82 FR 33187 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7018
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 137 (July 19, 2017)
Federal Register Volume 82, Issue 137 (July 19, 2017)
| Page Range | 33187-33189 | |
| FR Document | 2017-15099 |
[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)] [Notices] [Pages 33187-33189] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-15099] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81138; File No. SR-BX-2017-031] Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7018 July 13, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on June 30, 2017, NASDAQ BX, Inc. (``BX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange's transaction fees at Rule 7018 to assess a new charge for adding displayed liquidity for members that equal or exceed a specified monthly volume threshold, as described further below. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqbx.cchwallstreet.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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the Exchange's transaction fees at Rule 7018 to assess a new charge for adding displayed liquidity for members that equal or exceed a specified monthly volume threshold. The Exchange operates on the ``taker-maker'' model, whereby it pays credits to members that take liquidity and charges fees to members that provide liquidity. Currently, the Exchange assesses three fees to members that provide liquidity on BX through displayed orders if the member meets certain volume requirements. First, the Exchange assesses a charge of $0.0014 per share executed for a displayed order entered by a member that adds liquidity equal to or exceeding 0.25% of total Consolidated Volume during a month. Second, the Exchange assesses a charge of $0.0017 per share executed for a displayed order entered by a member that adds liquidity equal to or exceeding 0.15% of total Consolidated Volume during a month. Third, the Exchange assesses a charge of $0.0018 per share executed for a displayed order entered by a member that adds liquidity equal to or exceeding the member's Growth Target.\3\ A member that does not meet any of these categories will be assessed a charge of $0.0020 per share executed for adding displayed liquidity.\4\ --------------------------------------------------------------------------- \3\ The Growth Target is the liquidity the member added in January 2017 as a percent of total Consolidated Volume plus 0.04% of total Consolidated Volume. See Rule 7018. \4\ As set forth in Rule 7018, the Exchange also assesses other charges for adding other kinds of liquidity, such as non-displayed orders and specific order types. --------------------------------------------------------------------------- The Exchange now proposes to assess a charge of $0.0013 per share executed for a displayed order entered by a member that adds liquidity equal to or exceeding 0.55% of total Consolidated Volume during a month. As with the other charges and credits in Rule 7018, Consolidated Volume shall be defined as the total consolidated volume reported to all consolidated transaction reporting plans by all exchanges and trade reporting facilities during a month in equity securities, excluding executed [[Page 33188]] orders with a size of less than one round lot.\5\ --------------------------------------------------------------------------- \5\ As set forth in Rule 7018(a), for purposes of calculating Consolidated Volume and the extent of a member's trading activity, the date of the annual reconstitution of the Russell Investments Indexes shall be excluded from both total Consolidated Volume and the member's trading activity. --------------------------------------------------------------------------- By assessing a lower charge on displayed orders for members that add increased liquidity, the Exchange is incentivizing members to add greater liquidity on BX, to the benefit of all BX market participants. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system ``has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.'' \8\ --------------------------------------------------------------------------- \8\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting Release''). --------------------------------------------------------------------------- Likewise, in NetCoalition v. Securities and Exchange Commission \9\ (``NetCoalition'') the D.C. Circuit upheld the Commission's use of a market-based approach in evaluating the fairness of market data fees against a challenge claiming that Congress mandated a cost-based approach.\10\ As the court emphasized, the Commission ``intended in Regulation NMS that `market forces, rather than regulatory requirements' play a role in determining the market data . . . to be made available to investors and at what cost.'' \11\ --------------------------------------------------------------------------- \9\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010). \10\ See NetCoalition, at 534-535. \11\ Id. at 537. --------------------------------------------------------------------------- Further, ``[n]o one disputes that competition for order flow is `fierce.' . . . As the SEC explained, `[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] `no exchange can afford to take its market share percentages for granted' because `no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .'' \12\ --------------------------------------------------------------------------- \12\ Id. at 539 (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)). --------------------------------------------------------------------------- The Exchange believes that the proposed charge and its attendant volume requirement is reasonable. In reducing the charge to add displayed liquidity if the volume threshold is met, the proposed charge and its volume requirement is designed to incentivize members to add greater liquidity to the Exchange. Accordingly, the amount of the charge is less than other charges for adding displayed liquidity, and the volume requirement is correspondingly more stringent than volume requirements for higher charges, e.g., $0.0013 per share executed for adding liquidity equal to or exceeding 0.55% of total Consolidated Volume versus $0.0014 per share executed for adding liquidity equal to or exceeding 0.25% of total Consolidated Volume. The Exchange also notes that Bats BYX Exchange, Inc. assesses a fee of $0.0013 for displayed orders that add liquidity where the member has an average daily add volume that equals or exceeds 0.40% of the Total Consolidated Volume.\13\ The Exchange also believes that the amount of the new charge is closely aligned to the requirement for qualifying for that charge, especially in comparison to the other charges for adding liquidity offered by the Exchange and their attendant requirements. --------------------------------------------------------------------------- \13\ See Bats BYX Exchange, Inc. fee schedule. --------------------------------------------------------------------------- The Exchange believes that the proposed change is equitably allocated among members, and is not designed to permit unfair discrimination. BX notes that participation on the Exchange, and eligibility for this charge, is voluntary, and that the Exchange continues to offer other charge [sic] for which members may attempt to qualify instead of the proposed charge. The proposed charge applies to all members that otherwise qualify for the charge by meeting its volume requirement. The Exchange believes that it is equitable and not unfairly discriminatory to adopt this charge and its volume requirement because the Exchange is attempting, through this charge and its volume requirement, to incentivize members to add greater liquidity to the Exchange, which may benefit all BX market participants. 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. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, the proposed charge for adding displayed liquidity does not impose a burden on competition because the Exchange's execution services are completely voluntary and subject to extensive competition both from other exchanges and from off-exchange venues. The new charge applies equally to all members that otherwise meet the requirement, i.e., adding liquidity equal to or exceeding 0.55% of total Consolidated Volume during a month, and all similarly situated members are equally capable of qualifying for the charge if they choose to meet the requirement. The Exchange believes that the proposed charge will incentivize members to add greater liquidity to the Exchange, which may benefit all BX market participants. The Exchange also notes that Bats BYX Exchange, Inc. assesses the same fee for adding displayed liquidity with a comparable volume requirement. In sum, if the changes proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. [[Page 33189]] C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. 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)(ii) of the Act.\14\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BX-2017-031 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 Number SR-BX-2017-031. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BX-2017-031 and should be submitted on or before August 9, 2017. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-15099 Filed 7-18-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices 33187
as the Commission may designate up to should refer to File Number SR– statements may be examined at the
90 days of such date if it finds such BatsEDGX–2017–29 and should be places specified in Item IV below. The
longer period to be appropriate and submitted on or before August 9, 2017. Exchange has prepared summaries, set
publishes its reasons for so finding or For the Commission, by the Division of forth in sections A, B, and C below, of
(ii) as to which the Exchange consents, Trading and Markets, pursuant to delegated the most significant aspects of such
the Commission will: (a) By order authority.83 statements.
approve or disapprove such proposed Jill M. Peterson,
rule change, or (b) institute proceedings A. Self-Regulatory Organization’s
Assistant Secretary. Statement of the Purpose of, and
to determine whether the proposed rule [FR Doc. 2017–15098 Filed 7–18–17; 8:45 am]
change should be disapproved. Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Change
IV. Solicitation of Comments
1. Purpose
Interested persons are invited to
SECURITIES AND EXCHANGE The purpose of the proposed rule
submit written data, views, and
COMMISSION change is to amend the Exchange’s
arguments concerning the foregoing,
including whether the proposed rule [Release No. 34–81138; File No. SR–BX– transaction fees at Rule 7018 to assess
change is consistent with the Act. 2017–031] a new charge for adding displayed
Comments may be submitted by any of liquidity for members that equal or
the following methods: Self-Regulatory Organizations; exceed a specified monthly volume
NASDAQ BX, Inc.; Notice of Filing and threshold.
