Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to ALLB Routing and Other Fees for Use of BATS Exchange, Inc., 80428-80430 [2015-32384]
Download as PDF
80428
Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
of the Act 12 and Rule 19b–4(f)(6) 13
thereunder. The Exchange has requested
that the Commission waive the thirtyday operative delay so that the proposal
may become operative as of January 4,
2016. The Exchange states that waiving
the thirty-day delay would enable it to
implement the Securities Trader and
Securities Trader Principal registration
categories, and their respective
examination and continuing education
requirements, at the same time as
FINRA and the other national securities
exchanges. The Commission believes
that waiving the thirty day delay is
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the thirty-day operative delay
and designates the proposal operative as
of January 4, 2016.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SRMIAX–2015–71 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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. The Exchange has satisfied this
requirement.
14 For purposes of waiving the 30-day operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
mstockstill on DSK4VPTVN1PROD with NOTICES
13 17
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17:57 Dec 23, 2015
Jkt 238001
All submissions should refer to File
Number SR–MIAX–2015–71. 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–MIAX–
2015–71 and should be submitted on or
before January 14, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–32387 Filed 12–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76688; File No. SR–BATS–
2015–114]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to ALLB Routing
and Other Fees for Use of BATS
Exchange, Inc.
December 18, 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 December
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00117
Fmt 4703
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15, 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, 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) (‘‘Fee Schedule’’) to
adopt fees for the recently adopted
ALLB routing strategy. The Exchange
also proposes to amend the Fee Codes
and Associated Fees table of the Fee
Schedule to indicate the amount of the
fees and rebates as five decimal points,
rather than four decimal points, by
adding a zero to the end of each fee and
rebate.
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.
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. A Member will
have the status of a ‘‘member’’ of the Exchange as
that term is defined in Section 3(a)(3) of the Act.’’
See Exchange Rule 1.5(n).
4 17
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Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
ALLB Routing Fees
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange proposes to adopt fees
for the ALLB routing strategy. In sum,
ALLB is a routing option under which
the order checks the System 6 for
available shares and is then sent to the
BATS Y-Exchange, Inc. (‘‘BYX’’), EDGA
Exchange, Inc. (‘‘EDGA’’), and the EDGX
Exchange, Inc. (‘‘EDGX’’ collectively
with the Exchange, BYX, and EDGA, the
‘‘BGM Affiliated Exchanges’’).7
Specifically, an order subject to the
ALLB routing option would execute first
against liquidity on the BATS Book.8
Any remainder would then be routed to
BYX, EDGA, and/or EDGX in
accordance with the System routing
table.9
The Exchange now proposes to adopt
three new fee codes, AA, AX, and AY
and related fees for the ALLB routing
strategy. These fee codes would enable
the Exchange to pass through the rate
that BATS Trading, Inc. (‘‘BATS
Trading’’), the Exchange’s affiliated
routing broker-dealer, would be charged
for routing orders to BYX, EDGA, and
EDGX.10 Each of the proposed fee codes
are described as follows:
• Fee Code AA. Order routed to
EDGA using the ALLB routing strategy
would yield fee code AA and receive a
rebate of $0.00200 per share in
securities priced at or above $1.00.
Under proposed footnote 15, orders
yielding fee code AA in securities
priced below $1.00 would be charged no
fee nor would they receive a rebate.
• Fee Code AX. Order routed to
EDGX using the ALLB routing strategy
would yield fee code AY and be charged
a fee of $0.00290 per share in securities
6 The term ‘‘System’’ is defined as ‘‘the electronic
communications and trading facility designated by
the Board through which securities orders of Users
are consolidated for ranking, execution and, when
applicable, routing away.’’ See Exchange Rule
1.5(aa).
7 See Exchange Rule 11.13(b)(3)(O). See also
Securities Exchange Act Release No. 76455
(November 17, 2015), 80 FR 73009 (November 23,
2015) (SR–BATS–2015–97).
8 The term ‘‘BATS Book’’ is defined as ‘‘the
System’s electronic file of orders.’’ See Exchange
Rule 1.5(e).
9 The term ‘‘System routing table’’ refers to the
proprietary process for determining the specific
trading venues to which the System routes orders
and the order in which it routes them. See
Exchange Rule 11.13(b)(3).
10 Orders using the ALLB routing option that
execute on the Exchange would be subject to the
Exchange’s standard fees and rebates, unless the
Member achieves a volume tiered reduced fee or
enhanced rebate.
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17:57 Dec 23, 2015
Jkt 238001
priced at or above $1.00. Under
proposed footnote 16, orders yielding
fee code AX in securities priced below
$1.00 would be charged a fee of 0.30%
of the transaction’s dollar value.
