82_FR_50411 82 FR 50203 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Technical Corrections to Its Second Amended and Restated Certificate of Incorporation

82 FR 50203 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Technical Corrections to Its Second Amended and Restated Certificate of Incorporation

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 208 (October 30, 2017)

Page Range50203-50205
FR Document2017-23487

Federal Register, Volume 82 Issue 208 (Monday, October 30, 2017)
[Federal Register Volume 82, Number 208 (Monday, October 30, 2017)]
[Notices]
[Pages 50203-50205]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-23487]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81937; File No. SR-BatsEDGX-2017-40]


Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To Make 
Technical Corrections to Its Second Amended and Restated Certificate of 
Incorporation

October 24, 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 October 13, 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, II 
and III below, which Items have been prepared by the Exchange. 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange seeks to amend its Second Amended and Restated 
Certificate of Incorporation. The text of the proposed rule change is 
provided below.

(additions are italicized; deletions are [bracketed])
* * * * *
Second Amended and Restated Certificate of Incorporation of Bats EDGX 
Exchange, Inc.
    The name of the corporation is Bats EDGX Exchange, Inc. The 
corporation filed its original Certificate of Incorporation with the 
Secretary of State of the State of Delaware on March 9, 2009 under the 
name EDGX Exchange, Inc. This Second Amended and Restated Certificate 
of Incorporation of the corporation, which restates and integrates and 
also further amends the provisions of the corporation's Restated 
Certificate of Incorporation, was duly adopted in accordance with the 
provisions of Sections 242 and 245 of the General Corporation Law of 
the State of Delaware and by the written consent of its sole 
stockholder in accordance with Section 228 of the General Corporation 
Law of the State of Delaware. The [Second Amended and] Restated 
Certificate of Incorporation of the corporation is hereby amended, 
integrated and restated to read in its entirety as follows:
* * * * *
    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
    EDGX recently amended its Restated Certificate of Incorporation in 
connection with a corporate transaction (the ``Transaction'') 
involving, among other things, the recent acquisition of EDGX, along 
with Bats BYX Exchange, Inc. (``Bats BYX''), Bats BZX Exchange, Inc. 
(``Bats BZX''), and Bats EDGA Exchange, Inc. (``Bats EDGA'' and, 
together with Bats EDGX, Bats BYX, and Bats BZX, the ``Bats 
Exchanges'') by CBOE Holdings, Inc. (``CBOE Holdings''). CBOE Holdings 
is also the parent of Chicago Board Options Exchange, Incorporated 
(``CBOE'') and C2 Options Exchange, Incorporated (``C2''). 
Particularly, the filing proposed, among other things, to amend and 
restate the certificate of incorporation of the Exchange based on 
certificates of incorporation of CBOE and C2.\3\ The Exchange notes 
that in conforming the Exchange's Certificate to the certificates of 
CBOE and C2, it inadvertently (1) did not comply with a provision of 
Delaware law and (ii) referred to an inaccurate version of the 
Certificate in the introductory paragraph. The Exchange seeks to 
correct those errors.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 81503 (August 30, 
2017), 82 FR 42153 (September 6, 2017) (SR-BatsEDGX-2017-35).
---------------------------------------------------------------------------

    Particularly, Section 245(c) of the Delaware General Corporation 
Law (DGCL) requires that a restated certificate of incorporation 
``shall state, either in its heading or in an introductory paragraph, 
the corporation's present name, and, if it has been changed, the name 
under which it was originally incorporated, and the date of filing of 
its original certificate of incorporation with the secretary of 
state.'' The Exchange notes that the conformed Certificate did not 
reference the name under which the corporation was originally 
incorporated (i.e., ``EDGX Exchange, Inc.''). In order to comply with 
Section 245(c) of the DGCL, the Exchange proposes to amend its 
Certificate to add a reference to its original name.

