘‘Commission’’) the proposed rule
III. Date of Effectiveness of the
comments more efficiently, please use change as described in Items I and II
Proposed Rule Change and Timing for
only one method. The Commission will below, which Items have been prepared
Commission Action post all comments on the Commission’s by the Exchange. The Exchange has
Because the foregoing proposed rule Internet Web site (http://www.sec.gov/ designated this proposal as a ‘‘non-
change does not: (A) Significantly affect rules/sro.shtml). Copies of the controversial’’ proposed rule change
the protection of investors or the public submission, all subsequent pursuant to Section 19(b)(3)(A) of the
interest; (B) impose any significant amendments, all written statements Act 3 and Rule 19b–4(f)(6)(iii)
burden on competition; and (C) by its with respect to the proposed rule thereunder,4 which renders it effective
terms, become operative for 30 days change that are filed with the upon filing with the Commission. The
from the date on which it was filed or Commission, and all written Commission is publishing this notice to
such shorter time as the Commission communications relating to the solicit comments on the proposed rule
may designate it has become effective proposed rule change between the change from interested persons.
pursuant to Section 19(b)(3)(A) of the Commission and any person, other than
Act 14 and paragraph (f)(6) of Rule 19b– those that may be withheld from the I. Self-Regulatory Organization’s
4 thereunder,15 the Exchange has public in accordance with the Statement of the Terms of Substance of
designated this rule filing as non- provisions of 5 U.S.C. 552, will be the Proposed Rule Change
controversial. The Exchange has given available for Web site viewing and The Exchange is proposing to amend
the Commission written notice of its printing in the Commission’s Public the operation of Non-Displayed Orders 5
intent to file the proposed rule change, Reference Room, 100 F Street NE., and Reserve Orders 6 when they are to
along with a brief description and text Washington, DC 20549 on official be routed away from the Exchange
of the proposed rule change at least five business days between the hours of pursuant to the Post to Away routing
business days prior to the date of filing 10:00 a.m. and 3:00 p.m. Copies of such option set forth in Rule 11.13(b)(3)(H).
of the proposed rule change, or such filing also will be available for The text of the proposed rule change
shorter time as designated by the inspection and copying at the principal is available at the Exchange’s Web site
Commission. office of the Exchange. All comments at www.batstrading.com, at the
At any time within 60 days of the received will be posted without change; principal office of the Exchange, and at
filing of the proposed rule change, the the Commission does not edit personal the Commission’s Public Reference
Commission summarily may identifying information from Room.
temporarily suspend such rule change if submissions. You should submit only
II. Self-Regulatory Organization’s
it appears to the Commission that such information that you wish to make
Statement of the Purpose of, and
action is: (1) Necessary or appropriate in available publicly. All submissions
Statutory Basis for, the Proposed Rule
the public interest; (2) for the protection should refer to File Number SR–EDGX–
Change
of investors; or (3) otherwise in 2016–03, and should be submitted on or
furtherance of the purposes of the Act. before March 17, 2016. In its filing with the Commission, the
If the Commission takes such action, the Exchange included statements
For the Commission, by the Division of
Commission shall institute proceedings Trading and Markets, pursuant to delegated concerning the purpose of and basis for
to determine whether the proposed rule authority.16 the proposed rule change and discussed
should be approved or disapproved. Brent J. Fields, any comments it received on the
Secretary. proposed rule change. The text of these
IV. Solicitation of Comments statements may be examined at the
[FR Doc. 2016–03942 Filed 2–24–16; 8:45 am]
Interested persons are invited to places specified in Item IV below. The
BILLING CODE 8011–01–P
submit written data, views, and Exchange has prepared summaries, set
arguments concerning the foregoing, forth in Sections A, B, and C below, of
including whether the proposed rule SECURITIES AND EXCHANGE the most significant parts of such
change is consistent with the Act. COMMISSION statements.
