82 FR 4442 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Fees for Connectivity and Its Communication and Routing Service Known as Bats Connect
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 9 (January 13, 2017)
Federal Register Volume 82, Issue 9 (January 13, 2017)
| Page Range | 4442-4445 | |
| FR Document | 2017-00610 |
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)] [Notices] [Pages 4442-4445] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00610] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79761; File No. SR-BatsEDGX-2016-75] Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Fees for Connectivity and Its Communication and Routing Service Known as Bats Connect January 9, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on December 27, 2016, Bats EDGX Exchange, Inc. (``Exchange'' or ``EDGX'') 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 EDGX Rules 15.1(a) and (c) to modify its fees for its equity options platform (``EDGX Options'') for physical ports and for the use of a communication and routing service known as Bats Connect. --------------------------------------------------------------------------- \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 the fee schedule for EDGX Options to modify its fees for physical ports and for the use of a communication and routing service known as Bats Connect. Each of these proposed changes are described below. Physical Ports A physical port is utilized by a Member or non-Member to connect to the Exchange at the data centers where the Exchange's servers are located. The Exchange currently maintains a presence in two third-party data centers: (i) The primary data center where the Exchange's business is primarily conducted on a daily basis, and (ii) a secondary data center, which is predominantly maintained for business continuity purposes. The Exchange currently assesses the following physical connectivity fees for Members and non-Members on a monthly basis: $2,000 per physical port that connects to the System \6\ via 1 gigabyte circuit; and $4,000 per physical port that connects to the System via 10 gigabyte circuit. The Exchange proposes to increase the fee per physical port that connects to the System via a 10 gigabyte circuit from $4,000 per month to $6,000 per month in order cover its increased infrastructure costs associated with establishing physical ports to connect to the Exchange's Systems and enable it to continue to maintain and improve its market technology and services. The Exchange does not propose to amend the fee for a 1 gigabyte circuit, which will remain $2,000 per month. --------------------------------------------------------------------------- \6\ The term ``System'' is defined as ``the automated trading system used by EDGX Options for the trading of options contracts.'' See Exchange Rule 11.16(a)(59) [sic]. --------------------------------------------------------------------------- Bats Connect The Exchange proposes to increase select fees related to the use of Bats Connect. Bats Connect is offered by the Exchange on a voluntary basis in a capacity similar to a vendor.\7\ In sum, Bats Connect is a communication service that provides subscribers an additional means to receive market data from and route orders to any destination connected to the Exchange's network. Bats Connect does not provide any advantage to subscribers for connecting to the Exchange's affiliates \8\ as compared to other methods of connectivity. The servers of the subscriber need not be located in the same facilities as the Exchange in order to subscribe to Bats Connect. Subscribers may also seek to utilize Bats Connect in the event of a market disruption where other alternative connection methods become unavailable. --------------------------------------------------------------------------- \7\ See Exchange Rule 13.9. \8\ The Exchange's affiliated exchanges are Bats EDGA Exchange, Inc. (``EDGA''), Bats BYX Exchange, Inc. (``BYX''), and Bats BZX Exchange, Inc. (``BZX''). --------------------------------------------------------------------------- The Exchange charges a monthly connectivity fee to subscribers utilizing Bats Connect to route orders to other exchanges and broker- dealers that are connected to the Exchange's network via unicast access. The amount of the connectivity fee varies based solely on the bandwidth selected by the subscriber. Specifically, as set forth under the Unicast Access--Order Entry section of the fee schedule, the Exchange charges $350 for 1 Mb, $700 for 5 Mb, $950 for 10 Mb, $1,500 for 25 Mb, $2,500 for 50 Mb, and $3,500 for 100 Mb. The Exchange proposes to [[Page 4443]] increase those fees as follows: $500 for 1 Mb, $1,000 for 5 Mb, and $1,250 for 10 Mb. The proposed increases are designed to cover increased costs related to hardware, installation, and testing, as well as increased expenses involved in maintaining and managing the service. The Exchange does not propose to increase the fees for the 25 Mb, 50 Mb and 100 Mb connections as those fees will remain $1,500, $2,500, and $3,500, respectively. Bats Connect also allows subscribers to receive market data feeds from the exchanges connected to the Exchange's network. In such case, the subscriber pays the Exchange a connectivity fee, which are set forth under the Market Data Connectivity section of the fee schedule and vary based solely on the amount of bandwidth required to transmit the selected data product to the subscriber.