82 FR 4445 - Self-Regulatory Organizations; Bats BYX 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 | 4445-4449 | |
| FR Document | 2017-00609 |
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)] [Notices] [Pages 4445-4449] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00609] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79760; File No. SR-BatsBYX-2016-40] Self-Regulatory Organizations; Bats BYX 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 BYX Exchange, Inc. (``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) to modify its fees for physical ports, logical 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.batstrading.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 modify its fees for physical ports, logical 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 [[Page 4446]] 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 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(aa). --------------------------------------------------------------------------- Logical Ports The Exchange currently charges for logical ports (including Multicast PITCH Spin Server and GRP ports) $500 per port per month. A logical port represents a port established by the Exchange within the Exchange's system for trading and billing purposes. Each logical port established is specific to a Member or non-Member and grants that Member or non-Member the ability to operate a specific application, such as FIX order entry or PITCH data receipt. Logical port fees are limited to logical ports in the Exchange's primary data center and no logical port fees are assessed for redundant secondary data center ports. The Exchange assesses the monthly per logical port fees to all Members' and non-Members' logical ports. The Exchange now proposes to increase charges for logical ports (including Multicast PITCH Spin Server and GRP ports) from $500 per port per month to $550 per month. Like as for the proposed fee increase for physical ports described above, the proposed increase in logical port fees is intended to cover increased infrastructure costs associated with establishing ports to connect to the Exchange's Systems and to enable the Exchange to continue to maintain and improve its market technology and services. 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 13.8. \8\ The Exchange's affiliated exchanges are Bats EDGX Exchange, Inc. (``EDGX''), Bats EDGA Exchange, Inc. (``EDGA''), 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 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 [[Page 4447]] 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, to be known as the OPRA + SIP Bundle. 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.\11\ --------------------------------------------------------------------------- \11\ The Exchange notes that the date of its fee schedule was previously updated to January 3, 2017 in SR-BatsBYX-2016-39 (December 6 [sic], 2017). See Securities Exchange Act Release No. 79623 (December 20, 2016). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\12\ in general, and furthers the objectives of Section 6(b)(4),\13\ 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 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 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.\14\ 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. --------------------------------------------------------------------------- \14\ See 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). --------------------------------------------------------------------------- Logical Ports The Exchange believes that the increase of fees for logical ports represents an equitable allocation of reasonable dues, fees and other charges. The Exchange believes that its proposed changes to logical port fees are reasonable in light of the benefits to Exchange participants of direct market access and receipt of data. The Exchange believes its proposed fees are reasonable because Nasdaq and NYSE Arca charge comparable rates for logical ports to access such markets.\15\ --------------------------------------------------------------------------- \15\ See Nasdaq Rule 7015(b) (charging a fee of $575 per month for FIX Trading Ports) 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) (charging a fee of $550 per month for ports for order/quote entry). --------------------------------------------------------------------------- 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 [[Page 4448]] Mb.\16\ In addition, the proposed rates continue to be less than what a subscriber would pay to connect directly to another exchange.\17\ 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. --------------------------------------------------------------------------- \16\ See Section 3.6.1 of NYSE's SFTI Americas Product and Service List available at http://www.nyxdata.com/docs/connectivity. \17\ See e.g., 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). --------------------------------------------------------------------------- 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.\18\ --------------------------------------------------------------------------- \18\ 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. (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 \19\ and paragraph (f) of Rule 19b-4 thereunder. 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. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). --------------------------------------------------------------------------- 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-BatsBYX-2016-40 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-2016-40. 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., [[Page 4449]] 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-BatsBYX-2016-40 and should be submitted on or before February 3, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-00609 Filed 1-12-17; 8:45 am] BILLING CODE 8011-01-P
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(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
BILLING CODE P
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).
