Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding Fees and Rebates To Adopt the Select Symbols Options Tier Schedule, 14155-14160 [2016-05854]
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Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices
to either approve the proposed rule
change, disapprove the proposed rule
change, or institute proceedings to
determine whether to disapprove the
proposed rule change.6 On December
11, 2015, the Commission instituted
proceedings under Section 19(b)(2)(B) of
the Act 7 to determine whether to
approve or disapprove the proposed
rule change, as modified by Amendment
No. 1.8 The Commission has not
received any comments on the proposal,
as modified by Amendment No. 1.
On March 7, 2016, the Exchange
withdrew the proposed rule change
(SR–NYSEArca–2015–76).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–05851 Filed 3–15–16; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–77339; File No. SR–BX–
2016–016]
Self-Regulatory Organizations;
NASDAQ BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding Fees and
Rebates To Adopt the Select Symbols
Options Tier Schedule
March 10, 2016.
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Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 1,
2016, NASDAQ BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) 3 filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
6 See Securities Exchange Act Release No. 76291,
80 FR 67827 (Nov. 3, 2015). The Commission
determined that it was appropriate to designate a
longer period within which to take action on the
proposed rule change so that it had sufficient time
to consider the proposed rule change. Accordingly,
the Commission designated December 15, 2015 as
the date by which it should approve, disapprove,
or institute proceedings to determine whether to
disapprove the proposed rule change.
7 15 U.S.C. 78s(b)(2)(B).
8 See Securities Exchange Act Release No. 76630,
80 FR 78791 (Dec. 17, 2015).
9 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Exchange notes that it has legally changed
its name to NASDAQ BX, Inc. with the state of
Delaware and filed Form 1 reflecting the change,
and is in the process of changing its rules to reflect
the new name.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Options Pricing at Chapter XV Section
2, entitled ‘‘BX Options Market—Fees
and Rebates,’’ which governs pricing for
BX members using the BX Options
Market (‘‘BX Options’’). The Exchange
proposes to modify certain fees and
rebates (per executed contract) to adopt
the Select Symbol Options Tier
Schedule for certain Penny Pilot 4
Options (each a ‘‘Select Symbol’’ and
together the ‘‘Select Symbols’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqomxbx.cchwall
street.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
SECURITIES AND EXCHANGE
COMMISSION
VerDate Sep<11>2014
solicit comments on the proposed rule
change from interested persons.
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 aspects 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 proposes to amend its
Chapter XV, Section 2, to modify certain
fees and rebates 5 to adopt the Select
Symbol Options Tier Schedule for
certain Penny Pilot Options. The
proposed Select Symbol Options Tier
Schedule would apply to Customers,6
4 The Penny Pilot was established in June 2012
and extended in 2015. See Securities Exchange Act
Release Nos. 67256 (June 26, 2012), 77 FR 39277
(July 2, 2012) (SR–BX–2012–030) (order approving
BX option rules and establishing Penny Pilot); and
75326 (June 29, 2015), 80 FR 38481 (July 6, 2015)
(SR–BX–2015–037) (notice of filing and immediate
effectiveness extending the Penny Pilot through
June 30, 2016).
5 Fees and rebates are per executed contract. BX
Chapter XV, Section 2(1).
6 The term ‘‘Customer’’ or (‘‘C’’) applies to any
transaction that is identified by a Participant for
clearing in the Customer range at The Options
Clearing Corporation (‘‘OCC’’) which is not for the
account of broker or dealer or for the account of a
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14155
BX Options Market Makers,7 NonCustomers,8 and Firms.9
Currently, Chapter XV, Section 2,
subsection (1), contains a SPY 10
Options Tier Schedule (‘‘SPY
Schedule’’) that has four tiers. The
Exchange proposes to convert the SPY
Schedule into the Select Symbols
Options Tier Schedule, as discussed in
detail below.
Change 1—Penny Pilot Options: Modify
Fees and Rebates To Add the Select
Symbols Options Tier Schedule
In Change 1, the Exchange proposes
modifications to convert its current SPY
Schedule to the Select Symbols Options
Tier Schedule. The proposed change
keeps the great majority of the current
SPY Schedule fees and rebates
assessments (twelve out of sixteen) and
tiers (three out of four) exactly the same
in the new Select Symbols Options Tier
Schedule; and updates the fees and
rebates schedule to indicate ‘‘Select
Symbols’’ rather than ‘‘SPY.’’
Specifically, the Exchange proposes,
commensurate with renaming the SPY
Options Tier Schedule the Select
Symbols Options Tier Schedule, to set
forth the BX Options Select Symbol List.
The Select Symbols 11 on this list
represent, similarly to SPY, some of the
highest volume Penny Pilot Options
traded on the Exchange and in the U.S.
The proposed Select Symbols are
similar to those of other options
exchanges (e.g., the MIAX Options
Exchange (‘‘MIAX’’).12 Like the SPY
‘‘Professional’’ (as that term is defined in Chapter
I, Section 1(a)(48)). BX Chapter XV.
7 BX Options Market Makers may also be referred
to as ‘‘Market Makers’’. The term ‘‘BX Options
Market Maker’’ or (‘‘M’’) means a Participant that
has registered as a Market Maker on BX Options
pursuant to Chapter VII, Section 2, and must also
remain in good standing pursuant to Chapter VII,
Section 4. In order to receive Market Maker pricing
in all securities, the Participant must be registered
as a BX Options Market Maker in at least one
security. BX Chapter XV.
8 Note 1 to Chapter XV, Section 2, states: ‘‘1 A
Non-Customer includes a Professional, BrokerDealer and Non-BX Options Market Maker.’’
9 The term ‘‘Firm’’ or (‘‘F’’) applies to any
transaction that is identified by a Participant for
clearing in the Firm range at OCC. BX Chapter XV.
10 ‘‘SPY’’ or Standard and Poor’s Depositary
Receipts/SPDRs options are Penny Pilot Options
that are based on the SPDR exchange-traded fund
(‘‘ETF’’), which is designed to track the
performance of the S&P 500.
11 The following are Select Symbols: ASHR, DIA,
DXJ, EEM, EFA, EWJ, EWT, EWW, EWY, EWZ,
FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM,
IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF,
SLV, SPY, SRS, SSO, TBT, TLT, TNA, TZA, UNG,
URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB,
XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME,
XOP, XRT.
12 See MIAX fee schedule at https://
www.miaxoptions.com/sites/default/files/feeschedules/MIAX_Options_Fee_Schedule_
10012015.pdf.
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Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices
Options Tier Schedule, the Select
Symbols Options Tier Schedule will
have four tiers.
Proposed Tier 1 in the Select Symbols
Options Tier Schedule, which has the
same requirements as the current Tier I
in the SPY Options Tier Schedule will
be where a BX Participant
(‘‘Participant’’) executes less than 0.05%
of total industry customer equity and
exchange traded fund (‘‘ETF’’) option
average daily volume (‘‘ADV’’) contracts
per month. Proposed Tier 1 will range
from a $0.00 rebate to a $0.44 fee:
—The Rebate to Add Liquidity when
Customer trading with Non-Customer,
BX Options Market Maker, or Firm
will be $0.00 (no rebate will be
paid); 13
—the Fee to Add Liquidity when BX
Options Market Maker trading with
Customer will be $0.44; 14
—the Rebate to Remove Liquidity when
Customer trading with Non-Customer,
BX Options Market Maker, Customer,
or Firm will be $0.00; 15 and
—the Fee to Remove Liquidity when BX
Options Market Maker trading with
Customer will be $0.42.16
Proposed Tier 2 in the Select Symbols
Options Tier Schedule, which has the
same requirements as current Tier 2 in
the SPY Options Tier Schedule, will be
where Participant executes 0.05% to
less than 0.15% of total industry
customer equity and ETF option ADV
contracts per month. Proposed Tier 2
will range from a $0.25 rebate to a $0.44
fee:
—The new Rebate to Add Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
or Firm will be $0.10; 17
—the new Fee to Add Liquidity when
BX Options Market Maker trading
with Customer will be $0.44; 18
—the new Rebate to Remove Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
Customer, or Firm will be $0.25; 19
and
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13 This is the same as the rebate in the current
SPY Options Tier Schedule.
