Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc., 64434-64436 [2014-25668]
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Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices
is being proposed in the context of the
technology integration of the BGM
Affiliated Exchanges. Thus, the
Exchange believes this proposed rule
change is necessary to permit fair
competition among national securities
exchanges. In addition, the Exchange
believes the proposed rule change will
benefit Exchange participants in that it
is one of several changes necessary to
achieve a consistent technology offering
by the BGM Affiliated Exchanges.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12 Because the
foregoing proposed rule change does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it is filed, or such shorter time as
the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 14 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 15
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing, noting that a waiver of the
operative delay will allow the Exchange
to continue to strive towards a complete
technology integration of the BGM
Affiliated Exchanges, with gradual rollouts of new functionality to ensure
stability of the System. The Exchange
also believes that the benefit to
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11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change.
14 17 CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6)(iii).
12 17
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Exchange Users expected from the
proposed rule change—greater
flexibility in their efforts to fill orders—
should not be delayed. Further, the
Exchange states that introduction of the
optional routing strategies will not
require any systems changes by
Exchange Users that would necessitate a
delay, as selection of the routing
strategies is entirely optional and Users
will not be affected by the change unless
they select to use the newly offered
functionality. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.16
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 shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BATS–2014–052 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–BATS–2014–052. 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
16 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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Internet Web site (https://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 such
filing also will be available for
inspection and copying at the principal
offices 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–BATS–
2014–052, and should be submitted on
or before November 19, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–25666 Filed 10–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73414; File No. SR–BATS–
2014–050]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees for Use
of BATS Exchange, Inc.
October 23, 2014.
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 October
16, 2014, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS ’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a 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
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
1 15
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Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices
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
amend the fees applicable to securities
listed on the Exchange pursuant to
BATS Rule 14.13. Changes to the fee
schedule pursuant to this proposal are
effective upon filing.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://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
mstockstill on DSK4VPTVN1PROD with NOTICES
On August 30, 2011, the Exchange
received approval of rules applicable to
the qualification, listing, and delisting
of companies on the Exchange,3 which
it modified on February 8, 2012 in order
to adopt pricing for the listing of
exchange traded products (‘‘ETPs’’ 4 on
the Exchange,5 which it subsequently
modified again on June 4, 2014.6 The
Exchange proposes to modify Rule
14.13, entitled ‘‘Company Listing Fees’’
to eliminate the annual fees for ETPs
that are not participating in the
competitive liquidity provider program
under Interpretation and Policy .02 to
3 See Securities Exchange Act Release No. 65225
(August 30, 2011) 76 FR 55148 (September 6, 2011)
(SR–BATS–2011–018).
4 As defined in BATS Rule 11.8(e)(1)(A), the term
‘‘ETP’’ means any security listed pursuant to
Exchange Rule 14.11.
5 See Securities Exchange Act Release No. 66422
(February 17, 2012) 77 FR 11179 (February 24,
2012) (SR–BATS–2012–010).
6 See Securities Exchange Act Release No. 72377
(June 12, 2014) 79 FR 34822 (June 18, 2014) (SR–
BATS–2014–024).
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Rule 11.8 (the ‘‘CLP Program’’).7 The
Exchange is not proposing to eliminate
the $5,000 application fee for ETPs. For
ETPs that are participating in the CLP
Program, the Exchange proposes that the
annual fees continue to be $35,000. In
conjunction with the proposed
elimination of annual fees for ETPs
listed on the Exchange, the Exchange is
also planning to file a separate proposal
that will eliminate enhanced rebates for
lead market makers (‘‘LMMs’’) in LMM
Securities 8 under the Exchange’s LMM
Program,9 which was in part subsidized
by the annual listing fees.
Currently, Rule 14.13(b)(2)(C)
provides that the annual fee for an ETP
that is not participating in the CLP
Program is charged quarterly on a tiered
basis based on the ETP’s consolidated
average daily volume (the ‘‘CADV’’), as
defined below, during the quarter
preceding the billing date. Specifically,
the Exchange charges issuers of ETPs on
a quarterly basis as follows:
Quarterly
fee
CADV
0–10,000 .................
10,001–40,000 ........
40,001–80,000 ........
80,001–150,000 ......
150,001–400,000 ....
Greater than
400,000 ...............
