82 FR 27741 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.5 of Bats EDGX Exchange, Inc. To Extend Through December 31, 2017, the Penny Pilot Program in Options Classes in Certain Issues
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 115 (June 16, 2017)
Federal Register Volume 82, Issue 115 (June 16, 2017)
| Page Range | 27741-27743 | |
| FR Document | 2017-12458 |
[Federal Register Volume 82, Number 115 (Friday, June 16, 2017)] [Notices] [Pages 27741-27743] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12458] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80907; File No. SR-BatsEDGX-2017-28] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.5 of Bats EDGX Exchange, Inc. To Extend Through December 31, 2017, the Penny Pilot Program in Options Classes in Certain Issues June 12, 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 June 7, 2017, Bats EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to extend through December 31, 2017, the Penny Pilot Program (``Penny Pilot'') in options classes in certain issues (``Pilot Program'') previously approved by the Commission.\5\ --------------------------------------------------------------------------- \5\ The rules of EDGX Options, including rules applicable to EDGX Options' participation in the Penny Pilot, were approved on August 7, 2015. See Securities Exchange Act Release No. 75650 (August 7, 2015), 80 FR 48600 (August 13, 2015) (SR-EDGX-2015-18). EDGX Options commenced operations on November 2, 2015. The Penny Pilot was extended for EDGX Options through June 30, 2017. See Securities Exchange Act Release No. 79222 (November 2, 2016), 81 FR 78673 (November 8, 2016) (SR-BatsEDGX-2016-71)[sic]. --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. [[Page 27742]] 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 purpose of this filing is to extend the Penny Pilot, which was previously approved by the Commission, through December 31, 2017, and to provide revised dates for adding replacement issues to the Pilot Program. The Exchange proposes that any Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2017. The replacement issues will be selected based on trading activity for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning December 1, 2016, and ending May 31, 2017). The Exchange represents that the Exchange has the necessary system capacity to continue to support operation of the Penny Pilot. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\6\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \7\ because it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system. The Exchange believes that the Pilot Program promotes just and equitable principles of trade by enabling public customers and other market participants to express their true prices to buy and sell options. Accordingly, the Exchange believes that the proposal is consistent with the Act because it will allow the Exchange to extend the Pilot Program prior to its expiration on June 30, 2017. The Exchange notes that this proposal does not propose any new policies or provisions that are unique or unproven, but instead relates to the continuation of an existing program that operates on a pilot basis. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In this regard, the Exchange notes that the rule change is being proposed in order to continue the Pilot Program, which is a competitive response to analogous programs offered by other options exchanges. The Exchange believes this proposed rule change is necessary to permit fair competition among the options exchanges. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, become operative for 30 days from the date on which it was filed or such shorter time as the Commission may designate it has become effective pursuant to Section 19(b)(3)(A) of the Act \8\ and paragraph (f)(6) of Rule 19b-4 thereunder,\9\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally does not become operative prior to 30 days after the date of the filing.\11\ However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested a waiver of 30-day operative delay to allow the Exchange to extend the Pilot Program prior to its expiration on June 30, 2017. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\13\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6). \12\ 17 CFR 240.19b-4(f)(6)(iii). \13\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File No. SR-BatsEDGX-2017-28 on the subject line. [[Page 27743]] Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-BatsEDGX-2017-28. 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 such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsEDGX-2017-28 and should be submitted on or before July 7, 2017. --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-12458 Filed 6-15-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices 27741
continue to enable the Exchange to grant Paper Comments SECURITIES AND EXCHANGE
small firms exemptions from the OATS COMMISSION
requirements as those firms are • Send paper comments in triplicate
preparing to report information to the to Secretary, Securities and Exchange
[Release No. 34–80907; File No. SR–
CAT Central Repository, thereby Commission, 100 F Street NE.,
BatsEDGX–2017–28]
avoiding potentially unnecessary Washington, DC 20549–1090.
expense or hardship on firms that All submissions should refer to File Self-Regulatory Organizations; Bats
qualify for the exemption. Number SR–NYSE–2017–28. This file EDGX Exchange, Inc.; Notice of Filing
The Commission believes that number should be included on the and Immediate Effectiveness of a
waiving the 30-day operative delay is subject line if email is used. To help the Proposed Rule Change to Rule 21.5 of
consistent with the protection of Commission process and review your Bats EDGX Exchange, Inc. To Extend
investors and the public interest. Absent comments more efficiently, please use Through December 31, 2017, the Penny
such action, a small firm that otherwise only one method. The Commission will Pilot Program in Options Classes in
would qualify for an exemption would post all comments on the Commission’s Certain Issues
have to comply with the Exchange Internet Web site (http://www.sec.gov/
requirements to record and report June 12, 2017.
