82_FR_25493 82 FR 25389 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Market Data Section of Its Fee Schedule To Adopt Fees for a New Market Data Product Called the ETF Implied Liquidity Feed

82 FR 25389 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Market Data Section of Its Fee Schedule To Adopt Fees for a New Market Data Product Called the ETF Implied Liquidity Feed

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 104 (June 1, 2017)

Page Range25389-25393
FR Document2017-11254

Federal Register, Volume 82 Issue 104 (Thursday, June 1, 2017)
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Notices]
[Pages 25389-25393]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11254]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80772; File No. SR-BatsBZX-2017-36]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Market Data Section of Its Fee Schedule To Adopt Fees for a New 
Market Data Product Called the ETF Implied Liquidity Feed

May 25, 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 May 17, 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 Market Data section of 
its fee schedule to adopt fees for a new market data product called the 
ETF Implied Liquidity Feed.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.bats.com, at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the Market Data section of its fee 
schedule to adopt fees for a new market data product called the ETF 
Implied Liquidity Feed. The ETF Implied Liquidity feed is an optional 
data feed that would provide the Exchange's proprietary calculation of 
the implied liquidity and the aggregate best bid and offer (``BBO'') of 
all displayed orders on the Exchange and its affiliated exchanges \5\ 
for all standard, non-leveraged U.S. equity Exchange Traded Funds 
(``ETFs'') \6\ traded on the System.\7\ An ETF's implied liquidity 
disseminated via the proposed feed would consist of the ETF's implied 
BBO (including the implied size) calculated via a proprietary 
methodology based on the national best bid and offer (``NBBO''), the 
number of shares of securities underlying one creation unit of the ETF, 
and the estimated cash included in one creation unit of the ETF. The 
Exchange intends to begin to offer the ETF Implied Liquidity Feed on 
June 1, 2017.\8\
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    \5\ The Exchange's affiliates are Bats EDGA Exchange, Inc., 
(``EDGA''), Bats EDGX Exchange, Inc. (``EDGX''), and Bats BYX 
Exchange, Inc. (``BYX'') (``collectively, the ``Bats Exchanges'').
    \6\ The securities underlying each of the U.S. equity ETFs 
included in the proposed feed must be considered NMS Securities as 
defined under Rule 600(b)(46) of Regulation NMS. 17 CFR 
242.600(b)(46).
    \7\ See Exchange Rule 11.22(n). See also Securities Exchange Act 
Release No. 80580 (May 3, 2017) (SR-BatsBZX-2017-25) (Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to 
Amend Rule 11.22, Data Products, to Adopt a New Market Data Product 
Known as the ETF Implied Liquidity Feed) (filed April 28, 2017).
    \8\ See Bats to Introduce ETF Implied Liquidity Feed Effective 
June 1, 2017, http://cdn.batstrading.com/resources/market_data/2017/Bats-to-Introduce-ETF-Implied-Liquidity-Feed-Effective-June-1-2017.pdf.

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[[Page 25390]]

    The Exchange now proposes to amend its fee schedule to adopt fees 
for the ETF Implied Liquidity Feed. The proposed fees include the 
following, each of which are described in detail below: (i) 
Distribution Fees for both Internal and External Distributors; \9\ (ii) 
Usage Fees for both Professional \10\ and Non-Professional \11\ Users; 
and (iii) a Data Consolidation fee.
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    \9\ A ``Distributor'' is defined as ``any entity that receives 
the Exchange Market Data product directly from the Exchange or 
indirectly through another entity and then distributes it internally 
or externally to a third party.'' See the Exchange's fee schedule 
available at http://www.bats.com/us/equities/membership/fee_schedule/bzx/. An ``Internal Distributor'' is defined as ``a 
Distributor that receives the Exchange Market Data product and then 
distributes that data to one or more Users within the Distributor's 
own entity.'' Id. An ``External Distributor'' is defined as ``a 
Distributor that receives the Exchange Market Data product and then 
distributes that data to a third party or one or more Users outside 
the Distributor's own entity.'' Id.''
    \10\ A ``Professional User'' is defined as ``any User other than 
a Non-Professional User.'' See the Exchange's fee schedule available 
at http://www.bats.com/us/equities/membership/fee_schedule/bzx/.
    \11\ A ``Non-Professional User'' is defined as ``a natural 
person who is not: (i) Registered or qualified in any capacity with 
the Commission, the Commodity Futures Trading Commission, any state 
securities agency, any securities exchange or association, or any 
commodities or futures contract market or association; (ii) engaged 
as an ``investment adviser'' as that term is defined in Section 
202(a)(11) of the Investment Advisers Act of 1940 (whether or not 
registered or qualified under that Act); or (iii) employed by a bank 
or other organization exempt from registration under federal or 
state securities laws to perform functions that would require 
registration or qualification if such functions were performed for 
an organization not so exempt.'' Id.
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    Distribution Fees. As proposed, each Internal and External 
Distributor that receives the ETF Implied Liquidity Feed shall pay a 
fee of $5,000 per month.\12\ The Exchange proposes to waive certain 
fees for Distributors that also receive the Bats One Feed.\13\ The ETF 
Implied Liquidity Feed and the Bats One Feed are similar in that both 
include the aggregate BBO for all displayed orders on the Bats 
Exchanges. The key difference here is that the ETF Implied Liquidity 
Feed also contains the Exchange's proprietary calculation of the ETF's 
implied liquidity. As such, the Exchange believes it is reasonable to 
waive certain charges for those Distributors that receive both 
products. First, the Exchange proposes to waive the Distributor fee for 
External Distributors of the ETF Implied Liquidity Feed where that 
External Distributor also receives and is charged the External 
Distributor fee for the Bats One Feed. The Exchange notes that the 
proposed External Distribution fee for the ETF Implied Liquidity Feed 
of $5,000 per month equals that charged for Bats One Summary. The 
External Distribution fee for Bats One Premium is higher at $12,500 per 
month. Second, the Exchange proposes to waive the related Logical Port 
fee of $550 per port per month for both Internal and External 
Distributors of the ETF Implied Liquidity Feed where they also receive 
and are charged a Logical Port fee for the Bats One Feed. Distributors 
would continue to pay the Logical Port fee to receive the Bats One 
Feed. Lastly, as described below, the Exchange proposes to waive the 
Data Consolidation fee for External Distributors of the ETF Implied 
Liquidity Feed where that External Distributor also receives and is 
charged the Data Consolidation fee for the Bats One Feed. The Exchange 
believes waiving the above fees would avoid overlapping charges for 
Distributors that also receive the Bats One Feed, as both feeds include 
the aggregated BBO of the Bats Exchanges as a core part of their 
offering. These Distributors would continue to pay these fees for 
receipt of the Bats One Feed and are liable for the User fees to be 
charged for the ETF Implied Liquidity Feed described below.
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    \12\ A Distributor that acts as both an Internal Distributor and 
an External Distributor of the ETF Implied Liquidity Feed will be 
subject to both the Internal Distribution Fee and the External 
Distribution Fee.
    \13\ The Bats One Feed is a data feed that disseminates, on a 
real-time basis, the aggregate BBO for securities traded on each of 
the Bats Exchanges. The Bats One Feed also contains the individual 
last sale information for the Bats Exchanges (collectively with the 
aggregate BBO, the ``Bats One Summary Feed''). See Exchange Rule 
11.22(j). See also Securities Exchange Act Release No. 73918 
(December 23, 2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-
EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) 
(Notice of Amendment No. 2 and Order Granting Accelerated Approval 
to Proposed Rule Changes, as Modified by Amendments Nos. 1 and 2, to 
Establish a New Market Data Product called the Bats One Feed) 
(``Bats One Approval Order'').
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    User Fees. The Exchange proposes to charge External Distributors 
that redistribute the ETF Implied Liquidity Feed different fees for 
their Professional Users and Non-Professional Users. The Exchange will 
assess a monthly fee for Professional Users of $25.00 per User. Non-
Professional Users will be assessed a monthly fee of $1.00 per User. 
The Exchange does not propose to charge per User fees to Internal 
Distributors that receive the ETF Implied Liquidity Feed.
    External Distributors that receive the ETF Implied Liquidity Feed 
will be required to count every Professional User and Non-Professional 
User to which they provide the ETF Implied Liquidity Feed, the 
requirements for which are identical to that currently in place for 
other market data products offered by the Exchange.\14\ Thus, the 
External Distributor's count will include every person and device that 
accesses the data regardless of the purpose for which the individual or 
device uses the data. External Distributors must report all 
Professional and Non-Professional Users in accordance with the 
following:
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    \14\ See Securities Exchange Act Release Nos. 74285 (February 
18, 2015); 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11) 
(proposing fees for the Bats One Feed); 75406 (July 9, 2015), 80 FR 
41522 (July 15, 2015) (SR-BATS-2015-48) (proposing user fees for the 
BZX Top and Last Sale data feeds); 75785 (August 28, 2015), 80 FR 
53360 (September 3, 2015) (SR-BATS-2015-64) (proposing fees for BZX 
Book Viewer); and 79636 (December 21, 2016), 81 FR 95693 (December 
28, 2016) (SR-BatsBZX-2016-87) (proposing fees for BZX Summary 
Depth).
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     In connection with an External Distributor's distribution 
of the ETF Implied Liquidity Feed, the External Distributor must count 
as one User each unique User that the External Distributor has entitled 
to have access to the ETF Implied Liquidity Feed. However, where a 
device is dedicated specifically to a single individual, the External 
Distributor must count only the individual and need not count the 
device.
     The External Distributor must identify and report each 
unique User. If a User uses the same unique method to gain access to 
the ETF Implied Liquidity Feed, the External Distributor must count 
that as one User. However, if a unique User uses multiple methods to 
gain access to the ETF Implied Liquidity Feed (e.g., a single User has 
multiple passwords and user identifications), the External Distributor 
must report each of those methods as an individual User.
     External Distributors must report each unique individual 
person who receives access through multiple devices as one User so long 
as each device is dedicated specifically to that individual.
     If an External Distributor entitles one or more 
individuals to use the same device, the Distributor must include only 
the individuals, and not the device, in the count.
    Data Consolidation Fee. The Exchange also proposes to charge 
External Distributors of the ETF Implied Liquidity Feed a separate Data 
Consolidation Fee of $500 per month, which reflects the value of the 
aggregation and consolidation function the Exchange performs in 
creating the portion of the feed that includes the aggregated BBO of 
all displayed orders on the Exchange and its affiliated exchanges. The 
Exchange would provide the aggregate BBO disseminated via the Bats One 
Feed as part of the ETF