14 Proposed $0.44 is a modest fee increase from
the current SPY Options Tier Schedule, which is
$0.42.
15 This is the same as the rebate in the current
SPY Options Tier Schedule.
16 This is the same as the fee in the current SPY
Options Tier Schedule.
17 This is the same as the rebate in the current
SPY Options Tier Schedule.
18 Proposed $0.44 is a modest fee increase from
the current SPY Options Tier Schedule, which is
$0.42.
19 This is the same as the rebate in the current
SPY Options Tier Schedule.
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—the new Fee to Remove Liquidity
when BX Options Market Maker
trading with Customer will be
$0.42.20
Proposed Tier 3 in the Select Symbols
Options Tier Schedule, which has the
same requirements the current Tier 3 in
the SPY Options Tier Schedule, will be
where Participant executes 0.15% or
more of total industry customer equity
and ETF option ADV contracts per
month. Proposed Tier 3 will range from
a $0.37 rebate to a $0.40 fee:
—The new Rebate to Add Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
or Firm will be $0.20; 21
—the new Fee to Add Liquidity when
BX Options Market Maker trading
with Customer will be $0.40; 22
—the new Rebate to Remove Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
Customer, or Firm will be $0.37; 23
and
—the new Fee to Remove Liquidity
when BX Options Market Maker
trading with Customer will be
$0.39.24
Proposed Tier 4 in the Select Symbols
Options Tier Schedule, which is
modified from the current Tier 4 in the
SPY Options Tier Schedule, will be
where Participant executes more than
10,000 BX Price Improvement Auction
(‘‘PRISM’’) 25 Agency Contracts per
month; or Participant executes BX
Options Market Maker volume of 0.30%
20 This is the same as the fee in the current SPY
Options Tier Schedule.
21 This is the same as the rebate in the current
SPY Options Tier Schedule.
22 Proposed $0.40 is a modest fee increase from
the current SPY Options Tier Schedule, which is
$0.39.
23 This is the same as the rebate in the current
SPY Options Tier Schedule.
24 This is the same as the fee in the current SPY
Options Tier Schedule.
25 PRISM is a Price Improvement Mechanism for
all-electronic BX Options whereby a buy and sell
order may be submitted in one order message to
initiate an auction at a stop price and seek potential
price improvement. Options are traded
electronically on BX Options, and all options
participants may respond to a PRISM Auction, the
duration of which is set at 200 milliseconds. PRISM
includes auto-match functionality in which a
Participant (an ‘‘Initiating Participant’’) may
electronically submit for execution an order it
represents as agent on behalf of customer, broker
dealer, or any other entity (‘‘PRISM Order’’) against
principal interest or against any other order it
represents as agent (an ‘‘Initiating Order’’) provided
it submits the PRISM Order for electronic execution
into the PRISM Auction pursuant [sic]. See Chapter
VI, Section 9; and Securities Exchange Act Release
No. 76301 (October 29, 2015), 80 FR 68347
(November 4, 2015) (SR–BX–2015–032) (order
approving BX PRISM).
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Frm 00078
Fmt 4703
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or more of total industry customer
equity and ETF options ADV per month.
If a Participant qualifies for Tier 4 the
rates applicable to this tier will
supersede any other Select Symbols tier
rates that the Participant may qualify
for. Proposed Tier 4 will range from a
$0.37 rebate to a $0.29 fee:
—The new Rebate to Add Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
or Firm will be $0.25; 26
—the new Fee to Add Liquidity when
BX Options Market Maker trading
with Customer will be $0.29; 27
—the new Rebate to Remove Liquidity
when Customer trading with NonCustomer, BX Options Market Maker,
Customer, or Firm will be $0.37; 28
and
—the new Fee to Remove Liquidity
when BX Options Market Maker
trading with Customer will be
$0.25.29
In addition, there are currently six
explanatory notes in the SPY Options
Tier Schedule. In each such note the
Exchange will, as elsewhere in the fees
and rebates schedule, replace ‘‘SPY’’
with ‘‘Select Symbols.’’ The Exchange
proposes to also establish a fee on one
note that is not currently fee liable in
the SPY Options Tier Schedule.
Specifically, the Exchange proposes to
state that BX Options Market Maker fee
to add liquidity in SPY [sic] Options
will be $0.04 when trading with Firm,
Non-Customer, or BX Options Market
Maker.
Chapter XV, Section 2 subsection (1)
reflecting the proposed Select Symbols
Options Tier Schedule will read as
follows:
Sec. 2 BX Options Market—Fees and
Rebates
The following charges shall apply to
the use of the order execution and
routing services of the BX Options
market for all securities.
(1) Fees for Execution of Contracts on
the BX Options Market:
*
*
*
*
*
26 This is the same as the rebate in the current
SPY Options Tier Schedule.
27 Proposed $0.29 is, in order to further promote
liquidity on the Exchange, a modest fee decrease
from the current SPY Options Tier Schedule, which
is $0.32.
28 This is the same as the rebate in the current
SPY Options Tier Schedule.
29 This is the same as the fee in the current SPY
Options Tier Schedule.
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Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices
SELECT SYMBOLS OPTIONS TIER SCHEDULE
Rebate to add
liquidity
Fee to add
liquidity
Rebate to
remove
liquidity
Fee to remove
liquidity
When:
Customer
BX Options
market maker
Customer
BX Options
market maker
Trading with:
Non-Customer,
BX options
market maker,
or firm
Customer
Non-Customer,
BX options
market maker,
customer,
or firm
Customer
Tier 1:
Participant executes less than 0.05% of total industry customer
equity and ETF option ADV contracts per month .....................
Tier 2:
Participant executes 0.05% to less than 0.15% of total industry
customer equity and ETF option ADV contracts per month .....
Tier 3:
Participant executes 0.15% or more of total industry customer
equity and ETF option ADV contracts per month .....................
Tier 4:
Participant executes more than 10,000 PRISM Agency Contracts per month; or Participant executes BX Options Market
Maker volume of 0.30% or more of total industry customer
equity and ETF options ADV per month ..................................
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BX Options Select Symbol List
The following are Select Symbols:
ASHR, DIA, DXJ, EEM, EFA, EWJ, EWT,
EWW, EWY, EWZ, FAS, FAZ, FXE, FXI,
FXP, GDX, GLD, HYG, IWM, IYR, KRE,
OIH, QID, QLD, QQQ, RSX, SDS, SKF,
SLV, SPY, SRS, SSO, TBT, TLT, TNA,
TZA, UNG, URE, USO, UUP, UVXY,
UYG, VXX, XHB, XLB, XLE, XLF, XLI,
XLK, XLP, XLU, XLV, XLY, XME, XOP,
XRT
• BX Options Market Maker fee to
add liquidity in Select Symbols Options
will be $0.04 when trading with Firm,
Non-Customer, or BX Options Market
Maker.
• Firm fee to add liquidity and fee to
remove liquidity in Select Symbols
Options will be $0.33 per contract,
regardless of counterparty.
• Non-Customer fee to add liquidity
and fee to remove liquidity in Select
Symbols Options will be $0.46 per
contract, regardless of counterparty.
• BX Options Market Maker fee to
remove liquidity in Select Symbols
Options will be $0.46 per contract when
trading with Firm, Non-Customer, or BX
Options Market Maker.
• Customer fee to add liquidity in
Select Symbols Options when contra to
another Customer is $0.33 per contract.
• Volume from all products listed on
BX Options will apply to the Select
Symbols Options Tiers.
