82_FR_29045 82 FR 28924 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees for Use on Bats EDGX Exchange, Inc.

82 FR 28924 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees for Use on Bats EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 121 (June 26, 2017)

Page Range28924-28927
FR Document2017-13229

Federal Register, Volume 82 Issue 121 (Monday, June 26, 2017) 
[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]
[Notices]
[Pages 28924-28927]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13229]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80977; File No. SR-BatsEDGX-2017-30]


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

June 20, 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 12, 2017, Bats EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member

[[Page 28925]]

due, fee, or other charge imposed by the Exchange under Section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposed rule change effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-Members of the Exchange pursuant to EDGX Rules 
15.1(a) and (c).
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.bats.com, at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its fee schedule applicable to its 
equities trading platform (``EDGX Equities'') to: (i) Modify the rates 
associated with fee codes AA, RA and RR; and (ii) decrease the 
condition necessary to qualify for the enhanced rebate provided 
pursuant to the Investor Depth Tier under footnote 1. 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 fee of $0.0003 per share to add or remove 
liquidity with a displayed or IOC order.\6\ The proposed changes to AA, 
RA, and RR are proposed in light of these changes.
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    \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.
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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.
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    \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 BZX Exchange, Inc. (``BZX'' 
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 11.11(g)(3).
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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 RR
    The Exchange proposes to decrease the rate associated with orders 
yielding fee RR, which result from an order routed to EDGA using the 
Destination Specific routing strategy (also known as ``DIRC''),\8\ from 
a rebate of $0.0002 per share to a fee of $0.0003 per share for all 
securities priced at or above $1.00. The Exchange does not propose to 
modify the rate for securities priced below $1.00.
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    \8\ See the Exchange's routing strategies available at http://cdn.batstrading.com/resources/features/bats_exchange_routing-strategies.pdf. See also Rule 11.11(g)(14).
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Single MPID Investor Tier
    The Exchange currently offers nine Add Volume Tiers under footnote 
4, which provide enhanced rebates ranging from $0.0025 to $0.0032 per 
share for qualifying orders which yield fee codes B,\9\ V,\10\ Y,\11\ 3 
\12\ and 4.\13\ The Exchange proposes to modify the criteria necessary 
to achieve the Investor Depth Tier as described below.
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    \9\ Fee code B is appended to displayed orders which add 
liquidity to Tape B and is provided a rebate of $0.0020 per share. 
See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/edgx/.
    \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. 
Id.
    \12\ Fee code 3 is appended to displayed orders which add 
liquidity to Tape A or C during the post-market or pre-market 
sessions and is provided a rebate of $0.0020 per share. Id.
    \13\ Fee code 4 is appended to displayed orders which add 
liquidity to Tape B during the post-market or pre-market sessions 
and is provided a rebate of $0.0020 per share. Id.
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     Currently, under the Investor Depth Tier a Member may be 
provided an enhanced rebate of $0.0033 per share where that Member: (i) 
Adds an ADV \14\ greater than or equal to 0.15% of the TCV; \15\ (ii) 
has an ``added liquidity'' as a percentage of ``added plus removed 
liquidity'' greater than or equal to 85%; and (iii) adds an ADV greater 
than or equal to 400,000 shares as non-displayed orders that yield fee 
code HA,\16\ HI,\17\ and/or MM.\18\ As amended, under the Investor 
Depth Tier a Member may be provided an enhanced rebate of $0.0033 per 
share where that Member: (i) Adds an ADV greater than or equal to 0.12% 
of the TCV; (ii) has an ``added liquidity'' as a percentage of ``added 
plus removed liquidity'' greater than or equal to 85%; and (iii) adds 
an ADV greater than or equal to 400,000 shares as non-displayed orders 
that yield fee code HA, HI, and/or MM.
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    \14\ ``ADV'' means average daily volume calculated as the number 
of shares added to, removed from, or routed by, the Exchange, or any 
combination or subset thereof, per day. ADV is calculated on a 
monthly basis. Id.
