Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees as They Apply to the Equity Options Platform, 11872-11874 [2016-04906]
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11872
Federal Register / Vol. 81, No. 44 / Monday, March 7, 2016 / Notices
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–
NYSEARCA–2016–36 and should be
submitted on or before March 28, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–04911 Filed 3–4–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77266; File No. SR–BX–
2016–008]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of
Withdrawal of Proposed Rule Change
To Adopt Limit Order Protection and
Market Order Protection
asabaliauskas on DSK3SPTVN1PROD with NOTICES
March 1, 2016.
On January 21, 2016, NASDAQ OMX
BX, Inc. (the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’), pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 1 and Rule 19b–
4 thereunder,2 a proposed rule change
to adopt a Limit Order Protection and a
Market Order Protection feature for
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18:37 Mar 04, 2016
Jkt 238001
members accessing the Exchange. The
proposed rule change was published for
comment in the Federal Register on
February 5, 2016.3 The Commission
received no comment letters on the
proposal. On February 26, 2016, the
Exchange withdrew the proposed rule
change.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–04908 Filed 3–4–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77267; File No. SR–
NASDAQ–2016–005]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Withdrawal of Proposed Rule Change
To Adopt Limit Order Protection and
Market Order Protection
March 1, 2016.
On January 12, 2016, The Nasdaq
Stock Market LLC (the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to adopt a Limit Order
Protection and a Market Order
Protection feature for members
accessing the Exchange. The proposed
rule change was published for comment
in the Federal Register on January 27,
2016.3 The Commission received no
comment letters on the proposal. On
February 26, 2016, the Exchange
withdrew the proposed rule change.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–04909 Filed 3–4–16; 8:45 am]
BILLING CODE 8011–01–P
3 See Securities Exchange Act Release No. 77006
(February 1, 2016), 81 FR 6308.
4 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 76956
(January 21, 2016), 81 FR 4684.
4 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77256; File No. SR–BATS–
2016–23]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Related to Fees
as They Apply to the Equity Options
Platform
March 1, 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 February
24, 2015, Bats BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) (f/k/a BATS
Exchange, Inc.) 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 Exchange Rules
15.1(a) and (c) (‘‘Fee Schedule’’).
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
2 17
E:\FR\FM\07MRN1.SGM
07MRN1
Federal Register / Vol. 81, No. 44 / Monday, March 7, 2016 / Notices
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
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1. Purpose
The Exchange’s current approach to
routing fees is to set forth in a simple
manner certain sub-categories of fees
that approximate the cost of routing to
other options exchanges based on the
cost of transaction fees assessed by each
venue as well as costs to the Exchange
for routing (i.e., clearing fees,
connectivity and other infrastructure
costs, membership fees, etc.)
(collectively, ‘‘Routing Costs’’). The
Exchange then monitors the fees
charged as compared to the costs of its
routing services and adjusts its routing
fees and/or sub-categories to ensure that
the Exchange’s fees do indeed result in
a rough approximation of overall
Routing Costs, and are not significantly
higher or lower in any area. The
Exchange proposes to adopt a routing
fee in connection with the launch of the
new options exchange, ISE Mercury,
LLC (‘‘ISE Mercury’’) consistent with
this approach.
The Exchange proposes to adopt fee
code YC which would be appended to
orders routed to ISE Mercury beginning
February 16, 2016, which is the same
date that ISE Mercury initiated trading.6
Orders that yield fee code YC would be
charged a fee of $0.99 per contract.
Proposed fee code YC would be applied
to all orders routed to ISE Mercury
regardless of the capacity of the order 7
or whether the order is in a Penny Pilot
Security 8 or not.
The Exchange anticipates that the
proposed fee structure will approximate
the cost of routing orders to ISE
Mercury. The Exchange also notes that
the proposed fee for fee code YC is
6 See SEC Approves ISE’s Form 1 Application for
Third Options Exchange, dated February 1, 2016,
available at https://www.ise.com/press-room/pressreleases/2016/february/ise-mercury-to-launch-onfebruary-16-2016/. The Exchange initially filed the
proposed fee change on February 16, 2016 (SR–
BATS–2016–19). On February 18, 2016, the
Exchange withdrew SR–BATS–2016–19 and
submitted SR–BATS–2016–20. On February 24,
2016, the Exchange withdrew SR–BATS–2016–20
and submitted this filing.
