82_FR_11526 82 FR 11491 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Option Regulatory Fees as They Relate to the Equity Options Platform

82 FR 11491 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Option Regulatory Fees as They Relate to the Equity Options Platform

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 35 (February 23, 2017)

Page Range11491-11493
FR Document2017-03459

Federal Register, Volume 82 Issue 35 (Thursday, February 23, 2017)
[Federal Register Volume 82, Number 35 (Thursday, February 23, 2017)]
[Notices]
[Pages 11491-11493]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03459]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80050; File No. SR-BatsBZX-2017-13]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Option Regulatory Fees as They Relate to the Equity Options 
Platform

February 16, 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 8, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission (the 
``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 BZX Rules 
15.1(a) and (c) to amend its Options Regulatory Fee (``ORF'').
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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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify the fee schedule applicable to the 
Exchange's options platform (``BZX Options'') to amend the rate of its 
ORF.\6\ Currently, the Exchange charges an ORF in the amount of $0.0010 
per contract side. The Exchange proposes to decrease the amount of ORF 
to $0.0009 per contract side.\7\ The proposed change to ORF should 
continue to balance the Exchange's regulatory expenses against the 
anticipated revenue.
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    \6\ The Exchange also proposes to insert a colon after the title 
``Options Regulatory Fee''.
    \7\ The Exchange notes that it previously proposed to decrease 
its ORF of $0.0008 per contract in August 2016 and to assess ORF to 
each Member and non-Member for all options transactions cleared by 
OCC in the ``customer'' range, regardless of the exchange on which 
the transaction occurred. See Securities Exchange Act Release No. 
78453 (August 1, 2016), 81 FR 51954 (August 5, 2016) (SR-BatsBZX-
2016-42). The Exchange then filed to delay the implementation of SR-
BatsBZX-2016-42 until February 1, 2017. See Securities Exchange Act 
Release No. 78746 (September 1, 2016), 81 FR 62225 (September 8, 
2016) (SR-BatsBZX-2016-52). The Commission later issued an order 
suspending and [sic] SR-BatsBZX-2016-42 and instituted proceedings 
to determine whether to approve or disapprove the proposed rule 
change asking whether the [sic] ``a sufficient regulatory nexus 
exists between the Exchange and a non-Member to justify imposition 
of the ORF on such non-Member.'' See Securities Exchange Act Release 
No. 78849 (September 15, 2016), 81 FR 64960 (September 21, 2016). On 
January 10, 2017, the Exchange withdrew SR-Bats-BZX-2016-42. The 
Exchange also proposes in this filing to remove text from its fee 
schedule adopted by SR-BatsBZX-2016-52 which delayed the 
implementation of SR-BatsBZX-2016-42 until February 1, 2017.
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    The per-contract ORF is assessed by the Exchange on each Member for 
all options transactions executed and cleared, or simply cleared, by 
the Member, that are cleared by OCC in the ``customer'' range, 
regardless of the exchange on which the transaction occurs. The ORF is 
collected indirectly from Members through their clearing firms by OCC 
on behalf of the Exchange. The ORF is also charged for transactions 
that are not executed by a Member but are ultimately cleared by a 
Member. Thus, in the case where a non-Member executes a transaction and 
a Member clears the transaction, the ORF is assessed to the Member who 
clears the transaction. Similarly, in the case where a Member executes 
a transaction and another Member clears the transaction, the ORF is 
assessed to the Member who clears the transaction.
    The ORF is designed to recover a material portion of the costs to 
the Exchange of the supervision and regulation of Members' customer 
options business, including performing routine surveillances and 
investigations, as well as policy, rulemaking, interpretive and 
enforcement activities. The Exchange believes that revenue generated 
from the ORF, when combined with all of the Exchange's other regulatory 
fees and fines, will continue to cover a material portion, but not all, 
of the Exchange's regulatory costs.\8\
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    \8\ The Exchange notes that its regulatory responsibilities with 
respect to compliance with options sales practice rules has been 
allocated to the Financial Industry Regulatory Authority, Inc. 
(``FINRA'') under a 17d-2 Agreement. The ORF is not designed to 
cover the cost of options sales practice regulation.
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    The Exchange will continue to monitor the amount of revenue 
collected from the ORF to ensure that it, in combination with its other 
regulatory fees and fines, does not exceed the Exchange's total 
regulatory costs. The Exchange expects to monitor its regulatory costs 
and revenues at a minimum on a semi-annual basis. If the Exchange 
determines regulatory revenues exceed or are insufficient to cover a 
material portion of its regulatory costs, the Exchange will adjust the 
ORF by submitting a fee change filing to the Commission. The Exchange 
will continue to notify Members of adjustments to the ORF at least 30