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products, known as the U.S. Equities other persons using its facilities. The circuits.14 The Exchange believes that
Select + SIP Bundle. The following Exchange also notes that it operates in the proposed rates are equitable and
market data products are included in a highly-competitive market in which non-discriminatory in that they apply
the bundle: UQDF/UTDF/OMDF, CQS/ market participants can readily direct uniformly to all Members and non-
CTS, Nasdaq TotalView, Nasdaq BX order flow to competing venues if they Members. Members and non-Members
TotalView, Nasdaq PSX TotalView, deem fee levels at a particular venue to will continue to choose whether they
NYSE ArcaBook, NYSE MKT OpenBook be excessive. The proposed rule change want more than one physical port and
Ultra, and BBDS/TTDS.10 Absent the reflects a competitive pricing structure choose the method of connectivity
discount, a subscriber purchasing designed to incent market participants based on their specific needs. All
connectivity through Bats Connect for to direct their order flow to the Exchange Members that voluntarily
each of these market data products Exchange. The Exchange believes that select various service options will be
would currently pay a total monthly fee the proposed rates are equitable and charged the same amount for the same
of $5,200. Instead, a subscriber who non-discriminatory in that they apply services. As is true of all physical
purchases connectivity to each of the uniformly to all Members. The connectivity, all Members and non-
above market data products is charged Exchange believes the fees and credits Members have the option to select any
a monthly fee of $4,160, which remain competitive with those charged connectivity option, and there is no
represents a 20% discount. The by other venues and therefore continue differentiation with regard to the fees
Exchange proposes to add NYSE to be reasonable and equitably allocated charged for the service.
OpenBook Ultra to the bundle. Also, in to Members.
light of the proposed changes outlined The Exchange believes that the Logical Ports
above, the Exchange proposes to proposal represents an equitable
increase the discounted rate of the The Exchange believes that the
allocation of reasonable dues, fees, and increase of fees for logical ports
bundle to $5,910 per month, which other charges as its fees for physical
would now represent a 40% discount represents an equitable allocation of
connectivity are reasonably constrained
from the rate of $9,850 a subscriber reasonable dues, fees and other charges.
by competitive alternatives. If a
purchasing connectivity through Bats The Exchange believes that its proposed
particular exchange charges excessive
Connect for each of these market data changes to logical port fees are
fees for connectivity, affected Members
products would be charged under the reasonable in light of the benefits to
and non-Members may opt to terminate
proposed rule change. Exchange participants of direct market
their connectivity arrangements with
Lastly, the Exchange proposes to access and receipt of data. The
that exchange, and adopt a possible
charge a discounted fee of $6,390 per Exchange believes its proposed fees are
range of alternative strategies, including
month for subscribers who purchase reasonable because Nasdaq and NYSE
routing to the applicable exchange
connectivity to the OPRA, UQDF/ Arca charge comparable rates for logical
through another participant or market
UTDF/OMDF, and CQS/CTS data feeds, ports to access such markets.15
center or taking that exchange’s data
to be known as the OPRA + SIP Bundle. indirectly. Accordingly, if the Exchange
Absent the discount, a subscriber Bats Connect
charges excessive fees, it would stand to
purchasing connectivity through Bats The Exchange also believes that its
lose not only connectivity revenues but
Connect for each of these market data proposed fees for Bats Connect provide
also revenues associated with the
products would pay a total monthly fee for the equitable allocation of reasonable
execution of orders routed to it, and, to
of $7,100. Instead, a subscriber who dues, fees and other charges among
the extent applicable, market data
purchases connectivity to each of the members and other persons using its
revenues. The Exchange believes that
above market data products is charged facilities. First, the Exchange charges a
this competitive dynamic imposes
a monthly fee of $6,390, which connectivity fee to subscribers utilizing
powerful restraints on the ability of any
represents a 10% discount.
exchange to charge unreasonable fees Bats Connect to route orders to other
Implementation Date for connectivity. exchanges and market centers that are
The Exchange proposes to implement Furthermore, the proposed rule connected to the Exchange’s network,
this amendment to its fee schedule on change is also an equitable allocation of which varies based solely on the
January 3, 2017.11 reasonable dues, fees, and other charges amount of bandwidth selected by the
as the Exchange believes that the subscriber. The proposed increased
2. Statutory Basis increased fees obtained will enable it to connectivity fees remain reasonable and
The Exchange believes that the cover its increased infrastructure costs competitive as compared to similar fees
proposed rule change is consistent with associated with establishing physical charged by other exchanges. For
the objectives of Section 6 of the Act,12 ports to connect to the Exchange’s purposes of order routing, the Exchange
in general, and furthers the objectives of Systems. The additional revenue from proposes to now charge $500 for 1 Mb,
Section 6(b)(4),13 in particular, as it is the increased fees will also enable the $1,000 for 5 Mb, and $1,250 for 10 Mb.