7 Order capacities include Customer, Professional,
Firm, Broker-Dealer, Joint Back Office, Market
Maker, and Away Market Maker. As defined in the
Exchange’s Fee Schedule.
8 As defined in the Exchange’s Fee Schedule.
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18:37 Mar 04, 2016
Jkt 238001
higher than the fees charged by ISE
Mercury and is designed to approximate
Routing Costs based on the highest rate
ISE Mercury charges.9 As it has done
historically in connection with the fee
structure for routing to other options
exchanges, the Exchange is proposing
the charge set forth above to maintain a
simple Fee Schedule with respect to
routing fees that approximates the total
cost of routing, including Routing Costs.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,10
in general, and furthers the objectives of
Section 6(b)(4),11 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. As
explained above, the Exchange generally
attempts to approximate the cost of
routing to other options exchanges,
including other applicable costs to the
Exchange for routing. While the
proposed fee for fee code YC is higher
than the fees charged by ISE Mercury,
the Exchange believes it is reasonable as
it takes into account Routing Costs
based on the highest rate charged by ISE
Mercury. The Exchange believes that a
pricing model based on approximate
Routing Costs is a reasonable, fair and
equitable approach to pricing.
Specifically, the Exchange believes that
its proposal to adopt routing fees to ISE
Mercury is fair, equitable and
reasonable because the fees are
generally an approximation of the
anticipated cost to the Exchange for
routing orders to ISE Mercury. The
Exchange notes that routing through the
Exchange is voluntary. The Exchange
also believes that the proposed fee
structure for orders routed to and
executed at ISE Mercury is fair and
equitable and not unreasonably
discriminatory in that it applies equally
to all Members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
These proposed rule changes do 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 any
of these changes represent a significant
9 ISE Mercury’s standard rates range from a rebate
of $0.18 to a fee of $0.90 per contract. See ISE
Mercury Fee Notice dated February 5, 2016
available at https://www.ise.com/assets/mercury/
documents/OptionsExchange/legal/fee/2016/ISE
%20Mercury%20Fee%20Announcement$20160205
.pdf.
10 15 U.S.C. 78f.
11 15 U.S.C. 78f(b)(4).
PO 00000
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11873
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
does not believe that its proposed
pricing for routing to ISE Mercury
burdens competition, as such rates are
intended to approximate the cost of
routing to ISE Mercury. The Exchange
notes that it operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee levels to be excessive or providers of
routing services if they deem routing fee
levels to be excessive. The Exchange
believes that its proposal would not
burden intramarket competition because
the proposed rate would apply
uniformly to all Members.
(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 12 and paragraph (f) of Rule
19b–4 thereunder.13 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:
12 15
13 17
E:\FR\FM\07MRN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
07MRN1
11874
Federal Register / Vol. 81, No. 44 / Monday, March 7, 2016 / 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 Number SR–
BATS–2016–23 on the subject line.
Paper Comments
[Public Notice: 9462]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Global
by Design: Chinese Ceramics From the
R. Albuquerque Collection’’ Exhibition
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236–3 of August 28, 2000 (and, as
appropriate, Delegation of Authority No.
257–1 of December 11, 2015), I hereby
determine that the objects to be
included in the exhibition ‘‘Global by
Design: Chinese Ceramics from the R.
Albuquerque Collection,’’ imported
from abroad for temporary exhibition
within the United States, are of cultural
significance. The objects are imported
pursuant to a loan agreement with the
foreign owner or custodian. I also
determine that the exhibition or display
of the exhibit objects at The
Metropolitan Museum of Art, New York,
New York, from on or about April 25,
2016, until on or about August 7, 2016,
and at possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the imported objects, contact the Office
of Public Diplomacy and Public Affairs
in the Office of the Legal Adviser, U.S.
