82 FR 37135 - 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. and Bats BZX Exchange, Inc.'s Equity Options Platform
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 151 (August 8, 2017)
Federal Register Volume 82, Issue 151 (August 8, 2017)
| Page Range | 37135-37136 | |
| FR Document | 2017-16635 |
[Federal Register Volume 82, Number 151 (Tuesday, August 8, 2017)] [Notices] [Pages 37135-37136] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-16635] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81289; File No. SR-BatsBZX-2017-47] 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. and Bats BZX Exchange, Inc.'s Equity Options Platform August 2, 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 July 24, 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 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'') and its equity options trading platform (``BZX Options'') to re-name NYSE MKT as NYSE American throughout the fee schedule. The Exchange also proposes to modify fees applicable to BZX Equities for orders routed to NYSE American in connection with changes made by NYSE American to its fee structure. As of July 24, 2017, NYSE American transitioned to a fully automated cash equities market. In connection with this transition, NYSE American updated its fee structure in a variety of ways, including to charge a fee to add non- displayed liquidity and to provide no rebate (nor charge any fee) to add displayed liquidity.\6\ --------------------------------------------------------------------------- \6\ See SR-NYSEMKT-2017-43 (filed July 19, 2017), available at: https://www.nyse.com/regulation/rule-filings?market=NYSE. --------------------------------------------------------------------------- The Exchange proposes to modify the fee structure for orders that are routed to and add liquidity at NYSE American, which yielded fee code 8 for displayed liquidity and fee code NA for non-displayed liquidity. Orders yielding fee code 8 previously received a rebate of $0.00150 per share and orders yielding fee code NA were not provided a rebate or charged any fee. The Exchange proposes to continue to apply fee code 8 to orders that add displayed liquidity at NYSE American but to change the rate from a rebate to a fee, charging orders that yield fee code 8 a fee of $0.00020 per share. The Exchange also proposes to remove NYSE American (previously NYSE MKT) from the list of venues where an order that adds non-displayed liquidity yields fee code NA. The Exchange does not propose to modify the rate applied to orders yielding fee code NA, but, as a result of this change, orders adding non-displayed liquidity at NYSE American will yield fee code NB instead, which is applied to all routed executions at an exchange not covered by Fee Code NA that adds non- displayed liquidity. Similarly, the Exchange does not propose to modify the rate applied to orders yielding fee code NB, which is currently a fee of $0.00300 per share. The Exchange notes that the changes proposed above will not impact the current fee structure for orders that add displayed liquidity at NYSE American in securities priced below $1.00, which, pursuant to footnote 10, are provided without charge and without rebate. However, the proposed change to remove NYSE American from fee code NA will impact pricing for non-displayed orders routed to NYSE American that add liquidity. Specifically, consistent with other orders yielding fee code NB, pursuant to footnote 18, orders in securities priced below $1.00 will be charged 0.30% of the total dollar value of an execution. Implementation Date The Exchange proposes to implement the above changes to its fee schedule immediately. 2. Statutory Basis The Exchange believes that the proposed rule changes are consistent with the objectives of Section 6 of the Act,\7\ in general, and furthers the objectives of Section 6(b)(4),\8\ 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. At the outset, the Exchange notes that its proposal to refer to NYSE American is consistent with the Act as it will avoid confusion with the Exchange's fee schedule by reflecting NYSE MKT's new name. 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 are designed to react to pricing changes at NYSE American, to avoid subsidizing routing to such venue. Furthermore, the Exchange notes that routing through the Exchange's affiliate, Bats Trading, Inc. is voluntary. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f. \8\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- [[Page 37136]] The changes to fee code 8 and to remove NYSE American (NYSE MKT) from fee code NA are primarily to designed to react to pricing changes at NYSE American, effective July 24, 2017. These changes are necessary to avoid providing routing services with pricing that effectively subsidizes routing to NYSE American. The Exchange's prior pricing model for orders routed to NYSE American was based on a fee structure that provided rebates for orders that added liquidity. The Exchange believes it is reasonable and fair and equitable to charge fees for orders routed to NYSE American that no longer receive a rebate but instead are either assessed a fee by NYSE American or are provided free of charge. The Exchange also believes the proposed rates are reasonable and not unfairly discriminatory in that they are consistent with other rates already charged by the Exchange. Finally, the Exchange believes the proposed changes are not unfairly discriminatory in that they are equally applicable to all Members that use the Exchange's routing services to add liquidity at NYSE American. (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. 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 unsolicited 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 \9\ and paragraph (f) of Rule 19b-4 thereunder.\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 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 proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BatsBZX-2017-47 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-BatsBZX-2017-47. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BatsBZX-2017-47 and should be submitted on or before August 29, 2017. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-16635 Filed 8-7-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 151 / Tuesday, August 8, 2017 / Notices 37135
Written comments should be received II. Self-Regulatory Organization’s Exchange does not propose to modify
within 60 days of this notice. Statement of the Purpose of, and the rate applied to orders yielding fee
Statutory Basis for, the Proposed Rule code NA, but, as a result of this change,
Martha P. Rico,
Change orders adding non-displayed liquidity at
Secretary to the Board. NYSE American will yield fee code NB
[FR Doc. 2017–16672 Filed 8–7–17; 8:45 am] In its filing with the Commission, the
Exchange included statements instead, which is applied to all routed
BILLING CODE 7905–01–P
concerning the purpose of and basis for executions at an exchange not covered
the proposed rule change and discussed by Fee Code NA that adds non-
any comments it received on the displayed liquidity. Similarly, the
proposed rule change. The text of these Exchange does not propose to modify
SECURITIES AND EXCHANGE the rate applied to orders yielding fee
COMMISSION statements may be examined at the
places specified in Item IV below. The code NB, which is currently a fee of
Exchange has prepared summaries, set $0.00300 per share.
[Release No. 34–81289; File No. SR– The Exchange notes that the changes
BatsBZX–2017–47] forth in Sections A, B, and C below, of
the most significant parts of such proposed above will not impact the
Self-Regulatory Organizations; Bats statements. current fee structure for orders that add
BZX Exchange, Inc.; Notice of Filing displayed liquidity at NYSE American
(A) Self-Regulatory Organization’s in securities priced below $1.00, which,
and Immediate Effectiveness of a Statement of the Purpose of, and
Proposed Rule Change Related to Fees pursuant to footnote 10, are provided
Statutory Basis for, the Proposed Rule without charge and without rebate.
for Use on Bats BZX Exchange, Inc. Change
and Bats BZX Exchange, Inc.’s Equity However, the proposed change to
Options Platform 1. Purpose remove NYSE American from fee code
NA will impact pricing for non-
August 2, 2017. The Exchange proposes to amend its displayed orders routed to NYSE
fee schedule applicable to its equities American that add liquidity.
Pursuant to Section 19(b)(1) of the
trading platform (‘‘BZX Equities’’) and Specifically, consistent with other
Securities Exchange Act of 1934 (the
its equity options trading platform orders yielding fee code NB, pursuant to
‘‘Act’’),1 and Rule 19b-4 thereunder,2
(‘‘BZX Options’’) to re-name NYSE MKT footnote 18, orders in securities priced
notice is hereby given that on July 24,
as NYSE American throughout the fee below $1.00 will be charged 0.30% of
2017, Bats BZX Exchange, Inc. (the
schedule. the total dollar value of an execution.
‘‘Exchange’’ or ‘‘BZX’’) filed with the
The Exchange also proposes to modify
Securities and Exchange Commission Implementation Date
fees applicable to BZX Equities for
(‘‘Commission’’) the proposed rule
orders routed to NYSE American in
change as described in Items I, II and III The Exchange proposes to implement
connection with changes made by NYSE
below, which Items have been prepared the above changes to its fee schedule
American to its fee structure. As of July
by the Exchange. The Exchange has immediately.