    \15\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges and trade reporting facilities to a 
consolidated transaction reporting plan for the month for which the 
fees apply. See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/edgx/.
    \16\ Fee code HA is appended to non-displayed orders which add 
liquidity on the Exchange and are provided an enhanced rebate of 
$0.0015 for securities priced at or above $1.00, and $0.0003 for 
securities priced below $1.00. Id.
    \17\ Fee code HI is appended to non-displayed orders which 
receive price improvement and add liquidity on the Exchange and are 
neither charged a fee nor provided a rebate. Id.
    \18\ Fee code MM is appended to non-displayed orders which add 
liquidity on the Exchange using Mid-Point Peg and are provided an 
enhanced rebate of $0.0015 for securities priced at or above $1.00, 
and $0.0003 for securities priced below $1.00. Id.

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[[Page 28926]]

Implementation Date
    The Exchange proposes to implement the above changes to its fee 
schedule immediately.\19\
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    \19\ The Exchange initially submitted the proposed fee change on 
June 1, 2017. (SR-Bats EDGX-2017-27). On, June 12, 2017 the Exchange 
withdrew SR-Bats EDGX-2017-27 and submitted this filing.
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2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with the objectives of Section 6 of the Act,\20\ in general, and 
furthers the objectives of Section 6(b)(4),\21\ 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. The proposed 
rule changes reflect a competitive pricing structure designed to 
incentivize market participants to direct their order flow to the 
Exchange.
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    \20\ 15 U.S.C. 78f.
    \21\ 15 U.S.C. 78f(b)(4).
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Modification of the Investor Depth Add Tier
    The Exchange believes that the proposed modifications to the tiered 
pricing structure are 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.
Fee Codes AA, RA, and RR
    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.\22\ The changes to fee codes AA, RA, and RR 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.
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    \22\ See supra, note 4.
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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 EDGX 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 proposed changes are generally intended 
to enhance the rebates for liquidity added to the Exchange, which is 
intended to draw additional liquidity to the Exchange. 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 \23\ and paragraph (f) of Rule 19b-4 
thereunder.\24\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BatsEDGX-2017-30 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BatsEDGX-2017-30. 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

[[Page 28927]]

Commission and any person, other than those that may be withheld from 
the public in accordance with the provisions of 5 U.S.C. 552, will be 
available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549, on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
the filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File No. SR-BatsEDGX-2017-30, and should be submitted on or before July 
17, 2017.
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    \25\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13229 Filed 6-23-17; 8:45 am]
 BILLING CODE 8011-01-P

28924 Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Notices seek to further incentives Members to fees would serve to impair an Internet Web site (http://www.sec.gov/ add liquidity to the Exchange. The exchange’s ability to compete for order rules/sro.shtml). Copies of the potential increase in posted liquidity flow and members rather than submission, all subsequent would serve to improve price discovery, burdening competition. The Exchange amendments, all written statements depth of liquidity, and overall execution believes that its proposal would not with respect to the proposed rule quality on the Exchange. The Exchange burden intramarket competition because change that are filed with the further believes that it is equitable and the proposed rate would apply Commission, and all written reasonable to charge no fee for orders uniformly to all Members. communications relating to the that yield fee