[[Page 11492]]

calendar days prior to the effective date of the change.\9\
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    \9\ The Exchange announced the proposed changes to ORF on 
December 30, 2016. See Bats Options Exchange Regulatory Fee Schedule 
Update Effective February 1, 2017 available at http://cdn.batstrading.com/resources/fee_schedule/2017/Bats-Options-Exchange-Regulatory-Fee-Schedule-Update-Effective-February-1-2017.pdf.
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Implementation Date
    The Exchange proposes to implement changes to the ORF 
immediately.\10\
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    \10\ The Exchange originally filed the proposed rule change on 
January 30, 2017. (SR-BatsBZX-2017-02). On February 8, 2017, the 
Exchange withdrew SR-BatsBZX-2017-02 and submitted this filing.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6 of the Act.\11\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\12\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using its facilities. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily direct order flow to competing venues or 
providers of routing services if they deem fee levels to be excessive.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the decreased ORF is equitable and not 
unfairly discriminatory because it would be objectively allocated to 
Members in that it would be charged to all Members on all their 
transactions that clear as customer transactions at the OCC. The 
Exchange believes that decreasing the ORF is reasonable because the 
Exchange's collection of ORF needs to be balanced against the amount of 
regulatory revenue collected by the Exchange. The Exchange believes 
that the proposed adjustment noted herein will serve to continue to 
balance the Exchange's regulatory revenue against its anticipated 
regulatory costs. In addition, the Exchange believes the amount of the 
ORF is reasonable as it is significantly lower than ORFs charged by 
other exchanges. By way of comparison, MIAX charges an ORF of $0.0045 
per contract side,\13\ and both NYSE Arca and NYSE Amex charge an ORF 
of $0.0055 per contract side.\14\ The CBOE charges an ORF of $0.0081 
per contract.\15\
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    \13\ See MIAX fee schedule available at http://www.miaxoptions.com/sites/default/files/MIAX_Options_Fee_Schedule_06012016.pdf (dated January 1, 2017).
    \14\ See NYSE Arca Options fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (dated January 1, 2017); and NYSE 
Amex fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf (dated 
January 1, 2017).
    \15\ See CBOE fee schedule available at http://www.cboe.com/framed/pdfframed.aspx?content=/publish/feeschedule/CBOEFeeSchedule.pdf§ion=SEC_RESOURCES&title=CBOE%20Fee%20Schedule
 (dated January 3, 2017).
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    The Exchange has designed the ORF to generate revenues that, when 
combined with all of the Exchange's other regulatory fees, will be less 
than or equal to the Exchange's regulatory costs, which is consistent 
with the Commission's view that regulatory fees be used for regulatory 
purposes and not to support the Exchange's business side. In this 
regard, the Exchange believes that the decreased level of the fee is 
reasonable and appropriate.

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 ORF is not intended to have 
any impact on competition. Rather, it is designed to enable the 
Exchange to recover a material portion of the Exchange's cost related 
to its regulatory activities. The Exchange is obligated to ensure that 
the amount of regulatory revenue collected from the ORF, in combination 
with its other regulatory fees and fines, does not exceed regulatory 
costs.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues if they 
deem fee levels at a particular venue to be excessive, or rebate 
opportunities available at other venues to be more favorable. In such 
an environment, the Exchange must continually adjust its fees to remain 
competitive with other exchanges. Because competitors are free to 
modify their own fees in response, and because market participants may 
readily adjust their order routing practices, the Exchange believes 
that the degree to which fee changes in this market may impose any 
burden on competition is extremely limited. The decreased ORF continues 
to also be comparable to ORFs charged by other 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \16\ and paragraph (f) of Rule 19b-4 
thereunder.\17\ 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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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 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 [email protected]. Please include 
File No. SR-BatsBZX-2017-13 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-BatsBZX-2017-13. 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