[[Page 50204]]

    The Exchange also notes that it inadvertently did not reference the 
correct version of the Certificate in two places in the introductory 
paragraph. Particularly, the Exchange notes that the third sentence of 
the introductory paragraph provides that the Second Amended and 
Restated Certificate of Incorporation of the corporation restated and 
integrated and also further amended the provisions of the corporation's 
``Certificate of Incorporation'' instead of the then current (and now 
previous) version titled, ``Restated Certificate of Incorporation''. 
Additionally, the last sentence of the introductory paragraph which 
provides that the current certificate is ``amended, integrated and 
restated to read in its entirety as follows:'' mistakenly references 
the new title of the amended Certificate (i.e., ``Second Amended and 
Restated Certificate of Incorporation'') instead of the title of the 
then current (and now previous) Certificate (``Restated Certificate of 
Incorporation''). As such, the Exchange proposes to add ``Restated'' to 
the third sentence and eliminate the new title reference ``Second 
Amended and'' from the last sentence to accurately reflect the correct 
version of the Certificate that was amended and restated.
    The Exchange notes that the proposed changes are concerned solely 
with the administration of the Exchange and do not affect the meaning, 
administration, or enforcement of any rules of the Exchange or the 
rights, obligations, or privileges of Exchange members or their 
associated persons is [sic] any way.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\4\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \5\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and 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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \6\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes correcting inadvertent non-
substantive, technical errors in its Certificate in order to comply 
with Delaware law and reflect the correct and accurate version of the 
Certificate that was amended will avoid potential confusion, thereby 
removing impediments to, and perfecting the mechanism for a free and 
open market and a national market system, and, in general, protecting 
investors and the public interest of market participants. As noted 
above, the proposed changes do not affect the meaning, administration, 
or enforcement of any rules of the Exchange or the rights, obligations, 
or privileges of Exchange members or their associated persons is any 
way.

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

    The Exchange does not believe the proposed rule change will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act. Rather, the proposed rule change is merely 
attempting to correct inadvertent technical errors in the Exchange's 
introductory paragraph of its Certificate. The proposed rule change has 
no impact on competition.

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

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

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 \7\ and paragraph (f) of Rule 19b-4 \8\ 
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. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BatsEDGX-2017-40 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BatsEDGX-2017-40. 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., 
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. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BatsEDGX-2017-40 and should 
be submitted on or before November 20, 2017.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).


[[Page 50205]]


---------------------------------------------------------------------------

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-23487 Filed 10-27-17; 8:45 am]
BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices                                                50203

