82 FR 37645 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BYX Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 154 (August 11, 2017)
Federal Register Volume 82, Issue 154 (August 11, 2017)
| Page Range | 37645-37647 | |
| FR Document | 2017-16929 |
[Federal Register Volume 82, Number 154 (Friday, August 11, 2017)] [Notices] [Pages 37645-37647] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-16929] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81326; File No. SR-BatsBYX-2017-17] Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BYX Exchange, Inc. August 7, 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 31, 2017, Bats BYX Exchange, Inc. (the ``Exchange'' or ``BYX'') 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 BYX 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 to modify existing Tier 3 and add a new tier under footnote 1, Add/Remove Volume Tiers. The [[Page 37646]] Exchange currently offers five tiers under footnote 1 that offer reduced fees for displayed orders that yield fee codes B,\6\ V \7\ and Y,\8\ and an enhanced rebate for orders that remove liquidity yielding fee codes BB,\9\ N \10\ and W.\11\ The Exchange proposes to amend the criteria necessary to receive the enhanced rebate under Tier 3 under footnote 1. Tier 3 provides a rebate of $0.0015 [sic] per share for orders where that Member has an ADAV \12\ equal to or greater than 0.55% of the TCV.\13\ The Exchange proposes to increase the tier's requirements to now require the Member to have an ADAV equal to or greater than 0.80% of the TCV. The Exchange does not propose to amend the tier's rebate. --------------------------------------------------------------------------- \6\ Fee code B is appended to displayed orders that add liquidity to BYX (Tape B) and is assessed a fee of $0.0018 per share. See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/byx/. \7\ Fee code V is appended to displayed orders that add liquidity to BYX (Tape A) and is assessed a fee of $0.0018 per share. Id. \8\ Fee code Y is appended to displayed orders that add liquidity to BYX (Tape C) and is assessed a fee of $0.0018 per share. Id. \9\ Fee code BB is appended to orders that remove liquidity from BYX (Tape B) and is assessed a rebate of $0.0010 per share. Id. \10\ Fee code N is appended to orders that remove liquidity from BYX (Tape C) and is assessed a rebate of $0.0010 per share. Id. \11\ Fee code W is appended to orders that remove liquidity from BYX (Tape A) and is assessed a rebate of $0.0010 per share. See the Exchange's fee schedule available at http://www.bats.com/us/equities/membership/fee_schedule/byx/. \12\ ``ADAV'' means average daily volume calculated as the number of shares added per day on a monthly basis. Id. \13\ ``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. Id. --------------------------------------------------------------------------- The Exchange also proposes to add a new tier under footnote 1, to be known as Tier 5,\14\ under which a Member would be charged a reduced fee of $0.0012 per share on orders that yield fee codes B, V and Y, where that Member's Market Participant Identifier (``MPID'') has an ADAV equal to or greater than 0.55% of the TCV. --------------------------------------------------------------------------- \14\ With the addition of proposed Tier 5 under footnote 1, the Exchange proposes to renumber current Tier 5 as Tier 6. --------------------------------------------------------------------------- The Exchange proposes to implement the above changes to its fee schedule on August 1, 2017. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\15\ in general, and furthers the objectives of Section 6(b)(4),\16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f. \16\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed tier under footnote 1is [sic] equitable and reasonable because such pricing programs reward a Member's growth pattern on the Exchange and such increased volume will allow the Exchange to continue to provide and potentially expand the its incentive programs. The Exchange believes that providing the same reduced rate to Members under Tiers 3 and 5 while requiring more stringent requirements under Tier 3 than Tier 5 is equitable and reasonable as the proposed criteria reasonable [sic] reflect the segment of the Member's order flow that is to be measured. Under Tier 3, the Member as a whole must meet a higher standard than their individual MPID under Tier 5. The Exchange believes this is equitable and reasonable because a Member may have multiple MPIDs that it may aggregate volume across to meet Tier 3's criteria, while Tier 5 is limited to the individual MPID. The Exchange further believes that the proposed tier and modifications are reasonable, fair and equitable because the liquidity from the proposed changes would benefit all investors by deepening the Exchange's liquidity pool, offering additional flexibility for all investors to enjoy cost savings, supporting the quality of price discovery, promoting market transparency and improving investor protection. These pricing programs are also not unfairly discriminatory in that it is