Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.24, Opening Process for Non-BZX-Listed Securities, 35069-35071 [2016-12777]
Download as PDF
<![CDATA[
Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
Thursday, June 23, 2016
NUCLEAR REGULATORY
COMMISSION
[NRC–2016–0001]
9:00 a.m. Discussion of Security Issues
(Closed—Ex. 3)
Sunshine Act Meeting Notice
Week of June 27, 2016—Tentative
May 30, June 6, 13, 20, 27, July
4, 2016.
PLACE: Commissioners’ Conference
Room, 11555 Rockville Pike, Rockville,
Maryland.
STATUS: Public and Closed.
DATES:
Tuesday, June 28, 2016
Week of May 30, 2016
9:30 a.m. Briefing on Human Capital
and Equal Opportunity Employment
(Public Meeting) (Contact: Kristin Davis:
301–287–0707)
This meeting will be webcast live at
the Web address—https://www.nrc.gov/.
Wednesday, June 1, 2016
Week of July 4, 2016—Tentative
9:00 a.m. Briefing on Security Issues
(Closed—Ex. 1)
Thursday, July 7, 2016
9:30 a.m. Strategic Programmatic
Overview of the Reactors Operating
Business Line (Public Meeting) (Contact:
Trent Wertz: 301–415–1568)
*
*
*
*
*
The schedule for Commission
meetings is subject to change on short
notice. For more information or to verify
the status of meetings, contact Denise
McGovern at 301–415–0681 or via email
at Denise.McGovern@nrc.gov.
*
*
*
*
*
The NRC Commission Meeting
Schedule can be found on the Internet
at: https://www.nrc.gov/public-involve/
public-meetings/schedule.html.
*
*
*
*
*
The NRC provides reasonable
accommodation to individuals with
disabilities where appropriate. If you
need a reasonable accommodation to
participate in these public meetings, or
need this meeting notice or the
transcript or other information from the
public meetings in another format (e.g.
braille, large print), please notify
Kimberly Meyer, NRC Disability
Program Manager, at 301–287–0739, by
videophone at 240–428–3217, or by
email at Kimberly.Meyer-Chambers@
nrc.gov. Determinations on requests for
reasonable accommodation will be
made on a case-by-case basis.
*
*
*
*
*
Members of the public may request to
receive this information electronically.
If you would like to be added to the
distribution, please contact the Nuclear
Regulatory Commission, Office of the
Secretary, Washington, DC 20555 (301–
415–1969), or email
Brenda.Akstulewicz@nrc.gov or
Patricia.Jimenez@nrc.gov.
Thursday, June 2, 2016
8:55 a.m. Affirmation Session (Public
Meeting) (Tentative)
a. Pacific Gas & Electric Co. (Diablo
Canyon Nuclear Power Plant, Units 1
and 2); Appeal of LBP–15–27
(Tentative)
b. Entergy Nuclear Operations, Inc.
(Indian Point Nuclear Generating Units
2 and 3)—Petitions for Review of LBP–
11–17 and LBP–10–13 (Tentative)
c. Entergy Nuclear Vermont Yankee,
LLC and Entergy Nuclear Operations,
Inc. (Vermont Yankee Nuclear Power
Station), NRC Staff’s Motion to Vacate
LBP–15–24 (Tentative)
d. Pacific Gas and Electric Co. (Diablo
Canyon Nuclear Power Plant, Units 1
and 2), Petitions for Review (Tentative)
This meeting will be webcast live at
the Web address—https://www.nrc.gov/.
Thursday, June 2, 2016
9:00 a.m. Briefing on Results of the
Agency Action Review Meeting (Public
Meeting) (Contact: Andrew Waugh:
301–415–5601)
This meeting will be webcast live at
the Web address—https://www.nrc.gov/.
2:00 p.m. Discussion of Management
and Personnel Issues (Closed—Ex. 2 &
6)
Week of June 6, 2016—Tentative
There are no meetings scheduled for
the week of June 6, 2016.
Week of June 13, 2016—Tentative
There are no meetings scheduled for
the week of June 13, 2016.
sradovich on DSK3TPTVN1PROD with NOTICES
Week of June 20, 2016—Tentative
Monday, June 20, 2016
9:00 a.m. Meeting with Department of
Energy Office of Nuclear Energy (Public
Meeting) (Contact: Albert Wong: 301–
415–3081)
This meeting will be webcast live at
the Web address—https://www.nrc.gov/.
VerDate Sep<11>2014
21:59 May 31, 2016
Jkt 238001
Dated: May 26, 2016.