designed to provide for the equitable Exchange to continue to maintain and The New York Stock Exchange, Inc.
allocation of reasonable dues, fees and improve its market technology and (‘‘NYSE’’) currently charges $300 for 1
other charges among its Members and services. Mb, $700 for 5 Mb, and $900 for 10
10 The Exchange also proposes to correct a Physical Ports 14 See Nasdaq Rule 7034(b) and the NYSE Arca
asabaliauskas on DSK3SPTVN1PROD with NOTICES
typographical error in referencing BBDS/TDDS in The Exchange believes that the fee schedule available at https://www.nyse.com/
its description of the U.S. Equity Select + SIP publicdocs/nyse/markets/nyse-arca/NYSE_Arca_
bundle. proposed fees for a 10 gigabyte circuit
Marketplace_Fees.pdf (dated December 2, 2016).
11 The Exchange notes that the date of its fee of $6,000 per month is reasonable in 15 See Nasdaq Rule 7015(b) (charging a fee of $575
schedule was previously updated to January 3, 2017 that they are less than analogous fees per month for FIX Trading Ports) and the NYSE
in SR–BatsBYX–2016–39 (December 6 [sic], 2017). charged by the Nasdaq Stock Market Arca fee schedule available at https://
See Securities Exchange Act Release No. 79623 www.nyse.com/publicdocs/nyse/markets/nyse-arca/
(December 20, 2016).
LLC (‘‘Nasdaq’’) and NYSE Arca, Inc.
NYSE_Arca_Marketplace_Fees.pdf (dated December
12 15 U.S.C. 78f. (‘‘Arca’’), which range from $10,000– 2, 2016) (charging a fee of $550 per month for ports
13 15 U.S.C. 78f(b)(4). $15,000 per month for 10 gigabyte for order/quote entry).
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![Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Notices 4449
Washington, DC 20549, on official All other information in the original DEPARTMENT OF STATE
business days between the hours of declaration remains unchanged.
[Public Notice: 9792]
10:00 a.m. and 3:00 p.m. Copies of the (Catalog of Federal Domestic Assistance
filing also will be available for Number 59008) 30-Day Notice of Proposed Information
inspection and copying at the principal Collection: Request for Determination
office of the Exchange. All comments James E. Rivera, of Possible Loss of United States
received will be posted without change; Associate Administrator for Disaster Citizenship
the Commission does not edit personal Assistance.
identifying information from [FR Doc. 2017–00704 Filed 1–12–17; 8:45 am] ACTION:Notice of request for public
submissions. You should submit only BILLING CODE 8025–01–P comment and submission to OMB of
information that you wish to make proposed collection of information.
available publicly. All submissions
should refer to File Number SR– SUMMARY: The Department of State has
BatsBYX–2016–40 and should be submitted the information collection
DEPARTMENT OF STATE
submitted on or before February 3, 2017. described below to the Office of
Management and Budget (OMB) for
For the Commission, by the Division of [Public Notice 9848]
Trading and Markets, pursuant to delegated approval. In accordance with the
authority.20 Paperwork Reduction Act of 1995 we
In the Matter of the Designation of are requesting comments on this
Eduardo A. Aleman, Jamaah Ansharut Daulah also known collection from all interested
Assistant Secretary. as Jemaah Anshorut Daulahalso individuals and organizations. The
[FR Doc. 2017–00609 Filed 1–12–17; 8:45 am] known as Jamaah Ansharut Daulatalso purpose of this Notice is to allow 30
BILLING CODE 8011–01–P Known as JAD as a Specially days for public comment.
