Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rules 21.2, 21.6, and 21.7, as They Relate to Order Acceptance Time, 68581-68583 [2015-28145]
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Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices
technology and science and to identify
the tools, techniques, and training
needed to advance agricultural research
beyond current roadblocks to
innovation.
Questions
Respondents may wish to address the
following questions with regard to the
future of agriculture and food systems:
1. Over the next ten years, what are
the most important research gaps that
must be addressed to advance
agricultural innovation?
2. What interdisciplinary agriculture
and food programs successfully impact
agricultural innovation?
3. What elementary, middle, and high
school outreach programs are successful
examples of introducing students to
agricultural careers, and what are
examples of effective ways to introduce
agriculture to suburban and urban
students interested in careers in science,
technology, engineering, and math
(STEM)?
4. How can colleges and universities
recruit STEM undergraduates into
agricultural disciplines? What effect, if
any, do introductory courses that engage
students in discovery-based research
have for this purpose?
5. What resources are fundamental to
addressing agricultural research needs?
6. What further training is needed
among agricultural professionals to take
advantage of advances in agriculture
research?
7. Is there any additional information,
not requested above, that you believe
OSTP should consider in identifying
crucial areas of agricultural research?
Ted Wackler,
Deputy Chief of Staff and Assistant Director.
[FR Doc. 2015–28289 Filed 11–4–15; 8:45 am]
BILLING CODE 3270–F6–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76320; File No. SR–BATS–
2015–92]
jstallworth on DSK7TPTVN1PROD with NOTICES
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rules 21.2, 21.6, and
21.7, as They Relate to Order
Acceptance Time
October 30, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
28, 2015, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it 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 the Substance
of the Proposed Rule Change
The Exchange filed a proposal to
amend Rules 21.2, 21.6, and 21.7 to
change the time orders will be accepted
on the Exchange’s options platform
(‘‘BATS Options’’) from 8:00 a.m. to
7:30 a.m.
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 is proposing to amend
Rules 21.2, 21.6, and 21.7 to change the
time orders will be accepted on BATS
Options from 8:00 a.m. to 7:30 a.m.
Currently, the Exchange begins
accepting orders at 8:00 a.m. Eastern
Time. Orders would then be available
for execution as of 9:30 a.m. until 4:00
p.m. Eastern Time.5 The Exchange does
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
5 Option contracts on Fund Shares, as defined in
Rule 19.3(i), option contracts on exchange-traded
4 17
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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15:06 Nov 04, 2015
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68581
not propose to amend how it handles
orders accepted prior to the market open
other than to begin accepting orders at
7:30 a.m. Eastern Time rather than 8:00
a.m. Eastern Time.
First, the Exchange proposes to
amend Rule 21.2(a) to expressly state
that the Exchange will begin accepting
orders at 7:30 a.m. Eastern Time, as
described in Rule 21.7 and discussed
below. The addition of this sentence to
Rule 21.2(a) would align the text of the
rule with EDGX Exchange, Inc.
(‘‘EDGX’’) Rule 21.2(a).6
Second, the Exchange proposes to
amend Rule 21.6(c) to state that orders
can be entered into the System starting
at 7:30 a.m. Eastern Time. Currently, the
Rule 21.6(c) states that orders can be
entered into the System from 9:30 a.m.
Eastern Time until the market close.
While orders will be accepted by the
System starting at 7:30 a.m. Eastern
Time, they will not be eligible for
execution until 9:30 a.m. Eastern Time.
The Exchange also proposes to amend
Rule 21.6(c) to state that orders received
prior to completion of the Exchange’s
Opening Process will be handled in
accordance with Rule 21.7 discussed
below. As with the proposed change to
Rule 21.2(a) discussed above, the
addition of this sentence to Rule 21.6(c)
would align the text of the rule with
EDGX Rule 21.6(c).7
Lastly, as amended, Rule 21.7 would
state that the Exchange will accept
market and limit orders and quotes for
inclusion in the opening process
beginning at 7:30 a.m. Eastern Time,
rather than 8:00 a.m. as is currently the
case and will continue to accept market
and limit orders and quotes until such
time as the Opening Process is initiated
in that option series (the ‘‘Order Entry
Period’’), other than index options.8 The
Exchange will continue to not accept
IOC,9 FOK 10 or WAIT 11 orders for
queuing prior to the completion of the
Opening Process. The Exchange will
also continue to convert all Intermarket
notes including Index-Linked Securities, as defined
in Rule 19.3(l), and option contracts on broad-based
indexes, as defined in Rule 29.1(j), close as of 4:15
p.m. Eastern Time. See Exchange Rule 21.2(a).
