Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc., 23060-23064 [2015-09498]
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Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices
Extension:
Rules 17h–1T and 17h–2T; SEC File No.
270–359, OMB Control No. 3235–0410.
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 20, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–09496 Filed 4–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of First American
Scientific Corp., Order of Suspension
of Trading
April 22, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of First
American Scientific Corp. (CIK No.
1002822), a Nevada corporation with its
principal place of business listed as
Abbotsford, British Columbia, Canada,
with stock quoted on OTC Link
(previously, ‘‘Pink Sheets’’) operated by
OTC Markets Group, Inc. (‘‘OTC Link’’)
under the ticker symbol FASC, because
it has not filed any periodic reports
since the period ended March 31, 2012.
On May 2, 2014, First American
Scientific Corp. received a delinquency
letter sent by the Division of
Corporation Finance requesting
compliance with their periodic filing
obligations.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT on April 22, 2015, through 11:59
p.m. EDT on May 5, 2015.
By the Commission.
Jill M. Peterson,
Secretary.
[FR Doc. 2015–09685 Filed 4–22–15; 4:15 pm]
BILLING CODE 8011–01–P
tkelley on DSK3SPTVN1PROD with NOTICES
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
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Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 17h–1T and 17h–
2T (17 CFR 240.17h–1T and 17 CFR
240.17h–2T), under the Securities
Exchange Act of 1934 (17 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 17h–1T requires a covered
broker-dealer to maintain and preserve
records and other information
concerning certain entities that are
associated with the broker-dealer. This
requirement extends to the financial and
securities activities of the holding
company, affiliates and subsidiaries of
the broker-dealer that are reasonably
likely to have a material impact on the
financial or operational condition of the
broker-dealer. Rule 17h–2T requires a
covered broker-dealer to file with the
Commission quarterly reports and a
cumulative year-end report concerning
the information required to be
maintained and preserved under Rule
17h–1T.
The collection of information required
by Rules 17h–1T and 17h–2T,
collectively referred to as the ‘‘risk
assessment rules’’, is necessary to
enable the Commission to monitor the
activities of a broker-dealer affiliate
whose business activities are reasonably
likely to have a material impact on the
financial and operational condition of
the broker-dealer. Without this
information, the Commission would be
unable to assess the potentially
damaging impact of the affiliate’s
activities on the broker-dealer.
There are currently 306 respondents
that must comply with Rules 17h–1T
and 17h–2T. Each of these 306
respondents are estimated to require 10
hours per year to maintain the records
required under Rule 17h–1T, for an
aggregate estimated annual burden of
3,060 hours (306 respondents × 10
hours). In addition, each of these 306
respondents must make five annual
responses under Rule 17h–2T. These
five responses are estimated to require
14 hours per respondent per year for an
aggregate estimated annual burden of
4,284 hours (306 respondents × 14
hours).
In addition, new respondents must
draft an organizational chart required
under Rule 17h–1T and establish a
system for complying with the risk
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assessment rules. The staff estimates
that drafting the required organizational
chart requires one hour and establishing
a system for complying with the risk
assessment rules requires three hours.
Based on the unchanged number of
filers in recent years, the staff estimates
there will be zero new respondents, and
thus, a corresponding estimated burden
of zero hours for new respondents.
Thus, the total compliance burden per
year is approximately 7,344 burden
hours (3,060 hours + 4,284 hours).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: April 20, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015–09495 Filed 4–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74767; File No. SR–BATS–
2015–33]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees for Use
of BATS Exchange, Inc.
April 20, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices
notice is hereby given that on April 16,
2015, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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
Exchange has designated the proposed
rule change as one establishing or
changing a member due, fee, or other
charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to BATS Rules
15.1(a) and (c). Changes to the fee
schedule pursuant to this proposal are
effective upon filing.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to modify its
fee schedule in order to: (1) Adopt a
3 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
4 17
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Cross-Asset Tape B Tier; and (2) amend
the fees charged for and description of
the logical ports 6 offered by the
Exchange.
Cross-Asset Tape B Tier
Currently, the Exchange offers a
rebate of $0.0020 per share as the
standard rebate for orders with fee code
B, which applies to orders that add
liquidity to the Exchange in Tape B
securities. The Exchange also offers
various tiers that provide Members with
the opportunity to earn higher rebates
by meeting certain volume metrics. The
Exchange is proposing to adopt a new
tier in footnote 12 titled ‘‘Cross-Asset
Tape B Tier.’’ Under the Cross-Asset
Tape B Tier, the Exchange is proposing
to provide a $0.0031 per share rebate to
a Member’s orders with a fee code of B
for which the Member: (1) Has a Tape
B Step-Up Add TCV 7 from February
2015 that is equal to or greater than
0.06%; and (2) has an Options Market
Maker Add TCV 8 that is equal to or
greater than 0.75% on the Exchange’s
options platform (‘‘BATS Options’’). As
such, where a Member increases their
ADAV 9 in Tape B securities as a
percentage of TCV by at least .06% as
compared to February 2015 and has at
least 0.75% ADAV 10 of Market Maker 11
orders as a percentage of TCV 12 on
BATS Options, the Member will be
eligible to receive the $0.0031 per share
rebate associated with the Cross-Asset
6 A logical port is commonly referred to as a TCP/
IP port, and represents a port established by the
Exchange within the Exchange’s system for trading
and billing purposes. Each logical port established
is specific to a Member or non-member and grants
that Member or non-member the ability to operate
a specific application, such as FIX order entry or
Multicast PITCH data receipt.
