82 FR 13897 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees for Use on Bats EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 49 (March 15, 2017)

Page Range		13897-13899
FR Document		2017-05087
Federal Register, Volume 82 Issue 49 (Wednesday, March 15, 2017)
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13897-13899]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-05087]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80186; File No. SR-Bats EDGX-2017-12]


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

March 9, 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 28, 2017, Bats EDGX Exchange, Inc. (the ``Exchange'' 
or ``EDGX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has

[[Page 13898]]

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 EDGX 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its fee schedule to remove the 
Single MPID Cross-Asset Tier under footnote 1, Add Volume Tiers. The 
Exchange determines the liquidity adding rebate that it will provide to 
Members using the Exchange's tiered pricing structure. Currently, the 
Exchange offers enhanced rebates under ten Add Volume Tiers set forth 
in footnote 1 of the fee schedule for orders that yield fee codes B,\6\ 
V,\7\ Y,\8\ 3,\9\ and 4.\10\ Under such pricing structure, a Member 
will receive a rebate between $0.0025 and $0.0033 per share executed, 
depending on the tier for which such Member qualifies. The Exchange now 
proposes to amend the Add Volume Tiers under footnote 1 to remove the 
Single MPID Cross-Asset Tier. Under the Single MPID Cross-Asset Tier, a 
Member receives an enhanced rebate of $0.0030 per share where their 
MPID has: (i) On the Exchange's equity options platform (``EDGX 
Options'') an ADAV \11\ in Market Maker \12\ orders greater than or 
equal to 0.12% of average OCV; \13\ and (ii) an ADAV greater than or 
equal to 0.12% of average TCV \14\. The Exchange is proposing to 
eliminate the tier because it has not achieved the desired effect, 
despite being designed to incentivize Members to add liquidity on both 
the Exchange's equites platform and EDGX Options.
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    \6\ Fee code B is appended to orders which add liquidity to EDGX 
(Tape B) and receives a rebate of 0.00200 per share. See the 
Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/edgx/.
    \7\ Fee code V is appended to orders which add to EDGX (Tape A) 
and receives a rebate of 0.00200 per share. Id.
    \8\ Fee code Y is appended to orders which add liquidity to EDGX 
(Tape C) and receives a rebate of 0.00200 per share. Id.
    \9\ Fee code 3 is appended to orders which add liquidity to 
EDGX, pre and post market (Tapes A or C) and receives a rebate of 
0.00200 per share. Id.
    \10\ Fee code 4 is appended to orders which add liquidity to 
EDGX, pre and post market (Tape B) and receives a rebate of 0.00200 
per share. Id.
    \11\ ``ADAV'' means average daily added volume calculated as the 
number of shares added per day and ADV is calculated on a monthly 
basis. See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/edgx/.
    \12\ ``Market Maker'' means any transaction identified by a 
Member for clearing in the Market Maker range at the OCC, where such 
Member is registered with the Exchange as a Market Maker as defined 
in Rule 16.1(a)(37). Id.
    \13\ ``OCC Customer Volume'' or ``OCV'' means, for purposes of 
equities pricing, the total equity and ETF options volume that 
clears in the Customer range at the Options Clearing Corporation 
(``OCC'') for the month for which the fees apply, excluding volume 
on any day that the Exchange experiences an Exchange System 
Disruption and on any day with a scheduled early market close, using 
the definition of Customer as provided under the Exchange's fee 
schedule for EDGX Options. Id.
    \14\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges and trade reporting facilities to a 
consolidated transaction reporting plan for the month for which the 
fees apply. Id.
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Implementation Date
    The Exchange proposes to implement this amendment to its fee 
schedule on March 1, 2017.
2. Statutory Basis
    The Exchange believes that the proposed removal of the Single MPID 
Cross-Asset Tier is consistent with the objectives of Section 6 of the 
Act,\15\ in general, and furthers the objectives of Section 
6(b)(4),\16\ 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. As described above, 
the enhanced rebate offered under this tier has not affected Members' 
behavior in the manner originally conceived by the Exchange--to 
incentivize Members to add liquidity on both the Exchange's equites 
platform and EDGX Options. While the Exchange acknowledges the benefit 
of Members entering orders that add liquidity in two asset classes, the 
Exchange has generally determined that it is providing an additional 
rebate for liquidity that would be added on the Exchange regardless of 
whether the tier existed. As such, the Exchange also believes that the 
proposed elimination of the Single MPID Cross-Asset Tier would be non-
discriminatory in that it currently applies equally to all Members and, 
upon elimination, would no longer be available to any Members. Further, 
it's [sic] elimination will allow the Exchange to explore other pricing 
mechanisms in which it may enhance market quality for all Members.
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    \15\ 15 U.S.C. 78f.
    \16\ 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 its proposal to remove the Single 
MPID Cross-Asset Tier under footnote 1 would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. But rather, this proposal would enhance the 
Exchange's ability to compete with other market centers. As described 
above, the Exchange believes that it is offering enhanced rebates for 
orders that would be submitted to the Exchange without the enhanced 
rebate, which prevents the Exchange from being able to offer other 
rebates or reduced fees that might be able to enhance market quality to 
the benefit of all Members. As such, removing the Single MPID Cross-
Asset Tier will allow the Exchange other opportunities to enhance 
market quality on the Exchange and ultimately, better compete with 
other market centers.