• Fee Code AY. Order routed to BYX
using the ALLB routing strategy would
yield fee code AY and receive a rebate
of $0.00150 per share in securities
priced at or above $1.00. Under
proposed footnote 17, orders yielding
fee code AY in securities priced below
$1.00 would be charged a fee of 0.10%
of the transaction’s dollar value.
BATS Trading will pass through the
above rates to the Exchange and the
Exchange, in turn, will pass through
that exact rate to its Members. The
proposed rates would enable the
Exchange to equitably allocate its costs
among all Members utilizing the ALLB
routing strategy.
Fee Codes and Associated Fees Table
The Exchange also proposes to amend
the Fee Codes and Associated Fees table
to indicate the amount of the fees and
rebates as five decimal points, rather
than four decimal points, by adding a
zero to the end of each fee and rebate,
to reflect the order pricing format on the
Exchange’s Web site.11 The Exchange
notes that none of these changes amend
any fee or rebate, nor do they alter the
manner in which it assesses fees or
calculates rebates.
Implementation Date
The Exchange proposes to implement
this amendment to its Fee Schedule on
January 4, 2016, but the proposed fee
codes and their associated rates will not
be available until January 8, 2016, the
date upon which it announced to
Members that it would implement the
ALLB routing strategy.12
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,13
in general, and furthers the objectives of
Section 6(b)(4),14 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 believes that its proposed
rates represent an equitable allocation of
11 The Exchange notes that fee code D already
indicates its related fee as five decimal points.
12 See BATS Announces ALLB Routing Option,
available at https://cdn.batstrading.com/resources/
release_notes/2015/BATS-ALL-BATS-RoutingStrategy-Release-Schedule-Updated.pdf. The
Exchange notes that the Fee Schedule’s date was
amended to January 4, 2016 in file no. SR–BATS–
2015–115 (December 8, 2015).
13 15 U.S.C. 78f.
14 15 U.S.C. 78f(b)(4).
PO 00000
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reasonable dues, fees, and other charges
among Members and other persons
using its facilities because the Exchange
does not levy additional fees or offer
additional rebates for orders that it
routes to BYX, EDGA, and EDGX
through BATS Trading. The Exchange
believes that its proposed pass through
rate for orders that yield fee codes AA,
AX or AY is equitable and reasonable
because it accounts for the rate that
BATS Trading would be subject to for
orders it routes and are executed on
BYX, EDGA, and EDGX. In addition, the
proposal allows the Exchange to passthrough to its Members the rate for
orders that are routed to BYX, EDGA,
and EDGX using the ALLB routing
strategy. Furthermore, the Exchange
notes that routing through BATS
Trading is voluntary. Lastly, the
Exchange also believes that the
proposed amendment is nondiscriminatory because it applies
uniformly to all Members.
The Exchange believes that the
changes to the Fee Codes and
Associated Fees table of the Fee
Schedule are reasonable because they
are designed to provide greater
transparency to Members with regard to
how the Exchange assesses fees and
calculates rebates. The Exchange notes
that none of the proposed changes are
designed to amend any fee, nor alter the
manner in which it assesses fees or
calculates rebates. These changes to the
Fee Schedule are intended to make the
Fee Schedule clearer and less confusing
for investors and eliminate potential
investor confusion, thereby removing
impediments to and perfecting the
mechanism of a free and open market
and a national market system, and, in
general, protecting investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that this
change 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
changes will impair the ability of
Members or competing venues to
maintain their competitive standing in
the financial markets. The Exchange
believes that its proposal to pass
through the rates that BATS Trading
E:\FR\FM\24DEN1.SGM
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Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
would be subject to for orders routing to
BYX, EDGA, and EDGX using the ALLB
routing strategy to Members would
increase intermarket competition
because it offers customers an
alternative means to route orders to
those venues. In addition, the proposed
pricing would not provide any
advantage to Users when routing to
BYX, EDGA, and EDGX as compared to
other methods of routing or connectivity
available to Users by the Exchange
because the proposed rates are identical
to what the Member would be subject to
if it routed to those venues directly. The
Exchange believes that its proposal
would not burden intramarket
competition because the proposed rate
would apply uniformly to all Members.
The Exchange believes that the
changes to the Fee Codes and
Associated Fees table of the Fee
Schedule would not affect intermarket
nor intramarket competition because
none of these changes are designed to
amend any fee or alter the manner in
which the Exchange assesses fees or
calculates rebates. These changes are
intended to provide greater clarity to
Members with regard to how the
Exchange access fees and calculates
rebates.