24, 2017, NYSE American transitioned
designated the proposed rule change as
to a fully automated cash equities 2. Statutory Basis
one establishing or changing a member
market. In connection with this
due, fee, or other charge imposed by the The Exchange believes that the
transition, NYSE American updated its
Exchange under Section 19(b)(3)(A)(ii) proposed rule changes are consistent
fee structure in a variety of ways,
of the Act 3 and Rule 19b–4(f)(2) with the objectives of Section 6 of the
including to charge a fee to add non-
thereunder,4 which renders the Act,7 in general, and furthers the
displayed liquidity and to provide no
proposed rule change effective upon objectives of Section 6(b)(4),8 in
rebate (nor charge any fee) to add
filing with the Commission. The particular, as it is designed to provide
displayed liquidity.6
Commission is publishing this notice to for the equitable allocation of reasonable
The Exchange proposes to modify the
solicit comments on the proposed rule dues, fees and other charges among its
fee structure for orders that are routed
change from interested persons. Members and other persons using its
to and add liquidity at NYSE American,
facilities. At the outset, the Exchange
I. Self-Regulatory Organization’s which yielded fee code 8 for displayed
notes that its proposal to refer to NYSE
Statement of the Terms of Substance of liquidity and fee code NA for non-
American is consistent with the Act as
the Proposed Rule Change displayed liquidity. Orders yielding fee
it will avoid confusion with the
The Exchange filed a proposal to code 8 previously received a rebate of
Exchange’s fee schedule by reflecting
amend the fee schedule applicable to $0.00150 per share and orders yielding
NYSE MKT’s new name. The Exchange
Members 5 and non-Members of the fee code NA were not provided a rebate
also notes that it operates in a highly-
Exchange pursuant to BZX Rules 15.1(a) or charged any fee.
competitive market in which market
and (c). The Exchange proposes to continue to
participants can readily direct order
The text of the proposed rule change apply fee code 8 to orders that add
flow to competing venues if they deem
is available at the Exchange’s Web site displayed liquidity at NYSE American
fee levels at a particular venue to be
at www.bats.com, at the principal office but to change the rate from a rebate to
excessive or incentives to be
of the Exchange, and at the a fee, charging orders that yield fee code
insufficient. The proposed rule changes
Commission’s Public Reference Room. 8 a fee of $0.00020 per share.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
are designed to react to pricing changes
The Exchange also proposes to
at NYSE American, to avoid subsidizing
remove NYSE American (previously
1 15 U.S.C. 78s(b)(1). routing to such venue. Furthermore, the
NYSE MKT) from the list of venues
2 17 CFR 240.19b–4. Exchange notes that routing through the
3 15 U.S.C. 78s(b)(3)(A)(ii). where an order that adds non-displayed
Exchange’s affiliate, Bats Trading, Inc. is
4 17 CFR 240.19b–4(f)(2). liquidity yields fee code NA. The
5 The term ‘‘Member’’ is defined as ‘‘any
voluntary.
registered broker or dealer that has been admitted 6 See SR–NYSEMKT–2017–43 (filed July 19,
7 15 U.S.C. 78f.
to membership in the Exchange.’’ See Exchange 2017), available at: https://www.nyse.com/
Rule 1.5(n). regulation/rule-filings?market=NYSE. 8 15 U.S.C. 78f(b)(4).
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![37136 Federal Register / Vol. 82, No. 151 / Tuesday, August 8, 2017 / Notices
The changes to fee code 8 and to of the Act 9 and paragraph (f) of Rule submissions. You should submit only
remove NYSE American (NYSE MKT) 19b-4 thereunder.10 At any time within information that you wish to make
from fee code NA are primarily to 60 days of the filing of the proposed rule available publicly. All submissions
designed to react to pricing changes at change, the Commission summarily may should refer to File Number SR–
NYSE American, effective July 24, 2017. temporarily suspend such rule change if BatsBZX–2017–47 and should be
These changes are necessary to avoid it appears to the Commission that such submitted on or before August 29, 2017.
providing routing services with pricing action is necessary or appropriate in the For the Commission, by the Division of
that effectively subsidizes routing to public interest, for the protection of Trading and Markets, pursuant to delegated
NYSE American. The Exchange’s prior investors, or otherwise in furtherance of authority.11
pricing model for orders routed to NYSE the purposes of the Act. Eduardo A. Aleman,
American was based on a fee structure IV. Solicitation of Comments Assistant Secretary.
