81 FR 9571 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.6, Definitions, To Amend the Operation of Orders With a Non-Displayed Instruction and Orders With Reserve Quantity
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 37 (February 25, 2016)
Federal Register Volume 81, Issue 37 (February 25, 2016)
| Page Range | 9571-9573 | |
| FR Document | 2016-03949 |
[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)] [Notices] [Pages 9571-9573] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-03949] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77189; File No. SR-EDGX-2016-08] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.6, Definitions, To Amend the Operation of Orders With a Non- Displayed Instruction and Orders With Reserve Quantity 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, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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 orders with a Non-Displayed \5\ instruction and orders with Reserve Quantity \6\ under Rule 11.6, Definitions, when they are to be routed away from the Exchange pursuant to the Post to Away routing option set forth in Rule 11.11(g)(12). --------------------------------------------------------------------------- \5\ See Exchange Rule 11.6(e)(2). \6\ See Exchange Rule 11.6(m). --------------------------------------------------------------------------- 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 [[Page 9572]] 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 Non-Displayed is an instruction the User may attach to an order stating that the order is not to be displayed by the System on the EDGX Book.\7\ A Reserve Quantity is the portion of an order that includes a Non-Displayed instruction in which a portion of that order is also displayed on the EDGX Book.\8\ Both the portion of the order with a Displayed instruction and the Reserve 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 11.6(e)(2). The term ``EDGX Book'' is defined as ``the System's electronic file of orders.'' See Exchange Rule 1.5(d). \8\ See Exchange Rule 11.6(m). \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 11.11(g). \10\ See Exchange Rule 11.11(g)(12). The Post to Away routing option can be combined with the following routing options: ROUT, ROUX and ROUE. Id. An order subject to the ROUT, ROUX and ROUE 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 EDGX 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 an order with a Displayed instruction. --------------------------------------------------------------------------- Currently, orders with a Non-Displayed instruction or Reserve Quantity 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 include a Non-Displayed instruction or to include a Reserve Quantity on orders routed to an away Trading Center. The Exchange believes doing so is consistent with the original intent of the order, to be Non-Displayed or to include a Reserve Quantity.\11\ --------------------------------------------------------------------------- \11\ Orders to be routed with a Non-Displayed instruction or a Reserve Quantity 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 under Exchange Rule 11.6(d)(2) to state that an order with a Non-Displayed instruction that is to be re-routed pursuant to the Post to Away routing option set forth in Rule 11.11(g)(12) will be identified as Non-Displayed when routed to an away Trading Center. Similarly, the Exchange proposes to amend the definition of Reserve Quantity under Exchange Rule 11.6(m) to state that the Reserve Quantity of an order that is to be re-routed pursuant to the Post to Away routing option set forth in Rule 11.11(g)(12) will be identified as an order with a Reserve Quantity 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 an order with a Non-Displayed instruction or an order with Reserve Quantity 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 [[Page 9573]] 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-EDGX-2016-08 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-EDGX-2016-08. 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 received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-EDGX-2016-08 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. 2016-03949 Filed 2-24-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices 9571
system by providing Users the flexibility it appears to the Commission that such 2016–03 and should be submitted on or
with regard to the handling of their action is: (1) Necessary or appropriate in before March 17, 2016.
orders by ensuring that the order is not the public interest; (2) for the protection For the Commission, by the Division of
altered and retains its original of investors; or (3) otherwise in Trading and Markets, pursuant to delegated
instructions from order entry when it is furtherance of the purposes of the Act. authority.16
routed to an away Trading Center. Doing If the Commission takes such action, the Brent J. Fields,
so ensures that such orders that are Commission shall institute proceedings Secretary.
routed pursuant to the Post to Away to determine whether the proposed rule
[FR Doc. 2016–03950 Filed 2–24–16; 8:45 am]
routing option may be posted to the should be approved or disapproved.
BILLING CODE 8011–01–P
away Trading Center’s order book IV. Solicitation of Comments
consistent with the order’s original
instructions. Interested persons are invited to
submit written data, views and SECURITIES AND EXCHANGE
(B) Self-Regulatory Organization’s arguments concerning the foregoing, COMMISSION
Statement on Burden on Competition including whether the proposal is [Release No. 34–77189; File No. SR–EDGX–
The Exchange believes its proposed consistent with the Act. Comments may 2016–08]
rule change would not impose any be submitted by any of the following
burden on competition that is not methods: Self-Regulatory Organizations; EDGX
necessary or appropriate in furtherance Exchange, Inc.; Notice of Filing and
Electronic Comments Immediate Effectiveness of a Proposed
of the purposes of the Act. The
Exchange believes the proposal would • Use the Commission’s Internet Rule Change to Rule 11.6, Definitions,
enhance competition by attracting comment form (http://www.sec.gov/ To Amend the Operation of Orders
additional order flow to the Exchange rules/sro.shtml); or With a Non-Displayed Instruction and
• Send an email to rule-comments@ Orders With Reserve Quantity
because it allows Users to ensure that
sec.gov. Please include File Number SR–
their order is not altered and retains its February 19, 2016.