Annual
fee
$1,250
2,000
3,000
3,750
4,500
$5,000
8,000
12,000
15,000
18,000
(1)
(1 )
1 Free.
As mentioned above, the Exchange is
proposing to eliminate all annual fees
for ETPs that are not participating in the
CLP Program, which includes the fees
associated with each of the CADV tiers
above. Specifically, the Exchange is
proposing that issuers of each class of
securities that is a domestic or foreign
issue listed on the Exchange as an ETP
that is not currently participating in the
CLP Program will pay no annual fee to
the Exchange.
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.10
Specifically, the Exchange believes that
7 The Exchange notes that the CLP Program
referenced in this proposal will be discontinued as
of December 31, 2014. The references to the CLP
Program herein do not apply to the Exchange’s
Supplemental CLP Program for ETPs, which is
defined in Interpretation and Policy .03 to Rule
11.8.
8 As defined in Rule 11.8(e)(1)(C), LMM Security
means an ETP that has an LMM.
9 See BATS Rule 11.8(e).
10 15 U.S.C. 78f.
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64435
the proposed rule change is consistent
with Section 6(b)(4) and 6(b)(5) of the
Act,11 in that it provides for the
equitable allocation of reasonable dues,
fees and other charges among issuers
and it does not unfairly discriminate
between customers, issuers, brokers or
dealers.
The Exchange is proposing to
eliminate all annual listing fees for ETPs
listed on the Exchange, except for those
ETPs that are participating in the CLP
Program, which will significantly
reduce listing fees for most new issuers
and transfer listings in ETPs (with the
exception of ETPs with a CADV greater
than 400,000 for which there already
was no annual listing fee), which the
Exchange believes is equitable,
reasonable, and non-discriminatory
because the annual fee for listings will
be applied equally to all ETPs newly
listed on the Exchange. Further, there
are currently no ETPs listed on the
Exchange that are receiving the pricing
for having a CADV of greater than
400,000. The Exchange also believes
that continuing to charge $35,000
annually for ETPs that continue to
participate in the CLP Program is
equitable and non-discriminatory
because the costs associated with
operating the CLP Program are
significantly higher than the anticipated
costs associated with the listing of ETPs
on the Exchange that are not
participating in the CLP Program and
are generally designed to at least in part
offset the costs to the Exchange to
operate the CLP Program. Further, ETPs
participating in the CLP Program may
opt out of the CLP Program at any time
in order to be eligible for having no
annual listing fees.
Based on the foregoing, the Exchange
believes that its proposed elimination of
annual fees for ETPs that are not
participating in the CLP Program is a
reasonable, equitable, and nondiscriminatory allocation of fees to
issuers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
With respect to the proposed new
pricing for the listing of ETPs, the
Exchange does not believe that the
changes burden competition, but
instead, enhance competition, as it is
intended to increase the
competitiveness of the Exchange’s
listings program by allowing the
11 15
E:\FR\FM\29OCN1.SGM
U.S.C. 78f(b)(4) and (5).
29OCN1
64436
Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices
Exchange to offer ETPs the ability to list
on the Exchange without having to pay
any annual fees. As such, the proposal
is a competitive proposal that is
intended to attract additional ETP
listings, which will, in turn, benefit the
Exchange and all other BATS-listed
ETPs.
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 12 and paragraph (f) of Rule
19b–4 thereunder13 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.
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BATS–2014–050 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–BATS–2014–050. 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 (https://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 such
filing also will be available for
inspection and copying at the principal
offices 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–BATS–
2014–050, and should be submitted on
or before November 19, 2014.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.14
change to adopt new NYSE Arca
Equities Rule 8.900, which would
govern the listing and trading of
Managed Portfolio Shares, and to list
and trade shares of the ActiveShares
Large-Cap Fund, ActiveShares Mid-Cap
Fund, and ActiveShares Multi-Cap
Fund (each a ‘‘Fund’’ and, collectively,
‘‘Funds’’) under proposed NYSE Arca
Equities Rule 8.900.3 The proposed rule
change was published for comment in
the Federal Register on February 26,
2014.4 The Commission received one
comment letter on the proposed rule
change during the initial comment
period.5
On April 7, 2014, pursuant to Section
19(b)(2) of the Exchange Act,6 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to approve or
disapprove the proposed rule change.7
The Commission received two
additional comment letters on the
proposed rule change, including a letter
from the Exchange in support of its
proposal.8 On May 27, 2014, the
Commission instituted proceedings
under Section 19(b)(2)(B) of the
Exchange Act 9 to determine whether to
approve or disapprove the proposed
rule change.10 The Commission
Kevin M. O’Neill,
Deputy Secretary.
