82 FR 43802 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trade Centers, To Account for IEX as a Primary Listing Market and To Amend Certain Rules To Reflect the Name Change of NYSE MKT to NYSE American

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 180 (September 19, 2017)

Page Range		43802-43803
FR Document		2017-19805
Federal Register, Volume 82 Issue 180 (Tuesday, September 19, 2017)
[Federal Register Volume 82, Number 180 (Tuesday, September 19, 2017)]
[Notices]
[Pages 43802-43803]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19805]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81596; File No. SR-BatsEDGX-2017-37]


Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend Rule 11.11, Routing to Away Trade Centers, To Account for IEX as 
a Primary Listing Market and To Amend Certain Rules To Reflect the Name 
Change of NYSE MKT to NYSE American

September 13, 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 September 6, 2017, Bats EDGX Exchange, Inc. (the ``Exchange'' 
or ``EDGX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 paragraphs (g)(8) and 
(g)(14) of Rule 11.11, Routing to Away Trade Centers, to expand the 
ability of Users \5\ to designate their orders for participation in the 
opening, re-opening (following a halt, suspension, or pause), or 
closing process of a primary listing market other than the Exchange 
(NYSE, Nasdaq, NYSE MKT, or NYSE Arca) to include the Investors 
Exchange LLC (``IEX''). The Exchange also proposes to amend paragraphs 
(g)(8) and (g)(14) of Rule 11.11 as well as Rules 11.7(c)(1) and 
13.4(a) to reflect the name change of NYSE MKT to NYSE American.
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    \5\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
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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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Exchange Rule 11.11(g)(8) describes the ROOC routing option, under 
which Users may designate their orders for participation in the opening 
or closing process, in addition to the re-opening (following a halt, 
suspension, or pause), of a primary listing market other than the 
Exchange, if received before the opening/re-opening/closing time of 
such market.\6\ Under Exchange Rule 11.11(g)(8), Users may also elect 
that their orders be routed to participate in the primary market's re-
opening process, and not its opening or closing processes. Any 
remaining shares are either posted to the EDGX Book,\7\ executed, or 
routed to destinations on the System routing table.\8\
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    \6\ See Exchange Rule 11.11(g)(8).
    \7\ The term ``EDGX Book'' is defined as ``the System's 
electronic file of orders.'' See Exchange Rule 1.5(d).
    \8\ The term ``System routing table'' refers to the proprietary 
process for determining the specific options exchanges to which the 
System routes orders and the order in which it routes them. See 
Exchange Rule 11.11(g).
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    IEX announced that it intends to become a primary listing exchange 
and support IEX-listed companies beginning in October 2017.\9\ At that 
time, the Exchange will enable Users to elect that their orders in IEX-
listed securities be routed to IEX to participate in IEX's opening, re-
opening (following a halt, suspension, or pause), or closing

[[Page 43803]]

