Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules 7001, 7003 and 7018, 23312-23318 [2015-09628]
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Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of
the filing. However, pursuant to Rule
19b–4(f)(6)(iii),11 the Commission may
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. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. As represented by the
Exchange, excluding March 31, 2015
from any CADV or ADV calculation
described in the Equities Fee Schedule
would reasonably ensure that any
market participant on the Exchange
would not be negatively impacted by
the issues that occurred on March 31,
2015 with respect to billing on the
Exchange. Accordingly, waiving the 30day operative delay would eliminate the
potential for confusion among ETP
Holders and the public regarding how
the Exchange will calculate volume,
liquidity, and quoting thresholds related
to billing for activity on the Exchange
during March 2015 and, more
specifically, on March 31, 2015, and
permit the Exchange to determine
transaction fees and credits for ETP
Holders in a timely manner after the end
of the billing month of March 2015.
Therefore, the Commission hereby
designates the proposed rule change
operative upon filing.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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) of the Act 13 to
determine whether the proposed rule
should be approved or disapproved.
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IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 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).
13 15 U.S.C. 78s(b)(2)(B).
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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:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Exchange Rules 7001, 7003 and 7018
• 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–
NYSEArca–2015–31 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–NYSEArca-2015–31. 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
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2015–31, and should be
submitted on or before May 18, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–09627 Filed 4–24–15; 8:45 am]
[Release No. 34–74773; File No. SR–BX–
2015–022]
April 21, 2015.
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 April 10,
2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend BX
Rule 7001 trading rights fees and to no
longer waive certain membership and
trading rights fees for BX members
seeking to participate solely in the BX
Options Market, to eliminate the
Equities Regulatory Fee in BX Rule
7003, as well as to amend the fee
schedule under Exchange Rule 7018 and
to correct a typographical error in the
rule.
The text of the proposed rule change
is also available on the Exchange’s Web
site at https://
nasdaqomxbx.cchwallstreet.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 aspects of such
statements.
BILLING CODE 8011–01–P
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange is proposing to amend
the trading rights fee 3 and to no longer
waive certain membership and trading
rights fees for BX members seeking to
participate solely in the BX Options
Market in BX Rule 7001(a), to eliminate
the Equities Regulatory Fee in BX Rule
7003(b), as well as to amend the fee
schedule under Exchange Rule 7018.
Specifically, the Exchange proposes to
amend BX Rule 7001(a) to increase the
trading rights fee each Exchange
member is assessed from $500 per
month to $1,000 per month.
Additionally, the Exchange will no
longer waive the membership fee and
the trading rights fee for BX members
who solely conduct an options business.
These fee changes and elimination of fee
waivers reflect that this market is now
better established and BX no longer
needs to rely on such waivers to attract
market participants.
The Exchange also proposes to
eliminate the Equities Regulatory Fee
(‘‘ERF’’) set forth in BX Rule 7003(b).
The ERF is a tier-based fee assessed
annually at the beginning of the
calendar year that covers, in part, the
regulatory costs of the Exchange. The
ERF uses a member firm’s historical
average daily orders entered on the
Exchange over the prior calendar year as
a measure of the member’s expected
current year’s Exchange activity. The
purpose of the ERF is to more closely
allocate the regulatory expenses
incurred by the Exchange to the member
firms responsible for those expenses.
The Exchange now proposes to
eliminate this fee because the Exchange
believes it is no longer necessary to
cover regulatory costs based on historic
volume.4
The Exchange is proposing to amend
BX Rule 7018(a) to decrease the credits
and charges for orders that access or
provide liquidity in the NASDAQ OMX
BX Equities System (the ‘‘System’’).
Specifically, both for orders that
receive price improvement and execute
against an order with Midpoint pegging
and those with Midpoint pegging that
3 The Trading Rights Fee is assessed on all
persons that are Exchange members as of a date
determined by the Exchange in each month. This
fee is not refundable in the event that a person
ceases to be an Exchange member following the
date on which the fee is assessed. See Rule 7001.
4 Despite eliminating the ERF, the Exchange
represents that it will continue to have adequate
resources to fund its regulatory program and to
fulfill its responsibilities as a self-regulatory
organization.
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remove liquidity, the credit is being
reduced from $0.0005 per share
executed to $0.0000 per share executed.
For orders that access liquidity
(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
entered by a member that accesses
liquidity equal to or exceeding 0.1% of
total Consolidated Volume 5 during a
month the credit is being reduced from
$0.0015 per share executed to $0.0010
per share executed.
For an order that accesses liquidity
(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
entered by a member with a daily
average volume of liquidity provided in
all securities during the month of 1
million or more shares, the Exchange
proposes to change the parameter that
the daily average volume of liquidity
provided in all securities during the
month of 1 million or more shares
entered by a member to a parameter
whereby a member must instead add
0.015% of total Consolidated Volume
during a month. Additionally, the credit
will be reduced from $0.0013 per share
executed to $0.0008 per share executed.
The Exchange proposes to reduce the
credit for orders that access liquidity
(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
entered by a member that provides an
average daily volume of at least 25,000,
but less than 1 million, shares of
liquidity during the month from $0.0011
per share executed to $0.0006 per share
executed. The Exchange also proposes
to also remove the ‘‘but less than 1
million’’ shares cap parameter.
BX proposes to reduce the credit for
BSTG,6 BSCN,7 BMOP,8 BTFY,9
BCRT,10 BDRK 11 or BCST 12 orders that
access liquidity in the System
5 Consolidated Volume is defined as the total
consolidated volume reported to all consolidated
transaction reporting plans by all exchanges and
trade reporting facilities during a month in equity
securities, excluding executed orders with a size of
less than one round lot. For purposes of calculating
Consolidated Volume and the extent of a member’s
trading activity, expressed as a percentage of or
ratio to Consolidated Volume, the date of the
annual reconstitution of the Russell Investments
Indexes shall be excluded from both total
Consolidated Volume and the member’s trading
activitiy. See Rule 7018(a).
6 See BX Rule 4758(a)(1)(A)(iii).
7 See BX Rule 4758(a)(1)(A)(iv).
8 See BX Rule 4758(a)(1)(A)(vi).
9 See BX Rule 4758(a)(1)(A)(v).
10 See BX Rule 4758(a)(1)(A)(vii).
11 See BX Rule 4758(a)(1)(A)(viii).
12 See BX Rule 4758(a)(1)(A)(ix).
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(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
from $0.0011 per share executed to
$0.0006 per share executed.
The Exchange next proposes to reduce
the charges for providing liquidity
through the System as well.
Specifically, the charge for displayed
orders entered by a Qualified Market
Maker (‘‘QMM’’) (Tier 1) will be
reduced from $0.0014 per share
executed to $0.0009 per share executed
and the charge for displayed orders
entered by a QMM (Tier 2) will be
eliminated, therefore, the parenthetical
with ‘‘Tier 1’’ following ‘‘Displayed
order entered by a Qualified Market
Maker’’ will be eliminated as well since
there will no longer be a Tier 2. For a
displayed order entered by a member
that adds liquidity equal to or exceeding
0.25% of total Consolidated Volume
during a month the charge will be
reduced from $0.00165 per share
executed to $0.0012 per share executed.
BX next proposes to reduce the charge
for a displayed order entered by a
member that provides an average daily
volume of 2.5 million or more shares of
liquidity during the month from $0.0018
per share executed to $0.0014 per share
executed, but will change the parameter
that a member provide an average daily
volume of 2.5 million or more shares of
liquidity during the month to the
parameter that the member must add
liquidity equal to or exceeding 0.04% of
total Consolidated Volume during a
month.
The Exchange proposes to reduce the
charge for an order with Midpoint
pegging entered by a member that
provides an average daily volume of 2
million or more shares of non-displayed
liquidity during the month from $0.0005
per share executed to $0.0002 per share
executed, but will replace the parameter
that a member provide an average daily
volume of 2 million or more shares of
non-displayed liquidity during the
month with the parameter that a
member must add 0.03% of total
Consolidated Volume of non-displayed
liquidity.
