Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules as Well as Certain Corporate Documents of the Exchange To Reflect a Legal Name Change by BATS Global Markets, Inc. and the Legal Names of Certain Subsidiaries, 12996-12998 [2016-05438]
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12996
Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2016–028 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–77307; File No. SR–BATS–
2016–25]
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, Station
Place, 100 F Street NE., Washington, DC
20549.
All submissions should refer to File
Number SR–NASDAQ–2016–028. 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 Nasdaq. 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–
NASDAQ–2016–028 and should be
submitted on or before April 1, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Robert W. Errett,
Deputy Secretary.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
[FR Doc. 2016–05432 Filed 3–10–16; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Rules as
Well as Certain Corporate Documents
of the Exchange To Reflect a Legal
Name Change by BATS Global
Markets, Inc. and the Legal Names of
Certain Subsidiaries
March 7, 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
26, 2016, Bats BZX Exchange, Inc.
f/k/a BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) 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 this proposal as one being
concerned solely with the
administration of the Exchange
pursuant to section 19(b)(3)(A)(iii) of the
Act 3 and Rule 19b–4(f)(3) thereunder,4
which renders the proposal 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 is proposing a rule
change to amend its rules as well as
certain corporate documents of the
Exchange to reflect a legal name change
by the Exchange’s ultimate parent
entity, BATS Global Markets, Inc. (the
‘‘Parent’’) to Bats Global Markets, Inc.,
and the legal names of certain of the
Parent’s subsidiaries. As a result of this
change, the Exchange also proposes to
amend its rules to change its name from
BATS Exchange, Inc. to Bats BZX
Exchange, Inc.
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(3).
2 17
24 17
CFR 200.30–3(a)(12).
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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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange, on behalf of its Parent,
recently filed to change the Parent’s
legal name from ‘‘BATS Global Markets,
Inc.’’ to ‘‘Bats Global Markets, Inc.’’ 5
For the purposes of consistency, certain
of the Parent’s subsidiaries have also
undertaken to change their legal names.
As a result, the Exchange also proposes
to change its name from BATS
Exchange, Inc. to Bats BZX Exchange,
Inc. throughout its rules and corporate
documents (collectively, with the other
legal name changes for the Parent and
certain of its subsidiaries, the ‘‘name
changes’’).6 Therefore, the Exchange
proposes to amend its: (i) Rulebook; (ii)
fee schedules applicable to its equity
and options platforms issued pursuant
to Exchange Rules 15.1(a) and (c) (‘‘Fee
Schedules’’); (iii) Certificate of
Incorporation (‘‘Certificate’’); and (iv)
Third Amended and Restated Bylaws of
the Exchange (‘‘Bylaws’’) (collectively,
the ‘‘Operative Documents’’) to reflect
the name change and to replace all
references to ‘‘BATS’’ with ‘‘Bats’’.
The Exchange proposes to replace all
references to BATS with Bats
throughout the Exchange’s Rulebook
and Fee Schedule. The Exchange
understands that its affiliated Exchanges
also intend to file similar proposed rule
changes with the Commission to amend
their exchange names.7 Therefore, the
5 See Securities Exchange Act Release No. 77155
(February 17, 2016) (SR–BATS–2016–10).
6 The Exchange initially filed the proposed fee
[sic] change on February 19, 2016 (SR–BATS–2016–
21). On February 26, 2016, the Exchange withdrew
that filing and submitted this filing.
7 The Exchange’s affiliates are EDGA Exchange,
Inc., BATS Y-Exchange, Inc. and EDGX Exchange,
Inc. The Exchange understands that proposed rule
changes are to be filed by each of its affiliates to
amend their names as follows: EDGA Exchange, Inc.
would be changed to Bats EDGA Exchange, Inc.,
BATS Y-Exchange, Inc. would be amended to Bats
E:\FR\FM\11MRN1.SGM
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asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Notices
Exchange proposes to amend the
following rules to reflect the name
changes, including the expected filings
by its affiliates to amend their names:
Rule 1.5 (Definitions), Rule 2.3 (Member
Eligibility), Rule 2.10 (Affiliation
Between Exchange and a Member), Rule
2.11 (BATS Trading, Inc. as Outbound
Router), Rule 2.12 (BATS Trading, Inc.