[[Page 11493]]

Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549, on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
the filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File No. SR-BatsBZX-2017-13, and should be submitted on or before March 
16, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03459 Filed 2-22-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                             Federal Register / Vol. 82, No. 35 / Thursday, February 23, 2017 / Notices                                                 11491

                                               of individual portfolio managers, so that                Members 5 and non-Members of the                       ORF should continue to balance the
                                               requiring shareholder approval of Sub-                   Exchange pursuant to BZX Rules 15.1(a)                 Exchange’s regulatory expenses against
                                               Advisory Agreements would impose                         and (c) to amend its Options Regulatory                the anticipated revenue.
                                               unnecessary delays and expenses on the                   Fee (‘‘ORF’’).                                            The per-contract ORF is assessed by
                                               Subadvised Series. Applicants believe                       The text of the proposed rule change                the Exchange on each Member for all
                                               that the requested relief from the                       is available at the Exchange’s Web site
                                                                                                                                                               options transactions executed and
                                               Disclosure Requirements meets this                       at www.bats.com, at the principal office
                                                                                                                                                               cleared, or simply cleared, by the
                                               standard because it will improve the                     of the Exchange, and at the
                                               Advisor’s ability to negotiate fees paid                 Commission’s Public Reference Room.                    Member, that are cleared by OCC in the
                                               to the Sub-Advisors that are more                                                                               ‘‘customer’’ range, regardless of the
                                                                                                        II. Self-Regulatory Organization’s                     exchange on which the transaction
                                               advantageous for the Funds.
                                                                                                        Statement of the Purpose of, and                       occurs. The ORF is collected indirectly
                                                 For the Commission, by the Division of                 Statutory Basis for, the Proposed Rule                 from Members through their clearing
                                               Investment Management, under delegated                   Change
                                               authority.
                                                                                                                                                               firms by OCC on behalf of the Exchange.
                                                                                                          In its filing with the Commission, the               The ORF is also charged for transactions
                                               Eduardo A. Aleman,
                                                                                                        Exchange included statements                           that are not executed by a Member but
                                               Assistant Secretary.
                                                                                                        concerning the purpose of and basis for                are ultimately cleared by a Member.
                                               [FR Doc. 2017–03476 Filed 2–22–17; 8:45 am]
                                                                                                        the proposed rule change and discussed                 Thus, in the case where a non-Member
                                               BILLING CODE 8011–01–P
                                                                                                        any comments it received on the                        executes a transaction and a Member
                                                                                                        proposed rule change. The text of these                clears the transaction, the ORF is
                                               SECURITIES AND EXCHANGE                                  statements may be examined at the                      assessed to the Member who clears the
                                               COMMISSION                                               places specified in Item IV below. The                 transaction. Similarly, in the case where
                                                                                                        Exchange has prepared summaries, set                   a Member executes a transaction and
                                                                                                        forth in Sections A, B, and C below, of                another Member clears the transaction,
                                               [Release No. 34–80050; File No. SR–                      the most significant parts of such
                                               BatsBZX–2017–13]
                                                                                                                                                               the ORF is assessed to the Member who
                                                                                                        statements.                                            clears the transaction.
                                               Self-Regulatory Organizations; Bats                      A. Self-Regulatory Organization’s                         The ORF is designed to recover a
                                               BZX Exchange, Inc.; Notice of Filing                     Statement of the Purpose of, and the                   material portion of the costs to the
                                               and Immediate Effectiveness of a                         Statutory Basis for, the Proposed Rule                 Exchange of the supervision and
                                               Proposed Rule Change To Amend Its                        Change                                                 regulation of Members’ customer
