Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees, 29598-29600 [2016-11155]
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29598
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
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–
NASDAQ–2016–064 on the subject line.
Paper Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
• 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–NASDAQ–2016–064. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing will also be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2016–064 and should be
submitted on or before June 2, 2016.
31 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11156 Filed 5–11–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77780; File No. SRBatsEDGX–2016–13]
Self-Regulatory Organizations; Bats
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Related to Fees
May 6, 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 April 29,
2016, Bats EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to EDGX Rules
15.1(a) and (c).
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)(ii).
4 17 CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
2 17
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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 determines the
liquidity adding rebate that it will
provide to Members using the
Exchange’s tiered pricing structure.
Currently, the Exchange provides a
$0.0027 per share rebate under footnote
2 of the Fee Schedule for a Member that
adds an ADV 6 of at least 0.02% of the
TCV 7 in Tape B securities for orders
that yield fee codes B and 4.8 The
Exchange currently has only one Tape B
Volume Tier.
The Exchange now proposes to amend
the Tape B Volume Tier to add an
additional Tape B Volume Tier to
provide two Tape B Volume Tiers. The
Exchange proposes that the current
Tape B Volume Tier be renamed Tape
B Volume Tier 1. The Exchange
proposes that the rebate and the
required criteria for Tape B Volume Tier
1 remain substantively the same as the
current Tape B Volume Tier. The
Exchange also proposes a second Tape
B Volume Tier named ‘‘Tape B Volume
Tier 2.’’ The Exchange proposes to
provide a rebate per share of $0.0030
pursuant to the Tier and proposes the
required criteria to be that a Member
adds an ADV of at least 0.15% of the
TCV in Tape B securities. To
accommodate this proposed change in
its Fee Schedule, the Exchange proposes
adding an additional row to the Tape B
Volume Tier table to list the Tape B
Volume Tier 2. The Exchange also
proposes adding an additional column
to separate Tape B Volume Tier 1 and
Tape B Volume Tier 2. Finally, the
Exchange proposes stating as a
precursor that both Tape B Volume
6 As
defined on the Exchange’s Fee Schedule.
7 Id.
8 See Securities Exchange Act Release No. 76816
(January 4, 2016, 81 FR 987 (January 8, 2016) (SR–
EDGX–2015–67).
E:\FR\FM\12MYN1.SGM
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Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
Tiers are applicable to orders yielding
fee codes B and 4 and removing the
same statement from the current text
describing Tape B Volume Tier 1.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Implementation Date
The Exchange proposes to implement
this amendment to its Fee Schedule
effective May 2, 2016.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,9
in general, and furthers the objectives of
Section 6(b)(4),10 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities. The
Exchange also notes that it operates in
a highly-competitive market in which
market participants can readily direct
order flow to competing venues if they
deem fee levels at a particular venue to
be excessive. The proposed rule changes
reflect a competitive pricing structure
designed to incent market participants
to direct their order flow to the
Exchange. The Exchange believes that
the proposed amendments to the Tape
B Volume Tier are equitable and nondiscriminatory in they would apply
uniformly to all Members. The
Exchange believes the rate remains
competitive with those charged by other
venues and, therefore, reasonable and
equitably allocated to Members.
Volume-based rebates such as that
proposed herein have been widely
adopted by exchanges, including the
Exchange, and are equitable because
they are open to all Members on an
equal basis and provide additional
benefits or discounts that are reasonably
related to: (i) The value to an exchange’s
market quality; (ii) associated higher
levels of market activity, such as higher
levels of liquidity provision and/or
growth patterns; and (iii) introduction of
higher volumes of orders into the price
and volume discovery processes. The
Exchange believes that the proposal is a
reasonable, fair and equitable, and not
unfairly discriminatory allocation of
fees and rebates because it will provide
Members with an additional incentive
to reach certain thresholds on the
Exchange.
In particular, the Exchange believes
the addition of the proposed second,
higher Tape B Volume Tier 2 is a
reasonable means to encourage
Members to increase the liquidity they
provide on the Exchange. Further,
Members will still be able to earn the
9 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
17:02 May 11, 2016
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe its
proposed amendment to its Fee
Schedule would impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. The Exchange does
not believe that the proposed change
represents a significant departure from
previous pricing offered by the
Exchange or pricing offered by the
Exchange’s competitors. Additionally,
Members may opt to disfavor the
Exchange’s pricing if they believe that
alternatives offer them better value. The
Exchange does not believe that the
proposed additional tier would burden
competition, but instead, enhances
competition, as it is intended to increase
the competitiveness of and draw
additional volume to the Exchange. The
Exchange does not believe the amended
tier would burden intramarket
competition as it would apply to all
Members uniformly. Accordingly, the
Exchange does not believe that the
proposed change will impair the ability
of Members or competing venues to
maintain their competitive standing in
the financial markets.