code DT, which is proposed rule change between the appended to Non-Displayed orders that C. Self-Regulatory Organization’s Commission and any person, other than remove liquidity using MidPoint Statement on Comments on the those that may be withheld from the Discretionary Orders, as it is intended to Proposed Rule Change Received From public in accordance with the incentives the use of MidPoint Members, Participants, or Others provisions of 5 U.S.C. 552, will be Discretionary Orders and improve The Exchange has not solicited, and available for Web site viewing and liquidity at the midpoint of the NBBO. does not intend to solicit, comments on printing in the Commission’s Public Charging no fee for orders that yield fee this proposed rule change. The Reference Room, 100 F Street NE., code DT is designed to encourage the Exchange has not received any written Washington, DC 20549, on official posting of contra-side orders that add comments from members or other business days between the hours of liquidity at the midpoint of the NBBO interested parties. 10:00 a.m. and 3:00 p.m. Copies of the as such orders could receive increased filing also will be available for III. Date of Effectiveness of the execution opportunities thought the inspection and copying at the principal possible increase in entry of MidPoint Proposed Rule Change and Timing for office of the Exchange. All comments Discretionary Orders. Commission Action received will be posted without change; The modification and elimination of The foregoing rule change has become the Commission does not edit personal certain reduced fees via the current effective pursuant to Section 19(b)(3)(A) identifying information from tiered pricing model as proposed herein of the Act 24 and paragraph (f) of Rule submissions. You should submit only is also equitable and reasonable because 19b–4 thereunder.25 At any time within information that you wish to make it would aid in simplifying the fee 60 days of the filing of the proposed rule available publicly. All submissions schedule and result in all Member’s change, the Commission summarily may should refer to File No. SR-BatsEDGA– being charged the same rates for all temporarily suspend such rule change if 2017–18, and should be submitted on or transactions regardless of their monthly it appears to the Commission that such before July 17, 2017. volumes. The Exchange generally action is necessary or appropriate in the For the Commission, by the Division of believes that volume-based pricing public interest, for the protection of Trading and Markets, pursuant to delegated provides benefits or discounts that are investors, or otherwise in furtherance of authority.26 reasonably related to: (i) The value to an the purposes of the Act. Eduardo A. Aleman, exchange’s market quality; (ii) Assistant Secretary. associated higher levels of market IV. Solicitation of Comments [FR Doc. 2017–13228 Filed 6–23–17; 8:45 am] activity, such as higher levels of Interested persons are invited to BILLING CODE 8011–01–P liquidity provision and/or growth submit written data, views, and patterns; and (iii) the introduction of arguments concerning the foregoing, higher volumes of orders into the price including whether the proposed rule SECURITIES AND EXCHANGE and volume discovery processes. change is consistent with the Act. COMMISSION However, the elimination of the Comments may be submitted by any of Exchange’s current tiered pricing is the following methods: [Release No. 34–80977; File No. SR– consistent with the proposed fee model BatsEDGX–2017–30] which is designed to attract additional Electronic Comments • Use the Commission’s Internet Self-Regulatory Organizations; Bats order flow though low fees for both comment form (http://www.sec.gov/ EDGX Exchange, Inc.; Notice of Filing adding and removing liquidity. rules/sro.shtml); or and Immediate Effectiveness of a B. Self-Regulatory Organization’s • Send an email to rule-comments@ Proposed Rule Change to Fees for Use Statement on Burden on Competition sec.gov. Please include File No. SR- on Bats EDGX Exchange, Inc. This proposed rule change does not BatsEDGA–2017–18 on the subject line. June 20, 2017. impose any burden on competition that Pursuant to Section 19(b)(1) of the is not necessary or appropriate in Paper Comments Securities Exchange Act of 1934 (the furtherance of the purposes of the Act. • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange does not believe that this to Secretary, Securities and Exchange notice is hereby given that on June 