                                                All submissions should refer to File                      ‘‘Act’’),1 and Rule 19b–4 thereunder,2                the proposed rule change and discussed
                                                Number SR–MRX–2017–22. This file                          notice is hereby given that on October                any comments it received on the
                                                number should be included on the                          13, 2017, Bats EDGX Exchange, Inc. (the               proposed rule change. The text of these
                                                subject line if email is used. To help the                ‘‘Exchange’’ or ‘‘EDGX’’) filed with the              statements may be examined at the
                                                Commission process and review your                        Securities and Exchange Commission                    places specified in Item IV below. The
                                                comments more efficiently, please use                     (‘‘Commission’’) the proposed rule                    Exchange has prepared summaries, set
                                                only one method. The Commission will                      change as described in Items I, II and III            forth in Sections A, B, and C below, of
                                                post all comments on the Commission’s                     below, which Items have been prepared                 the most significant parts of such
                                                Internet Web site (http://www.sec.gov/                    by the Exchange. The Commission is                    statements.
                                                rules/sro.shtml). Copies of the                           publishing this notice to solicit
                                                                                                          comments on the proposed rule change                  (A) Self-Regulatory Organization’s
                                                submission, all subsequent
                                                                                                          from interested persons.                              Statement of the Purpose of, and
                                                amendments, all written statements
                                                                                                                                                                Statutory Basis for, the Proposed Rule
                                                with respect to the proposed rule                         I. Self-Regulatory Organization’s                     Change
                                                change that are filed with the                            Statement of the Terms of Substance of
                                                Commission, and all written                               the Proposed Rule Change                              1. Purpose
                                                communications relating to the                                                                                     EDGX recently amended its Restated
                                                proposed rule change between the                             The Exchange seeks to amend its
                                                                                                          Second Amended and Restated                           Certificate of Incorporation in
                                                Commission and any person, other than                                                                           connection with a corporate transaction
                                                those that may be withheld from the                       Certificate of Incorporation. The text of
                                                                                                          the proposed rule change is provided                  (the ‘‘Transaction’’) involving, among
                                                public in accordance with the                                                                                   other things, the recent acquisition of
                                                provisions of 5 U.S.C. 552, will be                       below.
                                                                                                          (additions are italicized; deletions are              EDGX, along with Bats BYX Exchange,
                                                available for Web site viewing and                                                                              Inc. (‘‘Bats BYX’’), Bats BZX Exchange,
                                                printing in the Commission’s Public                       [bracketed])
                                                                                                                                                                Inc. (‘‘Bats BZX’’), and Bats EDGA
                                                Reference Room, 100 F Street NE.,                         *     *     *     *     *
                                                                                                                                                                Exchange, Inc. (‘‘Bats EDGA’’ and,
                                                Washington, DC 20549 on official                          Second Amended and Restated                           together with Bats EDGX, Bats BYX, and
                                                business days between the hours of                        Certificate of Incorporation of Bats                  Bats BZX, the ‘‘Bats Exchanges’’) by
                                                10:00 a.m. and 3:00 p.m. Copies of such                   EDGX Exchange, Inc.                                   CBOE Holdings, Inc. (‘‘CBOE
                                                filing also will be available for                                                                               Holdings’’). CBOE Holdings is also the
                                                inspection and copying at the principal                      The name of the corporation is Bats
                                                                                                          EDGX Exchange, Inc. The corporation                   parent of Chicago Board Options
                                                office of the Exchange. All comments                                                                            Exchange, Incorporated (‘‘CBOE’’) and
                                                received will be posted without change.                   filed its original Certificate of
                                                                                                          Incorporation with the Secretary of State             C2 Options Exchange, Incorporated
                                                Persons submitting comments are                                                                                 (‘‘C2’’). Particularly, the filing proposed,
                                                cautioned that we do not redact or edit                   of the State of Delaware on March 9,
                                                                                                          2009 under the name EDGX Exchange,                    among other things, to amend and
                                                personal identifying information from                                                                           restate the certificate of incorporation of
                                                comment submissions. You should                           Inc. This Second Amended and Restated
                                                                                                          Certificate of Incorporation of the                   the Exchange based on certificates of
                                                submit only information that you wish                                                                           incorporation of CBOE and C2.3 The
                                                to make available publicly. All                           corporation, which restates and
                                                                                                          integrates and also further amends the                Exchange notes that in conforming the
                                                submissions should refer to File
                                                                                                          provisions of the corporation’s Restated              Exchange’s Certificate to the certificates
                                                Number SR–MRX–2017–22, and should
                                                                                                          Certificate of Incorporation, was duly                of CBOE and C2, it inadvertently (1) did
                                                be submitted on or before November 20,
                                                                                                          adopted in accordance with the                        not comply with a provision of
                                                2017.
                                                                                                          provisions of Sections 242 and 245 of                 Delaware law and (ii) referred to an
                                                  For the Commission, by the Division of                  the General Corporation Law of the                    inaccurate version of the Certificate in
                                                Trading and Markets, pursuant to delegated                State of Delaware and by the written                  the introductory paragraph. The
                                                authority.15                                                                                                    Exchange seeks to correct those errors.
                                                                                                          consent of its sole stockholder in
                                                Robert W. Errett,                                         accordance with Section 228 of the                       Particularly, Section 245(c) of the
                                                Deputy Secretary.                                         General Corporation Law of the State of               Delaware General Corporation Law
                                                [FR Doc. 2017–23483 Filed 10–27–17; 8:45 am]              Delaware. The [Second Amended and]                    (DGCL) requires that a restated
                                                BILLING CODE 8011–01–P                                    Restated Certificate of Incorporation of              certificate of incorporation ‘‘shall state,
                                                                                                          the corporation is hereby amended,                    either in its heading or in an
                                                                                                          integrated and restated to read in its                introductory paragraph, the
                                                SECURITIES AND EXCHANGE                                   entirety as follows:                                  corporation’s present name, and, if it
                                                COMMISSION                                                *     *      *     *     *                            has been changed, the name under
                                                [Release No. 34–81937; File No. SR–                          The text of the proposed rule change               which it was originally incorporated,
                                                BatsEDGX–2017–40]                                         is available at the Exchange’s Web site               and the date of filing of its original
                                                                                                          at www.bats.com, at the principal office              certificate of incorporation with the
                                                Self-Regulatory Organizations; Bats                       of the Exchange, and at the                           secretary of state.’’ The Exchange notes
                                                EDGX Exchange, Inc.; Notice of Filing                     Commission’s Public Reference Room.                   that the conformed Certificate did not
                                                and Immediate Effectiveness of a                                                                                reference the name under which the
                                                                                                          II. Self-Regulatory Organization’s
                                                Proposed Rule Change To Make                                                                                    corporation was originally incorporated
                                                                                                          Statement of the Purpose of, and
                                                Technical Corrections to Its Second                                                                             (i.e., ‘‘EDGX Exchange, Inc.’’). In order
                                                                                                          Statutory Basis for, the Proposed Rule
sradovich on DSK3GMQ082PROD with NOTICES