Department of State (telephone: 202–
632–6471; email: section2459@
state.gov). The mailing address is U.S.
Department of State, L/PD, SA–5, Suite
5H03, Washington, DC 20522–0505.
SUMMARY:
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BATS–2016–23. 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 Number SR–BATS–
2016–23 and should be submitted on or
before March 28, 2016.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Notice of decision instituting a
proceeding to determine the railroad
industry’s 2015 cost of capital.
ACTION:
DEPARTMENT OF STATE
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–04906 Filed 3–4–16; 8:45 am]
Dated: March 1, 2016.
Mark Taplin,
Deputy Assistant Secretary for Policy, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2016–05128 Filed 3–4–16; 8:45 am]
BILLING CODE 4710–05–P
SURFACE TRANSPORTATION BOARD
[Docket No. EP 558 (Sub-No. 19)]
Railroad Cost of Capital—2015
AGENCY:
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:37 Mar 04, 2016
Jkt 238001
Notices of intent to participate
are due by March 30, 2016. Statements
of the railroads are due by April 20,
2016. Statements of other interested
persons are due by May 11, 2016.
Rebuttal statements by the railroads are
due by June 1, 2016.
DATES:
Comments may be
submitted either via the Board’s e-filing
system or in the traditional paper
format. Any person using e-filing should
comply with the instructions at the EFILING link on the Board’s Web site, at
https://www.stb.dot.gov. Any person
submitting a filing in the traditional
paper format should send an original
and 10 copies to: Surface Transportation
Board, Attn: Docket No. EP 558 (SubNo. 19), 395 E Street SW., Washington,
DC 20423–0001.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Pedro Ramirez at (202) 245–0333.
Assistance for the hearing impaired is
available through the Federal
Information Relay Service (FIRS) at
(800) 877–8339.
The
Board’s decision is posted on the
Board’s Web site, https://
www.stb.dot.gov. Copies of the decision
may be purchased by contacting the
Board’s Office of Public Assistance,
Governmental Affairs, and Compliance
at (202) 245–0238. Assistance for the
hearing impaired is available through
FIRS at (800) 877–8339.
SUPPLEMENTARY INFORMATION:
Authority: 49 U.S.C. 10704(a).
BILLING CODE 8011–01–P
14 17
The Board is instituting a
proceeding to determine the railroad
industry’s cost of capital for 2015. The
decision solicits comments on the
following issues: The railroads’ 2015
current cost of debt capital; the
railroads’ 2015 current cost of preferred
equity capital (if any); the railroads’
2015 cost of common equity capital; and
the 2015 capital structure mix of the
railroad industry on a market value
basis. Comments should focus on the
various cost of capital components
listed above using the same
methodology followed in Railroad Cost
of Capital—2014, EP 558 (Sub-No. 18)
(STB served Aug. 7, 2015).
SUMMARY:
PO 00000
Surface Transportation Board.
Frm 00137
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Decided: March 1, 2016.
By the Board, Chairman Elliott, Vice
Chairman Miller, and Commissioner
Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2016–04967 Filed 3–4–16; 8:45 am]
BILLING CODE 4915–01–P
E:\FR\FM\07MRN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 44 (Monday, March 7, 2016)]
[Notices]
[Pages 11872-11874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04906]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77256; File No. SR-BATS-2016-23]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees as They Apply to the Equity Options Platform
March 1, 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 February 24, 2015, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') (f/k/a BATS Exchange, Inc.) 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 Exchange
Rules 15.1(a) and (c) (``Fee Schedule'').
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the
[[Page 11873]]
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's current approach to routing fees is to set forth in
a simple manner certain sub-categories of fees that approximate the
cost of routing to other options exchanges based on the cost of
transaction fees assessed by each venue as well as costs to the
Exchange for routing (i.e., clearing fees, connectivity and other
infrastructure costs, membership fees, etc.) (collectively, ``Routing
Costs''). The Exchange then monitors the fees charged as compared to
the costs of its routing services and adjusts its routing fees and/or
sub-categories to ensure that the Exchange's fees do indeed result in a
rough approximation of overall Routing Costs, and are not significantly
higher or lower in any area. The Exchange proposes to adopt a routing
fee in connection with the launch of the new options exchange, ISE
Mercury, LLC (``ISE Mercury'') consistent with this approach.