\9\ The proposed connectivity fees currently range from no charge to $11,500 based on the market data product the subscriber selects. The Exchange proposes to increase select connectivity fees for market data as follows: --------------------------------------------------------------------------- \9\ Subscribers pays any fees charged by the exchange providing the market data feed directly to that exchange. ------------------------------------------------------------------------ Data feed Current fee Proposed fee ------------------------------------------------------------------------ UQDF/UTDF/OMDF.......................... $650 $1,200 CQS/CTS................................. 1,000 1,400 OPRA.................................... 3,500 4,500 Nasdaq TotalView........................ 1,300 1,500 Nasdaq BX TotalView..................... 650 1,000 Nasdaq PSX TotalView.................... 350 750 NYSE Integrated......................... 11,500 14,500 NYSE ArcaBook........................... 1,000 1,250 NYSE MKT OpenBook Ultra................. 150 500 NYSE Alerts............................. 250 500 NYSE Imbalances......................... 100 500 NYSE Arca Trades........................ 250 500 BBDS/TDDS............................... 100 500 ------------------------------------------------------------------------ The proposed increases are designed to allow the Exchange to cover the increased costs related to the amount of bandwidth required to provide connectivity to receive market data as well as the costs of maintaining that infrastructure. The Exchange also charges a discounted fee of $4,160 per month for subscribers who purchase connectivity to a bundle of select market data products, known as the U.S. Equities Select + SIP Bundle. The following market data products are included in the bundle: UQDF/UTDF/OMDF, CQS/ CTS, Nasdaq TotalView, Nasdaq BX TotalView, Nasdaq PSX TotalView, NYSE ArcaBook, NYSE MKT OpenBook Ultra, and BBDS/TTDS.\10\ Absent the discount, a subscriber purchasing connectivity through Bats Connect for each of these market data products would currently pay a total monthly fee of $5,200. Instead, a subscriber who purchases connectivity to each of the above market data products is charged a monthly fee of $4,160, which represents a 20% discount. The Exchange proposes to add NYSE OpenBook Ultra to the bundle. Also, in light of the proposed changes outlined above, the Exchange proposes to increase the discounted rate of the bundle to $5,910 per month, which would now represent a 40% discount from the rate of $9,850 a subscriber purchasing connectivity through Bats Connect for each of these market data products would be charged under the proposed rule change. --------------------------------------------------------------------------- \10\ The Exchange also proposes to correct a typographical error in referencing BBDS/TDDS in its description of the U.S. Equity Select + SIP bundle. --------------------------------------------------------------------------- Lastly, the Exchange proposes to charge a discounted fee of $6,390 per month for subscribers who purchase connectivity to the OPRA, UQDF/ UTDF/OMDF, and CQS/CTS data feeds. Absent the discount, a subscriber purchasing connectivity through Bats Connect for each of these market data products would pay a total monthly fee of $7,100. Instead, a subscriber who purchases connectivity to each of the above market data products is charged a monthly fee of $6,390, which represents a 10% discount. Implementation Date The Exchange proposes to implement this amendment to its fee schedule on January 3, 2017. 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. 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. The proposed rule change reflects a competitive pricing structure designed to incent market participants to direct their order flow to the Exchange. The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members. The Exchange believes the fees and credits remain competitive with those charged by other venues and therefore continue to be reasonable and equitably allocated to Members. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposal represents an equitable allocation of reasonable dues, fees, and other charges as its fees for physical connectivity are reasonably constrained by competitive alternatives. If a particular exchange charges excessive fees for connectivity, affected Members and non-Members may opt to terminate their connectivity arrangements with that exchange, and adopt a possible range of alternative strategies, including routing to the applicable exchange through another participant or market center or taking that exchange's data indirectly. Accordingly, if the Exchange charges excessive fees, it would stand to lose not only connectivity revenues but also revenues associated with the execution of orders routed to it, and, to the extent applicable, market data revenues. The Exchange believes that this competitive dynamic imposes powerful restraints on the ability of any [[Page 4444]] exchange to charge unreasonable fees for connectivity. Furthermore, the proposed rule change is also an equitable allocation of reasonable dues, fees, and other charges as the Exchange believes that the increased fees obtained will enable it to cover its increased infrastructure costs associated with establishing physical ports to connect to the Exchange's Systems. The additional revenue from the increased fees will also enable the Exchange to continue to maintain and improve its market technology and services. Physical Ports The Exchange believes that the proposed fees for a 10 gigabyte circuit of $6,000 per month is reasonable in that they are less than analogous fees charged by the Nasdaq Stock Market LLC (``Nasdaq'') and NYSE Arca, Inc. (``Arca''), which range from $10,000--$15,000 per month for 10 gigabyte circuits.