Electronic Comments Immediate Effectiveness of Proposed The Exchange operates on the ‘‘taker-
• Use the Commission’s Internet Rule Change To Amend Rule 7018 maker’’ model, whereby it pays credits
comment form (http://www.sec.gov/ to members that take liquidity and
July 13, 2017.
rules/sro.shtml); or charges fees to members that provide
• Send an email to rule-comments@ Pursuant to Section 19(b)(1) of the
liquidity. Currently, the Exchange
sec.gov. Please include File Number SR– Securities Exchange Act of 1934
assesses three fees to members that
BatsEDGX–2017–29 on the subject line. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
provide liquidity on BX through
notice is hereby given that on June 30,
Paper Comments displayed orders if the member meets
2017, NASDAQ BX, Inc. (‘‘BX’’ or
certain volume requirements. First, the
• Send paper comments in triplicate ‘‘Exchange’’) filed with the Securities
Exchange assesses a charge of $0.0014
to Brent J. Fields, Secretary, Securities and Exchange Commission (‘‘SEC’’ or
per share executed for a displayed order
and Exchange Commission, 100 F Street ‘‘Commission’’) the proposed rule
entered by a member that adds liquidity
NE., Washington, DC 20549–1090. change as described in Items I, II, and
equal to or exceeding 0.25% of total
All submissions should refer to File III, below, which Items have been
Consolidated Volume during a month.
Number SR–BatsEDGX–2017–29. This prepared by the Exchange. The
Second, the Exchange assesses a charge
file number should be included on the Commission is publishing this notice to
of $0.0017 per share executed for a
subject line if email is used. To help the solicit comments on the proposed rule
displayed order entered by a member
Commission process and review your change from interested persons.
that adds liquidity equal to or exceeding
comments more efficiently, please use I. Self-Regulatory Organization’s 0.15% of total Consolidated Volume
only one method. The Commission will Statement of the Terms of Substance of during a month. Third, the Exchange
post all comments on the Commission’s the Proposed Rule Change assesses a charge of $0.0018 per share
Internet Web site (http://www.sec.gov/ executed for a displayed order entered
The Exchange proposes to amend the
rules/sro.shtml). Copies of the by a member that adds liquidity equal
Exchange’s transaction fees at Rule 7018
submission, all subsequent to or exceeding the member’s Growth
to assess a new charge for adding
amendments, all written statements Target.3 A member that does not meet
displayed liquidity for members that
with respect to the proposed rule any of these categories will be assessed
equal or exceed a specified monthly
change that are filed with the a charge of $0.0020 per share executed
volume threshold, as described further
Commission, and all written for adding displayed liquidity.4
below.
communications relating to the The text of the proposed rule change The Exchange now proposes to assess
proposed rule change between the is available on the Exchange’s Web site a charge of $0.0013 per share executed
Commission and any person, other than at http://nasdaqbx.cchwallstreet.com/, for a displayed order entered by a
those that may be withheld from the at the principal office of the Exchange, member that adds liquidity equal to or
public in accordance with the and at the Commission’s Public exceeding 0.55% of total Consolidated
provisions of 5 U.S.C. 552, will be Reference Room. Volume during a month. As with the
available for Web site viewing and other charges and credits in Rule 7018,
printing in the Commission’s Public II. Self-Regulatory Organization’s Consolidated Volume shall be defined
Reference Room, 100 F Street NE., Statement of the Purpose of, and as the total consolidated volume
Washington, DC 20549, on official Statutory Basis for, the Proposed Rule reported to all consolidated transaction
business days between the hours of Change reporting plans by all exchanges and
10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the trade reporting facilities during a month
asabaliauskas on DSKBBXCHB2PROD with NOTICES
filing also will be available for Exchange included statements in equity securities, excluding executed
inspection and copying at the principal concerning the purpose of and basis for
office of the Exchange. All comments the proposed rule change and discussed 3 The Growth Target is the liquidity the member
received will be posted without change; any comments it received on the added in January 2017 as a percent of total
the Commission does not edit personal proposed rule change. The text of these Consolidated Volume plus 0.04% of total
identifying information from Consolidated Volume. See Rule 7018.
4 As set forth in Rule 7018, the Exchange also
submissions. You should submit only 83 17 CFR 200.30–3(a)(12). assesses other charges for adding other kinds of
information that you wish to make 1 15 U.S.C. 78s(b)(1). liquidity, such as non-displayed orders and specific
available publicly. All submissions 2 17 CFR 240.19b–4. order types.