available to all Members. In addition, volume-based fees such as that proposed herein have been widely adopted by exchanges 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 provision and/or growth patterns; and (iii) the introduction of higher volumes of orders into the price and volume discovery processes. The Exchange believes that the proposed tier is a reasonable, fair and equitable, and not an unfairly discriminatory allocation of fees and rebates, because it will provide Members with an additional incentive to reach certain thresholds on the Exchange. (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 this change represents a significant departure from previous pricing offered by the Exchange or from pricing offered by the Exchange's competitors. The proposed rates would apply uniformly to all Members, and Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. Further, excessive fees would serve to impair an exchange's ability to compete for order flow and members rather than burdening competition. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. (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 \17\ and paragraph (f) of Rule 19b-4 thereunder.\18\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A). \18\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or [[Page 37647]] Send an email to rule-comments@sec.gov. Please include File Number SR-BatsBYX-2017-17 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-BatsBYX-2017-17. 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-BatsBYX-2017-17 and should be submitted on or before September 1, 2017. --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12).\ For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-16929 Filed 8-10-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37645
because the proposed provisions apply and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
to all market participants equally. NE., Washington, DC 20549–1090. notice is hereby given that on July 31,
All submissions should refer to File 2017, Bats BYX Exchange, Inc. (the
C. Self-Regulatory Organization’s
Number SR–NASDAQ–2017–078. This ‘‘Exchange’’ or ‘‘BYX’’) filed with the
Statement on Comments on the
file number should be included on the Securities and Exchange Commission
Proposed Rule Change Received From
subject line if email is used. To help the (‘‘Commission’’) the proposed rule
Members, Participants, or Others change as described in Items I, II and III
Commission process and review your
No written comments were either below, which Items have been prepared
comments more efficiently, please use
solicited or received. by the Exchange. The Exchange has
only one method. The Commission will
designated the proposed rule change as
III. Date of Effectiveness of the post all comments on the Commission’s
one establishing or changing a member
Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/
due, fee, or other charge imposed by the
Commission Action rules/sro.shtml). Copies of the
Exchange under Section 19(b)(3)(A)(ii)
submission, all subsequent
Because the foregoing proposed rule of the Act3 and Rule 19b–4(f)(2)
amendments, all written statements
change does not: (i) Significantly affect thereunder,4 which renders the
with respect to the proposed rule
the protection of investors or the public proposed rule change effective upon
change that are filed with the filing with the Commission. The
interest; (ii) impose any significant
Commission, and all written Commission is publishing this notice to
burden on competition; and (iii) become
communications relating to the solicit comments on the proposed rule
operative for 30 days from the date on
proposed rule change between the change from interested persons.
which it was filed, or such shorter time
Commission and any person, other than
as the Commission may designate, it has I. Self-Regulatory Organization’s
those that may be withheld from the
become effective pursuant to Section Statement of the Terms of Substance of
public in accordance with the
19(b)(3)(A)(iii) of the Act 26 and the Proposed Rule Change
provisions of 5 U.S.C. 552, will be
subparagraph (f)(6) of Rule 19b–4
available for Web site viewing and The Exchange filed a proposal to
thereunder.27
printing in the Commission’s Public amend the fee schedule applicable to
At any time within 60 days of the
Reference Room, 100 F Street NE., Members 5 and non-Members of the
filing of the proposed rule change, the
Washington, DC 20549 on official Exchange pursuant to BYX Rules 15.1(a)
Commission summarily may
business days between the hours of and (c).
temporarily suspend such rule change if
10:00 a.m. and 3:00 p.m. Copies of such The text of the proposed rule change
it appears to the Commission that such
filing also will be available for is available at the Exchange’s Web site
action is: (i) Necessary or appropriate in
inspection and copying at the principal at www.bats.com, at the principal office
the public interest; (ii) for the protection
office of the Exchange. All comments of the Exchange, and at the
of investors; or (iii) otherwise in
received will be posted without change; Commission’s Public Reference Room.