Denise L. McGovern,
Policy Coordinator, Office of the Secretary.
[FR Doc. 2016–12941 Filed 5–27–16; 11:15 am]
BILLING CODE 7590–01–P
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
35069
NUCLEAR REGULATORY
COMMISSION
Advisory Committee on Reactor
Safeguards (ACRS); Meeting of the
ACRS Subcommittee on Planning and
Procedures; Cancellation of the June
8, 2016, ACRS Subcommittee Meeting
The ACRS Subcommittee meeting on
Planning and Procedures scheduled for
June 8, 2016, 12:00 p.m. until 1:00 p.m.,
has been cancelled.
The notice of this meeting was
previously published in the Federal
Register on Tuesday, May 23, 2016, (81
FR 32355).
Information regarding this meeting
can be obtained by contacting Quynh
Nguyen, Designated Federal Official
(DFO) (Telephone 301–415–5844 or
Email: Quynh.Nguyen@nrc.gov)
between 7:30 a.m. and 5:15 p.m. (EST)).
Dated: May 24, 2016.
Mark L. Banks,
Chief, Technical Support Branch, Advisory
Committee on Reactor Safeguards.
[FR Doc. 2016–12920 Filed 5–31–16; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77915; File No. SR–
BatsBZX–2016–19]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Rule 11.24,
Opening Process for Non-BZX-Listed
Securities
May 25, 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 May 13,
2016, Bats BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
15 U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
1
2
E:\FR\FM\01JNN1.SGM
01JNN1
35070
Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
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 Rule 11.24, Opening Process for
Non-BZX-Listed Securities, to await a
two-sided quotation from the listing
exchange prior to opening a security for
trading during Regular Trading Hours.5
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 11.24, Opening Process for NonBZX-Listed Securities, to await a twosided quotation from the listing
exchange prior to opening a non-BZXListed security for trading during
Regular Trading Hours.6
Exchange Rule 11.24 describes the
Exchange’s current opening process for
non-BZX-Listed securities.
Subparagraph (a) to Rule 11.24 states
that prior to the beginning of the
Regular Trading Hours, Users 7 who
wish to participate in the Opening
Process may enter orders to buy or sell.8
Subparagraph (a)(2) to Rule 11.24
provides that, with certain exceptions,9
See Exchange Rule 1.5(w).
The opening process for BZX-Listed Securities
is set forth under Exchange Rule 11.24(b).
7 See Exchange Rule 1.5(cc).
8 Orders cancelled prior to the Opening Process
will not participate in the Opening Process.
9 The following order types and instruction may
not participate in the opening process: (i) BZX Post
Only Orders, Partial Post Only at Limit Orders, ISOs
not modified by Rule 11.24(a)(1) above, and
Minimum Quantity Orders. See Exchange Rule
5
sradovich on DSK3TPTVN1PROD with NOTICES
6
VerDate Sep<11>2014
21:59 May 31, 2016
Jkt 238001
all orders with a time-in-force
instruction of Regular Hours Only may
participate in the Opening Process.
Subparagraph (b) to Rule 11.24 states
that the Exchange will open by
performing the Opening Process in
which the System will attempt to match
buy and sell orders that are executable
at the midpoint of the National Best Bid
and Offer (‘‘NBBO’’). Subparagraph (c)
to Exchange Rule 11.24 sets forth the
process by which the System sets the
opening price of the Opening Process.
Currently, the System 10 sets the price of
the Opening Process at the midpoint of
the first NBBO after 9:30:00 a.m. Eastern
Time. However, for securities listed on
either the New York Stock Exchange,
Inc. (‘‘NYSE’’) or NYSE MKT LLC
(‘‘NYSE MKT’’), the System currently
sets the price of the Opening Process at
the midpoint of the first NBBO
subsequent to the first reported trade on
the listing exchange after 9:30:00 a.m.
Eastern Time. The Exchange may
alternatively set the price of the
Opening Process for securities listed on
either the NYSE or NYSE MKT at the
midpoint of the then prevailing NBBO
when the first two-sided quotation
published by the relevant listing
exchange after 9:30:00 a.m. Eastern
Time, but before 9:45:00 a.m. Eastern
Time if no first trade is reported by the
listing exchange within one second of
publication of the first two-sided
quotation by the listing exchange. The
System waits to set the price at the
midpoint of the first NBBO as set forth
above because securities listed on the
NYSE or NYSE MKT may not open at
precisely 9:30:00 a.m. Eastern Time.
