[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Notices]
[Pages 62185-62187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21487]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78745; File No. SR-BatsEDGX-2016-48]
Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Delay the Implementation of the Options Regulatory Fee
September 1, 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 August 22, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission (the
``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
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publishing this notice to solicit comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to delay implementation of recently
enacted amendments to the fee schedule applicable to Members \5\ and
non-Members of the Exchange pursuant to EDGX Rules 15.1(a) and (c) to
adopt an Options Regulatory Fee (``ORF'').
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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).
\5\ A 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
The Exchange recently submitted a proposed rule change to modify
the fee schedule applicable to the Exchange's options platform (``EDGX
Options'') to adopt an ORF in the amount of $0.0002 per contract
side.\6\ The Exchange proposed to assess the per-contract ORF to each
Member and non-Member for all options transactions cleared by OCC in
the ``customer'' range, regardless of the exchange on which the
transaction occurs. In order to provide market participants additional
time to assess the impact of the ORF on their transactions and order
execution scenarios, the Exchange is delaying the implementation date
of the fee until February 1, 2017.\7\
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\6\ See Securities Exchange Release No. 78452 (August 1, 2016),
81 FR 51951 (August 5, 2016) (SR-BatsEDGX-2016-33).
\7\ The Exchange noted in its proposal and included text in its
fee schedule that it may only increase or decrease the ORF semi-
annually, and any such fee change will be effective on the first
business day of February or August. Id. See also the Exchange's fee
schedule available at http://batstrading.com/support/fee_schedule/edgx/ (dated August 5, 2016). The Exchange initially filed the
proposed fee change on August 11, 2016 (SR-BatsEDGX-2016-43). On
August 19, 2016, the Exchange withdrew SR-BatsEDGX-2016-43 and
submitted SR-BatsEDGX-2016-47. On August 22, 2016, the Exchange
withdrew SR-BatsEDGX-2016-47 and submitted this filing.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6 of the Act.\8\ The
Exchange also believes that its proposal furthers the objectives of
Section 6(b)(5) of the Act \9\ in that it is designed to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest. The Exchange believes
delaying the implementation of ORF will provide market participants
additional time to assess the impact of the ORF on their transactions
and order execution scenarios, and that implementation of the fee on
February 1, 2017 will benefit investors and the public interest.\10\
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
\10\ The Exchange notes that other exchanges have delayed the
implementation of fees that were previously published by the
Commission. See Securities Exchange Act Release Nos. 72605 (July 14,
2014), 79 FR 42066 (July 18, 2014) (SR-Phlx-2014-44); 67068 (May 29,
2012), 77 FR 33256 (June 5, 2012) (SR-Nasdaq-2012-064); 66287
(February 1, 2012), 77 FR 6161 (February 7, 2012) (SR-FINRA-2012-
008); and 57183 (January 22, 2008), 73 FR 5249 (January 29, 2008)
(SR-Nasdaq-2008-007).
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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. The ORF is not intended to have
any impact on competition. Rather, it is designed to enable the
Exchange to recover a material portion of the Exchange's cost related
to its regulatory activities. Therefore, the Exchange does not believe
delaying the implantation of ORF till February 1, 2017 will have any
impact 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 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 \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-BatsEDGX-2016-48 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BatsEDGX-2016-48. 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
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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-BatsEDGX-2016-48, and should be submitted on or before
September 29, 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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-21487 Filed 9-7-16; 8:45 am]
BILLING CODE 8011-01-P