6 The Exchange understands that EDGX is to also
file a proposed rule change with the Commission
to amend its Rules 21.2, 21.6, and 21.7 to change
the time orders will be accepted from 8:00 a.m. to
7:30 a.m.
7 Id.
8 Rule 21.7 also discusses order acceptance when
the primary listing market for the applicable
underlying security declares a regulatory trading
halt, suspension, or pause with respect to such
security (‘‘Regulatory Halt’’). The Exchange does
not propose to amend the treatment of orders
during a Regulatory Halt under Rule 21.7.
9 See Exchange Rule 21.1(f)(2).
10 See Exchange Rule 21.1(f)(5).
11 See Exchange Rule 21.1(f)(4).
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Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices
Sweep Orders (‘‘ISOs’’) 12 entered for
queuing prior to the completion of the
Opening Process into non-ISOs.
2. Statutory Basis
The Exchange believes that its
proposal to begin accepting orders at
7:30 a.m. is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the
Act.13 In particular, the proposal is
consistent with Section 6(b)(5) of the
Act 14 because it is designed to promote
just and equitable principles of trade
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The Exchange believes that
accepting orders at 7:30 a.m. will benefit
investors, the national market system,
Members, and the Exchange market by
increasing competition for order flow
and executions, and thereby spurring
product enhancements and lowering
prices. The Exchange also notes that
other options exchanges currently
accept orders prior to 8:00 a.m. Eastern
Time 15 and the proposal would enable
the Exchange to directly compete with
these exchanges for order flow.
Lastly, the Exchange believes the
proposed additions to Rules 21.2(a) and
21.6(c) are consistent with Section
6(b)(5) of the Act 16 because it is
designed to provide consistent rules
across the Exchange and EDGX, thereby
removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system. The proposed rule changes
would provide greater harmonization
between rules of similar purpose on the
Exchange and EDGX, resulting in greater
uniformity and less burdensome and
more efficient regulatory compliance
and understanding of Exchange Rules.
As such, the proposed rule change
would foster cooperation and
12 See
Exchange Rule 21.1(d)(11).
U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
15 See Nasdaq OMX Systems Hours of Operation,
available at https://nasdaqtrader.com/content/
TechnicalSupport/nasdaq_sys_hours.pdf (stating
that system hours begin at 7:00 a.m. for Nasdaq
OMX BX (‘‘BX’’) and 7:30 a.m. for Nasdaq OMX
PHLX (‘‘PHLX’’), and BX Chapter VI, Section 2(a)
(stating the System operates and shall be available
to accept bids and offers and orders from the time
prior to market open specified by the Exchange on
its Web site to market close on each business day).
See also Hours of Operation of the MIAX Options
Exchange (‘‘MIAX’’) available at https://
www.miaxoptions.com/hours-operation-miaxoptions-exchange (stating that firms can connect
and conduct pre-market activity starting at 7:30
a.m.).
16 15 U.S.C. 78f(b)(5).
jstallworth on DSK7TPTVN1PROD with NOTICES
13 15
VerDate Sep<11>2014
15:06 Nov 04, 2015
Jkt 238001
coordination with persons engaged in
facilitating transactions in securities and
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the proposed rule change is a
competitive change that is designed to
attract additional order flow to the
Exchange.17 The proposed rule change
would, therefore, increase competition
by enabling the Exchange to accept
orders starting at 7:30 a.m. Eastern Time
like its competitors. For all the reasons
stated above, the Exchange does not
believe that the proposed rule changes
will impose any burden on competition
not necessary or appropriate in
furtherance of the purposes of the Act,
and believes the proposed change will
enhance competition. Lastly, the
proposed changes to Rules 21.2(a) and
21.6(c) are not designed to address any
competitive issues but rather to provide
greater harmonization among Exchange
and EDGX rules of similar purpose.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change. 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
Because the foregoing proposed rule
change does not: (A) Significantly affect
the protection of investors or the public
interest; (B) impose any significant
burden on competition; and (C) by its
terms, become operative for 30 days
from the date on which it was filed or
such shorter time as the Commission
may designate it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 18 and paragraph (f)(6) of Rule 19b4 thereunder,19 the Exchange has
designated this rule filing as noncontroversial. The Exchange has given
the Commission written notice of its
intent to file the proposed rule change,
17 See
supra note 15.
U.S.C. 78s(b)(3)(A).
19 17 CFR 240.19b–4.
18 15
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
along with a brief description and text
of the proposed rule 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.
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: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
BATS–2015–92 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BATS–2015–92. 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
E:\FR\FM\05NON1.SGM
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Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BATS–
2015–92, and should be submitted on or
before November 27, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–28145 Filed 11–4–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76321; File No. SR–EDGX–
2015–50]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rules 21.2,
21.6, and 21.7, as They Relate To Order
Acceptance Time
October 30, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
28,2015, EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
jstallworth on DSK7TPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange filed a proposal to
amend Rules 21.2, 21.6, and 21.7 to
change the time orders will be accepted
on the Exchange’s options platform
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
1 15
15:06 Nov 04, 2015
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 is proposing to amend
Rules 21.2, 21.6, and 21.7 to change the
time orders will be accepted on EDGX
Options from 8:00 a.m. to 7:30 a.m.
Currently, Exchange rules state that the
Exchange will begin accepting orders at
8:00 a.m. Eastern Time. Orders would
then be available for execution as of
9:30 a.m. until 4:00 p.m. Eastern Time.5
The Exchange does not propose to
amend how it would handle orders
accepted prior to the market open other
than to begin accepting orders at 7:30
a.m. Eastern Time rather than 8:00 a.m.
Eastern Time.
First, the Exchange proposes to
amend Rule 21.2(a) to state that the
Exchange will begin accepting orders at
7:30 a.m. Eastern Time, as described in
Rule 21.7 and discussed below. Second,
the Exchange proposes to amend Rule
21.6(c) to state that orders can be
entered into the System starting at 7:30
a.m. Eastern Time. Currently, the Rule
21.6(c) states that orders can be entered
into the System from 8:00 a.m. Eastern
Time until the market close. While
orders will be accepted by the System
starting at 7:30 a.m. Eastern Time, they
will not be eligible for execution until
9:30 a.m. Eastern Time.
5 Option contracts on Fund Shares, as defined in
Rule 19.3(i), option contracts on exchange-traded
notes including Index-Linked Securities, as defined
in Rule 19.3(l), and option contracts on broad-based
indexes, as defined in Rule 29.1(j), close as of 4:15
p.m. Eastern Time. See Exchange Rule 21.2(a).
20 17
VerDate Sep<11>2014
(‘‘EDGX Options’’) from 8:00 a.m. to
7:30 a.m.
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.
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68583
Lastly, as amended, Rule 21.7 would
state that the Exchange will accept
market and limit orders and quotes for
inclusion in the opening process
beginning at 7:30 a.m. Eastern Time,
rather than 8:00 a.m. as is currently the
case and will continue to accept market
and limit orders and quotes until such
time as the Opening Process is initiated
in that option series (the ‘‘Order Entry
Period’’), other than index options.6 The
Exchange will continue to not accept
IOC 7 or FOK 8 orders for queuing prior
to the completion of the Opening
Process. The Exchange will also
continue to convert all Intermarket
Sweep Orders (‘‘ISOs’’) 9 entered for
queuing prior to the completion of the
Opening Process into non-ISOs.
2. Statutory Basis
The Exchange believes that its
proposal to begin accepting orders at
7:30 a.m. is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the
Act.10 In particular, the proposal is
consistent with Section 6(b)(5) of the
Act 11 because it is designed to promote
just and equitable principles of trade
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The Exchange believes that
accepting orders at 7:30 a.m. will benefit
investors, the national market system,
Members, and the Exchange market by
increasing competition for order flow
and executions, and thereby spurring
product enhancements and lowering
prices. The Exchange also notes that
other options exchanges currently
accept orders prior to 8:00 a.m. Eastern
Time 12 and the proposal would enable
6 Rule 21.7 also discusses order acceptance when
the primary listing market for the applicable
underlying security declares a regulatory trading
halt, suspension, or pause with respect to such
security (‘‘Regulatory Halt’’). The Exchange does
not propose to amend the treatment of orders
during a Regulatory Halt under Rule 21.7.
