82 FR 22682 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Qualified Contingent Cross Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 94 (May 17, 2017)
Federal Register Volume 82, Issue 94 (May 17, 2017)
| Page Range | 22682-22685 | |
| FR Document | 2017-09931 |
[Federal Register Volume 82, Number 94 (Wednesday, May 17, 2017)] [Notices] [Pages 22682-22685] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09931] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80661; File No. SR-BOX-2017-14] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Qualified Contingent Cross Orders May 11, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 9, 2017, BOX Options Exchange LLC (the ``Exchange'') 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 self-regulatory organization. The Commission is publishing this notice to solicit [[Page 22683]] comments on the proposed rule from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt Qualified Contingent Cross Orders. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's Internet Web site at http://boxexchange.com. 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects 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 is filing this proposal to adopt Qualified Contingent Cross Orders (``QCC Orders''), as described below. Background The purpose of this filing is to adopt rules related to QCC Orders. The proposed rule change is based on the rules of other options exchanges, including an International Securities Exchange (``ISE'') proposal that was previously approved by the Securities and Exchange Commission (``Commission'').\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 63955 (February 24, 2011), 76 FR 11533 (March 2, 2011) (SR-ISE-2010-73) (``ISE Approval''); 79942 (February 2, 2017), 82 FR 9804 (February 8, 2017) (Notice of Filing and Immediate Effectiveness of SR-EDGX-2017-11). --------------------------------------------------------------------------- The Exchange is currently a party to the Options Order Protection and Locked/Crossed Market Plan (``Linkage Plan''), and has implemented Exchange rules in conjunction with that plan, which are set forth in Rule 15000 of the Exchange's Rules (the ``Linkage Rules''). Similar to Regulation NMS under the Act, the Linkage Plan requires, among other things, that the Exchange establish, maintain and enforce written policies and procedures that are reasonably designed to prevent ``Trade-Throughs.'' \4\ A Trade-Through is a transaction in an options series at a price that is inferior to the best price available in the market.\5\ The Linkage Plan replaced the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (``Old Linkage Plan''). The Old Linkage Plan provided a limited Trade-Through exemption for ``Block Trades,'' defined to be trades of 500 or more contracts with a premium value of at least $150,000.\6\ However, as with Regulation NMS, the Linkage Plan does not provide a Block Trade exemption. Since its original adoption by the ISE in 2011, QCC has been offered by multiple options exchanges as a limited substitute for the Block Trade exemption.\7\ --------------------------------------------------------------------------- \4\ See Section 5(a) of the Linkage Plan \5\ See Section 2(21) of the Linkage Plan \6\ See Old Linkage Plan Sections 2(3) and 8(c)(i)(C). \7\ See ISE Rule 715(j), Supplementary Material .01 to ISE Rule 715 and ISE Rule 721(b); see also CBOE Rule 6.53(u); NASDAQ PHLX Rule 1080(o); NYSE Arca Rule 6.62(bb), Commentary .02 to NYSE Arca Rule 6.62 and NYSE Arca Rule 6.90. --------------------------------------------------------------------------- Proposal Regarding Qualified Contingent Cross Orders The purpose of the proposed change is to provide market participants with the ability to submit to the Exchange Qualified Contingent Cross Orders, an order type offered by multiple other options exchanges.\8\ The proposed operation of Qualified Contingent Cross Orders on the Exchange is substantially similar in all material respects to the operation of such orders on such other exchanges. --------------------------------------------------------------------------- \8\ See supra, note 7. --------------------------------------------------------------------------- The Exchange proposes to adopt Rule paragraph (c)(6) to Rule 7110 to govern the operation of Qualified Contingent Cross Orders. As proposed, a Qualified Contingent Cross Order would be an originating order to buy or sell at least 1,000 standard option contracts, or 10,000 mini-option contracts, that is identified as being part of a qualified contingent trade (as that term is proposed to be defined in IM-7110-2), coupled with a contra-side order or orders totaling an equal number of contracts. As proposed under IM-7110-2, a ``qualified contingent trade'' is a transaction consisting of two or more component orders, executed as agent or principal, where: (1) At least one component is an NMS stock, as defined in Rule 600 of Regulation NMS under the Act; (2) all components are effected with a product or price contingency that either has been agreed to by all the respective counterparties or arranged for by a broker-dealer as principal or agent; (3) the execution of one component is contingent upon the execution of all other components at or near the same time; (4) the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined by the time the contingent order is placed; (5) the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or cancelled; and (6) the transaction is fully hedged (without regard to any prior existing position) as a result of other components of the contingent trade. Additionally, as proposed, Qualified Contingent Cross Orders would be allowed to execute automatically on entry without exposure provided the execution: (i) Is not at the same price as a Public Customer \9\ Order on the BOX Book; \10\ and (ii) is at or between the NBBO.