*
*
*
*
*
The Exchange is proposing fees and
rebate changes and adopting the Select
Symbols Options Tier Schedule at this
time because it believes that this will
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$0.00
$0.44
$0.00
$0.42
0.10
0.44
0.25
0.42
0.20
0.40
0.37
0.39
0.25
0.29
0.37
0.25
provide incentives for execution of
contracts, and in particular Select
Symbols Options contracts, on the BX
Options Market.
The Exchange also believes that its
proposal should provide increased
opportunities for participation in
executions on the Exchange, facilitating
the ability of the Exchange to bring
together participants and encourage
more robust competition for orders.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Pricing Schedule
is consistent with Section 6(b) of the
Act,30 in general, and furthers the
objectives of Section 6(b)(4) and (b)(5) of
the Act,31 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among members and issuers and other
persons using any facility or system
which the Exchange operates or
controls, and is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
30 15
31 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4), (5).
Frm 00079
Fmt 4703
Sfmt 4703
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 32
Likewise, in NetCoalition v. Securities
and Exchange Commission 33
(‘‘NetCoalition’’) the DC Circuit upheld
the Commission’s use of a market-based
approach in evaluating the fairness of
market data fees against a challenge
claiming that Congress mandated a costbased approach.34 As the court
emphasized, the Commission ‘‘intended
in Regulation NMS that ‘market forces,
rather than regulatory requirements’
play a role in determining the market
data . . . to be made available to
investors and at what cost.’’ 35
Further, ‘‘[n]o one disputes that
competition for order flow is ‘fierce.’
. . . As the SEC explained, ‘[i]n the U.S.
national market system, buyers and
sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
32 Securities Exchange Act Release No. 51808 at
37499 (June 9, 2005) (‘‘Regulation NMS Adopting
Release’’).
33 NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir.
2010).
34 See id. at 534–535.
35 See id. at 537.
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dealers’. . . .’’ 36 Although the court
and the SEC were discussing the cash
equities markets, the Exchange believes
that these views apply with equal force
to the options markets.
The Exchange proposes to amend its
Chapter XV, Section 2 to modify certain
fees and rebates to adopt the Select
Symbol Options Tier Schedule for
certain Penny Pilot Options. The
proposed modified fees and rebates and
new Select Symbols Options Tier
Schedule would, as discussed, apply to
Customers, BX Options Market Makers,
Non-Customers, and Firms. The
Exchange believes that its proposal is
reasonable, equitable, and not unfairly
discriminatory and should provide
increased opportunities for participation
in executions on the Exchange,
facilitating the ability of the Exchange to
bring together participants and
encourage more robust competition for
orders.
Change 1—Penny Pilot Options: Modify
Fees and Rebates To Add the Select
Symbols Options Tier Schedule
In Change 1, the Exchange proposes to
convert its current SPY Options Tier
Schedule to the Select Symbols Options
Tier Schedule and to set forth the BX
Options Select Symbol List. The Select
Symbols on this list represent, similarly
to SPY, some of the highest volume
Penny Pilot Options traded on the
Exchange and in the U.S and are similar
to those of other options exchanges (e.g.,
the MIAX).
As discussed, the proposed change
updates the fees and rebates schedule to
indicate ‘‘Select Symbols’’ rather than
‘‘SPY’’ and keeps the great majority of
the current SPY Schedule fees and
rebates assessments and tiers exactly the
same in the new Select Symbols
Options Tier Schedule. The proposed
fee changes are in respect of the Fee to
Add Liquidity when BX Options Market
Maker trades with Customer. Each of the
Tier 1, 2, and 3 changes is a modest fee
increase from the current schedule, not
exceeding two pennies. The Tier 4
change is a fee decrease from the current
fee schedule in order to further promote
liquidity on the Exchange.37 The
Exchange also proposes to change one
explanatory note applicable to the
Select Symbols to make it fee liable.
The proposed rule change is
reasonable because it continues to
36 See id. at 539 (quoting Securities Exchange [sic]
Release No. 59039 (December 2, 2008), 73 FR 74770
(December 9, 2008) (SR–NYSEArca–2006–21) at 73
FR at 74782–74783).
37 Tier 4 is updated from the current SPY Options
Tier Schedule to give additional ways to achieve
the tier requirements through specified PRISM
volume as well as options volume.
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18:11 Mar 15, 2016
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encourage market participant behavior
through the fees and rebates system,
which is an accepted methodology
among options exchanges.38 Converting
SPY Options Tier Schedule to the Select
Symbols Options Tier Schedule is
reasonable because of the nature of
Select Symbol options, which are the
most heavily traded options on the
Exchange as well as in the industry. By
expanding from SPY Options to Select
Symbol Options, the Exchange is further
promoting options liquidity [sic] the
Exchange.
The Exchange believes that the
proposed Select Symbol Options Tier
Schedule is reasonable because it is not
a novel, untested structure but rather is
similar to what is offered by other
options markets, such as MIAX, and is
based on the Exchange’s existing SPY
Options Tier Schedule. The proposed
Tiers in the Select Symbols Options Tier
Schedule clearly reflect the
progressively increasing nature of
Participant executions structured for the
purpose of attracting order flow to the
Exchange. This encourages market
participant behavior through
progressive tiered fees and rebates using
an accepted methodology among
options exchanges.39
Tier 1 in the Select Symbols Options
Tier Schedule is, similarly to Tier 1 in
the current SPY Options Tier Schedule,
set up to enable a Participant to earn a
Rebate to Add Liquidity or pay a Fee to
Add Liquidity in Select Symbols where
the Participant executes less than 0.05%
of total industry customer equity and
ETF option ADV contracts per month.
Tier 2 in the Select Symbols Options
Tier Schedule is, similarly to Tier 2 in
the current SPY Options Tier Schedule,
set up to enable a Participant to earn a
Rebate to Add Liquidity or pay a Fee to
Add Liquidity in the Select Symbols
where the Participant executes 0.05% to
less than 0.15% of total industry
customer equity and ETF option ADV
contracts per month.
And Tier 3 in the Select Symbols
Options Tier Schedule is, similarly to
Tier 3 in the SPY Options Tier
Schedule, set up to enable a Participant
to earn a Rebate to Add Liquidity or pay
a Fee to Add Liquidity in the Select
Symbols to Participant [sic] executes
0.15% or more of total industry
customer equity and ETF option ADV
contracts per month. The fees and
rebates that BX Options Market Makers
and Customers are assessed are, as has
38 See, e.g., fee and rebate schedules of other
options exchanges, including, but not limited to,
NASDAQ Options Market (‘‘NOM’’), NASDAQ
PHLX LLC (‘‘Phlx’’), and Chicago Board Options
Exchange (‘‘CBOE’’).
39 Id.
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been discussed, almost all comparable
to the fees and rebates in the SPY
Options Tier Schedule.
The Exchange believes that it is
reasonable to also adjust the current
Tier 4 in the SPY Options Tier Schedule
as reflected in the new Tier 4 in the
Select Symbols Options Tier Schedule,
in order to enable a Participant to earn
a Rebate to Add Liquidity or pay a Fee
to Add Liquidity in Select Symbols
where the Participant executes more
than 10,000 PRISM Agency Contracts
per month; or Participant executes BX
Options Market Maker volume of 0.30%
or more of total industry customer
equity and ETF options ADV per month.
By so doing, the Exchange encourages
Participants to trade PRISM and/or
make markets on the exchange.
In addition, the Exchange believes
that making changes to add the Select
Symbols Options Tier Schedule in terms
of Rebate to Add Liquidity and Fee to
Add Liquidity, and Rebate to Remove
Liquidity and Fee to Remove Liquidity,
is reasonable because it encourages the
desired Customer behavior by attracting
Customer interest in Select Symbols to
the Exchange. Customer activity
enhances liquidity on the Exchange for
the benefit of all market participants
and benefits all market participants by
providing more trading opportunities,
which attracts market makers. An
increase in the activity of these market
participants in turn facilitates tighter
spreads, which may cause an additional
corresponding increase in order flow
from other market participants.