                                               Option Regulatory Fees as They Relate                                                                           options business, including performing
                                               to the Equity Options Platform                           1. Purpose
                                                                                                                                                               routine surveillances and investigations,
                                                                                                          The Exchange proposes to modify the                  as well as policy, rulemaking,
                                               February 16, 2017.
                                                                                                        fee schedule applicable to the                         interpretive and enforcement activities.
                                                  Pursuant to Section 19(b)(1) of the                   Exchange’s options platform (‘‘BZX                     The Exchange believes that revenue
                                               Securities Exchange Act of 1934 (the                     Options’’) to amend the rate of its ORF.6              generated from the ORF, when
                                               ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   Currently, the Exchange charges an ORF                 combined with all of the Exchange’s
                                               notice is hereby given that on February                  in the amount of $0.0010 per contract                  other regulatory fees and fines, will
                                               8, 2017, Bats BZX Exchange, Inc. (the                    side. The Exchange proposes to decrease                continue to cover a material portion, but
                                               ‘‘Exchange’’ or ‘‘BZX’’) filed with the                  the amount of ORF to $0.0009 per
                                                                                                                                                               not all, of the Exchange’s regulatory
                                               Securities and Exchange Commission                       contract side.7 The proposed change to
                                               (the ‘‘Commission’’) the proposed rule                                                                          costs.8
                                               change as described in Items I, II, and                     5 The term ‘‘Member’’ is defined as ‘‘any              The Exchange will continue to
                                               III below, which Items have been                         registered broker or dealer that has been admitted     monitor the amount of revenue
                                                                                                        to membership in the Exchange.’’ See Exchange
                                               prepared by the Exchange. The                            Rule 1.5(n).
                                                                                                                                                               collected from the ORF to ensure that it,
                                               Exchange has designated the proposed                        6 The Exchange also proposes to insert a colon      in combination with its other regulatory
                                               rule change as one establishing or                       after the title ‘‘Options Regulatory Fee’’.            fees and fines, does not exceed the
                                               changing a member due, fee, or other                        7 The Exchange notes that it previously proposed
                                                                                                                                                               Exchange’s total regulatory costs. The
                                               charge imposed by the Exchange under                     to decrease its ORF of $0.0008 per contract in         Exchange expects to monitor its
                                                                                                        August 2016 and to assess ORF to each Member and
                                               Section 19(b)(3)(A)(ii) of the Act 3 and                 non-Member for all options transactions cleared by     regulatory costs and revenues at a
                                               Rule 19b–4(f)(2) thereunder,4 which                      OCC in the ‘‘customer’’ range, regardless of the       minimum on a semi-annual basis. If the
                                               renders the proposed rule change                         exchange on which the transaction occurred. See        Exchange determines regulatory
                                               effective upon filing with the                           Securities Exchange Act Release No. 78453 (August
                                                                                                        1, 2016), 81 FR 51954 (August 5, 2016) (SR–
                                                                                                                                                               revenues exceed or are insufficient to
                                               Commission. The Commission is                            BatsBZX–2016–42). The Exchange then filed to           cover a material portion of its regulatory
                                               publishing this notice to solicit                        delay the implementation of SR–BatsBZX–2016–42         costs, the Exchange will adjust the ORF
                                               comments on the proposed rule change                     until February 1, 2017. See Securities Exchange Act    by submitting a fee change filing to the
                                               from interested persons.                                 Release No. 78746 (September 1, 2016), 81 FR
                                                                                                        62225 (September 8, 2016) (SR–BatsBZX–2016–52).        Commission. The Exchange will
                                               I. Self-Regulatory Organization’s                        The Commission later issued an order suspending        continue to notify Members of
                                               Statement of the Terms of Substance of                   and [sic] SR–BatsBZX–2016–42 and instituted            adjustments to the ORF at least 30
                                                                                                        proceedings to determine whether to approve or
                                               the Proposed Rule Change                                 disapprove the proposed rule change asking
rmajette on DSK2TPTVN1PROD with NOTICES