EDGA–2016–03 on the subject line.
original instructions from order entry Pursuant to Section 19(b)(1) of the
when it is routed to an away Trading Paper Comments Securities Exchange Act of 1934 (the
Center. • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
(C) Self-Regulatory Organization’s to Secretary, Securities and Exchange notice is hereby given that on February
Statement on Comments on the Commission, 100 F Street NE., 10, 2016, EDGX Exchange, Inc. (the
Proposed Rule Change Received From Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Members, Participants or Others All submissions should refer to File Securities and Exchange Commission
Number SR–EDGA–2016–03. This file (the ‘‘Commission’’) the proposed rule
The Exchange has not solicited, and
number should be included on the change as described in Items I and II
does not intend to solicit, comments on
subject line if email is used. To help the below, which Items have been prepared
this proposed rule change. The
Commission process and review your by the Exchange. The Exchange has
Exchange has not received any
comments more efficiently, please use designated this proposal as a ‘‘non-
unsolicited written comments from
only one method. The Commission will controversial’’ proposed rule change
Members or other interested parties.
post all comments on the Commission’s pursuant to Section 19(b)(3)(A) of the
III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/ Act 3 and Rule 19b–4(f)(6)(iii)
Proposed Rule Change and Timing for rules/sro.shtml). Copies of the thereunder,4 which renders it effective
Commission Action submission, all subsequent upon filing with the Commission. The
Because the foregoing proposed rule amendments, all written statements Commission is publishing this notice to
change does not: (A) Significantly affect with respect to the proposed rule solicit comments on the proposed rule
the protection of investors or the public change that are filed with the change from interested persons.
interest; (B) impose any significant Commission, and all written I. Self-Regulatory Organization’s
burden on competition; and (C) become communications relating to the Statement of the Terms of Substance of
operative for 30 days from the date on proposed rule change between the the Proposed Rule Change
which it was filed or such shorter time Commission and any person, other than
those that may be withheld from the The Exchange is proposing to amend
as the Commission may designate, it has
public in accordance with the the operation of orders with a Non-
become effective pursuant to Section
provisions of 5 U.S.C. 552, will be Displayed 5 instruction and orders with
19(b)(3)(A) of the Act 14 and paragraph
available for Web-site viewing and Reserve Quantity 6 under Rule 11.6,
(f)(6) of Rule 19b–4 thereunder.15 The
printing in the Commission’s Public Definitions, when they are to be routed
Exchange has given the Commission
Reference Room, 100 F Street NE., away from the Exchange pursuant to the
written notice of its intent to file the
Washington, DC 20549, on official Post to Away routing option set forth in
proposed rule change, along with a brief
business days between the hours of Rule 11.11(g)(12).
description and text of the proposed The text of the proposed rule change
rule change at least five business days 10:00 a.m. and 3:00 p.m. Copies of such
filing will also be available for is available at the Exchange’s Web site
prior to the date of filing of the at www.batstrading.com, at the
proposed rule change, or such shorter inspection and copying at the principal
principal office of the Exchange, and at
mstockstill on DSK4VPTVN1PROD with NOTICES
time as designated by the Commission. office of the Exchange. All comments
At any time within 60 days of the received will be posted without change; 16 17 CFR 200.30–3(a)(12).
filing of the proposed rule change, the the Commission does not edit personal 1 15 U.S.C. 78s(b)(1).
Commission summarily may identifying information from 2 17 CFR 240.19b–4.
temporarily suspend such rule change if submissions. You should submit only 3 15 U.S.C. 78s(b)(3)(A).
information that you wish to make 4 17 CFR 240.19b–4(f)(6)(iii).
14 15 U.S.C. 78s(b)(3)(A). available publicly. All submissions 5 See Exchange Rule 11.6(e)(2).
15 17 CFR 240.19b–4. should refer to File Number SR–EDGA– 6 See Exchange Rule 11.6(m).
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![Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices 9573
arguments concerning the foregoing, SECURITIES AND EXCHANGE events that occur upon arrival of an
including whether the proposal is COMMISSION Intermarket Sweep Order designated
consistent with the Act. Comments may Day (‘‘Day ISO’’).
[Release No. 34–77197; File No. SR– Rule 7.31P(e)(3)(C) provides that a
be submitted by any of the following NYSEArca–2016–34]
methods: Day ISO, if marketable on arrival, will
Self-Regulatory Organizations; NYSE be immediately traded with contra-side
Electronic Comments interest in the NYSE Arca Book up to its
Arca, Inc.; Notice of Filing and
• Use the Commission’s Internet Immediate Effectiveness of Proposed full size and limit price and any
comment form (http://www.sec.gov/ Rule Change Amending Rule untraded quantity of a Day ISO will be
rules/sro.shtml); or 7.31P(a)(2)(C) Relating to Repricing displayed at its limit price and may lock
• Send an email to rule-comments@ Events or cross a protected quotation that was
sec.gov. Please include File Number SR– displayed at the time of arrival of the
February 19, 2016. Day ISO. Accordingly, under current
EDGX–2016–08 on the subject line.