BX also proposes to reduce the charge
for an order with Midpoint pegging
entered by a member that provides an
average daily volume of 1 million or
more, but less than 2 million, shares of
non-displayed liquidity from $0.0009
per share executed to $0.0004 per share
executed, but will replace the parameter
that the member provides an average
daily volume of 1 million or more, but
less than 2 million, shares of nondisplayed liquidity with the parameter
that a member must add 0.015% of total
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Consolidated Volume of non-displayed
liquidity.
The Exchange proposes to also reduce
the charge for an order with Midpoint
pegging entered by other member from
0.0015 per share executed to 0.0010 per
share executed.
The Exchange proposes to reduce the
charge for non-displayed orders (other
than orders with Midpoint pegging)
entered by a member that provides an
average daily volume of 5 million or
more shares of non-displayed liquidity
from $0.0019 per share executed to
$0.0014 per share executed, but will
replace the parameter that the member
provides an average daily volume of 5
million or more shares of non-displayed
liquidity with the parameter that a
member must add 0.075% of total
Consolidated Volume of non-displayed
liquidity.
The Exchange also proposes to reduce
the charge for non-displayed orders
(other than orders with Midpoint
pegging) entered by a member that
provides an average daily volume of 3.5
million or more shares (but less than 5
million shares) of non-displayed
liquidity from $0.0024 per share
executed to $0.0019 per share executed,
but will replace the parameter that the
member provides an average daily
volume of 3.5 million or more shares
(but less than 5 million shares) of nondisplayed liquidity with the parameter
that a member must add 0.055% of total
Consolidated Volume of non-displayed
liquidity.
BX also proposes to amend how a
firm may become a QMM (Tier 1), in
part, by eliminating two of these ways.
Also, and as a result, the parenthetical
with ‘‘Tier 1’’ following ‘‘A Firm may
become a Qualified Market Maker’’ will
be eliminated since there will no longer
be a Tier 2 as previously stated. The first
option eliminated is by being a member
with (i) shares of liquidity provided and
(ii) total shares of liquidity accessed and
provided in all securities through one or
more of its System market maker
participant identifier (‘‘MPIDs’’) that
represent more than 0.40% and 0.50%,
respectively, of Consolidated Volume.
For a member qualifying under this
method, the member must have at least
one Qualified MPID, that is, an MPID
through which, for at least 150
securities, the QMM quotes at the
national best bid or offer (‘‘NBBO’’) an
average of at least 25% of the time
during regular market hours (9:30 a.m.
through 4:00 p.m.) during the month.
The second option eliminated is by
being a member with (i) shares of
liquidity provided and (ii) total shares
of liquidity accessed and provided in all
securities through one or more of its
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System MPIDs that represent more than
0.30% and 0.45%, respectively, of
Consolidated Volume during the month.
For a member qualifying under this
method, the member must have at least
one Qualified MPID, that is, an MPID
through which, for at least 400
securities, the QMM quotes at the NBBO
an average of at least 25% of the time
during regular market hours (9:30 a.m.
through 4:00 p.m.) during the month.
The third option remains, but is being
amended. Currently, this option states
that a firm may become a QMM (Tier 1)
by being a member with (i) shares of
liquidity provided and (ii) total shares
of liquidity accessed and provided in all
securities through one or more of its
System MPIDs that represent more than
0.20% and 0.30%, respectively, of
Consolidated Volume during the month.
For a member qualifying under this
method, the member must have at least
one Qualified MPID, that is, an MPID
through which, for at least 200
securities, the Qualified Market Maker
quotes at the NBBO an average of at
least 50% of the time during regular
market hours (9:30 a.m. through 4:00
p.m.) during the month. The member
must also provide an average daily
volume of 1.5M shares or more using
orders with midpoint pegging during
the month. BX proposes to amend the
beginning of this requirement to say that
a firm qualifies by being a member that
provides through one or more of its
System MPIDs more than 0.30% of
Consolidated Volume during the month
(the rest of the requirement remains
unchanged).
BX proposes to eliminate QMM (Tier
2) altogether.
Finally, the Exchange proposes to
reduce certain credits for retail orders in
BX Rule 7018(e). Specifically, BX
proposes to reduce the credit from
$0.0005 per share executed to $0.0002
per share executed for a retail order that
receives price improvement (when the
accepted price of an order is different
than the executed price of an order) and
accesses a non-Retail Price
Improvement order with Midpoint
pegging. Also, ‘‘that’’ in the
parenthetical above has been changed to
‘‘than’’ to reflect the correction to a
typographical error in the corresponding
rule text. Lastly, the Exchange proposes
to reduce the credit from $0.0017 per
share executed to $0.0012 per share
executed for a retail order that accesses
other liquidity on the Exchange book.
2. Statutory Basis
BX believes that the proposed rule
changes are consistent with the
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provisions of Section 6 of the Act,13 in
general, and with Sections 6(b)(4) and
6(b)(5) of the Act,14 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among members and issuers and
other persons using any facility or
system which the Exchange operates or
controls, and is 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; and
are not designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that the
proposed change to amend BX Rule
7001(a) to increase the trading rights fee
each Exchange member is assessed from
$500 per month to $1,000 per month is
reasonable because the Exchange desires
to continue to cover the ongoing costs
of operating the platform for the benefit
of its members. BX also believes that the
proposed change is consistent with an
equitable allocation of fees and is not
unfairly discriminatory because it
affects all members equally in the same
way.
The Exchange believes that the
proposed change to eliminate the waiver
of the membership fee and the trading
rights fee for BX members who solely
conduct an options business is
reasonable because the Exchange no
longer believes it is necessary to waive
these fees to attract market participants
to the BX Options Market since this
market is now better established and BX
no longer needs to rely on such waivers
to attract market participants. The
Exchange believes that the proposed
changes are equitable and not unfairly
discriminatory because the elimination
of the membership fee and trading rights
fee waivers will uniformly apply to BX
Options Participants that transact
business solely on the BX Options
Market.
The Exchange believes that the
proposed change to eliminate the ERF
set forth in BX Rule 7003(b) is
reasonable because it is no longer
necessary to cover regulatory costs
based on historic volume plus not all
members pay this fee. The Exchange
believes that the proposed change is
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equitable and not unfairly
discriminatory because the elimination
of the ERF applies uniformly and it
affects similarly situated members in the
same way.
The proposed reduction to the credits
and charges in the fee schedule under
Exchange Rule 7018 are reflective of
BX’s ongoing efforts to use pricing
incentive programs to attract order flow
to BX and improve market quality. The
goal of these pricing incentives is to
provide meaningful incentives for
members to increase their participation
on BX. Specifically, the Exchange
believes that the reduction to the credits
from $0.0005 per share executed to
$0.0000 per share executed for both
orders that receive price improvement
and execute either against an order with
Midpoint pegging or those with
Midpoint pegging that remove liquidity,
are reasonable because these reduced
credits are aligned with the reduced
charges BX is also putting in place
through this filing. The Exchange also
believes that the proposed changes are
equitably allocated and not unfairly
discriminatory because the credit
reductions apply uniformly to all
members that previously had qualified
to receive such a credit.
The Exchange believes that the
reduction to the credit from $0.0015 per
share executed to $0.0010 per share
executed for orders that accesses
liquidity (excluding orders with
Midpoint pegging and excluding orders
that receive price improvement and
execute against an order with Midpoint
pegging) entered by a member that
accesses liquidity equal to or exceeding
0.1% of total Consolidated Volume
during a month is reasonable because
the reduced credit aligns it more closely
with the reduced charges BX is also
putting in place through this filing. The
Exchange also believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
the credit reduction applies uniformly
to all members that qualify to receive
such a credit.