[[Page 25391]]

Implied Liquidity feed.\15\ The Exchange creates the Bats One Feed, 
including the aggregated BBO of the Bats Exchanges, by aggregating data 
derived from the EDGX Depth, EDGA Depth, BYX Depth, and BZX Depth.\16\ 
The Exchange proposes to waive the Data Consolidation fee for External 
Distributors of the ETF Implied Liquidity Feed where that External 
Distributor also receives and is charged the Data Consolidation fee for 
the Bats One Feed. As stated above, the Exchange believes waiving this 
fee would avoid overlapping charges for Distributors that also receive 
the Bats One Feed, as both feeds include the aggregated BBO of the Bats 
Exchanges. In such case, the External Distributor is being charged a 
$1,000 Data Consolidation fee for the Bats One Feed, which covers the 
consolidation function already being performed by the Exchange in 
constructing the aggregated BBO for the Bats Exchanges. The Exchange, 
therefore, believes it is reasonable to not charge External 
Distributors an additional Data Consolidation fee for the same 
aggregation function performed for the Bats One Feed.
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    \15\ See Bats One Approval Order, supra note 13.
    \16\ See EDGA Rule 13.8, EDGX Rule 13.8, BZX Rule 11.22(a) and 
(c), and BYX Rule 11.22 (a) and (c) for a description of the depth 
of book feeds offered by each of the Bats Exchanges. Rather than 
these depth-of-book feeds, the Exchange notes that a vendor seeking 
to build a competing product to the proposed ETF Implied Liquidity 
feed could simply utilize the top-of-book data feeds from each of 
the Bats Exchange's to create an aggregated BBO.
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Implementation Date
    The Exchange intends to implement the proposed fees on June 1, 
2017.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\17\ in general, and 
furthers the objectives of Section 6(b)(4),\18\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its members and other recipients of 
Exchange data. The Exchange believes that the proposed rates are 
equitable and non-discriminatory in that they apply uniformly to all 
recipients of Exchange data. The Exchange believes the proposed fees 
are competitive with those charged by other venues and, therefore, 
reasonable and equitably allocated to recipients.
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    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed rule change is consistent 
with Section 11(A) of the Act \19\ in that it supports (i) fair 
competition among brokers and dealers, among exchange markets, and 
between exchange markets and markets other than exchange markets and 
(ii) the availability to brokers, dealers, and investors of information 
with respect to quotations for and transactions in securities. 
Furthermore, the proposed rule change is consistent with Rule 603 of 
Regulation NMS,\20\ which provides that any national securities 
exchange that distributes information with respect to quotations for or 
transactions in an NMS stock do so on terms that are not unreasonably 
discriminatory. In adopting Regulation NMS, the Commission granted 
self-regulatory organizations and broker-dealers increased authority 
and flexibility to offer new and unique market data to the public. It 
was believed that this authority would expand the amount of data 
available to consumers, and also spur innovation and competition for 
the provision of market data.
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    \19\ 15 U.S.C. 78k-1.
    \20\ 17 CFR 242.603.
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    In addition, the proposed fees would not permit unfair 
discrimination because all of the Exchange's customers and market data 
vendors who subscribe to the ETF Implied Liquidity Feed will be subject 
to the proposed fees. The ETF Implied Liquidity Feed would be 
distributed and purchased on a voluntary basis, in that neither the 
Exchange nor market data distributors are required by any rule or 
regulation to make this data available. Accordingly, Distributors and 
Users can discontinue use at any time and for any reason, including due 
to an assessment of the reasonableness of fees charged. Firms have a 
wide variety of alternative market data products from which to choose, 
such as similar proprietary data products offered by other exchanges 
and consolidated data. Moreover, the Exchange is not required to make 
any proprietary data products available or to offer any specific 
pricing alternatives to any customers.
    In addition, the fees that are the subject of this rule filing are 
constrained by competition. As explained below in the Exchange's 
Statement on Burden on Competition, the existence of alternatives to 
the ETF Implied Liquidity Feed further ensures that the Exchange cannot 
set unreasonable fees, or fees that are unreasonably discriminatory, 
when vendors and subscribers can elect such alternatives. That is, the 
Exchange competes with other exchanges (and their affiliates) that 
provide similar market data products. For example, the ETF Implied 
Liquidity Feed provides investors with alternative market data and 
competes with similar market data product currently offered by other 
exchanges.\21\ If another exchange (or its affiliate) were to charge 
less to distribute its similar product than the Exchange charges to 
create the ETF Implied Liquidity Feed, prospective Users likely would 
not subscribe to, or would cease subscribing to the ETF Implied 
Liquidity Feed.
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    \21\ See Nasdaq Stock Market LLC's (``Nasdaq'') Global Index 
Data Service (``GIDS'') available at http://business.nasdaq.com/intel/indexes/index-data/index.html#!/tcm:5044-12151 (providing on a 
real-time basis intraday portfolio values, daily valuation 
information, such as NAV per Share, estimated cash per Share, 
estimated cash per creation unit, total cash per creation unit and 
total shares outstanding of the fund and ETF directory messages 
designed to provide the symbols of the ETF valuations). See footnote 
28 of Securities Exchange Act Release No. 77714 (April 26, 2016), 81 
FR 26281 (May 2, 2016) (describing Nasdaq's GIDS within the order 
approving SR-Nasdaq-2016-028). See also footnote 29 of Securities 
Exchange Act Release No. 78592 (August 16, 2016), 81 FR 56729 
(August 22, 2016) (describing Nasdaq's GIDS within the order 
approving SR-Nasdaq-2016-061). See, e.g., the NYSE Arca, Inc.'s 
(``NYSE Arca'') EOD ETF Report available at http://www.nyxdata.com/Data-Products/NYSE-Arca-EOD-ETF-Report (providing information such 
as the ETF's closing trades and quotes at different key points 
during the trading day, as well referential information such as 
shares outstanding, the primary market, and NAV).
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    The Exchange notes that the Commission is not required to undertake 
a cost-of-service or rate-making approach. The Exchange believes that, 
even if it were possible as a matter of economic theory, cost-based 
pricing for non-core market data would be so complicated that it could 
not be done practically.\22\
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    \22\ The Exchange believes that cost-based pricing would be 
impractical because it would create enormous administrative burdens 
for all parties, including the Commission, to cost-regulate a large 
number of participants and standardize and analyze extraordinary 
amounts of information, accounts, and reports. In addition, it is 
impossible to regulate market data prices in isolation from prices 
charged by markets for other services that are joint products. Cost-
based rate regulation would also lead to litigation and may distort 
incentives, including those to minimize costs and to innovate, 
leading to further waste. Under cost-based pricing, the Commission 
would be burdened with determining a fair rate of return, and the 
industry could experience frequent rate increases based on 
escalating expense levels. Even in industries historically subject 
to utility regulation, cost-based ratemaking has been discredited. 
As such, the Exchange believes that cost-based ratemaking would be 
inappropriate for proprietary market data and inconsistent with 
Congress's direction that the Commission use its authority to foster 
the development of the national market system, and that market 
forces will continue to provide appropriate pricing discipline. See 
Appendix C to NYSE's comments to the Commission's 2000 Concept 
Release on the Regulation of Market Information Fees and Revenues, 
which can be found on the Commission's Web site at http://www.sec.gov/rules/concept/s72899/buck1.htm. See also Securities 
Exchange Act Release No. 73816 (December 11, 2014), 79 FR 75200 
(December 17, 2014) (SR-NYSE-2014-64) (Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change to Establish an 
Access Fee for the NYSE Best Quote and Trades Data Feed, Operative 
December 1, 2014).

