82 FR 27917 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BZX Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 116 (June 19, 2017)
Federal Register Volume 82, Issue 116 (June 19, 2017)
| Page Range | 27917-27919 | |
| FR Document | 2017-12584 |
[Federal Register Volume 82, Number 116 (Monday, June 19, 2017)] [Notices] [Pages 27917-27919] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12584] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80912; File No. SR-BatsBZX-2017-42] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BZX Exchange, Inc. June 13, 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 1, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the fee schedule applicable to Members \5\ and non-Members of the Exchange pursuant to BZX Rules 15.1(a) and (c). --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.bats.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its fee schedule applicable to its equities trading platform (``BZX Equities'') to: (i) Modify the rates associated with fee codes AA, BJ and RA; (ii) adopt new fee code IX; and (iii) increase the condition necessary to qualify for the enhanced rebate provided by the Step-Up tier under footnote 2. The Exchange notes that Bats EDGA Exchange, Inc. (``EDGA'') is implementing certain pricing changes effective June 1, 2017, including modification of various fees and rebates to add and remove liquidity with a displayed or IOC order to a flat [[Page 27918]] fee of $0.0003 per share to add or remove liquidity with a displayed or IOC order.\6\ The proposed changes to AA, BJ, and RA are proposed in light of these changes. --------------------------------------------------------------------------- \6\ See Press Release, Bats Announces Fee Overhaul of EDGA Equities Exchange (May 30, 2017), available at http://ir.cboe.com/press-releases/2017/05-30-2017.aspx. --------------------------------------------------------------------------- Fee Code AA The Exchange proposes to modify the rate associated with orders yielding fee code AA, which results from an order routed to EDGA using ALLB routing strategy,\7\ from a $0.0002 per share rebate to a fee of $0.0003 per share for securities priced at or above $1.00. The Exchange does not propose to modify the rate for orders yielding fee code AA for securities priced below $1.00, which are currently not charged a fee nor provided a rebate. --------------------------------------------------------------------------- \7\ ALLB is a routing option under which the order checks the System for available shares and is then sent to the Bats BYX Exchange, Inc. (``BYX''), EDGA, and Bats EDGX Exchange, Inc. (``EDGX'' collectively with the Exchange, BYX, and EDGA, the ``BGM Affiliated Exchanges''). See the Exchange's routing strategies available at http://cdn.batstrading.com/resources/features/bats_exchange_routing-strategies.pdf. See also Exchange Rule 11.13(b)(3). --------------------------------------------------------------------------- Fee Code BJ The Exchange proposes to modify the rate associated with orders yielding fee code BJ, which result from an order routed to EDGA using TRIM or TRIM2 routing strategies,\8\ from a rebate of $0.0002 per share to a fee of $0.0003 per share for all securities (i.e., those priced at or above $1.00 and those priced below $1.00). --------------------------------------------------------------------------- \8\ The TRIM and TRIM2 routing strategies focus on seeking execution of orders while minimizing execution costs by routing only to certain low cost execution venues on the Exchange's System routing table. Id. --------------------------------------------------------------------------- Fee Code RA The Exchange proposes to decrease the fee associated with orders yielding fee code RA, which results from an order routed to EDGA which adds liquidity, from a fee of $0.0005 per share to a fee of $0.0003 per share for securities priced at or above $1.00. The Exchange does not propose to modify the rate for orders yielding fee code RA for securities priced below $1.00, which are currently not charged a fee nor provided a rebate. Fee Code IX The Exchange proposes to adopt new fee code IX, which would be appended to all orders that are routed to the Investors Exchange, Inc. (``IEX'') using the using TRIM or TRIM2 routing strategies. Orders yielding fee code IX will be charged a fee of $0.0010 per share for all securities (i.e., those priced at or above $1.00 and those priced below $1.00). The Exchange notes that it has not previously included IEX on the routing tables for TRIM and TRIM2 but plans to do so effective June 1, 2017, and thus, that the proposed change is necessary to account for executions at IEX through such routing strategies. Single MPID Investor Tier The Exchange currently offers two Single MPID Investor Tiers under footnote 4, which provides an enhanced rebate of $0.0031 or $0.0027 per share for qualifying orders which yield fee codes B,\9\ V,\10\ or Y.