                                                Amended and Restated Certificate of                                                                             to comply with Section 245(c) of the
                                                                                                          Change
                                                Incorporation                                                                                                   DGCL, the Exchange proposes to amend
                                                                                                             In its filing with the Commission, the             its Certificate to add a reference to its
                                                October 24, 2017.                                         Exchange included statements                          original name.
                                                  Pursuant to Section 19(b)(1) of the                     concerning the purpose of and basis for
                                                Securities Exchange Act of 1934 (the                                                                              3 See Securities Exchange Act Release No. 81503
                                                                                                            1 15 U.S.C. 78s(b)(1).                              (August 30, 2017), 82 FR 42153 (September 6, 2017)
                                                  15 17   CFR 200.30–3(a)(12).                              2 17 CFR 240.19b–4.                                 (SR–BatsEDGX–2017–35).



                                           VerDate Sep<11>2014     17:59 Oct 27, 2017   Jkt 244001   PO 00000   Frm 00088   Fmt 4703   Sfmt 4703   E:\FR\FM\30OCN1.SGM   30OCN1


                                                50204                         Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices

                                                   The Exchange also notes that it                       Additionally, the Exchange believes the                   to determine whether the proposed rule
                                                inadvertently did not reference the                      proposed rule change is consistent with                   change should be approved or
                                                correct version of the Certificate in two                the Section 6(b)(5) 6 requirement that                    disapproved.
                                                places in the introductory paragraph.                    the rules of an exchange not be designed
                                                                                                                                                                   IV. Solicitation of Comments
                                                Particularly, the Exchange notes that the                to permit unfair discrimination between
                                                third sentence of the introductory                       customers, issuers, brokers, or dealers.                    Interested persons are invited to
                                                paragraph provides that the Second                         In particular, the Exchange believes                    submit written data, views, and
                                                Amended and Restated Certificate of                      correcting inadvertent non-substantive,                   arguments concerning the foregoing,
                                                Incorporation of the corporation restated                technical errors in its Certificate in                    including whether the proposed rule
                                                and integrated and also further amended                  order to comply with Delaware law and                     change is consistent with the Act.
                                                the provisions of the corporation’s                      reflect the correct and accurate version                  Comments may be submitted by any of
                                                ‘‘Certificate of Incorporation’’ instead of              of the Certificate that was amended will                  the following methods:
                                                the then current (and now previous)                      avoid potential confusion, thereby                        Electronic Comments
                                                version titled, ‘‘Restated Certificate of                removing impediments to, and
                                                Incorporation’’. Additionally, the last                  perfecting the mechanism for a free and                     • Use the Commission’s Internet
                                                sentence of the introductory paragraph                   open market and a national market                         comment form (http://www.sec.gov/
                                                which provides that the current                          system, and, in general, protecting                       rules/sro.shtml); or
                                                certificate is ‘‘amended, integrated and                                                                             • Send an email to rule-comments@
                                                                                                         investors and the public interest of
                                                restated to read in its entirety as                                                                                sec.gov. Please include File Number SR–
                                                                                                         market participants. As noted above, the
                                                follows:’’ mistakenly references the new                                                                           BatsEDGX–2017–40 on the subject line.
                                                                                                         proposed changes do not affect the
                                                title of the amended Certificate (i.e.,                  meaning, administration, or                               Paper Comments
                                                ‘‘Second Amended and Restated                            enforcement of any rules of the                              • Send paper comments in triplicate
                                                Certificate of Incorporation’’) instead of               Exchange or the rights, obligations, or                   to Brent J. Fields, Secretary, Securities
                                                the title of the then current (and now                   privileges of Exchange members or their                   and Exchange Commission, 100 F Street
                                                previous) Certificate (‘‘Restated                        associated persons is any way.                            NE., Washington, DC 20549–1090.
                                                Certificate of Incorporation’’). As such,
                                                                                                         (B) Self-Regulatory Organization’s                        All submissions should refer to File
                                                the Exchange proposes to add
                                                                                                         Statement on Burden on Competition                        Number SR–BatsEDGX–2017–40. This
                                                ‘‘Restated’’ to the third sentence and