                                                                                                        whether the [sic] ‘‘a sufficient regulatory nexus      2016–52 which delayed the implementation of SR–
                                                 The Exchange filed a proposal to                       exists between the Exchange and a non-Member to        BatsBZX–2016–42 until February 1, 2017.
                                               amend the fee schedule applicable to                     justify imposition of the ORF on such non-                8 The Exchange notes that its regulatory

                                                                                                        Member.’’ See Securities Exchange Act Release No.      responsibilities with respect to compliance with
                                                 1 15
                                                                                                        78849 (September 15, 2016), 81 FR 64960                options sales practice rules has been allocated to
                                                      U.S.C. 78s(b)(1).                                 (September 21, 2016). On January 10, 2017, the         the Financial Industry Regulatory Authority, Inc.
                                                 2 17 CFR 240.19b–4.                                    Exchange withdrew SR–Bats–BZX–2016–42. The             (‘‘FINRA’’) under a 17d–2 Agreement. The ORF is
                                                 3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                        Exchange also proposes in this filing to remove text   not designed to cover the cost of options sales
                                                 4 17 CFR 240.19b–4(f)(2).                              from its fee schedule adopted by SR–BatsBZX–           practice regulation.



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                                               11492                       Federal Register / Vol. 82, No. 35 / Thursday, February 23, 2017 / Notices

                                               calendar days prior to the effective date               ORF of $0.0055 per contract side.14 The               C. Self-Regulatory Organization’s
                                               of the change.9                                         CBOE charges an ORF of $0.0081 per                    Statement on Comments on the
                                                                                                       contract.15                                           Proposed Rule Change Received From
                                               Implementation Date                                                                                           Members, Participants, or Others
                                                                                                         The Exchange has designed the ORF
                                                 The Exchange proposes to implement                    to generate revenues that, when                         The Exchange has not solicited, and
                                               changes to the ORF immediately.10                       combined with all of the Exchange’s                   does not intend to solicit, comments on
                                                                                                       other regulatory fees, will be less than              this proposed rule change. The
                                               2. Statutory Basis                                                                                            Exchange has not received any written
                                                                                                       or equal to the Exchange’s regulatory
                                                  The Exchange believes that the                       costs, which is consistent with the                   comments from members or other
                                               proposed rule change is consistent with                 Commission’s view that regulatory fees                interested parties.
                                               the requirements of the Act and the                     be used for regulatory purposes and not               III. Date of Effectiveness of the
                                               rules and regulations thereunder that                   to support the Exchange’s business side.              Proposed Rule Change and Timing for
                                               are applicable to a national securities                 In this regard, the Exchange believes                 Commission Action
                                               exchange, and, in particular, with the                  that the decreased level of the fee is
                                                                                                                                                                The foregoing rule change has become
                                               requirements of Section 6 of the Act.11                 reasonable and appropriate.                           effective pursuant to Section 19(b)(3)(A)
                                               Specifically, the Exchange believes that                                                                      of the Act 16 and paragraph (f) of Rule
                                               the proposed rule change is consistent                  B. Self-Regulatory Organization’s
                                                                                                       Statement on Burden on Competition                    19b–4 thereunder.17 At any time within
                                               with Section 6(b)(4) of the Act,12 in that                                                                    60 days of the filing of the proposed rule
                                               it provides for the equitable allocation                  The Exchange does not believe that                  change, the Commission summarily may
                                               of reasonable dues, fees and other                      the proposed rule change will impose                  temporarily suspend such rule change if
                                               charges among members and other                         any burden on competition not                         it appears to the Commission that such
                                               persons using its facilities. The                       necessary or appropriate in furtherance               action is necessary or appropriate in the
                                               Exchange notes that it operates in a                    of the purposes of the Act. The ORF is                public interest, for the protection of
                                               highly competitive market in which                      not intended to have any impact on                    investors, or otherwise in furtherance of
                                               market participants can readily direct                  competition. Rather, it is designed to                the purposes of the Act.
                                               order flow to competing venues or                       enable the Exchange to recover a
                                               providers of routing services if they                                                                         IV. Solicitation of Comments
                                                                                                       material portion of the Exchange’s cost
                                               deem fee levels to be excessive.                        related to its regulatory activities. The               Interested persons are invited to
                                                  The Exchange believes the decreased                  Exchange is obligated to ensure that the              submit written data, views, and
                                               ORF is equitable and not unfairly                       amount of regulatory revenue collected                arguments concerning the foregoing,
                                               discriminatory because it would be                      from the ORF, in combination with its                 including whether the proposed rule
                                               objectively allocated to Members in that                other regulatory fees and fines, does not             change is consistent with the Act.
                                               it would be charged to all Members on                   exceed regulatory costs.                              Comments may be submitted by any of
                                               all their transactions that clear as                                                                          the following methods:
                                                                                                         The Exchange notes that it operates in
                                               customer transactions at the OCC. The                                                                         Electronic Comments
                                                                                                       a highly competitive market in which
                                               Exchange believes that decreasing the
                                               ORF is reasonable because the
                                                                                                       market participants can readily favor                   • Use the Commission’s Internet
                                                                                                       competing venues if they deem fee                     comment form (http://www.sec.gov/
                                               Exchange’s collection of ORF needs to
                                                                                                       levels at a particular venue to be                    rules/sro.shtml); or
                                               be balanced against the amount of
                                                                                                       excessive, or rebate opportunities                      • Send an email to rule-comments@
                                               regulatory revenue collected by the
                                                                                                       available at other venues to be more                  sec.gov. Please include File No. SR–
                                               Exchange. The Exchange believes that
                                                                                                       favorable. In such an environment, the                BatsBZX–2017–13 on the subject line.
                                               the proposed adjustment noted herein
                                               will serve to continue to balance the                   Exchange must continually adjust its                  Paper Comments
                                               Exchange’s regulatory revenue against                   fees to remain competitive with other
                                                                                                       exchanges. Because competitors are free                  • Send paper comments in triplicate
                                               its anticipated regulatory costs. In                                                                          to Secretary, Securities and Exchange
                                               addition, the Exchange believes the                     to modify their own fees in response,
                                                                                                       and because market participants may                   Commission, 100 F Street NE.,
                                               amount of the ORF is reasonable as it is                                                                      Washington, DC 20549–1090.
                                               significantly lower than ORFs charged                   readily adjust their order routing
                                                                                                       practices, the Exchange believes that the             All submissions should refer to File No.
                                               by other exchanges. By way of
                                                                                                       degree to which fee changes in this                   SR–BatsBZX–2017–13. This file number
                                               comparison, MIAX charges an ORF of
                                                                                                       market may impose any burden on                       should be included on the subject line
                                               $0.0045 per contract side,13 and both
                                                                                                       competition is extremely limited. The                 if email is used. To help the
                                               NYSE Arca and NYSE Amex charge an                                                                             Commission process and review your
                                                                                                       decreased ORF continues to also be
                                                                                                       comparable to ORFs charged by other                   comments more efficiently, please use
                                                 9 The Exchange announced the proposed changes