7 See Exchange Rule 21.1(f)(2).
8 See Exchange Rule 21.1(f)(5).
9 See Exchange Rule 21.1(d)(10).
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 See Nasdaq OMX Systems Hours of Operation,
available at https://nasdaqtrader.com/content/
TechnicalSupport/nasdaq_sys_hours.pdf (stating
that system hours begin at 7:00 a.m. for Nasdaq
OMX BX (‘‘BX’’) and 7:30 a.m. for Nasdaq OMX
PHLX (‘‘PHLX’’), and BX Chapter VI, Section 2(a)
(stating the System operates and shall be available
to accept bids and offers and orders from the time
prior to market open specified by the Exchange on
its Web site to market close on each business day).
See also Hours of Operation of the MIAX Options
Exchange (‘‘MIAX’’) available at https://
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]]>Agencies
[Federal Register Volume 80, Number 214 (Thursday, November 5, 2015)]
[Notices]
[Pages 68581-68583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28145]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76320; File No. SR-BATS-2015-92]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rules
21.2, 21.6, and 21.7, as They Relate to Order Acceptance Time
October 30, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 28, 2015, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange filed a proposal to amend Rules 21.2, 21.6, and 21.7
to change the time orders will be accepted on the Exchange's options
platform (``BATS Options'') from 8:00 a.m. to 7:30 a.m.
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 is proposing to amend Rules 21.2, 21.6, and 21.7 to
change the time orders will be accepted on BATS Options from 8:00 a.m.
to 7:30 a.m. Currently, the Exchange begins accepting orders at 8:00
a.m. Eastern Time. Orders would then be available for execution as of
9:30 a.m. until 4:00 p.m. Eastern Time.\5\ The Exchange does not
propose to amend how it handles orders accepted prior to the market
open other than to begin accepting orders at 7:30 a.m. Eastern Time
rather than 8:00 a.m. Eastern Time.
---------------------------------------------------------------------------
\5\ Option contracts on Fund Shares, as defined in Rule 19.3(i),
option contracts on exchange-traded notes including Index-Linked
Securities, as defined in Rule 19.3(l), and option contracts on
broad-based indexes, as defined in Rule 29.1(j), close as of 4:15
p.m. Eastern Time. See Exchange Rule 21.2(a).
---------------------------------------------------------------------------
First, the Exchange proposes to amend Rule 21.2(a) to expressly
state that the Exchange will begin accepting orders at 7:30 a.m.
Eastern Time, as described in Rule 21.7 and discussed below. The
addition of this sentence to Rule 21.2(a) would align the text of the
rule with EDGX Exchange, Inc. (``EDGX'') Rule 21.2(a).\6\
---------------------------------------------------------------------------
\6\ The Exchange understands that EDGX is to also file a
proposed rule change with the Commission to amend its Rules 21.2,
21.6, and 21.7 to change the time orders will be accepted from 8:00
a.m. to 7:30 a.m.
---------------------------------------------------------------------------
Second, the Exchange proposes to amend Rule 21.6(c) to state that
orders can be entered into the System starting at 7:30 a.m. Eastern
Time. Currently, the Rule 21.6(c) states that orders can be entered
into the System from 9:30 a.m. Eastern Time until the market close.
While orders will be accepted by the System starting at 7:30 a.m.
Eastern Time, they will not be eligible for execution until 9:30 a.m.
Eastern Time. The Exchange also proposes to amend Rule 21.6(c) to state
that orders received prior to completion of the Exchange's Opening
Process will be handled in accordance with Rule 21.7 discussed below.
As with the proposed change to Rule 21.2(a) discussed above, the
addition of this sentence to Rule 21.6(c) would align the text of the
rule with EDGX Rule 21.6(c).\7\
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\7\ Id.
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Lastly, as amended, Rule 21.7 would state that the Exchange will
accept market and limit orders and quotes for inclusion in the opening
process beginning at 7:30 a.m. Eastern Time, rather than 8:00 a.m. as
is currently the case and will continue to accept market and limit
orders and quotes until such time as the Opening Process is initiated
in that option series (the ``Order Entry Period''), other than index
options.\8\ The Exchange will continue to not accept IOC,\9\ FOK \10\
or WAIT \11\ orders for queuing prior to the completion of the Opening
Process. The Exchange will also continue to convert all Intermarket
[[Page 68582]]
Sweep Orders (``ISOs'') \12\ entered for queuing prior to the
completion of the Opening Process into non-ISOs.