furtherance of the purposes of the Act.
the Commission does not edit personal
If the Commission takes such action, the II. Self-Regulatory Organization’s
identifying information from
Commission shall institute proceedings Statement of the Purpose of, and
submissions. You should submit only
to determine whether the proposed rule Statutory Basis for, the Proposed Rule
information that you wish to make
should be approved or disapproved. Change
available publicly. All submissions
IV. Solicitation of Comments should refer to File Number SR– In its filing with the Commission, the
NASDAQ–2017–078, and should be Exchange included statements
Interested persons are invited to concerning the purpose of and basis for
submitted on or before September 1,
submit written data, views, and the proposed rule change and discussed
2017.
arguments concerning the foregoing, any comments it received on the
including whether the proposed rule For the Commission, by the Division of
proposed rule change. The text of these
change is consistent with the Act. Trading and Markets, pursuant to delegated
authority.28 statements may be examined at the
Comments may be submitted by any of places specified in Item IV below. The
the following methods: Eduardo A. Aleman,
Exchange has prepared summaries, set
Assistant Secretary.
Electronic Comments forth in Sections A, B, and C below, of
[FR Doc. 2017–16926 Filed 8–10–17; 8:45 am] the most significant parts of such
• Use the Commission’s Internet BILLING CODE 8011–01–P statements.
comment form (http://www.sec.gov/
rules/sro.shtml); or (A) Self-Regulatory Organization’s
• Send an email to rule-comments@ SECURITIES AND EXCHANGE Statement of the Purpose of, and
sec.gov. Please include File Number SR– COMMISSION Statutory Basis for, the Proposed Rule
NASDAQ–2017–078 on the subject line. Change
[Release No. 34–81326; File No. SR– 1. Purpose
Paper Comments BatsBYX–2017–17]
The Exchange proposes to amend its
• Send paper comments in triplicate
Self-Regulatory Organizations; Bats fee schedule to modify existing Tier 3
to Brent J. Fields, Secretary, Securities
BYX Exchange, Inc.; Notice of Filing and add a new tier under footnote 1,
asabaliauskas on DSKBBXCHB2PROD with NOTICES
26 15
and Immediate Effectiveness of a Add/Remove Volume Tiers. The
U.S.C. 78s(b)(3)(A)(iii).
27 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Proposed Rule Change Related to Fees
1 15 U.S.C. 78s(b)(1).
4(f)(6) requires a self-regulatory organization to give for Use on Bats BYX Exchange, Inc.
2 17 CFR 240.19b–4.
the Commission written notice of its intent to file
the proposed rule change, along with a brief August 7, 2017. 3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
description and text of the proposed rule change, Pursuant to Section 19(b)(1) of the
at least five business days prior to the date of filing Securities Exchange Act of 1934 (the
5 The term ‘‘Member’’ is defined as ‘‘any
of the proposed rule change, or such shorter time registered broker or dealer that has been admitted
as designated by the Commission. The Exchange to membership in the Exchange.’’ See Exchange
has satisfied this requirement. 28 17 CFR 200.30–3(a)(12). Rule 1.5(n).