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.
11 The EDGX Book is the System’s electronic file
of orders. See Exchange Rule 1.5(d).
10 15
VerDate Sep<11>2014
currently offered rebate under Tape B
Volume Tier 1. The addition of a
second, higher tier merely incentivizes
a Member to provide even greater
liquidity. The Exchange further believes
that the amendment to the Tape B
Volume Tier represents an equitable
allocation of reasonable dues, fees, and
other charges because the thresholds
necessary to achieve the tier continue to
encourage Members to add displayed
liquidity to the EDGX Book 11 each
month. The increased liquidity benefits
all investors by deepening EDGX’s
liquidity pool, offering additional
flexibility for all investors to enjoy cost
savings, supporting the quality of price
discovery, promoting market
transparency and improving investor
protection.
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29599
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 thereunder.13 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
BatsEDGX–2016–13 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-BatsEDGX–2016–13. 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
12 15
13 17
E:\FR\FM\12MYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
12MYN1
29600
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
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 SRBatsEDGX–2016–13, and should be
submitted on or before June 2, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11155 Filed 5–11–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Release No. 34–77782; File Nos. SR–NYSE–
2016–14; SR–NYSEArca–2016–25; SR–
NYSEMKT–2016–20]
Self-Regulatory Organizations; New
York Stock Exchange LLC; NYSE Arca,
Inc.; NYSE MKT LLC; Order Approving
Proposed Rule Change Amending and
Restating the Fifth Amended and
Restated Bylaws of the Exchanges’
Ultimate Parent Company,
Intercontinental Exchange, Inc., To
Implement Proxy Access
May 6, 2016.
I. Introduction
asabaliauskas on DSK3SPTVN1PROD with NOTICES
On March 2, 2016, each of the New
York Stock Exchange LLC (‘‘NYSE’’),
NYSE Arca, Inc. (‘‘NYSE Arca’’) and
NYSE MKT LLC (‘‘NYSE MKT’’ and,
together with NYSE and NYSE Arca,
‘‘Exchanges’’) 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
amend and restate the Fifth Amended
and Restated Bylaws (‘‘Bylaws’’) of the
Exchanges’ ultimate parent company,
Intercontinental Exchange, Inc.
(‘‘ICE’’),3 to implement proxy access.
The proposed rule changes were
published for comment in the Federal
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 ICE owns 100% of the equity interest in
Intercontinental Exchange Holdings, Inc., which in
turn owns 100% of the equity interest in NYSE
Holdings LLC. NYSE Holdings LLC owns 100% of
the equity interest of NYSE Group, Inc., which
owns 100% of the equity interest of each of the
Exchanges. ICE is a publicly traded company listed
on the NYSE.
1 15
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
Register on March 22, 2016.4 No
comment letters were received in
response to the proposals. This order
approves the proposed rule changes.
II. Description of the Proposed Rule
Changes
The Exchanges propose to amend and
restate the Bylaws to add a new Section
2.15 that would, subject to a number of
requirements, permit stockholders to
nominate director nominees for election
to the Board of Directors of ICE
(‘‘Board’’) and require ICE to include
such director nominations in its proxy
materials for the next annual meeting of
stockholders (‘‘Proxy Materials’’). The
Exchanges further propose to amend
certain advance notice provisions in
Section 2.13 of the Bylaws to account
for the implementation of proxy access
in proposed Section 2.15.5
Proposed Section 2.15 of the Bylaws
Proposed Section 2.15 of the Bylaws
would enable an individual stockholder,
or a group of up to 20 stockholders, to
nominate director nominees for the
Board and have them included in the
Proxy Materials, so long as such
stockholder or stockholders have
collectively owned at least three percent
of ICE’s outstanding shares of common
stock continuously for at least three
years.6 No stockholder would be
permitted to participate in more than
one group, and any stockholder
appearing as a member of more than one
group would be counted as a member of
the group with the largest ownership
position.7 Notwithstanding the
foregoing, a stockholder whose nominee
is elected to the Board at an annual
meeting under proposed Section 2.15
would not be eligible to nominate
another candidate for the next two
annual meetings.8
In order to nominate a director
nominee to be included in the Proxy
Materials under proposed Section 2.15,
a stockholder would need to submit a
notice (‘‘Nomination Notice’’) to the
Secretary of ICE, no earlier than the
close of business 150 calendar days, and
no later than the close of business 120
4 See Securities Exchange Act Release Nos. 77384
(Mar. 17, 2016), 81 FR 15371 (Mar. 22, 2016) (SR–
NYSE–2016–14); 77385 (Mar. 17, 2016), 81 FR
15378 (Mar. 22, 2016) (SR–NYSEArca–2016–25);
and 77386 (Mar. 17, 2016), 81 FR 15366 (Mar. 22,
2016) (SR–NYSEMKT–2016–20) (collectively,
‘‘Notices’’).