as Inbound Router), Rule 8.15
(Imposition of Fines for Minor
Violation(s) of Rules), Rule 11.1 (Hours
of Trading and Trading Days), Rule 11.8
(Obligations of Market Makers), Rule
11.9 (Orders and Modifiers), Rule 11.12
(Priority of Orders), Rule 11.13 (Order
Execution and Routing), Rule 11.14
(Trade Execution and Reporting), Rule
11.18 (Trading Halts Due to
Extraordinary Market Volatility), Rule
11.22 (Data Products), Rule 11.23
(Auctions), Rule 11.24 (Opening Process
for Non-BATS-Listed Securities), Rule
11.26 (Usage of Data Feeds), Rule 13.8
(BATS Connect), Rule 14.3 (General
Procedures and Prerequisites for Initial
and Continued Listing on the
Exchange), Rule 14.11 (Other
Securities), Rule 16.1 (Definitions), Rule
16.2 (Applicability), Rule 17.1 (Options
Participation), Rule 17.2 (Requirements
for Options Participation), Rule 17.4
(Good Standing For Options Members),
Rule 18.2 (Conduct and Compliance
with the Rules), Rule 18.4 (Prevention of
the Misuse of Material Nonpublic
Information), Rule 18.6 (Other
Restrictions on Members), Rule 18.7
(Position Limits), Rule 18.8 (Exemptions
from Position Limits), Rule 18.9
(Exercise Limits), Rule 18.11
(Liquidation Positions), Rule 18.12
(Other Restrictions on Options
Transactions and Exercises), Rule 18.14
Limit on Outstanding Uncovered Short
Positions), Rule 19.1 (Designation of
Securities), Rule 19.3 (Criteria for
Underlying Securities), Rule 19.4
(Withdrawal of Approval of Underlying
Securities), Rule 19.6 (Series of Options
Contracts Open for Trading), Rule 20.1
(Access to and Conduct on the BATS
Options Market), Rule 20.2
(Surveillance), Rule 20.3 (Trading
Halts), Rule 20.5 (Unusual Market
Conditions), Rule 20.6 (Nullification
and Adjustment of Options Transactions
including Obvious Errors), Rule 20.7
(Audit Trail), Rule 20.8 (Failure to Pay
Premium), Rule 21.1 (Definitions), Rule
21.2 (Days and Hours of Business), Rule
21.3 (Units of Trading), Rule 21.4
(Meaning of Premium Quotes and
Orders), Rule 21.5 (Minimum
Increments), Rule 21.7 (Market Opening
BYX Exchange, Inc., and EDGX Exchange, Inc.
would be amended to Bats EDGX Exchange, Inc.
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17:56 Mar 10, 2016
Jkt 238001
Procedures), Rule 21.8 (Order Display
and Booking Process), Rule 21.9 (Order
Routing), Rule 21.12 (Clearing Member
Give Up), Rule 21.13 (Submission for
Clearance), Rule 21.14 (Message Traffic
Mitigation), Rule 22.1 (Customer Orders
and Order Entry Firms), Rule 22.2
(Options Market Maker Registration),
Rule 22.5 (Obligations of Market
Makers), Rule 22.6 (Market Maker
Quotations), Rule 22.7 (Securities
Accounts and Orders of Market Makers),
Rule 22.8 (Letters of Guarantee), Rule
22.12 (Order Exposure Requirements),
Rule 23.1 (Exercise of Options
Contracts), Rule 24.2 (Reports of
Uncovered Short Positions), Rule 25.1
(Suspensions), Rule 25.2 (Contracts of
Suspended Members), Rule 25.3
(Penalty for Minor Rule Violations),
Rule 26.5 (Discretionary Accounts),
Rule 28.1 (General Rule), Rule 28.4
(Margin Required is Minimum), Rule
29.2 (Definitions), Rule 29.3
(Designation of a Broad-Based Index),
Rule 29.4 (Dissemination of
Information), Rule 29.5 (Position Limits
for Broad-Based Index Options), Rule
29.6 (Designation of Narrow-Based and
Micro-Narrow-Based Index Options),