7 The Exchange is proposing that ‘‘Tape B StepUp Add TCV’’ means ADAV in Tape B securities
as a percentage of TCV in the relevant baseline
month subtracted from current ADAV in Tape B
securities as a percentage of TCV.
8 The Exchange is proposing that ‘‘Options
Market Maker Add TCV’’ for purposes of equities
pricing means ADAV resulting from Market Maker
orders as a percentage of TCV, using the definitions
of ADAV, Market Maker and TCV as provided
under the Exchange’s fee schedule for BATS
Options.
9 ‘‘ADAV’’ means average daily volume calculated
as the number of shares added per day.
10 As defined in the BATS Options fee schedule,
‘‘ADAV’’ means average daily added volume
calculated as the number of contracts added per
day.
11 As defined in the BATS Options fee schedule,
‘‘Market Maker’’ applies to any transaction
identified by a Member for clearing in the Market
Maker range at the OCC.
12 ‘‘TCV’’ means total consolidated volume
calculated as the volume reported by all exchanges
to the consolidated transaction reporting plan for
the month for which the fees apply, excluding
volume on any day that the Exchange experiences
an Exchange System Disruption and on any day
with a scheduled early market close.
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Tape B Tier. As is the case with any
other rebates on the fee schedule, to the
extent that a Member qualifies for
higher rebates than those provided
under the proposed Cross-Asset Tape B
Tier, the higher rebates shall apply.
Logical Port Fees
Currently, the Exchange maintains
logical ports for order entry, drop copies
and the receipt of market data for which
it currently charges $400 per month per
port with the exception of Multicast
PITCH Spin Server Ports and GRP
Ports.13 Multicast PITCH Spin Server
Ports and GRP Ports are used to request
and receive a retransmission of data
from the Exchange’s Multicast PITCH
data feed. The Exchange does charge
$400 per month for such ports, however,
the Exchange separately delineates such
fees because of various details related to
the use of such ports. Specifically,
Multicast PITCH Spin Server Ports are
offered as a complete set, including one
logical port for each channel of the
Exchange’s Multicast PITCH data feed,
and can be taken for either of the
Exchange’s primary Multicast PITCH
data feeds.14 Similarly, Multicast PITCH
GRP Ports can be taken for either of the
Exchange’s primary Multicast PITCH
data feeds. The Exchange offers
Multicast PITCH Spin Server Ports for a
fee of $400 per month for a set of
primary ports (A or C feed) and
Multicast PITCH GRP Ports for a fee of
$400 per month per primary port (A or
C feed). The Exchange offers and will
continue to offer for free the ports
necessary to receive the Exchange’s
redundant Multicast ‘‘B feed’’ and ‘‘D
feed’’, as well as all ports made
available in the Exchange’s secondary
data center.
In early 2014, the Exchange and its
affiliate, BATS Y-Exchange, Inc.
(‘‘BYX’’), received approval to effect a
merger (the ‘‘Merger’’) of the Exchange’s
parent company, BATS Global Markets,
Inc., with Direct Edge Holdings LLC, the
indirect parent of EDGX and EDGA
(together with the Exchange, BYX and
EDGX, the ‘‘BGM Affiliated
13 FIX and BOE ports are the only ports that may
be used to send orders and related instructions to
the Exchange. All other port types, including the
Multicast PITCH Spin Server Port and GRP Port,
permit Members and non-members to receive
information from the Exchange.
14 The Exchange’s primary Multicast PITCH data
feeds are identified as the ‘‘A feed’’ and the ‘‘C
feed’’ and contain the same information. The A feed
and the C feed differ only in the way such feeds
are received. The Exchange also offers two
redundant feeds, identified as the ‘‘B feed’’ and the
‘‘D feed’’.
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Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices
Exchanges’’).15 In the context of the
Merger, the BGM Affiliated Exchanges
are working to align certain system and
regulatory functionality, retaining only
intended differences between the BGM
Affiliated Exchanges. This includes
migrating the BGM Affiliated
Exchanges, which are currently located
in different data centers, into a single
data center. As part of the data center
migration and the integration of the
BGM Affiliated Exchanges, the
Exchange is proposing to increase the
fees charged from $400 per month to
$500 per month for all categories of
logical ports, including sets of Multicast
PITCH Spin Server Ports for the A feed
and the C feed, individual GRP Ports for
the A feed and the C feed, and all other
logical ports. The Exchange notes that
EDGA and EDGX currently charge $500
per month for most logical ports.16 The
Exchange communicated to Members
and non-Members regarding these
changes via a trading notice issued on
October 7, 2014.17
In addition to increasing the port fees
charged by the Exchange, the Exchange
proposes to add the words ‘‘Multicast
PITCH’’ before GRP Ports to mirror the
description of fees for Multicast PITCH
Spin Server Ports. As noted above, the
separate fees for Spin Server Ports and
GRP Ports both relate to the Exchange’s
Multicast PITCH data feed.