\11\ As such, the Exchange also proposes to specify that a Qualified Contingent Cross Order will be rejected if there is an ongoing auction (including PIP, COPIP, Facilitation, and Solicitation auctions) or an exposed order on the option series when the Qualified Contingent Cross Order is received by the Exchange. The proposed Rule would also specify that Qualified Contingent Cross Orders will be cancelled if they cannot be executed. Also, pursuant to the proposed rule, Qualified Contingent Cross Orders may only be entered in the standard increments applicable to the options class under Rule 7050. --------------------------------------------------------------------------- \9\ The term ``Public Customer'' means a person that is not a broker or dealer in securities. See Rule 100(a)(51). \10\ The term ``BOX Book'' means the electronic book of orders on each single option series maintained by the BOX Trading Host. See Rule 100(a)(10). \11\ The NBBO means the national best bid or offer. See Rule 100(a)(33). --------------------------------------------------------------------------- The Exchange will track and monitor QCC Orders to determine which is the originating side of the order and which is the contra-side(s) of the order to ensure that Participants are complying with the minimum 1,000 contract size limitation (or 10,000 mini-option contract minimum) on the originating side of the QCC Order. The Exchange will check to see if Participants are aggregating multiple orders to meet the 1,000 contract minimum on the originating side (or 10,000 mini-option contract minimum) of the trade in violation of the requirements of the rule. [[Page 22684]] The rule requires that the originating side of the trade consist of one party who is submitting a QCC Order for at least 1,000 contracts (or 10,000 mini-option contracts). The Exchange represents that it will enforce compliance with this portion of the rule by checking to see if a Participants breaks up the originating side of the order in a post trade allocation to different clearing firms, allocating less than 1,000 contracts (or 10,000 mini-option contracts) to a party or multiple parties. For example, a Participant enters a QCC Order into the system for 1,500 contracts and receives an execution. Subsequent to the execution, the Participant allocates the originating side of the order to two different clearing firms on a post trade allocation basis, thereby allocating 500 contracts to one clearing firm and 1,000 contracts to another clearing firm. This type of transaction would not meet the requirements of a QCC Order under the current and proposed rule. With regard to order entry, a Participant will have to mark the originating side as the first order in the system and the contra- side(s) as the second. The Exchange will monitor order entries to ensure that Participants are properly entering QCC Orders into the system. The Exchange anticipates implementing the proposed change during the second quarter of 2017. The Exchange will provide notice of the exact implementation date, via Circular, prior to implementing the proposed change. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\12\ in general, and Section 6(b)(5) of the Act,\13\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. Specifically, the proposed change is designed to offer market participants greater flexibility by allowing such market participant to submit QCC Orders to BOX in the same way they are permitted to send QCC Orders to other options exchanges, thereby promoting just and equitable principles of trade, fostering cooperation and coordination with persons engaged in facilitating transactions in securities, removing impediments to, and perfecting the mechanism of, a free and open market and a national market system. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rules are consistent with the protection of investors in that they are designed to prevent Trade-Throughs. In addition, the proposed rule change would promote a free and open market by permitting the Exchange to compete with other options exchanges for these types of orders. In this regard, competition would result in benefits to the investing public, whereas a lack of competition would serve to limit the choices that participants have for execution of their options business. As noted above, the proposed operation of Qualified Contingent Cross Orders on the Exchange is substantially similar in all material respects to the operation of such orders on such other exchanges.\14\ As such, permitting the Exchange to operate on an even playing field relative to other exchanges removes impediments to and perfects the mechanism for a free and open market and a national market system. --------------------------------------------------------------------------- \14\ See supra, note 7. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change to adopt QCC Orders will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposed functionality is open to all market participants. Further, the proposed rule will allow the Exchange to compete with other options exchanges that currently offer QCC Orders, thus alleviating the burden on competition that would arise if such exchanges were permitted to continue offering such functionality and the Exchange was not. For these reasons, the Exchange does not believe that the proposed rule changes will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, and believes the proposed change will enhance competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action (a) This proposed rule change is filed pursuant to paragraph (A) of section 19(b)(3) of the Exchange Act \15\ and Rule 19b-4(f)(6) thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- (b) This proposed rule change does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. The Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, prior to the date of filing the proposed rule change as required by Rule 19b-4(f)(6). The Exchange believes that the proposed rule change does not significantly affect the protection of investors or the public interest and does not impose any significant burden on competition. The Exchange's proposal to accept QCC Orders is not a novel concept but rather, is based on the acceptance of such orders on multiple other options exchanges. 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-BOX-2017-14 on the subject line. [[Page 22685]] 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-BOX-2017-14. 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, on official business days between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE., Washington, DC 20549. Copies of such 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-BOX- 2017-14 and should be submitted on or before June 7, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-09931 Filed 5-16-17; 8:45 am] BILLING CODE 8011-01-P