The Select Symbols Options Tier
Schedule is reasonable in that it is,
similarly to the current SPY Options
Tier Schedule, set up to incentivize
Participants to direct liquidity to the
Exchange; using volume from all
products listed on BX Options will
further incentivize Participants. As
Participants execute more of total
industry customer equity and ETF
option ADV contracts per month on the
Exchange, they can in certain categories
earn higher rebates and be assessed
lower fees. For example, in the Select
Symbols Options Tier Schedule the Tier
3 Rebate to Add Liquidity when
Customer trading with Non-Customer,
BX Options Market Maker, or Firm is
higher ($0.20) than the Tier 1 Rebate to
Add Liquidity ($0.00); and the Tier 3
Rebate to Remove Liquidity when
Customer trading with Non-Customer,
BX Options Market Maker, Customer, or
Firm is higher ($0.37) that the Tier 2
Rebate to Remove Liquidity ($0.25).
Similarly, the proposed Fee to Add
Liquidity when BX Option Market
Maker trading with Customer is lower
for Tier 3 ($0.40) than for Tier 1 ($0.44);
E:\FR\FM\16MRN1.SGM
16MRN1
Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices
and, the Fee to Remove Liquidity when
BX Option Market Maker trading with
Customer is lower for Tier 3 ($0.39) than
for Tier 1 ($0.42).
The Exchange believes that it is
reasonable to indicate a $0.04 fee
assessment in the discussed BX Options
Market Maker explanatory note. This
explanatory note, which is currently not
fee liable for options on SPY, will be fee
liable for Select Symbols. The Exchange
believes that this is in line with its
continued effort to promote liquidity on
the Exchange while covering costs
through fees and rebates.
Establishing the Select Symbol
Options Tier Schedule is equitable and
not unfairly discriminatory. This is
because the Exchange’s proposal to
assess fees and pay rebates according to
Tiers 1, 2, 3, and 4 as proposed to be
amended will apply uniformly to all
similarly situated Participants.
Customers would earn a Rebate to Add
Liquidity and a Rebate to Remove
Liquidity according to the Tiers,40 and
BX Market Makers would be assessed a
Fee to Add Liquidity and a Fee to
Remove Liquidity according to the same
Tiers per the Select Symbols Options
Tier Schedule; and certain fees would
be the same regardless of counterparty.
The fee and rebate schedule as proposed
continues to reflect differentiation
among different market participants.
The Exchange believes that the
differentiation is equitable and not
unfairly discriminatory, as well as
reasonable, because transactions of a BX
Options Market Maker must constitute a
course of dealings reasonably calculated
to contribute to the maintenance of a
fair and orderly market, and BX Options
Market Makers should not make bids or
offers or enter into transactions that are
inconsistent with such course of
dealings. Further, all BX Options Market
Makers are designated as specialists on
BX for all purposes under the Act or
rules thereunder.41
The Exchange believes that by making
the proposed changes it is continuing to
incentivize Participants to execute more
volume on the Exchange to further
enhance liquidity in this market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange does not believe that
the proposed rule change will impose
40 Per a note to the Select Symbol Options Tier
Schedule, Customer fee to add liquidity in Select
Symbols Options when contra to another Customer
is $0.33 per contract. The only change in this note,
which is currently applicable to the SPY Options
Tier Schedule, is that the note will be applicable
to the Select Symbol Options Tier Schedule.
41 See Chapter VII, Section 5, entitled
‘‘Obligations of Market Makers.’’
VerDate Sep<11>2014
18:11 Mar 15, 2016
Jkt 238001
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange does not believe that its
proposal to make changes to its Penny
Pilot Options to establish a Select
Symbols Options Tiers Schedule will
impose any undue burden on
competition, as discussed below.
The Exchange operates in a highly
competitive market in which many
sophisticated and knowledgeable
market participants can readily and do
send order flow to competing exchanges
if they deem fee levels or rebate
incentives at a particular exchange to be
excessive or inadequate. Additionally,
new competitors have entered the
market and still others are reportedly
entering the market shortly. These
market forces ensure that the Exchange’s
fees and rebates remain competitive
with the fee structures at other trading
platforms. In that sense, the Exchange’s
proposal is actually pro-competitive
because the Exchange is simply
continuing its fees and rebates for Penny
Pilot Options and establishing a Select
Symbols Options Tiers Schedule in
order to remain competitive in the
current environment.
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. In terms of
inter-market competition, the Exchange
notes that it operates in a highly
competitive market in which market
participants can readily favor competing
venues if they deem fee levels at a
particular venue to be excessive, or
rebate opportunities available at other
venues to be more favorable. In such an
environment, the Exchange must
continually adjust its fees to remain
competitive with other exchanges and
with alternative trading systems that
have been exempted from compliance
with the statutory standards applicable
to exchanges. Because competitors are
free to modify their own fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited.
In terms of intra-market competition,
the Exchange notes that price
differentiation among different market
participants operating on the Exchange
(e.g., Customer and BX Options Market
Maker) is reasonable. Customer activity,
for example, enhances liquidity on the
Exchange for the benefit of all market
participants and benefits all market
participants by providing more trading
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
14159
opportunities, which attracts market
makers. An increase in the activity of
these market participants (particularly
in response to pricing) in turn facilitates
tighter spreads, which may cause an
additional corresponding increase in
order flow from other market
participants.
Moreover, unlike others market
participants each BX Options Market
Maker commits to various obligations.
These obligations include, for example,
transactions of a BX Market Maker must
constitute a course of dealings
reasonably calculated to contribute to
the maintenance of a fair and orderly
market, and Market Makers should not
make bids or offers or enter into
transactions that are inconsistent with
such course of dealings.42 In this
instance, the proposed changes to the
fees and rebates to establish a Select
Symbols Options Tiers Schedule, does
not impose a burden on competition
because the Exchange’s execution and
routing services are completely
voluntary and subject to extensive
competition both from other exchanges
and from off-exchange venues. If the
changes proposed herein are
unattractive to market participants, it is
likely that the Exchange will lose
market share as a result. Accordingly,
the Exchange does not believe that the
proposed changes will impair the ability
of members or competing order
execution venues to maintain their
competitive standing in the financial
markets. Additionally, the changes
proposed herein are pro-competitive to
the extent that they continue to allow
the Exchange to promote and maintain
order executions.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of
the Act,43 the Exchange has designated
this proposal as establishing or changing
a due, fee, or other charge imposed by
the self-regulatory organization on any
person, whether or not the person is a
member of the self-regulatory
organization, which renders the
proposed rule change effective upon
filing.
At any time within 60 days of the
filing of the proposed rule change, the
42 See
43 15
E:\FR\FM\16MRN1.SGM
Chapter VII, Section 5.
U.S.C. 78s(b)(3)(A)(ii).
16MRN1
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Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Notices
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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
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–
BX–2016–016 on the subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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–BX–2016–016. 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
18:11 Mar 15, 2016
Jkt 238001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.44
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–05854 Filed 3–15–16; 8:45 am]
BILLING CODE 8011–01–P
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:
VerDate Sep<11>2014
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–BX–2016–016 and should
be submitted on or before April 6, 2016.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77341; File No. SR–Phlx–
2015–94]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing of Amendment No. 1 and Order
Granting Accelerated Approval of
Proposed Rule Change, as Modified by
Amendment No. 1, to Make Permanent
the Pilot Program Eliminating Minimum
Value Sizes for Opening Transactions
in New Series of FLEX Options
March 10, 2016.
I. Introduction
On November 25, 2015, NASDAQ
OMX PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
make permanent its pilot program
(‘‘Pilot Program’’) eliminating minimum
value sizes for requests for quotes
(‘‘RFQs’’) for opening transactions in
new series of flexible exchange options
(‘‘FLEX Options’’ or ‘‘FLEX’’). The
proposed rule change was published for
comment in the Federal Register on
December 14, 2015.3 The Commission
received no comments on the proposal.