\13\ The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members and non-Members. Members and non-Members will continue to choose whether they want more than one physical port and choose the method of connectivity based on their specific needs. All Exchange Members that voluntarily select various service options will be charged the same amount for the same services. As is true of all physical connectivity, all Members and non-Members have the option to select any connectivity option, and there is no differentiation with regard to the fees charged for the service. --------------------------------------------------------------------------- \13\ See Nasdaq Rule 7034(b) and the Co-Location section of the NYSE Arca fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (dated December 2, 2016). --------------------------------------------------------------------------- Bats Connect The Exchange also believes that its proposed fees for Bats Connect provide for the equitable allocation of reasonable dues, fees and other charges among members and other persons using its facilities. First, the Exchange charges a connectivity fee to subscribers utilizing Bats Connect to route orders to other exchanges and market centers that are connected to the Exchange's network, which varies based solely on the amount of bandwidth selected by the subscriber. The proposed increased connectivity fees remain reasonable and competitive as compared to similar fees charged by other exchanges. For purposes of order routing, the Exchange proposes to now charge $500 for 1 Mb, $1,000 for 5 Mb, and $1,250 for 10 Mb. The New York Stock Exchange, Inc. (``NYSE'') currently charges $300 for 1 Mb, $700 for 5 Mb, and $900 for 10 Mb.\14\ In addition, the proposed rates continue to be less than what a subscriber would pay to connect directly to another exchange.\15\ The Exchange notes that, overall, the connectivity fee for routing of orders to other market centers proposed by the Exchange is similar to that charged by the NYSE. --------------------------------------------------------------------------- \14\ See Section 3.6.1 of NYSE's SFTI Americas Product and Service List available at http://www.nyxdata.com/docs/connectivity. \15\ See e.g., Nasdaq Rule 7034(b) and the NYSE Arca fee schedule available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (dated December 2, 2016). --------------------------------------------------------------------------- Second, with regard to utilizing Bats Connect to receive market data products from other exchanges, the Exchange only charges subscribers a connectivity fee, the amount of which is based solely on the amount of bandwidth required to transmit that specific data product to the subscribers. The Exchange believes it is necessary to increase the rates for select market data feeds as described herein to address changes in bandwidth necessary to receive such feeds. The increased fees will also enable the Exchange to continue to cover the increased infrastructure costs while also enabling it to continue to maintain and improve the service. The amounts of the connectivity fees continue to be reasonable as compared to similar fees charged by other exchanges. For example, for market data connectivity, Nasdaq charges $1,412 per month for CQS/CTS data feed, and the Exchange proposes to charge $1,400 per month connectivity for CQS/CTS data feed.\16\ --------------------------------------------------------------------------- \16\ See Nasdaq Rule 7034 (setting forth Nasdaq's connectivity fees for receipt of third party market data products). --------------------------------------------------------------------------- The Exchange believes it is reasonable to offer such discounted pricing to subscribers who purchase connectivity to a bundle of market data products as it would enable them to reduce their overall connectivity costs for the receipt of market data. The Exchange is not required by any rule or regulation to make Bats Connect available; nor are subscribers required by any rule or regulation to utilize Bats Connect. Accordingly, subscribers can discontinue use at any time and for any reason, including due to an assessment of the reasonableness of fees charged. Moreover, the Exchange believes the proposed fees are reasonable and equitable because they continue to be based on the Exchange's costs to cover the amount of bandwidth required to provide connectivity to the select bundle of data feeds. The proposed fees will continue to allow the Exchange to recoup this cost, while providing subscribers with an alternative means to connect to the select bundle of data feeds at a discounted rate. Lastly, the Exchange believes the proposed fees are reasonable and equitable because they are based on the Exchange's costs to cover hardware, installation, testing and connection, as well as expenses involved in maintaining and managing the service. The proposed fees allow the Exchange to recoup these costs, while providing subscribers with an alternative means to connect to other exchange and market centers. The Exchange believes that the proposed fees are reasonable and equitable in that they reflect the costs and the benefit of providing alternative connectivity. (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. As discussed above, the Exchange believes that fees for connectivity are constrained by the robust competition