Designated Global Terrorist Pursuant DATES: Submit comments directly to the
to Section 1(b) of E.O. 13224, as Office of Management and Budget
SMALL BUSINESS ADMINISTRATION Amended (OMB) up to February 13, 2017.
[Disaster Declaration #14970 and #14971] ADDRESSES: Direct comments to the
Acting under the authority of and in
Department of State Desk Officer in the
North Carolina Disaster Number NC– accordance with section 1(b) of E.O. Office of Information and Regulatory
00086 13224 of September 23, 2001, as Affairs at the Office of Management and
amended by E.O. 13268 of July 2, 2002, Budget (OMB). You may submit
AGENCY: U.S. Small Business and E.O. 13284 of January 23, 2003, I comments by the following methods:
Administration hereby determine that the entity known • Email: oira_submission@
ACTION: Amendment 3. as Jamaah Ansharut Daulah, aka Jemaah omb.eop.gov. You must include the DS
Anshorut Daulah, aka Jamaah Ansharut form number, information collection
SUMMARY: This is an amendment of the Daulat, aka JAD committed, or poses a title, and the OMB control number in
Presidential declaration of a major significant risk of committing, acts of the subject line of your message.
disaster for Public Assistance Only for terrorism that threaten the security of • Fax: 202–395–5806. Attention: Desk
the State of North Carolina (FEMA– U.S. nationals or the national security, Officer for Department of State.
4285–DR), dated 11/10/2016.
foreign policy, or economy of the United FOR FURTHER INFORMATION CONTACT:
Incident: Hurricane Matthew.
States. Direct requests for additional
Incident Period: 10/04/2016 through
10/24/2016. Consistent with the determination in information regarding the collection
Effective Date: 01/04/2017. section 10 of E.O. 13224 that prior listed in this notice, including requests
Physical Loan Application Deadline notice to persons determined to be for copies of the proposed collection
Date: 01/09/2017. subject to the Order who might have a instrument and supporting documents,
Economic Injury (EIDL) Loan constitutional presence in the United to Derek A. Rivers, Bureau of Consular
Application Deadline Date: 08/10/2017. Affairs, Overseas Citizens Services (CA/
States would render ineffectual the
OCS/PMO), U.S. Department of State,
ADDRESSES: Submit completed loan blocking and other measures authorized
2201 C. St. NW., Washington, DC 20522,
applications to: U.S. Small Business in the Order because of the ability to
who may be reached at
Administration, Processing and transfer funds instantaneously, I mailto:RiversDA@state.gov.
Disbursement Center, 14925 Kingsport determine that no prior notice needs to
SUPPLEMENTARY INFORMATION:
Road, Fort Worth, TX 76155. be provided to any person subject to this
• Title of Information Collection:
FOR FURTHER INFORMATION CONTACT: A. determination who might have a Request for Determination of Possible
Escobar, Office of Disaster Assistance, constitutional presence in the United Loss of United States Citizenship.
U.S. Small Business Administration, States, because to do so would render • OMB Control Number: 1405–0178.
409 3rd Street SW., Suite 6050, ineffectual the measures authorized in • Type of Request: Extension of a
Washington, DC 20416. the Order. Currently Approved Collection.
SUPPLEMENTARY INFORMATION: The notice This notice shall be published in the • Originating Office: Bureau of
of the President’s major disaster
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register. Consular Affairs, Overseas Citizens
declaration for Private Non-Profit Services (CA/OCS).
Dated: December 8, 2016.
organizations in the State of North • Form Number: DS–4079.
Carolina, dated 11/10/2016, is hereby John F. Kerry, • Respondents: United States
amended to include the following areas Secretary of State. Citizens.
as adversely affected by the disaster. [FR Doc. 2017–00708 Filed 1–12–17; 8:45 am] • Estimated Number of Respondents:
Primary Counties: Warren BILLING CODE 4710–10–P 600.
• Estimated Number of Responses:
20 17 CFR 200.30–3(a)(12). 600.
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Document Created: 2017-01-13 02:44:38
Document Modified: 2017-01-13 02:44:38
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