On January 28, 2016, the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.4 The Exchange filed
Amendment No. 1 to the proposed rule
44 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 76593
(December 8, 2015), 80 FR 77399 (‘‘Notice’’).
4 See Securities Exchange Act Release No. 76989,
81 FR 5811 (February 3, 2016). The Commission
designated March 13, 2016, as the date by which
it should approve, disapprove, or institute
proceedings to determine whether to disapprove the
proposed rule change.
1 15
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
change on February 22, 2016, in order
to transmit an updated pilot report that
supplements Exhibit 3 to the filing, and
to provide additional information
regarding transactions covered by the
Pilot Program and FLEX Option trading
on the Exchange.5 The Commission is
publishing this notice to solicit
comments on Amendment No. 1 from
interested persons and is approving the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
II. Description of the Amended
Proposal
FLEX Options, unlike traditional
standardized options, allow investors to
customize basic option terms, including
size, expiration date, exercise style, and
certain exercise prices.6 Pursuant to
Commentary .01 to Rule 1079, the
Exchange currently has in place a Pilot
Program under which the minimum size
requirements set forth in Rules
1079(a)(8)(A)(i) and (ii), which apply to
RFQs for opening transactions in new
series of FLEX Options, are eliminated.7
Prior to the Pilot Program, pursuant to
Rules 1079(a)(8)(A)(i) and (ii), the
minimum value size for a RFQ for an
5 The Exchange attached an Exhibit 3 to its
proposed rule change that contains an initial report
summarizing pilot data collected for the period
December 1, 2014 through July 31, 2015.
Specifically, the report summarizes the trading
volume and underlying value of opening
transactions in new series of FLEX Options with a
size below the minimum value thresholds in force
before the pilot, as well as the types of customers
initiating such transactions. In Amendment No. 1,
the Exchange submitted an updated report as an
amendment to Exhibit 3 that supplements the
original Exhibit 3 with summary pilot data for the
period August 1, 2015 through December 31, 2015
(together with the initial report, ‘‘Pilot Report’’). In
addition, in Amendment No. 1 the Exchange
compares the total volume and value of opening
transactions in new series of FLEX Options covered
by the Pilot Program during the period December
2014 through December 2015 to the total volume
and value of all opening FLEX Option transactions
in new series during the same period. Further, in
Amendment No. 1 the Exchange also compares the
Exchange’s FLEX Option trading volume to the
Exchange’s overall, combined trading volume for
standardized options and FLEX Options.
6 See Notice; see also Phlx Rule (‘‘Rule’’) 1079.
FLEX equity, FLEX index, and FLEX currency
options are traded on the Exchange, but the Pilot
Program encompasses only FLEX equity and FLEX
index options, and does not encompass FLEX
currency options. See Notice; Commentary .01 to
Rule 1079; References to ‘‘FLEX Options’’ or
‘‘FLEX’’ for purposes of this filing are meant to refer
only to FLEX equity and FLEX index options.
7 See Commentary .01 to Rule 1079; see also
Securities Exchange Act Release Nos. 62900
(September 13, 2010), 75 FR 57098 (September 17,
2010) (SR–Phlx–2010–123) (establishing Pilot
Program); and 77153 (February 17, 2016) 81 FR
9039 (February 23, 2016) (SR–Phlx–2016–19)
(extending Pilot Program until the earlier of March
15, 2016, or approval of the Pilot Program on a
permanent basis). The term ‘‘request for quotes’’ is
defined in Rule 1079(a)(11).
E:\FR\FM\16MRN1.SGM
16MRN1
]]>Agencies
[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Notices]
[Pages 14155-14160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05854]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77339; File No. SR-BX-2016-016]
Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding Fees and
Rebates To Adopt the Select Symbols Options Tier Schedule
March 10, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 1, 2016, NASDAQ BX, Inc. (``BX'' or ``Exchange'') \3\ filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III, below,
which Items have been prepared by the Exchange. 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\ The Exchange notes that it has legally changed its name to
NASDAQ BX, Inc. with the state of Delaware and filed Form 1
reflecting the change, and is in the process of changing its rules
to reflect the new name.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Options Pricing at Chapter XV
Section 2, entitled ``BX Options Market--Fees and Rebates,'' which
governs pricing for BX members using the BX Options Market (``BX
Options''). The Exchange proposes to modify certain fees and rebates
(per executed contract) to adopt the Select Symbol Options Tier
Schedule for certain Penny Pilot \4\ Options (each a ``Select Symbol''
and together the ``Select Symbols'').
---------------------------------------------------------------------------
\4\ The Penny Pilot was established in June 2012 and extended in
2015. See Securities Exchange Act Release Nos. 67256 (June 26,
2012), 77 FR 39277 (July 2, 2012) (SR-BX-2012-030) (order approving
BX option rules and establishing Penny Pilot); and 75326 (June 29,
2015), 80 FR 38481 (July 6, 2015) (SR-BX-2015-037) (notice of filing
and immediate effectiveness extending the Penny Pilot through June
30, 2016).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqomxbx.cchwallstreet.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 aspects 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 proposes to amend its Chapter XV, Section 2, to modify
certain fees and rebates \5\ to adopt the Select Symbol Options Tier
Schedule for certain Penny Pilot Options. The proposed Select Symbol
Options Tier Schedule would apply to Customers,\6\ BX Options Market
Makers,\7\ Non-Customers,\8\ and Firms.\9\
---------------------------------------------------------------------------
\5\ Fees and rebates are per executed contract. BX Chapter XV,
Section 2(1).
\6\ The term ``Customer'' or (``C'') applies to any transaction
that is identified by a Participant for clearing in the Customer
range at The Options Clearing Corporation (``OCC'') which is not for
the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Chapter I, Section
1(a)(48)). BX Chapter XV.
\7\ BX Options Market Makers may also be referred to as ``Market
Makers''. The term ``BX Options Market Maker'' or (``M'') means a
Participant that has registered as a Market Maker on BX Options
pursuant to Chapter VII, Section 2, and must also remain in good
standing pursuant to Chapter VII, Section 4. In order to receive
Market Maker pricing in all securities, the Participant must be
registered as a BX Options Market Maker in at least one security. BX
Chapter XV.
\8\ Note 1 to Chapter XV, Section 2, states: ``\1\ A Non-
Customer includes a Professional, Broker-Dealer and Non-BX Options
Market Maker.''
\9\ The term ``Firm'' or (``F'') applies to any transaction that
is identified by a Participant for clearing in the Firm range at
OCC. BX Chapter XV.
---------------------------------------------------------------------------
Currently, Chapter XV, Section 2, subsection (1), contains a SPY
\10\ Options Tier Schedule (``SPY Schedule'') that has four tiers. The
Exchange proposes to convert the SPY Schedule into the Select Symbols
Options Tier Schedule, as discussed in detail below.
---------------------------------------------------------------------------
\10\ ``SPY'' or Standard and Poor's Depositary Receipts/SPDRs
options are Penny Pilot Options that are based on the SPDR exchange-
traded fund (``ETF''), which is designed to track the performance of
the S&P 500.
---------------------------------------------------------------------------
Change 1--Penny Pilot Options: Modify Fees and Rebates To Add the
Select Symbols Options Tier Schedule
In Change 1, the Exchange proposes modifications to convert its
current SPY Schedule to the Select Symbols Options Tier Schedule. The
proposed change keeps the great majority of the current SPY Schedule
fees and rebates assessments (twelve out of sixteen) and tiers (three
out of four) exactly the same in the new Select Symbols Options Tier
Schedule; and updates the fees and rebates schedule to indicate
``Select Symbols'' rather than ``SPY.''
Specifically, the Exchange proposes, commensurate with renaming the
SPY Options Tier Schedule the Select Symbols Options Tier Schedule, to
set forth the BX Options Select Symbol List. The Select Symbols \11\ on
this list represent, similarly to SPY, some of the highest volume Penny
Pilot Options traded on the Exchange and in the U.S. The proposed
Select Symbols are similar to those of other options exchanges (e.g.,
the MIAX Options Exchange (``MIAX'').\12\ Like the SPY
[[Page 14156]]
Options Tier Schedule, the Select Symbols Options Tier Schedule will
have four tiers.
---------------------------------------------------------------------------
\11\ The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA,
EWJ, EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG,
IWM, IYR, KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SPY, SRS,
SSO, TBT, TLT, TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB,
XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT.
\12\ See MIAX fee schedule at https://www.miaxoptions.com/sites/default/files/fee-schedules/MIAX_Options_Fee_Schedule_10012015.pdf.
---------------------------------------------------------------------------
Proposed Tier 1 in the Select Symbols Options Tier Schedule, which
has the same requirements as the current Tier I in the SPY Options Tier
Schedule will be where a BX Participant (``Participant'') executes less
than 0.05% of total industry customer equity and exchange traded fund
(``ETF'') option average daily volume (``ADV'') contracts per month.
Proposed Tier 1 will range from a $0.00 rebate to a $0.44 fee:
--The Rebate to Add Liquidity when Customer trading with Non-Customer,
BX Options Market Maker, or Firm will be $0.00 (no rebate will be
paid); \13\
---------------------------------------------------------------------------
\13\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the Fee to Add Liquidity when BX Options Market Maker trading with
Customer will be $0.44; \14\
---------------------------------------------------------------------------
\14\ Proposed $0.44 is a modest fee increase from the current
SPY Options Tier Schedule, which is $0.42.
---------------------------------------------------------------------------
--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, Customer, or Firm will be $0.00;
\15\ and
---------------------------------------------------------------------------
\15\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the Fee to Remove Liquidity when BX Options Market Maker trading with
Customer will be $0.42.\16\
\16\ This is the same as the fee in the current SPY Options Tier
Schedule.
---------------------------------------------------------------------------
Proposed Tier 2 in the Select Symbols Options Tier Schedule, which
has the same requirements as current Tier 2 in the SPY Options Tier
Schedule, will be where Participant executes 0.05% to less than 0.15%
of total industry customer equity and ETF option ADV contracts per
month. Proposed Tier 2 will range from a $0.25 rebate to a $0.44 fee:
--The new Rebate to Add Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Firm will be $0.10; \17\
---------------------------------------------------------------------------
\17\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the new Fee to Add Liquidity when BX Options Market Maker trading
with Customer will be $0.44; \18\
---------------------------------------------------------------------------
\18\ Proposed $0.44 is a modest fee increase from the current
SPY Options Tier Schedule, which is $0.42.
---------------------------------------------------------------------------
--the new Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, Customer, or Firm will be $0.25;
\19\ and
---------------------------------------------------------------------------
\19\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the new Fee to Remove Liquidity when BX Options Market Maker trading
with Customer will be $0.42.\20\
\20\ This is the same as the fee in the current SPY Options Tier
Schedule.
---------------------------------------------------------------------------
Proposed Tier 3 in the Select Symbols Options Tier Schedule, which
has the same requirements the current Tier 3 in the SPY Options Tier
Schedule, will be where Participant executes 0.15% or more of total
industry customer equity and ETF option ADV contracts per month.
Proposed Tier 3 will range from a $0.37 rebate to a $0.40 fee:
--The new Rebate to Add Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Firm will be $0.20; \21\
---------------------------------------------------------------------------
\21\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the new Fee to Add Liquidity when BX Options Market Maker trading
with Customer will be $0.40; \22\
---------------------------------------------------------------------------
\22\ Proposed $0.40 is a modest fee increase from the current
SPY Options Tier Schedule, which is $0.39.
---------------------------------------------------------------------------
--the new Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, Customer, or Firm will be $0.37;
\23\ and
---------------------------------------------------------------------------
\23\ This is the same as the rebate in the current SPY Options
Tier Schedule.
---------------------------------------------------------------------------
--the new Fee to Remove Liquidity when BX Options Market Maker trading
with Customer will be $0.39.\24\
---------------------------------------------------------------------------
\24\ This is the same as the fee in the current SPY Options Tier
Schedule.
Proposed Tier 4 in the Select Symbols Options Tier Schedule, which
is modified from the current Tier 4 in the SPY Options Tier Schedule,
will be where Participant executes more than 10,000 BX Price
Improvement Auction (``PRISM'') \25\ Agency Contracts per month; or
Participant executes BX Options Market Maker volume of 0.30% or more of
total industry customer equity and ETF options ADV per month. If a
Participant qualifies for Tier 4 the rates applicable to this tier will
supersede any other Select Symbols tier rates that the Participant may
qualify for. Proposed Tier 4 will range from a $0.37 rebate to a $0.29
fee:
---------------------------------------------------------------------------
\25\ PRISM is a Price Improvement Mechanism for all-electronic
BX Options whereby a buy and sell order may be submitted in one
order message to initiate an auction at a stop price and seek
potential price improvement. Options are traded electronically on BX
Options, and all options participants may respond to a PRISM
Auction, the duration of which is set at 200 milliseconds. PRISM
includes auto-match functionality in which a Participant (an
``Initiating Participant'') may electronically submit for execution
an order it represents as agent on behalf of customer, broker
dealer, or any other entity (``PRISM Order'') against principal
interest or against any other order it represents as agent (an
``Initiating Order'') provided it submits the PRISM Order for
electronic execution into the PRISM Auction pursuant [sic]. See
Chapter VI, Section 9; and Securities Exchange Act Release No. 76301
(October 29, 2015), 80 FR 68347 (November 4, 2015) (SR-BX-2015-032)
(order approving BX PRISM).
--The new Rebate to Add Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Firm will be $0.25; \26\
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\26\ This is the same as the rebate in the current SPY Options
Tier Schedule.
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--the new Fee to Add Liquidity when BX Options Market Maker trading
with Customer will be $0.29; \27\
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\27\ Proposed $0.29 is, in order to further promote liquidity on
the Exchange, a modest fee decrease from the current SPY Options
Tier Schedule, which is $0.32.
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--the new Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, Customer, or Firm will be $0.37;
\28\ and
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\28\ This is the same as the rebate in the current SPY Options
Tier Schedule.
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--the new Fee to Remove Liquidity when BX Options Market Maker trading
with Customer will be $0.25.\29\
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\29\ This is the same as the fee in the current SPY Options Tier
Schedule.
In addition, there are currently six explanatory notes in the SPY
Options Tier Schedule. In each such note the Exchange will, as
elsewhere in the fees and rebates schedule, replace ``SPY'' with
``Select Symbols.'' The Exchange proposes to also establish a fee on
one note that is not currently fee liable in the SPY Options Tier
Schedule. Specifically, the Exchange proposes to state that BX Options
Market Maker fee to add liquidity in SPY [sic] Options will be $0.04
when trading with Firm, Non-Customer, or BX Options Market Maker.
Chapter XV, Section 2 subsection (1) reflecting the proposed Select
Symbols Options Tier Schedule will read as follows:
Sec. 2 BX Options Market--Fees and Rebates
The following charges shall apply to the use of the order execution
and routing services of the BX Options market for all securities.
(1) Fees for Execution of Contracts on the BX Options Market:
* * * * *
[[Page 14157]]
Select Symbols Options Tier Schedule
----------------------------------------------------------------------------------------------------------------
Rebate to add Fee to add Rebate to remove Fee to remove
liquidity liquidity liquidity liquidity
----------------------------------------------------------------------------------------------------------------
When: Customer BX Options Customer BX Options
market maker market maker
----------------------------------------------------------------------------------------------------------------
Trading with: Non-Customer, Customer Non-Customer, Customer
BX options BX options
market maker, market maker,
or firm customer,
or firm
----------------------------------------------------------------------------------------------------------------
Tier 1:
Participant executes less than 0.05% $0.00 $0.44 $0.00 $0.42
of total industry customer equity and
ETF option ADV contracts per month...