12, change represents a significant Commission, 100 F Street NE., 2017, Bats EDGX Exchange, Inc. (the departure from previous pricing offered Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the by the Exchange’s competitors. The All submissions should refer to File No. Securities and Exchange Commission proposed rates would apply uniformly SR-BatsEDGA–2017–18. This file (‘‘Commission’’) the proposed rule to all Members, and Members may opt number should be included on the change as described in Items I, II and III to disfavor the Exchange’s pricing if sradovich on DSK3GMQ082PROD with NOTICES subject line if email is used. To help the below, which Items have been prepared they believe that alternatives offer them Commission process and review your by the Exchange. The Exchange has better value. Accordingly, the Exchange comments more efficiently, please use designated the proposed rule change as does not believe that the proposed only one method. The Commission will one establishing or changing a member changes will impair the ability of post all comments on the Commission’s Members or competing venues to 26 17 CFR 200.30–3(a)(12). maintain their competitive standing in 24 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). the financial markets. Further, excessive 25 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:04 Jun 23, 2017 Jkt 241001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\26JNN1.SGM 26JNN1

Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Notices 28925 due, fee, or other charge imposed by the liquidity with a displayed or IOC order.6 B,9 V,10 Y,11 3 12 and 4.13 The Exchange Exchange under Section 19(b)(3)(A)(ii) The proposed changes to AA, RA, and proposes to modify the criteria of the Act 3 and Rule 19b–4(f)(2) RR are proposed in light of these necessary to achieve the Investor Depth thereunder,4 which renders the changes. Tier as described below. proposed rule change effective upon • Currently, under the Investor Depth Fee Code AA filing with the Commission. The Tier a Member may be provided an Commission is publishing this notice to The Exchange proposes to modify the enhanced rebate of $0.0033 per share solicit comments on the proposed rule rate associated with orders yielding fee change from interested persons. where that Member: (i) Adds an ADV 14 code AA, which results from an order greater than or equal to 0.15% of the I. Self-Regulatory Organization’s routed to EDGA using ALLB routing strategy,7 from a $0.0002 per share TCV; 15 (ii) has an ‘‘added liquidity’’ as Statement of the Terms of Substance of a percentage of ‘‘added plus removed the Proposed Rule Change rebate to a fee of $0.0003 per share for securities priced at or above $1.00. The liquidity’’ greater than or equal to 85%; The Exchange filed a proposal to Exchange does not propose to modify and (iii) adds an ADV greater than or amend the fee schedule applicable to the rate for orders yielding fee code AA equal to 400,000 shares as non- Members 5 and non-Members of the for securities priced below $1.00, which displayed orders that yield fee code Exchange pursuant to EDGX Rules are currently not charged a fee nor HA,16 HI,17 and/or MM.18 As amended, 15.1(a) and (c). provided a rebate. under the Investor Depth Tier a Member The text of the proposed rule change may be provided an enhanced rebate of is available at the Exchange’s Web site Fee Code RA $0.0033 per share where that Member: at www.bats.com, at the principal office The Exchange proposes to decrease (i) Adds an ADV greater than or equal of the Exchange, and at the the fee associated with orders yielding to 0.12% of the TCV; (ii) has an ‘‘added Commission’s Public Reference Room. fee code RA, which results from an liquidity’’ as a percentage of ‘‘added II. Self-Regulatory Organization’s order routed to EDGA which adds plus removed liquidity’’ greater than or Statement of the Purpose of, and liquidity, from a fee of $0.0005 per share equal to 85%; and (iii) adds an ADV Statutory Basis for, the Proposed Rule to a fee of $0.0003 per share for greater than or equal to 400,000 shares Change securities priced at or above $1.00. The as non-displayed orders that yield fee Exchange does not propose to modify code HA, HI, and/or MM. In its filing with the Commission, the the rate for orders yielding fee code RA Exchange included statements for securities priced below $1.00, which 9 Fee code B is appended to displayed orders concerning the purpose of and basis for are currently not charged a fee nor which add liquidity