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[[Page 25392]]

    Distribution Fee. The Exchange believes that the proposed 
Distribution Fee is reasonable and equitably allocated in light of 
alternatives offered by other market centers. The Exchange believes it 
is reasonable to waive certain charges for those Distributors that 
receive both the ETF Implied Liquidity Feed and the Bats One Feed as 
both include the aggregate BBO for all displayed orders on the Bats 
Exchanges. The key difference here is that the ETF Implied Liquidity 
Feed also contains the Exchange's proprietary calculation of the ETF's 
implied liquidity. Waiver of the Distributor fee for External 
Distributors that also receive and pay the External Distributor for the 
Bats One Feed is equitable and reasonable because those External 
Distributors are being charged the External Distributor fees for Bats 
One, which are currently $5,000 per month for Bats One Summary and 
$12,500 per month for Bats One Premium. The fee waiver here is 
equitable due to both products providing the same key data element--the 
aggregated BBO of the Bats Exchanges. While the ETF Implied Liquidity 
Feed also includes the Exchange's proprietary calculation of an ETF's 
implied liquidity, the Exchange notes that External Distributors of the 
ETF Implied Liquidity Feed would continue to be subject to the per User 
fees. Therefore, the Exchange believes it is equitable and reasonable 
to waive the External Distributor fees in such case. The Exchange 
further believes that not extending this waiver to Internal 
Distributors is not unfairly discriminatory as Internal Distributors of 
the Bats One Feed are not charged User fees like External Distributors.
    The Exchange also believes it is equitable and reasonable to waive 
the related Logical Port fee for both Internal and External 
Distributors of the ETF Implied Liquidity Feed that also receive and 
are charged a Logical Port fee for the Bats One Feed. As stated above, 
both the Bats One Feed and the ETF Implied Liquidity Feed contain the 
same key data element--the aggregated BBO of the Bats Exchange. The 
Exchange believes not charging a Logical Port Fee in order to obtain 
the Exchange's proprietary calculation of the ETF's implied liquidity 
where that Member is currently paying a Logical Port fee to obtain the 
aggregated BBO of the Bats Exchanges via the Bats One Feed is 
reasonable. Such Distributors would continue to pay the Logical Port of 
$550 per port to receive the Bats One Feed as set forth in the 
Exchange's fee schedule.
    User Fees. The Exchange believes that implementing the Professional 
and Non-Professional User fees for the ETF Implied Liquidity Feed are 
equitable and reasonable because they will result in greater 
availability to Professional and Non-Professional Users. Moreover, 
introducing a modest Non-Professional User fee for the ETF Implied 
Liquidity Feed is reasonable because it provides an additional method 
for retail investors to access the ETF Implied Liquidity Feed data by 
providing the same data that is available to Professional Users. The 
Exchange believes that the proposed fees are equitable and not unfairly 
discriminatory because they will be charged uniformly to recipient 
firms and Users. The Exchange also believes it is not unfairly 
discriminatory to only charge User fees to External Distributor of the 
ETF Implied Liquidity Feed as it is those Distributors that 
redistribute the data to their subscribers for a fee.
    The fee structure of differentiated Professional and Non-
Professional fees is utilized by the Exchange for the Bats One Feed and 
has long been used by other exchanges for their proprietary data 
products, and by the Nasdaq UTP and the CTA and CQ Plans in order to 
reduce the price of data to retail investors and make it more broadly 
available.\23\ Offering the ETF Implied Liquidity Feed to Non-
Professional Users with the same data available to Professional Users 
results in greater equity among data recipients.
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    \23\ See Securities Exchange Act Release Nos. 74285 (February 
18, 2015), 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11); 74283 
(February 18, 2015), 80 FR 9809 (February 24, 2015) (SR-EDGA-2015-
09); 74282 (February 17, 2015), 80 FR 9487 (February 23, 2015) (SR-
EDGX-2015-09); and 74284 (February 18, 2015), 80 FR 9792 (February 
24, 2015) (SR-BYX-2015-09) (``Initial BATS One Feed Fee Filings''). 
See also, e.g., Securities Exchange Act Release No. 20002, File No. 
S7-433 (July 22, 1983) (establishing nonprofessional fees for CTA 
data); and Nasdaq Rules 7023(b) and 7047.
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    Data Consolidation Fee. The Exchange believes that the proposed 
$500 per month Data Consolidation Fee charged to External Distributors 
who receive the ETF Implied Liquidity Feed is reasonable because it 
represents the value of the data aggregation and consolidation function 
that the Exchange performs. The Exchange also believes it is equitable 
and reasonable to waive the Data Consolidation fee for External 
Distributors of the ETF Implied Liquidity Feed where that External 
Distributor also receives and is charged the Data Consolidation fee for 
the Bats One Feed. In such case, the External Distributor is being 
charged a $1,000 Data Consolidation fee for the Bats One Feed, which 
covers the consolidation function already being performed by the 
Exchange in constructing the aggregated BBO for the Bats Exchanges. 
Therefore, the Exchange believes it is equitable and reasonable to not 
charge an External Distributor two separate fees for the same function.
    The Exchange further believes the proposed Data Consolidation Fee 
is not designed to permit unfair discrimination because all External 
Distributor who subscribe to the ETF Implied Liquidity Feed will be 
charged the same fee. The Exchange believes it is reasonable and not 
unfairly discriminatory to not charge Internal Distributor a separate 
Data Consolidation Fee as instituting such a fee is designed to ensure 
that a vendor to create a competing product to the Exchange's ETF 
Implied Liquidity Feed on the same price basis as the Exchange. The 
proposed fee structure ensures the prices charged for the external 
distribution of the ETF Implied Liquidity Feed are not lower than the 
cost a vendor would incur to create a competing product. Therefore, the 
Exchange believes the proposed application of the Data Consolidation 
Fee is reasonable would not permit unfair discrimination.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
Exchange's ability to price the ETF Implied Liquidity Feed is 
constrained by: (i) Competition among exchanges, other trading 
platforms, and Trade Reporting Facilities (``TRF'') that compete with 
each other in a variety of dimensions; (ii) the existence of 
inexpensive real-time consolidated data and market-specific data and 
free delayed data; and (iii) the inherent contestability of the market 
for proprietary data.
    The Exchange and its market data products are subject to 
significant competitive forces and the proposed fees represent 
responses to that competition. To start, the Exchange competes 
intensely for order flow. It competes with the other national 
securities exchanges that currently trade equities, with electronic 
communication networks, with quotes posted in FINRA's Alternative 
Display Facility, with alternative trading systems, and with securities 
firms that primarily

[[Page 25393]]

trade as principal with their customer order flow.
    In addition, when establishing the proposed fees, the Exchange 
considered the competitiveness of the market for proprietary data and 
all of the implications of that competition. The Exchange believes that 
it has considered all relevant factors and has not considered 
irrelevant factors in order to establish fair, reasonable, and not 
unreasonably discriminatory fees and an equitable allocation of fees 
among all Users. The existence of alternatives to the ETF Implied 
Liquidity Feed ensures that the Exchange cannot set unreasonable fees, 
or fees that are unreasonably discriminatory, when vendors and 
subscribers can elect these alternatives or choose not to purchase a 
specific proprietary data product if its cost to purchase is not 
justified by the returns any particular vendor or subscriber would 
achieve through the purchase.
    Lastly, the Exchange represents that the proposed pricing of the 
ETF Implied Liquidity Feed provides investors with alternative market 
data and competes with similar market data product currently offered by 
other exchanges.\24\ In addition, the pricing is designed to ensure 
that a vendor to create a competing product to the ETF Implied 
Liquidity Feed on the same price basis as the Exchange. As stated 
above, the Exchange notes that a vendor seeking to build a competing 
product to the proposed ETF Implied Liquidity feed could simply utilize 
the top-of-book data feeds from each of the Bats Exchange's to create 
an aggregated BBO.\25\ These top-of-book feeds are EDGA Top, EDGX Top, 
BYX Top and BZX Top. The Exchange represents that a competing vendor 
could obtain these top-of-book data feeds from each of the Bats 
Exchanges on the same latency basis as the system that performs the 
aggregation and consolidation of the Bats One Summary Feed. While the 
proposed ETF Implied Liquidity feed does not separately provide the 
ETF's NBBO, the number of shares of securities underlying one creation 
unit of the ETF, or the estimated cash included in one creation unit of 
the ETF, a vendor could obtain this information from the securities 
information processors and other publicly available sources to perform 
its own calculation of an ETF's implied liquidity to include as part of 
a competing product. Therefore, a vendor could create a product to 
compete with the proposed ETF Implied Liquidity feed on the same terms 
as the Exchange. The Exchange designed the pricing of this product to 
enable a vendor to create a competing product to the ETF Implied 
Liquidity Feed on the same cost basis as the Exchange. The offering of 
certain fee waivers described herein continues to enable vendors to 
compete on price as the waivers are only granted where the Distributor 
is receiving the Bats One Feed and paying the required fees for 
External Distribution, Logical Ports, and Data Consolidation.
---------------------------------------------------------------------------

    \24\ See supra note 21.
    \25\ See supra note 16.
---------------------------------------------------------------------------

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 written comments on 
the proposed rule change.