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
unsolicited written comments from
Members or other interested parties.
mstockstill on DSK4VPTVN1PROD with NOTICES
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 15 and paragraph (f) of Rule
19b–4 thereunder.16 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–76690; File No. SR–
NYSEARCA–2015–121]
• 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–2015–114 on the subject line.
December 18, 2015.
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–2015–114. 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 will also 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–
2015–114 and should be submitted on
or before January 14, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
[FR Doc. 2015–32384 Filed 12–23–15; 8:45 am]
19:26 Dec 23, 2015
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 1.1(s) to provide for price collar
thresholds for Trading Halt Auctions.
The text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.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
self-regulatory organization 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 those 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 the
Statutory Basis for, the Proposed Rule
Change
The Exchange proposes to amend
Rule 1.1(s) to provide for price collar
1 15
15 15
VerDate Sep<11>2014
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
7, 2015, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
1. Purpose
Robert W. Errett,
Deputy Secretary.
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f).
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To Amend Rule 1.1(s) To
Provide for Price Collar Thresholds for
Trading Halt Auctions
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
17 17
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PO 00000
CFR 200.30–3(a)(12).
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E:\FR\FM\24DEN1.SGM
24DEN1
Agencies
[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)]
[Notices]
[Pages 80428-80430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32384]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76688; File No. SR-BATS-2015-114]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
ALLB Routing and Other Fees for Use of BATS Exchange, Inc.
December 18, 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 December 15, 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, 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) (``Fee Schedule'') to adopt fees for the recently
adopted ALLB routing strategy. The Exchange also proposes to amend the
Fee Codes and Associated Fees table of the Fee Schedule to indicate the
amount of the fees and rebates as five decimal points, rather than four
decimal points, by adding a zero to the end of each fee and rebate.
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange. A
Member will have the status of a ``member'' of the Exchange as that
term is defined in Section 3(a)(3) of the Act.'' 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.
[[Page 80429]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
ALLB Routing Fees
The Exchange proposes to adopt fees for the ALLB routing strategy.
In sum, ALLB is a routing option under which the order checks the
System \6\ for available shares and is then sent to the BATS Y-
Exchange, Inc. (``BYX''), EDGA Exchange, Inc. (``EDGA''), and the EDGX
Exchange, Inc. (``EDGX'' collectively with the Exchange, BYX, and EDGA,
the ``BGM Affiliated Exchanges'').\7\ Specifically, an order subject to
the ALLB routing option would execute first against liquidity on the
BATS Book.\8\ Any remainder would then be routed to BYX, EDGA, and/or
EDGX in accordance with the System routing table.\9\
---------------------------------------------------------------------------
\6\ The term ``System'' is defined as ``the electronic
communications and trading facility designated by the Board through
which securities orders of Users are consolidated for ranking,
execution and, when applicable, routing away.'' See Exchange Rule
1.5(aa).
\7\ See Exchange Rule 11.13(b)(3)(O). See also Securities
Exchange Act Release No. 76455 (November 17, 2015), 80 FR 73009
(November 23, 2015) (SR-BATS-2015-97).
\8\ The term ``BATS Book'' is defined as ``the System's
electronic file of orders.'' See Exchange Rule 1.5(e).
\9\ The term ``System routing table'' refers to the proprietary
process for determining the specific trading venues to which the
System routes orders and the order in which it routes them. See
Exchange Rule 11.13(b)(3).
---------------------------------------------------------------------------
The Exchange now proposes to adopt three new fee codes, AA, AX, and
AY and related fees for the ALLB routing strategy. These fee codes
would enable the Exchange to pass through the rate that BATS Trading,
Inc. (``BATS Trading''), the Exchange's affiliated routing broker-
dealer, would be charged for routing orders to BYX, EDGA, and EDGX.\10\
Each of the proposed fee codes are described as follows:
---------------------------------------------------------------------------
\10\ Orders using the ALLB routing option that execute on the
Exchange would be subject to the Exchange's standard fees and
rebates, unless the Member achieves a volume tiered reduced fee or
enhanced rebate.
---------------------------------------------------------------------------
Fee Code AA. Order routed to EDGA using the ALLB routing
strategy would yield fee code AA and receive a rebate of $0.00200 per
share in securities priced at or above $1.00. Under proposed footnote
15, orders yielding fee code AA in securities priced below $1.00 would
be charged no fee nor would they receive a rebate.
Fee Code AX. Order routed to EDGX using the ALLB routing
strategy would yield fee code AY and be charged a fee of $0.00290 per
share in securities priced at or above $1.00. Under proposed footnote
16, orders yielding fee code AX in securities priced below $1.00 would
be charged a fee of 0.30% of the transaction's dollar value.