Pursuant to subparagraph (b) of Rule
11.24, all orders executable at the
midpoint of the NBBO will continue to
be processed in time sequence,
beginning with the order with the oldest
time stamp. Matches occur until there
are no remaining contra-side orders or
there is an imbalance of orders. An
imbalance of orders may result in orders
that cannot be executed in whole or in
part. Any unexecuted orders may then
be placed by the System on the BZX
Book,11 cancelled, executed, or routed
to away Trading Centers in accordance
with the Users’ instructions pursuant to
Exchange Rule 11.13(a)(2).
The Exchange proposes to amend
subparagraph (c) to Rule 11.24 to now
await a two-sided quotation from the
listing exchange prior to opening a
security for trading during Regular
Trading Hours. As amended,
subparagraph (c)(2) to Rule 11.24 would
state that the System would set the price
of the Opening Process at the midpoint
of the first NBBO subsequent to the first
two-sided quotation published by the
listing exchange after 9:30:00 a.m.
Eastern Time. For securities listed on
either the NYSE or NYSE MKT,
subparagraph (c)(1)(i) to Rule 11.24
would state that the System would set
the price of the Opening Process at the
midpoint of the first NBBO subsequent
to the first reported trade and first
reported quotation on the listing
exchange after 9:30:00 a.m. Eastern
Time. Pursuant to subparagraph (c)(1)(i)
to Rule 11.24, the Exchange will utilize
the existing NBBO to calculate each
securities’ [sic] opening price once a
trade and two-sided quotation are
received from the listing exchange,
regardless of the order in which the
trade or quotation are received. The
Exchange believes the proposed rule
change will enable the listing market’s
quotation to be incorporated into the
NBBO, which the Exchange would, in
turn, utilize in its calculation of the
midpoint of the NBBO. The Exchange
believes doing so would result in an
opening price that more closely reflect
the opening market prices and
conditions for that security. Under
subparagraph (c)(1)(ii) to Rule 11.24, the
Exchange will continue to alternatively
set the price of the Opening Process for
securities listed on either the NYSE or
NYSE MKT at the midpoint of the then
prevailing NBBO when the first twosided quotation published by the
relevant listing exchange after 9:30:00
a.m. Eastern Time, but before 9:45:00
a.m. Eastern Time if no first trade is
reported by the listing exchange within
one second of publication of the first
two-sided quotation by the listing
exchange.
11.24(a)(2). Limit orders with a Reserve Quantity
may participate to the full extent of their displayed
size and Reserve Quantity. Id. Discretionary Orders
may participate only up to their ranked price for
buy orders or down to their ranked price for sell
orders. Id. The discretionary range of such orders
will not be eligible for participation in the Opening
Process. Id. All Pegged Orders and Mid-Point Peg
Orders, as defined in Rule 11.9(c)(8) and (9), will
be eligible for execution in the Opening Process
based on their pegged prices. Id.
10 See Exchange Rule 1.5(aa).
11 The term ‘‘BZX Book’’ is defined as ‘‘the
System’s electronic file of orders.’’ See Exchange
Rule 1.5(e).
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 12 in general, and furthers the
objectives of Section 6(b)(5) of the Act 13
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
12
13
15 U.S.C. 78f(b).
15 U.S.C. 78f(b)(5).
E:\FR\FM\01JNN1.SGM
01JNN1
Federal Register / Vol. 81, No. 105 / Wednesday, June 1, 2016 / Notices
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
the proposed rule change will promote
just and equitable principles of trade,
removes impediments to, and perfect
the mechanism of, a free and open
market and a national market system
because it enables the System to execute
the Opening Process at a price that is
objectively established by the market for
the security. The proposal would enable
the listing market’s quotation to be
incorporated into the NBBO, which the
Exchange would, in turn, utilize in its
calculation of the midpoint of the
NBBO. The Exchange believes doing so
would result in an opening price that
more closely reflect the opening market
prices and conditions for that security.
Therefore, the Exchange believes the
proposed rule change promotes just and
equitable principles of trade because it
ensures a midpoint price that the
Exchange believes would accurately
reflect the market for the security.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposal will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed rule
change will enable the Exchange to
incorporate the listing market’s
quotation into its calculation of the
midpoint of the NBBO, resulting in an
opening price that would more closely
reflect the opening market prices and
conditions for that security. Therefore,
the Exchange believes the proposed rule
change will promote competition by
enhancing the quality of the Exchange’s
opening process.
sradovich on DSK3TPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
21:59 May 31, 2016
Jkt 238001
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
15 U.S.C. 78s(b)(3)(A).
17 CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
14
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
VerDate Sep<11>2014
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 16 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 17
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiver
of the 30-day operative delay would
allow market participants to
immediately realize the benefits of what
may be more accurate opening prices.