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 \26\ and paragraph (f) of Rule 19b-4 
thereunder.\27\ 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.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 Number SR-BatsBZX-2017-36 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BatsBZX-2017-36. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BatsBZX-2017-36 and should 
be submitted on or before June 22, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11254 Filed 5-31-17; 8:45 am]
BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices                                                    25389

                                                  IV. Solicitation of Comments                              For the Commission, by the Division of               II. Self-Regulatory Organization’s
                                                                                                          Trading and Markets, pursuant to delegated             Statement of the Purpose of, and
                                                    Interested persons are invited to                     authority.31                                           Statutory Basis for, the Proposed Rule
                                                  submit written data, views, and                         Eduardo A. Aleman,                                     Change
                                                  arguments concerning the foregoing,                     Assistant Secretary.
                                                  including whether the proposed rule                                                                              In its filing with the Commission, the
                                                                                                          [FR Doc. 2017–11374 Filed 5–31–17; 8:45 am]
                                                                                                                                                                 Exchange included statements
                                                  change is consistent with the Act.                      BILLING CODE 8011–01–P                                 concerning the purpose of and basis for
                                                  Comments may be submitted by any of
                                                                                                                                                                 the proposed rule change and discussed
                                                  the following methods:                                                                                         any comments it received on the
                                                                                                          SECURITIES AND EXCHANGE                                proposed rule change. The text of these
                                                  Electronic Comments                                     COMMISSION                                             statements may be examined at the
                                                    • Use the Commission’s Internet                                                                              places specified in Item IV below. The
                                                  comment form (http://www.sec.gov/                       [Release No. 34–80772; File No. SR–                    Exchange has prepared summaries, set
                                                  rules/sro.shtml); or                                    BatsBZX–2017–36]                                       forth in Sections A, B, and C below, of
                                                    • Send an email to rule-comments@                                                                            the most significant parts of such
                                                                                                          Self-Regulatory Organizations; Bats
                                                  sec.gov. Please include File Number SR–                                                                        statements.
                                                                                                          BZX Exchange, Inc.; Notice of Filing
                                                  C2–2017–018 on the subject line.                        and Immediate Effectiveness of a                       A. Self-Regulatory Organization’s
                                                  Paper Comments                                          Proposed Rule Change To Amend the                      Statement of the Purpose of, and
                                                                                                          Market Data Section of Its Fee                         Statutory Basis for, the Proposed Rule
                                                    • Send paper comments in triplicate                   Schedule To Adopt Fees for a New                       Change
                                                  to Secretary, Securities and Exchange                   Market Data Product Called the ETF
                                                                                                                                                                 1. Purpose
                                                  Commission, 100 F Street NE.,                           Implied Liquidity Feed
                                                  Washington, DC 20549–1090.                                                                                        The Exchange proposes to amend the
                                                                                                          May 25, 2017.                                          Market Data section of its fee schedule
                                                  All submissions should refer to File                       Pursuant to Section 19(b)(1) of the                 to adopt fees for a new market data
                                                  Number SR–C2–2017–018. This file                        Securities Exchange Act of 1934 (the                   product called the ETF Implied
                                                  number should be included on the                        ‘‘Act’’),1 and Rule 19b–4 thereunder,2                 Liquidity Feed. The ETF Implied
                                                  subject line if email is used. To help the              notice is hereby given that on May 17,                 Liquidity feed is an optional data feed
                                                  Commission process and review your                      2017, Bats BZX Exchange, Inc. (the                     that would provide the Exchange’s
                                                  comments more efficiently, please use                   ‘‘Exchange’’ or ‘‘BZX’’) filed with the                proprietary calculation of the implied
                                                  only one method. The Commission will                    Securities and Exchange Commission                     liquidity and the aggregate best bid and
                                                  post all comments on the Commission’s                   (the ‘‘Commission’’) the proposed rule                 offer (‘‘BBO’’) of all displayed orders on
                                                  Internet Web site (http://www.sec.gov/                  change as described in Items I, II, and                the Exchange and its affiliated
                                                  rules/sro.shtml). Copies of the                         III below, which Items have been                       exchanges 5 for all standard, non-
                                                  submission, all subsequent                              prepared by the Exchange. The                          leveraged U.S. equity Exchange Traded
                                                  amendments, all written statements                      Exchange has designated the proposed                   Funds (‘‘ETFs’’) 6 traded on the System.7
                                                  with respect to the proposed rule                       rule change as one establishing or                     An ETF’s implied liquidity
                                                  change that are filed with the                          changing a member due, fee, or other                   disseminated via the proposed feed
                                                                                                          charge imposed by the Exchange under                   would consist of the ETF’s implied BBO
                                                  Commission, and all written
                                                                                                          Section 19(b)(3)(A)(ii) of the Act 3 and               (including the implied size) calculated
                                                  communications relating to the
                                                                                                          Rule 19b–4(f)(2) thereunder,4 which                    via a proprietary methodology based on
                                                  proposed rule change between the
                                                                                                          renders the proposed rule change                       the national best bid and offer
                                                  Commission and any person, other than                                                                          (‘‘NBBO’’), the number of shares of
                                                                                                          effective upon filing with the
                                                  those that may be withheld from the                                                                            securities underlying one creation unit
                                                                                                          Commission. The Commission is
                                                  public in accordance with the                                                                                  of the ETF, and the estimated cash
                                                                                                          publishing this notice to solicit
                                                  provisions of 5 U.S.C. 552, will be                                                                            included in one creation unit of the
                                                                                                          comments on the proposed rule change
                                                  available for Web site viewing and                      from interested persons.                               ETF. The Exchange intends to begin to
                                                  printing in the Commission’s Public                                                                            offer the ETF Implied Liquidity Feed on
                                                  Reference Room, 100 F Street NE.,                       I. Self-Regulatory Organization’s                      June 1, 2017.8
                                                  Washington, DC 20549 on official                        Statement of the Terms of Substance of
                                                  business days between the hours of                      the Proposed Rule Change                                  5 The Exchange’s affiliates are Bats EDGA

                                                  10:00 a.m. and 3:00 p.m. Copies of the                     The Exchange filed a proposal to
                                                                                                                                                                 Exchange, Inc., (‘‘EDGA’’), Bats EDGX Exchange,
                                                  filing also will be available for                                                                              Inc. (‘‘EDGX’’), and Bats BYX Exchange, Inc.
                                                                                                          amend the Market Data section of its fee               (‘‘BYX’’) (‘‘collectively, the ‘‘Bats Exchanges’’).
                                                  inspection and copying at the principal                 schedule to adopt fees for a new market                   6 The securities underlying each of the U.S.
                                                  office of the Exchange. All comments                    data product called the ETF Implied                    equity ETFs included in the proposed feed must be
                                                  received will be posted without change;                 Liquidity Feed.                                        considered NMS Securities as defined under Rule
                                                  the Commission does not edit personal                                                                          600(b)(46) of Regulation NMS. 17 CFR
                                                                                                             The text of the proposed rule change                242.600(b)(46).
                                                  identifying information from                                                                                      7 See Exchange Rule 11.22(n). See also Securities
                                                                                                          is available at the Exchange’s Web site
                                                  submissions. You should submit only                                                                            Exchange Act Release No. 80580 (May 3, 2017) (SR–
                                                                                                          at www.bats.com, at the principal office               BatsBZX–2017–25) (Notice of Filing and Immediate
                                                  information that you wish to make
mstockstill on DSK30JT082PROD with NOTICES




                                                                                                          of the Exchange, and at the                            Effectiveness of a Proposed Rule Change to Amend
                                                  available publicly. All submissions                     Commission’s Public Reference Room.                    Rule 11.22, Data Products, to Adopt a New Market
                                                  should refer to File Number SR–C2–                                                                             Data Product Known as the ETF Implied Liquidity
                                                  2017–018 and should be submitted on                       31 17 CFR 200.30–3(a)(12).
                                                                                                                                                                 Feed) (filed April 28, 2017).
                                                                                                                                                                    8 See Bats to Introduce ETF Implied Liquidity
                                                  or before June 22, 2017.                                  1 15 U.S.C. 78s(b)(1).                               Feed Effective June 1, 2017, http://
                                                                                                            2 17 CFR 240.19b–4.
                                                                                                                                                                 cdn.batstrading.com/resources/market_data/2017/
                                                                                                            3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                                                                                 Bats-to-Introduce-ETF-Implied-Liquidity-Feed-
                                                                                                            4 17 CFR 240.19b–4(f)(2).                            Effective-June-1-2017.pdf.