Implementation Date
The Exchange proposes to implement
the amendments to its fee schedule
effective immediately.
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2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,18
in general, and furthers the objectives of
Section 6(b)(4),19 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities. The
Exchange also notes that it operates in
15 See Securities Exchange Act Release No. 71375
(January 23, 2014), 79 FR 4771 (January 29, 2014)
(SR–BATS–2013–059; SR–BYX–2013–039).
16 The Exchange notes that BYX intends to file a
proposal very similar to this proposal that will align
its logical port fees across each of the BGM
Affiliated Exchanges. The Exchange also notes that
EDGA and EDGX also intend to file a proposal to
charge $500 per month for all types of logical ports
as well as to change the descriptions used for
logical port fees to mirror the descriptions used by
the Exchange and BYX.
17 See BATS Global Markets Access Fee Changes
for 2015, available at https://cdn.batstrading.com/
resources/fee_schedule/2015/BATS-GlobalMarkets-Access-Services-Fee-Changes-for-2015.pdf
(issued October 7, 2014).
18 15 U.S.C. 78f.
19 15 U.S.C. 78f(b)(4).
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a highly-competitive market in which
market participants can readily direct
order flow to competing venues if they
deem fee levels at a particular venue to
be excessive. The Exchange believes
that the proposed rates are equitable and
non-discriminatory in that they apply
uniformly to all Members.
Cross-Asset Tape B Tier
Volume-based rebates and fees such
as the ones currently maintained on
BATS Options have been widely
adopted by equities and options
exchanges and are equitable because
they are open to all Members on an
equal basis and provide additional
benefits or discounts that are reasonably
related to the value to an exchange’s
market quality associated with higher
levels of market activity, such as higher
levels of liquidity provision and/or
growth patterns, and introduction of
higher volumes of orders into the price
and volume discovery processes. The
Exchange believes that the proposal to
add a Cross-Asset Tape B Tier is a
reasonable, fair and equitable, and not
unfairly discriminatory allocation of
fees and rebates because it will provide
Members with an additional incentive
to reach certain thresholds on both the
Exchange in Tape B securities and
BATS Options. The increased liquidity
from this proposal also benefits all
investors by deepening the Exchange
and BATS Options liquidity pools,
offering additional flexibility for all
investors to enjoy cost savings,
supporting the quality of price
discovery, promoting market
transparency and improving investor
protection. Such pricing programs
thereby reward a Member’s growth
pattern in Tape B securities and such
increased volume increases potential
revenue to the Exchange, and will allow
the Exchange to continue to provide and
potentially expand the incentive
programs operated by the Exchange. To
the extent a Member participates on the
Exchange but not on BATS Options, the
Exchange does believe that the proposal
is still reasonable, equitably allocated
and non-discriminatory with respect to
such Member based on the overall
benefit to the Exchange resulting from
the success of BATS Options. As noted
above, such success allows the
Exchange to continue to provide and
potentially expand its existing incentive
programs to the benefit of all
participants on the Exchange, whether
they participate on BATS Options or
not. The proposed pricing program is
also fair and equitable in that
membership in BATS Options is
available to all members which would
provide them with access to the benefits
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on BATS Options provided by the
proposed changes, as described above,
even where a member of BATS Options
is not necessarily eligible for the
proposed increased rebates on the
Exchange. Further, the proposed
changes will result in Members
receiving either the same or an
increased rebate than they would
currently receive. The Exchange also
notes that the proposed cross-asset step
up tiers are similar to pricing tiers
already employed by the Exchange as
well as on other exchanges, including
EDGX Exchange, Inc. (‘‘EDGX’’), which
maintains a Tape B Step Up tier to
incentivize added liquidity in Tape B
securities.20
Logical Port Fees
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(4) of the Act,21 in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and other persons
using any facility or system which the
Exchange operates or controls. The
Exchange notes that its proposed
changes, combined with the planned
filings for EDGA, EDGX and BZX [sic],22
would allow the BGM Affiliated
Exchanges to provide consistent logical
port offerings across each of the BGM
Affiliated Exchanges. Consistent
offerings, in turn, will simplify the
connectivity requirements for Members
of the Exchange that are also
participants on EDGA, BZX [sic] and/or
BYX. The proposed rule change would
result in greater uniformity and less
burdensome and more efficient
understanding of Exchange connectivity
requirements.
The Exchange believes that the
increase of fees for logical ports
represents an equitable allocation of
reasonable dues, fees and other charges.
The Exchange operates in a highly
competitive market in which exchanges
offer connectivity services as a means to
facilitate the trading activities of
members and other participants.