Tier 2:
Participant executes 0.05% to less 0.10 0.44 0.25 0.42
than 0.15% of total industry customer
equity and ETF option ADV contracts
per month............................
Tier 3:
Participant executes 0.15% or more of 0.20 0.40 0.37 0.39
total industry customer equity and
ETF option ADV contracts per month...
Tier 4:
Participant executes more than 10,000 0.25 0.29 0.37 0.25
PRISM Agency Contracts per month; or
Participant executes BX Options
Market Maker volume of 0.30% or more
of total industry customer equity and
ETF options ADV per month............
----------------------------------------------------------------------------------------------------------------
BX Options Select Symbol List
The following are Select Symbols: ASHR, DIA, DXJ, EEM, EFA, EWJ,
EWT, EWW, EWY, EWZ, FAS, FAZ, FXE, FXI, FXP, GDX, GLD, HYG, IWM, IYR,
KRE, OIH, QID, QLD, QQQ, RSX, SDS, SKF, SLV, SPY, SRS, SSO, TBT, TLT,
TNA, TZA, UNG, URE, USO, UUP, UVXY, UYG, VXX, XHB, XLB, XLE, XLF, XLI,
XLK, XLP, XLU, XLV, XLY, XME, XOP, XRT
BX Options Market Maker fee to add liquidity in Select
Symbols Options will be $0.04 when trading with Firm, Non-Customer, or
BX Options Market Maker.
Firm fee to add liquidity and fee to remove liquidity in
Select Symbols Options will be $0.33 per contract, regardless of
counterparty.
Non-Customer fee to add liquidity and fee to remove
liquidity in Select Symbols Options will be $0.46 per contract,
regardless of counterparty.
BX Options Market Maker fee to remove liquidity in Select
Symbols Options will be $0.46 per contract when trading with Firm, Non-
Customer, or BX Options Market Maker.
Customer fee to add liquidity in Select Symbols Options
when contra to another Customer is $0.33 per contract.
Volume from all products listed on BX Options will apply
to the Select Symbols Options Tiers.
* * * * *
The Exchange is proposing fees and rebate changes and adopting the
Select Symbols Options Tier Schedule at this time because it believes
that this will provide incentives for execution of contracts, and in
particular Select Symbols Options contracts, on the BX Options Market.
The Exchange also believes that its proposal should provide
increased opportunities for participation in executions on the
Exchange, facilitating the ability of the Exchange to bring together
participants and encourage more robust competition for orders.
2. Statutory Basis
The Exchange believes that its proposal to amend its Pricing
Schedule is consistent with Section 6(b) of the Act,\30\ in general,
and furthers the objectives of Section 6(b)(4) and (b)(5) of the
Act,\31\ in particular, in that it provides for the equitable
allocation of reasonable dues, fees and other charges among members and
issuers and other persons using any facility or system which the
Exchange operates or controls, and is not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers.
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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(4), (5).
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The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \32\
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\32\ Securities Exchange Act Release No. 51808 at 37499 (June 9,
2005) (``Regulation NMS Adopting Release'').
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Likewise, in NetCoalition v. Securities and Exchange Commission
\33\ (``NetCoalition'') the DC Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\34\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \35\
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\33\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
\34\ See id. at 534-535.
\35\ See id. at 537.
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Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker
[[Page 14158]]
dealers'. . . .'' \36\ Although the court and the SEC were discussing
the cash equities markets, the Exchange believes that these views apply
with equal force to the options markets.
---------------------------------------------------------------------------
\36\ See id. at 539 (quoting Securities Exchange [sic] Release
No. 59039 (December 2, 2008), 73 FR 74770 (December 9, 2008) (SR-
NYSEArca-2006-21) at 73 FR at 74782-74783).
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The Exchange proposes to amend its Chapter XV, Section 2 to modify
certain fees and rebates to adopt the Select Symbol Options Tier
Schedule for certain Penny Pilot Options. The proposed modified fees
and rebates and new Select Symbols Options Tier Schedule would, as
discussed, apply to Customers, BX Options Market Makers, Non-Customers,
and Firms. The Exchange believes that its proposal is reasonable,
equitable, and not unfairly discriminatory and should provide increased
opportunities for participation in executions on the Exchange,
facilitating the ability of the Exchange to bring together participants
and encourage more robust competition for orders.
Change 1--Penny Pilot Options: Modify Fees and Rebates To Add the
Select Symbols Options Tier Schedule
In Change 1, the Exchange proposes to convert its current SPY
Options Tier Schedule to the Select Symbols Options Tier Schedule and
to set forth the BX Options Select Symbol List. The Select Symbols on
this list represent, similarly to SPY, some of the highest volume Penny
Pilot Options traded on the Exchange and in the U.S and are similar to
those of other options exchanges (e.g., the MIAX).
As discussed, the proposed change updates the fees and rebates
schedule to indicate ``Select Symbols'' rather than ``SPY'' and keeps
the great majority of the current SPY Schedule fees and rebates
assessments and tiers exactly the same in the new Select Symbols
Options Tier Schedule. The proposed fee changes are in respect of the
Fee to Add Liquidity when BX Options Market Maker trades with Customer.
Each of the Tier 1, 2, and 3 changes is a modest fee increase from the
current schedule, not exceeding two pennies. The Tier 4 change is a fee
decrease from the current fee schedule in order to further promote
liquidity on the Exchange.\37\ The Exchange also proposes to change one
explanatory note applicable to the Select Symbols to make it fee
liable.
---------------------------------------------------------------------------
\37\ Tier 4 is updated from the current SPY Options Tier
Schedule to give additional ways to achieve the tier requirements
through specified PRISM volume as well as options volume.
---------------------------------------------------------------------------
The proposed rule change is reasonable because it continues to
encourage market participant behavior through the fees and rebates
system, which is an accepted methodology among options exchanges.\38\
Converting SPY Options Tier Schedule to the Select Symbols Options Tier
Schedule is reasonable because of the nature of Select Symbol options,
which are the most heavily traded options on the Exchange as well as in
the industry. By expanding from SPY Options to Select Symbol Options,
the Exchange is further promoting options liquidity [sic] the Exchange.
---------------------------------------------------------------------------
\38\ See, e.g., fee and rebate schedules of other options
exchanges, including, but not limited to, NASDAQ Options Market
(``NOM''), NASDAQ PHLX LLC (``Phlx''), and Chicago Board Options
Exchange (``CBOE'').
---------------------------------------------------------------------------
The Exchange believes that the proposed Select Symbol Options Tier
Schedule is reasonable because it is not a novel, untested structure
but rather is similar to what is offered by other options markets, such
as MIAX, and is based on the Exchange's existing SPY Options Tier
Schedule. The proposed Tiers in the Select Symbols Options Tier
Schedule clearly reflect the progressively increasing nature of
Participant executions structured for the purpose of attracting order
flow to the Exchange. This encourages market participant behavior
through progressive tiered fees and rebates using an accepted
methodology among options exchanges.\39\
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\39\ Id.
---------------------------------------------------------------------------
Tier 1 in the Select Symbols Options Tier Schedule is, similarly to
Tier 1 in the current SPY Options Tier Schedule, set up to enable a
Participant to earn a Rebate to Add Liquidity or pay a Fee to Add
Liquidity in Select Symbols where the Participant executes less than
0.05% of total industry customer equity and ETF option ADV contracts
per month.
Tier 2 in the Select Symbols Options Tier Schedule is, similarly to
Tier 2 in the current SPY Options Tier Schedule, set up to enable a
Participant to earn a Rebate to Add Liquidity or pay a Fee to Add
Liquidity in the Select Symbols where the Participant executes 0.05% to
less than 0.15% of total industry customer equity and ETF option ADV
contracts per month.
And Tier 3 in the Select Symbols Options Tier Schedule is,
similarly to Tier 3 in the SPY Options Tier Schedule, set up to enable
a Participant to earn a Rebate to Add Liquidity or pay a Fee to Add
Liquidity in the Select Symbols to Participant [sic] executes 0.15% or
more of total industry customer equity and ETF option ADV contracts per
month. The fees and rebates that BX Options Market Makers and Customers
are assessed are, as has been discussed, almost all comparable to the
fees and rebates in the SPY Options Tier Schedule.
The Exchange believes that it is reasonable to also adjust the
current Tier 4 in the SPY Options Tier Schedule as reflected in the new
Tier 4 in the Select Symbols Options Tier Schedule, in order to enable
a Participant to earn a Rebate to Add Liquidity or pay a Fee to Add
Liquidity in Select Symbols where the Participant executes more than
10,000 PRISM Agency Contracts per month; or Participant executes BX
Options Market Maker volume of 0.30% or more of total industry customer
equity and ETF options ADV per month. By so doing, the Exchange
encourages Participants to trade PRISM and/or make markets on the
exchange.
In addition, the Exchange believes that making changes to add the
Select Symbols Options Tier Schedule in terms of Rebate to Add
Liquidity and Fee to Add Liquidity, and Rebate to Remove Liquidity and
Fee to Remove Liquidity, is reasonable because it encourages the
desired Customer behavior by attracting Customer interest in Select
Symbols to the Exchange. Customer activity enhances liquidity on the
Exchange for the benefit of all market participants and benefits all
market participants by providing more trading opportunities, which
attracts market makers. An increase in the activity of these market
participants in turn facilitates tighter spreads, which may cause an
additional corresponding increase in order flow from other market
participants.
The Select Symbols Options Tier Schedule is reasonable in that it
is, similarly to the current SPY Options Tier Schedule, set up to
incentivize Participants to direct liquidity to the Exchange; using
volume from all products listed on BX Options will further incentivize
Participants. As Participants execute more of total industry customer
equity and ETF option ADV contracts per month on the Exchange, they can
in certain categories earn higher rebates and be assessed lower fees.
For example, in the Select Symbols Options Tier Schedule the Tier 3
Rebate to Add Liquidity when Customer trading with Non-Customer, BX
Options Market Maker, or Firm is higher ($0.20) than the Tier 1 Rebate
to Add Liquidity ($0.00); and the Tier 3 Rebate to Remove Liquidity
when Customer trading with Non-Customer, BX Options Market Maker,
Customer, or Firm is higher ($0.37) that the Tier 2 Rebate to Remove
Liquidity ($0.25).
Similarly, the proposed Fee to Add Liquidity when BX Option Market
Maker trading with Customer is lower for Tier 3 ($0.40) than for Tier 1
($0.44);
[[Page 14159]]
and, the Fee to Remove Liquidity when BX Option Market Maker trading
with Customer is lower for Tier 3 ($0.39) than for Tier 1 ($0.42).
The Exchange believes that it is reasonable to indicate a $0.04 fee
assessment in the discussed BX Options Market Maker explanatory note.
This explanatory note, which is currently not fee liable for options on
SPY, will be fee liable for Select Symbols. The Exchange believes that
this is in line with its continued effort to promote liquidity on the
Exchange while covering costs through fees and rebates.
Establishing the Select Symbol Options Tier Schedule is equitable
and not unfairly discriminatory. This is because the Exchange's
proposal to assess fees and pay rebates according to Tiers 1, 2, 3, and
4 as proposed to be amended will apply uniformly to all similarly
situated Participants. Customers would earn a Rebate to Add Liquidity
and a Rebate to Remove Liquidity according to the Tiers,\40\ and BX
Market Makers would be assessed a Fee to Add Liquidity and a Fee to
Remove Liquidity according to the same Tiers per the Select Symbols
Options Tier Schedule; and certain fees would be the same regardless of
counterparty. The fee and rebate schedule as proposed continues to
reflect differentiation among different market participants. The
Exchange believes that the differentiation is equitable and not
unfairly discriminatory, as well as reasonable, because transactions of
a BX Options Market Maker must constitute a course of dealings
reasonably calculated to contribute to the maintenance of a fair and
orderly market, and BX Options Market Makers should not make bids or
offers or enter into transactions that are inconsistent with such
course of dealings. Further, all BX Options Market Makers are
designated as specialists on BX for all purposes under the Act or rules
thereunder.\41\
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\40\ Per a note to the Select Symbol Options Tier Schedule,
Customer fee to add liquidity in Select Symbols Options when contra
to another Customer is $0.33 per contract. The only change in this
note, which is currently applicable to the SPY Options Tier
Schedule, is that the note will be applicable to the Select Symbol
Options Tier Schedule.
\41\ See Chapter VII, Section 5, entitled ``Obligations of
Market Makers.''
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The Exchange believes that by making the proposed changes it is
continuing to incentivize Participants to execute more volume on the
Exchange to further enhance liquidity in this market.
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 not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange does
not believe that its proposal to make changes to its Penny Pilot
Options to establish a Select Symbols Options Tiers Schedule will
impose any undue burden on competition, as discussed below.
The Exchange operates in a highly competitive market in which many
sophisticated and knowledgeable market participants can readily and do
send order flow to competing exchanges if they deem fee levels or
rebate incentives at a particular exchange to be excessive or
inadequate. Additionally, new competitors have entered the market and
still others are reportedly entering the market shortly. These market
forces ensure that the Exchange's fees and rebates remain competitive
with the fee structures at other trading platforms. In that sense, the
Exchange's proposal is actually pro-competitive because the Exchange is
simply continuing its fees and rebates for Penny Pilot Options and
establishing a Select Symbols Options Tiers Schedule in order to remain
competitive in the current environment.
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. In terms of inter-market
competition, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive, or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other exchanges and with
alternative trading systems that have been exempted from compliance
with the statutory standards applicable to exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited.
In terms of intra-market competition, the Exchange notes that price
differentiation among different market participants operating on the
Exchange (e.g., Customer and BX Options Market Maker) is reasonable.
Customer activity, for example, enhances liquidity on the Exchange for
the benefit of all market participants and benefits all market
participants by providing more trading opportunities, which attracts
market makers. An increase in the activity of these market participants
(particularly in response to pricing) in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants.
Moreover, unlike others market participants each BX Options Market
Maker commits to various obligations. These obligations include, for
example, transactions of a BX Market Maker must constitute a course of
dealings reasonably calculated to contribute to the maintenance of a
fair and orderly market, and Market Makers should not make bids or
offers or enter into transactions that are inconsistent with such
course of dealings.\42\ In this instance, the proposed changes to the
fees and rebates to establish a Select Symbols Options Tiers Schedule,
does not impose a burden on competition because the Exchange's
execution and routing services are completely voluntary and subject to
extensive competition both from other exchanges and from off-exchange
venues. If the changes proposed herein are unattractive to market
participants, it is likely that the Exchange will lose market share as
a result. Accordingly, the Exchange does not believe that the proposed
changes will impair the ability of members or competing order execution
venues to maintain their competitive standing in the financial markets.
Additionally, the changes proposed herein are pro-competitive to the
extent that they continue to allow the Exchange to promote and maintain
order executions.
---------------------------------------------------------------------------
\42\ See Chapter VII, Section 5.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A)(ii) of the Act,\43\ the Exchange
has designated this proposal as establishing or changing a due, fee, or
other charge imposed by the self-regulatory organization on any person,
whether or not the person is a member of the self-regulatory
organization, which renders the proposed rule change effective upon
filing.
---------------------------------------------------------------------------
\43\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the
[[Page 14160]]
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) 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-BX-2016-016 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-BX-2016-016. 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-BX-2016-016 and
should be submitted on or before April 6, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
---------------------------------------------------------------------------
\44\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05854 Filed 3-15-16; 8:45 am]
BILLING CODE 8011-01-P