                                               to ORF on December 30, 2016. See Bats Options           options exchanges.                                    only one method. The Commission will
                                               Exchange Regulatory Fee Schedule Update Effective                                                             post all comments on the Commission’s
                                               February 1, 2017 available at http://                     14 See NYSE Arca Options fee schedule available     Internet Web site (http://www.sec.gov/
                                               cdn.batstrading.com/resources/fee_schedule/2017/        at https://www.nyse.com/publicdocs/nyse/markets/      rules/sro.shtml). Copies of the
                                               Bats-Options-Exchange-Regulatory-Fee-Schedule-
                                               Update-Effective-February-1-2017.pdf.
                                                                                                       arca-options/NYSE_Arca_Options_Fee_                   submission, all subsequent
                                                                                                       Schedule.pdf (dated January 1, 2017); and NYSE        amendments, all written statements
                                                 10 The Exchange originally filed the proposed rule
                                                                                                       Amex fee schedule available at https://
                                               change on January 30, 2017. (SR–BatsBZX–2017–                                                                 with respect to the proposed rule
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                                                                                                       www.nyse.com/publicdocs/nyse/markets/amex-
                                               02). On February 8, 2017, the Exchange withdrew         options/NYSE_Amex_Options_Fee_Schedule.pdf            change that are filed with the
                                               SR–BatsBZX–2017–02 and submitted this filing.           (dated January 1, 2017).                              Commission, and all written
                                                 11 15 U.S.C. 78f.                                       15 See CBOE fee schedule available at http://
                                                 12 15 U.S.C. 78f(b)(4).
                                                                                                                                                             communications relating to the
                                                                                                       www.cboe.com/framed/pdfframed.aspx?content=/
                                                 13 See MIAX fee schedule available at http://         publish/feeschedule/
                                                                                                                                                             proposed rule change between the
                                               www.miaxoptions.com/sites/default/files/MIAX_           CBOEFeeSchedule.pdf&section=SEC_
                                                                                                                                                               16 15   U.S.C. 78s(b)(3)(A).
                                               Options_Fee_Schedule_06012016.pdf (dated                RESOURCES&title=CBOE%20Fee%20Schedule
                                               January 1, 2017).                                       (dated January 3, 2017).                                17 17   CFR 240.19b–4(f).



