Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.1, Definitions, Relating to the Operation of the Attribution Feature of EDGX Options, 6552-6554 [2016-02336]
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6552
Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
provided for in Rule 15b1–1 (17 CFR
240.15b1–1) and Form BD (17 CFR
249.501) 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.
Form BD is the application form used
by firms to apply to the Commission for
registration as a broker-dealer, as
required by Rule 15b1–1. Form BD also
is used by firms other than banks and
registered broker-dealers to apply to the
Commission for registration as a
municipal securities dealer or a
government securities broker-dealer. In
addition, Form BD is used to change
information contained in a previous
Form BD filing that becomes inaccurate.
The total industry-wide annual time
burden imposed by Form BD is
approximately 4,999 hours, based on
approximately 13,732 responses (193
initial filings + 13,539 amendments).
Each application filed on Form BD
requires approximately 2.75 hours to
complete and each amended Form BD
requires approximately 20 minutes to
complete. (193 × 2.75 hours = 531
hours; 13,539 × 0.33 hours = 4,468
hours; 531 hours + 4,468 hours = 4,999
hours.) The staff believes that a brokerdealer would have a Compliance
Manager complete and file both
applications and amendments on Form
BD at a cost of $279/hour.
Consequently, the staff estimates that
the total internal cost of compliance
associated with the annual time burden
is approximately $1,394,721 per year
($279 × 4999). There is no external cost
burden associated with Rule 15b1–1 and
Form BD.
The Commission uses the information
disclosed by applicants in Form BD: (1)
To determine whether the applicant
meets the standards for registration set
forth in the provisions of the Exchange
Act; (2) to develop a central information
resource where members of the public
may obtain relevant, up-to-date
information about broker-dealers,
municipal securities dealers, and
government securities broker-dealers,
and where the Commission, other
regulators, and SROs may obtain
information for investigatory purposes
in connection with securities litigation;
and (3) to develop statistical
information about broker-dealers,
municipal securities dealers, and
government securities broker-dealers.
Without the information disclosed in
Form BD, the Commission could not
effectively implement policy objectives
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of the Exchange Act with respect to its
investor protection function.
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 shall have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the proposed
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: February 2, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–02340 Filed 2–5–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77036; File No. SR–EDGX–
2016–01]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rule 21.1, Definitions,
Relating to the Operation of the
Attribution Feature of EDGX Options
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 Substance of
the Proposed Rule Change
The Exchange filed a proposal to
authorize the Exchange’s equity options
platform (‘‘EDGX Options’’) to make a
modification to Rule 21.1 (Definitions)
in connection with the operation of the
attribution feature of EDGX Options, as
described below. The Exchange has
designated this proposal as noncontroversial and provided the
Commission with the notice required by
Rule 19b–4(f)(6)(iii) under the Act.5
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
February 2, 2016.
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 January
21, 2016, 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
The Exchange is proposing to modify
Rule 21.1, Definitions, which sets forth
the various definitions applicable to the
operation of the EDGX Options
platform, including order types and
order type modifiers accepted by EDGX
Options. As set forth in Rule 21.1, an
order can be attributed on EDGX
Options, meaning that such order is
displayed with not only a price and size
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
5 17 CFR 240.19b–4(f)(6)(iii).
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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but also a User’s 6 market participant
identifier, or MPID (such order an
‘‘Attributable Order’’). Alternatively, a
User may also submit an order that is
designated for display on an anonymous
basis, a ‘‘Non-Attributable Order.’’ Rule
21.1(c) also states that all orders shall be
treated as Attributable Orders unless a
User has entered instructions to treat
such orders as Non-Attributable Orders.
In addition to attribution, as discussed
in Rule 21.1, Exchange Rule 21.15(c)
states that the Exchange will indicate on
OPRA when there is Customer interest
on EDGX Options and will identify
Customer orders and trades as such on
the Exchange’s proprietary data feeds.
While the Exchange does not propose
to modify the identification of Customer
interest, orders or trades to either OPRA
or on Exchange proprietary data feeds,
the Exchange proposes to eliminate the
ability for a Customer order to also be
an Attributable Order. In other words,
though Customer interest, orders and
trades would still be identified as such
through applicable data feeds, only nonCustomer orders could be identified on
Exchange data feeds with attribution to
a specified MPID. The Exchange
believes that limiting the use of
Attributable Orders to non-Customer
orders is reasonable because such
functionality was primarily intended for
Market Makers and other professional
participants that typically provide
liquidity to indicate their presence on
EDGX Options with attribution to their
MPID.
The Exchange notes that it does not
propose the change set forth above due
to concerns with respect to Customer
orders being entered as Attributable
Orders but rather due to current system
limitations in supporting both the
attribution feature and the identifcation
[sic] of Customer orders as such. On
balance, the Exchange believes that the
identification of orders as Customer
orders is more consistent with the
operation of other options exchanges
and important to the Exchange’s pro rata
priority model than is the attribution of
a particular Customer order to a specific
MPID.