\11\ The distinction between the tiers under footnote 4 and other tiers offered by the Exchange, is that the volume measured to determine whether a Member qualifies is performed on an MPID by MPID basis. The Exchange proposes to modify the criteria necessary to achieve the Step- Up Add Tier as described below. --------------------------------------------------------------------------- \9\ Fee code B is appended to displayed orders which add liquidity to Tape B and is provided a rebate of $0.0025 per share. \10\ Fee code V is appended to displayed orders which add liquidity to Tape A and is provided a rebate of $0.0020 per share. \11\ Fee code Y is appended to displayed orders which add liquidity to Tape C and is provided a rebate of $0.0020 per share. --------------------------------------------------------------------------- Currently, under the Step-Up Add Tier a Member may receive an enhanced rebate of $0.0027 per share where the MPID has a Step-Up ADAV \12\ from November 2016, greater than or equal to 500,000 shares. As amended a Member may receive an enhanced rebate of $0.0027 per share where the MPID has a Step-Up ADAV from November 2016, greater than or equal to 750,000 shares. --------------------------------------------------------------------------- \12\ ``Step-Up ADAV'' means ADAV in the relevant baseline month subtracted from current ADAV. See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/bzx/. --------------------------------------------------------------------------- Implementation Date The Exchange proposes to implement the above changes to its fee schedule on June 1, 2017. 2. Statutory Basis The Exchange believes that the proposed rule changes are consistent with the objectives of Section 6 of the Act,\13\ in general, and furthers the objectives of Section 6(b)(4),\14\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange also notes that it operates in a highly- competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. Furthermore, the Exchange notes that routing through the Exchange's affiliate, Bats Trading, is voluntary. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. \14\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Modification of the MPID Investor Step-Up Add Tier The Exchange believes that the proposed modification to the tiered pricing structure is reasonable, fair and equitable, and non- discriminatory. The Exchange operates in a highly competitive market in which market participants may readily send order flow to many competing venues if they deem fees at the Exchange to be excessive or incentives provided to be insufficient. The proposed structure remains intended to attract order flow to the Exchange by offering market participants a competitive pricing structure. The Exchange believes it is reasonable to offer and incrementally modify incentives intended to help to contribute to the growth of the Exchange. Volume-based pricing such as that proposed herein have been widely adopted by exchanges, including the Exchange, and are equitable because they are open to all Members on an equal basis and provide additional benefits or discounts that are reasonably related to: (i) The value to an exchange's market quality; (ii) associated higher levels of market activity, such as higher levels of liquidity provisions and/or growth patterns; and (iii) introduction of higher volumes of orders into the price and volume discovery processes. The proposed modification of the Single MPID Step-Up Add Tier reinforces the purpose of the Single MPID Investor Tier by incentivizing Members to send additionally higher level of orders to the Exchange than was previously required. By applying the tier on a single MPID rather than across a Member's entire trading activity, the Exchange is also allowing more Members to potentially receive the enhanced rebates for their trading activity related to liquidity provision. Thus, the Exchange believes that the proposed modification to the tiered pricing structure under footnote 4 is a reasonable, equitable, and not an unfairly discriminatory allocation of fees and rebates because it will provide Members with an incentive to reach a higher thresholds on the Exchange by contributing a meaningful amount of order flow. The proposed modification is non-discriminatory because it applies and is available to all Members. [[Page 27919]] Fee Codes AA, BJ, and RA As noted above, EDGA is implementing certain pricing changes effective June 1, 2017, including modification of various fees and rebates to and remove liquidity with a displayed or IOC order to a flat fee of $0.0003 per share to add or remove liquidity with a displayed or IOC order.\15\ The changes to fee codes AA, BJ, and RA are proposed in light of these changes and reflect a pass-through of the pricing provided by EDGA. As the pricing in securities priced at or above $1.00 reflects the same pricing a Member would receive for participation on EDGA directly and the pricing in securities priced below $1.00 is based on the current pricing model applied by the Exchange, the Exchange believes the proposed fees are reasonable and equitably allocated. The Exchange further believes the proposed fees are non-discriminatory because they apply uniformly to all Members. --------------------------------------------------------------------------- \15\ See supra, note 6. --------------------------------------------------------------------------- Fee Code IX As of August 19, 2016, IEX began charging a fee of $0.0009 per share for orders which remove liquidity against non-displayed orders and no fee for orders that remove liquidity against displayed order.\16\ Because the Exchange is not be able to control whether the order it routes to IEX executes against displayed or non-displayed liquidity, it therefore, believes it is equitable and reasonable to charge a fee for orders that yield fee code IX based on IEX's rates for removing non-displayed interest. The Exchange further believes that its proposal to charge a fee of $0.0010 per share is equitable and reasonable because it accounts for the prices charged by IEX plus the additional operation expenses that would be incurred by the Exchange in routing orders to IEX. Furthermore, the Exchange notes that routing through Bats Trading is voluntary and Members may utilize other avenues to route orders to IEX, such as connecting to IEX directly. Lastly, the Exchange also believes that the proposed fee code is non-discriminatory because it applies uniformly to all Members. --------------------------------------------------------------------------- \16\ See IEX fee schedule available at https://iextrading.com/trading/#fee-schedule (effective August 19, 2016). See also IEX Trading Alert #2016-036, Investors Exchange Fee Schedule Effective August 19, 2016, available at https://iextrading.com/trading/alerts/2016/036/. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that any of the proposed changes to the Exchange's routing pricing burden competition, as they are based on the pricing on other venues. Similarly, the Exchange does not believe that the proposed change to the Exchange's tiered pricing structure burden competition, but instead, that they enhance competition as they are intended to increase the competitiveness of BZX by modifying pricing incentives in order to attract order flow and incentivize participants to increase their participation on the Exchange. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee structures to be unreasonable or excessive. The Exchange does not believe the proposed amendments would burden intramarket competition as they would be available to all Members uniformly. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 thereunder.\18\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BatsBZX-2017-42 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-BatsBZX-2017-42. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BatsBZX-2017-42, and should be submitted on or before July 10, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-12584 Filed 6-16-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices 27917
and provisions of the Act. Applicants of its shares through asset-based service one establishing or changing a member
request an exemption under section 6(c) and/or distribution fees. due, fee, or other charge imposed by the
from sections 18(a)(2), 18(c) and 18(i) to 3. For the reasons stated above, Exchange under Section 19(b)(3)(A)(ii)
permit the Fund to issue multiple applicants submit that the exemptions of the Act 3 and Rule 19b–4(f)(2)
classes of Shares. requested under section 6(c) are thereunder,4 which renders the
5. Applicants submit that the necessary and appropriate in the public proposed rule change effective upon
proposed allocation of expenses relating interest and are consistent with the filing with the Commission. The
to distribution and voting rights among protection of investors and the purposes Commission is publishing this notice to
multiple classes is equitable and will fairly intended by the policy and solicit comments on the proposed rule
not discriminate against any group or provisions of the Act. Applicants further change from interested persons.
class of shareholders. Applicants submit submit that the Funds’ imposition of
asset-based service and/or distribution I. Self-Regulatory Organization’s
that the proposed arrangements would Statement of the Terms of Substance of
permit the Fund to facilitate the fees is consistent with the provisions,
policies and purposes of the Act and the Proposed Rule Change
distribution of its Shares and provide
investors with a broader choice of does not involve participation on a basis The Exchange filed a proposal to
shareholder options. Applicants assert different from or less advantageous than amend the fee schedule applicable to
that the proposed closed-end that of other participants. Members 5 and non-Members of the
investment company multiple class Applicants’ Condition Exchange pursuant to BZX Rules 15.1(a)
structure does not raise the concerns and (c).
The Fund agrees that any order The text of the proposed rule change
underlying section 18 of the Act to any
granting the requested relief will be is available at the Exchange’s Web site
greater degree than open-end subject to the following condition:
investment companies’ multiple class at www.bats.com, at the principal office
Applicants will comply with the of the Exchange, and at the
structures that are permitted by rule provisions of rules 6c–10, 12b–1, 17d–
18f–3 under the Act. Applicants state Commission’s Public Reference Room.
3, 18f–3, 22d–1, and where applicable,
that the Fund will comply with the 11a–3 under the Act, as amended from II. Self-Regulatory Organization’s
provisions of rule 18f–3 as if it were an time to time or replaced, as if those Statement of the Purpose of, and
open-end investment company. rules applied to closed-end management Statutory Basis for, the Proposed Rule
Asset-Based Service and/or Distribution investment companies, and will comply Change
Fees with FINRA Rule 2341, as amended In its filing with the Commission, the
from time to time, as if that rule applied Exchange included statements
1. Section 17(d) of the Act and rule to all closed-end management
17d–1 under the Act prohibit an concerning the purpose of and basis for
investment companies. the proposed rule change and discussed
affiliated person of a registered
investment company or an affiliated For the Commission, by the Division of any comments it received on the
person of such person, acting as
Investment Management, under delegated proposed rule change. The text of these
authority. statements may be examined at the
principal, from participating in or
Eduardo A. Aleman, places specified in Item IV below. The
effecting any transaction in connection
with any joint enterprise or joint Assistant Secretary. Exchange has prepared summaries, set
arrangement in which the investment [FR Doc. 2017–12590 Filed 6–16–17; 8:45 am] forth in Sections A, B, and C below, of
company participates unless the BILLING CODE 8011–01–P the most significant parts of such
Commission issues an order permitting statements.