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                                                                             Federal Register / Vol. 82, No. 35 / Thursday, February 23, 2017 / Notices                                                          11493

                                               Commission and any person, other than                     an Associate requiring SBA prior                           Lassen, Marin, Mendocino, Merced,
                                               those that may be withheld from the                       written exemption.                                         Mono, Monterey, Napa, Nevada,
                                               public in accordance with the                                Notice is hereby given that any                         Placer, Plumas, Sacramento, San
                                               provisions of 5 U.S.C. 552, will be                       interested person may submit written                       Benito, San Luis Obispo, Santa
                                               available for Web site viewing and                        comments on the transaction, within                        Clara, Santa Cruz, Shasta, Sierra,
                                               printing in the Commission’s Public                       fifteen days of the date of this                           Siskiyou, Solano, Sonoma, Sutter,
                                               Reference Room, 100 F Street NE.,                         publication, to the Associate                              Trinity, Tuolumne, Yolo, Yuba
                                               Washington, DC 20549, on official                         Administrator for Office of Investment                   The Interest Rates are:
                                               business days between the hours of                        and Innovation, U.S. Small Business
                                               10:00 a.m. and 3:00 p.m. Copies of the                    Administration, 409 Third Street SW.,                                                                   Percent
                                               filing also will be available for                         Washington, DC 20416.
                                               inspection and copying at the principal                                                                         For Physical Damage:
                                                                                                           Dated: February 15, 2017.                             Non-Profit Organizations With
                                               office of the Exchange. All comments                      Michele Schimpp,                                          Credit Available Elsewhere ...                  2.500
                                               received will be posted without change;
                                                                                                         Acting Associate Administrator for Office of            Non-Profit Organizations With-
                                               the Commission does not edit personal                     Investment and Innovation.                                out Credit Available Else-
                                               identifying information from                                                                                        where .....................................     2.500
                                                                                                         [FR Doc. 2017–03473 Filed 2–22–17; 8:45 am]
                                               submissions. You should submit only                                                                             For Economic Injury:
                                                                                                         BILLING CODE 8025–01–P
                                               information that you wish to make                                                                                 Non-Profit Organizations With-
                                               available publicly. All submissions                                                                                 out Credit Available Else-
                                               should refer to File No. SR–BatsBZX–                                                                                where .....................................     2.500
                                                                                                         SMALL BUSINESS ADMINISTRATION
                                               2017–13, and should be submitted on or
                                               before March 16, 2017.                                    [Disaster Declaration #15049 and #15050]                The number assigned to this disaster
                                                                                                                                                               for physical damage is 15049B and for
                                                 For the Commission, by the Division of                  California Disaster #CA–00259                         economic injury is 15050B.
                                               Trading and Markets, pursuant to delegated
                                               authority.18                                              AGENCY: U.S. Small Business                           (Catalog of Federal Domestic Assistance
                                               Eduardo A. Aleman,                                        Administration.                                       Number 59008)
                                               Assistant Secretary.                                      ACTION: Notice.                                       James E. Rivera,
                                               [FR Doc. 2017–03459 Filed 2–22–17; 8:45 am]                                                                     Associate Administrator for Disaster
                                               BILLING CODE 8011–01–P                                    SUMMARY:   This is a Notice of the                    Assistance.
                                                                                                         Presidential declaration of a major                   [FR Doc. 2017–03468 Filed 2–22–17; 8:45 am]
                                                                                                         disaster for Public Assistance Only for               BILLING CODE 8025–01–P
                                                                                                         the State of California (FEMA–4301–
                                               SMALL BUSINESS ADMINISTRATION                             DR), dated 02/14/2017.
                                                                                                            Incident: Severe Winter Storms,                    SMALL BUSINESS ADMINISTRATION
