[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35078-35079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12780]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77918; File No. SR-BatsBYX-2016-10]
Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees
May 25, 2016.
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 May 16, 2016, Bats BYX Exchange, Inc. (the ``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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BYX Rules
15.1(a) and (c) (``Fee Schedule'') to reinsert fee code PX, which was
inadvertently deleted in its entirety in an earlier proposed rule
change.
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\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
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The text of the proposed rule change is available at the Exchange's
Web site at www.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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On May 5, 2016, the Exchange amended Rule 11.13, Order Execution
and Routing, to delete the IOCM and ICMT routing options.\6\ At that
time, the Exchange also amended its Fee Schedule to delete: (i)
References to the IOCM and ICMT routing options under footnote 8; and
(ii) fee code PX, which was yielded on orders routed to Bats EDGX
Exchange, Inc. (``EDGX'') to execute against MidPoint Peg Orders \7\ on
EDGX using ICMT or IOCM routing options. Fee code PX is also yielded on
orders routed using the RMPT routing option.\8\ In that filing, the
Exchange inadvertently deleted fee code PX in its entirety when fee
code PX should have only been amended to delete references to the IOCM
and ICMT routing options.
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\6\ See Securities Exchange Act Release No. 77790 (May 10,
2016), 81 FR 30360 (May 16, 2016) (SR-BatsBYX-2016-06).
\7\ See EDGX Rule 11.8(d).
\8\ RMPT is a routing option under which a Mid-Point Peg Order
checks the System for available shares and any remaining shares are
then sent to destinations on the System routing table that support
midpoint eligible orders. If any shares remain unexecuted after
routing, they are posted on the BYX Book as a MidPoint Peg Order,
unless otherwise instructed by the User. See Exchange Rule
11.13(b)(3)(Q).
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The Exchange now proposes to reinsert fee code PX, less the
references to the ICMT and IOCM routing options. The reinserted langue
would state that fee code PX is yielded on orders routing using the
RMPT routing option. Orders that yield fee code PX in securities priced
at or above $1.00 are charged a fee of $0.00120 per share and orders in
securities priced below $1.00 are changed a fee of 0.29% charge of the
order's total dollar value. The proposed rates for fee code PX are
identical to that which was included in the Fee Schedule prior to May
10, 2016.
The Exchange proposes to implement the proposed rule change
immediately.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ 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 believes that its proposed rates represent an
equitable allocation of reasonable dues, fees, and other charges among
Members and other persons using its facilities because it is designed
to reinsert fee code PX, which was inadvertently deleted in an earlier
rule filing. The Exchange does not believe that this change represents
a significant departure from previous pricing offered by the Exchange,
as fee code PX will continue to be yielded on orders that utilize the
RMPT routing option and will be charged the same rates as set forth in
the Fe Schedule prior to its mistaken deletion. Furthermore, the
Exchange notes that routing through the Exchange and utilizing fee code
PX is voluntary. Lastly, the Exchange also believes that the proposed
amendment is non-discriminatory because it applies uniformly to all
Members.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe the proposed rule change will
impose any burden on competition as it is simply designed to reinsert
fee code PX, which was that was inadvertently deleted in an earlier
rule filing.
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)
[[Page 35079]]
of the Act \11\ and paragraph (f) of Rule 19b-4 thereunder.\12\ At any
time within 60 days of the filing of the proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File No. SR-BatsBYX-2016-10 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BatsBYX-2016-10. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-BatsBYX-2016-10, and should be
submitted on or before June 22, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-12780 Filed 5-31-16; 8:45 am]
BILLING CODE 8011-01-P