                                                                                                                                                                   file number should be included on the
                                                eliminate the new title reference                           The Exchange does not believe the
                                                                                                                                                                   subject line if email is used. To help the
                                                ‘‘Second Amended and’’ from the last                     proposed rule change will impose any
                                                                                                                                                                   Commission process and review your
                                                sentence to accurately reflect the correct               burden on competition not necessary or
                                                version of the Certificate that was                                                                                comments more efficiently, please use
                                                                                                         appropriate in furtherance of the
                                                amended and restated.                                                                                              only one method. The Commission will
                                                                                                         purposes of the Act. Rather, the
                                                   The Exchange notes that the proposed                                                                            post all comments on the Commission’s
                                                                                                         proposed rule change is merely
                                                changes are concerned solely with the                                                                              Internet Web site (http://www.sec.gov/
                                                                                                         attempting to correct inadvertent
                                                administration of the Exchange and do                                                                              rules/sro.shtml). Copies of the
                                                                                                         technical errors in the Exchange’s
                                                not affect the meaning, administration,                                                                            submission, all subsequent
                                                                                                         introductory paragraph of its Certificate.
                                                or enforcement of any rules of the                                                                                 amendments, all written statements
                                                                                                         The proposed rule change has no impact
                                                Exchange or the rights, obligations, or                                                                            with respect to the proposed rule
                                                                                                         on competition.
                                                privileges of Exchange members or their                                                                            change that are filed with the
                                                associated persons is [sic] any way.                     (C) Self-Regulatory Organization’s                        Commission, and all written
                                                                                                         Statement on Comments on the                              communications relating to the
                                                2. Statutory Basis                                       Proposed Rule Change Received From                        proposed rule change between the
                                                   The Exchange believes the proposed                    Members, Participants or Others                           Commission and any person, other than
                                                rule change is consistent with the                         The Exchange neither solicited nor                      those that may be withheld from the
                                                Securities Exchange Act of 1934 (the                     received comments on the proposed                         public in accordance with the
                                                ‘‘Act’’) and the rules and regulations                   rule change.                                              provisions of 5 U.S.C. 552, will be
                                                thereunder applicable to the Exchange                                                                              available for Web site viewing and
                                                and, in particular, the requirements of                  III. Date of Effectiveness of the                         printing in the Commission’s Public
                                                Section 6(b) of the Act.4 Specifically,                  Proposed Rule Change and Timing for                       Reference Room, 100 F Street NE.,
                                                the Exchange believes the proposed rule                  Commission Action                                         Washington, DC 20549, on official
                                                change is consistent with the Section                       The foregoing rule change has become                   business days between the hours of
                                                6(b)(5) 5 requirements that the rules of                 effective pursuant to Section 19(b)(3)(A)                 10:00 a.m. and 3:00 p.m. Copies of the
                                                an exchange be designed to prevent                       of the Act 7 and paragraph (f) of Rule                    filing also will be available for
                                                fraudulent and manipulative acts and                     19b–4 8 thereunder. At any time within                    inspection and copying at the principal
                                                practices, to promote just and equitable                 60 days of the filing of the proposed rule                office of the Exchange. All comments
                                                principles of trade, to foster cooperation               change, the Commission summarily may                      received will be posted without change.
                                                and coordination with persons engaged                    temporarily suspend such rule change if                   Persons submitting comments are
                                                in regulating, clearing, settling,                       it appears to the Commission that such                    cautioned that we do not redact or edit
                                                processing information with respect to,                  action is necessary or appropriate in the                 personal identifying information from
                                                and facilitating transactions in                         public interest, for the protection of                    comment submissions. You should
sradovich on DSK3GMQ082PROD with NOTICES