to Tape B and is provided a the proposed rule change and discussed provided a rebate. rebate of $0.0020 per share. See the Exchange’s fee any comments it received on the schedule available at http://www.bats.com/us/ proposed rule change. The text of these Fee Code RR equities/membership/fee_schedule/edgx/. statements may be examined at the 10 Fee code V is appended to displayed orders The Exchange proposes to decrease places specified in Item IV below. The which add liquidity to Tape A and is provided a the rate associated with orders yielding rebate of $0.0020 per share. Exchange has prepared summaries, set fee RR, which result from an order 11 Fee code Y is appended to displayed orders forth in Sections A, B, and C below, of routed to EDGA using the Destination which add liquidity to Tape C and is provided a the most significant parts of such rebate of $0.0020 per share. Id. Specific routing strategy (also known as statements. 12 Fee code 3 is appended to displayed orders ‘‘DIRC’’),8 from a rebate of $0.0002 per which add liquidity to Tape A or C during the post- A. Self-Regulatory Organization’s share to a fee of $0.0003 per share for market or pre-market sessions and is provided a Statement of the Purpose of, and the all securities priced at or above $1.00. rebate of $0.0020 per share. Id. Statutory Basis for, the Proposed Rule The Exchange does not propose to 13 Fee code 4 is appended to displayed orders Change modify the rate for securities priced which add liquidity to Tape B during the post- 1. Purpose below $1.00. market or pre-market sessions and is provided a rebate of $0.0020 per share. Id. The Exchange proposes to amend its Single MPID Investor Tier 14 ‘‘ADV’’ means average daily volume calculated fee schedule applicable to its equities as the number of shares added to, removed from, The Exchange currently offers nine or routed by, the Exchange, or any combination or trading platform (‘‘EDGX Equities’’) to: Add Volume Tiers under footnote 4, subset thereof, per day. ADV is calculated on a (i) Modify the rates associated with fee which provide enhanced rebates ranging monthly basis. Id. codes AA, RA and RR; and (ii) decrease from $0.0025 to $0.0032 per share for 15 ‘‘TCV’’ means total consolidated volume the condition necessary to qualify for qualifying orders which yield fee codes calculated as the volume reported by all exchanges the enhanced rebate provided pursuant and trade reporting facilities to a consolidated transaction reporting plan for the month for which to the Investor Depth Tier under 6 See Press Release, Bats Announces Fee the fees apply. See the Exchange’s fee schedule footnote 1. The Exchange notes that Bats Overhaul of EDGA Equities Exchange (May 30, available at http://www.bats.com/us/equities/ EDGA Exchange, Inc. (‘‘EDGA’’) is 2017), available at http://ir.cboe.com/press- membership/fee_schedule/edgx/. implementing certain pricing changes releases/2017/05-30-2017.aspx. 16 Fee code HA is appended to non-displayed 7 ALLB is a routing option under which the order effective June 1, 2017, including checks the System for available shares and is then orders which add liquidity on the Exchange and are modification of various fees and rebates provided an enhanced rebate of $0.0015 for sent to the Bats BYX Exchange, Inc. (‘‘BYX’’), securities priced at or above $1.00, and $0.0003 for to add and remove liquidity with a EDGA, and Bats BZX Exchange, Inc. (‘‘BZX’’ securities priced below $1.00. Id. displayed or IOC order to a flat fee of collectively with the Exchange, BYX, and EDGA, sradovich on DSK3GMQ082PROD with NOTICES 17 Fee code HI is appended to non-displayed the ‘‘BGM Affiliated Exchanges’’). See the $0.0003 per share to add or remove Exchange’s routing strategies available at http:// orders which receive price improvement and add cdn.batstrading.com/resources/features/bats_ liquidity on the Exchange and are neither charged 3 15 U.S.C. 78s(b)(3)(A)(ii). exchange_routing-strategies.pdf. See also Exchange a fee nor provided a rebate. Id. 4 17 CFR 240.19b–4(f)(2). Rule 11.11(g)(3). 18 Fee code MM is appended to non-displayed 5 The term ‘‘Member’’ is defined as ‘‘any 8 See the Exchange’s routing strategies available orders which add liquidity on the Exchange using registered broker or dealer that has been admitted at http://cdn.batstrading.com/resources/features/ Mid-Point Peg and are provided an enhanced rebate to membership in the Exchange.’’ See Exchange bats_exchange_routing-strategies.pdf. See also Rule of $0.0015 for securities priced at or above $1.00, Rule 1.5(n). 