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![33188 Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices
orders with a size of less than one round national market system, buyers and requirement, to incentivize members to
lot.5 sellers of securities, and the broker- add greater liquidity to the Exchange,
By assessing a lower charge on dealers that act as their order-routing which may benefit all BX market
displayed orders for members that add agents, have a wide range of choices of participants.
increased liquidity, the Exchange is where to route orders for execution’;
incentivizing members to add greater B. Self-Regulatory Organization’s
[and] ‘no exchange can afford to take its Statement on Burden on Competition
liquidity on BX, to the benefit of all BX market share percentages for granted’
market participants. because ‘no exchange possesses a The Exchange does not believe that
monopoly, regulatory or otherwise, in the proposed rule change will impose
2. Statutory Basis any burden on competition not
the execution of order flow from broker
The Exchange believes that its dealers’. . . .’’ 12 necessary or appropriate in furtherance
proposal is consistent with Section 6(b) The Exchange believes that the of the purposes of the Act. In terms of
of the Act,6 in general, and furthers the proposed charge and its attendant inter-market competition, the Exchange
objectives of Sections 6(b)(4) and 6(b)(5) volume requirement is reasonable. In notes that it operates in a highly
of the Act,7 in particular, in that it reducing the charge to add displayed competitive market in which market
provides for the equitable allocation of liquidity if the volume threshold is met, participants can readily favor competing
reasonable dues, fees and other charges the proposed charge and its volume venues if they deem fee levels at a
among members and issuers and other requirement is designed to incentivize particular venue to be excessive, or
persons using any facility, and is not members to add greater liquidity to the rebate opportunities available at other
designed to permit unfair Exchange. Accordingly, the amount of venues to be more favorable. In such an
discrimination between customers, the charge is less than other charges for environment, the Exchange must
issuers, brokers, or dealers. adding displayed liquidity, and the continually adjust its fees to remain
The Commission and the courts have volume requirement is correspondingly competitive with other exchanges and
repeatedly expressed their preference more stringent than volume with alternative trading systems that
for competition over regulatory requirements for higher charges, e.g., have been exempted from compliance
intervention in determining prices, $0.0013 per share executed for adding with the statutory standards applicable
products, and services in the securities liquidity equal to or exceeding 0.55% of to exchanges. Because competitors are
markets. In Regulation NMS, while total Consolidated Volume versus free to modify their own fees in
adopting a series of steps to improve the response, and because market
$0.0014 per share executed for adding
current market model, the Commission participants may readily adjust their
liquidity equal to or exceeding 0.25% of
highlighted the importance of market order routing practices, the Exchange
total Consolidated Volume. The
forces in determining prices and SRO believes that the degree to which fee
Exchange also notes that Bats BYX
revenues and, also, recognized that changes in this market may impose any
Exchange, Inc. assesses a fee of $0.0013
current regulation of the market system burden on competition is extremely
for displayed orders that add liquidity
‘‘has been remarkably successful in limited.
where the member has an average daily In this instance, the proposed charge
promoting market competition in its add volume that equals or exceeds
broader forms that are most important to for adding displayed liquidity does not
0.40% of the Total Consolidated impose a burden on competition
investors and listed companies.’’ 8 Volume.13 The Exchange also believes
Likewise, in NetCoalition v. Securities because the Exchange’s execution
that the amount of the new charge is services are completely voluntary and
and Exchange Commission 9
closely aligned to the requirement for subject to extensive competition both
(‘‘NetCoalition’’) the D.C. Circuit upheld
qualifying for that charge, especially in from other exchanges and from off-
the Commission’s use of a market-based
comparison to the other charges for exchange venues. The new charge
approach in evaluating the fairness of
adding liquidity offered by the applies equally to all members that
market data fees against a challenge
Exchange and their attendant otherwise meet the requirement, i.e.,
claiming that Congress mandated a cost-
requirements. adding liquidity equal to or exceeding
based approach.10 As the court
The Exchange believes that the 0.55% of total Consolidated Volume
emphasized, the Commission ‘‘intended
proposed change is equitably allocated during a month, and all similarly
in Regulation NMS that ‘market forces,
among members, and is not designed to situated members are equally capable of
rather than regulatory requirements’
permit unfair discrimination. BX notes qualifying for the charge if they choose
play a role in determining the market
that participation on the Exchange, and to meet the requirement. The Exchange
data . . . to be made available to
eligibility for this charge, is voluntary, believes that the proposed charge will
investors and at what cost.’’ 11
and that the Exchange continues to offer incentivize members to add greater
Further, ‘‘[n]o one disputes that
other charge [sic] for which members liquidity to the Exchange, which may
competition for order flow is ‘fierce.’