the transaction. In reviewing A. Self-Regulatory Organization’s
applications submitted under section SECURITIES AND EXCHANGE
Statement of the Purpose of, and the
17(d) and rule 17d–1, the Commission COMMISSION
Statutory Basis for, the Proposed Rule
considers whether the participation of [Release No. 34–80912; File No. SR– Change
the investment company in a joint BatsBZX–2017–42]
enterprise or joint arrangement is 1. Purpose
consistent with the provisions, policies Self-Regulatory Organizations; Bats The Exchange proposes to amend its
and purposes of the Act, and the extent BZX Exchange, Inc.; Notice of Filing fee schedule applicable to its equities
to which the participation is on a basis and Immediate Effectiveness of a trading platform (‘‘BZX Equities’’) to: (i)
different from or less advantageous than Proposed Rule Change Related to Fees Modify the rates associated with fee
that of other participants. for Use on Bats BZX Exchange, Inc. codes AA, BJ and RA; (ii) adopt new fee
2. Rule 17d–3 under the Act provides June 13, 2017. code IX; and (iii) increase the condition
an exemption from section 17(d) and Pursuant to Section 19(b)(1) of the necessary to qualify for the enhanced
rule 17d–1 to permit open-end Securities Exchange Act of 1934 (the rebate provided by the Step-Up tier
investment companies to enter into ‘‘Act’’),1 and Rule 19b–4 thereunder,2 under footnote 2. The Exchange notes
distribution arrangements pursuant to notice is hereby given that on June 1, that Bats EDGA Exchange, Inc.
rule 12b–1 under the Act. Applicants 2017, Bats BZX Exchange, Inc. (the (‘‘EDGA’’) is implementing certain
request an order under section 17(d) and ‘‘Exchange’’ or ‘‘BZX’’) filed with the pricing changes effective June 1, 2017,
including modification of various fees
asabaliauskas on DSKBBXCHB2PROD with NOTICES
rule 17d–1 under the Act to permit the Securities and Exchange Commission
Fund to impose asset-based service and/ (‘‘Commission’’) the proposed rule and rebates to add and remove liquidity
or distribution fees. Applicants have change as described in Items I, II and III with a displayed or IOC order to a flat
agreed to comply with rules 12b–1 and below, which Items have been prepared
3 15 U.S.C. 78s(b)(3)(A)(ii).
17d–3 as if those rules applied to by the Exchange. The Exchange has 4 17 CFR 240.19b–4(f)(2).
closed-end investment companies, designated the proposed rule change as 5 The term ‘‘Member’’ is defined as ‘‘any
which they believe will resolve any registered broker or dealer that has been admitted
concerns that might arise in connection 1 15 U.S.C. 78s(b)(1). to membership in the Exchange.’’ See Exchange
with a Fund financing the distribution 2 17 CFR 240.19b–4. Rule 1.5(n).
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![Federal Register / Vol. 82, No. 116 / Monday, June 19, 2017 / Notices 27919
Fee Codes AA, BJ, and RA necessary or appropriate in furtherance Electronic Comments
As noted above, EDGA is of the purposes of the Act. The
Exchange does not believe that any of • Use the Commission’s Internet
implementing certain pricing changes
the proposed changes to the Exchange’s comment form (http://www.sec.gov/
effective June 1, 2017, including
routing pricing burden competition, as rules/sro.shtml); or
modification of various fees and rebates
to and remove liquidity with a they are based on the pricing on other • Send an email to rule-comments@
displayed or IOC order to a flat fee of venues. Similarly, the Exchange does sec.gov. Please include File No. SR–
$0.0003 per share to add or remove not believe that the proposed change to BatsBZX–2017–42 on the subject line.
liquidity with a displayed or IOC the Exchange’s tiered pricing structure
Paper Comments
order.15 The changes to fee codes AA, burden competition, but instead, that
BJ, and RA are proposed in light of these they enhance competition as they are • Send paper comments in triplicate
changes and reflect a pass-through of intended to increase the to Secretary, Securities and Exchange
the pricing provided by EDGA. As the competitiveness of BZX by modifying Commission, 100 F Street NE.,
pricing in securities priced at or above pricing incentives in order to attract Washington, DC 20549–1090.