The Exchange believes that the
reduction to the credit from $0.0013 per
share executed to $0.0008 per share
executed for an order that accesses
liquidity (excluding orders with
Midpoint pegging and excluding orders
that receive price improvement and
execute against an order with Midpoint
pegging) entered by a member with a
daily average volume of liquidity
provided in all securities during the
month of 1 million or more shares, and
the change to the daily average volume
of liquidity provided in all securities
during the month of 1 million or more
shares parameter, to a parameter that the
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member that [sic] must add 0.015% of
total Consolidated Volume during a
month is reasonable because the
reduced credit aligns it more closely
with the reduced charges BX is also
putting in place through this filing.
Also, the amended parameter switching
to total Consolidated Volume will allow
a member’s target activity levels to
adjust with overall market volumes
making such targets easier to reach
during low share volume months and
more difficult to reach during higher
share volume months. However, the
percent of total Consolidated Volume
requirement approximately represents a
similar level of volume on average as
the previous parameter did given the
current Consolidated Volume
requirement. Additionally, the
Exchange further believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
the credit applies uniformly to all
members that qualify to receive such a
credit.
The Exchange believes that the
reduction to the credit from $0.0011 per
share executed to $0.0006 per share
executed for orders that access liquidity
(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
entered by a member that provides an
average daily volume of at least 25,000,
but less than 1 million, shares of
liquidity during the month and the
removal of the ‘‘but less than 1 million’’
shares cap parameter is reasonable
because it reduces confusion as to when
the rate applies since the next tier is tied
to the percent of total Consolidated
Volume. The elimination of the 1
million share cap removes a restriction
that allows more members to qualify for
this credit. Additionally, the Exchange
further believes that the proposed
change is equitably allocated and not
unfairly discriminatory because the
credit applies uniformly to all members
that qualify to receive such a credit.
The Exchange believes that the
reduction to the credit from $0.0011 per
share executed to $0.0006 per share
executed for BSTG, BSCN, BMOP,
BTFY, BCRT, BDRK or BCST orders that
access liquidity in the System
(excluding orders with Midpoint
pegging and excluding orders that
receive price improvement and execute
against an order with Midpoint pegging)
is reasonable because the reduced credit
aligns it more closely with the reduced
charges BX is also putting in place
through this filing. Additionally, the
Exchange further believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
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the credit applies uniformly to all
members that qualify to receive such a
credit.
BX also believes that the reduction to
the charges from $0.0014 per share
executed to $0.0009 per share executed
for displayed orders entered by a QMM
(Tier 1) and the elimination of the
$0.0017 per share executed charge for
displayed orders entered by a QMM
(Tier 2) are reasonable because the
reduced charge and elimination of
another charge align them more closely
with the reduced credits BX is also
putting in place through this filing.
Also, since the behavior required to
qualify to become a QMM (Tier 2) has
not been met by firms recently, and in
light of the lack of interest by firms in
meeting these requirements, the
Exchange proposes to eliminate it and
the associated rate from the fee
schedule. Additionally, the Exchange
further believes that the proposed
changes are equitably allocated and not
unfairly discriminatory because the
reduced QMM (Tier 1) charge and
eliminated QMM (Tier 2) charge apply
uniformly to all members that display
an order entered by a QMM (Tier 1) or
previously displayed and order entered
by a QMM (Tier 2). The parenthetical
with ‘‘Tier 1’’ following ‘‘Displayed
order entered by a Qualified Market
Maker’’ also will be eliminated since
there will no longer be a Tier 2 and the
Exchange believes that this change
clarifies and eliminates the potential for
confusion to the benefit of market
participants. The Exchange believes that
this clarification will promote market
participants’ understanding of the rule
and its administration.
The Exchange believes that the
reduction to the charge from $0.00165
per share executed to $0.0012 per share
executed for a displayed order entered
by a member that adds liquidity equal
to or exceeding 0.25% of total
Consolidated Volume during a month is
reasonable because the reduced charge
is designed to encourage additional
posted liquidity that, in turn, will
enable the Exchange to provide a more
liquid marketplace and attract contra
order flow. Additionally, the Exchange
further believes that the proposed
change is equitably allocated and not
unfairly discriminatory because all
members can add liquidity to BX and
the more liquidity a member adds the
lower the charge because the member is
improving the quality of the market by
providing this additional liquidity.
BX believes that the reduction to the
charge from $0.0018 per share executed
to $0.0014 per share executed coupled
with the change to the parameter that a
member provide an average daily
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volume of 2.5 million or more shares of
liquidity during the month to a
parameter that the member add liquidity
equal to or exceeding 0.04% of total
Consolidated Volume during a month is
reasonable because the reduced charge
is designed to encourage additional
posted liquidity that, in turn, will
increase the liquidity of the market and
attract contra order flow. Also, the
amended parameter switching to total
Consolidated Volume will allow a
member’s target activity levels to adjust
with overall market volumes making
such targets easier to reach during low
share volume months and more difficult
to reach during higher share volume
months. However, the percent of total
Consolidated Volume requirement
approximately represents a similar level
of volume on average as the previous
parameter did given the current
Consolidated Volume requirement.
Additionally, the Exchange further
believes that the proposed change is
equitably allocated and not unfairly
discriminatory because all members can
add liquidity to BX and the more
liquidity a member adds the lower the
charge because the member is
improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the
reduction to the charge from $0.0005
per share executed to $0.0002 per share
executed coupled with a change to the
requirement for an order with Midpoint
pegging entered by a member that
provides an average daily volume of 2
million or more shares of non-displayed
liquidity during the month to the
requirement that a member adds 0.03%
of total Consolidated Volume of nondisplayed liquidity is reasonable
because the reduced charge is designed
to encourage additional posted liquidity
that, in turn, will enable the Exchange
to increase liquidity posted at the
midpoint and provide additional price
improvement opportunity for contra
orders. Also, the amended parameter
switching to total Consolidated Volume
will allow a member’s target activity
levels to adjust with overall market
volumes making such targets easier to
reach during low share volume months
and more difficult to reach during
higher share volume months. However,
the percent of total Consolidated
Volume requirement approximately
represents a similar level of volume on
average as the previous parameter did
given the current Consolidated Volume
requirement. Additionally, the
Exchange further believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
all members can add liquidity to BX and
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14:41 Apr 24, 2015
Jkt 235001
the more liquidity a member adds the
lower the charge because the member is
improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the
reduction to the charge from $0.0009
per share executed to $0.0004 per share
executed coupled with a change to the
requirement that for an order with
Midpoint pegging entered by a member
that provides an average daily volume of
1 million or more, but less than 2
million, shares of non-displayed
liquidity to that a member adds 0.015%
of total Consolidated Volume of nondisplayed liquidity is reasonable
because the reduced charge is designed
to encourage additional posted liquidity
that, in turn, will increase midpoint
liquidity and increase the chance of
incoming orders to receive price
improvement and thereby attract contra
order flow. Also, the amended
parameter switching to total
Consolidated Volume will allow a
member’s target activity levels to adjust
with overall market volumes making
such targets easier to reach during low
share volume months and more difficult
to reach during higher share volume
months. However, the percent of total
Consolidated Volume requirement
approximately represents a similar level
of volume on average as the previous
parameter did given the current
Consolidated Volume requirement.
Additionally, the Exchange further
believes that the proposed change is
equitably allocated and not unfairly
discriminatory because all members can
add liquidity to BX and the more
liquidity a member adds the lower the
charge because the member is
improving the quality of the market by
providing this additional liquidity.
BX also believes that the reduction to
the charges from $0.0015 per share
executed to $0.0010 per share executed
for an order with Midpoint pegging
entered by other member is reasonable
because the reduced charge is designed
to encourage additional posted liquidity
that, in turn, will increase midpoint
liquidity and increase the chance of
incoming orders to receive price
improvement and thereby attract contra
order flow. Additionally, the Exchange
further believes that the proposed
change is equitably allocated and not
unfairly discriminatory because all
members can add liquidity to BX and
the more liquidity a member adds the
lower the charge because the member is
improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the
reduction to the charges from $0.0019
per share executed to $0.0014 per share
executed for a non-displayed order
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
(other than orders with Midpoint
pegging) entered by a member that
provides an average daily volume of 5
million or more shares of non-displayed
liquidity coupled with a change to the
requirement that the member provides
an average daily volume of 5 million or
more shares of non-displayed liquidity
to a requirement that a member adds
0.075% of total Consolidated Volume of
non-displayed liquidity is reasonable
because the reduced charge is designed
to encourage additional posted liquidity
that, in turn, will enable the Exchange
to collect additional fees to provide
rebates and thereby attract contra order
flow. Also, the amended parameter
switching to total Consolidated Volume
will allow a member’s target activity
levels to adjust with overall market
volumes making such targets easier to
reach during low share volume months
and more difficult to reach during
higher share volume months. However,
the percent of total Consolidated
Volume requirement approximately
represents a similar level of volume on
average as the previous parameter did
given the current Consolidated Volume
requirement. Additionally, the
Exchange further believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
all members can add liquidity to BX and
the more liquidity a member adds the
lower the charge because the member is
improving the quality of the market by
providing this additional liquidity.
The Exchange also believes that the
reduction to the charges from $0.0024
per share executed to $0.0019 per share
executed for non-displayed orders
(other than orders with Midpoint
pegging) entered by a member that
provides an average daily volume of 3.5
million or more shares (but less than 5
million shares) of non-displayed
liquidity coupled with a change to the
requirement that the member adds
0.055% of total Consolidated Volume of
non-displayed liquidity is reasonable
because the reduced charge is designed
to encourage additional posted liquidity
that, in turn, will enable the Exchange
to collect additional fees to provide
rebates and thereby attract contra order
flow. Also, the amended parameter
switching to total Consolidated Volume
will allow a member’s target activity
levels to adjust with overall market
volumes making such targets easier to
reach during low share volume months
and more difficult to reach during
higher share volume months. However,
the percent of total Consolidated
Volume requirement approximately
represents a similar level of volume on
average as the previous parameter did
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given the current Consolidated Volume
requirement. Additionally, the
Exchange further believes that the
proposed change is equitably allocated
and not unfairly discriminatory because
all members can add liquidity to BX and
the more liquidity a member adds the
lower the charge because the member is
improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the
proposed change as to how a firm may
become a QMM (Tier 1) by eliminating
two of the ways to qualify as such,
amending the third option to qualify as
a QMM (Tier 1), and eliminating the
QMM (Tier 2), are reasonable because
the amending of the QMM program
refines the incentive to BX member
firms to enhance the quality of the
market by providing meaningful
improvement, to the benefit of all
market participants. The Exchange also
believes that the proposed amended
criteria of the qualification standard to
become a QMM (Tier 1) and the
elimination of the QMM (Tier 2)
qualification standard are reasonable
and an equitable allocation because the
proposed changes help to clearly define
how a firm can become a QMM and
eliminates requirements that firms were
not reaching. Additionally, the
Exchange believes that the proposed
change further perfects the mechanism
of a free and open market by refining
and making more effective the means by
which a member firm may qualify for
this beneficial, market improving
program. Accordingly, to the extent that
the amended standard increases the
number of member firms that qualify
under the tier, market quality will
increase. Also, the parenthetical with
‘‘Tier 1’’ following ‘‘A Firm may become
a Qualified Market Maker’’ also will be
eliminated since there will no longer be
a Tier 2 and the Exchange believes that
this change clarifies and eliminates the
potential for confusion to the benefit of
market participants. The Exchange
believes that this clarification will
promote market participants’
understanding of the rule and its
administration.
The Exchange also believes that the
reduction to the credit from $0.0005 per
share executed to $0.0002 per share
executed for a retail order that receives
price improvement (when the accepted
price of an order is different than the
executed price of an order) 15 and
accesses non-Retail Price Improvement
order with Midpoint pegging, as well as
15 As noted previously, the word ‘‘that’’ in the
parenthetical has been changed to ‘‘than’’ to reflect
the correction to a typographical error in the
corresponding rule text.
VerDate Sep<11>2014
14:41 Apr 24, 2015
Jkt 235001
the reduction to the credit from $0.0017
per share executed to $0.0012 per share
executed for a retail order that accesses
other liquidity on the Exchange book,
are reasonable because these reduced
credits align them with the reduced
charges collected from non-retail price
improvement orders BX is also putting
in place through this filing. The
Exchange also believes that the
proposed changes are equitably
allocated and not unfairly
discriminatory because the credit
reductions apply uniformly to all
members that previously had qualified
to receive such a credit. Lastly, the
Exchange believes that the correction of
the non-substantive typographical error
in Rule 7018(e) (changing ‘‘that’’ to
‘‘than’’) clarifies and eliminates the
potential for confusion to the benefit of
market participants. The Exchange
believes that this clarification will
promote market participants’
understanding of the rule and its
administration.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as
amended.16 BX notes that it operates in
a highly competitive market in which
market participants can readily favor
dozens of different competing
exchanges and alternative trading
systems if they deem fee levels at a
particular venue to be excessive, or
rebate opportunities available at other
venues to be more favorable. In such an
environment, BX must continually
adjust its fees to remain competitive
with other exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, BX believes that
the degree to which fee changes in this
market may impose any burden on
competition is extremely limited.
In this instance, the changes to fees
and credits, as well as changes to
membership and trading rights fees and
the ERF, do not impose a burden on
competition because the Exchange
membership is optional and is the
subject of competition from other
exchanges. The reduced credits and
charges are reflective of the intent to
increase the order flow on the Exchange.
For these reasons, the Exchange does
not believe that any of the proposed
changes will impair the ability of
members or competing order execution
venues to maintain their competitive
standing in the financial markets.
Moreover, because there are numerous
competitive alternatives to the use of the
Exchange, it is likely that BX will lose
market share as a result of the changes
if they are unattractive to market
participants.
Accordingly, BX does not believe that
the proposed rule changes will impair
the ability of members or competing
order execution venues to maintain
their competitive standing in the
financial markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 17 and paragraph (f) of Rule
19b–4 18 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.
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–
BX–2015–022 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–BX–2015–022. 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
17 15
16 15
PO 00000
U.S.C. 78f(b)(8).
Frm 00065
Fmt 4703
18 17
Sfmt 4703
23317
E:\FR\FM\27APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
27APN1
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Federal Register / Vol. 80, No. 80 / Monday, April 27, 2015 / Notices
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–BX–
2015–022, and should be submitted on
or before May 18, 2015.
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Intent To Rule on Request To
Release Airport Property at the St.
George Airport, St. George, Utah
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of request to release
airport property.
AGENCY:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Jill M. Peterson,
Assistant Secretary.
The FAA proposes to rule and
invite public comment on the release of
land at St. George Airport under the
provisions of Section 125 of the
Wendell H. Ford Aviation Investment
Reform Act for the 21st Century (AIR
21), now 49 U.S.C. 47107(h)(2).
DATES: Comments must be received on
or before May 27, 2015.
ADDRESSES: Comments on this
application may be mailed or delivered
to the FAA at the following address: Mr.
John P. Bauer, Manager, Federal
Aviation Administration, Northwest
Mountain Region, Airports Division,
Denver Airports District Office, 26805 E.
68th Avenue, Suite 224, Denver,
Colorado 80249–6361.
In addition, one copy of any
comments submitted to the FAA must
be mailed or delivered to Mr. Gary
Esplin, City Manager, City of St. George,
Utah, at the following address: Mr. Gary
Esplin, City Manager, City of St. George,
175 East 200 North, St. George, Utah
84770.
[FR Doc. 2015–09628 Filed 4–24–15; 8:45 am]
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Military Reservist Economic Injury
Disaster Loans; Interest Rate for Third
Quarter FY 2015
In accordance with the Code of
Federal Regulations 13—Business Credit
and Assistance § 123.512, the following
interest rate is effective for Military
Reservist Economic Injury Disaster
Loans approved on or after April 20,
2015.
Rmajette on DSK2VPTVN1PROD with NOTICES
Military Reservist Loan Program—
4.000%
Dated: April 16, 2015.
Joseph P. Loddo,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2015–09637 Filed 4–24–15; 8:45 am]
BILLING CODE P
19 17
CFR 200.30–3(a)(12).
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14:41 Apr 24, 2015
Jkt 235001
SUMMARY:
Mr.
Marc Miller, Colorado Engineer/
Compliance Specialist, Federal Aviation
Administration, Northwest Mountain
Region, Denver Airports District Office,
26805 E. 68th Avenue, Suite 224,
Denver, Colorado 80249–6361.
The request to release property may
be reviewed, by appointment, in person
at this same location.
SUPPLEMENTARY INFORMATION: The FAA
invites public comment on the request
to release property at the St. George
Airport under the provisions of the AIR
21 (49 U.S.C. 47107(h)(2)).
On April 20, 2015, the FAA
determined that the request to release
property at the St. George Airport
submitted by the City of St. George
meets the procedural requirements of
the Federal Aviation Administration.
The following is a brief overview of
the request:
The City of St. George is proposing
the release from the terms, conditions,
reservations, and restrictions on the
remaining approximate 223 acres of the
former airport. A 40 acre parcel of
airport property had previously been
PO 00000
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Fmt 4703
Sfmt 4703
released by an instrument of release
dated June 11, 2013. Physical
constraints of the airport site required
the construction and opening of the
Replacement Airport in 2011,
approximately 15 miles to the east. The
former St. George Airport was
decommissioned on January 15, 2011.
The former airport is no longer needed
for aviation purposes and the release is
to allow for the sale of the property so
the proceeds from the sale can be used
towards payment of the City’s share of
the costs associated with the
Replacement Airport. The property will
be sold as the market improves, at fair
market value. Any person may inspect,
by appointment, the request in person at
the FAA office listed above under FOR
FURTHER INFORMATION CONTACT.
In addition, any person may, upon
appointment and request, inspect the
application, notice and other documents
germane to the application in person at
the St George Airport.
Issued in Denver, Colorado on April 20,
2015.
John P. Bauer,
Manager, Denver Airports District Office .
[FR Doc. 2015–09759 Filed 4–24–15; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Safety Advisory 2015–01]
Mechanical Inspections and Wheel
Impact Load Detector Standards for
Trains Transporting Large Amounts of
Class 3 Flammable Liquids
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
ACTION: Notice of Safety Advisory.
AGENCY:
Recent derailments have
occurred involving trains transporting
large quantities of petroleum crude oil
and ethanol. Preliminary investigation
of one of these recent derailments
involving a crude oil train indicates that
a mechanical defect involving a broken
tank car wheel may have caused or
contributed to the incident. FRA is
issuing this Safety Advisory to make
recommendations to enhance the
mechanical safety of the cars in trains
transporting large quantities of
flammable liquids. This Safety Advisory
recommends that railroads use highly
qualified individuals to conduct the
brake and mechanical inspections and
recommends a reduction to the impact
threshold levels the industry currently
uses for wayside detectors that measure
SUMMARY:
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]]>Agencies
[Federal Register Volume 80, Number 80 (Monday, April 27, 2015)]
[Notices]
[Pages 23312-23318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09628]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74773; File No. SR-BX-2015-022]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Exchange Rules 7001, 7003 and 7018
April 21, 2015.
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 April 10, 2015, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``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 proposes to amend BX Rule 7001 trading rights fees and
to no longer waive certain membership and trading rights fees for BX
members seeking to participate solely in the BX Options Market, to
eliminate the Equities Regulatory Fee in BX Rule 7003, as well as to
amend the fee schedule under Exchange Rule 7018 and to correct a
typographical error in the rule.
The text of the proposed rule change is also available on the
Exchange's Web site at https://nasdaqomxbx.cchwallstreet.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 aspects of such
statements.
[[Page 23313]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend the trading rights fee \3\ and
to no longer waive certain membership and trading rights fees for BX
members seeking to participate solely in the BX Options Market in BX
Rule 7001(a), to eliminate the Equities Regulatory Fee in BX Rule
7003(b), as well as to amend the fee schedule under Exchange Rule 7018.
---------------------------------------------------------------------------
\3\ The Trading Rights Fee is assessed on all persons that are
Exchange members as of a date determined by the Exchange in each
month. This fee is not refundable in the event that a person ceases
to be an Exchange member following the date on which the fee is
assessed. See Rule 7001.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to amend BX Rule 7001(a) to
increase the trading rights fee each Exchange member is assessed from
$500 per month to $1,000 per month. Additionally, the Exchange will no
longer waive the membership fee and the trading rights fee for BX
members who solely conduct an options business. These fee changes and
elimination of fee waivers reflect that this market is now better
established and BX no longer needs to rely on such waivers to attract
market participants.
The Exchange also proposes to eliminate the Equities Regulatory Fee
(``ERF'') set forth in BX Rule 7003(b). The ERF is a tier-based fee
assessed annually at the beginning of the calendar year that covers, in
part, the regulatory costs of the Exchange. The ERF uses a member
firm's historical average daily orders entered on the Exchange over the
prior calendar year as a measure of the member's expected current
year's Exchange activity. The purpose of the ERF is to more closely
allocate the regulatory expenses incurred by the Exchange to the member
firms responsible for those expenses. The Exchange now proposes to
eliminate this fee because the Exchange believes it is no longer
necessary to cover regulatory costs based on historic volume.\4\
---------------------------------------------------------------------------
\4\ Despite eliminating the ERF, the Exchange represents that it
will continue to have adequate resources to fund its regulatory
program and to fulfill its responsibilities as a self-regulatory
organization.
---------------------------------------------------------------------------
The Exchange is proposing to amend BX Rule 7018(a) to decrease the
credits and charges for orders that access or provide liquidity in the
NASDAQ OMX BX Equities System (the ``System'').
Specifically, both for orders that receive price improvement and
execute against an order with Midpoint pegging and those with Midpoint
pegging that remove liquidity, the credit is being reduced from $0.0005
per share executed to $0.0000 per share executed.
For orders that access liquidity (excluding orders with Midpoint
pegging and excluding orders that receive price improvement and execute
against an order with Midpoint pegging) entered by a member that
accesses liquidity equal to or exceeding 0.1% of total Consolidated
Volume \5\ during a month the credit is being reduced from $0.0015 per
share executed to $0.0010 per share executed.
---------------------------------------------------------------------------
\5\ Consolidated Volume is defined as the total consolidated
volume reported to all consolidated transaction reporting plans by
all exchanges and trade reporting facilities during a month in
equity securities, excluding executed orders with a size of less
than one round lot. For purposes of calculating Consolidated Volume
and the extent of a member's trading activity, expressed as a
percentage of or ratio to Consolidated Volume, the date of the
annual reconstitution of the Russell Investments Indexes shall be
excluded from both total Consolidated Volume and the member's
trading activitiy. See Rule 7018(a).
---------------------------------------------------------------------------
For an order that accesses liquidity (excluding orders with
Midpoint pegging and excluding orders that receive price improvement
and execute against an order with Midpoint pegging) entered by a member
with a daily average volume of liquidity provided in all securities
during the month of 1 million or more shares, the Exchange proposes to
change the parameter that the daily average volume of liquidity
provided in all securities during the month of 1 million or more shares
entered by a member to a parameter whereby a member must instead add
0.015% of total Consolidated Volume during a month. Additionally, the
credit will be reduced from $0.0013 per share executed to $0.0008 per
share executed.
The Exchange proposes to reduce the credit for orders that access
liquidity (excluding orders with Midpoint pegging and excluding orders
that receive price improvement and execute against an order with
Midpoint pegging) entered by a member that provides an average daily
volume of at least 25,000, but less than 1 million, shares of liquidity
during the month from $0.0011 per share executed to $0.0006 per share
executed. The Exchange also proposes to also remove the ``but less than
1 million'' shares cap parameter.
BX proposes to reduce the credit for BSTG,\6\ BSCN,\7\ BMOP,\8\
BTFY,\9\ BCRT,\10\ BDRK \11\ or BCST \12\ orders that access liquidity
in the System (excluding orders with Midpoint pegging and excluding
orders that receive price improvement and execute against an order with
Midpoint pegging) from $0.0011 per share executed to $0.0006 per share
executed.
---------------------------------------------------------------------------
\6\ See BX Rule 4758(a)(1)(A)(iii).
\7\ See BX Rule 4758(a)(1)(A)(iv).
\8\ See BX Rule 4758(a)(1)(A)(vi).
\9\ See BX Rule 4758(a)(1)(A)(v).
\10\ See BX Rule 4758(a)(1)(A)(vii).
\11\ See BX Rule 4758(a)(1)(A)(viii).
\12\ See BX Rule 4758(a)(1)(A)(ix).
---------------------------------------------------------------------------
The Exchange next proposes to reduce the charges for providing
liquidity through the System as well. Specifically, the charge for
displayed orders entered by a Qualified Market Maker (``QMM'') (Tier 1)
will be reduced from $0.0014 per share executed to $0.0009 per share
executed and the charge for displayed orders entered by a QMM (Tier 2)
will be eliminated, therefore, the parenthetical with ``Tier 1''
following ``Displayed order entered by a Qualified Market Maker'' will
be eliminated as well since there will no longer be a Tier 2. For a
displayed order entered by a member that adds liquidity equal to or
exceeding 0.25% of total Consolidated Volume during a month the charge
will be reduced from $0.00165 per share executed to $0.0012 per share
executed.
BX next proposes to reduce the charge for a displayed order entered
by a member that provides an average daily volume of 2.5 million or
more shares of liquidity during the month from $0.0018 per share
executed to $0.0014 per share executed, but will change the parameter
that a member provide an average daily volume of 2.5 million or more
shares of liquidity during the month to the parameter that the member
must add liquidity equal to or exceeding 0.04% of total Consolidated
Volume during a month.
The Exchange proposes to reduce the charge for an order with
Midpoint pegging entered by a member that provides an average daily
volume of 2 million or more shares of non-displayed liquidity during
the month from $0.0005 per share executed to $0.0002 per share
executed, but will replace the parameter that a member provide an
average daily volume of 2 million or more shares of non-displayed
liquidity during the month with the parameter that a member must add
0.03% of total Consolidated Volume of non-displayed liquidity.
BX also proposes to reduce the charge for an order with Midpoint
pegging entered by a member that provides an average daily volume of 1
million or more, but less than 2 million, shares of non-displayed
liquidity from $0.0009 per share executed to $0.0004 per share
executed, but will replace the parameter that the member provides an
average daily volume of 1 million or more, but less than 2 million,
shares of non-displayed liquidity with the parameter that a member must
add 0.015% of total
[[Page 23314]]
Consolidated Volume of non-displayed liquidity.
The Exchange proposes to also reduce the charge for an order with
Midpoint pegging entered by other member from 0.0015 per share executed
to 0.0010 per share executed.
The Exchange proposes to reduce the charge for non-displayed orders
(other than orders with Midpoint pegging) entered by a member that
provides an average daily volume of 5 million or more shares of non-
displayed liquidity from $0.0019 per share executed to $0.0014 per
share executed, but will replace the parameter that the member provides
an average daily volume of 5 million or more shares of non-displayed
liquidity with the parameter that a member must add 0.075% of total
Consolidated Volume of non-displayed liquidity.
The Exchange also proposes to reduce the charge for non-displayed
orders (other than orders with Midpoint pegging) entered by a member
that provides an average daily volume of 3.5 million or more shares
(but less than 5 million shares) of non-displayed liquidity from
$0.0024 per share executed to $0.0019 per share executed, but will
replace the parameter that the member provides an average daily volume
of 3.5 million or more shares (but less than 5 million shares) of non-
displayed liquidity with the parameter that a member must add 0.055% of
total Consolidated Volume of non-displayed liquidity.
BX also proposes to amend how a firm may become a QMM (Tier 1), in
part, by eliminating two of these ways. Also, and as a result, the
parenthetical with ``Tier 1'' following ``A Firm may become a Qualified
Market Maker'' will be eliminated since there will no longer be a Tier
2 as previously stated. The first option eliminated is by being a
member with (i) shares of liquidity provided and (ii) total shares of
liquidity accessed and provided in all securities through one or more
of its System market maker participant identifier (``MPIDs'') that
represent more than 0.40% and 0.50%, respectively, of Consolidated
Volume. For a member qualifying under this method, the member must have
at least one Qualified MPID, that is, an MPID through which, for at
least 150 securities, the QMM quotes at the national best bid or offer
(``NBBO'') an average of at least 25% of the time during regular market
hours (9:30 a.m. through 4:00 p.m.) during the month. The second option
eliminated is by being a member with (i) shares of liquidity provided
and (ii) total shares of liquidity accessed and provided in all
securities through one or more of its System MPIDs that represent more
than 0.30% and 0.45%, respectively, of Consolidated Volume during the
month. For a member qualifying under this method, the member must have
at least one Qualified MPID, that is, an MPID through which, for at
least 400 securities, the QMM quotes at the NBBO an average of at least
25% of the time during regular market hours (9:30 a.m. through 4:00
p.m.) during the month.
The third option remains, but is being amended. Currently, this
option states that a firm may become a QMM (Tier 1) by being a member
with (i) shares of liquidity provided and (ii) total shares of
liquidity accessed and provided in all securities through one or more
of its System MPIDs that represent more than 0.20% and 0.30%,
respectively, of Consolidated Volume during the month. For a member
qualifying under this method, the member must have at least one
Qualified MPID, that is, an MPID through which, for at least 200
securities, the Qualified Market Maker quotes at the NBBO an average of
at least 50% of the time during regular market hours (9:30 a.m. through
4:00 p.m.) during the month. The member must also provide an average
daily volume of 1.5M shares or more using orders with midpoint pegging
during the month. BX proposes to amend the beginning of this
requirement to say that a firm qualifies by being a member that
provides through one or more of its System MPIDs more than 0.30% of
Consolidated Volume during the month (the rest of the requirement
remains unchanged).
BX proposes to eliminate QMM (Tier 2) altogether.
Finally, the Exchange proposes to reduce certain credits for retail
orders in BX Rule 7018(e). Specifically, BX proposes to reduce the
credit from $0.0005 per share executed to $0.0002 per share executed
for a retail order that receives price improvement (when the accepted
price of an order is different than the executed price of an order) and
accesses a non-Retail Price Improvement order with Midpoint pegging.
Also, ``that'' in the parenthetical above has been changed to ``than''
to reflect the correction to a typographical error in the corresponding
rule text. Lastly, the Exchange proposes to reduce the credit from
$0.0017 per share executed to $0.0012 per share executed for a retail
order that accesses other liquidity on the Exchange book.
2. Statutory Basis
BX believes that the proposed rule changes are consistent with the
provisions of Section 6 of the Act,\13\ in general, and with Sections
6(b)(4) and 6(b)(5) of the Act,\14\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which the Exchange operates or controls, and is 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; and are not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change to amend BX Rule
7001(a) to increase the trading rights fee each Exchange member is
assessed from $500 per month to $1,000 per month is reasonable because
the Exchange desires to continue to cover the ongoing costs of
operating the platform for the benefit of its members. BX also believes
that the proposed change is consistent with an equitable allocation of
fees and is not unfairly discriminatory because it affects all members
equally in the same way.
The Exchange believes that the proposed change to eliminate the
waiver of the membership fee and the trading rights fee for BX members
who solely conduct an options business is reasonable because the
Exchange no longer believes it is necessary to waive these fees to
attract market participants to the BX Options Market since this market
is now better established and BX no longer needs to rely on such
waivers to attract market participants. The Exchange believes that the
proposed changes are equitable and not unfairly discriminatory because
the elimination of the membership fee and trading rights fee waivers
will uniformly apply to BX Options Participants that transact business
solely on the BX Options Market.
The Exchange believes that the proposed change to eliminate the ERF
set forth in BX Rule 7003(b) is reasonable because it is no longer
necessary to cover regulatory costs based on historic volume plus not
all members pay this fee. The Exchange believes that the proposed
change is
[[Page 23315]]
equitable and not unfairly discriminatory because the elimination of
the ERF applies uniformly and it affects similarly situated members in
the same way.
The proposed reduction to the credits and charges in the fee
schedule under Exchange Rule 7018 are reflective of BX's ongoing
efforts to use pricing incentive programs to attract order flow to BX
and improve market quality. The goal of these pricing incentives is to
provide meaningful incentives for members to increase their
participation on BX. Specifically, the Exchange believes that the
reduction to the credits from $0.0005 per share executed to $0.0000 per
share executed for both orders that receive price improvement and
execute either against an order with Midpoint pegging or those with
Midpoint pegging that remove liquidity, are reasonable because these
reduced credits are aligned with the reduced charges BX is also putting
in place through this filing. The Exchange also believes that the
proposed changes are equitably allocated and not unfairly
discriminatory because the credit reductions apply uniformly to all
members that previously had qualified to receive such a credit.
The Exchange believes that the reduction to the credit from $0.0015
per share executed to $0.0010 per share executed for orders that
accesses liquidity (excluding orders with Midpoint pegging and
excluding orders that receive price improvement and execute against an
order with Midpoint pegging) entered by a member that accesses
liquidity equal to or exceeding 0.1% of total Consolidated Volume
during a month is reasonable because the reduced credit aligns it more
closely with the reduced charges BX is also putting in place through
this filing. The Exchange also believes that the proposed change is
equitably allocated and not unfairly discriminatory because the credit
reduction applies uniformly to all members that qualify to receive such
a credit.
The Exchange believes that the reduction to the credit from $0.0013
per share executed to $0.0008 per share executed for an order that
accesses liquidity (excluding orders with Midpoint pegging and
excluding orders that receive price improvement and execute against an
order with Midpoint pegging) entered by a member with a daily average
volume of liquidity provided in all securities during the month of 1
million or more shares, and the change to the daily average volume of
liquidity provided in all securities during the month of 1 million or
more shares parameter, to a parameter that the member that [sic] must
add 0.015% of total Consolidated Volume during a month is reasonable
because the reduced credit aligns it more closely with the reduced
charges BX is also putting in place through this filing. Also, the
amended parameter switching to total Consolidated Volume will allow a
member's target activity levels to adjust with overall market volumes
making such targets easier to reach during low share volume months and
more difficult to reach during higher share volume months. However, the
percent of total Consolidated Volume requirement approximately
represents a similar level of volume on average as the previous
parameter did given the current Consolidated Volume requirement.
Additionally, the Exchange further believes that the proposed change is
equitably allocated and not unfairly discriminatory because the credit
applies uniformly to all members that qualify to receive such a credit.
The Exchange believes that the reduction to the credit from $0.0011
per share executed to $0.0006 per share executed for orders that access
liquidity (excluding orders with Midpoint pegging and excluding orders
that receive price improvement and execute against an order with
Midpoint pegging) entered by a member that provides an average daily
volume of at least 25,000, but less than 1 million, shares of liquidity
during the month and the removal of the ``but less than 1 million''
shares cap parameter is reasonable because it reduces confusion as to
when the rate applies since the next tier is tied to the percent of
total Consolidated Volume. The elimination of the 1 million share cap
removes a restriction that allows more members to qualify for this
credit. Additionally, the Exchange further believes that the proposed
change is equitably allocated and not unfairly discriminatory because
the credit applies uniformly to all members that qualify to receive
such a credit.
The Exchange believes that the reduction to the credit from $0.0011
per share executed to $0.0006 per share executed for BSTG, BSCN, BMOP,
BTFY, BCRT, BDRK or BCST orders that access liquidity in the System
(excluding orders with Midpoint pegging and excluding orders that
receive price improvement and execute against an order with Midpoint
pegging) is reasonable because the reduced credit aligns it more
closely with the reduced charges BX is also putting in place through
this filing. Additionally, the Exchange further believes that the
proposed change is equitably allocated and not unfairly discriminatory
because the credit applies uniformly to all members that qualify to
receive such a credit.
BX also believes that the reduction to the charges from $0.0014 per
share executed to $0.0009 per share executed for displayed orders
entered by a QMM (Tier 1) and the elimination of the $0.0017 per share
executed charge for displayed orders entered by a QMM (Tier 2) are
reasonable because the reduced charge and elimination of another charge
align them more closely with the reduced credits BX is also putting in
place through this filing. Also, since the behavior required to qualify
to become a QMM (Tier 2) has not been met by firms recently, and in
light of the lack of interest by firms in meeting these requirements,
the Exchange proposes to eliminate it and the associated rate from the
fee schedule. Additionally, the Exchange further believes that the
proposed changes are equitably allocated and not unfairly
discriminatory because the reduced QMM (Tier 1) charge and eliminated
QMM (Tier 2) charge apply uniformly to all members that display an
order entered by a QMM (Tier 1) or previously displayed and order
entered by a QMM (Tier 2). The parenthetical with ``Tier 1'' following
``Displayed order entered by a Qualified Market Maker'' also will be
eliminated since there will no longer be a Tier 2 and the Exchange
believes that this change clarifies and eliminates the potential for
confusion to the benefit of market participants. The Exchange believes
that this clarification will promote market participants' understanding
of the rule and its administration.
The Exchange believes that the reduction to the charge from
$0.00165 per share executed to $0.0012 per share executed for a
displayed order entered by a member that adds liquidity equal to or
exceeding 0.25% of total Consolidated Volume during a month is
reasonable because the reduced charge is designed to encourage
additional posted liquidity that, in turn, will enable the Exchange to
provide a more liquid marketplace and attract contra order flow.
Additionally, the Exchange further believes that the proposed change is
equitably allocated and not unfairly discriminatory because all members
can add liquidity to BX and the more liquidity a member adds the lower
the charge because the member is improving the quality of the market by
providing this additional liquidity.
BX believes that the reduction to the charge from $0.0018 per share
executed to $0.0014 per share executed coupled with the change to the
parameter that a member provide an average daily
[[Page 23316]]
volume of 2.5 million or more shares of liquidity during the month to a
parameter that the member add liquidity equal to or exceeding 0.04% of
total Consolidated Volume during a month is reasonable because the
reduced charge is designed to encourage additional posted liquidity
that, in turn, will increase the liquidity of the market and attract
contra order flow. Also, the amended parameter switching to total
Consolidated Volume will allow a member's target activity levels to
adjust with overall market volumes making such targets easier to reach
during low share volume months and more difficult to reach during
higher share volume months. However, the percent of total Consolidated
Volume requirement approximately represents a similar level of volume
on average as the previous parameter did given the current Consolidated
Volume requirement. Additionally, the Exchange further believes that
the proposed change is equitably allocated and not unfairly
discriminatory because all members can add liquidity to BX and the more
liquidity a member adds the lower the charge because the member is
improving the quality of the market by providing this additional
liquidity.
The Exchange believes that the reduction to the charge from $0.0005
per share executed to $0.0002 per share executed coupled with a change
to the requirement for an order with Midpoint pegging entered by a
member that provides an average daily volume of 2 million or more
shares of non-displayed liquidity during the month to the requirement
that a member adds 0.03% of total Consolidated Volume of non-displayed
liquidity is reasonable because the reduced charge is designed to
encourage additional posted liquidity that, in turn, will enable the
Exchange to increase liquidity posted at the midpoint and provide
additional price improvement opportunity for contra orders. Also, the
amended parameter switching to total Consolidated Volume will allow a
member's target activity levels to adjust with overall market volumes
making such targets easier to reach during low share volume months and
more difficult to reach during higher share volume months. However, the
percent of total Consolidated Volume requirement approximately
represents a similar level of volume on average as the previous
parameter did given the current Consolidated Volume requirement.
Additionally, the Exchange further believes that the proposed change is
equitably allocated and not unfairly discriminatory because all members
can add liquidity to BX and the more liquidity a member adds the lower
the charge because the member is improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the reduction to the charge from $0.0009
per share executed to $0.0004 per share executed coupled with a change
to the requirement that for an order with Midpoint pegging entered by a
member that provides an average daily volume of 1 million or more, but
less than 2 million, shares of non-displayed liquidity to that a member
adds 0.015% of total Consolidated Volume of non-displayed liquidity is
reasonable because the reduced charge is designed to encourage
additional posted liquidity that, in turn, will increase midpoint
liquidity and increase the chance of incoming orders to receive price
improvement and thereby attract contra order flow. Also, the amended
parameter switching to total Consolidated Volume will allow a member's
target activity levels to adjust with overall market volumes making
such targets easier to reach during low share volume months and more
difficult to reach during higher share volume months. However, the
percent of total Consolidated Volume requirement approximately
represents a similar level of volume on average as the previous
parameter did given the current Consolidated Volume requirement.
Additionally, the Exchange further believes that the proposed change is
equitably allocated and not unfairly discriminatory because all members
can add liquidity to BX and the more liquidity a member adds the lower
the charge because the member is improving the quality of the market by
providing this additional liquidity.
BX also believes that the reduction to the charges from $0.0015 per
share executed to $0.0010 per share executed for an order with Midpoint
pegging entered by other member is reasonable because the reduced
charge is designed to encourage additional posted liquidity that, in
turn, will increase midpoint liquidity and increase the chance of
incoming orders to receive price improvement and thereby attract contra
order flow. Additionally, the Exchange further believes that the
proposed change is equitably allocated and not unfairly discriminatory
because all members can add liquidity to BX and the more liquidity a
member adds the lower the charge because the member is improving the
quality of the market by providing this additional liquidity.
The Exchange believes that the reduction to the charges from
$0.0019 per share executed to $0.0014 per share executed for a non-
displayed order (other than orders with Midpoint pegging) entered by a
member that provides an average daily volume of 5 million or more
shares of non-displayed liquidity coupled with a change to the
requirement that the member provides an average daily volume of 5
million or more shares of non-displayed liquidity to a requirement that
a member adds 0.075% of total Consolidated Volume of non-displayed
liquidity is reasonable because the reduced charge is designed to
encourage additional posted liquidity that, in turn, will enable the
Exchange to collect additional fees to provide rebates and thereby
attract contra order flow. Also, the amended parameter switching to
total Consolidated Volume will allow a member's target activity levels
to adjust with overall market volumes making such targets easier to
reach during low share volume months and more difficult to reach during
higher share volume months. However, the percent of total Consolidated
Volume requirement approximately represents a similar level of volume
on average as the previous parameter did given the current Consolidated
Volume requirement. Additionally, the Exchange further believes that
the proposed change is equitably allocated and not unfairly
discriminatory because all members can add liquidity to BX and the more
liquidity a member adds the lower the charge because the member is
improving the quality of the market by providing this additional
liquidity.
The Exchange also believes that the reduction to the charges from
$0.0024 per share executed to $0.0019 per share executed for non-
displayed orders (other than orders with Midpoint pegging) entered by a
member that provides an average daily volume of 3.5 million or more
shares (but less than 5 million shares) of non-displayed liquidity
coupled with a change to the requirement that the member adds 0.055% of
total Consolidated Volume of non-displayed liquidity is reasonable
because the reduced charge is designed to encourage additional posted
liquidity that, in turn, will enable the Exchange to collect additional
fees to provide rebates and thereby attract contra order flow. Also,
the amended parameter switching to total Consolidated Volume will allow
a member's target activity levels to adjust with overall market volumes
making such targets easier to reach during low share volume months and
more difficult to reach during higher share volume months. However, the
percent of total Consolidated Volume requirement approximately
represents a similar level of volume on average as the previous
parameter did
[[Page 23317]]
given the current Consolidated Volume requirement. Additionally, the
Exchange further believes that the proposed change is equitably
allocated and not unfairly discriminatory because all members can add
liquidity to BX and the more liquidity a member adds the lower the
charge because the member is improving the quality of the market by
providing this additional liquidity.
The Exchange believes that the proposed change as to how a firm may
become a QMM (Tier 1) by eliminating two of the ways to qualify as
such, amending the third option to qualify as a QMM (Tier 1), and
eliminating the QMM (Tier 2), are reasonable because the amending of
the QMM program refines the incentive to BX member firms to enhance the
quality of the market by providing meaningful improvement, to the
benefit of all market participants. The Exchange also believes that the
proposed amended criteria of the qualification standard to become a QMM
(Tier 1) and the elimination of the QMM (Tier 2) qualification standard
are reasonable and an equitable allocation because the proposed changes
help to clearly define how a firm can become a QMM and eliminates
requirements that firms were not reaching. Additionally, the Exchange
believes that the proposed change further perfects the mechanism of a
free and open market by refining and making more effective the means by
which a member firm may qualify for this beneficial, market improving
program. Accordingly, to the extent that the amended standard increases
the number of member firms that qualify under the tier, market quality
will increase. Also, the parenthetical with ``Tier 1'' following ``A
Firm may become a Qualified Market Maker'' also will be eliminated
since there will no longer be a Tier 2 and the Exchange believes that
this change clarifies and eliminates the potential for confusion to the
benefit of market participants. The Exchange believes that this
clarification will promote market participants' understanding of the
rule and its administration.
The Exchange also believes that the reduction to the credit from
$0.0005 per share executed to $0.0002 per share executed for a retail
order that receives price improvement (when the accepted price of an
order is different than the executed price of an order) \15\ and
accesses non-Retail Price Improvement order with Midpoint pegging, as
well as the reduction to the credit from $0.0017 per share executed to
$0.0012 per share executed for a retail order that accesses other
liquidity on the Exchange book, are reasonable because these reduced
credits align them with the reduced charges collected from non-retail
price improvement orders BX is also putting in place through this
filing. The Exchange also believes that the proposed changes are
equitably allocated and not unfairly discriminatory because the credit
reductions apply uniformly to all members that previously had qualified
to receive such a credit. Lastly, the Exchange believes that the
correction of the non-substantive typographical error in Rule 7018(e)
(changing ``that'' to ``than'') clarifies and eliminates the potential
for confusion to the benefit of market participants. The Exchange
believes that this clarification will promote market participants'
understanding of the rule and its administration.
---------------------------------------------------------------------------
\15\ As noted previously, the word ``that'' in the parenthetical
has been changed to ``than'' to reflect the correction to a
typographical error in the corresponding rule text.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.\16\
BX notes that it operates in a highly competitive market in which
market participants can readily favor dozens of different competing
exchanges and alternative trading systems if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, BX must
continually adjust its fees to remain competitive with other exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, BX believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
In this instance, the changes to fees and credits, as well as
changes to membership and trading rights fees and the ERF, do not
impose a burden on competition because the Exchange membership is
optional and is the subject of competition from other exchanges. The
reduced credits and charges are reflective of the intent to increase
the order flow on the Exchange. For these reasons, the Exchange does
not believe that any of the proposed changes will impair the ability of
members or competing order execution venues to maintain their
competitive standing in the financial markets. Moreover, because there
are numerous competitive alternatives to the use of the Exchange, it is
likely that BX will lose market share as a result of the changes if
they are unattractive to market participants.
Accordingly, BX does not believe that the proposed rule changes
will impair the ability of members or competing order execution venues
to maintain their competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing change has become effective pursuant to Section
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 \18\
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.
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2015-022 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-BX-2015-022. 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
[[Page 23318]]
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-BX-2015-022, and should be
submitted on or before May 18, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-09628 Filed 4-24-15; 8:45 am]
BILLING CODE 8011-01-P