                                               [License No. 05/05–0320]
                                                                                                         Flooding, and Mudslides.
                                                                                                            Incident Period: 01/03/2017 through                [Disaster Declaration #15051 and #15052]
                                               LFE Growth Fund III, LP; Notice
                                               Seeking Exemption Under Section 312                       01/12/2017.
                                                                                                                                                               Disaster #CA–00260
                                               of the Small Business Investment Act,                     DATES: Effective Date: 02/14/2017.
                                               Conflicts of Interest                                        Physical Loan Application Deadline                 AGENCY: U.S. Small Business
                                                                                                         Date: 04/17/2017.                                     Administration.
                                                  Notice is hereby given that LFE                           Economic Injury (EIDL) Loan                        ACTION: Notice.
                                               Growth Fund III, LP, 319 Barry Avenue                     Application Deadline Date: 11/14/2017.
                                               South, Suite 215, Wayzata, MN 55391,                                                                            SUMMARY:   This is a Notice of the
                                                                                                         ADDRESSES: Submit completed loan
                                               a Federal Licensee under the Small                                                                              Presidential declaration of a major
                                                                                                         applications to: U.S. Small Business                  disaster for Public Assistance Only for
                                               Business Investment Act of 1958, as
                                                                                                         Administration, Processing and                        the Hoopa Valley Tribe (FEMA–4302–
                                               amended (the ‘‘Act’’), in connection
                                                                                                         Disbursement Center, 14925 Kingsport                  DR), dated 02/14/2017.
                                               with the financing of a small concern,
                                                                                                         Road, Fort Worth, TX 76155.                             Incident: Severe Winter Storm.
                                               has sought an exemption under Section
                                               312 of the Act and Section 107.730,                       FOR FURTHER INFORMATION CONTACT: A.                     Incident Period: 01/03/2017 through
                                               Financings which Constitute Conflicts                     Escobar, Office of Disaster Assistance,               01/05/2017.
                                               of Interest of the Small Business                         U.S. Small Business Administration,                     Effective Date: 02/14/2017.
                                               Administration (‘‘SBA’’) Rules and                        409 3rd Street SW., Suite 6050,                         Physical Loan Application Deadline
                                               Regulations (13 CFR 107.730). LFE                         Washington, DC 20416.                                 Date: 04/17/2017.
                                               Growth Fund III, LP proposes to provide                   SUPPLEMENTARY INFORMATION: Notice is                    Economic Injury (EIDL) Loan
                                               debt financing to Wellbeats, Inc., 11600                  hereby given that as a result of the                  Application Deadline Date: 11/14/2017.
                                               96th Ave. North, Maple Grove, MN                          President’s major disaster declaration on             ADDRESSES: Submit completed loan
                                               55369. The proceeds will be used to                       02/14/2017, Private Non-Profit                        applications to: U.S. Small Business
                                               fund growth of the company.                               organizations that provide essential                  Administration, Processing and
                                                  The financing is brought within the                    services of governmental nature may file              Disbursement Center, 14925 Kingsport
                                               purview of § 107.730(a)(1) of the                         disaster loan applications at the address             Road, Fort Worth, TX 76155.
                                               Regulations because LFE Growth Fund                       listed above or other locally announced               FOR FURTHER INFORMATION CONTACT: A.
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                                               III, LP and LFE Growth Fund II, LP are                    locations.                                            Escobar, Office of Disaster Assistance,
                                               Associates and because LFE Growth                            The following areas have been                      U.S. Small Business Administration,
                                               Fund II, LP has a greater than ten                        determined to be adversely affected by                409 3rd Street SW., Suite 6050,
                                               percent interest in Wellbeats. Therefore                  the disaster:                                         Washington, DC 20416.
                                               this transaction is considered financing                  Primary Counties: Alameda, Amador,                    SUPPLEMENTARY INFORMATION: Notice is
                                                                                                              Butte, Calaveras, Contra Costa, El               hereby given that as a result of the
                                                 18 17   CFR 200.30–3(a)(12).                                 Dorado, Humboldt, Inyo, Lake,                    President’s major disaster declaration on


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Document Created: 2017-02-23 02:10:42
Document Modified: 2017-02-23 02:10:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 11491 

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