                                                securities, to remove impediments to                     investors, or otherwise in furtherance of                 submit only information that you wish
                                                and perfect the mechanism of a free and                  the purposes of the Act. If the                           to make available publicly. All
                                                open market and a national market                        Commission takes such action, the                         submissions should refer to File
                                                system, and, in general, to protect                      Commission will institute proceedings                     Number SR–BatsEDGX–2017–40 and
                                                investors and the public interest.                                                                                 should be submitted on or before
                                                                                                           6 Id.                                                   November 20, 2017.
                                                  4 15 U.S.C. 78f(b).                                      7 15    U.S.C. 78s(b)(3)(A).
                                                  5 15 U.S.C. 78f(b)(5).                                   8 17    CFR 240.19b–4(f).                                 9 17   CFR 200.30–3(a)(12).



                                           VerDate Sep<11>2014    17:59 Oct 27, 2017   Jkt 244001   PO 00000   Frm 00089     Fmt 4703     Sfmt 4703   E:\FR\FM\30OCN1.SGM    30OCN1


                                                                              Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices                                                        50205

                                                  For the Commission, by the Division of                 set forth in sections A, B, and C below,                    Currently, the Exchange applies the
                                                Trading and Markets, pursuant to delegated               of the most significant parts of such                    Additional Weighting as follows: When
                                                authority.9                                              statements.                                              an inbound order is allocated against
                                                Robert W. Errett,                                                                                                 the Specialist Pool, the Primary
                                                Deputy Secretary.
                                                                                                         A. Self-Regulatory Organization’s
                                                                                                         Statement of the Purpose of, and the                     Specialist’s quoted size is treated as if
                                                [FR Doc. 2017–23487 Filed 10–27–17; 8:45 am]
                                                                                                         Statutory Basis for, the Proposed Rule                   it were double (i.e., two (2) times the
                                                BILLING CODE 8011–01–P
                                                                                                         Change                                                   number of contracts being quoted) and
                                                                                                                                                                  this doubled size is then used in the
                                                                                                         1. Purpose                                               calculation (as shown in the examples
                                                SECURITIES AND EXCHANGE                                     The purpose of the filing is to modify                below) to determine the allocation to
                                                COMMISSION                                               Rule 964.2NY regarding the                               both the Primary Specialist as well as
                                                [Release No. 34–81928; File No. SR–                      participation entitlement of Specialists                 the other participants in the Specialist
                                                NYSEAMER–2017–23]                                        and e-Specialists.4                                      Pool.9 When there is only one
                                                                                                            Rule 964NY sets forth the priority for                e-Specialist and both the Specialist and
                                                Self-Regulatory Organizations; NYSE                      the allocation of incoming orders to                     e-Specialist are quoting the same size,
                                                American LLC; Notice of Filing and                       resting interest at a particular price in                this Additional Weighting will not be
                                                Immediate Effectiveness of Proposed                      the System,5 which includes the                          greater than 662⁄3%. When there is more
                                                Rule Change To Modify Rule 964.2NY                       allocation to the Specialist Pool.6 Rule                 than one e-Specialist and the Specialist
                                                Regarding the Participation                              964.2NY sets forth the participant                       and e-Specialists are all quoting the
                                                Entitlement Formula for Specialists                      entitlement formula applicable to the                    same size, this Additional Weighting
                                                and e-Specialists                                        Specialist Pool and provides that, on a                  will not be greater than 50%.
                                                                                                         quarterly basis, the Exchange will
                                                October 24, 2017.                                        determine a Primary Specialist from                         Because current Rule
                                                   Pursuant to Section 19(b)(1) 1 of the                 among the Specialists e-Specialists [sic]                964.2NY(b)(3)(A) does not specify the
                                                Securities Exchange Act of 1934 (the                     in each option class.                                    circumstances under which the Primary
                                                ‘‘Act’’),2 and Rule 19b–4 thereunder,3                      Generally, the Specialist Pool is                     Specialist’s allocation in the Specialist
                                                notice is hereby given that, on October                  entitled to 40% of the remaining                         Pool is subject to the Cap, the Exchange
                                                10, 2017, NYSE American LLC (the                         balance of an order after any orders on                  proposes to make clear that the Cap only
