82 FR 38972 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats EDGA Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 157 (August 16, 2017)

Page Range		38972-38973
FR Document		2017-17274
Federal Register, Volume 82 Issue 157 (Wednesday, August 16, 2017)
[Federal Register Volume 82, Number 157 (Wednesday, August 16, 2017)]
[Notices]
[Pages 38972-38973]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17274]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81369; File No. SR-BatsEDGA-2017-20]


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

August 10, 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 EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

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

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

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

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

1. Purpose
    The Exchange proposes to amend its fee schedule to increase the fee 
for orders in securities priced at or above $1.00 that yield fee code 
RT.\6\ Fee code RT is appended to orders that are routed using a ROUT 
\7\ routing strategy. ROUT is a routing strategy that checks the System 
\8\ for available shares and it then sent to destinations on the System 
Routing Table.\9\ The Exchange proposes to increase the fee charged for 
orders that yield fee code RT from $0.00250 to $0.00260 per share. The 
Exchange proposes to implement this amendment to its fee schedule 
August 1, 2017.\10\
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    \6\ The Exchange does not propose to amend the fees for orders 
yielding fee code RT in securities priced below $1.00.
    \7\ See Exchange Rule 11.11(g)(3).
    \8\ The term ``System'' is defined as the electronic 
communications and trading facility designated by the Board through 
which securities orders of Users are consolidated for ranking, 
execution and, when applicable, routing away. See Exchange Rule 
1.5(cc).
    \9\ The System Routing Table refers to the proprietary process 
for determining the specific trading venues to which the System 
routes orders and the order in which it routes them. See Exchange 
Rule 11.11(g). See also Exchange Rule 11.11(g)(3).
    \10\ By way of background, on May 1, 2017, the Exchange 
previously charged $0.00250 per share for orders in securities 
priced at or above $1.00 that yield fee code RT. See Securities 
Exchange Act Release Nos. 80653 (May 11, 2017), 82 FR 22685 (May 17, 
2017) (SR-BatsEDGA-2017-12); and 79305 (November 14, 2016), 81 FR 
81892 (November 18, 2016) (SR-BatsEDGA-2016-26).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\11\ in general, and 
furthers the objectives of Section 6(b)(4),\12\ 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.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that its proposal to increase the fee for 
orders that yield fee code RT represents an equitable allocation of 
reasonable dues, fees, and other charges among Members and other 
persons using its facilities in that they are designed in part to cover 
the costs of routing. While the affected Members' orders will be 
charged higher fees due to the proposal, the increased revenue received 
by the Exchange will be used to fund the Exchange generally, including 
the cost of maintaining and improving the technology used to handle and 
route orders from the Exchange as well as programs that the Exchange 
believes help to attract additional liquidity and thus improve the 
depth of liquidity available on the Exchange. Accordingly, although the 
cost of routing is increasing, the Exchange believes that he increase 
is modest and that higher routing fees will benefit Members in other 
ways. Furthermore, the Exchange notes that routing through the Exchange 
is voluntary. Lastly, the Exchange also believes that the proposed 
amendment is non-discriminatory because it applies uniformly to all 
Members.

B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange does not believe that the

[[Page 38973]]

change to fee code RT represents a significant departure from previous 
pricing offered by the Exchange or from pricing offered by the 
Exchange's competitors. Additionally, 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. The 
Exchange believes that its proposal would not burden intramarket 
competition because the proposed rates 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 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 \13\ and paragraph (f) of Rule 19b-4 
thereunder.\14\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BatsEDGA-2017-20 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BatsEDGA-2017-20. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-BatsEDGA-2017-20, and should be 
submitted on or before September 6, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-17274 Filed 8-15-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 157 / Wednesday, August 16, 2017 / Notices 38973