may attempt to qualify instead of the benefit all BX market participants. The
. . . As the SEC explained, ‘[i]n the U.S.
proposed charge. The proposed charge Exchange also notes that Bats BYX
5 As set forth in Rule 7018(a), for purposes of applies to all members that otherwise Exchange, Inc. assesses the same fee for
calculating Consolidated Volume and the extent of qualify for the charge by meeting its adding displayed liquidity with a
a member’s trading activity, the date of the annual volume requirement. The Exchange comparable volume requirement.
reconstitution of the Russell Investments Indexes believes that it is equitable and not
shall be excluded from both total Consolidated
In sum, if the changes proposed
unfairly discriminatory to adopt this
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Volume and the member’s trading activity. herein are unattractive to market
6 15 U.S.C. 78f(b). charge and its volume requirement participants, it is likely that the
7 15 U.S.C. 78f(b)(4) and (5). because the Exchange is attempting, Exchange will lose market share as a
8 Securities Exchange Act Release No. 51808 through this charge and its volume result. Accordingly, the Exchange does
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) not believe that the proposed change
(‘‘Regulation NMS Adopting Release’’). 12 Id. at 539 (quoting Securities Exchange Act
9 NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. will impair the ability of members or
Release No. 59039 (December 2, 2008), 73 FR
2010). 74770, 74782–83 (December 9, 2008) (SR– competing order execution venues to
10 See NetCoalition, at 534–535. NYSEArca–2006–21)). maintain their competitive standing in
11 Id. at 537. 13 See Bats BYX Exchange, Inc. fee schedule. the financial markets.
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![Federal Register / Vol. 82, No. 137 / Wednesday, July 19, 2017 / Notices 33189
C. Self-Regulatory Organization’s those that may be withheld from the solicit comments on the proposed rule
Statement on Comments on the public in accordance with the change from interested persons.
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be
Members, Participants, or Others available for Web site viewing and I. Self-Regulatory Organization’s
printing in the Commission’s Public Statement of the Terms of the Substance
No written comments were either of the Proposed Rule Change
solicited or received. Reference Room, 100 F Street NE.,
Washington, DC 20549, on official FINRA is proposing to update cross-
III. Date of Effectiveness of the business days between the hours of references and make other non-
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the substantive changes within FINRA
Commission Action filing also will be available for rules.
The foregoing rule change has become inspection and copying at the principal
office of the Exchange. All comments The text of the proposed rule change
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.14 received will be posted without change; is available on FINRA’s Web site at
At any time within 60 days of the the Commission does not edit personal http://www.finra.org, at the principal
filing of the proposed rule change, the identifying information from office of FINRA and at the
Commission summarily may submissions. You should submit only Commission’s Public Reference Room.
temporarily suspend such rule change if information that you wish to make II. Self-Regulatory Organization’s
it appears to the Commission that such available publicly. All submissions Statement of the Purpose of, and
action is: (i) Necessary or appropriate in should refer to File Number SR–BX– Statutory Basis for, the Proposed Rule
the public interest; (ii) for the protection 2017–031 and should be submitted on Change
of investors; or (iii) otherwise in or before August 9, 2017.
furtherance of the purposes of the Act. For the Commission, by the Division of
In its filing with the Commission,
If the Commission takes such action, the Trading and Markets, pursuant to delegated FINRA included statements concerning
Commission shall institute proceedings authority.15 the purpose of and basis for the
to determine whether the proposed rule Jill M. Peterson, proposed rule change and discussed any
should be approved or disapproved. comments it received on the proposed
Assistant Secretary.