5 See Notices, supra note 4, for a more detailed
description of the proposed amendments.
6 Proposed Section 2.15(c)(i)–(iii). Shares may be
counted as ‘‘owned’’ only where a stockholder
possesses both the full voting and investment rights
pertaining to the shares, as well as the full
economic interest in such shares. Id. at 2.15(c)(iv).
7 Id. at 2.15(c)(v).
8 Id. at 2.15(c)(i).
PO 00000
Frm 00079
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calendar days, before the anniversary of
the date that ICE mailed its Proxy
Materials for the previous year’s annual
meeting.9 In proposed Section 2.15, the
Exchanges propose to set forth in the
Bylaws the specific information that
would be needed to be included in the
Nomination Notice. The following
information is required for the
Nomination Notice:
• A Schedule 14N 10 (or any
successor form) relating to the
nomination, completed and filed with
the Commission; 11
• a written notice of the
nomination 12 containing a statement in
support of the nominee’s election to the
Board, if desired, as well as the
following representations and
warranties by each nominating
stockholder:
Æ That the nominating stockholder
did not acquire, and is not holding,
securities of ICE for the purpose or with
the effect of influencing or changing
control of ICE;
Æ that the nominee’s candidacy or, if
elected, membership on the Board
would not violate applicable state or
federal law or the rules of the principal
national securities exchange on which
ICE’s securities are traded;
Æ that the nominee does not have any
direct or indirect relationship with ICE
that will cause the nominee to be
deemed not independent under the
Board’s Independence Policy; 13
Æ that the nominee qualifies as
independent under the rules of the
principal national securities exchange
on which ICE’s common stock is traded
and meets that exchange’s audit
9 Id. at 2.15(d). If an annual meeting is not
scheduled to be held within a period that
commences 30 days before and ends 30 days after
the anniversary date, the nominating stockholder
would be required to submit the Nomination Notice
by the later of the close of business 120 days prior
to the date of such annual meeting or the tenth day
following the first public disclosure of the annual
meeting date. Id.
10 17 CFR 240.14n–101.
11 Proposed Section 2.15(d)(i).
12 Id. at 2.15(d)(ii). The written notice would need
to include certain information that is required for
the nomination of directors by Section 2.13(b) of the
Bylaws and details regarding any relationship in the
past three years that would have been described by
Item 6(e) of Schedule 14N if that relationship had
existed on the date of submission of the Schedule
14N. Id. at 2.15(d)(ii)(A) and (B). In the case of a
nomination by a group, the notice would also need
to include the designation by all group members of
one group member authorized to act on behalf of
all group members with respect to matters relating
to the nomination, including withdrawal of the
nomination. Id. at 2.15(d)(ii)(K).
13 The Board’s current Independence Policy can
be found at: https://ir.theice.com/∼/media/Files/I/
Ice-IR/documents/corporate-governancedocuments/board-independence-policy.pdf.
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Agencies
[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Notices]
[Pages 29598-29600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11155]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77780; File No. SR-BatsEDGX-2016-13]
Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change Related
to Fees
May 6, 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 April 29, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to EDGX Rules
15.1(a) and (c).
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the 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 determines the liquidity adding rebate that it will
provide to Members using the Exchange's tiered pricing structure.
Currently, the Exchange provides a $0.0027 per share rebate under
footnote 2 of the Fee Schedule for a Member that adds an ADV \6\ of at
least 0.02% of the TCV \7\ in Tape B securities for orders that yield
fee codes B and 4.\8\ The Exchange currently has only one Tape B Volume
Tier.