![22682 Federal Register / Vol. 82, No. 94 / Wednesday, May 17, 2017 / Notices
of such proceedings is appropriate at identified above, as well as any other amendments, all written statements
this time in view of the legal and policy concerns they may have with the with respect to the proposed rule
issues raised by the proposed rule proposal. In particular, the Commission change that are filed with the
change. Institution of proceedings does invites the written views of interested Commission, and all written
not indicate that the Commission has persons concerning whether the communications relating to the
reached any conclusions with respect to proposal is consistent with Section proposed rule change between the
any of the issues involved. Rather, as 6(b)(5) or any other provision of the Act, Commission and any person, other than
described below, the Commission seeks or the rules and regulations thereunder. those that may be withheld from the
and encourages interested persons to Although there do not appear to be any public in accordance with the
provide comments on the proposed rule issues relevant to approval or provisions of 5 U.S.C. 552, will be
change, as modified by Amendment No. disapproval that would be facilitated by available for Web site viewing and
1. an oral presentation of views, data, and printing in the Commission’s Public
Pursuant to Section 19(b)(2)(B) of the arguments, the Commission will Reference Room, 100 F Street NE.,
Act,16 the Commission is providing consider, pursuant to Rule 19b–4, any Washington, DC 20549, on official
notice of the grounds for disapproval request for an opportunity to make an business days between the hours of
under consideration. The Commission is oral presentation.19 10:00 a.m. and 3:00 p.m. Copies of the
instituting proceedings to allow for Interested persons are invited to filing also will be available for
additional analysis of the proposal’s submit written data, views, and inspection and copying at the principal
consistency with Section 6(b)(5) of the arguments regarding whether the office of the Exchange. All comments
Act, which requires, among other proposal should be approved or received will be posted without change;
things, that the rules of a national disapproved by June 7, 2017. Any the Commission does not edit personal
securities exchange be ‘‘designed to person who wishes to file a rebuttal to identifying information from
prevent fraudulent and manipulative any other person’s submission must file submissions. You should submit only
acts and practices, to promote just and that rebuttal by June 21, 2017. The information that you wish to make
equitable principles of trade,’’ and ‘‘to Commission asks that commenters available publicly. All submissions
protect investors and the public address the sufficiency of the should refer to File Number SR–
interest.’’ 17 As noted above, the Exchange’s statements in support of the BatsBZX–2017–07 and should be
Exchange is submitting this proposed proposal, which are set forth in submitted on or before June 7, 2017.
rule change because the Index for the Amendment No. 1,20 in addition to any Rebuttal comments should be submitted
Fund does not meet the requirements other comments they may wish to by June 21, 2017.
set forth in BZX Rule submit about the proposed rule change.
14.11(c)(4)(B)(i)(b). In the proposal, the For the Commission, by the Division of
Comments may be submitted by any
Trading and Markets, pursuant to delegated
Exchange described certain of the following methods: authority.21
characteristics of the Index as of
Electronic Comments Eduardo A. Aleman,
November 30, 2016,18 and stated its
belief that the Index is sufficiently • Use the Commission’s Internet Assistant Secretary.
broad-based to deter potential comment form (http://www.sec.gov/ [FR Doc. 2017–09932 Filed 5–16–17; 8:45 am]
manipulation and that the Index rules/sro.shtml); or BILLING CODE 8011–01–P
securities are sufficiently liquid to deter • Send an email to rule-comments@
potential manipulation. However, the sec.gov. Please include File Number SR–
Commission notes that the Exchange BatsBZX–2017–07 on the subject line. SECURITIES AND EXCHANGE
did not provide, for the continued COMMISSION
Paper Comments
listing of the Shares, parameters around
the extent to which the Index may • Send paper comments in triplicate [Release No. 34–80661; File No. SR–BOX–
to Secretary, Securities and Exchange 2017–14]
change from those characteristics. The
Commission seeks commenters’ views Commission, 100 F Street NE., Self-Regulatory Organizations; BOX
on whether the Exchange’s statements Washington, DC 20549–1090. Options Exchange LLC; Notice of
and representations support a All submissions should refer to File Filing and Immediate Effectiveness of
determination that the listing and Number SR-BatsBZX–2017–07. This file a Proposed Rule Change To Adopt
trading of the Shares would be number should be included on the Qualified Contingent Cross Orders
consistent with Section 6(b)(5) of the subject line if email is used. To help the
Commission process and review your May 11, 2017.