3 The Commission notes that Precidian ETFs
Trust, which would be the issuer of the Funds, filed
an Application for an Order under Section 6(c) of
the 1940 Act for exemptions from various
provisions of the 1940 Act and rules thereunder
(File No. 812–14116), dated July 18, 2013
(‘‘Exemptive Application’’). The Commission
published notice of this application (‘‘Notice of
Application for Exemptive Relief’’) on October 21,
2014. See Investment Company Act Release No.
31300 (Oct. 21, 2014) (Precidian ETFs Trust, et al.;
Notice of Application).
4 See Securities Exchange Act Release No. 71588
(Feb. 20, 2014), 79 FR 10848 (‘‘Notice’’), available
at https://www.sec.gov/rules/sro/nysearca/2014/3471588.pdf.
5 See Letter from Gary L. Gastineau, President,
ETF Consultants.com, Inc., to Elizabeth M. Murphy,
Secretary, Commission (Mar. 18, 2014) (‘‘Gastineau
Letter’’). All comments on this proposal (see also
notes 8 and 11, infra) are available at https://
www.sec.gov/comments/sr-nysearca-2014-10/
nysearca201410.shtml.
6 15 U.S.C. 78s(b)(2).
7 See Securities Exchange Act Release No. 71895,
79 FR 20285 (Apr. 11, 2014). The Commission
designated a longer period within which to take
action on the proposed rule change and designated
May 27, 2014, as the date by which it should
approve, disapprove, or institute proceedings to
determine whether to disapprove the proposed rule
change.
8 See Letter from Dennis J. DeCore, Former CoHead U.S. Index Arbitrage (1997–2007), Nomura
Securities, to Elizabeth M. Murphy, Secretary,
Commission (Apr. 8, 2014) (‘‘DeCore Letter’’); Letter
from Martha Redding, Chief Counsel and Assistant
Corporate Secretary, NYSE Euronext, to Secretary,
Commission (May 14, 2014) (‘‘Response Letter’’).
9 15 U.S.C. 78s(b)(2)(B).
10 See Securities Exchange Act Release No. 72255,
79 FR 31362 (June 2, 2014). Specifically, the
[FR Doc. 2014–25668 Filed 10–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73424; File No. SR–
NYSEArca–2014–10]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Disapproving a
Proposed Rule Change To Adopt NYSE
Arca Equities Rule 8.900, Which
Permits the Listing and Trading of
Managed Portfolio Shares, and To List
and Trade Shares of the ActiveShares
Large-Cap Fund, ActiveShares MidCap Fund, and ActiveShares Multi-Cap
Fund Pursuant to That Rule
October 24, 2014.
On February 7, 2014, NYSE Arca, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f).
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]]>Agencies
[Federal Register Volume 79, Number 209 (Wednesday, October 29, 2014)]
[Notices]
[Pages 64434-64436]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25668]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73414; File No. SR-BATS-2014-050]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use of BATS Exchange, Inc.
October 23, 2014.
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 October 16, 2014, BATS Exchange, Inc. (the ``Exchange'' or ``BATS
'') filed with the Securities and Exchange Commission (``Commission'')
a 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
[[Page 64435]]
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 filed a proposal to amend the fees applicable to
securities listed on the Exchange pursuant to BATS Rule 14.13. Changes
to the fee schedule pursuant to this proposal are effective upon
filing.
The text of the proposed rule change is available at the Exchange's
Web site at https://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
On August 30, 2011, the Exchange received approval of rules
applicable to the qualification, listing, and delisting of companies on
the Exchange,\3\ which it modified on February 8, 2012 in order to
adopt pricing for the listing of exchange traded products (``ETPs'' \4\
on the Exchange,\5\ which it subsequently modified again on June 4,
2014.\6\ The Exchange proposes to modify Rule 14.13, entitled ``Company
Listing Fees'' to eliminate the annual fees for ETPs that are not
participating in the competitive liquidity provider program under
Interpretation and Policy .02 to Rule 11.8 (the ``CLP Program'').\7\
The Exchange is not proposing to eliminate the $5,000 application fee
for ETPs. For ETPs that are participating in the CLP Program, the
Exchange proposes that the annual fees continue to be $35,000. In
conjunction with the proposed elimination of annual fees for ETPs
listed on the Exchange, the Exchange is also planning to file a
separate proposal that will eliminate enhanced rebates for lead market
makers (``LMMs'') in LMM Securities \8\ under the Exchange's LMM
Program,\9\ which was in part subsidized by the annual listing fees.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 65225 (August 30,
2011) 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
\4\ As defined in BATS Rule 11.8(e)(1)(A), the term ``ETP''
means any security listed pursuant to Exchange Rule 14.11.