---------------------------------------------------------------------------
\6\ As defined on the Exchange's Fee Schedule.
\7\ Id.
\8\ See Securities Exchange Act Release No. 76816 (January 4,
2016, 81 FR 987 (January 8, 2016) (SR-EDGX-2015-67).
---------------------------------------------------------------------------
The Exchange now proposes to amend the Tape B Volume Tier to add an
additional Tape B Volume Tier to provide two Tape B Volume Tiers. The
Exchange proposes that the current Tape B Volume Tier be renamed Tape B
Volume Tier 1. The Exchange proposes that the rebate and the required
criteria for Tape B Volume Tier 1 remain substantively the same as the
current Tape B Volume Tier. The Exchange also proposes a second Tape B
Volume Tier named ``Tape B Volume Tier 2.'' The Exchange proposes to
provide a rebate per share of $0.0030 pursuant to the Tier and proposes
the required criteria to be that a Member adds an ADV of at least 0.15%
of the TCV in Tape B securities. To accommodate this proposed change in
its Fee Schedule, the Exchange proposes adding an additional row to the
Tape B Volume Tier table to list the Tape B Volume Tier 2. The Exchange
also proposes adding an additional column to separate Tape B Volume
Tier 1 and Tape B Volume Tier 2. Finally, the Exchange proposes stating
as a precursor that both Tape B Volume
[[Page 29599]]
Tiers are applicable to orders yielding fee codes B and 4 and removing
the same statement from the current text describing Tape B Volume Tier
1.
Implementation Date
The Exchange proposes to implement this amendment to its Fee
Schedule effective May 2, 2016.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The proposed rule changes reflect a competitive
pricing structure designed to incent market participants to direct
their order flow to the Exchange. The Exchange believes that the
proposed amendments to the Tape B Volume Tier are equitable and non-
discriminatory in they would apply uniformly to all Members. The
Exchange believes the rate remains competitive with those charged by
other venues and, therefore, reasonable and equitably allocated to
Members.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
Volume-based rebates such as that proposed herein have been widely
adopted by exchanges, including the Exchange, and are equitable because
they are open to all Members on an equal basis and provide additional
benefits or discounts that are reasonably related to: (i) The value to
an exchange's market quality; (ii) associated higher levels of market
activity, such as higher levels of liquidity provision and/or growth
patterns; and (iii) introduction of higher volumes of orders into the
price and volume discovery processes. The Exchange believes that the
proposal is a reasonable, fair and equitable, and not unfairly
discriminatory allocation of fees and rebates because it will provide
Members with an additional incentive to reach certain thresholds on the
Exchange.
In particular, the Exchange believes the addition of the proposed
second, higher Tape B Volume Tier 2 is a reasonable means to encourage
Members to increase the liquidity they provide on the Exchange.
Further, Members will still be able to earn the currently offered
rebate under Tape B Volume Tier 1. The addition of a second, higher
tier merely incentivizes a Member to provide even greater liquidity.
The Exchange further believes that the amendment to the Tape B Volume
Tier represents an equitable allocation of reasonable dues, fees, and
other charges because the thresholds necessary to achieve the tier
continue to encourage Members to add displayed liquidity to the EDGX
Book \11\ each month. The increased liquidity benefits all investors by
deepening EDGX's liquidity pool, offering additional flexibility for
all investors to enjoy cost savings, supporting the quality of price
discovery, promoting market transparency and improving investor
protection.
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\11\ The EDGX Book is the System's electronic file of orders.
See Exchange Rule 1.5(d).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe its proposed amendment to its Fee
Schedule would impose any burden on competition that is not necessary
or appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed change represents a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Additionally, Members may opt to
disfavor the Exchange's pricing if they believe that alternatives offer
them better value. The Exchange does not believe that the proposed
additional tier would burden competition, but instead, enhances
competition, as it is intended to increase the competitiveness of and
draw additional volume to the Exchange. The Exchange does not believe
the amended tier would burden intramarket competition as it would apply
to all Members uniformly. Accordingly, the Exchange does not believe
that the proposed change will impair the ability of Members or
competing venues to maintain their competitive standing in the
financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
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-BatsEDGX-2016-13 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-BatsEDGX-2016-13. 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
[[Page 29600]]
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-BatsEDGX-2016-13, and should
be submitted on or before June 2, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
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\14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-11155 Filed 5-11-16; 8:45 am]
BILLING CODE 8011-01-P