[[Page 13899]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 
thereunder.\18\ 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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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 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-BatsEDGX-2017-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-BatsEDGX-2017-12. 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 No. SR-BatsEDGX-2017-12, and should be 
submitted on or before April 5, 2017.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05087 Filed 3-14-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices 13897

not unreasonably discriminatory transaction volume to the Exchange. only one method. The Commission will
because they apply equally to all Given the robust competition for post all comments on the Commission’s
Members submitting orders for the volume among options markets, many of Internet Web site (http://www.sec.gov/
account(s) of Professionals. All similarly which offer the same products, rules/sro.shtml). Copies of the
situated Professional orders are subject implementing a volume increase based submission, all subsequent
to the same rebate schedule, and access rebate program to attract order flow like amendments, all written statements
to the Exchange is offered on terms that the one being proposed in this filing is with respect to the proposed rule
are not unfairly discriminatory. In consistent with the above-mentioned change that are filed with the
addition, the proposed changes to the goals of the Act. Commission, and all written
Program are equitable and not unfairly communications relating to the
discriminatory because, while only C. Self-Regulatory Organization’s proposed rule change between the
Professional order flow qualifies for the Statement on Comments on the Commission and any person, other than
Program, an increase in Professional Proposed Rule Change Received From those that may be withheld from the
order flow will bring greater volume and Members, Participants, or Others public in accordance with the
liquidity, which benefit all market Written comments were neither provisions of 5 U.S.C. 552, will be
participants by providing more trading solicited nor received. available for Web site viewing and
opportunities and tighter spreads. printing in the Commission’s Public
III. Date of Effectiveness of the
Similarly, offering increasing credits to Reference Room, 100 F Street NE.,
Proposed Rule Change and Timing for
Members for submitting and executing Washington, DC 20549, on official
Commission Action
higher percentages of total national business days between the hours of
customer volume (increased credit rates The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
at increased volume tiers) is equitable effective pursuant to Section filing also will be available for
and not unfairly discriminatory because 19(b)(3)(A)(ii) of the Act,14 and Rule inspection and copying at the principal
such increased rates and tiers encourage 19b–4(f)(2) 15 thereunder. At any time office of the Exchange. All comments
Members to direct increased amounts of within 60 days of the filing of the received will be posted without change;
Professional contracts to the Exchange. proposed rule change, the Commission the Commission does not edit personal
summarily may temporarily suspend identifying information from
B. Self-Regulatory Organization’s
such rule change if it appears to the submissions. You should submit only
Statement on Burden on Competition
Commission that such action is information that you wish to make
The Exchange does not believe that necessary or appropriate in the public available publicly. All submissions
the proposed rule change will result in interest, for the protection of investors, should refer to File Number SR–MIAX–
any burden on competition that is not or otherwise in furtherance of the 2017–11, and should be submitted on or
necessary or appropriate in furtherance purposes of the Act. If the Commission before April 5, 2017.
of the purposes of the Act. The takes such action, the Commission shall For the Commission, by the Division of
Exchange believes that the proposed institute proceedings to determine Trading and Markets, pursuant to delegated
rule change would increase both whether the proposed rule should be authority.16
intermarket and intramarket approved or disapproved. Eduardo A. Aleman,
competition by incenting Members to Assistant Secretary.
direct orders for the account(s) of IV. Solicitation of Comments
[FR Doc. 2017–05091 Filed 3–14–17; 8:45 am]
Professionals to the Exchange, which Interested persons are invited to
BILLING CODE 8011–01–P
should enhance the quality of the submit written data, views, and
Exchange’s markets and increase the arguments concerning the foregoing,
volume of contracts traded here. To the including whether the proposed rule SECURITIES AND EXCHANGE
extent that this purpose is achieved, all change is consistent with the Act. COMMISSION
the Exchange’s market participants Comments may be submitted by any of
should benefit from the improved the following methods: [Release No. 34–80186; File No. SR–Bats
market liquidity. Enhanced market EDGX–2017–12]
quality and increased transaction Electronic Comments
volume that results from the anticipated • Use the Commission’s Internet Self-Regulatory Organizations; Bats
increase in order flow directed to the comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing
Exchange will benefit all market and Immediate Effectiveness of a
rules/sro.shtml); or
participants and improve competition • Send an email to rule-comments@ Proposed Rule Change to Fees for Use
on the Exchange. The Exchange notes sec.gov. Please include File Number SR– on Bats EDGX Exchange, Inc.
that it operates in a highly competitive MIAX–2017–11 on the subject line. March 9, 2017.
market in which market participants can Pursuant to Section 19(b)(1) of the
readily favor competing venues if they Paper Comments
Securities Exchange Act of 1934 (the
deem fee levels at a particular venue to • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
be excessive. In such an environment, to Secretary, Securities and Exchange notice is hereby given that on February
the Exchange must continually adjust its Commission, 100 F Street NE., 28, 2017, Bats EDGX Exchange, Inc. (the
fees to remain competitive with other Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
asabaliauskas on DSK3SPTVN1PROD with NOTICES2