11.11(g)(14). and $0.0003 for securities priced below $1.00. Id. 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28926 Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Notices Implementation Date Fee Codes AA, RA, and RR C. Self-Regulatory Organization’s The Exchange proposes to implement Statement on Comments on the As noted above, EDGA is Proposed Rule Change Received From the above changes to its fee schedule implementing certain pricing changes immediately.19 Members, Participants, or Others effective June 1, 2017, including The Exchange has not solicited, and 2. Statutory Basis modification of various fees and rebates does not intend to solicit, comments on The Exchange believes that the to and remove liquidity with a this proposed rule change. The proposed rule changes are consistent displayed or IOC order to a flat fee of Exchange has not received any written with the objectives of Section 6 of the $0.0003 per share to add or remove comments from Members or other Act,20 in general, and furthers the liquidity with a displayed or IOC interested parties. objectives of Section 6(b)(4),21 in order.22 The changes to fee codes AA, RA, and RR are proposed in light of III. Date of Effectiveness of the particular, as it is designed to provide these changes and reflect a pass-through Proposed Rule Change and Timing for for the equitable allocation of reasonable of the pricing provided by EDGA. As the Commission Action dues, fees and other charges among its Members and other persons using its pricing in securities priced at or above The foregoing rule change has become facilities. The Exchange also notes that $1.00 reflects the same pricing a effective pursuant to Section 19(b)(3)(A) it operates in a highly-competitive Member would receive for participation of the Act 23 and paragraph (f) of Rule market in which market participants can on EDGA directly and the pricing in 19b–4 thereunder.24 At any time within readily direct order flow to competing securities priced below $1.00 is based 60 days of the filing of the proposed rule venues if they deem fee levels at a on the current pricing model applied by change, the Commission summarily may particular venue to be excessive or temporarily suspend such rule change if the Exchange, the Exchange believes the incentives to be insufficient. The it appears to the Commission that such proposed fees are reasonable and proposed rule changes reflect a action is necessary or appropriate in the equitably allocated. The Exchange public interest, for the protection of competitive pricing structure designed further believes the proposed fees are to incentivize market participants to investors, or otherwise in furtherance of non-discriminatory because they apply the purposes of the Act. direct their order flow to the Exchange. uniformly to all Members. Modification of the Investor Depth Add IV. Solicitation of Comments B. Self-Regulatory Organization’s Tier Interested persons are invited to Statement on Burden on Competition submit written data, views, and The Exchange believes that the proposed modifications to the tiered The Exchange does not believe that arguments concerning the foregoing, pricing structure are reasonable, fair and the proposed rule change will impose including whether the proposed rule equitable, and non-discriminatory. The any burden on competition not change is consistent with the Act. Exchange operates in a highly necessary or appropriate in furtherance Comments may be submitted by any of competitive market in which market of the purposes of the Act. The the following methods: participants may readily send order Exchange does not believe that any of Electronic Comments flow to many competing venues if they the proposed changes to the Exchange’s • Use the Commission’s Internet deem fees at the Exchange to be routing pricing burden competition, as comment form (http://www.sec.gov/ excessive or incentives provided to be they are based on the pricing on other rules/sro.shtml); or insufficient. The proposed structure venues. Similarly, the Exchange does • Send an email to rule-comments@ remains intended to attract order flow to not believe that the proposed change to sec.gov. Please include File No. SR– the Exchange by offering market the Exchange’s tiered pricing structure BatsEDGX–2017–30 on the subject line. participants a competitive pricing burden competition, but instead, that structure. The Exchange believes it is Paper Comments they enhance competition as they are reasonable to