IV. Solicitation of Comments rule change. The text of these statements
[FR Doc. 2017–15099 Filed 7–18–17; 8:45 am]
may be examined at the places specified
Interested persons are invited to BILLING CODE 8011–01–P
in Item IV below. FINRA has prepared
submit written data, views, and summaries, set forth in sections A, B,
arguments concerning the foregoing, and C below, of the most significant
including whether the proposed rule SECURITIES AND EXCHANGE
aspects of such statements.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of A. Self-Regulatory Organization’s
the following methods: [Release No. 34–81139; File No. SR–FINRA– Statement of the Purpose of, and
2017–024] Statutory Basis for, the Proposed Rule
Electronic Comments Change
• Use the Commission’s Internet Self-Regulatory Organizations;
comment form (http://www.sec.gov/ Financial Industry Regulatory 1. Purpose
rules/sro.shtml); or Authority, Inc.; Notice of Filing and On October 18, 2016, the SEC
• Send an email to rule-comments@ Immediate Effectiveness of a Proposed approved changes to FINRA Rule 6730
sec.gov. Please include File Number SR– Rule Change To Update Rule Cross- (Transaction Reporting) to expand the
BX–2017–031 on the subject line. References and Make Non-Substantive Trade Reporting and Compliance Engine
Paper Comments Technical Changes to FINRA Rules (‘‘TRACE’’) reporting rules to include
• Send paper comments in triplicate July 13, 2017. most secondary market transactions in
to Secretary, Securities and Exchange marketable U.S. Treasury securities.4
Pursuant to Section 19(b)(1) of the The rule change requires all FINRA
Commission, 100 F Street NE., Securities Exchange Act of 1934
Washington, DC 20549–1090. members involved in transactions in
(‘‘Act’’ ) 1 and Rule 19b–4 thereunder,2 U.S. Treasury Securities, as defined in
All submissions should refer to File notice is hereby given that on June 30, the TRACE rules, to report most
Number SR–BX–2017–031. This file 2017, Financial Industry Regulatory transactions in those securities to
number should be included on the Authority, Inc. (‘‘FINRA’’) filed with the TRACE. The rule change further
subject line if email is used. To help the Securities and Exchange Commission requires Reportable TRACE
Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed Transactions in U.S. Treasury Securities
comments more efficiently, please use rule change as described in Items I and generally to be reported on the same day
only one method. The Commission will II below, which Items have been as the transaction on an end-of-day
post all comments on the Commission’s prepared by FINRA. FINRA has basis. Because FINRA is not currently
Internet Web site (http://www.sec.gov/ designated the proposed rule change as proposing to disseminate any trade-level
rules/sro.shtml). Copies of the constituting a ‘‘non-controversial’’ rule information to the public regarding
submission, all subsequent change under paragraph (f)(6) of Rule transactions in U.S. Treasury Securities,
asabaliauskas on DSKBBXCHB2PROD with NOTICES
amendments, all written statements 19b–4 under the Act,3 which renders the rule change generally imposed a
with respect to the proposed rule the proposal effective upon receipt of same-day reporting requirement as
change that are filed with the this filing by the Commission. The opposed to a more immediate
Commission, and all written Commission is publishing this notice to requirement, such as 15 minutes. The
communications relating to the
proposed rule change between the 15 17 CFR 200.30–3(a)(12). 4 See Securities Exchange Act Release No. 79116
Commission and any person, other than 1 15 U.S.C. 78s(b)(1). (October 18, 2016), 81 FR 73167 (October 24, 2016)
2 17 CFR 240.19b–4.
(Notice of Filing and Order Granting Accelerated
14 15 U.S.C. 78s(b)(3)(A)(ii). 3 17 CFR 240.19b–4(f)(6). Approval of File No. SR–FINRA–2016–027).
VerDate Sep<11>2014 18:49 Jul 18, 2017 Jkt 241001 PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.SGM 19JYN1](https://thefederalregister.org/doc/82_FR_33324/page/3.svg)
Document Created: 2017-07-19 06:17:23
Document Modified: 2017-07-19 06:17:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 33187 |
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