for order flow among exchanges and non-exchange markets. The Exchange does not believe that the proposed changes represent a significant departure from previous pricing offered by the Exchange or 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. Further, excessive fees for connectivity would serve to impair an exchange's ability to compete for order flow rather than burdening competition. Lastly, the Exchange does not believe the proposed fees for Bats Connect will result in any burden on competition. The proposed rule change is designed to provide subscribers with an alternative means to access other market centers on the Exchange's network if they choose or in the event of a market disruption where other alternative connection methods become unavailable. Bats Connect is not the exclusive method to connect to these market centers and subscribers may utilize alternative methods to connect to the product if they believe the Exchange's proposed pricing is unreasonable or otherwise. Therefore, the Exchange does not believe the proposed rule change will have any effect on competition. [[Page 4445]] (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 Send an email to [email protected]. Please include File Number SR-BatsEDGX-2016-75 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-BatsEDGX-2016-75. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BatsEDGX-2016-75 and should be submitted on or before February 3, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2017-00610 Filed 1-12-17; 8:45 am] BILLING CODE P
![4442 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Notices
fairly intended by the policy and comments on the proposed rule change currently assesses the following
provisions of the Act. Applicants from interested persons. physical connectivity fees for Members
believe that the requested relief meets and non-Members on a monthly basis:
I. Self-Regulatory Organization’s
this standard because, as further $2,000 per physical port that connects
Statement of the Terms of Substance of
explained in the application, the to the System 6 via 1 gigabyte circuit;
the Proposed Rule Change
Investment Management Agreement will and $4,000 per physical port that
remain subject to shareholder approval, The Exchange filed a proposal to connects to the System via 10 gigabyte
while the role of the Sub-Advisers will amend the fee schedule applicable to circuit. The Exchange proposes to
be substantially equivalent to the role of Members5 and non-members of the increase the fee per physical port that
individual portfolio managers, so that Exchange pursuant to EDGX Rules connects to the System via a 10 gigabyte
requiring shareholder approval of Sub- 15.1(a) and (c) to modify its fees for its circuit from $4,000 per month to $6,000
Advisory Agreements would impose equity options platform (‘‘EDGX per month in order cover its increased
unnecessary delays and expenses on the Options’’) for physical ports and for the infrastructure costs associated with
Subadvised Series. Applicants believe use of a communication and routing establishing physical ports to connect to
that the requested relief from the service known as Bats Connect. the Exchange’s Systems and enable it to
Disclosure Requirements meets this The text of the proposed rule change continue to maintain and improve its
standard because it will improve the is available at the Exchange’s Web site market technology and services. The
Adviser’s ability to negotiate fees paid at www.bats.com, at the principal office Exchange does not propose to amend
to the Sub-Advisers that are more of the Exchange, and at the the fee for a 1 gigabyte circuit, which
advantageous for the Subadvised Series. Commission’s Public Reference Room. will remain $2,000 per month.
For the Commission, by the Division of II. Self-Regulatory Organization’s Bats Connect
Investment Management, under delegated Statement of the Purpose of, and
authority. The Exchange proposes to increase
Statutory Basis for, the Proposed Rule select fees related to the use of Bats
Eduardo A. Aleman, Change
Assistant Secretary. Connect. Bats Connect is offered by the
In its filing with the Commission, the Exchange on a voluntary basis in a
[FR Doc. 2017–00628 Filed 1–12–17; 8:45 am]
Exchange included statements capacity similar to a vendor.7 In sum,
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concerning the purpose of and basis for Bats Connect is a communication
the proposed rule change and discussed service that provides subscribers an
SECURITIES AND EXCHANGE any comments it received on the additional means to receive market data
COMMISSION proposed rule change. The text of these from and route orders to any destination
statements may be examined at the connected to the Exchange’s network.
[Release No. 34–79761; File No. SR– places specified in Item IV below. The Bats Connect does not provide any
BatsEDGX–2016–75] Exchange has prepared summaries, set advantage to subscribers for connecting
Self-Regulatory Organizations; Bats forth in Sections A, B, and C below, of to the Exchange’s affiliates 8 as
EDGX Exchange, Inc.; Notice of Filing the most significant parts of such compared to other methods of
and Immediate Effectiveness of a statements. connectivity. The servers of the
Proposed Rule Change To Modify Fees (A) Self-Regulatory Organization’s subscriber need not be located in the
for Connectivity and Its Statement of the Purpose of, and same facilities as the Exchange in order
Communication and Routing Service Statutory Basis for, the Proposed Rule to subscribe to Bats Connect.