                                                ‘‘Exchange’’ or ‘‘NYSE American’’) filed                 behalf of Customers in the Consolidated                  applies if ‘‘all participants in the
                                                with the Securities and Exchange                         Book are satisfied.7 Rule                                Specialist Pool are quoting the same
                                                Commission (the ‘‘Commission’’) the                      964.2NY(b)(3)(A) provides that                           size.’’ 10 When all participants in the
                                                proposed rule change as described in                     Specialists and e-Specialists quoting at                 Specialist Pool are not quoting the same
                                                Items I and II below, which Items have                   the NBBO will share in the Specialist                    size, the Primary Specialist may receive
                                                been prepared by the self-regulatory                     Pool participation entitlement on a size                 up to the entirety of the Specialist Pool’s
                                                organization. The Commission is                          pro rata basis and provides that the                     participation allocation. However, for
                                                publishing this notice to solicit                        Primary Specialist’s size pro rata                       this scenario to occur, the Primary
                                                comments on the proposed rule change                     participation will receive additional                    Specialist’s quoted size would need to
                                                from interested persons.                                 weighting, as determined by the                          be disproportionately larger than the
                                                I. Self-Regulatory Organization’s                        Exchange and announced by Trader                         other participants in the Specialist Pool
                                                Statement of the Terms of Substance of                   Update (the ‘‘Additional Weighting’’).                   such that the allocation to which the
                                                the Proposed Rule Change                                 Pursuant to the current Rule, this                       other participant(s) in the Specialist
                                                                                                         Additional Weighting afforded to the                     Pool is entitled is less than one contract
                                                   The Exchange proposes to modify                       Primary Specialist is capped at 662⁄3%
                                                Rule 964.2NY regarding the                                                                                        (i.e., a fractional share). For example, if
                                                                                                         if there is only one e-Specialist, and at                the Primary Specialist is quoting 300
                                                participation entitlement formula for                    50% if there are two or more
                                                Specialists and e-Specialists. The                                                                                contracts and the other eSpecialist in
                                                                                                         e-Specialists (the ‘‘Cap’’).8
                                                proposed rule change is available on the
                                                                                                                                                                     9 The Exchange may modify how it calculates the
                                                Exchange’s Web site at www.nyse.com,                       4 A Specialist is ‘‘an individual or entity that has
                                                                                                                                                                  Additional Weighting, which calculation would be
                                                at the principal office of the Exchange,                 been deemed qualified by the Exchange for the            announced by Trader Update. See Rule
                                                and at the Commission’s Public                           purpose of making transactions on the Exchange in        964.2NY(b)(3)(A). See, e.g., September 27, 2012
                                                                                                         accordance with the provisions of Rule 920NY
                                                Reference Room.                                          [Market Makers], and who meets the qualification
                                                                                                                                                                  Trader Update, available here, https://
                                                                                                                                                                  www.nyse.com/publicdocs/nyse/notifications/
                                                II. Self-Regulatory Organization’s                       requirements of Rule 927NY(b) [Specialists]. Each        trader-update/NYSE%20AMEX%20OPTIONS%20
                                                                                                         Specialist must be registered with the Exchange as       Trader%20Update%20Primary%20Specialist%20
                                                Statement of the Purpose of, and                         a Market Maker. Any ATP Holder registered as a           Implementation%209-27-12%20FINALtw.pdf; and
                                                Statutory Basis for, the Proposed Rule                   Market Maker with the Exchange is eligible to be         December 21, 2012 Trader Update, available here,
                                                Change                                                   qualified as a Specialist. See Rule 900.2NY(76).         https://www.nyse.com/publicdocs/nyse/
                                                                                                         Rule 923NY(b) also provides that ‘‘[t]he Exchange        notifications/trader-update/NYSE%20AMEX%20
                                                  In its filing with the Commission, the                 may designate e-Specialists in an option class in        OPTIONS%20Trader%20Update%20Primary%20
                                                self-regulatory organization included                    accordance with Rule 927.4NY [e-Specialists].’’ See      Specialist%20Implementation%20010213
                                                statements concerning the purpose of,                    Rule 923NY(b).                                           %20%20%20.pdf.
                                                                                                           5 The term ‘‘System’’ refers to the Exchange’s
                                                and basis for, the proposed rule change                  electronic order delivery, execution and reporting
                                                                                                                                                                     10 See proposed Rule 964.2NY(b)(3)(A)