Act, which, among other things,
requires that the rules of an exchange be comments more efficiently, please use Pursuant to Section 19(b)(1) of the
designed to prevent fraudulent and only one method. The Commission will Securities Exchange Act of 1934
manipulative acts and practices, to post all comments on the Commission’s (‘‘Act’’),1 and Rule 19b–4 thereunder,2
promote just and equitable principles of Internet Web site (http://www.sec.gov/ notice is hereby given that on May 9,
trade, and to protect investors and the rules/sro.shtml). Copies of the 2017, BOX Options Exchange LLC (the
public interest. submission, all subsequent ‘‘Exchange’’) filed with the Securities
and Exchange Commission
IV. Procedure: Request for Written 19 Section 19(b)(2) of the Act, as amended by the (‘‘Commission’’) the proposed rule
Comments Securities Acts Amendments of 1975, Public Law change as described in Items I, II, and
94–29 (June 4, 1975), grants the Commission
The Commission requests that III below, which Items have been
nlaroche on DSK30NT082PROD with NOTICES
flexibility to determine what type of proceeding—
interested persons provide written either oral or notice and opportunity for written prepared by the self-regulatory
submissions of their views, data, and comments—is appropriate for consideration of a organization. The Commission is
particular proposal by a self-regulatory publishing this notice to solicit
arguments with respect to the issues organization. See Securities Acts Amendments of
1975, Senate Comm. on Banking, Housing & Urban
16 Id. 21 17 CFR 200.30–3(a)(57).
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
17 15 U.S.C. 78f(b)(5). (1975). 1 15 U.S.C. 78s(b)(1).
18 See supra Section II.C. 20 See supra note 4. 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 94 / Wednesday, May 17, 2017 / Notices 22685
Paper Comments ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Fee Code RT
• Send paper comments in triplicate notice is hereby given that on May 5,
2017, Bats EDGA Exchange, Inc. (the The Exchange proposes to decrease
to Secretary, Securities and Exchange the fee for orders yielding fee code RT,
Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission which is appended to orders routed
Washington, DC 20549–1090.
(‘‘Commission’’) the proposed rule using the ROUT 6 routing strategy, from
All submissions should refer to File $0.00260 to $0.00250 per share for
change as described in Items I, II and III
Number SR–BOX–2017–14. This file securities priced at or above $1.00 per
below, which Items have been prepared
number should be included on the share. The Exchange does not propose
by the Exchange. The Exchange has
subject line if email is used. To help the to amend the rate for orders yielding fee
designated the proposed rule change as
Commission process and review your code RT in securities priced below
one establishing or changing a member
comments more efficiently, please use $1.00 per share.
due, fee, or other charge imposed by the
only one method. The Commission will
Exchange under Section 19(b)(3)(A)(ii)
post all comments on the Commission’s RMPT/RMPL Tier 2
of the Act 3 and Rule 19b–4(f)(2)
Internet Web site (http://www.sec.gov/
thereunder,4 which renders the The Exchange offers one tier under
rules/sro.shtml). Copies of the
proposed rule change effective upon footnote 4, the RMPT/RMPL Tier under
submission, all subsequent
filing with the Commission. The which a Member receives a discounted
amendments, all written statements
Commission is publishing this notice to fee of $0.0008 per share for orders
with respect to the proposed rule
solicit comments on the proposed rule yielding fee codes PT 7 or PX 8 where
change that are filed with the
change from interested persons. that Member adds or removes an ADV 9
Commission, and all written
communications relating to the I. Self-Regulatory Organization’s greater than or equal to 2,000,000 shares
proposed rule change between the Statement of the Terms of Substance of using the RMPT or RMPL 10 routing
Commission and any person, other than the Proposed Rule Change strategy. The Exchange now proposes to
those that may be withheld from the The Exchange filed a proposal to add a new tier under footnote 4 to be
public in accordance with the amend the fee schedule applicable to known as Tier 2 under which a Member
provisions of 5 U.S.C. 552, will be Members 5 and non-Members of the would receive a discounted fee of
available for Web site viewing and Exchange pursuant to EDGA Rules $0.0006 per share for orders yielding fee
printing in the Commission’s Public 15.1(a) and (c). codes PT or PX where that Member adds
Reference Room, on official business The text of the proposed rule change or removes an ADV greater than or equal
days between the hours of 10:00 a.m. is available at the Exchange’s Web site to 4,000,000 shares using the RMPT or
and 3:00 p.m., located at 100 F Street at www.bats.com, at the principal office RMPL routing strategy.11
NE., Washington, DC 20549. Copies of of the Exchange, and at the
such filing also will be available for Commission’s Public Reference Room. 6 ROUT is a routing strategy that checks the
inspection and copying at the principal System for available shares and then are sent to
office of the Exchange. All comments II. Self-Regulatory Organization’s destinations on the System routing table. See
Statement of the Purpose of, and Exchange Rule 11.11(g)(3)(B). The term ‘‘System
received will be posted without change; routing table’’ refers to the proprietary process for
Statutory Basis for, the Proposed Rule
the Commission does not edit personal determining the specific trading venues to which
Change the System routes orders and the order in which it
identifying information from
In its filing with the Commission, the routes them. See Exchange Rule 11.11(g).
submissions. You should submit only 7 Fee code PT is appended to orders that remove
information that you wish to make Exchange included statements liquidity from the Exchange using RMPT or RMPL
available publicly. All submissions concerning the purpose of and basis for routing strategy and is assessed a fee of $0.0010 per
should refer to File Number SR–BOX– the proposed rule change and discussed share on securities priced over $1.00, and there is
any comments it received on the no fee on securities priced below $1.00. See the
2017–14 and should be submitted on or Exchange’s fee schedule available at http://
before June 7, 2017. proposed rule change. The text of these www.bats.com/us/equities/membership/fee_
statements may be examined at the schedule/edga/.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated places specified in Item IV below. The 8 Fee code PX is append to orders that are routed
authority.17 Exchange has prepared summaries, set using the RMPL routing strategy to a destination not
forth in Sections A, B, and C below, of covered by Fee Code PL, or are routed using the
Eduardo A. Aleman, RMPT routing strategy, and is assessed a fee of
the most significant parts of such
Assistant Secretary. $0.0012 per share on securities priced over $1.00,
statements. and a fee of 30% of the total dollar value on
[FR Doc. 2017–09931 Filed 5–16–17; 8:45 am]
securities priced below $1.00. Id.
BILLING CODE 8011–01–P A. Self-Regulatory Organization’s 9 ADV is generally defined as average daily
Statement of the Purpose of, and the volume calculated as the number of shares added
Statutory Basis for, the Proposed Rule to, removed from, or routed by, the Exchange, or
SECURITIES AND EXCHANGE Change any combination or subset thereof, per day. Id.
10 The RMPT routing strategy operates similarly
COMMISSION
1. Purpose to RMPL in that under both Mid-Point Peg Orders
[Release No. 34–80653; File No. SR– check the System for available shares and any
The Exchange proposes to amend its remaining shares are then sent to destinations on
BatsEDGA–2017–12]
fee schedule to: (i) Lower the rate for fee the System routing table that support midpoint
Self-Regulatory Organizations; Bats code RT; and (ii) add the RMPT/RMPL eligible orders. If any shares remain unexecuted
Tier 2. after routing, they are posted on the EDGA Book as
EDGA Exchange, Inc.; Notice of Filing a Mid-Point Peg Order, unless otherwise instructed
and Immediate Effectiveness of a
nlaroche on DSK30NT082PROD with NOTICES
by the User. While RMPL and RMPT operate in an
1 15 U.S.C. 78s(b)(1).
Proposed Rule Change Related to Fees identical manner, the trading venues that each
2 17 CFR 240.19b–4. routing strategy routes to and the order in which it
3 15 U.S.C. 78s(b)(3)(A)(ii).
May 11, 2017. routes them differ. See Exchange Rule 11.11(g)(13).
4 17 CFR 240.19b–4(f)(2). 11 As a result of the fee schedule layout change
Pursuant to Section 19(b)(1) of the 5 The term ‘‘Member’’ is defined as ‘‘any in adding a second tier, the description of which
Securities Exchange Act of 1934 (the registered broker or dealer that has been admitted fee codes are appended with footnote 3 will be
to membership in the Exchange.’’ See Exchange moved above the table similar to the layout of the
17 17 CFR 200.30–3(a)(12). Rule 1.5(n). table in footnote 4.
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Document Created: 2017-05-17 01:42:03
Document Modified: 2017-05-17 01:42:03
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 22682 |
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