Based on the foregoing, the Commission
believes the waiver of the operative
delay is consistent with the protection
of investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal operative upon
filing.18
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
15
PO 00000
Frm 00103
Fmt 4703
Sfmt 9990
35071
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
BatsBZX–2016–19 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–BatsBZX–2016–19. 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 No. SR–BatsBZX–
2016–19, and should be submitted on or
before June 22, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Brent J. Fields,
Secretary.
[FR Doc. 2016–12777 Filed 5–31–16; 8:45 am]
BILLING CODE 8011–01–P
19 17
E:\FR\FM\01JNN1.SGM
CFR 200.30–3(a)(12).
01JNN1
]]>Agencies
[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35069-35071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12777]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77915; File No. SR-BatsBZX-2016-19]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
11.24, Opening Process for Non-BZX-Listed Securities
May 25, 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 May 13, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to
[[Page 35070]]
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend Rule 11.24, Opening Process
for Non-BZX-Listed Securities, to await a two-sided quotation from the
listing exchange prior to opening a security for trading during Regular
Trading Hours.\5\
---------------------------------------------------------------------------
\5\ See Exchange Rule 1.5(w).
---------------------------------------------------------------------------
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 proposes to amend Rule 11.24, Opening Process for Non-
BZX-Listed Securities, to await a two-sided quotation from the listing
exchange prior to opening a non-BZX-Listed security for trading during
Regular Trading Hours.\6\
---------------------------------------------------------------------------
\6\ The opening process for BZX-Listed Securities is set forth
under Exchange Rule 11.24(b).
---------------------------------------------------------------------------
Exchange Rule 11.24 describes the Exchange's current opening
process for non-BZX-Listed securities. Subparagraph (a) to Rule 11.24
states that prior to the beginning of the Regular Trading Hours, Users
\7\ who wish to participate in the Opening Process may enter orders to
buy or sell.\8\ Subparagraph (a)(2) to Rule 11.24 provides that, with
certain exceptions,\9\ all orders with a time-in-force instruction of
Regular Hours Only may participate in the Opening Process. Subparagraph
(b) to Rule 11.24 states that the Exchange will open by performing the
Opening Process in which the System will attempt to match buy and sell
orders that are executable at the midpoint of the National Best Bid and
Offer (``NBBO''). Subparagraph (c) to Exchange Rule 11.24 sets forth
the process by which the System sets the opening price of the Opening
Process. Currently, the System \10\ sets the price of the Opening
Process at the midpoint of the first NBBO after 9:30:00 a.m. Eastern
Time. However, for securities listed on either the New York Stock
Exchange, Inc. (``NYSE'') or NYSE MKT LLC (``NYSE MKT''), the System
currently sets the price of the Opening Process at the midpoint of the
first NBBO subsequent to the first reported trade on the listing
exchange after 9:30:00 a.m. Eastern Time. The Exchange may
alternatively set the price of the Opening Process for securities
listed on either the NYSE or NYSE MKT at the midpoint of the then
prevailing NBBO when the first two-sided quotation published by the
relevant listing exchange after 9:30:00 a.m. Eastern Time, but before
9:45:00 a.m. Eastern Time if no first trade is reported by the listing
exchange within one second of publication of the first two-sided
quotation by the listing exchange. The System waits to set the price at
the midpoint of the first NBBO as set forth above because securities
listed on the NYSE or NYSE MKT may not open at precisely 9:30:00 a.m.
Eastern Time.
---------------------------------------------------------------------------
\7\ See Exchange Rule 1.5(cc).
\8\ Orders cancelled prior to the Opening Process will not
participate in the Opening Process.
\9\ The following order types and instruction may not
participate in the opening process: (i) BZX Post Only Orders,
Partial Post Only at Limit Orders, ISOs not modified by Rule
11.24(a)(1) above, and Minimum Quantity Orders. See Exchange Rule
11.24(a)(2). Limit orders with a Reserve Quantity may participate to
the full extent of their displayed size and Reserve Quantity. Id.
Discretionary Orders may participate only up to their ranked price
for buy orders or down to their ranked price for sell orders. Id.