Accordingly, fees charged for
connectivity are constrained by the
active competition for the order flow of
such participants as well as demand for
market data from the Exchange. If a
particular exchange charges excessive
fees for connectivity, affected members
will opt to terminate their connectivity
arrangements with that exchange, and
adopt a possible range of alternative
strategies, including routing to the
applicable exchange through another
20 See
EDGX fee schedule, footnote 2.
U.S.C. 78f(b)(4).
22 See supra note 16.
21 15
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participant or market center or taking
that exchange’s data indirectly.
Accordingly, the exchange charging
excessive fees would stand to lose not
only connectivity revenues but also
revenues associated with the execution
of orders routed to it by affected
members, and, to the extent applicable,
market data revenues. The Exchange
believes that this competitive dynamic
imposes powerful restraints on the
ability of any exchange to charge
unreasonable fees for connectivity.
Lastly, the Exchange believe [sic] its
proposed fees are reasonable because
the Nasdaq Stock Market LLC
(‘‘Nasdaq’’) and the NYSE Arca, Inc.
(‘‘NYSE Arca’’) charge comparable rates
for logical ports to access such
markets.23 As noted above, EDGA and
EDGX also charge the same rate for
access to most logical ports.
The Exchange believes that its
proposed changes to logical port fees are
reasonable in light of the benefits to
Exchange participants of direct market
access and receipt of data. In addition,
the Exchange believes that its fees are
equitably allocated among Exchange
constituents based upon the number of
access ports that they require to access
and receive data from the Exchange. The
Exchange also believes that its fees for
access services will enable it to better
cover its infrastructure costs and to
improve its market technology and
services.
Lastly, the Exchange also believes that
the proposed amendments to its fee
schedule are non-discriminatory
because they will apply uniformly to all
Members. All Members that voluntarily
select various service options will be
charged the same amount for the same
services. All Members have the option
to select any connectivity option, and
there is no differentiation among
Members with regard to the fees charged
for the services offered by the Exchange.
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe its
proposed amendments to its fee
schedule would impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
23 See Nasdaq Rule 7015 (providing no FIX or
non-Trading FIX ports free of charge) and the NYSE
Arca fee schedule available at https://
www.nyse.com/publicdocs/nyse/markets/nyse-arca/
NYSE_Arca_Marketplace_Fees.pdf (dated February
26, 2015). The Exchange recognizes that some
participants may be charged the lower rate of $200
per month to the extent such participants maintain
a low number of ports with NYSE Arca. The
Exchange nonetheless believes that its proposed
fees are comparable despite the fact that it does not
propose a lower fee for such participants.
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Cross-Asset Tape B Tier
The Exchange does not believe that its
proposal to add a new cross-asset stepup tier would burden competition, but
instead, enhance competition, as it is
intended to increase the
competitiveness of and draw additional
volume to both the Exchange and BATS
Options. As stated above, the Exchange
notes that it operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee structures to be unreasonable or
excessive. The proposed changes are
generally intended to enhance the
rebates for liquidity added to the
Exchange, which is intended to draw
additional liquidity to the Exchange. As
such, the proposal is a competitive
proposal that is intended to add
additional liquidity to the Exchange,
which will, in turn, benefit the
Exchange and all Exchange participants.
Logical Port Fees
The Exchange does not believe that
the proposed change to logical port fees
represents a significant departure from
previous pricing offered by the
Exchange or pricing offered by the
Exchange’s competitors. Additionally,
Members may opt to disfavor the
Exchange’s pricing if they believe that
alternatives offer them better value.
Accordingly, the Exchange does not
believe that the proposed change will
impair the ability of Members or
competing 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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 24 and paragraph (f) of Rule
19b–4 thereunder.25 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
24 15
25 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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23063
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–
BATS–2015–33 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BATS–2015–33. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BATS–
2015–33, and should be submitted on or
before May 15, 2015.
E:\FR\FM\24APN1.SGM
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23064
Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Brent J. Fields,
Secretary.
[FR Doc. 2015–09498 Filed 4–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IA–4066; File No. 803–00226]
D–W Investments LLC; Notice of
Application
April 20, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of Application for
Exemption under the Investment
Advisers Act of 1940 (‘‘Advisers Act’’).
tkelley on DSK3SPTVN1PROD with NOTICES
AGENCY:
700 Thirteenth Street NW., Washington,
DC 20005.
FOR FURTHER INFORMATION CONTACT:
Rachel Loko, Senior Counsel, at (202)
551–6883, or Holly L. Hunter-Ceci,
Branch Chief, at (202) 551–6825
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site either at https://www.sec.gov/
rules/iareleases.shtml or by searching
for the file number, or for an applicant
using the Company name box, at
https://www.sec.gov/search/search.htm,
or by calling (202) 551–8090.
Applicant’s Representations
1. The Applicant is a multigenerational single-family office that
provides services to the family and
Applicant: D–W Investments LLC (the descendants of Myron A.Wick, Jr. The
‘‘Applicant’’).
Applicant is a Delaware limited liability
Relevant Advisers Act Sections:
company that is wholly-owned, other
Exemption requested under section
than the exception discussed in
202(a)(11)(H) of the Advisers Act from
representation 5 below, by Family
section 202(a)(11) of the Advisers Act.