Comments may be submitted by any of (A) Self-Regulatory Organization’s
the following methods: [Release No. 34–77188; File No. SR–BATS–
2016–18] Statement of the Purpose of, and
Electronic Comments Statutory Basis for, the Proposed Rule
Self-Regulatory Organizations; BATS Change
• Use the Commission’s Internet
Exchange, Inc.; Notice of Filing and
comment form (http://www.sec.gov/ 1. Purpose
Immediate Effectiveness of a Proposed
rules/sro.shtml); or A Non-Displayed Order is an order
Rule Change to Rule 11.13(b)(3)(H),
• Send an email to rule-comments@ that is not displayed on the Exchange.7
Order Execution and Routing, To
sec.gov. Please include File Number SR– A Reserve Order is a limit order with a
Amend the Operation of Non-Displayed
EDGX–2016–03 on the subject line. portion of the quantity displayed
Orders and Reserve Orders
Paper Comments (‘‘Display Quantity’’) and with a reserve
February 19, 2016. portion of the quantity (‘‘Reserve
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the Quantity’’) that is not displayed.8 Both
mstockstill on DSK4VPTVN1PROD with NOTICES
to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the the Display Quantity and the Reserve
and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
NE., Washington, DC 20549–1090. notice is hereby given that on February 3 15 U.S.C. 78s(b)(3)(A).
All submissions should refer to File 10, 2016, BATS Exchange, Inc. (the 4 17 CFR 240.19b–4(f)(6)(iii).
Number SR–EDGX–2016–03. This file 5 See Exchange Rule 11.9(c)(11).
16 17 CFR 200.30–3(a)(12). 6 See Exchange Rule 11.9(c)(1).
14 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 7 See Exchange Rule 11.9(c)(11).
15 17 CFR 240.19b 4. 2 17 CFR 240.19b–4. 8 See Exchange Rule 11.9(c)(1).
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![9570 Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices
10:00 a.m. and 3:00 p.m. Copies of such Displayed 5 instruction and orders with Currently, orders with a Non-
filing will also be available for Reserve Quantity 6 under Rule 11.6, Displayed instruction or Reserve
inspection and copying at the principal Definitions, when they are to be routed Quantity that are routed to an away
office of the Exchange. All comments away from the Exchange pursuant to the Trading Center pursuant to the Post to
received will be posted without change; Post to Away routing option set forth in Away routing option are routed as fully
the Commission does not edit personal Rule 11.11(g)(15). displayed orders. The Exchange
identifying information from The text of the proposed rule change proposes to include a Non-Displayed
submissions. You should submit only is available at the Exchange’s Web site instruction or to include a Reserve
information that you wish to make at www.batstrading.com, at the Quantity on orders routed to an away
available publicly. All submissions principal office of the Exchange, and at Trading Center. The Exchange believes
should refer to File No. SR–BATS– the Commission’s Public Reference doing so is consistent with the original
2016–18 and should be submitted on or Room. intent of the order, to be Non-Displayed
before March 17, 2016. II. Self-Regulatory Organization’s or to include a Reserve Quantity.11
For the Commission, by the Division of The Exchange, therefore, proposes to
Statement of the Purpose of, and
Trading and Markets, pursuant to delegated amend the definition of Non-Displayed
Statutory Basis for, the Proposed Rule
authority.16 under Exchange Rule 11.6(d)(2) to state
Change
Brent J. Fields, that an order with a Non-Displayed
In its filing with the Commission, the instruction that is to be re-routed
Secretary.
Exchange included statements pursuant to the Post to Away routing
[FR Doc. 2016–03948 Filed 2–24–16; 8:45 am] concerning the purpose of and basis for option set forth in Rule 11.11(g)(15) will
BILLING CODE 8011–01–P the proposed rule change and discussed be identified as Non-Displayed when
any comments it received on the routed to an away Trading Center.
proposed rule change. The text of these Similarly, the Exchange proposes to
SECURITIES AND EXCHANGE statements may be examined at the
COMMISSION amend the definition of Reserve
places specified in Item IV below. The Quantity under Exchange Rule 11.6(m)
Exchange has prepared summaries, set to state that the Reserve Quantity of an
[Release No. 34–77190; File No. SR–EDGA–
2016–03] forth in Sections A, B, and C below, of order that is to be re-routed pursuant to
the most significant parts of such the Post to Away routing option set
Self-Regulatory Organizations; EDGA statements. forth in Rule 11.11(g)(15) will be
Exchange, Inc.; Notice of Filing and (A) Self-Regulatory Organization’s identified as an order with a Reserve
Immediate Effectiveness of a Proposed Statement of the Purpose of, and Quantity when routed to an away
Rule Change to Rule 11.6, Definitions, Statutory Basis for, the Proposed Rule Trading Center.
