82 FR 10101 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BYX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 26 (February 9, 2017)

Page Range		10101-10102
FR Document		2017-02647

Federal Register, Volume 82 Issue 26 (Thursday, February 9, 2017)

[Federal Register Volume 82, Number 26 (Thursday, February 9, 2017)]
[Notices]
[Pages 10101-10102]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-02647]

[[Page 10101]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79966; File No. SR-BatsBYX-2017-04]

Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use on Bats BYX Exchange, Inc.

February 3, 2017.
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 2, 2017, Bats BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') 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 the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BYX Rules
15.1(a) and (c).
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
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The text of the proposed rule change is available at the Exchange's
Web site at www.bats.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend its fee schedule applicable to the
Exchange's equities platform, effective immediately,\6\ to add Add
Volume Tier 3 under footnote 1. Currently, the Exchange charges a
standard rate of $0.0018 per share for orders that add liquidity that
are appended with fee codes B, V or Y. Under footnote 1, Tier 1 the
Exchange offers a reduced rate of $0.0014 for orders adding liquidity
where a Member has an ADAV \7\ of at least 0.30% of the TCV.\8\ Under
footnote 1, Tier 2 the Exchange offers a reduced rate of $0.0013 for
orders adding liquidity where a Member has an ADAV of at least 0.40% of
the TCV. The Exchange proposes to add Tier 3 offering a reduced rate
for orders adding liquidity of $0.0012 where a Member has an ADAV of at
least 0.55% of the TCV. In connection with this change, the Exchange
also proposes to re-number existing Tier 3 under footnote 1 as Tier 4.
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\6\ The Exchange initially submitted the proposed rule change on
February 1, 2017. (SR-BatsBYX-2017-03). On February 2, 2017, the
Exchange withdrew SR-BatsBYX-2017-03 and submitted SR-BatsBYX-2017-
04.
\7\ As defined in the Exchange's fee schedule.
\8\ As defined in the Exchange's fee schedule.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. Volume-based incentives such as those currently maintained
on the Exchange have been widely adopted by equities and options
exchanges and are equitable because they are open to all Members on an
equal basis and provide additional benefits or discounts that are
reasonably related to the value to an exchange's market quality
associated with higher levels of market activity, such as higher levels
of liquidity provision and/or growth patterns, and introduction of
higher volumes of orders into the price and volume discovery processes.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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In particular, the Exchange believes the addition of Tier 3 under
footnote 1 is a reasonable means to encourage Members to increase their
liquidity on the Exchange. The Exchange further believes that the
proposed tier represents an equitable allocation of reasonable dues,
fees, and other charges because the thresholds necessary to achieve the
tiers encourages Members to add additional liquidity to the Exchange.
Specifically, the Exchange notes that the criteria and reduced rate
under proposed Tier 3 are equitable and reasonable as compared to other
tiers offered by the Exchange, particularly Tiers 1 and 2, as described
above. Therefore, the Exchange believes the proposed Tier 3 is
consistent with Section 6(b)(4) \11\ of the Act as the more stringent
criteria correlates with the tier's reduced rate.
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\11\ 15 U.S.C. 78f(b)(4).
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(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. The Exchange does not believe
the proposed tier will impose an undue burden on competition because
the Exchange will uniformly offer the reduced fee to all qualifying
Members. In fact, the Exchange believes the proposed tier enhances
competition, as it is intended to increase the competitiveness of and
draw additional volume to the Exchange. The Exchange does not believe
that the proposed change represents a significant departure from the
Exchange's current pricing structure, but instead, is merely another
incentive offered by the Exchange to encourage Members to contribute to
the growth of the Exchange. Additionally, Members may opt to disfavor
the Exchange's pricing if they believe that alternatives offer them
better value or if they view the fees as excessive. Further, excessive
fees would serve to impair an exchange's ability to compete for order
flow and members rather than burdening competition.

(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

[[Page 10102]]

unsolicited written comments from Members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ 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.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BatsBYX-2017-04 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-BatsBYX-2017-04. 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 Number SR-BatsBYX-2017-04 and should
be submitted on or before March 2, 2017.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02647 Filed 2-8-17; 8:45 am]
BILLING CODE 8011-01-P