rules/sro.shtml). Copies of the
manual orders to OATS because the Pursuant to Section 19(b)(1) of the
submission, all subsequent
Exchange would not have the authority Securities Exchange Act of 1934 (the
to grant an exemption during the 30-day amendments, all written statements
with respect to the proposed rule ‘‘Act’’),1 and Rule 19b–4 thereunder,2
pre-operative period. The Commission
change that are filed with the notice is hereby given that on June 7,
agrees with the Exchange that waiving
Commission, and all written 2017, Bats EDGX Exchange, Inc. (the
the 30-day operative delay would enable
the Exchange, in appropriate cases, to communications relating to the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
prevent unnecessary expense being proposed rule change between the Securities and Exchange Commission
imposed on small firms. Therefore, the Commission and any person, other than (‘‘Commission’’) the proposed rule
Commission hereby waives the those that may be withheld from the change as described in Items I and II
operative delay and designates the public in accordance with the below, which Items have been prepared
proposed rule change operative upon provisions of 5 U.S.C. 552, will be by the Exchange. The Exchange has
filing.16 available for Web site viewing and designated this proposal as a ‘‘non-
At any time within 60 days of the printing in the Commission’s Public controversial’’ proposed rule change
filing of such proposed rule change, the Reference Room, 100 F Street NE., pursuant to Section 19(b)(3)(A) of the
Commission summarily may Washington, DC 20549 on official Act 3 and Rule 19b–4(f)(6)(iii)
temporarily suspend such rule change if business days between the hours of thereunder,4 which renders it effective
it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of the upon filing with the Commission. The
action is necessary or appropriate in the filing also will be available for Commission is publishing this notice to
public interest, for the protection of inspection and copying at the principal solicit comments on the proposed rule
investors, or otherwise in furtherance of office of the Exchange. All comments change from interested persons.
the purposes of the Act. If the received will be posted without change; I. Self-Regulatory Organization’s
Commission takes such action, the the Commission does not edit personal Statement of the Terms of Substance of
Commission shall institute proceedings identifying information from
under Section 19(b)(2)(B) of the Act 17 to the Proposed Rule Change
submissions. You should submit only
determine whether the proposed rule information that you wish to make The Exchange filed a proposal to
change should be approved or available publicly. All submissions extend through December 31, 2017, the
disapproved. should refer to File Number SR–NYSE– Penny Pilot Program (‘‘Penny Pilot’’) in
IV. Solicitation of Comments 2017–28 and should be submitted on or options classes in certain issues (‘‘Pilot
before July 7,2017. Program’’) previously approved by the
Interested persons are invited to Commission.5
submit written data, views, and For the Commission, by the Division of
arguments concerning the foregoing, Trading and Markets, pursuant to delegated The text of the proposed rule change
including whether the proposed rule authority.18 is available at the Exchange’s Web site
change is consistent with the Act. Eduardo A. Aleman, at www.batstrading.com, at the
Comments may be submitted by any of Assistant Secretary. principal office of the Exchange, and at
the following methods: [FR Doc. 2017–12457 Filed 6–15–17; 8:45 am] the Commission’s Public Reference
BILLING CODE 8011–01–P
Room.
Electronic Comments
• Use the Commission’s Internet 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
comment form (http://www.sec.gov/ 3 15 U.S.C. 78s(b)(3)(A).
rules/sro.shtml); or 4 17 CFR 240.19b–4(f)(6)(iii).
• Send an email to rule-comments@ 5 The rules of EDGX Options, including rules
sec.gov. Please include File Number SR– applicable to EDGX Options’ participation in the
sradovich on DSK3GMQ082PROD with NOTICES
NYSE–2017–28 on the subject line. Penny Pilot, were approved on August 7, 2015. See
Securities Exchange Act Release No. 75650 (August
7, 2015), 80 FR 48600 (August 13, 2015) (SR–
16 For purposes only of waiving the 30-day
EDGX–2015–18). EDGX Options commenced
operative delay, the Commission has also operations on November 2, 2015. The Penny Pilot
considered the proposed rule’s impact on was extended for EDGX Options through June 30,
efficiency, competition, and capital formation. See 2017. See Securities Exchange Act Release No.
15 U.S.C. 78c(f). 79222 (November 2, 2016), 81 FR 78673 (November
17 15 U.S.C. 78s(b)(2)(B). 18 17 CFR 200.30–3(a)(12). 8, 2016) (SR–BatsEDGX–2016–71)[sic].
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![Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Notices 27743
Paper Comments Rule 15c2–5, SEC File No. 270–195 ; OMB cost per hour is $57.00 for clerical
Control No. 3235–0198. labor,4 resulting in a total internal
• Send paper comments in triplicate
Notice is hereby given that pursuant compliance cost of $34,200.5 These
to Secretary, Securities and Exchange
to the Paperwork Reduction Act of 1995 reflect internal labor costs; there are no
Commission, 100 F Street NE.,
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the external labor, capital, or start-up costs.
Washington, DC 20549–1090.