                                                and discussed any comments it received                                                                            (providing, in part, that the ‘‘Primary Specialist’s
                                                                                                         system through which orders and quotes for listed        size pro-rata participation in the Specialist Pool
sradovich on DSK3GMQ082PROD with NOTICES




                                                on the proposed rule change. The text                    options are consolidated for execution and/or            will receive additional weighting, as determined by
                                                of those statements may be examined at                   display. See Rule 900.2NY (48) (defining ‘‘Exchange      the Exchange, and announced via Trader Update;
                                                                                                         System’’ or ‘‘System’’).
                                                the places specified in Item IV below.                     6 The Specialist Pool refers to the aggregated size
                                                                                                                                                                  provided, however, that if all participants in the
                                                The Exchange has prepared summaries,                                                                              Specialist Pool are quoting the same size, this
                                                                                                         of the best bid and best offer, in a given series,       additional weighting will be no greater than 662⁄3%
                                                                                                         amongst the Specialist and e-Specialists that match      if there is only one e-Specialist, and no greater than
                                                  1 15 U.S.C. 78s(b)(1).                                 in price. See Rule 900.2NY(75).                          50% if there are two or more e-Specialists’’). The
                                                  2 15 U.S.C. 78a.                                         7 See Rule 964.2NY(b)(2).
                                                                                                                                                                  Exchange also proposes to capitalize the ‘‘s’’ in the
                                                  3 17 CFR 240.19b–4.                                      8 See Rule 964.2NY(b)(3)(A).                           defined term ‘‘e-Specialist.’’ See id.



                                           VerDate Sep<11>2014    17:59 Oct 27, 2017   Jkt 244001   PO 00000   Frm 00090   Fmt 4703   Sfmt 4703   E:\FR\FM\30OCN1.SGM     30OCN1



Document Created: 2017-10-28 00:29:20
Document Modified: 2017-10-28 00:29:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 50203 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR