Self-Regulatory Organization; BATS Y-Exchange, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange's Retail Price Improvement Program, 4324-4325 [2015-01425]

Download as PDF 4324 Federal Register / Vol. 80, No. 17 / Tuesday, January 27, 2015 / Notices J. Method and Frequency of Processor Evaluation Not applicable. K. Dispute Resolution Section III(C) of the Plan provides for each Participant to designate an individual to represent the Participant as a member of an Operating Committee. No later than the initial date of the Plan, the Operating Committee shall designate one member of the Operating Committee to act as the Chair of the Operating Committee. Any recommendation for an amendment to the Plan from the Operating Committee that receives an affirmative vote of at least two-thirds of the Participants, but is less than unanimous, shall be submitted to the Commission as a request for an amendment to the Plan initiated by the Commission under Rule 608. On September 18, 2014, the Operating Committee, duly constituted and chaired by Mr. Christopher B. Stone of FINRA, met and voted to amend the Plan as set forth herein in accordance with Section III(C) of the Plan. with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the Participants’ principal offices. 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 4–631 and should be submitted on or before February 17, 2015. By the Commission. Brent J. Fields, Secretary. [FR Doc. 2015–01384 Filed 1–26–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed Eighth Amendment is consistent with the Act. Comments may be submitted by any of the following methods: Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, January 29, 2015 at 2:00 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting. Commissioner Piwowar, as duty officer, voted to consider the items listed for the Closed Meeting in closed session. The subject matter of the Closed Meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Consideration of amicus participation; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. • 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 4– 631 on the subject line. asabaliauskas on DSK5VPTVN1PROD with NOTICES 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 4–631. 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 Plan that are filed with the Commission, and all written communications relating to the Plan between the Commission and any person, other than those that may be withheld from the public in accordance VerDate Sep<11>2014 18:01 Jan 26, 2015 Jkt 235001 Dated: January 22, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–01519 Filed 1–23–15; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74115; File No. SR–BYX– 2012–019] Self-Regulatory Organization; BATS YExchange, Inc.; Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange’s Retail Price Improvement Program January 22, 2015. III. Solicitation of Comments Electronic Comments For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 On November 27, 2012, the Securities and Exchange Commission (‘‘Commission’’) issued an order pursuant to its authority under Rule 612(c) of Regulation NMS (‘‘Sub-Penny Rule) 1 that granted the BATS YExchange, Inc. (‘‘BYX’’ or the ‘‘Exchange’’) a limited exemption from the Sub-Penny Rule in connection with the operation of the Exchange’s Retail Price Improvement (‘‘RPI’’) Program (the ‘‘Program’’). The limited exemption was granted concurrently with the Commission’s approval of the Exchange’s proposal to adopt the Program for a one-year pilot term.2 The exemption was granted coterminous with the effectiveness of the pilot Program and has been extended once; 3 both the pilot Program and exemption are scheduled to expire on January 31, 2015. The Exchange now seeks to extend the exemption until January 31, 2016.4 The Exchange’s request was made in conjunction with an immediately effective filing that extends the operation of the Program until January 1 17 CFR 242.612(c). Securities Exchange Act Release No. 68303 (November 27, 2012), 77 FR 71652 (December 3, 2012) (‘‘RPI Approval Order’’) (SR–BYX–2012–019). 3 See Securities Exchange Act Release No. 71249 (January 7, 2014), 79 FR 2229 (January 13, 2012) (SR–BYX–2014–001) (extending the pilot period); Securities Exchange Act Release No. 71250 (January 7, 2014), 79 FR 2234 (January 13, 2012) (Order Granting an Extension to Limited Exemption From Rule 612(c) of Regulation NMS in Connection With the Exchange’s Retail Price Improvement Program). 4 See letter from Eric Swanson, Senior Vice President and General Counsel, BYX, to Elizabeth M. Murphy, Secretary, Commission, dated January 16, 2015. 2 See E:\FR\FM\27JAN1.SGM 27JAN1 Federal Register / Vol. 80, No. 17 / Tuesday, January 27, 2015 / Notices 31, 2016.5 In its request to extend the exemption, the Exchange notes that the Program was implemented gradually over time. Accordingly, the Exchange has asked for additional time to allow itself and the Commission to analyze data concerning the Program, which the Exchange committed to provide to the Commission.6 For this reason and the reasons stated in the Order originally granting the limited exemption, the Commission finds that extending the exemption, pursuant to its authority under Rule 612(c) of Regulation NMS, is appropriate in the public interest and consistent with the protection of investors. Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of Regulation NMS, the Exchange is granted a limited exemption from Rule 612(c) of Regulation NMS that allows it to accept and rank orders priced equal to or greater than $1.00 per share in increments of $0.001, in connection with the operation of its RPI Program, until January 31, 2016. The limited and temporary exemption extended by this Order is subject to modification or revocation if at any time the Commission determines that such action is necessary or appropriate in furtherance of the purposes of the Securities Exchange Act of 1934. Responsibility for compliance with any applicable provisions of the federal securities laws must rest with the persons relying on the exemption that is the subject of this Order. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Brent J. Fields, Secretary. [FR Doc. 2015–01425 Filed 1–26–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION asabaliauskas on DSK5VPTVN1PROD with NOTICES [Release No. 34–74107; File No. SR–BX– 2015–005] Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of a Proposed Rule Changes To Amend Rule 7018 To Amend Fees and Rebates in Connection With BX’s Retail Price Improvement Program January 21, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 5 See SR–BYX–2015–05. RPI Approval Order, supra note 2, at 77 FR at 71657. 7 17 CFR 200.30–3(a)(83). 6 See VerDate Sep<11>2014 18:01 Jan 26, 2015 Jkt 235001 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on January 12, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ or the ‘‘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 is proposing changes to amend BX Rule 7018 to amend fees and rebates in connection with BX’s Retail Price Improvement Program. The text of the proposed rule change is available on the Exchange’s Web site at https://nasdaqomxbx.cchwall street.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. 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposal is to amend BX Rule 7018 to amend fees and rebates for execution of orders under BX’s Retail Price Improvement (‘‘RPI’’) program. BX recently adopted the RPI program,3 which provides incentives to member firms (or a division thereof) approved by the Exchange to participate in the program (a ‘‘Retail Member Organization’’ or ‘‘RMO’’) to submit designated ‘‘Retail Orders’’ 4 for the 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Securities Exchange Act Release No. 73410 (October 23, 2014), 79 FR 64447 (October 29, 2014) (SR–BX–2014–048) (proposing RPI program and exemption from SEC Rule 612 under Regulation NMS, 17 CFR 242.612, in connection therewith); see also Securities Exchange Act Release No. 73836 (December 15, 2014), 79 FR 75852 (December 19, 2014) (SR–BX–2014–059). 4 A Retail Order is defined in BX Rule 4780(a)(2), in part, as ‘‘an agency or riskless principal order 2 17 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 4325 purpose of seeking price improvement. All BX members may enter retail price improvement orders (‘‘RPI Orders’’),5 a form of non-displayed orders that are priced more aggressively than the Protected National Best Bid or Offer (‘‘NBBO’’) by at least $0.001 per share, for the purpose of offering such price improvement. RMOs may use two types of Retail Orders. A Type 1 Retail Order is eligible to execute only against RPI Orders and other orders (such as midpoint pegged orders) that will provide price improvement. Type 2 Retail Orders interact first with available RPI Orders and other price improving orders, and then are eligible to access non-price improving liquidity on the BX book and to route to other trading venues if so designated. BX currently offers a rebate of $0.0025 per share executed to RMOs with respect to Retail Orders that execute against RPI Orders. RMO Retail Orders that execute against other orders providing price improvement with respect to the NBBO will receive a rebate otherwise applicable to executions of orders that access liquidity. For Type 2 Retail Orders that execute against non-price improving orders on the BX book, BX offers a rebate otherwise applicable to execution of orders that access liquidity. Similarly, when Type 2 Retail Orders are routed and execute at another trading venue, BX charges the fee otherwise applicable to execution of routed orders. For RPI Orders that provide liquidity, BX charges a fee of $0.0025 per share executed. Other orders that provide liquidity to Retail Orders will receive the credit or pay the fee otherwise applicable to orders that provide liquidity. BX is proposing to provide greater incentives to RMOs to participate in the program by providing two new tiers of credits provided under the program. Specifically, BX proposes to provide RMOs a credit of $0.0005 per share executed for a Retail Order that accesses non-Retail Price Improvement midpoint liquidity. This is the same credit all orders that execute against midpoint pegged orders currently receive under that satisfies the criteria of FINRA Rule 5320.03, that originates from a natural person and is submitted to the Exchange by a Retail Member Organization, provided that no change is made to the terms of the order with respect to price (except in the case that a market order is changed to a marketable limit order) or side of market and the order does not originate from a trading algorithm or any other computerized methodology.’’ 5 A Retail Price Improvement Order is defined in BX Rule 4780(a)(3), in part, as consisting of ‘‘nondisplayed liquidity on the Exchange that is priced better than the Protected NBBO by at least $0.001 and that is identified as such.’’ E:\FR\FM\27JAN1.SGM 27JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 80, Number 17 (Tuesday, January 27, 2015)]
[Notices]
[Pages 4324-4325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01425]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74115; File No. SR-BYX-2012-019]


Self-Regulatory Organization; BATS Y-Exchange, Inc.; Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Price 
Improvement Program

January 22, 2015.
    On November 27, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule) \1\ that granted the BATS 
Y-Exchange, Inc. (``BYX'' or the ``Exchange'') a limited exemption from 
the Sub-Penny Rule in connection with the operation of the Exchange's 
Retail Price Improvement (``RPI'') Program (the ``Program''). The 
limited exemption was granted concurrently with the Commission's 
approval of the Exchange's proposal to adopt the Program for a one-year 
pilot term.\2\ The exemption was granted coterminous with the 
effectiveness of the pilot Program and has been extended once; \3\ both 
the pilot Program and exemption are scheduled to expire on January 31, 
2015.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BYX-2012-019).
    \3\ See Securities Exchange Act Release No. 71249 (January 7, 
2014), 79 FR 2229 (January 13, 2012) (SR-BYX-2014-001) (extending 
the pilot period); Securities Exchange Act Release No. 71250 
(January 7, 2014), 79 FR 2234 (January 13, 2012) (Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program).
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    The Exchange now seeks to extend the exemption until January 31, 
2016.\4\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
until January

[[Page 4325]]

31, 2016.\5\ In its request to extend the exemption, the Exchange notes 
that the Program was implemented gradually over time. Accordingly, the 
Exchange has asked for additional time to allow itself and the 
Commission to analyze data concerning the Program, which the Exchange 
committed to provide to the Commission.\6\ For this reason and the 
reasons stated in the Order originally granting the limited exemption, 
the Commission finds that extending the exemption, pursuant to its 
authority under Rule 612(c) of Regulation NMS, is appropriate in the 
public interest and consistent with the protection of investors.
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    \4\ See letter from Eric Swanson, Senior Vice President and 
General Counsel, BYX, to Elizabeth M. Murphy, Secretary, Commission, 
dated January 16, 2015.
    \5\ See SR-BYX-2015-05.
    \6\ See RPI Approval Order, supra note 2, at 77 FR at 71657.
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    Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612(c) of Regulation NMS that allows it to accept and rank orders 
priced equal to or greater than $1.00 per share in increments of 
$0.001, in connection with the operation of its RPI Program, until 
January 31, 2016.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the federal securities 
laws must rest with the persons relying on the exemption that is the 
subject of this Order.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).

Brent J. Fields,
Secretary.
[FR Doc. 2015-01425 Filed 1-26-15; 8:45 am]
BILLING CODE 8011-01-P

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