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                                                  25390                           Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices

                                                     The Exchange now proposes to amend                     on the Bats Exchanges. The key                       offered by the Exchange.14 Thus, the
                                                  its fee schedule to adopt fees for the ETF                difference here is that the ETF Implied              External Distributor’s count will include
                                                  Implied Liquidity Feed. The proposed                      Liquidity Feed also contains the                     every person and device that accesses
                                                  fees include the following, each of                       Exchange’s proprietary calculation of                the data regardless of the purpose for
                                                  which are described in detail below: (i)                  the ETF’s implied liquidity. As such,                which the individual or device uses the
                                                  Distribution Fees for both Internal and                   the Exchange believes it is reasonable to            data. External Distributors must report
                                                  External Distributors; 9 (ii) Usage Fees                  waive certain charges for those                      all Professional and Non-Professional
                                                  for both Professional 10 and Non-                         Distributors that receive both products.             Users in accordance with the following:
                                                  Professional 11 Users; and (iii) a Data                   First, the Exchange proposes to waive                   • In connection with an External
                                                  Consolidation fee.                                        the Distributor fee for External                     Distributor’s distribution of the ETF
                                                     Distribution Fees. As proposed, each                   Distributors of the ETF Implied                      Implied Liquidity Feed, the External
                                                  Internal and External Distributor that                    Liquidity Feed where that External                   Distributor must count as one User each
                                                  receives the ETF Implied Liquidity Feed                   Distributor also receives and is charged             unique User that the External
                                                  shall pay a fee of $5,000 per month.12                    the External Distributor fee for the Bats            Distributor has entitled to have access to
                                                  The Exchange proposes to waive certain                    One Feed. The Exchange notes that the                the ETF Implied Liquidity Feed.
                                                  fees for Distributors that also receive the               proposed External Distribution fee for               However, where a device is dedicated
                                                  Bats One Feed.13 The ETF Implied                          the ETF Implied Liquidity Feed of                    specifically to a single individual, the
                                                  Liquidity Feed and the Bats One Feed                      $5,000 per month equals that charged                 External Distributor must count only the
                                                  are similar in that both include the                      for Bats One Summary. The External                   individual and need not count the
                                                  aggregate BBO for all displayed orders                    Distribution fee for Bats One Premium                device.
                                                                                                            is higher at $12,500 per month. Second,                 • The External Distributor must
                                                     9 A ‘‘Distributor’’ is defined as ‘‘any entity that
                                                                                                            the Exchange proposes to waive the                   identify and report each unique User. If
                                                  receives the Exchange Market Data product directly        related Logical Port fee of $550 per port
                                                  from the Exchange or indirectly through another                                                                a User uses the same unique method to
                                                  entity and then distributes it internally or externally   per month for both Internal and External             gain access to the ETF Implied Liquidity
                                                  to a third party.’’ See the Exchange’s fee schedule       Distributors of the ETF Implied                      Feed, the External Distributor must
                                                  available at http://www.bats.com/us/equities/             Liquidity Feed where they also receive               count that as one User. However, if a
                                                  membership/fee_schedule/bzx/. An ‘‘Internal               and are charged a Logical Port fee for
                                                  Distributor’’ is defined as ‘‘a Distributor that                                                               unique User uses multiple methods to
                                                  receives the Exchange Market Data product and             the Bats One Feed. Distributors would                gain access to the ETF Implied Liquidity
                                                  then distributes that data to one or more Users           continue to pay the Logical Port fee to              Feed (e.g., a single User has multiple
                                                  within the Distributor’s own entity.’’ Id. An             receive the Bats One Feed. Lastly, as                passwords and user identifications), the
                                                  ‘‘External Distributor’’ is defined as ‘‘a Distributor    described below, the Exchange proposes
                                                  that receives the Exchange Market Data product and                                                             External Distributor must report each of
                                                  then distributes that data to a third party or one or     to waive the Data Consolidation fee for              those methods as an individual User.
                                                  more Users outside the Distributor’s own entity.’’        External Distributors of the ETF Implied
                                                                                                                                                                    • External Distributors must report
                                                  Id.’’                                                     Liquidity Feed where that External
                                                     10 A ‘‘Professional User’’ is defined as ‘‘any User                                                         each unique individual person who
                                                                                                            Distributor also receives and is charged
                                                  other than a Non-Professional User.’’ See the                                                                  receives access through multiple
                                                  Exchange’s fee schedule available at http://
                                                                                                            the Data Consolidation fee for the Bats
                                                                                                                                                                 devices as one User so long as each
                                                  www.bats.com/us/equities/membership/fee_                  One Feed. The Exchange believes
                                                                                                                                                                 device is dedicated specifically to that
                                                  schedule/bzx/.                                            waiving the above fees would avoid
                                                     11 A ‘‘Non-Professional User’’ is defined as ‘‘a
                                                                                                            overlapping charges for Distributors that            individual.
                                                  natural person who is not: (i) Registered or qualified    also receive the Bats One Feed, as both                 • If an External Distributor entitles
                                                  in any capacity with the Commission, the                                                                       one or more individuals to use the same
                                                  Commodity Futures Trading Commission, any state           feeds include the aggregated BBO of the
                                                  securities agency, any securities exchange or             Bats Exchanges as a core part of their               device, the Distributor must include
                                                  association, or any commodities or futures contract       offering. These Distributors would                   only the individuals, and not the device,
                                                  market or association; (ii) engaged as an
                                                                                                            continue to pay these fees for receipt of            in the count.
                                                  ‘‘investment adviser’’ as that term is defined in                                                                 Data Consolidation Fee. The
                                                  Section 202(a)(11) of the Investment Advisers Act         the Bats One Feed and are liable for the
                                                  of 1940 (whether or not registered or qualified           User fees to be charged for the ETF                  Exchange also proposes to charge
                                                  under that Act); or (iii) employed by a bank or other     Implied Liquidity Feed described                     External Distributors of the ETF Implied
                                                  organization exempt from registration under federal       below.                                               Liquidity Feed a separate Data
                                                  or state securities laws to perform functions that                                                             Consolidation Fee of $500 per month,
                                                  would require registration or qualification if such          User Fees. The Exchange proposes to
                                                  functions were performed for an organization not so       charge External Distributors that                    which reflects the value of the
                                                  exempt.’’ Id.                                             redistribute the ETF Implied Liquidity               aggregation and consolidation function
                                                     12 A Distributor that acts as both an Internal
                                                                                                            Feed different fees for their Professional           the Exchange performs in creating the
                                                  Distributor and an External Distributor of the ETF        Users and Non-Professional Users. The                portion of the feed that includes the
                                                  Implied Liquidity Feed will be subject to both the
                                                  Internal Distribution Fee and the External                Exchange will assess a monthly fee for               aggregated BBO of all displayed orders
                                                  Distribution Fee.                                         Professional Users of $25.00 per User.               on the Exchange and its affiliated
                                                     13 The Bats One Feed is a data feed that               Non-Professional Users will be assessed              exchanges. The Exchange would
                                                  disseminates, on a real-time basis, the aggregate         a monthly fee of $1.00 per User. The                 provide the aggregate BBO disseminated
                                                  BBO for securities traded on each of the Bats                                                                  via the Bats One Feed as part of the ETF
                                                  Exchanges. The Bats One Feed also contains the
                                                                                                            Exchange does not propose to charge
                                                  individual last sale information for the Bats             per User fees to Internal Distributors
                                                  Exchanges (collectively with the aggregate BBO, the       that receive the ETF Implied Liquidity                 14 See Securities Exchange Act Release Nos.