\5\ See Securities Exchange Act Release No. 66422 (February 17,
2012) 77 FR 11179 (February 24, 2012) (SR-BATS-2012-010).
\6\ See Securities Exchange Act Release No. 72377 (June 12,
2014) 79 FR 34822 (June 18, 2014) (SR-BATS-2014-024).
\7\ The Exchange notes that the CLP Program referenced in this
proposal will be discontinued as of December 31, 2014. The
references to the CLP Program herein do not apply to the Exchange's
Supplemental CLP Program for ETPs, which is defined in
Interpretation and Policy .03 to Rule 11.8.
\8\ As defined in Rule 11.8(e)(1)(C), LMM Security means an ETP
that has an LMM.
\9\ See BATS Rule 11.8(e).
---------------------------------------------------------------------------
Currently, Rule 14.13(b)(2)(C) provides that the annual fee for an
ETP that is not participating in the CLP Program is charged quarterly
on a tiered basis based on the ETP's consolidated average daily volume
(the ``CADV''), as defined below, during the quarter preceding the
billing date. Specifically, the Exchange charges issuers of ETPs on a
quarterly basis as follows:
------------------------------------------------------------------------
Quarterly Annual
CADV fee fee
------------------------------------------------------------------------
0-10,000......................................... $1,250 $5,000
10,001-40,000.................................... 2,000 8,000
40,001-80,000.................................... 3,000 12,000
80,001-150,000................................... 3,750 15,000
150,001-400,000.................................. 4,500 18,000
Greater than 400,000............................. (\1\) (\1\)
------------------------------------------------------------------------
\1\ Free.
As mentioned above, the Exchange is proposing to eliminate all
annual fees for ETPs that are not participating in the CLP Program,
which includes the fees associated with each of the CADV tiers above.
Specifically, the Exchange is proposing that issuers of each class of
securities that is a domestic or foreign issue listed on the Exchange
as an ETP that is not currently participating in the CLP Program will
pay no annual fee to the Exchange.
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.\10\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) and 6(b)(5) of the Act,\11\ in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among issuers and it does not unfairly discriminate
between customers, issuers, brokers or dealers.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange is proposing to eliminate all annual listing fees for
ETPs listed on the Exchange, except for those ETPs that are
participating in the CLP Program, which will significantly reduce
listing fees for most new issuers and transfer listings in ETPs (with
the exception of ETPs with a CADV greater than 400,000 for which there
already was no annual listing fee), which the Exchange believes is
equitable, reasonable, and non-discriminatory because the annual fee
for listings will be applied equally to all ETPs newly listed on the
Exchange. Further, there are currently no ETPs listed on the Exchange
that are receiving the pricing for having a CADV of greater than
400,000. The Exchange also believes that continuing to charge $35,000
annually for ETPs that continue to participate in the CLP Program is
equitable and non-discriminatory because the costs associated with
operating the CLP Program are significantly higher than the anticipated
costs associated with the listing of ETPs on the Exchange that are not
participating in the CLP Program and are generally designed to at least
in part offset the costs to the Exchange to operate the CLP Program.
Further, ETPs participating in the CLP Program may opt out of the CLP
Program at any time in order to be eligible for having no annual
listing fees.
Based on the foregoing, the Exchange believes that its proposed
elimination of annual fees for ETPs that are not participating in the
CLP Program is a reasonable, equitable, and non-discriminatory
allocation of fees to issuers.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. With
respect to the proposed new pricing for the listing of ETPs, the
Exchange does not believe that the changes burden competition, but
instead, enhance competition, as it is intended to increase the
competitiveness of the Exchange's listings program by allowing the
[[Page 64436]]
Exchange to offer ETPs the ability to list on the Exchange without
having to pay any annual fees. As such, the proposal is a competitive
proposal that is intended to attract additional ETP listings, which
will, in turn, benefit the Exchange and all other BATS-listed ETPs.
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 \12\ and paragraph (f) of Rule 19b-4
thereunder\13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BATS-2014-050 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-BATS-2014-050. 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 (https://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 such filing also will be available
for inspection and copying at the principal offices 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-BATS-2014-050,
and should be submitted on or before November 19, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25668 Filed 10-28-14; 8:45 am]
BILLING CODE 8011-01-P