offer and incrementally intended to increase the • Send paper comments in triplicate modify incentives intended to help to to Secretary, Securities and Exchange competitiveness of EDGX by modifying contribute to the growth of the Commission, 100 F Street NE., Exchange. pricing incentives in order to attract order flow and incentivize participants Washington, DC 20549–1090. Volume-based pricing such as that All submissions should refer to File No. proposed herein have been widely to increase their participation on the Exchange. The Exchange notes that it SR–BatsEDGX–2017–30. This file adopted by exchanges, including the number should be included on the Exchange, and are equitable because operates in a highly competitive market subject line if email is used. To help the they are open to all Members on an in which market participants can Commission process and review your equal basis and provide additional readily direct order flow to competing comments more efficiently, please use benefits or discounts that are reasonably venues if they deem fee structures to be only one method. The Commission will related to: (i) The value to an exchange’s unreasonable or excessive. The post all comments on the Commission’s market quality; (ii) associated higher proposed changes are generally Internet Web site (http://www.sec.gov/ levels of market activity, such as higher intended to enhance the rebates for rules/sro.shtml). Copies of the levels of liquidity provisions and/or liquidity added to the Exchange, which submission, all subsequent growth patterns; and (iii) introduction of is intended to draw additional liquidity amendments, all written statements higher volumes of orders into the price to the Exchange. The Exchange does not sradovich on DSK3GMQ082PROD with NOTICES with respect to the proposed rule and volume discovery processes. believe the proposed amendments change that are filed with the would burden intramarket competition Commission, and all written 19 The Exchange initially submitted the proposed as they would be available to all communications relating to the fee change on June 1, 2017. (SR–Bats EDGX–2017– 27). On, June 12, 2017 the Exchange withdrew SR– Members uniformly. proposed rule change between the Bats EDGX–2017–27 and submitted this filing. 20 15 U.S.C. 78f. 23 15 U.S.C. 78s(b)(3)(A). 21 15 U.S.C. 78f(b)(4). 22 See supra, note 4. 24 17 CFR 240.19b–4(f). 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Federal Register / Vol. 82, No. 121 / Monday, June 26, 2017 / Notices 28927 Commission and any person, other than SUPPLEMENTARY INFORMATION: Notice is information on genetic resources,’’ also those that may be withheld from the hereby given that as a result of the known as genetic sequence data. public in accordance with the Administrator’s disaster declaration, DATES: The meeting will be held on July provisions of 5 U.S.C. 552, will be applications for disaster loans may be 11, 2017, 1–3 p.m. available for Web site viewing and filed at the address listed above or other ADDRESSES: The meeting will be held at printing in the Commission’s Public locally announced locations. the Harry S. Truman Main State Reference Room, 100 F Street NE., The following areas have been Building, Room 3940, 2201 C Street Washington, DC 20549, on official determined to be adversely affected by NW., Washington, DC 20520. business days between the hours of the disaster: 10:00 a.m. and 3:00 p.m. Copies of the FOR FURTHER INFORMATION CONTACT: If Primary Counties: Blount filing also will be available for Contiguous Counties: you would like to participate in this inspection and copying at the principal Tennessee: Knox, Loudon, Monroe, meeting, please send your (1) name, (2) office of the Exchange. All comments Sevier organization/affiliation, (3) business received will be posted without change; North Carolina: Graham, Swain email address, and (4) business phone the Commission does not edit personal number, as well as any requests for The Interest Rates are: reasonable accommodation, to identifying information from submissions. You should submit only Stephanie Aktipis at AktipisS@state.gov Percent information that you wish to make or 202–647–4827 and Kayla Young at available publicly. All submissions For Physical Damage: YoungKM@state.gov or 202–647–1804. should refer to File No. SR–BatsEDGX– Homeowners with Credit Avail- SUPPLEMENTARY INFORMATION: The 2017–30, and should be submitted on or able Elsewhere ...................... 