process. Therefore, the Exchange proposes to amend paragraphs (g)(8) 
and (g)(14) of Rule 11.11 to include IEX as a primary listing market to 
which Users may designate their orders be routed.
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    \9\ See IEX Trading Alert #2017-05, Listing Specifications, 
Testing Opportunities, and Timelines, available at https://iextrading.com/trading/alerts/2017/015/. See also Securities 
Exchange Act Release No. 81316 (August 4, 2017), 82 FR 37474 (August 
10, 2017) (SR-IEX-2017-10) (Order approving proposed rule change 
related in auctions in IEX-listed securities, dissemination of 
auction-related data, and provisions governing trading halts and 
pauses).
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    The Exchange also proposes non-substantive amendments to paragraphs 
(g)(8) and (g)(14) of Rule 11.11 as well as Rules 11.7(c)(1) and 
13.4(a)to reflect the name change of NYSE MKT to NYSE American \10\ as 
well as to reflect the name change of BATS Exchange, Inc. to Bats BZX 
Exchange, Inc. as proposed in a previous filing.\11\
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    \10\ See Securities Exchange Act Release No. 80283 (March 21, 
2017), 82 FR 15244 (March 27, 2017) (SR-NYSEMKT-2017-14).
    \11\ See Securities Exchange Act Release No. 77307 (March 7, 
2016), 81 FR 12996 (February 26, 2016) (SR-BATS-2016-25).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \12\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \13\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. As discussed above, IEX 
announced that it intends to become a primary listing exchange and 
support IEX-listed companies beginning in October 2017.\14\ Certain 
Users whose orders in IEX-listed securities are resting on the EDGX 
Book may wish that their order only be routed to participate in IEX's 
opening, closing, or re-opening process. The proposed rule changes 
promote just and equitable principles of trade because they would 
provide such Users with additional flexibility with regard to their 
orders in IEX-listed securities.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ See supra note 9.
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    The non-substantive amendments to paragraphs (g)(8) and (g)(14) of 
Rule 11.11 as well as Rules 11.7(c)(1) and 13.4(a) to reflect the name 
change of NYSE MKT to NYSE American and BATS Exchange, Inc. to Bats BZX 
Exchange, Inc. also removes impediments to and perfect the mechanism of 
a free and open market and a national market system because it updates 
the rule to reflect the name change and does not alter the way in which 
orders in NYSE American listed securities are handled and routed.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes that its proposal would 
increase competition because it offers Users an alternative means to 
route orders to participate in IEX's opening, closing, and re-opening 
following a halt, suspension, or pause as if they entered orders on 
that market directly.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (A) 
Significantly affect the protection of investors or the public 
interest; (B) impose any significant burden on competition; and (C) by 
its terms, become operative for 30 days from the date on which it was 
filed or such shorter time as the Commission may designate it has 
become effective pursuant to Section 19(b)(3)(A) of the Act \15\ and 
paragraph (f)(6) of Rule 19b-4 thereunder,\16\ the Exchange has 
designated this rule filing as non-controversial. The Exchange has 
given the Commission written notice of its intent to file the proposed 
rule change, along with a brief description and text of the proposed 
rule change at least five business days prior to the date of filing of 
the proposed rule change, or such shorter time as designated by the 
Commission.
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4.
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    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: (1) 
Necessary or appropriate in the public interest; (2) for the protection 
of investors; or (3) 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 proposal 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 rule-comments@sec.gov. Please include 
File No. SR-BatsEDGX-2017-37 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-BatsEDGX-2017-37. 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 No. SR-BatsEDGX-2017-37 and should be 
submitted on or before October 10, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
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    \17\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-19805 Filed 9-18-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 180 / Tuesday, September 19, 2017 / Notices 43803

process. Therefore, the Exchange (B) Self-Regulatory Organization’s including whether the proposal is
proposes to amend paragraphs (g)(8) and Statement on Burden on Competition consistent with the Act. Comments may
(g)(14) of Rule 11.11 to include IEX as The Exchange does not believe that be submitted by any of the following
a primary listing market to which Users the proposal will impose any burden on methods:
may designate their orders be routed. competition not necessary or Electronic Comments
The Exchange also proposes non- appropriate in furtherance of the
substantive amendments to paragraphs purposes of the Act. The Exchange • Use the Commission’s Internet
(g)(8) and (g)(14) of Rule 11.11 as well believes that its proposal would comment form (http://www.sec.gov/
as Rules 11.7(c)(1) and 13.4(a)to reflect increase competition because it offers rules/sro.shtml); or
the name change of NYSE MKT to NYSE Users an alternative means to route • Send an email to rule-comments@
American 10 as well as to reflect the orders to participate in IEX’s opening, sec.gov. Please include File No. SR–
name change of BATS Exchange, Inc. to closing, and re-opening following a halt, BatsEDGX–2017–37 on the subject line.
Bats BZX Exchange, Inc. as proposed in suspension, or pause as if they entered
a previous filing.11 orders on that market directly. Paper Comments