                                                  ‘‘Bats One Summary Feed’’). See Exchange Rule             Feed.                                                74285 (February 18, 2015); 80 FR 9828 (February
                                                  11.22(j). See also Securities Exchange Act Release           External Distributors that receive the            24, 2015) (SR–BATS–2015–11) (proposing fees for
mstockstill on DSK30JT082PROD with NOTICES




                                                  No. 73918 (December 23, 2014), 79 FR 78920                                                                     the Bats One Feed); 75406 (July 9, 2015), 80 FR
                                                  (December 31, 2014) (File Nos. SR–EDGX–2014–25;
                                                                                                            ETF Implied Liquidity Feed will be                   41522 (July 15, 2015) (SR–BATS–2015–48)
                                                  SR–EDGA–2014–25; SR–BATS–2014–055; SR–                    required to count every Professional                 (proposing user fees for the BZX Top and Last Sale
                                                  BYX–2014–030) (Notice of Amendment No. 2 and              User and Non-Professional User to                    data feeds); 75785 (August 28, 2015), 80 FR 53360
                                                  Order Granting Accelerated Approval to Proposed           which they provide the ETF Implied                   (September 3, 2015) (SR–BATS–2015–64)
                                                  Rule Changes, as Modified by Amendments Nos. 1                                                                 (proposing fees for BZX Book Viewer); and 79636
                                                  and 2, to Establish a New Market Data Product
                                                                                                            Liquidity Feed, the requirements for                 (December 21, 2016), 81 FR 95693 (December 28,
                                                  called the Bats One Feed) (‘‘Bats One Approval            which are identical to that currently in             2016) (SR–BatsBZX–2016–87) (proposing fees for
                                                  Order’’).                                                 place for other market data products                 BZX Summary Depth).



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                                                                                 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices                                                     25391

                                                  Implied Liquidity feed.15 The Exchange                  Section 11(A) of the Act 19 in that it                products. For example, the ETF Implied
                                                  creates the Bats One Feed, including the                supports (i) fair competition among                   Liquidity Feed provides investors with
                                                  aggregated BBO of the Bats Exchanges,                   brokers and dealers, among exchange                   alternative market data and competes
                                                  by aggregating data derived from the                    markets, and between exchange markets                 with similar market data product
                                                  EDGX Depth, EDGA Depth, BYX Depth,                      and markets other than exchange                       currently offered by other exchanges.21
                                                  and BZX Depth.16 The Exchange                           markets and (ii) the availability to                  If another exchange (or its affiliate) were
                                                  proposes to waive the Data                              brokers, dealers, and investors of                    to charge less to distribute its similar
                                                  Consolidation fee for External                          information with respect to quotations                product than the Exchange charges to
                                                  Distributors of the ETF Implied                         for and transactions in securities.                   create the ETF Implied Liquidity Feed,
                                                  Liquidity Feed where that External                      Furthermore, the proposed rule change                 prospective Users likely would not
                                                  Distributor also receives and is charged                is consistent with Rule 603 of                        subscribe to, or would cease subscribing
                                                  the Data Consolidation fee for the Bats                 Regulation NMS,20 which provides that                 to the ETF Implied Liquidity Feed.
                                                  One Feed. As stated above, the                          any national securities exchange that                    The Exchange notes that the
                                                  Exchange believes waiving this fee                      distributes information with respect to               Commission is not required to
                                                  would avoid overlapping charges for                     quotations for or transactions in an NMS              undertake a cost-of-service or rate-
                                                  Distributors that also receive the Bats                 stock do so on terms that are not                     making approach. The Exchange
                                                  One Feed, as both feeds include the                     unreasonably discriminatory. In                       believes that, even if it were possible as
                                                  aggregated BBO of the Bats Exchanges.                   adopting Regulation NMS, the                          a matter of economic theory, cost-based
                                                  In such case, the External Distributor is               Commission granted self-regulatory                    pricing for non-core market data would
                                                  being charged a $1,000 Data                             organizations and broker-dealers                      be so complicated that it could not be
                                                  Consolidation fee for the Bats One Feed,                increased authority and flexibility to                done practically.22
                                                  which covers the consolidation function                 offer new and unique market data to the
                                                  already being performed by the                          public. It was believed that this                        21 See Nasdaq Stock Market LLC’s (‘‘Nasdaq’’)

                                                                                                          authority would expand the amount of                  Global Index Data Service (‘‘GIDS’’) available at
                                                  Exchange in constructing the aggregated                                                                       http://business.nasdaq.com/intel/indexes/index-
                                                  BBO for the Bats Exchanges. The                         data available to consumers, and also                 data/index.html#!/tcm:5044-12151 (providing on a
                                                  Exchange, therefore, believes it is                     spur innovation and competition for the               real-time basis intraday portfolio values, daily
                                                  reasonable to not charge External                       provision of market data.                             valuation information, such as NAV per Share,
                                                                                                             In addition, the proposed fees would               estimated cash per Share, estimated cash per
                                                  Distributors an additional Data                                                                               creation unit, total cash per creation unit and total
                                                  Consolidation fee for the same                          not permit unfair discrimination                      shares outstanding of the fund and ETF directory
                                                  aggregation function performed for the                  because all of the Exchange’s customers               messages designed to provide the symbols of the
                                                  Bats One Feed.                                          and market data vendors who subscribe                 ETF valuations). See footnote 28 of Securities
                                                                                                          to the ETF Implied Liquidity Feed will                Exchange Act Release No. 77714 (April 26, 2016),
                                                  Implementation Date                                                                                           81 FR 26281 (May 2, 2016) (describing Nasdaq’s
                                                                                                          be subject to the proposed fees. The ETF              GIDS within the order approving SR–Nasdaq–2016–
                                                    The Exchange intends to implement                     Implied Liquidity Feed would be                       028). See also footnote 29 of Securities Exchange
                                                  the proposed fees on June 1, 2017.                      distributed and purchased on a                        Act Release No. 78592 (August 16, 2016), 81 FR
                                                                                                          voluntary basis, in that neither the                  56729 (August 22, 2016) (describing Nasdaq’s GIDS
                                                                                                                                                                within the order approving SR–Nasdaq–2016–061).
                                                  2. Statutory Basis                                      Exchange nor market data distributors                 See, e.g., the NYSE Arca, Inc.’s (‘‘NYSE Arca’’) EOD
                                                     The Exchange believes that the                       are required by any rule or regulation to             ETF Report available at http://www.nyxdata.com/
                                                  proposed rule change is consistent with                 make this data available. Accordingly,                Data-Products/NYSE-Arca-EOD-ETF-Report
                                                                                                          Distributors and Users can discontinue                (providing information such as the ETF’s closing
                                                  the objectives of Section 6 of the Act,17                                                                     trades and quotes at different key points during the
                                                  in general, and furthers the objectives of              use at any time and for any reason,                   trading day, as well referential information such as
                                                  Section 6(b)(4),18 in particular, as it is              including due to an assessment of the                 shares outstanding, the primary market, and NAV).
                                                  designed to provide for the equitable                   reasonableness of fees charged. Firms                    22 The Exchange believes that cost-based pricing


                                                  allocation of reasonable dues, fees and                 have a wide variety of alternative                    would be impractical because it would create
                                                                                                          market data products from which to                    enormous administrative burdens for all parties,
                                                  other charges among its members and                                                                           including the Commission, to cost-regulate a large
                                                                                                          choose, such as similar proprietary data
                                                  other recipients of Exchange data. The                                                                        number of participants and standardize and analyze
                                                                                                          products offered by other exchanges and               extraordinary amounts of information, accounts,
                                                  Exchange believes that the proposed
                                                                                                          consolidated data. Moreover, the                      and reports. In addition, it is impossible to regulate
                                                  rates are equitable and non-                                                                                  market data prices in isolation from prices charged
                                                                                                          Exchange is not required to make any
                                                  discriminatory in that they apply                                                                             by markets for other services that are joint products.
                                                                                                          proprietary data products available or to
                                                  uniformly to all recipients of Exchange                                                                       Cost-based rate regulation would also lead to
                                                                                                          offer any specific pricing alternatives to            litigation and may distort incentives, including
                                                  data. The Exchange believes the
                                                                                                          any customers.                                        those to minimize costs and to innovate, leading to
                                                  proposed fees are competitive with                         In addition, the fees that are the                 further waste. Under cost-based pricing, the
                                                  those charged by other venues and,                      subject of this rule filing are constrained           Commission would be burdened with determining
                                                  therefore, reasonable and equitably                     by competition. As explained below in
                                                                                                                                                                a fair rate of return, and the industry could
                                                  allocated to recipients.                                                                                      experience frequent rate increases based on
                                                                                                          the Exchange’s Statement on Burden on                 escalating expense levels. Even in industries
                                                     The Exchange believes that the                       Competition, the existence of                         historically subject to utility regulation, cost-based
                                                  proposed rule change is consistent with                 alternatives to the ETF Implied                       ratemaking has been discredited. As such, the
                                                                                                                                                                Exchange believes that cost-based ratemaking
                                                                                                          Liquidity Feed further ensures that the               would be inappropriate for proprietary market data
                                                    15 See  Bats One Approval Order, supra note 13.       Exchange cannot set unreasonable fees,                and inconsistent with Congress’s direction that the
                                                    16 See  EDGA Rule 13.8, EDGX Rule 13.8, BZX
                                                                                                          or fees that are unreasonably                         Commission use its authority to foster the
                                                  Rule 11.22(a) and (c), and BYX Rule 11.22 (a) and                                                             development of the national market system, and
                                                                                                          discriminatory, when vendors and
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                                                  (c) for a description of the depth of book feeds                                                              that market forces will continue to provide
                                                  offered by each of the Bats Exchanges. Rather than      subscribers can elect such alternatives.              appropriate pricing discipline. See Appendix C to
                                                  these depth-of-book feeds, the Exchange notes that      That is, the Exchange competes with                   NYSE’s comments to the Commission’s 2000
                                                  a vendor seeking to build a competing product to                                                              Concept Release on the Regulation of Market
                                                  the proposed ETF Implied Liquidity feed could
                                                                                                          other exchanges (and their affiliates)
                                                                                                                                                                Information Fees and Revenues, which can be
                                                  simply utilize the top-of-book data feeds from each     that provide similar market data                      found on the Commission’s Web site at http://
                                                  of the Bats Exchange’s to create an aggregated BBO.                                                           www.sec.gov/rules/concept/s72899/buck1.htm. See
                                                     17 15 U.S.C. 78f.                                     19 15   U.S.C. 78k–1.                                also Securities Exchange Act Release No. 73816
                                                     18 15 U.S.C. 78f(b)(4).                               20 17   CFR 242.603.                                                                             Continued