exchanges and to attract order flow to All submissions should refer to File Securities and Exchange Commission
the Exchange. The Exchange believes Number SR–MIAX–2017–11. This file (‘‘Commission’’) the proposed rule
that the proposed rule change reflects number should be included on the change as described in Items I, II and III
this competitive environment because it subject line if email is used. To help the below, which Items have been prepared
reduces the Exchange’s fees through Commission process and review your by the Exchange. The Exchange has
rebates in a manner that encourages comments more efficiently, please use
market participants to direct their 16 17 CFR 200.30–3(a)(12).
customer order flow, to provide 14 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
liquidity, and to attract additional 15 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.

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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices 13899

C. Self-Regulatory Organization’s Commission and any person, other than I. Self-Regulatory Organization’s
Statement on Comments on the those that may be withheld from the Statement of the Terms of Substance of
Proposed Rule Change Received From public in accordance with the the Proposed Rule Change
Members, Participants, or Others provisions of 5 U.S.C. 552, will be The Exchange proposes a rule change
The Exchange has not solicited, and available for Web site viewing and to amend the Schedule of Fees to
does not intend to solicit, comments on printing in the Commission’s Public modify the Qualified Contingent Cross
this proposed rule change. The Reference Room, 100 F Street NE., and Solicitation rebate tiers.
Exchange has not received any Washington, DC 20549, on official The text of the proposed rule change
unsolicited written comments from business days between the hours of is available on the Exchange’s Web site
Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of the at www.ise.com, at the principal office
III. Date of Effectiveness of the filing also will be available for of the Exchange, and at the
Proposed Rule Change and Timing for inspection and copying at the principal Commission’s Public Reference Room.
Commission Action office of the Exchange. All comments II. Self-Regulatory Organization’s
received will be posted without change; Statement of the Purpose of, and
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A) the Commission does not edit personal Statutory Basis for, the Proposed Rule
of the Act 17 and paragraph (f) of Rule identifying information from Change
19b–4 thereunder.18 At any time within submissions. You should submit only
information that you wish to make In its filing with the Commission, the
60 days of the filing of the proposed rule Exchange included statements
change, the Commission summarily may available publicly. All submissions
concerning the purpose of and basis for
temporarily suspend such rule change if should refer to File No. SR–BatsEDGX–
the proposed rule change and discussed
it appears to the Commission that such 2017–12, and should be submitted on or
any comments it received on the
action is necessary or appropriate in the before April 5, 2017.
proposed rule change. The text of these
public interest, for the protection of For the Commission, by the Division of statements may be examined at the
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated places specified in Item IV below. The
the purposes of the Act. authority.19 Exchange has prepared summaries, set
IV. Solicitation of Comments Eduardo A. Aleman, forth in sections A, B, and C below, of
Interested persons are invited to Assistant Secretary. the most significant aspects of such
submit written data, views, and [FR Doc. 2017–05087 Filed 3–14–17; 8:45 am] statements.