$1.00 reflects the same pricing a order flow and incentivize participants
Member would receive for participation All submissions should refer to File No.
to increase their participation on the
on EDGA directly and the pricing in SR–BatsBZX–2017–42. This file number
Exchange. The Exchange notes that it
securities priced below $1.00 is based should be included on the subject line
operates in a highly competitive market
on the current pricing model applied by if email is used. To help the
the Exchange, the Exchange believes the in which market participants can
Commission process and review your
proposed fees are reasonable and readily direct order flow to competing
comments more efficiently, please use
equitably allocated. The Exchange venues if they deem fee structures to be
only one method. The Commission will
further believes the proposed fees are unreasonable or excessive. The
post all comments on the Commission’s
non-discriminatory because they apply Exchange does not believe the proposed
Internet Web site (http://www.sec.gov/
uniformly to all Members. amendments would burden intramarket
rules/sro.shtml). Copies of the
competition as they would be available
Fee Code IX submission, all subsequent
to all Members uniformly.
As of August 19, 2016, IEX began amendments, all written statements
charging a fee of $0.0009 per share for C. Self-Regulatory Organization’s with respect to the proposed rule
orders which remove liquidity against Statement on Comments on the change that are filed with the
non-displayed orders and no fee for Proposed Rule Change Received From Commission, and all written
orders that remove liquidity against Members, Participants, or Others communications relating to the
displayed order.16 Because the proposed rule change between the
Exchange is not be able to control The Exchange has not solicited, and Commission and any person, other than
whether the order it routes to IEX does not intend to solicit, comments on those that may be withheld from the
executes against displayed or non- this proposed rule change. The public in accordance with the
displayed liquidity, it therefore, believes Exchange has not received any written provisions of 5 U.S.C. 552, will be
it is equitable and reasonable to charge comments from Members or other available for Web site viewing and
a fee for orders that yield fee code IX interested parties. printing in the Commission’s Public
based on IEX’s rates for removing non- III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
displayed interest. The Exchange further Washington, DC 20549, on official
Proposed Rule Change and Timing for
believes that its proposal to charge a fee business days between the hours of
of $0.0010 per share is equitable and Commission Action
10:00 a.m. and 3:00 p.m. Copies of the
reasonable because it accounts for the The foregoing rule change has become filing also will be available for
prices charged by IEX plus the effective pursuant to Section 19(b)(3)(A)
additional operation expenses that inspection and copying at the principal
of the Act 17 and paragraph (f) of Rule office of the Exchange. All comments
would be incurred by the Exchange in 19b–4 thereunder.18 At any time within
routing orders to IEX. Furthermore, the received will be posted without change;
60 days of the filing of the proposed rule the Commission does not edit personal
Exchange notes that routing through
change, the Commission summarily may identifying information from
Bats Trading is voluntary and Members
may utilize other avenues to route temporarily suspend such rule change if submissions. You should submit only
orders to IEX, such as connecting to IEX it appears to the Commission that such information that you wish to make
directly. Lastly, the Exchange also action is necessary or appropriate in the available publicly. All submissions
believes that the proposed fee code is public interest, for the protection of should refer to File No. SR–BatsBZX–
non-discriminatory because it applies investors, or otherwise in furtherance of 2017–42, and should be submitted on or
uniformly to all Members. the purposes of the Act. before July 10, 2017.
B. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Burden on Competition Trading and Markets, pursuant to delegated
Interested persons are invited to authority.19
The Exchange does not believe that submit written data, views, and
asabaliauskas on DSKBBXCHB2PROD with NOTICES
the proposed rule change will impose Eduardo A. Aleman,
arguments concerning the foregoing,
any burden on competition not Assistant Secretary.
including whether the proposed rule
[FR Doc. 2017–12584 Filed 6–16–17; 8:45 am]
15 See supra, note 6.
change is consistent with the Act.
BILLING CODE 8011–01–P
16 See IEX fee schedule available at https:// Comments may be submitted by any of
iextrading.com/trading/#fee-schedule (effective the following methods:
August 19, 2016). See also IEX Trading Alert
#2016–036, Investors Exchange Fee Schedule
17 15 U.S.C. 78s(b)(3)(A).
Effective August 19, 2016, available at https://
iextrading.com/trading/alerts/2016/036/. 18 17 CFR 240.19b–4(f). 19 17 CFR 200.30–3(a)(12).
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Document Created: 2017-06-17 01:48:08
Document Modified: 2017-06-17 01:48:08
| 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 27917 |
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