Clients and is exclusively controlled
SUMMARY: The Applicant requests that
(directly or indirectly) by one or more
the Commission issue an order
Family Members and/or Family Entities
declaring the Applicant to be a person
in compliance with rule 202(a)(11)(G)–
not within the intent of section
1 (‘‘Family Office Rule’’). For purposes
202(a)(11), which defines the term
of the application, the term ‘‘Wick
‘‘investment adviser.’’
Family’’ means the lineal descendants
DATES: Filing Dates: The application was of Myron A. Wick, Jr., their spouses, and
filed on August 7, 2014, amended on
all of the persons and entities that
January 26, 2015, and further amended
qualify as Family Clients as defined in
on March 30, 2015.
paragraph (d)(4) of the Family Office
Hearing or Notification of Hearing: An Rule. Capitalized terms have the same
order granting the application will be
meaning as defined in the Family Office
issued unless the Commission orders a
Rule.
hearing. Interested persons may request
2. The Applicant provides both
a hearing by writing to the
advisory and non-advisory services
Commission’s Secretary and serving the (collectively, the ‘‘Services’’). Any
Applicant with a copy of the request,
Service provided by the Applicant that
personally or by mail. Hearing requests
relates to investment advice about
should be received by the Commission
securities or may otherwise be
by 5:30 p.m. on May 18, 2015 and
construed as advisory in nature is
should be accompanied by proof of
considered an ‘‘Advisory Service.’’
service on the Applicant, in the form of
3. The Applicant represents that,
an affidavit or, for lawyers, a certificate
other than the exceptions discussed in
of service. Pursuant to rule 0–5 under
representations 4 and 5 below, (i) each
the Advisers Act, hearing requests
of the persons served by the Applicant
should state the nature of the writer’s
is a Family Client, i.e., the Applicant
interest, any facts bearing upon the
has no clients other than Family Clients
desirability of a hearing on the matter,
as required by paragraph (b)(1) of the
the reason for the request, and the issues Family Office Rule, (ii) the Applicant is
contested. Persons may request
a Delaware limited liability company
notification of a hearing by writing to
owned and controlled in a manner that
the Commission’s Secretary.
complies in all respects with paragraph
(b)(2) of the Family Office Rule, and (iii)
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street NE., the Applicant does not hold itself out to
Washington, DC 20549. Applicant, D–W the public as an investment adviser as
required by paragraph (b)(3) of the
Investments LLC, c/o Martin E.
Family Office Rule. At the time of the
Lybecker, Perkins Coie LLP, Suite 600,
application, the Applicant represents
26 17 CFR 200.30–3(a)(12).
that Family Members account for more
VerDate Sep<11>2014
17:30 Apr 23, 2015
Jkt 235001
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
than 95% of the natural persons to
whom the Applicant provides Advisory
Services.
4. The Applicant provides Services to
the sister of the spouse of a lineal
descendant of Myron A. Wick, Jr.
(‘‘Sister-in-Law’’), as well as an
irrevocable trust (‘‘Trust’’) of which she
is a beneficiary (the Sister-in-Law and
the Trust, collectively, the ‘‘Additional
Family Client’’ and, together with the
Wick Family, the ‘‘Extended Wick
Family’’). The Applicant represents that
if the Sister-in-Law were a Family
Client, the Trust would meet the
requirements of (d)(4)(vii) of the Family
Office Rule.
5. The Sister-in-Law has less than a
3% limited liability company
membership interest in the Applicant,
and the Trust has less than a 2% limited
liability company membership interest
in the Applicant. Neither the Sister-inLaw nor the Trust has a management
role or exercises control over the
Applicant. The Applicant represents
that the assets owned beneficially by
Family Members and/or Family Entities
(excluding the Additional Family
Client) make up at least 75% of the total
assets for which the Applicant provides
Advisory Services.
6. The Applicant represents that the
Additional Family Client has important
familial ties to and is an integral part of
the Wick Family. The Applicant
maintains that including the Additional
Family Client in the ‘‘family’’ simply
recognizes and memorializes the
familial ties and intra-familial
relationships that already exist, and
have existed for at least 9 years while
the assets of the Additional Family
Client were managed by the Wick
Family.
Applicant’s Legal Analysis
1. Section 202(a)(11) of the Advisers
Act defines the term ‘‘investment
adviser’’ to mean ‘‘any person who, for
compensation, engages in the business
of advising others, either directly or
through publications or writings, as to
the value of securities or as to the
advisability of investing in, purchasing,
or selling securities, or who, for
compensation and as a part of a regular
business, issues or promulgates analyses
or reports concerning securities. . . .’’
2. The Applicant falls within the
definition of an investment adviser
under section 202(a)(11). The Family
Office provides an exclusion from the
definition of investment adviser for
which the Applicant would be eligible
but for the provision of services to the
Additional Family Client. Section 203(a)
of the Advisers Act requires investment
advisers to register with the
E:\FR\FM\24APN1.SGM
24APN1
]]>Agencies
[Federal Register Volume 80, Number 79 (Friday, April 24, 2015)]
[Notices]
[Pages 23060-23064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09498]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74767; File No. SR-BATS-2015-33]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use of BATS Exchange, Inc.
April 20, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\
[[Page 23061]]
notice is hereby given that on April 16, 2015, BATS Exchange, Inc. (the
``Exchange'' or ``BATS'') 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 Exchange has designated the proposed rule change
as one establishing or changing a member due, fee, or other charge
imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule
change effective upon filing with the Commission. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BATS Rules
15.1(a) and (c). Changes to the fee schedule pursuant to this proposal
are effective upon filing.
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify its fee schedule in order to: (1)
Adopt a Cross-Asset Tape B Tier; and (2) amend the fees charged for and
description of the logical ports \6\ offered by the Exchange.
---------------------------------------------------------------------------
\6\ A logical port is commonly referred to as a TCP/IP port, and
represents a port established by the Exchange within the Exchange's
system for trading and billing purposes. Each logical port
established is specific to a Member or non-member and grants that
Member or non-member the ability to operate a specific application,
such as FIX order entry or Multicast PITCH data receipt.
---------------------------------------------------------------------------
Cross-Asset Tape B Tier
Currently, the Exchange offers a rebate of $0.0020 per share as the
standard rebate for orders with fee code B, which applies to orders
that add liquidity to the Exchange in Tape B securities. The Exchange
also offers various tiers that provide Members with the opportunity to
earn higher rebates by meeting certain volume metrics. The Exchange is
proposing to adopt a new tier in footnote 12 titled ``Cross-Asset Tape
B Tier.'' Under the Cross-Asset Tape B Tier, the Exchange is proposing
to provide a $0.0031 per share rebate to a Member's orders with a fee
code of B for which the Member: (1) Has a Tape B Step-Up Add TCV \7\
from February 2015 that is equal to or greater than 0.06%; and (2) has
an Options Market Maker Add TCV \8\ that is equal to or greater than
0.75% on the Exchange's options platform (``BATS Options''). As such,
where a Member increases their ADAV \9\ in Tape B securities as a
percentage of TCV by at least .06% as compared to February 2015 and has
at least 0.75% ADAV \10\ of Market Maker \11\ orders as a percentage of
TCV \12\ on BATS Options, the Member will be eligible to receive the
$0.0031 per share rebate associated with the Cross-Asset Tape B Tier.
As is the case with any other rebates on the fee schedule, to the
extent that a Member qualifies for higher rebates than those provided
under the proposed Cross-Asset Tape B Tier, the higher rebates shall
apply.
---------------------------------------------------------------------------
\7\ The Exchange is proposing that ``Tape B Step-Up Add TCV''
means ADAV in Tape B securities as a percentage of TCV in the
relevant baseline month subtracted from current ADAV in Tape B
securities as a percentage of TCV.
\8\ The Exchange is proposing that ``Options Market Maker Add
TCV'' for purposes of equities pricing means ADAV resulting from
Market Maker orders as a percentage of TCV, using the definitions of
ADAV, Market Maker and TCV as provided under the Exchange's fee
schedule for BATS Options.
\9\ ``ADAV'' means average daily volume calculated as the number
of shares added per day.
\10\ As defined in the BATS Options fee schedule, ``ADAV'' means
average daily added volume calculated as the number of contracts
added per day.
\11\ As defined in the BATS Options fee schedule, ``Market
Maker'' applies to any transaction identified by a Member for
clearing in the Market Maker range at the OCC.
\12\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges to the consolidated transaction
reporting plan for the month for which the fees apply, excluding
volume on any day that the Exchange experiences an Exchange System
Disruption and on any day with a scheduled early market close.
---------------------------------------------------------------------------
Logical Port Fees
Currently, the Exchange maintains logical ports for order entry,
drop copies and the receipt of market data for which it currently
charges $400 per month per port with the exception of Multicast PITCH
Spin Server Ports and GRP Ports.\13\ Multicast PITCH Spin Server Ports
and GRP Ports are used to request and receive a retransmission of data
from the Exchange's Multicast PITCH data feed. The Exchange does charge
$400 per month for such ports, however, the Exchange separately
delineates such fees because of various details related to the use of
such ports. Specifically, Multicast PITCH Spin Server Ports are offered
as a complete set, including one logical port for each channel of the
Exchange's Multicast PITCH data feed, and can be taken for either of
the Exchange's primary Multicast PITCH data feeds.\14\ Similarly,
Multicast PITCH GRP Ports can be taken for either of the Exchange's
primary Multicast PITCH data feeds. The Exchange offers Multicast PITCH
Spin Server Ports for a fee of $400 per month for a set of primary
ports (A or C feed) and Multicast PITCH GRP Ports for a fee of $400 per
month per primary port (A or C feed). The Exchange offers and will
continue to offer for free the ports necessary to receive the
Exchange's redundant Multicast ``B feed'' and ``D feed'', as well as
all ports made available in the Exchange's secondary data center.
---------------------------------------------------------------------------
\13\ FIX and BOE ports are the only ports that may be used to
send orders and related instructions to the Exchange. All other port
types, including the Multicast PITCH Spin Server Port and GRP Port,
permit Members and non-members to receive information from the
Exchange.
\14\ The Exchange's primary Multicast PITCH data feeds are
identified as the ``A feed'' and the ``C feed'' and contain the same
information. The A feed and the C feed differ only in the way such
feeds are received. The Exchange also offers two redundant feeds,
identified as the ``B feed'' and the ``D feed''.
---------------------------------------------------------------------------
In early 2014, the Exchange and its affiliate, BATS Y-Exchange,
Inc. (``BYX''), received approval to effect a merger (the ``Merger'')
of the Exchange's parent company, BATS Global Markets, Inc., with
Direct Edge Holdings LLC, the indirect parent of EDGX and EDGA
(together with the Exchange, BYX and EDGX, the ``BGM Affiliated
[[Page 23062]]
Exchanges'').\15\ In the context of the Merger, the BGM Affiliated
Exchanges are working to align certain system and regulatory
functionality, retaining only intended differences between the BGM
Affiliated Exchanges. This includes migrating the BGM Affiliated
Exchanges, which are currently located in different data centers, into
a single data center. As part of the data center migration and the
integration of the BGM Affiliated Exchanges, the Exchange is proposing
to increase the fees charged from $400 per month to $500 per month for
all categories of logical ports, including sets of Multicast PITCH Spin
Server Ports for the A feed and the C feed, individual GRP Ports for
the A feed and the C feed, and all other logical ports. The Exchange
notes that EDGA and EDGX currently charge $500 per month for most
logical ports.\16\ The Exchange communicated to Members and non-Members
regarding these changes via a trading notice issued on October 7,
2014.\17\
---------------------------------------------------------------------------
\15\ See Securities Exchange Act Release No. 71375 (January 23,
2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013-
039).
\16\ The Exchange notes that BYX intends to file a proposal very
similar to this proposal that will align its logical port fees
across each of the BGM Affiliated Exchanges. The Exchange also notes
that EDGA and EDGX also intend to file a proposal to charge $500 per
month for all types of logical ports as well as to change the
descriptions used for logical port fees to mirror the descriptions
used by the Exchange and BYX.
\17\ See BATS Global Markets Access Fee Changes for 2015,
available at https://cdn.batstrading.com/resources/fee_schedule/2015/BATS-Global-Markets-Access-Services-Fee-Changes-for-2015.pdf (issued
October 7, 2014).
---------------------------------------------------------------------------
In addition to increasing the port fees charged by the Exchange,
the Exchange proposes to add the words ``Multicast PITCH'' before GRP
Ports to mirror the description of fees for Multicast PITCH Spin Server
Ports. As noted above, the separate fees for Spin Server Ports and GRP
Ports both relate to the Exchange's Multicast PITCH data feed.
Implementation Date
The Exchange proposes to implement the amendments to its fee
schedule effective immediately.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\18\ in general, and
furthers the objectives of Section 6(b)(4),\19\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The Exchange believes that the proposed rates
are equitable and non-discriminatory in that they apply uniformly to
all Members.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f.
\19\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Cross-Asset Tape B Tier
Volume-based rebates and fees such as the ones currently maintained
on BATS Options have been widely adopted by equities and options
exchanges and are equitable because they are open to all Members on an
equal basis and provide additional benefits or discounts that are
reasonably related to the value to an exchange's market quality
associated with higher levels of market activity, such as higher levels
of liquidity provision and/or growth patterns, and introduction of
higher volumes of orders into the price and volume discovery processes.
The Exchange believes that the proposal to add a Cross-Asset Tape B
Tier is a reasonable, fair and equitable, and not unfairly
discriminatory allocation of fees and rebates because it will provide
Members with an additional incentive to reach certain thresholds on
both the Exchange in Tape B securities and BATS Options. The increased
liquidity from this proposal also benefits all investors by deepening
the Exchange and BATS Options liquidity pools, offering additional
flexibility for all investors to enjoy cost savings, supporting the
quality of price discovery, promoting market transparency and improving
investor protection. Such pricing programs thereby reward a Member's
growth pattern in Tape B securities and such increased volume increases
potential revenue to the Exchange, and will allow the Exchange to
continue to provide and potentially expand the incentive programs
operated by the Exchange. To the extent a Member participates on the
Exchange but not on BATS Options, the Exchange does believe that the
proposal is still reasonable, equitably allocated and non-
discriminatory with respect to such Member based on the overall benefit
to the Exchange resulting from the success of BATS Options. As noted
above, such success allows the Exchange to continue to provide and
potentially expand its existing incentive programs to the benefit of
all participants on the Exchange, whether they participate on BATS
Options or not. The proposed pricing program is also fair and equitable
in that membership in BATS Options is available to all members which
would provide them with access to the benefits on BATS Options provided
by the proposed changes, as described above, even where a member of
BATS Options is not necessarily eligible for the proposed increased
rebates on the Exchange. Further, the proposed changes will result in
Members receiving either the same or an increased rebate than they
would currently receive. The Exchange also notes that the proposed
cross-asset step up tiers are similar to pricing tiers already employed
by the Exchange as well as on other exchanges, including EDGX Exchange,
Inc. (``EDGX''), which maintains a Tape B Step Up tier to incentivize
added liquidity in Tape B securities.\20\
---------------------------------------------------------------------------
\20\ See EDGX fee schedule, footnote 2.