Known as Bats Connect Change Subscribers may also seek to utilize Bats
Connect in the event of a market
January 9, 2017. 1. Purpose disruption where other alternative
Pursuant to Section 19(b)(1) of the The Exchange proposes to amend the connection methods become
Securities Exchange Act of 1934 fee schedule for EDGX Options to unavailable.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 modify its fees for physical ports and for The Exchange charges a monthly
notice is hereby given that on December the use of a communication and routing connectivity fee to subscribers utilizing
27, 2016, Bats EDGX Exchange, Inc. service known as Bats Connect. Each of Bats Connect to route orders to other
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the these proposed changes are described exchanges and broker-dealers that are
Securities and Exchange Commission below. connected to the Exchange’s network
(‘‘Commission’’) the proposed rule via unicast access. The amount of the
change as described in Items I, II, and Physical Ports connectivity fee varies based solely on
III below, which Items have been A physical port is utilized by a the bandwidth selected by the
prepared by the Exchange. The Member or non-Member to connect to subscriber. Specifically, as set forth
Exchange has designated the proposed the Exchange at the data centers where under the Unicast Access—Order Entry
rule change as one establishing or the Exchange’s servers are located. The section of the fee schedule, the
changing a member due, fee, or other Exchange currently maintains a Exchange charges $350 for 1 Mb, $700
charge imposed by the Exchange under presence in two third-party data centers: for 5 Mb, $950 for 10 Mb, $1,500 for 25
Section 19(b)(3)(A)(ii) of the Act 3 and (i) The primary data center where the Mb, $2,500 for 50 Mb, and $3,500 for
Rule 19b–4(f)(2) thereunder,4 which Exchange’s business is primarily 100 Mb. The Exchange proposes to
asabaliauskas on DSK3SPTVN1PROD with NOTICES
renders the proposed rule change conducted on a daily basis, and (ii) a
effective upon filing with the secondary data center, which is 6 The term ‘‘System’’ is defined as ‘‘the automated
Commission. The Commission is trading system used by EDGX Options for the
predominantly maintained for business trading of options contracts.’’ See Exchange Rule
publishing this notice to solicit continuity purposes. The Exchange 11.16(a)(59) [sic].
7 See Exchange Rule 13.9.
1 15 U.S.C. 78s(b)(1). 5 The term ‘‘Member’’ is defined as ‘‘any 8 The Exchange’s affiliated exchanges are Bats
2 17 CFR 240.19b–4. registered broker or dealer that has been admitted EDGA Exchange, Inc. (‘‘EDGA’’), Bats BYX
3 15 U.S.C. 78s(b)(3)(A)(ii).
to membership in the Exchange.’’ See Exchange Exchange, Inc. (‘‘BYX’’), and Bats BZX Exchange,
4 17 CFR 240.19b–4(f)(2). Rule 1.5(n). Inc. (‘‘BZX’’).
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![Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Notices 4445
(C) Self-Regulatory Organization’s Commission and any person, other than effective upon filing with the
Statement on Comments on the those that may be withheld from the Commission. The Commission is
Proposed Rule Change Received From public in accordance with the publishing this notice to solicit
Members, Participants or Others provisions of 5 U.S.C. 552, will be comments on the proposed rule change
The Exchange has not solicited, and available for Web site viewing and from interested persons.
does not intend to solicit, comments on printing in the Commission’s Public
Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
this proposed rule change. The Statement of the Terms of Substance of
Exchange has not received any Washington, DC 20549, on official
business days between the hours of the Proposed Rule Change
unsolicited written comments from
Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of the The Exchange filed a proposal to
filing also will be available for amend the fee schedule applicable to
III. Date of Effectiveness of the inspection and copying at the principal Members 5 and non-members of the
Proposed Rule Change and Timing for office of the Exchange. All comments Exchange pursuant to BYX Rules 15.1(a)
Commission Action received will be posted without change; and (c) to modify its fees for physical
The foregoing rule change has become the Commission does not edit personal ports, logical ports, and for the use of a
effective pursuant to Section 19(b)(3)(A) identifying information from communication and routing service
of the Act 17 and paragraph (f) of Rule submissions. You should submit only known as Bats Connect.