that provided rebates for orders that [FR Doc. 2017–16635 Filed 8–7–17; 8:45 am]
added liquidity. The Exchange believes Interested persons are invited to
it is reasonable and fair and equitable to submit written data, views and BILLING CODE 8011–01–P
charge fees for orders routed to NYSE arguments concerning the foregoing,
American that no longer receive a rebate including whether the proposal is
consistent with the Act. Comments may SECURITIES AND EXCHANGE
but instead are either assessed a fee by COMMISSION
NYSE American or are provided free of be submitted by any of the following
charge. The Exchange also believes the methods:
[Release No. 34–81290; File No. SR–
proposed rates are reasonable and not Electronic Comments BatsEDGX–2017–31]
unfairly discriminatory in that they are
• Use the Commission’s Internet
consistent with other rates already Self-Regulatory Organizations; Bats
comment form (http://www.sec.gov/
charged by the Exchange. Finally, the EDGX Exchange, Inc.; Notice of Filing
rules/sro.shtml); or
Exchange believes the proposed changes • Send an email to rule-comments@ and Immediate Effectiveness of a
are not unfairly discriminatory in that sec.gov. Please include File Number SR– Proposed Rule Change to Fees for Use
they are equally applicable to all BatsBZX–2017–47 on the subject line. of Bats EDGX Exchange, Inc. and Bats
Members that use the Exchange’s EDGX Exchange, Inc.’s Equity Options
routing services to add liquidity at Paper Comments Platform
NYSE American. • Send paper comments in triplicate
to Secretary, Securities and Exchange August 2, 2017.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
Washington, DC 20549–1090. Securities Exchange Act of 1934 (the
The Exchange does not believe that All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2
the proposed rule change will impose Number SR–BatsBZX–2017–47. This file notice is hereby given that on July 24,
any burden on competition not number should be included on the 2017, Bats EDGX Exchange, Inc. (the
necessary or appropriate in furtherance subject line if email is used. To help the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
of the purposes of the Act. The Commission process and review your Securities and Exchange Commission
Exchange does not believe that any of comments more efficiently, please use (‘‘Commission’’) the proposed rule
the proposed changes to the Exchange’s only one method. The Commission will change as described in Items I, II and III
routing pricing burden competition, as post all comments on the Commission’s below, which Items have been prepared
they are based on the pricing on other Internet Web site (http://www.sec.gov/ by the Exchange. The Exchange has
venues. The Exchange notes that it rules/sro.shtml). Copies of the designated the proposed rule change as
operates in a highly competitive market submission, all subsequent one establishing or changing a member
in which market participants can amendments, all written statements due, fee, or other charge imposed by the
readily direct order flow to competing with respect to the proposed rule Exchange under Section 19(b)(3)(A)(ii)
venues if they deem fee structures to be change that are filed with the of the Act 3 and Rule 19b–4(f)(2)
unreasonable or excessive. The Commission, and all written thereunder,4 which renders the
Exchange does not believe the proposed communications relating to the proposed rule change effective upon
amendments would burden intramarket proposed rule change between the filing with the Commission. The
competition as they would be available Commission and any person, other than Commission is publishing this notice to
to all Members uniformly. those that may be withheld from the solicit comments on the proposed rule
(C) Self-Regulatory Organization’s public in accordance with the change from interested persons.
Statement on Comments on the provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
Proposed Rule Change Received From available for Web site viewing and Statement of the Terms of Substance of
Members, Participants or Others printing in the Commission’s Public the Proposed Rule Change
Reference Room, 100 F Street NE.,
The Exchange has not solicited, and Washington, DC 20549, on official The Exchange filed a proposal to
does not intend to solicit, comments on business days between the hours of amend the fee schedule applicable to
this proposed rule change. The 10:00 a.m. and 3:00 p.m. Copies of such Members 5 and non-Members of the
Exchange has not received any
asabaliauskas on DSKBBXCHB2PROD with NOTICES
filing will also be available for
unsolicited written comments from inspection and copying at the principal 11 17 CFR 200.30–3(a)(12).
Members or other interested parties. office of the Exchange. All comments 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
III. Date of Effectiveness of the received will be posted without change;
3 15 U.S.C. 78s(b)(3)(A)(ii).
Proposed Rule Change and Timing for the Commission does not edit personal 4 17 CFR 240.19b–4(f)(2).
Commission Action identifying information from 5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
The foregoing rule change has become 9 15 U.S.C. 78s(b)(3)(A). to membership in the Exchange.’’ See Exchange
effective pursuant to Section 19(b)(3)(A) 10 17 CFR 240.19b–4(f). Rule 1.5(n).
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Document Created: 2017-08-08 00:17:41
Document Modified: 2017-08-08 00:17:41
| 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 37135 |
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