3.875 Secretariat of the Convention on before July 17, 2017. Homeowners without Credit Biological Diversity (CBD) released a Available Elsewhere .............. 1.938 For the Commission, by the Division of Businesses with Credit Avail- call (https://www.cbd.int/doc/ Trading and Markets, pursuant to delegated able Elsewhere ...................... 6.430 notifications/2017/ntf-2017-037-abs- authority.25 Businesses without Credit en.pdf) for views on potential Eduardo A. Aleman, Available Elsewhere .............. 3.215 implications of the use of digital Assistant Secretary. Non-Profit Organizations with sequence information on genetic [FR Doc. 2017–13229 Filed 6–23–17; 8:45 am] Credit Available Elsewhere ... 2.500 resources for the three objectives of the Non-Profit Organizations with- CBD and the objective of the Nagoya BILLING CODE 8011–01–P out Credit Available Else- Protocol on Access and Benefit Sharing where ..................................... 2.500 (Nagoya Protocol). The input received For Economic Injury: Businesses & Small Agricultural on this issue will be used to inform SMALL BUSINESS ADMINISTRATION decisions by the Parties to the CBD and Cooperatives without Credit [Disaster Declaration #15172 and #15173; Available Elsewhere .............. 3.215 the Nagoya Protocol at the 2018 Tennessee Disaster #TN–00103] Non-Profit Organizations with- Conference of Parties to the CBD and the out Credit Available Else- Conference of Parties serving as the Administrative Declaration of a where ..................................... 2.500 meeting of the Parties to the Nagoya Disaster for the State of Tennessee Protocol. The number assigned to this disaster We will provide a brief overview of AGENCY: U.S. Small Business for physical damage is 15172 B and for the use of digital sequence information Administration. economic injury is 15173 0. on genetic resources in the context of ACTION: Notice. The States which received an EIDL the CBD and the Nagoya Protocol and Declaration # are Tennessee, North will listen to your comments, concerns, SUMMARY: This is a notice of an Carolina Administrative declaration of a disaster and questions about this issue. The for the State of Tennessee dated 06/16/ (Catalog of Federal Domestic Assistance information obtained from this meeting 2017. Number 59008) and any subsequent related meetings Incident: Severe Thunderstorms with Dated: June 16, 2017. will inform the U.S. submission to the Damaging Winds. Linda E. McMahon, CBD. It will also help us prepare for Incident Period: 05/27/2017 through U.S. participation in international Administrator. 05/28/2017. meetings, specifically U.S. participation [FR Doc. 2017–13205 Filed 6–23–17; 8:45 am] in future CBD and Nagoya Protocol DATES: Effective 06/16/2017. BILLING CODE 8025–01–P meetings. Documents and other Physical Loan Application Deadline information related to the CBD and Date: 08/15/2017. Nagoya Protocol can be found at this Economic Injury (EIDL) Loan DEPARTMENT OF STATE Web site: www.cbd.int. Application Deadline Date: 03/16/2018. The personal information requested ADDRESSES: Submit completed loan [Public Notice: 10047] above is being collected pursuant to 22 applications to: U.S. Small Business U.S.C. 2651a and 22 U.S.C. 4802 for the Administration, Processing and Digital Sequence Information on Genetic Resources Public Meeting purpose of screening and pre-clearing Disbursement Center, 14925 Kingsport participants to enter the host venue at Road, Fort Worth, TX 76155. the U.S. Department of State. The sradovich on DSK3GMQ082PROD with NOTICES AGENCY: Department of State. FOR FURTHER INFORMATION CONTACT: A. ACTION: Notice of public meeting. Department of State will use this Escobar, Office of Disaster Assistance, information consistent with the routine U.S. Small Business Administration, SUMMARY: The Department of State will uses set forth in the System of Records 409 3rd Street SW., Suite 6050, hold an information session regarding Notices for Protocol Records (STATE– Washington, DC 20416, (202) 205–6734. an ongoing process under the 33) and Security Records (State-36). Convention on Biological Diversity Provision of this information is 25 17 CFR 200.30–3(a)(12). concerning the use of ‘‘digital sequence voluntary, but failure to provide VerDate Sep<11>2014 17:04 Jun 23, 2017 Jkt 241001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 E:\FR\FM\26JNN1.SGM 26JNN1


Document Created: 2018-11-14 10:11:03
Document Modified: 2018-11-14 10:11:03
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 28924 
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