Rule 29.7 (Position Limits for NarrowBased and Micro-Narrow-Based Index
Options), Rule 29.8 (Exemptions from
Position Limits), Rule 29.10 (Trading
Sessions), Rule 29.11 (Terms of Index
Options Contracts), and Rule 29.12
(Debit Put Spread Cash Account
Transactions). Throughout these rules,
the Exchange proposes the following
changes:
• All references to ‘‘BATS Exchange’’,
‘‘BATS EXCHANGE’’ and ‘‘BATS
EXCHANGE, INC.’’ are proposed to be
changed to ‘‘Bats BZX Exchange, Inc.’’;
• All references to ‘‘BATS’’ are
proposed to be changed to ‘‘Bats’’ or
‘‘Exchange’’;
• All references to ‘‘BATS YExchange, Inc.’’ are proposed to be
changed to ‘‘Bats BYX Exchange, Inc.’’;
• All references to ‘‘EDGX Exchange,
Inc.’’ are proposed to be changed to
‘‘Bats EDGX Exchange, Inc.’’;
• All references to ‘‘EDGA Exchange,
Inc.’’ are proposed to be changed to
‘‘Bats EDGA Exchange, Inc.’’;
• All references to ‘‘BATS Options’’
are proposed to be changed to ‘‘BZX
Options’’.
• All references to ‘‘BATS Book’’,
‘‘BATS market orders’’, ‘‘BATS Post
Only Orders’’, ‘‘BATS Only Orders’’,
and ‘‘BATS-listed securities’’ are
proposed to be changed to ‘‘BZX Book’’,
‘‘BZX market orders’’, ‘‘BZX Post Only
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12997
Orders’’, ‘‘BZX Only Orders’’, and
‘‘BZX-listed securities’’, respectively.8
In addition to these changes, the
Exchange proposes to modify its Fee
Schedules to reflect the name change of
the Exchange to Bats BZX Exchange 9
and to change all references to ‘‘BATS’’
to instead refer to ‘‘Bats’’. The Exchange
also proposes on its Fee Schedule to
refer to its affiliate, Bats BYX Exchange,
Inc. (as proposed to be re-named),
simply as ‘‘BYX’’. The Exchange
believes that this is more consistent
with other references on the Fee
Schedule, such as the general references
to ‘‘EDGA’’, which refer to the
Exchange’s affiliate, Bats EDGA
Exchange, Inc. (as proposed to be renamed). Finally, the Exchange proposes
to replace the term ‘‘Non-BATS Market
Maker’’ with ‘‘Away Market Maker’’
(rather than changing the capitalization
of ‘‘Non-BATS’’ to ‘‘Non-Bats’’), which
is consistent with the terminology used
on the fee schedule of EDGX Options,
which is the options platform operated
by Bats EDGX Exchange, Inc. (as
proposed to be renamed).10
The Exchange also proposes to amend
Article First of the Certificate to change
the name of the Exchange to Bats BZX
Exchange, Inc. and make conforming
changes throughout, including the title
of the Certificate. The Exchange
proposes to amend the Bylaws to amend
the title to reflect that the Bylaws will
be titled the ‘‘FOURTH AMENDED AND
RESTATED BYLAWS OF BATS BZX
EXCHANGE, INC.’’ The Exchange also
proposes to amend Article I, paragraph
(f) and Article XI, section 2 to reflect the
name changes.
The name change from BATS
Exchange, Inc. to Bats BZX Exchange,
Inc. is a non-substantive change. No
changes to the ownership or structure of
the Exchange or BATS Global Markets,
Inc. have taken place.
2. Statutory Basis
8 The Exchange notes that ‘‘BATS’’ is
synonymous with ‘‘BZX’’. For example, Rule
11.22(k) is titled ‘‘BZX Book Viewer’’ and described
a market data product offered by the Exchange. In
addition, the Fee Schedule also includes BZX in the
title of the Exchange’s market data products. The
Exchange does not propose to amend the names of
these products.