2. Statutory Basis (C) Self-Regulatory Organization’s • Send paper comments in triplicate
Statement on Comments on the to Secretary, Securities and Exchange
The Exchange believes that its Proposed Rule Change Received From Commission, 100 F Street NE.,
proposal is consistent with Section 6(b) Members, Participants or Others Washington, DC 20549–1090.
of the Act 12 in general, and furthers the The Exchange has neither solicited
objectives of Section 6(b)(5) of the Act 13 All submissions should refer to File No.
nor received written comments on the SR–BatsEDGX–2017–37. This file
in particular, in that it is designed to proposed rule change.
promote just and equitable principles of number should be included on the
trade, to foster cooperation and III. Date of Effectiveness of the subject line if email is used. To help the
Proposed Rule Change and Timing for Commission process and review your
coordination with persons engaged in
Commission Action comments more efficiently, please use
facilitating transactions in securities, to
Because the foregoing proposed rule only one method. The Commission will
remove impediments to and perfect the
change does not: (A) Significantly affect post all comments on the Commission’s
mechanism of a free and open market
the protection of investors or the public Internet Web site (http://www.sec.gov/
and a national market system and, in
interest; (B) impose any significant rules/sro.shtml). Copies of the
general, to protect investors and the
burden on competition; and (C) by its submission, all subsequent
public interest. As discussed above, IEX
terms, become operative for 30 days amendments, all written statements
announced that it intends to become a
from the date on which it was filed or with respect to the proposed rule
primary listing exchange and support
such shorter time as the Commission change that are filed with the
IEX-listed companies beginning in
may designate it has become effective Commission, and all written
October 2017.14 Certain Users whose communications relating to the
orders in IEX-listed securities are resting pursuant to Section 19(b)(3)(A) of the
Act 15 and paragraph (f)(6) of Rule 19b– proposed rule change between the
on the EDGX Book may wish that their Commission and any person, other than
order only be routed to participate in 4 thereunder,16 the Exchange has
designated this rule filing as non- those that may be withheld from the
IEX’s opening, closing, or re-opening public in accordance with the
process. The proposed rule changes controversial. The Exchange has given
the Commission written notice of its provisions of 5 U.S.C. 552, will be
promote just and equitable principles of available for Web site viewing and
trade because they would provide such intent to file the proposed rule change,
along with a brief description and text printing in the Commission’s Public
Users with additional flexibility with Reference Room, 100 F Street NE.,
regard to their orders in IEX-listed of the proposed rule change at least five
business days prior to the date of filing Washington, DC 20549, on official
securities. business days between the hours of
of the proposed rule change, or such
The non-substantive amendments to shorter time as designated by the 10:00 a.m. and 3:00 p.m. Copies of such
paragraphs (g)(8) and (g)(14) of Rule Commission. filing will also be available for
11.11 as well as Rules 11.7(c)(1) and At any time within 60 days of the inspection and copying at the principal
13.4(a) to reflect the name change of filing of the proposed rule change, the office of the Exchange. All comments
NYSE MKT to NYSE American and Commission summarily may received will be posted without change;
BATS Exchange, Inc. to Bats BZX temporarily suspend such rule change if the Commission does not edit personal
Exchange, Inc. also removes it appears to the Commission that such identifying information from
impediments to and perfect the action is: (1) Necessary or appropriate in submissions. You should submit only
mechanism of a free and open market the public interest; (2) for the protection information that you wish to make
and a national market system because it of investors; or (3) otherwise in available publicly. All submissions
updates the rule to reflect the name furtherance of the purposes of the Act. should refer to File No. SR–BatsEDGX–
change and does not alter the way in If the Commission takes such action, the 2017–37 and should be submitted on or
which orders in NYSE American listed Commission shall institute proceedings before October 10, 2017.
securities are handled and routed. to determine whether the proposed rule For the Commission, by the Division of
asabaliauskas on DSKBBXCHB2PROD with NOTICES

should be approved or disapproved. Trading and Markets, pursuant to delegated
10 See Securities Exchange Act Release No. 80283
authority.17
(March 21, 2017), 82 FR 15244 (March 27, 2017) IV. Solicitation of Comments
(SR–NYSEMKT–2017–14). Eduardo A. Aleman,
Interested persons are invited to
11 See Securities Exchange Act Release No. 77307 Assistant Secretary.
(March 7, 2016), 81 FR 12996 (February 26, 2016) submit written data, views and
[FR Doc. 2017–19805 Filed 9–18–17; 8:45 am]
(SR–BATS–2016–25). arguments concerning the foregoing,
12 15 U.S.C. 78f(b). BILLING CODE 8011–01–P
13 15 U.S.C. 78f(b)(5). 15 15 U.S.C. 78s(b)(3)(A).
14 See supra note 9. 16 17 CFR 240.19b–4. 17 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 17:12 Sep 18, 2017 Jkt 241001 PO 00000 Frm 00066 Fmt 4703 Sfmt 9990 E:\FR\FM\19SEN1.SGM 19SEN1
Document Created: 2018-10-24 14:19:28
Document Modified: 2018-10-24 14:19:28
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 43802