Fee Code AY. Order routed to BYX using the ALLB routing
strategy would yield fee code AY and receive a rebate of $0.00150 per
share in securities priced at or above $1.00. Under proposed footnote
17, orders yielding fee code AY in securities priced below $1.00 would
be charged a fee of 0.10% of the transaction's dollar value.
BATS Trading will pass through the above rates to the Exchange and
the Exchange, in turn, will pass through that exact rate to its
Members. The proposed rates would enable the Exchange to equitably
allocate its costs among all Members utilizing the ALLB routing
strategy.
Fee Codes and Associated Fees Table
The Exchange also proposes to amend the Fee Codes and Associated
Fees table to indicate the amount of the fees and rebates as five
decimal points, rather than four decimal points, by adding a zero to
the end of each fee and rebate, to reflect the order pricing format on
the Exchange's Web site.\11\ The Exchange notes that none of these
changes amend any fee or rebate, nor do they alter the manner in which
it assesses fees or calculates rebates.
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\11\ The Exchange notes that fee code D already indicates its
related fee as five decimal points.
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Implementation Date
The Exchange proposes to implement this amendment to its Fee
Schedule on January 4, 2016, but the proposed fee codes and their
associated rates will not be available until January 8, 2016, the date
upon which it announced to Members that it would implement the ALLB
routing strategy.\12\
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\12\ See BATS Announces ALLB Routing Option, available at https://cdn.batstrading.com/resources/release_notes/2015/BATS-ALL-BATS-Routing-Strategy-Release-Schedule-Updated.pdf. The Exchange notes
that the Fee Schedule's date was amended to January 4, 2016 in file
no. SR-BATS-2015-115 (December 8, 2015).
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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,\13\ in general, and
furthers the objectives of Section 6(b)(4),\14\ 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 believes that its proposed rates represent an
equitable allocation of reasonable dues, fees, and other charges among
Members and other persons using its facilities because the Exchange
does not levy additional fees or offer additional rebates for orders
that it routes to BYX, EDGA, and EDGX through BATS Trading. The
Exchange believes that its proposed pass through rate for orders that
yield fee codes AA, AX or AY is equitable and reasonable because it
accounts for the rate that BATS Trading would be subject to for orders
it routes and are executed on BYX, EDGA, and EDGX. In addition, the
proposal allows the Exchange to pass-through to its Members the rate
for orders that are routed to BYX, EDGA, and EDGX using the ALLB
routing strategy. Furthermore, the Exchange notes that routing through
BATS Trading is voluntary. Lastly, the Exchange also believes that the
proposed amendment is non-discriminatory because it applies uniformly
to all Members.
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\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the changes to the Fee Codes and
Associated Fees table of the Fee Schedule are reasonable because they
are designed to provide greater transparency to Members with regard to
how the Exchange assesses fees and calculates rebates. The Exchange
notes that none of the proposed changes are designed to amend any fee,
nor alter the manner in which it assesses fees or calculates rebates.
These changes to the Fee Schedule are intended to make the Fee Schedule
clearer and less confusing for investors and eliminate potential
investor confusion, thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe that this change 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 changes will impair the ability of
Members or competing venues to maintain their competitive standing in
the financial markets. The Exchange believes that its proposal to pass
through the rates that BATS Trading
[[Page 80430]]
would be subject to for orders routing to BYX, EDGA, and EDGX using the
ALLB routing strategy to Members would increase intermarket competition
because it offers customers an alternative means to route orders to
those venues. In addition, the proposed pricing would not provide any
advantage to Users when routing to BYX, EDGA, and EDGX as compared to
other methods of routing or connectivity available to Users by the
Exchange because the proposed rates are identical to what the Member
would be subject to if it routed to those venues directly. The Exchange
believes that its proposal would not burden intramarket competition
because the proposed rate would apply uniformly to all Members.
The Exchange believes that the changes to the Fee Codes and
Associated Fees table of the Fee Schedule would not affect intermarket
nor intramarket competition because none of these changes are designed
to amend any fee or alter the manner in which the Exchange assesses
fees or calculates rebates. These changes are intended to provide
greater clarity to Members with regard to how the Exchange access fees
and calculates rebates.
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 unsolicited 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 \15\ and paragraph (f) of Rule 19b-4
thereunder.\16\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-BATS-2015-114 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-2015-114. 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 will also 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-2015-114 and should be
submitted on or before January 14, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-32384 Filed 12-23-15; 8:45 am]
BILLING CODE 8011-01-P