10102 Federal Register / Vol. 82, No. 26 / Thursday, February 9, 2017 / Notices

unsolicited written comments from business days between the hours of reflect the proposed Purge Port
Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of the functionality.
filing also will be available for The text of the proposed changes to
III. Date of Effectiveness of the Exchange Rule 22.11 is attached as
inspection and copying at the principal
Proposed Rule Change and Timing for Exhibit 5A. The proposed changes to the
office of the Exchange. All comments
Commission Action fee schedule are attached as Exhibit 5B.
received will be posted without change;
The foregoing rule change has become the Commission does not edit personal The text of the proposed rule change is
effective pursuant to Section 19(b)(3)(A) identifying information from available at the Exchange’s Web site at
of the Act 12 and paragraph (f) of Rule submissions. You should submit only www.bats.com, at the principal office of
19b–4 thereunder.13 At any time within information that you wish to make the Exchange, and at the Commission’s
60 days of the filing of the proposed rule available publicly. All submissions Public Reference Room.
change, the Commission summarily may should refer to File Number SR– II. Self-Regulatory Organization’s
temporarily suspend such rule change if BatsBYX–2017–04 and should be Statement of the Purpose of, and
it appears to the Commission that such submitted on or before March 2, 2017. Statutory Basis for, the Proposed Rule
action is necessary or appropriate in the For the Commission, by the Division of Change
public interest, for the protection of Trading and Markets, pursuant to delegated
investors, or otherwise in furtherance of authority.14
In its filing with the Commission, the
the purposes of the Act. Exchange included statements
Eduardo A. Aleman,
concerning the purpose of and basis for
IV. Solicitation of Comments Assistant Secretary.
the proposed rule change and discussed
[FR Doc. 2017–02647 Filed 2–8–17; 8:45 am] any comments it received on the
Interested persons are invited to
submit written data, views, and BILLING CODE 8011–01–P proposed rule change. The text of these
arguments concerning the foregoing, statements may be examined at the
including whether the proposed rule places specified in Item IV below. The
SECURITIES AND EXCHANGE Exchange has prepared summaries, set
change is consistent with the Act.
COMMISSION forth in Sections A, B, and C below, of
Comments may be submitted by any of
the following methods: [Release No. 34–79956; File No. SR– the most significant parts of such
BatsBZX–2017–05] statements.
Electronic Comments
(A) Self-Regulatory Organization’s
• Use the Commission’s Internet Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing Statement of the Purpose of, and
comment form (http://www.sec.gov/
and Immediate Effectiveness of a Statutory Basis for, the Proposed Rule
rules/sro.shtml); or
Change
• Send an email to rule-comments@ Proposed Rule Change To Adopt a
sec.gov. Please include File Number SR– New Type of Logical Port Known as a 1. Purpose
BatsBYX–2017–04 on the subject line. Purge Port
The Exchange also offers a bulk-
Paper Comments February 3, 2017. quoting interface which allows Users of
Pursuant to Section 19(b)(1) of the BZX Options to submit and update
• Send paper comments in triplicate
Securities Exchange Act of 1934 (the multiple bids and offers in one message
to Secretary, Securities and Exchange
‘‘Act’’),1 and Rule 19b–4 thereunder,2 through logical ports enabled for bulk-
Commission, 100 F Street NE.,
notice is hereby given that on January quoting.
Washington, DC 20549–1090.
23, 2017, Bats BZX Exchange, Inc. (the Purge Ports
All submissions should refer to File
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Number SR–BatsBYX–2017–04. This The Exchange now proposes to
Securities and Exchange Commission
file number should be included on the modify the BZX Options fee schedule to
(‘‘Commission’’) the proposed rule
subject line if email is used. To help the identify fees for Purge Ports, a new type
change as described in Items I and II
Commission process and review your of logical port which would enable
below, which Items have been prepared
comments more efficiently, please use Options Members 5 to cancel/purge all
by the Exchange. The Exchange has
only one method. The Commission will open orders, or a subset thereof, across
designated this proposal as a ‘‘non-
post all comments on the Commission’s multiple logical ports through a single
controversial’’ proposed rule change
Internet Web site (http://www.sec.gov/ cancel/purge message. The Exchange
pursuant to Section 19(b)(3)(A) of the
rules/sro.shtml). Copies of the also proposes to amend Exchange Rule
Act 3 and Rule 19b–4(f)(6)(iii)
submission, all subsequent 22.11, Mass Cancellation of Trading
thereunder,4 which renders it effective
amendments, all written statements Interest, to reflect the proposed Purge
upon filing with the Commission. The
with respect to the proposed rule Port functionality. The proposed ports
Commission is publishing this notice to
change that are filed with the are designed to assist Options Members,
solicit comments on the proposed rule
Commission, and all written including Market Makers, in the
change from interested persons.
communications relating to the management of, and risk control over,
proposed rule change between the I. Self-Regulatory Organization’s their quotes, particularly if the Options
Commission and any person, other than Statement of the Terms of Substance of Member is dealing with a large number
those that may be withheld from the the Proposed Rule Change of options. For example, if an Options
public in accordance with the The Exchange filed a proposal to Member detects market indications that
sradovich on DSK3GMQ082PROD with NOTICES

provisions of 5 U.S.C. 552, will be amend Exchange Rule 22.11, Mass may influence the direction or bias of
available for Web site viewing and Cancellation of Trading Interest, to
printing in the Commission’s Public 5 ‘‘Options Member’’ is defined as ‘‘a firm, or

Reference Room, 100 F Street NE., 14 17 organization that is registered with the Exchange
CFR 200.30–3(a)(12).
pursuant to Chapter XVII of these Rules for
Washington, DC 20549, on official 1 15 U.S.C. 78s(b)(1).
purposes of participating in options trading on
2 17 CFR 240.19b–4.
EDGX Options as an ‘Options Order Entry Firm’ or
12 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A).
‘Options Market Maker.’ ’’ See Exchange Rule
13 17 CFR 240.19b–4(f). 4 17 CFR 240.19b–4(f)(6)(iii). 16.1(a)(38).

VerDate Sep<11>2014 18:11 Feb 08, 2017 Jkt 241001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 E:\FR\FM\09FEN1.SGM 09FEN1

Document Created: 2017-02-09 01:02:46
Document Modified: 2017-02-09 01:02:46

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		82 FR 10101