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![37646 Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices
Exchange currently offers five tiers allocation of reasonable dues, fees and of the purposes of the Act. The
under footnote 1 that offer reduced fees other charges among its Members and Exchange does not believe that this
for displayed orders that yield fee codes other persons using its facilities. change represents a significant
B,6 V 7 and Y,8 and an enhanced rebate The Exchange believes that the departure from previous pricing offered
for orders that remove liquidity yielding proposed tier under footnote 1is [sic] by the Exchange or from pricing offered
fee codes BB,9 N 10 and W.11 The equitable and reasonable because such by the Exchange’s competitors. The
Exchange proposes to amend the criteria pricing programs reward a Member’s proposed rates would apply uniformly
necessary to receive the enhanced rebate growth pattern on the Exchange and to all Members, and Members may opt
under Tier 3 under footnote 1. Tier 3 such increased volume will allow the to disfavor the Exchange’s pricing if
provides a rebate of $0.0015 [sic] per Exchange to continue to provide and they believe that alternatives offer them
share for orders where that Member has potentially expand the its incentive better value. Accordingly, the Exchange
an ADAV 12 equal to or greater than programs. The Exchange believes that does not believe that the proposed
0.55% of the TCV.13 The Exchange providing the same reduced rate to changes will impair the ability of
proposes to increase the tier’s Members under Tiers 3 and 5 while Members or competing venues to
requirements to now require the requiring more stringent requirements maintain their competitive standing in
Member to have an ADAV equal to or under Tier 3 than Tier 5 is equitable and the financial markets. Further, excessive
greater than 0.80% of the TCV. The reasonable as the proposed criteria fees would serve to impair an
Exchange does not propose to amend reasonable [sic] reflect the segment of exchange’s ability to compete for order
the tier’s rebate. the Member’s order flow that is to be flow and members rather than
The Exchange also proposes to add a measured. Under Tier 3, the Member as burdening competition. The Exchange
new tier under footnote 1, to be known a whole must meet a higher standard believes that its proposal would not
as Tier 5,14 under which a Member than their individual MPID under Tier burden intramarket competition because
would be charged a reduced fee of 5. The Exchange believes this is the proposed rate would apply
$0.0012 per share on orders that yield equitable and reasonable because a uniformly to all Members.
fee codes B, V and Y, where that Member may have multiple MPIDs that
Member’s Market Participant Identifier it may aggregate volume across to meet (C) Self-Regulatory Organization’s
(‘‘MPID’’) has an ADAV equal to or Tier 3’s criteria, while Tier 5 is limited Statement on Comments on the
greater than 0.55% of the TCV. to the individual MPID. The Exchange Proposed Rule Change Received From
The Exchange proposes to implement further believes that the proposed tier Members, Participants or Others
the above changes to its fee schedule on and modifications are reasonable, fair The Exchange has not solicited, and
August 1, 2017. and equitable because the liquidity from does not intend to solicit, comments on
2. Statutory Basis the proposed changes would benefit all this proposed rule change. The
investors by deepening the Exchange’s Exchange has not received any
The Exchange believes that the liquidity pool, offering additional
proposed rule change is consistent with unsolicited written comments from
flexibility for all investors to enjoy cost
the objectives of Section 6 of the Act,15 Members or other interested parties.
savings, supporting the quality of price
in general, and furthers the objectives of discovery, promoting market III. Date of Effectiveness of the
Section 6(b)(4),16 in particular, as it is transparency and improving investor Proposed Rule Change and Timing for
designed to provide for the equitable protection. These pricing programs are Commission Action
also not unfairly discriminatory in that
6 Fee code B is appended to displayed orders that
it is available to all Members. The foregoing rule change has become
add liquidity to BYX (Tape B) and is assessed a fee
In addition, volume-based fees such effective pursuant to Section 19(b)(3)(A)
of $0.0018 per share. See the Exchange’s fee of the Act 17 and paragraph (f) of Rule
schedule available at http://www.bats.com/us/ as that proposed herein have been
equities/membership/fee_schedule/byx/. widely adopted by exchanges and are 19b–4 thereunder.18 At any time within
7 Fee code V is appended to displayed orders that
equitable because they are open to all 60 days of the filing of the proposed rule
add liquidity to BYX (Tape A) and is assessed a fee Members on an equal basis and provide change, the Commission summarily may
of $0.0018 per share. Id. temporarily suspend such rule change if
8 Fee code Y is appended to displayed orders that additional benefits or discounts that are
reasonably related to: (i) The value to an it appears to the Commission that such
add liquidity to BYX (Tape C) and is assessed a fee
of $0.0018 per share. Id. exchange’s market quality; (ii) action is necessary or appropriate in the
9 Fee code BB is appended to orders that remove
associated higher levels of market public interest, for the protection of
liquidity from BYX (Tape B) and is assessed a
activity, such as higher levels of investors, or otherwise in furtherance of
rebate of $0.0010 per share. Id. the purposes of the Act.