The Exchange also notes that the
equities platform of the Nasdaq Stock
Market LLC (‘‘Nasdaq’’) also limits the
availability of attribution to certain
market participants, including market
makers.7
6 The term User is defined in Rule 1.5(ee) as ‘‘any
Member or Sponsored Participant who is
authorized to obtain access to the System pursuant
to Rule 11.3.’’
7 See Nasdaq Rule 4756(b), which permits Nasdaq
Market Makers and Nasdaq ECNs to attribute their
quotations on Nasdaq. See also Nasdaq Rule
4702(b)(2)(A), which limits the availability of
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17:51 Feb 05, 2016
Jkt 238001
2. Statutory Basis
The Exchange believes that its
proposal 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.8
In particular, the proposal is consistent
with Section 6(b)(5) of the Act 9 because
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The proposed rule change will allow
the Exchange to continue to accept
Attributable Orders from non-Customers
while also designating Customer orders
as such on applicable data feeds. As set
forth above, the Exchange believes that
non-Customers quoting and providing
liquidity are the most likely users of the
Attributable Order feature and that
restricting Customer orders from the use
of the feature is appropriate given the
separate identification of Customer
orders on applicable data feeds. As set
forth above, at least one other exchange
has similarly limited attribution to
certain professional market
participants.10
(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. The
proposed rule change is not designed to
address any competitive issues but
rather to make a modification to the
Exchange’s attribution offering to ensure
that the Exchange’s System and rules
are consistent and that the most
important features can be offered to
Users in their varying capacities. As
noted above, at least one other exchange
has similarly limited attribution to
certain professional market
participants.11
Nasdaq ‘‘Price to Display Orders’’ to Nasdaq Market
Makers and further states that all Price to Display
Orders are Attributable Orders.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 See supra note 7.
11 Id.
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6553
(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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the Exchange may continue to permit
non-Customers to attribute their orders
and to allow the Exchange to label
orders as Customer Orders. The
Commission believes that the proposal
will update the rules of the Exchange to
accurately reflect how the System
operates with respect to Attributable
Orders thereby avoiding confusion by
market participants. Based on the
foregoing, the Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.15 The
12 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s 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. The Exchange has satisfied this
requirement.
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
13 17
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08FEN1
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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices
Commission hereby grants the
Exchange’s request and designates the
proposal operative upon filing.
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:
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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–
EDGX–2016–01 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–EDGX–2016–01. 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
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:51 Feb 05, 2016
Jkt 238001
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–EDGX–
2016–01 and should be submitted on or
beforeFebruary 29, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–02336 Filed 2–5–16; 8:45 am]
BILLING CODE 8011–01–P
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.
Extension:
Rule 605 of Regulation NMS; SEC File No
270–488, OMB Control No. 3235–0542
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 605 of Regulation
NMS (‘‘Rule 605’’) (17 CFR 242.605),1
under the Securities Exchange Act of
1934 (15 U.S.C. 78a, et seq.) (‘‘Exchange
Act’’). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 605, formerly known as, Rule
11Ac1–5, requires market centers to
make available to the public monthly
order execution reports in electronic
form. The Commission believes that
many market centers retain most, if not
all, of the underlying raw data necessary
to generate these reports in electronic
format. Once the necessary data is
collected, market centers could either
16 17
CFR 200.30–3(a)(12).
NMS, adopted by the Commission in
June 2005, redesignated the national market system
rules previously adopted under Section 11A of the
Exchange Act. Rule 11Ac1–5 under the Exchange
Act was redesignated Rule 605 of Regulation NMS.
No substantive amendments were made to Rule 605
of Regulation NMS. See Securities Exchange Act
Release No. 51808 (June 9, 2005), 70 FR 37496 (June
29, 2005).
1 Regulation
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
program their systems to generate the
statistics and reports, or transfer the
data to a service provider (such as an
independent company in the business of
preparing such reports or a selfregulatory organization) that would
generate the statistics and reports.
The collection of information
obligations of Rule 605 apply to all
market centers that receive covered
orders in national market system
securities. The Commission estimates
that approximately 132 market centers
are subject to the collection of
information obligations of Rule 605.
Each of these respondents is required to
respond to the collection of information
on a monthly basis.
The Commission staff estimates that,
on average, Rule 605 causes respondents
to spend 6 hours per month to collect
the data necessary to generate the
reports, or 72 hours per year. With an
estimated 132 market centers subject to
Rule 605, the total data collection time
burden to comply with the monthly
reporting requirement is estimated to be
9,504 hours per year.
Based on discussions with industry
sources, the Commission staff estimates
that an individual market center could
retain a service provider to prepare a
monthly report using the data collected
for approximately $2,978 per month.
This per-respondent estimate is based
on the rate that a market center could
expect to obtain if it negotiated on an
individual basis. Based on the $2,978
estimate, the monthly cost to the 132
market centers to retain service
providers to prepare reports would be
$393,096, or an annual cost of
approximately $4,717,152.
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 C. Dyson, Director/Chief
E:\FR\FM\08FEN1.SGM
08FEN1
Agencies
[Federal Register Volume 81, Number 25 (Monday, February 8, 2016)]
[Notices]
[Pages 6552-6554]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02336]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77036; File No. SR-EDGX-2016-01]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
21.1, Definitions, Relating to the Operation of the Attribution Feature
of EDGX Options
February 2, 2016.