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                                                  25392                          Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices

                                                     Distribution Fee. The Exchange                       continue to pay the Logical Port of $550              Distributor is being charged a $1,000
                                                  believes that the proposed Distribution                 per port to receive the Bats One Feed as              Data Consolidation fee for the Bats One
                                                  Fee is reasonable and equitably                         set forth in the Exchange’s fee schedule.             Feed, which covers the consolidation
                                                  allocated in light of alternatives offered                 User Fees. The Exchange believes that              function already being performed by the
                                                  by other market centers. The Exchange                   implementing the Professional and Non-                Exchange in constructing the aggregated
                                                  believes it is reasonable to waive certain              Professional User fees for the ETF                    BBO for the Bats Exchanges. Therefore,
                                                  charges for those Distributors that                     Implied Liquidity Feed are equitable                  the Exchange believes it is equitable and
                                                  receive both the ETF Implied Liquidity                  and reasonable because they will result               reasonable to not charge an External
                                                  Feed and the Bats One Feed as both                      in greater availability to Professional               Distributor two separate fees for the
                                                  include the aggregate BBO for all                       and Non-Professional Users. Moreover,                 same function.
                                                  displayed orders on the Bats Exchanges.                 introducing a modest Non-Professional                    The Exchange further believes the
                                                  The key difference here is that the ETF                 User fee for the ETF Implied Liquidity                proposed Data Consolidation Fee is not
                                                  Implied Liquidity Feed also contains the                Feed is reasonable because it provides                designed to permit unfair
                                                  Exchange’s proprietary calculation of                   an additional method for retail investors             discrimination because all External
                                                  the ETF’s implied liquidity. Waiver of                  to access the ETF Implied Liquidity                   Distributor who subscribe to the ETF
                                                  the Distributor fee for External                        Feed data by providing the same data                  Implied Liquidity Feed will be charged
                                                  Distributors that also receive and pay                  that is available to Professional Users.              the same fee. The Exchange believes it
                                                  the External Distributor for the Bats One               The Exchange believes that the                        is reasonable and not unfairly
                                                  Feed is equitable and reasonable                        proposed fees are equitable and not                   discriminatory to not charge Internal
                                                  because those External Distributors are                 unfairly discriminatory because they                  Distributor a separate Data
                                                  being charged the External Distributor                  will be charged uniformly to recipient                Consolidation Fee as instituting such a
                                                  fees for Bats One, which are currently                  firms and Users. The Exchange also                    fee is designed to ensure that a vendor
                                                  $5,000 per month for Bats One                           believes it is not unfairly discriminatory            to create a competing product to the
                                                  Summary and $12,500 per month for                       to only charge User fees to External                  Exchange’s ETF Implied Liquidity Feed
                                                  Bats One Premium. The fee waiver here                   Distributor of the ETF Implied Liquidity              on the same price basis as the Exchange.
                                                  is equitable due to both products                       Feed as it is those Distributors that                 The proposed fee structure ensures the
                                                  providing the same key data element—                    redistribute the data to their subscribers            prices charged for the external
                                                  the aggregated BBO of the Bats                          for a fee.                                            distribution of the ETF Implied
                                                  Exchanges. While the ETF Implied                           The fee structure of differentiated
                                                                                                                                                                Liquidity Feed are not lower than the
                                                  Liquidity Feed also includes the                        Professional and Non-Professional fees
                                                                                                                                                                cost a vendor would incur to create a
                                                  Exchange’s proprietary calculation of an                is utilized by the Exchange for the Bats
                                                                                                                                                                competing product. Therefore, the
                                                  ETF’s implied liquidity, the Exchange                   One Feed and has long been used by
                                                                                                          other exchanges for their proprietary                 Exchange believes the proposed
                                                  notes that External Distributors of the                                                                       application of the Data Consolidation
                                                  ETF Implied Liquidity Feed would                        data products, and by the Nasdaq UTP
                                                                                                          and the CTA and CQ Plans in order to                  Fee is reasonable would not permit
                                                  continue to be subject to the per User                                                                        unfair discrimination.
                                                  fees. Therefore, the Exchange believes it               reduce the price of data to retail
                                                  is equitable and reasonable to waive the                investors and make it more broadly                    B. Self-Regulatory Organization’s
                                                  External Distributor fees in such case.                 available.23 Offering the ETF Implied                 Statement on Burden on Competition
                                                  The Exchange further believes that not                  Liquidity Feed to Non-Professional
                                                                                                          Users with the same data available to                   The Exchange does not believe that
                                                  extending this waiver to Internal
                                                                                                          Professional Users results in greater                 the proposed rule change will result in
                                                  Distributors is not unfairly
                                                                                                          equity among data recipients.                         any burden on competition that is not
                                                  discriminatory as Internal Distributors
                                                                                                             Data Consolidation Fee. The                        necessary or appropriate in furtherance
                                                  of the Bats One Feed are not charged
                                                                                                          Exchange believes that the proposed                   of the purposes of the Act, as amended.
                                                  User fees like External Distributors.
                                                     The Exchange also believes it is                     $500 per month Data Consolidation Fee                 The Exchange’s ability to price the ETF
                                                  equitable and reasonable to waive the                   charged to External Distributors who                  Implied Liquidity Feed is constrained
                                                  related Logical Port fee for both Internal              receive the ETF Implied Liquidity Feed                by: (i) Competition among exchanges,
                                                  and External Distributors of the ETF                    is reasonable because it represents the               other trading platforms, and Trade
                                                  Implied Liquidity Feed that also receive                value of the data aggregation and                     Reporting Facilities (‘‘TRF’’) that
                                                  and are charged a Logical Port fee for                  consolidation function that the                       compete with each other in a variety of
                                                  the Bats One Feed. As stated above, both                Exchange performs. The Exchange also                  dimensions; (ii) the existence of
                                                  the Bats One Feed and the ETF Implied                   believes it is equitable and reasonable to            inexpensive real-time consolidated data
                                                  Liquidity Feed contain the same key                     waive the Data Consolidation fee for                  and market-specific data and free
                                                  data element—the aggregated BBO of                      External Distributors of the ETF Implied              delayed data; and (iii) the inherent
                                                  the Bats Exchange. The Exchange                         Liquidity Feed where that External                    contestability of the market for
                                                  believes not charging a Logical Port Fee                Distributor also receives and is charged              proprietary data.
                                                  in order to obtain the Exchange’s                       the Data Consolidation fee for the Bats                 The Exchange and its market data
                                                  proprietary calculation of the ETF’s                    One Feed. In such case, the External                  products are subject to significant
                                                  implied liquidity where that Member is                                                                        competitive forces and the proposed
                                                  currently paying a Logical Port fee to                     23 See Securities Exchange Act Release Nos.        fees represent responses to that
                                                  obtain the aggregated BBO of the Bats                   74285 (February 18, 2015), 80 FR 9828 (February       competition. To start, the Exchange
                                                  Exchanges via the Bats One Feed is                      24, 2015) (SR–BATS–2015–11); 74283 (February 18,      competes intensely for order flow. It
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                                                                                                          2015), 80 FR 9809 (February 24, 2015) (SR–EDGA–
                                                  reasonable. Such Distributors would                     2015–09); 74282 (February 17, 2015), 80 FR 9487
                                                                                                                                                                competes with the other national
                                                                                                          (February 23, 2015) (SR–EDGX–2015–09); and            securities exchanges that currently trade
                                                  (December 11, 2014), 79 FR 75200 (December 17,          74284 (February 18, 2015), 80 FR 9792 (February       equities, with electronic communication
                                                  2014) (SR–NYSE–2014–64) (Notice of Filing and           24, 2015) (SR–BYX–2015–09) (‘‘Initial BATS One        networks, with quotes posted in
                                                  Immediate Effectiveness of Proposed Rule Change         Feed Fee Filings’’). See also, e.g., Securities
                                                  to Establish an Access Fee for the NYSE Best Quote      Exchange Act Release No. 20002, File No. S7–433
                                                                                                                                                                FINRA’s Alternative Display Facility,
                                                  and Trades Data Feed, Operative December 1,             (July 22, 1983) (establishing nonprofessional fees    with alternative trading systems, and
                                                  2014).                                                  for CTA data); and Nasdaq Rules 7023(b) and 7047.     with securities firms that primarily