10 Fee code N is appended to orders that remove liquidity provision and/or growth
liquidity from BYX (Tape C) and is assessed a patterns; and (iii) the introduction of IV. Solicitation of Comments
rebate of $0.0010 per share. Id. higher volumes of orders into the price
11 Fee code W is appended to orders that remove
and volume discovery processes. The Interested persons are invited to
liquidity from BYX (Tape A) and is assessed a submit written data, views and
rebate of $0.0010 per share. See the Exchange’s fee
Exchange believes that the proposed tier
schedule available at http://www.bats.com/us/ is a reasonable, fair and equitable, and arguments concerning the foregoing,
equities/membership/fee_schedule/byx/. not an unfairly discriminatory including whether the proposed rule
12 ‘‘ADAV’’ means average daily volume
allocation of fees and rebates, because it change is consistent with the Act.
calculated as the number of shares added per day
will provide Members with an Comments may be submitted by any of
on a monthly basis. Id. the following methods:
asabaliauskas on DSKBBXCHB2PROD with NOTICES
13 ‘‘TCV’’ means total consolidated volume additional incentive to reach certain
calculated as the volume reported by all exchanges thresholds on the Exchange. Electronic Comments
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which (B) Self-Regulatory Organization’s • Use the Commission’s Internet
the fees apply. Id. Statement on Burden on Competition comment form (http://www.sec.gov/
14 With the addition of proposed Tier 5 under
footnote 1, the Exchange proposes to renumber
The Exchange does not believe that rules/sro.shtml); or
current Tier 5 as Tier 6. the proposed rule change will impose
15 15 U.S.C. 78f. any burden on competition not 17 15 U.S.C. 78s(b)(3)(A).
16 15 U.S.C. 78f(b)(4). necessary or appropriate in furtherance 18 17 CFR 240.19b–4(f).
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![Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37647
• Send an email to rule-comments@ SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR– COMMISSION Statement of the Purpose of, and
BatsBYX–2017–17 on the subject line. Statutory Basis for, the Proposed Rule
[Release No. 34–81327; File No. SR–C2–
Change
Paper Comments 2017–023]
1. Purpose
• Send paper comments in triplicate Self-Regulatory Organizations; C2
The Exchange is proposing to adopt
to Secretary, Securities and Exchange Options Exchange, Incorporated;
new Rule 6.49 related to its existing C2
Commission, 100 F Street NE., Notice of Filing and Immediate
Trade Match System (‘‘CTM’’)
Washington, DC 20549–1090. Effectiveness of a Proposed Rule
functionality. CTM is a systems user
Change To Adopt Rule 6.49, C2 Trade
All submissions should refer to File interface provided by the Exchange in
Match System
Number SR–BatsBYX–2017–17. This which authorized Trading Permit
file number should be included on the August 7, 2017. Holders (‘‘TPHs’’) may receive copies of
subject line if email is used. To help the Pursuant to Section 19(b)(1) of the trade records and add and/or update
Securities Exchange Act of 1934 (the their trade records. Although references
Commission process and review your
‘‘Act’’),1 and Rule 19b–4 thereunder,2 to CTM exist within Regulatory
comments more efficiently, please use Circulars, the functionality is not
only one method. The Commission will notice is hereby given that on August 4,
2017, C2 Options Exchange, currently described in Exchange rules.
post all comments on the Commission’s The Exchange believes it would be
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
Internet Web site (http://www.sec.gov/ beneficial to address and provide
filed with the Securities and Exchange
rules/sro.shtml). Copies of the further detail in its rules regarding the
Commission (the ‘‘Commission’’) the
submission, all subsequent CTM functionality and permitted uses.
proposed rule change as described in
amendments, all written statements Items I and II below, which Items have Post-trade modifications may be
with respect to the proposed rule been prepared by the Exchange. The effected via the CTM system. A rule
change that are filed with the Exchange filed the proposal as a ‘‘non- explicitly detailing the modification
Commission, and all written controversial’’ proposed rule change process and defining what permitted
communications relating to the pursuant to Section 19(b)(3)(A)(iii) of modifications are allowed does not
proposed rule change between the the Act 3 and Rule 19b–4(f)(6) currently exist in the Exchange’s rules.