Pursuant to Section 19(b)(1) 1 of the rules, on arrival, a Day ISO may be
Paper Comments Securities Exchange Act of 1934 (the displayed at a price that locks or crosses
‘‘Act’’),2 and Rule 19b–4 thereunder,3 a protected quotation.
• Send paper comments in triplicate Under Rule 7.36P(b)(3), if arrival of a
notice is hereby given that on February
to Secretary, Securities and Exchange Day ISO would result in less than a
19, 2016, NYSE Arca, Inc. (the
Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with round lot being displayed, such order
Washington, DC 20549–1090. the Securities and Exchange would be displayed on the Exchange’s
All submissions should refer to File Commission (the ‘‘Commission’’) the proprietary data feeds, but it would not
Number SR–EDGX–2016–08. This file proposed rule change as described in be considered a new Exchange BBO or
number should be included on the Items I and II below, which Items have be considered a protected quotation. In
subject line if email is used. To help the been prepared by the self-regulatory addition, under Rule 7.38P(b)(1), the
Commission process and review your organization. The Commission is working price of an odd-lot quantity of
comments more efficiently, please use publishing this notice to solicit a Day ISO will depend on where the
only one method. The Commission will comments on the proposed rule change limit price is in relation to the PBBO,
post all comments on the Commission’s from interested persons. and whether the PBBO is crossed.
Internet Web site (http://www.sec.gov/ Separately, Rule 7.31P(a)(2)(C)
I. Self-Regulatory Organization’s describes how the Exchange re-prices
rules/sro.shtml). Copies of the
Statement of the Terms of Substance of resting orders to buy (sell) to avoid
submission, all subsequent
the Proposed Rule Change locking or crossing a protected
amendments, all written statements
with respect to the proposed rule The Exchange proposes to amend quotation of another market by
change that are filed with the Rule 7.31P(a)(2)(C) (Orders and assigning a display price one MPV
Commission, and all written Modifiers) relating to repricing events. below (above) the PBO (PBB) and a
communications relating to the The proposed rule change is available working price equal to the PBO (PBB).
proposed rule change between the on the Exchange’s Web site at The rule further specifies that ‘‘[i]f a Day
Commission and any person, other than www.nyse.com, at the principal office of ISO to buy (sell) arrives before the PBO
those that may be withheld from the the Exchange, and at the Commission’s (PBB) is updated, such re-priced Limit
public in accordance with the Public Reference Room. Order(s) to buy (sell) will be repriced to
provisions of 5 U.S.C. 552, will be the lower (higher) of the display price
II. Self-Regulatory Organization’s
available for Web site viewing and of the Day ISO or the original price of
Statement of the Purpose of, and
printing in the Commission’s Public the Limit Order(s).’’ Accordingly,
Statutory Basis for, the Proposed Rule
Reference Room, 100 F Street NE., current rules specify that arrival of a
Change
Washington, DC 20549, on official Day ISO results in a repricing event for
business days between the hours of In its filing with the Commission, the resting orders.
10:00 a.m. and 3:00 p.m. Copies of such self-regulatory organization included The Exchange proposes to amend
filing will also be available for statements concerning the purpose of, Rule 7.31P(a)(2)(C) to specify how
inspection and copying at the principal and basis for, the proposed rule change orders are repriced under that paragraph
office of the Exchange. All comments and discussed any comments it received due to the arrival of a Day ISO.
received will be posted without change; on the proposed rule change. The text Specifically, the Exchange proposes to
the Commission does not edit personal of those statements may be examined at specify that the repricing event for
identifying information from the places specified in Item IV below. resting orders under this Rule due to the
submissions. You should submit only The Exchange has prepared summaries, arrival of a Day ISO to buy (sell) would
information that you wish to make set forth in sections A, B, and C below, occur only if the arriving Day ISO
available publicly. All submissions of the most significant parts of such would result in at least a round lot being
should refer to File Number SR–EDGX– statements. displayed as a new BB (BO). In other
2016–08 and should be submitted on or A. Self-Regulatory Organization’s words, the arrival of the Day ISO must
before March 17, 2016. Statement of the Purpose of, and result in a new protected quotation at
Statutory Basis for, the Proposed Rule the Exchange before any resting orders
For the Commission, by the Division of are repriced.
Trading and Markets, pursuant to delegated Change
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange also proposes to specify
authority.16
1. Purpose what would occur if the arriving Day
Brent J. Fields, ISO would not result in at least a round
The Exchange proposes to amend
Secretary. lot being displayed. When resting orders
Rule 7.31P(a)(2)(C) relating to repricing
[FR Doc. 2016–03949 Filed 2–24–16; 8:45 am] have been repriced under Rule
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). 7.31P(a)(2)(C), if a Day ISO to buy (sell)
2 15 U.S.C. 78a. arrives that would result in less than a
16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. round lot being displayed, the Exchange
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Document Created: 2018-02-02 14:35:41
Document Modified: 2018-02-02 14:35:41
| 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 9571 |
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