Securities and Exchange Commission Written comments are invited on: (a)
All submissions should refer to File No. (‘‘Commission’’) is soliciting comments Whether the proposed collection of
SR–BatsEDGX–2017–28. This file on the existing collection of information information is necessary for the proper
number should be included on the provided for in Rule 15c2–5 (17 CFR performance of the functions of the
subject line if email is used. To help the 240.15c2–5) under the Securities agency, including whether the
Commission process and review your Exchange Act of 1934 (15 U.S.C. 78a et information will have practical utility;
comments more efficiently, please use seq.) (‘‘Exchange Act’’). The (b) the accuracy of the agency’s estimate
only one method. The Commission will Commission plans to submit this of the burden of the collection of
post all comments on the Commission’s existing collection of information to the information; (c) ways to enhance the
Internet Web site (http://www.sec.gov/ Office of Management and Budget quality, utility, and clarity of the
rules/sro.shtml). Copies of the (‘‘OMB’’) for extension and approval. information collected; and (d) ways to
submission, all subsequent Rule 15c2–5 prohibits a broker-dealer minimize the burden of the collection of
amendments, all written statements from arranging or extending certain information on respondents, including
with respect to the proposed rule loans to persons in connection with the through the use of automated collection
change that are filed with the offer or sale of securities unless, before techniques or other forms of information
Commission, and all written any element of the transaction is entered technology. Consideration will be given
communications relating to the into, the broker-dealer: (1) Delivers to to comments and suggestions submitted
proposed rule change between the the person a written statement in writing within 60 days of this
Commission and any person, other than containing the exact nature and extent publication.
those that may be withheld from the of the person’s obligations under the An agency may not conduct or
public in accordance with the loan arrangement; the risks and sponsor, and a person is not required to
provisions of 5 U.S.C. 552, will be disadvantages of the loan arrangement; respond to, a collection of information
available for Web site viewing and and all commissions, discounts, and under the PRA unless it displays a
printing in the Commission’s Public other remuneration received and to be currently valid OMB control number.
Reference Room, 100 F Street NE., received in connection with the Please direct your written comments
Washington, DC 20549, on official transaction by the broker-dealer or to: Pamela Dyson, Director/Chief
business days between the hours of certain related persons (unless the Information Officer, Securities and
10:00 a.m. and 3:00 p.m. Copies of such person receives certain materials from Exchange Commission, c/o Remi Pavlik-
filing will also be available for the lender or broker-dealer which Simon, 100 F Street NE., Washington,
inspection and copying at the principal contain the required information); and DC 20549, or send an email to: PRA_
office of the Exchange. All comments (2) obtains from the person information Mailbox@sec.gov.
received will be posted without change; on the person’s financial situation and Dated: June 12, 2017.
the Commission does not edit personal needs, reasonably determines that the
identifying information from Eduardo A. Aleman,
transaction is suitable for the person,
submissions. You should submit only Assistant Secretary.
and retains on file and makes available
information that you wish to make to the person on request a written [FR Doc. 2017–12492 Filed 6–15–17; 8:45 am]
available publicly. All submissions statement setting forth the broker- BILLING CODE 8011–01–P
should refer to File No. SR–BatsEDGX– dealer’s basis for determining that the
2017–28 and should be submitted on or transaction was suitable. The collection
before July 7, 2017. SECURITIES AND EXCHANGE
of information required by Rule 15c2–5
COMMISSION
For the Commission, by the Division of is necessary to execute the
Trading and Markets, pursuant to delegated Commission’s mandate under the
authority.14 Exchange Act to prevent fraudulent, [Release No. 34–80909; File No. SR–MIAX–
Eduardo A. Aleman, manipulative, and deceptive acts and 2017–28]
Assistant Secretary. practices by broker-dealers.
Self-Regulatory Organizations: Notice
[FR Doc. 2017–12458 Filed 6–15–17; 8:45 am] The Commission estimates that there
of Filing and Immediate Effectiveness
BILLING CODE 8011–01–P are approximately 50 respondents that
of a Proposed Rule Change by Miami
require an aggregate total of 600 hours
International Securities Exchange, LLC
to comply with Rule 15c2–5.1 Each of
To Implement an Equity Rights
SECURITIES AND EXCHANGE these approximately 50 registered
Program
COMMISSION broker-dealers makes an estimated six
annual responses, for an aggregate total June 12, 2017.
Proposed Collection; Comment of 300 responses per year.2 Each Pursuant to the provisions of Section
Request response takes approximately two hours 19(b)(1) of the Securities Exchange Act
to complete. Thus, the total compliance of 1934 (‘‘Act’’) 1 and Rule 19b–4
Upon Written Request, Copies Available burden per year is 600 burden hours.3
sradovich on DSK3GMQ082PROD with NOTICES
From: Securities and Exchange The approximate internal compliance 4 Cost per hour for a clerk is from SIFMA’s Office
Commission, Office of FOIA Services,
Salaries in the Securities Industry 2013, modified
100 F Street NE., 1 50 respondents × 6 responses per year × 2 hours by Commission staff to account for an 1800-hour
Washington, DC 20549–2736. per response = 600 hours per year. work-year and multiplied by 2.93 to account for
2 50 respondents × 6 responses per year = 300 bonuses, firm size, employee benefits and overhead.
Extension: responses per year. 5 600 hours per year × $57.00 per hour = $34,200
3 300 responses per year × 2 hours per response per year.
14 17 CFR 200.30–3(a)(12). = 600 hours per year. 1 15 U.S.C. 78s(b)(1).
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Document Created: 2017-06-16 00:52:30
Document Modified: 2017-06-16 00:52:30
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 27741 |
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