Commission and any person, other than thereunder.4 The Commission is The Exchange believes it would be
those that may be withheld from the publishing this notice to solicit useful to explicitly reference within the
public in accordance with the comments on the proposed rule change rule text the term ‘‘CTM’’ and codify
provisions of 5 U.S.C. 552, will be from interested persons. what post trade modifications via CTM
available for Web site viewing and are permitted to reduce confusion and
I. Self-Regulatory Organization’s add additional transparency to the rules
printing in the Commission’s Public
Statement of the Terms of Substance of regarding C2’s systems.
Reference Room, 100 F Street NE., the Proposed Rule Change First, the Exchange proposes to
Washington, DC 20549, on official explicitly reference and describe
business days between the hours of The Exchange is proposing to adopt
new Rule 6.49 related to its existing C2 ‘‘CTM.’’ Specifically, CTM is a system
10:00 a.m. and 3:00 p.m. Copies of such in which authorized TPHs may enter
filing will also be available for Trade Match System (‘‘CTM’’)
functionality. and report transactions that have been
inspection and copying at the principal effected on the Exchange in accordance
The text of the proposed rule change
office of the Exchange. All comments with Exchange rules or to correct bona
is also available on the Exchange’s Web
received will be posted without change; fide errors (e.g., a situation in which a
site (http://www.cboe.com/AboutCBOE/
the Commission does not edit personal CBOELegalRegulatoryHome.aspx), at transaction was incorrectly reported as
identifying information from the Exchange’s Office of the Secretary, an opening transaction). Documentation
submissions. You should submit only and at the Commission’s Public requirements related to changes made
information that you wish to make Reference Room. through the use of CTM will be
available publicly. All submissions announced via a Regulatory Circular.
should refer to File Number SR– II. Self-Regulatory Organization’s By way of background, C2 Rule 6.38
BatsBYX–2017–17 and shouldbe Statement of the Purpose of, and requires that for all transactions made
submitted on or before September 1, Statutory Basis for, the Proposed Rule on the Exchange, TPHs must file with
2017. Change the Exchange certain trade information 5
In its filing with the Commission, the in order to allow the Exchange to
For the Commission, by the Division of properly match and clear trades. This
Trading and Markets, pursuant to delegated Exchange included statements
concerning the purpose of and basis for information is used to provide the
authority.19 comparison of the two sides (i.e., buy
the proposed rule change and discussed
Eduardo A. Aleman, and sell) of a transaction. When the two
any comments it received on the
Assistant Secretary. proposed rule change. The text of these sides match, the trade is successfully
[FR Doc. 2017–16929 Filed 8–10–17; 8:45 am] statements may be examined at the compared and will move on to the
BILLING CODE 8011–01–P places specified in Item IV below. The Options Clearing Corporation (‘‘OCC’’)
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Exchange has prepared summaries, set for clearance. For trades that do not
forth in sections A, B, and C below, of match (i.e., trade information from each
the most significant aspects of such side do not match) TPHs and their
statements. respective representatives typically
make reasonable efforts to resolve
1 15 U.S.C. 78s(b)(1). unmatched trades on trade day. The
2 17 CFR 240.19b–4. Exchange notes that CTM may be used
3 15 U.S.C. 78s(b)(3)(A)(iii).
19 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6). 5 See C2 Rule 6.38.
VerDate Sep<11>2014 17:18 Aug 10, 2017 Jkt 241001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 E:\FR\FM\11AUN1.SGM 11AUN1](https://thefederalregister.org/doc/82_FR_37799/page/3.svg)
Document Created: 2018-10-24 11:46:26
Document Modified: 2018-10-24 11:46:26
| 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 37645 |
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