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 January 21, 2016, 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 ``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 Substance
of the Proposed Rule Change
The Exchange filed a proposal to authorize the Exchange's equity
options platform (``EDGX Options'') to make a modification to Rule 21.1
(Definitions) in connection with the operation of the attribution
feature of EDGX Options, as described below. The Exchange has
designated this proposal as non-controversial and provided the
Commission with the notice required by Rule 19b-4(f)(6)(iii) under the
Act.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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 modify Rule 21.1, Definitions, which
sets forth the various definitions applicable to the operation of the
EDGX Options platform, including order types and order type modifiers
accepted by EDGX Options. As set forth in Rule 21.1, an order can be
attributed on EDGX Options, meaning that such order is displayed with
not only a price and size
[[Page 6553]]
but also a User's \6\ market participant identifier, or MPID (such
order an ``Attributable Order''). Alternatively, a User may also submit
an order that is designated for display on an anonymous basis, a ``Non-
Attributable Order.'' Rule 21.1(c) also states that all orders shall be
treated as Attributable Orders unless a User has entered instructions
to treat such orders as Non-Attributable Orders. In addition to
attribution, as discussed in Rule 21.1, Exchange Rule 21.15(c) states
that the Exchange will indicate on OPRA when there is Customer interest
on EDGX Options and will identify Customer orders and trades as such on
the Exchange's proprietary data feeds.
---------------------------------------------------------------------------
\6\ The term User is defined in Rule 1.5(ee) as ``any Member or
Sponsored Participant who is authorized to obtain access to the
System pursuant to Rule 11.3.''
---------------------------------------------------------------------------
While the Exchange does not propose to modify the identification of
Customer interest, orders or trades to either OPRA or on Exchange
proprietary data feeds, the Exchange proposes to eliminate the ability
for a Customer order to also be an Attributable Order. In other words,
though Customer interest, orders and trades would still be identified
as such through applicable data feeds, only non-Customer orders could
be identified on Exchange data feeds with attribution to a specified
MPID. The Exchange believes that limiting the use of Attributable
Orders to non-Customer orders is reasonable because such functionality
was primarily intended for Market Makers and other professional
participants that typically provide liquidity to indicate their
presence on EDGX Options with attribution to their MPID.
The Exchange notes that it does not propose the change set forth
above due to concerns with respect to Customer orders being entered as
Attributable Orders but rather due to current system limitations in
supporting both the attribution feature and the identifcation [sic] of
Customer orders as such. On balance, the Exchange believes that the
identification of orders as Customer orders is more consistent with the
operation of other options exchanges and important to the Exchange's
pro rata priority model than is the attribution of a particular
Customer order to a specific MPID.
The Exchange also notes that the equities platform of the Nasdaq
Stock Market LLC (``Nasdaq'') also limits the availability of
attribution to certain market participants, including market makers.\7\
---------------------------------------------------------------------------
\7\ See Nasdaq Rule 4756(b), which permits Nasdaq Market Makers
and Nasdaq ECNs to attribute their quotations on Nasdaq. See also
Nasdaq Rule 4702(b)(2)(A), which limits the availability of Nasdaq
``Price to Display Orders'' to Nasdaq Market Makers and further
states that all Price to Display Orders are Attributable Orders.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal 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.\8\ In particular, the
proposal is consistent with Section 6(b)(5) of the Act \9\ because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to, and perfect the
mechanism of, a free and open market and a national market system and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed rule change will allow the Exchange to continue to
accept Attributable Orders from non-Customers while also designating
Customer orders as such on applicable data feeds. As set forth above,
the Exchange believes that non-Customers quoting and providing
liquidity are the most likely users of the Attributable Order feature
and that restricting Customer orders from the use of the feature is
appropriate given the separate identification of Customer orders on
applicable data feeds. As set forth above, at least one other exchange
has similarly limited attribution to certain professional market
participants.\10\
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\10\ See supra note 7.
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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. The proposed rule change is
not designed to address any competitive issues but rather to make a
modification to the Exchange's attribution offering to ensure that the
Exchange's System and rules are consistent and that the most important
features can be offered to Users in their varying capacities. As noted
above, at least one other exchange has similarly limited attribution to
certain professional market participants.\11\
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\11\ Id.
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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 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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6)
thereunder.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's 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. The Exchange has satisfied this
requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
30-day operative delay so that the Exchange may continue to permit non-
Customers to attribute their orders and to allow the Exchange to label
orders as Customer Orders. The Commission believes that the proposal
will update the rules of the Exchange to accurately reflect how the
System operates with respect to Attributable Orders thereby avoiding
confusion by market participants. Based on the foregoing, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\15\ The
[[Page 6554]]
Commission hereby grants the Exchange's request and designates the
proposal operative upon filing.
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\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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 No. SR-EDGX-2016-01 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-EDGX-2016-01. 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-EDGX-2016-01 and should be
submitted on or before February 29, 2016.
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\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-02336 Filed 2-5-16; 8:45 am]
BILLING CODE 8011-01-P