The discretionary range of such orders will not be eligible for
participation in the Opening Process. Id. All Pegged Orders and Mid-
Point Peg Orders, as defined in Rule 11.9(c)(8) and (9), will be
eligible for execution in the Opening Process based on their pegged
prices. Id.
\10\ See Exchange Rule 1.5(aa).
---------------------------------------------------------------------------
Pursuant to subparagraph (b) of Rule 11.24, all orders executable
at the midpoint of the NBBO will continue to be processed in time
sequence, beginning with the order with the oldest time stamp. Matches
occur until there are no remaining contra-side orders or there is an
imbalance of orders. An imbalance of orders may result in orders that
cannot be executed in whole or in part. Any unexecuted orders may then
be placed by the System on the BZX Book,\11\ cancelled, executed, or
routed to away Trading Centers in accordance with the Users'
instructions pursuant to Exchange Rule 11.13(a)(2).
---------------------------------------------------------------------------
\11\ The term ``BZX Book'' is defined as ``the System's
electronic file of orders.'' See Exchange Rule 1.5(e).
---------------------------------------------------------------------------
The Exchange proposes to amend subparagraph (c) to Rule 11.24 to
now await a two-sided quotation from the listing exchange prior to
opening a security for trading during Regular Trading Hours. As
amended, subparagraph (c)(2) to Rule 11.24 would state that the System
would set the price of the Opening Process at the midpoint of the first
NBBO subsequent to the first two-sided quotation published by the
listing exchange after 9:30:00 a.m. Eastern Time. For securities listed
on either the NYSE or NYSE MKT, subparagraph (c)(1)(i) to Rule 11.24
would state that the System would set the price of the Opening Process
at the midpoint of the first NBBO subsequent to the first reported
trade and first reported quotation on the listing exchange after
9:30:00 a.m. Eastern Time. Pursuant to subparagraph (c)(1)(i) to Rule
11.24, the Exchange will utilize the existing NBBO to calculate each
securities' [sic] opening price once a trade and two-sided quotation
are received from the listing exchange, regardless of the order in
which the trade or quotation are received. The Exchange believes the
proposed rule change will enable the listing market's quotation to be
incorporated into the NBBO, which the Exchange would, in turn, utilize
in its calculation of the midpoint of the NBBO. The Exchange believes
doing so would result in an opening price that more closely reflect the
opening market prices and conditions for that security. Under
subparagraph (c)(1)(ii) to Rule 11.24, the Exchange will continue to
alternatively set the price of the Opening Process for securities
listed on either the NYSE or NYSE MKT at the midpoint of the then
prevailing NBBO when the first two-sided quotation published by the
relevant listing exchange after 9:30:00 a.m. Eastern Time, but before
9:45:00 a.m. Eastern Time if no first trade is reported by the listing
exchange within one second of publication of the first two-sided
quotation by the listing exchange.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \12\ in general, and furthers the objectives of Section
6(b)(5) of the Act \13\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in
[[Page 35071]]
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system and, in general, to protect investors and the public interest.
The Exchange believes the proposed rule change will promote just and
equitable principles of trade, removes impediments to, and perfect the
mechanism of, a free and open market and a national market system
because it enables the System to execute the Opening Process at a price
that is objectively established by the market for the security. The
proposal would enable the listing market's quotation to be incorporated
into the NBBO, which the Exchange would, in turn, utilize in its
calculation of the midpoint of the NBBO. The Exchange believes doing so
would result in an opening price that more closely reflect the opening
market prices and conditions for that security. Therefore, the Exchange
believes the proposed rule change promotes just and equitable
principles of trade because it ensures a midpoint price that the
Exchange believes would accurately reflect the market for the security.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act. The proposed rule change will enable the
Exchange to incorporate the listing market's quotation into its
calculation of the midpoint of the NBBO, resulting in an opening price
that would more closely reflect the opening market prices and
conditions for that security. Therefore, the Exchange believes the
proposed rule change will promote competition by enhancing the quality
of the Exchange's opening process.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \16\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \17\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that waiver of the 30-day operative delay would allow market
participants to immediately realize the benefits of what may be more
accurate opening prices. Based on the foregoing, the Commission
believes the waiver of the operative delay is consistent with the
protection of investors and the public interest. Therefore, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\18\
---------------------------------------------------------------------------
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-BatsBZX-2016-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BatsBZX-2016-19. 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 No. SR-BatsBZX-2016-19, and should be
submitted on or before June 22, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2016-12777 Filed 5-31-16; 8:45 am]
BILLING CODE 8011-01-P