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                                                                                 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices                                                  25393

                                                  trade as principal with their customer                  feed on the same terms as the Exchange.                only one method. The Commission will
                                                  order flow.                                             The Exchange designed the pricing of                   post all comments on the Commission’s
                                                     In addition, when establishing the                   this product to enable a vendor to create              Internet Web site (http://www.sec.gov/
                                                  proposed fees, the Exchange considered                  a competing product to the ETF Implied                 rules/sro.shtml). Copies of the
                                                  the competitiveness of the market for                   Liquidity Feed on the same cost basis as               submission, all subsequent
                                                  proprietary data and all of the                         the Exchange. The offering of certain fee              amendments, all written statements
                                                  implications of that competition. The                   waivers described herein continues to                  with respect to the proposed rule
                                                  Exchange believes that it has considered                enable vendors to compete on price as                  change that are filed with the
                                                  all relevant factors and has not                        the waivers are only granted where the                 Commission, and all written
                                                  considered irrelevant factors in order to               Distributor is receiving the Bats One                  communications relating to the
                                                  establish fair, reasonable, and not                     Feed and paying the required fees for                  proposed rule change between the
                                                  unreasonably discriminatory fees and an                 External Distribution, Logical Ports, and              Commission and any person, other than
                                                  equitable allocation of fees among all                  Data Consolidation.                                    those that may be withheld from the
                                                  Users. The existence of alternatives to                                                                        public in accordance with the
                                                  the ETF Implied Liquidity Feed ensures                  C. Self-Regulatory Organization’s                      provisions of 5 U.S.C. 552, will be
                                                  that the Exchange cannot set                            Statement on Comments on the                           available for Web site viewing and
                                                  unreasonable fees, or fees that are                     Proposed Rule Change Received From                     printing in the Commission’s Public
                                                  unreasonably discriminatory, when                       Members, Participants, or Others                       Reference Room, 100 F Street NE.,
                                                  vendors and subscribers can elect these                   The Exchange has neither solicited                   Washington, DC 20549, on official
                                                  alternatives or choose not to purchase a                nor received written comments on the                   business days between the hours of
                                                  specific proprietary data product if its                proposed rule change.                                  10:00 a.m. and 3:00 p.m. Copies of the
                                                  cost to purchase is not justified by the                                                                       filing also will be available for
                                                  returns any particular vendor or                        III. Date of Effectiveness of the                      inspection and copying at the principal
                                                  subscriber would achieve through the                    Proposed Rule Change and Timing for                    office of the Exchange. All comments
                                                  purchase.                                               Commission Action                                      received will be posted without change;
                                                     Lastly, the Exchange represents that                    The foregoing rule change has become                the Commission does not edit personal
                                                  the proposed pricing of the ETF Implied                 effective pursuant to Section 19(b)(3)(A)              identifying information from
                                                  Liquidity Feed provides investors with                  of the Act 26 and paragraph (f) of Rule                submissions. You should submit only
                                                  alternative market data and competes                    19b–4 thereunder.27 At any time within                 information that you wish to make
                                                  with similar market data product                        60 days of the filing of the proposed rule             available publicly. All submissions
                                                  currently offered by other exchanges.24                 change, the Commission summarily may                   should refer to File Number SR–
                                                  In addition, the pricing is designed to                 temporarily suspend such rule change if                BatsBZX–2017–36 and should be
                                                  ensure that a vendor to create a                        it appears to the Commission that such                 submitted on or before June 22, 2017.
                                                  competing product to the ETF Implied                    action is necessary or appropriate in the                For the Commission, by the Division of
                                                  Liquidity Feed on the same price basis                  public interest, for the protection of                 Trading and Markets, pursuant to delegated
                                                  as the Exchange. As stated above, the                   investors, or otherwise in furtherance of              authority.28
                                                  Exchange notes that a vendor seeking to                 the purposes of the Act.                               Eduardo A. Aleman,
                                                  build a competing product to the                                                                               Assistant Secretary.
                                                  proposed ETF Implied Liquidity feed                     IV. Solicitation of Comments
                                                                                                                                                                 [FR Doc. 2017–11254 Filed 5–31–17; 8:45 am]
                                                  could simply utilize the top-of-book                      Interested persons are invited to
                                                                                                                                                                 BILLING CODE 8011–01–P
                                                  data feeds from each of the Bats                        submit written data, views, and
                                                  Exchange’s to create an aggregated                      arguments concerning the foregoing,
                                                  BBO.25 These top-of-book feeds are                      including whether the proposed rule                    SECURITIES AND EXCHANGE
                                                  EDGA Top, EDGX Top, BYX Top and                         change is consistent with the Act.                     COMMISSION
                                                  BZX Top. The Exchange represents that                   Comments may be submitted by any of
                                                  a competing vendor could obtain these                   the following methods:                                 [Release No. 34–80779; File No. SR–MIAX–
                                                  top-of-book data feeds from each of the                                                                        2017–22]
                                                  Bats Exchanges on the same latency                      Electronic Comments
                                                  basis as the system that performs the                     • Use the Commission’s Internet                      Self-Regulatory Organizations; Miami
                                                  aggregation and consolidation of the                    comment form (http://www.sec.gov/                      International Securities Exchange LLC;
                                                  Bats One Summary Feed. While the                                                                               Notice of Filing and Immediate
                                                                                                          rules/sro.shtml); or
                                                  proposed ETF Implied Liquidity feed                       • Send an email to rule-comments@                    Effectiveness of a Proposed Rule
                                                  does not separately provide the ETF’s                   sec.gov. Please include File Number SR–                Change To Amend MIAX Options Rule
                                                  NBBO, the number of shares of                           BatsBZX–2017–36 on the subject line.                   515A, MIAX Price Improvement
                                                  securities underlying one creation unit                                                                        Mechanism (‘‘PRIME’’) and PRIME
                                                                                                          Paper Comments                                         Solicitation Mechanism
                                                  of the ETF, or the estimated cash
                                                  included in one creation unit of the                      • Send paper comments in triplicate                  May 26, 2017.
                                                  ETF, a vendor could obtain this                         to Brent J. Fields, Secretary, Securities                Pursuant to the provisions of Section
                                                  information from the securities                         and Exchange Commission, 100 F Street                  19(b)(1) of the Securities Exchange Act
                                                  information processors and other                        NE., Washington, DC 20549–1090.                        of 1934 (‘‘Act’’) 1 and Rule 19b–4
                                                  publicly available sources to perform its               All submissions should refer to File                   thereunder,2 notice is hereby given that
                                                  own calculation of an ETF’s implied                     Number SR–BatsBZX–2017–36. This file
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                                                                                                                                                                 on May 17, 2017, Miami International
                                                  liquidity to include as part of a                       number should be included on the                       Securities Exchange, LLC (‘‘MIAX
                                                  competing product. Therefore, a vendor                  subject line if email is used. To help the             Options’’ or ‘‘Exchange’’) filed with the
                                                  could create a product to compete with                  Commission process and review your                     Securities and Exchange Commission
                                                  the proposed ETF Implied Liquidity                      comments more efficiently, please use
                                                                                                                                                                   28 17 CFR 200.30–3(a)(12).
                                                    24 See supra note 21.                                  26 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                    25 See supra note 16.                                  27 17 CFR 240.19b–4(f).                                 2 17 CFR 240.19b–4.




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Document Created: 2017-06-01 03:04:58
Document Modified: 2017-06-01 03:04:58
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 25389 

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