change to fee code RT represents a All submissions should refer to File No. (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
significant departure from previous SR–BatsEDGA–2017–20. This file notice is hereby given that, on July 28,
pricing offered by the Exchange or from number should be included on the 2017, NYSE Arca, Inc. (‘‘Exchange’’ or
pricing offered by the Exchange’s subject line if email is used. To help the ‘‘NYSE Arca’’) filed with the Securities
competitors. Additionally, Members Commission process and review your and Exchange Commission
may opt to disfavor the Exchange’s comments more efficiently, please use (‘‘Commission’’) the proposed rule
pricing if they believe that alternatives only one method. The Commission will change as described in Items I and II
offer them better value. Accordingly, the post all comments on the Commission’s below, which Items have been prepared
Exchange does not believe that the Internet Web site (http://www.sec.gov/ by the self-regulatory organization. The
proposed changes will impair the ability rules/sro.shtml). Copies of the Commission is publishing this notice to
of Members or competing venues to submission, all subsequent solicit comments on the proposed rule
maintain their competitive standing in amendments, all written statements change from interested persons.
the financial markets. The Exchange with respect to the proposed rule I. Self-Regulatory Organization’s
believes that its proposal would not change that are filed with the Statement of the Terms of Substance of
burden intramarket competition because Commission, and all written the Proposed Rule Change
the proposed rates would apply communications relating to the
uniformly to all Members. proposed rule change between the The Exchange proposes to amend
Commission and any person, other than NYSE Arca Equities Rule 8.700 to add
C. Self-Regulatory Organization’s EURO STOXX 50 Volatility Index
Statement on Comments on the those that may be withheld from the
public in accordance with the (VSTOXX®) futures to the financial
Proposed Rule Change Received From instruments that an issue of Managed
Members, Participants, or Others provisions of 5 U.S.C. 552, will be
available for Web site viewing and Trust Securities may hold; and (2) to list
The Exchange has not solicited, and printing in the Commission’s Public and trade shares of the ProShares
does not intend to solicit, comments on Reference Room, 100 F Street NE., European Volatility Futures ETF under
this proposed rule change. The Washington, DC 20549, on official proposed amended NYSE Arca Equities
Exchange has not received any written business days between the hours of Rule 8.700. The proposed change is
comments from members or other 10:00 a.m. and 3:00 p.m. Copies of the available on the Exchange’s Web site at
interested parties. filing also will be available for www.nyse.com, at the principal office of
inspection and copying at the principal the Exchange, and at the Commission’s
III. Date of Effectiveness of the
Public Reference Room.
Proposed Rule Change and Timing for office of the Exchange. All comments
Commission Action received will be posted without change; II. Self-Regulatory Organization’s
The foregoing rule change has become the Commission does not edit personal Statement of the Purpose of, and
effective pursuant to Section 19(b)(3)(A) identifying information from Statutory Basis for, the Proposed Rule
of the Act 13 and paragraph (f) of Rule submissions. You should submit only Change
19b–4 thereunder.14 At any time within information that you wish to make In its filing with the Commission, the
60 days of the filing of the proposed rule available publicly. All submissions self-regulatory organization included
change, the Commission summarily may should refer to File No. SR–BatsEDGA– statements concerning the purpose of,
temporarily suspend such rule change if 2017–20, and should be submitted on or and basis for, the proposed rule change
it appears to the Commission that such before September 6, 2017. and discussed any comments it received
action is necessary or appropriate in the For the Commission, by the Division of on the proposed rule change. The text
public interest, for the protection of Trading and Markets, pursuant to delegated of those statements may be examined at
investors, or otherwise in furtherance of authority.15 the places specified in Item IV below.
the purposes of the Act. Robert W. Errett, The Exchange has prepared summaries,
Deputy Secretary. set forth in sections A, B, and C below,
IV. Solicitation of Comments
[FR Doc. 2017–17274 Filed 8–15–17; 8:45 am] of the most significant parts of such
Interested persons are invited to statements.
BILLING CODE 8011–01–P
submit written data, views, and
arguments concerning the foregoing, A. Self-Regulatory Organization’s
including whether the proposed rule Statement of the Purpose of, and the
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
change is consistent with the Act. COMMISSION
Comments may be submitted by any of Change
the following methods: [Release No. 34–81373; File No. SR– 1. Purpose
NYSEArca–2017–85]
Electronic Comments NYSE Arca Equities Rule 8.700
• Use the Commission’s Internet Self-Regulatory Organizations; NYSE permits the trading of Managed Trust
comment form (http://www.sec.gov/ Arca, Inc.; Notice of Filing of Proposed Securities either by listing or pursuant
rules/sro.shtml); or Rule Change To Amend NYSE Arca to unlisted trading privileges (‘‘UTP’’).3
• Send an email to rule-comments@ Equities Rule 8.700 To Reference
2 15 U.S.C. 78a.
sec.gov. Please include File No. SR– EURO STOXX 50 Volatility Index
3 17 CFR 240.19b–4.
BatsEDGA–2017–20 on the subject line. Futures and To List and Trade Shares
asabaliauskas on DSKBBXCHB2PROD with NOTICES

3 Managed Trust Security means a security that is
of the ProShares European Volatility
Paper Comments registered under the Securities Act of 1933 (15
Futures ETF U.S.C. 77a), as amended (the ‘‘Securities Act’’), is
• Send paper comments in triplicate issued by a trust that (1) is a commodity pool as
to Secretary, Securities and Exchange August 10, 2017. defined in the Commodity Exchange Act (7 U.S.C.
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) 1 of the 1) (the ‘‘CEA’’), and that is managed by a
Securities Exchange Act of 1934 commodity pool operator registered with the
Washington, DC 20549–1090. Commodity Futures Trading Commission (the
‘‘CFTC’’), and (2) holds long and/or short positions
13 15 U.S.C. 78s(b)(3)(A). 15 17 CFR 200.30–3(a)(12). in exchange-traded futures contracts and/or certain
14 17 CFR 240.19b–4(f). 1 15 U.S.C.78s(b)(1). Continued

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Document Created: 2017-08-16 10:27:07
Document Modified: 2017-08-16 10:27:07
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 38972