The Exchange proposes to adopt fee code YC which would be appended
to orders routed to ISE Mercury beginning February 16, 2016, which is
the same date that ISE Mercury initiated trading.\6\ Orders that yield
fee code YC would be charged a fee of $0.99 per contract. Proposed fee
code YC would be applied to all orders routed to ISE Mercury regardless
of the capacity of the order \7\ or whether the order is in a Penny
Pilot Security \8\ or not.
---------------------------------------------------------------------------
\6\ See SEC Approves ISE's Form 1 Application for Third Options
Exchange, dated February 1, 2016, available at https://www.ise.com/press-room/press-releases/2016/february/ise-mercury-to-launch-on-february-16-2016/. The Exchange initially filed the proposed fee
change on February 16, 2016 (SR-BATS-2016-19). On February 18, 2016,
the Exchange withdrew SR-BATS-2016-19 and submitted SR-BATS-2016-20.
On February 24, 2016, the Exchange withdrew SR-BATS-2016-20 and
submitted this filing.
\7\ Order capacities include Customer, Professional, Firm,
Broker-Dealer, Joint Back Office, Market Maker, and Away Market
Maker. As defined in the Exchange's Fee Schedule.
\8\ As defined in the Exchange's Fee Schedule.
---------------------------------------------------------------------------
The Exchange anticipates that the proposed fee structure will
approximate the cost of routing orders to ISE Mercury. The Exchange
also notes that the proposed fee for fee code YC is higher than the
fees charged by ISE Mercury and is designed to approximate Routing
Costs based on the highest rate ISE Mercury charges.\9\ As it has done
historically in connection with the fee structure for routing to other
options exchanges, the Exchange is proposing the charge set forth above
to maintain a simple Fee Schedule with respect to routing fees that
approximates the total cost of routing, including Routing Costs.
---------------------------------------------------------------------------
\9\ ISE Mercury's standard rates range from a rebate of $0.18 to
a fee of $0.90 per contract. See ISE Mercury Fee Notice dated
February 5, 2016 available at https://www.ise.com/assets/mercury/
documents/OptionsExchange/legal/fee/2016/
ISE%20Mercury%20Fee%20Announcement$20160205.pdf.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\10\ in general, and
furthers the objectives of Section 6(b)(4),\11\ 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. As explained above, the Exchange generally attempts to
approximate the cost of routing to other options exchanges, including
other applicable costs to the Exchange for routing. While the proposed
fee for fee code YC is higher than the fees charged by ISE Mercury, the
Exchange believes it is reasonable as it takes into account Routing
Costs based on the highest rate charged by ISE Mercury. The Exchange
believes that a pricing model based on approximate Routing Costs is a
reasonable, fair and equitable approach to pricing. Specifically, the
Exchange believes that its proposal to adopt routing fees to ISE
Mercury is fair, equitable and reasonable because the fees are
generally an approximation of the anticipated cost to the Exchange for
routing orders to ISE Mercury. The Exchange notes that routing through
the Exchange is voluntary. The Exchange also believes that the proposed
fee structure for orders routed to and executed at ISE Mercury is fair
and equitable and not unreasonably discriminatory in that it applies
equally to all Members.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(4).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
These proposed rule changes do 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 any of these changes
represent 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 does not believe that
its proposed pricing for routing to ISE Mercury burdens competition, as
such rates are intended to approximate the cost of routing to ISE
Mercury. The Exchange notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels to be excessive or providers
of routing services if they deem routing fee levels to be excessive.
The Exchange believes that its proposal would not burden intramarket
competition because the proposed rate would apply uniformly to all
Members.
(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 \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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:
[[Page 11874]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BATS-2016-23 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BATS-2016-23. 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 Number SR-BATS-2016-23 and should be
submitted on or before March 28, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-04906 Filed 3-4-16; 8:45 am]
BILLING CODE 8011-01-P