19b–4 thereunder.18 At any time within information that you wish to make The text of the proposed rule change
60 days of the filing of the proposed rule available publicly. All submissions is available at the Exchange’s Web site
change, the Commission summarily may should refer to File Number SR– at www.batstrading.com, at the
temporarily suspend such rule change if BatsEDGX–2016–75 and should be principal office of the Exchange, and at
it appears to the Commission that such submitted on or before February 3, 2017. the Commission’s Public Reference
action is necessary or appropriate in the For the Commission, by the Division of Room.
public interest, for the protection of Trading and Markets, pursuant to delegated II. Self-Regulatory Organization’s
investors, or otherwise in furtherance of authority.19
Statement of the Purpose of, and
the purposes of the Act. Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Assistant Secretary. Change
[FR Doc. 2017–00610 Filed 1–12–17; 8:45 am]
Interested persons are invited to In its filing with the Commission, the
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submit written data, views, and Exchange included statements
arguments concerning the foregoing, concerning the purpose of and basis for
including whether the proposed rule SECURITIES AND EXCHANGE the proposed rule change and discussed
change is consistent with the Act. COMMISSION any comments it received on the
Comments may be submitted by any of proposed rule change. The text of these
the following methods: [Release No. 34–79760; File No. SR– statements may be examined at the
BatsBYX–2016–40] places specified in Item IV below. The
Electronic Comments
Self-Regulatory Organizations; Bats Exchange has prepared summaries, set
• Use the Commission’s Internet forth in Sections A, B, and C below, of
comment form (http://www.sec.gov/ BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a the most significant parts of such
rules/sro.shtml); or statements.
• Send an email to rule-comments@ Proposed Rule Change To Modify Fees
sec.gov. Please include File Number SR– for Connectivity and Its (A) Self-Regulatory Organization’s
BatsEDGX–2016–75 on the subject line. Communication and Routing Service Statement of the Purpose of, and
Known as Bats Connect Statutory Basis for, the Proposed Rule
Paper Comments Change
January 9, 2017.
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the 1. Purpose
to Secretary, Securities and Exchange Securities Exchange Act of 1934
Commission, 100 F Street NE., The Exchange proposes to modify its
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 fees for physical ports, logical ports, and
Washington, DC 20549–1090. notice is hereby given that on December
All submissions should refer to File for the use of a communication and
27, 2016, Bats BYX Exchange, Inc. routing service known as Bats Connect.
Number SR–BatsEDGX–2016–75. This (‘‘Exchange’’ or ‘‘BYX’’) filed with the
file number should be included on the Each of these proposed changes are
Securities and Exchange Commission described below.
subject line if email is used. To help the (‘‘Commission’’) the proposed rule
Commission process and review your change as described in Items I, II, and Physical Ports
comments more efficiently, please use III below, which Items have been A physical port is utilized by a
only one method. The Commission will prepared by the Exchange. The Member or non-Member to connect to
post all comments on the Commission’s Exchange has designated the proposed the Exchange at the data centers where
Internet Web site (http://www.sec.gov/ rule change as one establishing or the Exchange’s servers are located. The
rules/sro.shtml). Copies of the changing a member due, fee, or other Exchange currently maintains a
submission, all subsequent charge imposed by the Exchange under presence in two third-party data centers:
asabaliauskas on DSK3SPTVN1PROD with NOTICES
amendments, all written statements Section 19(b)(3)(A)(ii) of the Act 3 and (i) The primary data center where the
with respect to the proposed rule Rule 19b–4(f)(2) thereunder,4 which Exchange’s business is primarily
change that are filed with the renders the proposed rule change conducted on a daily basis, and (ii) a
Commission, and all written
secondary data center, which is
communications relating to the 19 17 CFR 200.30–3(a)(12).
proposed rule change between the 1 15 U.S.C. 78s(b)(1). 5 The term ‘‘Member’’ is defined as ‘‘any
2 17 CFR 240.19b–4.
registered broker or dealer that has been admitted
17 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A)(ii).
to membership in the Exchange.’’ See Exchange
18 17 CFR 240.19b–4(f). 4 17 CFR 240.19b–4(f)(2). Rule 1.5(n).
VerDate Sep<11>2014 19:06 Jan 12, 2017 Jkt 241001 PO 00000 Frm 00167 Fmt 4703 Sfmt 4703 E:\FR\FM\13JAN1.SGM 13JAN1](https://thefederalregister.org/doc/82_FR_4451/page/4.svg)
Document Created: 2017-01-13 02:44:40
Document Modified: 2017-01-13 02:44:40
| 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 4442 |
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