arguments concerning the foregoing, BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
including whether the proposed rule Statement of the Purpose of, and
change is consistent with the Act. Statutory Basis for, the Proposed Rule
Comments may be submitted by any of SECURITIES AND EXCHANGE Change
the following methods: COMMISSION
1. Purpose
Electronic Comments
[Release No. 34–80185; File No. SR–ISE– Currently, members using QCC and/or
• Use the Commission’s Internet other solicited crossing orders,
2017–17]
comment form (http://www.sec.gov/ including solicited orders executed in
rules/sro.shtml); or Self-Regulatory Organizations; the Solicitation, Facilitation or Price
• Send an email to rule-comments@ Improvement Mechanisms, receive
International Securities Exchange,
sec.gov. Please include File No. SR– rebates for each originating contract side
LLC; Notice of Filing and Immediate
BatsEDGX–2017–12 on the subject line. in all symbols traded on the Exchange.
Effectiveness of Proposed Rule
Paper Comments Change To Modify the Qualified Once a member reaches a certain
volume threshold in QCC orders and/or
• Send paper comments in triplicate Contingent Cross and Solicitation
Rebate Tiers solicited crossing orders during a
to Secretary, Securities and Exchange
month, the Exchange provides rebates to
Commission, 100 F Street NE.,
March 9, 2017. that Member for all of its QCC and
Washington, DC 20549–1090.
solicited crossing order traded contracts
All submissions should refer to File No. Pursuant to Section 19(b)(1) of the
for that month. The applicable rebates
SR–BatsEDGX–2017–12. This file Securities Exchange Act of 1934
are applied on QCC and solicited
number should be included on the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 crossing order traded contracts once the
subject line if email is used. To help the notice is hereby given that on February volume threshold is met. Members
Commission process and review your 27, 2017, the International Securities receive the Non-‘‘Customer to
comments more efficiently, please use Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) Customer’’ rebate for all QCC and/or
only one method. The Commission will filed with the Securities and Exchange other solicited crossing orders except for
post all comments on the Commission’s Commission (‘‘SEC’’ or ‘‘Commission’’) QCC and solicited orders between two
Internet Web site (http://www.sec.gov/ the proposed rule change as described Priority Customers. QCC and solicited
rules/sro.shtml). Copies of the in Items I and II, below, which Items orders between two Priority Customers
submission, all subsequent have been prepared by the Exchange. receive the ‘‘Customer to Customer’’
asabaliauskas on DSK3SPTVN1PROD with NOTICES2

amendments, all written statements The Commission is publishing this rebate or ‘‘Customer to Customer’’
with respect to the proposed rule notice to solicit comments on the Rebate PLUS, respectively.3 Non-
change that are filed with the proposed rule change from interested ‘‘Customer to Customer’’ and ‘‘Customer
Commission, and all written persons. to Customer’’ volume is aggregated in
communications relating to the determining the applicable volume tier.
proposed rule change between the
19 17 CFR 200.30–3(a)(12). 3 The PLUS rebate is for Members with total
17 15 1 15 U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A). monthly unsolicited originating Facilitation
18 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. contract side volume of 175,000 or more.

VerDate Sep<11>2014 18:19 Mar 14, 2017 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 E:\FR\FM\15MRN1.SGM 15MRN1
Document Created: 2017-03-15 06:04:30
Document Modified: 2017-03-15 06:04:30
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 13897