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\8\ Rule 21.7 also discusses order acceptance when the primary
listing market for the applicable underlying security declares a
regulatory trading halt, suspension, or pause with respect to such
security (``Regulatory Halt''). The Exchange does not propose to
amend the treatment of orders during a Regulatory Halt under Rule
21.7.
\9\ See Exchange Rule 21.1(f)(2).
\10\ See Exchange Rule 21.1(f)(5).
\11\ See Exchange Rule 21.1(f)(4).
\12\ See Exchange Rule 21.1(d)(11).
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2. Statutory Basis
The Exchange believes that its proposal to begin accepting orders
at 7:30 a.m. is consistent with the requirements of the Act and the
rules and regulations thereunder that are applicable to a national
securities exchange, and, in particular, with the requirements of
Section 6(b) of the Act.\13\ In particular, the proposal is consistent
with Section 6(b)(5) of the Act \14\ because it is designed to promote
just and equitable principles of trade and to remove impediments to and
perfect the mechanism of a free and open market and a national market
system. The Exchange believes that accepting orders at 7:30 a.m. will
benefit investors, the national market system, Members, and the
Exchange market by increasing competition for order flow and
executions, and thereby spurring product enhancements and lowering
prices. The Exchange also notes that other options exchanges currently
accept orders prior to 8:00 a.m. Eastern Time \15\ and the proposal
would enable the Exchange to directly compete with these exchanges for
order flow.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ See Nasdaq OMX Systems Hours of Operation, available at
https://nasdaqtrader.com/content/TechnicalSupport/nasdaq_sys_hours.pdf (stating that system hours begin at 7:00 a.m.
for Nasdaq OMX BX (``BX'') and 7:30 a.m. for Nasdaq OMX PHLX
(``PHLX''), and BX Chapter VI, Section 2(a) (stating the System
operates and shall be available to accept bids and offers and orders
from the time prior to market open specified by the Exchange on its
Web site to market close on each business day). See also Hours of
Operation of the MIAX Options Exchange (``MIAX'') available at
https://www.miaxoptions.com/hours-operation-miax-options-exchange
(stating that firms can connect and conduct pre-market activity
starting at 7:30 a.m.).
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Lastly, the Exchange believes the proposed additions to Rules
21.2(a) and 21.6(c) are consistent with Section 6(b)(5) of the Act \16\
because it is designed to provide consistent rules across the Exchange
and EDGX, thereby removing impediments to and perfecting the mechanism
of a free and open market and a national market system. The proposed
rule changes would provide greater harmonization between rules of
similar purpose on the Exchange and EDGX, resulting in greater
uniformity and less burdensome and more efficient regulatory compliance
and understanding of Exchange Rules. As such, the proposed rule change
would foster cooperation and coordination with persons engaged in
facilitating transactions in securities and would remove impediments to
and perfect the mechanism of a free and open market and a national
market system.
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\16\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. To the contrary, the
proposed rule change is a competitive change that is designed to
attract additional order flow to the Exchange.\17\ The proposed rule
change would, therefore, increase competition by enabling the Exchange
to accept orders starting at 7:30 a.m. Eastern Time like its
competitors. For all the reasons stated above, the Exchange does not
believe that the proposed rule changes will impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act, and believes the proposed change will enhance competition.
Lastly, the proposed changes to Rules 21.2(a) and 21.6(c) are not
designed to address any competitive issues but rather to provide
greater harmonization among Exchange and EDGX rules of similar purpose.
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\17\ See supra note 15.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change. 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
Because the foregoing proposed rule change does not: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, become operative for 30 days from the date on which it was
filed or such shorter time as the Commission may designate it has
become effective pursuant to Section 19(b)(3)(A) of the Act \18\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\19\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule 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.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4.
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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: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-BATS-2015-92 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BATS-2015-92. 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
[[Page 68583]]
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File No. SR-BATS-2015-92, and should be submitted on or before November
27, 2015.
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\20\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-28145 Filed 11-4-15; 8:45 am]
BILLING CODE 8011-01-P