---------------------------------------------------------------------------
Logical Port Fees
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(4) of the Act,\21\ in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and other persons using any facility or system which the
Exchange operates or controls. The Exchange notes that its proposed
changes, combined with the planned filings for EDGA, EDGX and BZX
[sic],\22\ would allow the BGM Affiliated Exchanges to provide
consistent logical port offerings across each of the BGM Affiliated
Exchanges. Consistent offerings, in turn, will simplify the
connectivity requirements for Members of the Exchange that are also
participants on EDGA, BZX [sic] and/or BYX. The proposed rule change
would result in greater uniformity and less burdensome and more
efficient understanding of Exchange connectivity requirements.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78f(b)(4).
\22\ See supra note 16.
---------------------------------------------------------------------------
The Exchange believes that the increase of fees for logical ports
represents an equitable allocation of reasonable dues, fees and other
charges. The Exchange operates in a highly competitive market in which
exchanges offer connectivity services as a means to facilitate the
trading activities of members and other participants. Accordingly, fees
charged for connectivity are constrained by the active competition for
the order flow of such participants as well as demand for market data
from the Exchange. If a particular exchange charges excessive fees for
connectivity, affected members will opt to terminate their connectivity
arrangements with that exchange, and adopt a possible range of
alternative strategies, including routing to the applicable exchange
through another
[[Page 23063]]
participant or market center or taking that exchange's data indirectly.
Accordingly, the exchange charging excessive fees would stand to lose
not only connectivity revenues but also revenues associated with the
execution of orders routed to it by affected members, and, to the
extent applicable, market data revenues. The Exchange believes that
this competitive dynamic imposes powerful restraints on the ability of
any exchange to charge unreasonable fees for connectivity. Lastly, the
Exchange believe [sic] its proposed fees are reasonable because the
Nasdaq Stock Market LLC (``Nasdaq'') and the NYSE Arca, Inc. (``NYSE
Arca'') charge comparable rates for logical ports to access such
markets.\23\ As noted above, EDGA and EDGX also charge the same rate
for access to most logical ports.
---------------------------------------------------------------------------
\23\ See Nasdaq Rule 7015 (providing no FIX or non-Trading FIX
ports free of charge) and the NYSE Arca fee schedule available at
https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (dated February 26, 2015). The
Exchange recognizes that some participants may be charged the lower
rate of $200 per month to the extent such participants maintain a
low number of ports with NYSE Arca. The Exchange nonetheless
believes that its proposed fees are comparable despite the fact that
it does not propose a lower fee for such participants.
---------------------------------------------------------------------------
The Exchange believes that its proposed changes to logical port
fees are reasonable in light of the benefits to Exchange participants
of direct market access and receipt of data. In addition, the Exchange
believes that its fees are equitably allocated among Exchange
constituents based upon the number of access ports that they require to
access and receive data from the Exchange. The Exchange also believes
that its fees for access services will enable it to better cover its
infrastructure costs and to improve its market technology and services.
Lastly, the Exchange also believes that the proposed amendments to
its fee schedule are non-discriminatory because they will apply
uniformly to all Members. All Members that voluntarily select various
service options will be charged the same amount for the same services.
All Members have the option to select any connectivity option, and
there is no differentiation among Members with regard to the fees
charged for the services offered by the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe its proposed amendments to its fee
schedule would impose any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act.
Cross-Asset Tape B Tier
The Exchange does not believe that its proposal to add a new cross-
asset step-up tier would burden competition, but instead, enhance
competition, as it is intended to increase the competitiveness of and
draw additional volume to both the Exchange and BATS Options. As stated
above, the Exchange notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee structures to be unreasonable or
excessive. The proposed changes are generally intended to enhance the
rebates for liquidity added to the Exchange, which is intended to draw
additional liquidity to the Exchange. As such, the proposal is a
competitive proposal that is intended to add additional liquidity to
the Exchange, which will, in turn, benefit the Exchange and all
Exchange participants.
Logical Port Fees
The Exchange does not believe that the proposed change to logical
port fees represents a significant departure from previous pricing
offered by the Exchange or pricing offered by the Exchange's
competitors. Additionally, Members may opt to disfavor the Exchange's
pricing if they believe that alternatives offer them better value.
Accordingly, the Exchange does not believe that the proposed change
will impair the ability of Members or competing 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \24\ and paragraph (f) of Rule 19b-4
thereunder.\25\ 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.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 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-BATS-2015-33 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BATS-2015-33. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BATS-2015-33,
and should be submitted on or before May 15, 2015.
[[Page 23064]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-09498 Filed 4-23-15; 8:45 am]
BILLING CODE 8011-01-P