9 The Exchange notes that the Exchange will
continue to be referred to as ‘‘BZX’’ in certain areas
of the Fee Schedules. These areas of the Fee
Schedules are: (i) The Fee Codes and Associated
Fees table; (ii) footnote 6; (ii) footnote 7; (iii) the
Bats Connect pricing table; and (iv) in the Unicast
Access—Order Entry section of its Fee Schedule.
10 See EDGX Options fee schedule, available at:
https://www.batsoptions.com/support/fee_schedule/
edgx/.
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12998
Federal Register / Vol. 81, No. 48 / Friday, March 11, 2016 / Notices
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act,11 in general, and furthers the
objectives of section 6(b)(5) of the Act,12
in particular, in that it is designed to
promote just and equitable principles of
trade, 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
Exchange also believes that the
proposed rule change is consistent with
section 6(b)(1) of the Act 13 in that it is
designed to continue to ensure that the
Exchange is so organized and has the
capacity to carry out the purposes of Act
and to comply, and enforce compliance
by its members with the provisions of
the Act and the rules and regulations
thereunder, and rules of the Exchange.
The Exchange is proposing amendments
to the Operative Documents to
effectuate its name change to Bats BZX
Exchange, Inc. and to reflect the name
changes of its affiliates. These changes
are limited to capitalization and
ministerial name changes and to reflect
similar proposed rule changes to be
submitted to the Commission by the
Exchange’s affiliates. The Exchange
believes that the changes will protect
investors and the public interest by
eliminating confusion that may exist
because of differences between its
corporate name and the new naming
conventions of the Parent and its
subsidiaries, including the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Because the rule change proposes
ministerial changes related to the
administration, and not the governance
or operation, of the Exchange, the
Exchange does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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
Because it is concerned solely with
the administration of the Exchange, the
U.S.C. 78f.
U.S.C. 78f(b)(5).
13 15 U.S.C. 78f(b)(1).
foregoing proposed rule change has
become effective pursuant to section
19(b)(3)(A)(iii) of the Ac 14 and Rule
19b–4(f)(3) thereunder.15
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BATS–2016–25 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–2016–25. 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
11 15
12 15
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17:56 Mar 10, 2016
14 15
15 17
Jkt 238001
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(3).
Frm 00141
Fmt 4703
Sfmt 4703
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–
2016–25, and should be submitted on or
before April 1, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–05438 Filed 3–10–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77302; File No. SR–NYSE–
2016–13]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change, as
Modified by Amendment No. 1,
Establishing Procedures for the
Allocation of Cages to Its Co-Located
Users, Including the Waiver of Certain
Fees, and To Amend the Visitor
Security Escort Requirements and Fee
March 7, 2016.
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 February
23, 2016, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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. On March 1, 2016, the
Exchange filed Amendment No. 1 to the
proposed rule change.4 The Commission
is publishing this notice to solicit
comments on the proposed rule change,
as modified by Amendment No. 1, from
interested persons.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 In Amendment No. 1, the Exchange clarified the
proposal to specify that the visitor escort fee is
equitable because all Users of the Exchange’s Data
Center would be charged the same fee. The
Exchange also clarified the proposal to specify that
while an individual User is on the waitlist for a
cabinet, it will be granted a fee waiver for 2 bundles
of 24 cross connects to be used to connect that
User’s non-contiguous cabinets.
1 15
E:\FR\FM\11MRN1.SGM
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Agencies
[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)]
[Notices]
[Pages 12996-12998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05438]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77307; File No. SR-BATS-2016-25]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Rules as Well as Certain Corporate Documents of the Exchange To
Reflect a Legal Name Change by BATS Global Markets, Inc. and the Legal
Names of Certain Subsidiaries
March 7, 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 26, 2016, Bats BZX Exchange, Inc. f/k/a BATS Exchange,
Inc. (the ``Exchange'' or ``BZX'') 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 this proposal as one being
concerned solely with the administration of the Exchange pursuant to
section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(3)
thereunder,\4\ which renders the proposal 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)(iii).
\4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing a rule change to amend its rules as well
as certain corporate documents of the Exchange to reflect a legal name
change by the Exchange's ultimate parent entity, BATS Global Markets,
Inc. (the ``Parent'') to Bats Global Markets, Inc., and the legal names
of certain of the Parent's subsidiaries. As a result of this change,
the Exchange also proposes to amend its rules to change its name from
BATS Exchange, Inc. to Bats BZX Exchange, Inc.
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange, on behalf of its Parent, recently filed to change the
Parent's legal name from ``BATS Global Markets, Inc.'' to ``Bats Global
Markets, Inc.'' \5\ For the purposes of consistency, certain of the
Parent's subsidiaries have also undertaken to change their legal names.
As a result, the Exchange also proposes to change its name from BATS
Exchange, Inc. to Bats BZX Exchange, Inc. throughout its rules and
corporate documents (collectively, with the other legal name changes
for the Parent and certain of its subsidiaries, the ``name
changes'').\6\ Therefore, the Exchange proposes to amend its: (i)
Rulebook; (ii) fee schedules applicable to its equity and options
platforms issued pursuant to Exchange Rules 15.1(a) and (c) (``Fee
Schedules''); (iii) Certificate of Incorporation (``Certificate''); and
(iv) Third Amended and Restated Bylaws of the Exchange (``Bylaws'')
(collectively, the ``Operative Documents'') to reflect the name change
and to replace all references to ``BATS'' with ``Bats''.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 77155 (February 17,
2016) (SR-BATS-2016-10).
\6\ The Exchange initially filed the proposed fee [sic] change
on February 19, 2016 (SR-BATS-2016-21). On February 26, 2016, the
Exchange withdrew that filing and submitted this filing.
---------------------------------------------------------------------------
The Exchange proposes to replace all references to BATS with Bats
throughout the Exchange's Rulebook and Fee Schedule. The Exchange
understands that its affiliated Exchanges also intend to file similar
proposed rule changes with the Commission to amend their exchange
names.\7\ Therefore, the
[[Page 12997]]
Exchange proposes to amend the following rules to reflect the name
changes, including the expected filings by its affiliates to amend
their names: Rule 1.5 (Definitions), Rule 2.3 (Member Eligibility),
Rule 2.10 (Affiliation Between Exchange and a Member), Rule 2.11 (BATS
Trading, Inc. as Outbound Router), Rule 2.12 (BATS Trading, Inc. as
Inbound Router), Rule 8.15 (Imposition of Fines for Minor Violation(s)
of Rules), Rule 11.1 (Hours of Trading and Trading Days), Rule 11.8
(Obligations of Market Makers), Rule 11.9 (Orders and Modifiers), Rule
11.12 (Priority of Orders), Rule 11.13 (Order Execution and Routing),
Rule 11.14 (Trade Execution and Reporting), Rule 11.18 (Trading Halts
Due to Extraordinary Market Volatility), Rule 11.22 (Data Products),
Rule 11.23 (Auctions), Rule 11.24 (Opening Process for Non-BATS-Listed
Securities), Rule 11.26 (Usage of Data Feeds), Rule 13.8 (BATS
Connect), Rule 14.3 (General Procedures and Prerequisites for Initial
and Continued Listing on the Exchange), Rule 14.11 (Other Securities),
Rule 16.1 (Definitions), Rule 16.2 (Applicability), Rule 17.1 (Options
Participation), Rule 17.2 (Requirements for Options Participation),
Rule 17.4 (Good Standing For Options Members), Rule 18.2 (Conduct and
Compliance with the Rules), Rule 18.4 (Prevention of the Misuse of
Material Nonpublic Information), Rule 18.6 (Other Restrictions on
Members), Rule 18.7 (Position Limits), Rule 18.8 (Exemptions from
Position Limits), Rule 18.9 (Exercise Limits), Rule 18.11 (Liquidation
Positions), Rule 18.12 (Other Restrictions on Options Transactions and
Exercises), Rule 18.14 Limit on Outstanding Uncovered Short Positions),
Rule 19.1 (Designation of Securities), Rule 19.3 (Criteria for
Underlying Securities), Rule 19.4 (Withdrawal of Approval of Underlying
Securities), Rule 19.6 (Series of Options Contracts Open for Trading),
Rule 20.1 (Access to and Conduct on the BATS Options Market), Rule 20.2
(Surveillance), Rule 20.3 (Trading Halts), Rule 20.5 (Unusual Market
Conditions), Rule 20.6 (Nullification and Adjustment of Options
Transactions including Obvious Errors), Rule 20.7 (Audit Trail), Rule
20.8 (Failure to Pay Premium), Rule 21.1 (Definitions), Rule 21.2 (Days
and Hours of Business), Rule 21.3 (Units of Trading), Rule 21.4
(Meaning of Premium Quotes and Orders), Rule 21.5 (Minimum Increments),
Rule 21.7 (Market Opening Procedures), Rule 21.8 (Order Display and
Booking Process), Rule 21.9 (Order Routing), Rule 21.12 (Clearing
Member Give Up), Rule 21.13 (Submission for Clearance), Rule 21.14
(Message Traffic Mitigation), Rule 22.1 (Customer Orders and Order
Entry Firms), Rule 22.2 (Options Market Maker Registration), Rule 22.5
(Obligations of Market Makers), Rule 22.6 (Market Maker Quotations),
Rule 22.7 (Securities Accounts and Orders of Market Makers), Rule 22.8
(Letters of Guarantee), Rule 22.12 (Order Exposure Requirements), Rule
23.1 (Exercise of Options Contracts), Rule 24.2 (Reports of Uncovered
Short Positions), Rule 25.1 (Suspensions), Rule 25.2 (Contracts of
Suspended Members), Rule 25.3 (Penalty for Minor Rule Violations), Rule
26.5 (Discretionary Accounts), Rule 28.1 (General Rule), Rule 28.4
(Margin Required is Minimum), Rule 29.2 (Definitions), Rule 29.3
(Designation of a Broad-Based Index), Rule 29.4 (Dissemination of
Information), Rule 29.5 (Position Limits for Broad-Based Index
Options), Rule 29.6 (Designation of Narrow-Based and Micro-Narrow-Based
Index Options), Rule 29.7 (Position Limits for Narrow-Based and Micro-
Narrow-Based Index Options), Rule 29.8 (Exemptions from Position
Limits), Rule 29.10 (Trading Sessions), Rule 29.11 (Terms of Index
Options Contracts), and Rule 29.12 (Debit Put Spread Cash Account
Transactions). Throughout these rules, the Exchange proposes the
following changes:
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\7\ The Exchange's affiliates are EDGA Exchange, Inc., BATS Y-
Exchange, Inc. and EDGX Exchange, Inc. The Exchange understands that
proposed rule changes are to be filed by each of its affiliates to
amend their names as follows: EDGA Exchange, Inc. would be changed
to Bats EDGA Exchange, Inc., BATS Y-Exchange, Inc. would be amended
to Bats BYX Exchange, Inc., and EDGX Exchange, Inc. would be amended
to Bats EDGX Exchange, Inc.
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All references to ``BATS Exchange'', ``BATS EXCHANGE'' and
``BATS EXCHANGE, INC.'' are proposed to be changed to ``Bats BZX
Exchange, Inc.'';
All references to ``BATS'' are proposed to be changed to
``Bats'' or ``Exchange'';
All references to ``BATS Y-Exchange, Inc.'' are proposed
to be changed to ``Bats BYX Exchange, Inc.'';
All references to ``EDGX Exchange, Inc.'' are proposed to
be changed to ``Bats EDGX Exchange, Inc.'';
All references to ``EDGA Exchange, Inc.'' are proposed to
be changed to ``Bats EDGA Exchange, Inc.'';
All references to ``BATS Options'' are proposed to be
changed to ``BZX Options''.
All references to ``BATS Book'', ``BATS market orders'',
``BATS Post Only Orders'', ``BATS Only Orders'', and ``BATS-listed
securities'' are proposed to be changed to ``BZX Book'', ``BZX market
orders'', ``BZX Post Only Orders'', ``BZX Only Orders'', and ``BZX-
listed securities'', respectively.\8\
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\8\ The Exchange notes that ``BATS'' is synonymous with ``BZX''.
For example, Rule 11.22(k) is titled ``BZX Book Viewer'' and
described a market data product offered by the Exchange. In
addition, the Fee Schedule also includes BZX in the title of the
Exchange's market data products. The Exchange does not propose to
amend the names of these products.
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In addition to these changes, the Exchange proposes to modify its
Fee Schedules to reflect the name change of the Exchange to Bats BZX
Exchange \9\ and to change all references to ``BATS'' to instead refer
to ``Bats''. The Exchange also proposes on its Fee Schedule to refer to
its affiliate, Bats BYX Exchange, Inc. (as proposed to be re-named),
simply as ``BYX''. The Exchange believes that this is more consistent
with other references on the Fee Schedule, such as the general
references to ``EDGA'', which refer to the Exchange's affiliate, Bats
EDGA Exchange, Inc. (as proposed to be re-named). Finally, the Exchange
proposes to replace the term ``Non-BATS Market Maker'' with ``Away
Market Maker'' (rather than changing the capitalization of ``Non-BATS''
to ``Non-Bats''), which is consistent with the terminology used on the
fee schedule of EDGX Options, which is the options platform operated by
Bats EDGX Exchange, Inc. (as proposed to be renamed).\10\
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\9\ The Exchange notes that the Exchange will continue to be
referred to as ``BZX'' in certain areas of the Fee Schedules. These
areas of the Fee Schedules are: (i) The Fee Codes and Associated
Fees table; (ii) footnote 6; (ii) footnote 7; (iii) the Bats Connect
pricing table; and (iv) in the Unicast Access--Order Entry section
of its Fee Schedule.
\10\ See EDGX Options fee schedule, available at: https://www.batsoptions.com/support/fee_schedule/edgx/.
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The Exchange also proposes to amend Article First of the
Certificate to change the name of the Exchange to Bats BZX Exchange,
Inc. and make conforming changes throughout, including the title of the
Certificate. The Exchange proposes to amend the Bylaws to amend the
title to reflect that the Bylaws will be titled the ``FOURTH AMENDED
AND RESTATED BYLAWS OF BATS BZX EXCHANGE, INC.'' The Exchange also
proposes to amend Article I, paragraph (f) and Article XI, section 2 to
reflect the name changes.
The name change from BATS Exchange, Inc. to Bats BZX Exchange, Inc.
is a non-substantive change. No changes to the ownership or structure
of the Exchange or BATS Global Markets, Inc. have taken place.
2. Statutory Basis
[[Page 12998]]
The Exchange believes that its proposal is consistent with section
6(b) of the Act,\11\ in general, and furthers the objectives of section
6(b)(5) of the Act,\12\ in particular, in that it is designed to
promote just and equitable principles of trade, 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 Exchange also believes that the proposed rule change is
consistent with section 6(b)(1) of the Act \13\ in that it is designed
to continue to ensure that the Exchange is so organized and has the
capacity to carry out the purposes of Act and to comply, and enforce
compliance by its members with the provisions of the Act and the rules
and regulations thereunder, and rules of the Exchange. The Exchange is
proposing amendments to the Operative Documents to effectuate its name
change to Bats BZX Exchange, Inc. and to reflect the name changes of
its affiliates. These changes are limited to capitalization and
ministerial name changes and to reflect similar proposed rule changes
to be submitted to the Commission by the Exchange's affiliates. The
Exchange believes that the changes will protect investors and the
public interest by eliminating confusion that may exist because of
differences between its corporate name and the new naming conventions
of the Parent and its subsidiaries, including the Exchange.
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\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(5).
\13\ 15 U.S.C. 78f(b)(1).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Because the rule change proposes ministerial changes related to the
administration, and not the governance or operation, of the Exchange,
the Exchange does not believe that the proposed rule change will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act.
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
Because it is concerned solely with the administration of the
Exchange, the foregoing proposed rule change has become effective
pursuant to section 19(b)(3)(A)(iii) of the Ac \14\ and Rule 19b-
4(f)(3) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(3).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BATS-2016-25 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-2016-25. 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-BATS-2016-25, and should be
submitted on or before April 1, 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. 2016-05438 Filed 3-10-16; 8:45 am]
BILLING CODE 8011-01-P