To Amend the Operation of Orders Change 2. Statutory Basis
With a Non-Displayed Instruction and
Orders With Reserve Quantity 1. Purpose The Exchange believes that the
Non-Displayed is an instruction the proposed rule change is consistent with
February 19, 2016. Section 6(b) of the Act,12 in general, and
User may attach to an order stating that
Pursuant to Section 19(b)(1) of the the order is not to be displayed by the furthers the objectives of Section 6(b)(5)
Securities Exchange Act of 1934 (the System on the EDGA Book.7 A Reserve of the Act,13 in particular, in that it is
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Quantity is the portion of an order that designed to prevent fraudulent and
notice is hereby given that on February includes a Non-Displayed instruction in manipulative acts and practices, to
10, 2016, EDGA Exchange, Inc. (the which a portion of that order is also promote just and equitable principles of
‘‘Exchange’’ or ‘‘EDGA’’) filed with the displayed on the EDGA Book.8 Both the trade, and to remove impediments to
Securities and Exchange Commission portion of the order with a Displayed and perfect the mechanism of a free and
(the ‘‘Commission’’) the proposed rule instruction and the Reserve Quantity are open market and a national market
change as described in Items I and II available for execution against incoming system. The proposal promotes just and
below, which Items have been prepared orders. Under the Post to Away routing equitable principles of trade because by
by the Exchange. The Exchange has option, the remainder of an order that enabling Members to continue to
designated this proposal as a ‘‘non- was previously routed away and identify their order as an order with a
controversial’’ proposed rule change returned to the Exchange may be re- Non-Displayed instruction or an order
pursuant to Section 19(b)(3)(A) of the routed to and post on the order book of with Reserve Quantity when they are re-
Act 3 and Rule 19b–4(f)(6)(iii) a destination on the System routing routed to an away Trading Center. The
thereunder,4 which renders it effective table 9 as specified by the User.10 proposal also removes impediments to
upon filing with the Commission. The and perfects the mechanism of a free
Commission is publishing this notice to 5 See Exchange Rule 11.6(e)(2). and open market and a national market
solicit comments on the proposed rule 6 See Exchange Rule 11.6(m).
change from interested persons. 7 See Exchange Rule 11.6(e)(2). The term ‘‘EDGA upon its initial return to the Exchange. Id. An order
Book’’ is defined as ‘‘the System’s electronic file of subject to the ROUT, ROUX, ROUE, ROUD, ROUZ,
I. Self-Regulatory Organization’s orders.’’ See Exchange Rule 1.5(d). ROUQ, RDOT, RDOX, ROBB, ROCO, INET, IOCM
Statement of the Terms of Substance of 8 See Exchange Rule 11.6(m). and ICMT routing options will not be posted to the
the Proposed Rule Change 9 The term ‘‘System routing table’’ refers to the order book of the Trading Center to which it is
proprietary process for determining the specific routed. Alternatively, if the User had selected the
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange is proposing to amend trading venues to which the System routes orders Post to Away routing option, the order would be
the operation of orders with a Non- and the order in which it routes them. See currently routed to the away Trading Center as an
Exchange Rule 11.11(g). order with a Displayed instruction.
10 See Exchange Rule 11.11(g)(15). The Post to 11 Orders to be routed with a Non-Displayed
16 17 CFR 200.30–3(a)(12).
Away routing option can be combined with the instruction or a Reserve Quantity would be handled
1 15 U.S.C. 78s(b)(1). following routing strategies: ROUT, ROUX, ROUE, in accordance with the rules of the Trading Center
2 17 CFR 240.19b–4. to which they are routed.
ROUD, ROUZ, ROUQ, RDOT, RDOX, ROBB, ROCO,
3 15 U.S.C. 78s(b)(3)(A). 12 15 U.S.C. 78f.
INET, IOCM and ICMT. Id. The User may elect that
4 17 CFR 240.19b–4(f)(6)(iii). the order be cancelled or post to the EDGA Book 13 15 U.S.C. 78f(b)(5).
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Document Created: 2018-02-02 14:35:23
Document Modified: 2018-02-02 14:35:23
| 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 9568 |
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