Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 13.8(b) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing Price, 43315-43318 [2016-15580]
Download as PDF
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Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
indexes as long as the ETF is listed in
accordance with an equity exchange’s
generic listing criteria under which
CSAs are not required. Thus, the
proposed CSA percentage promotes just
and equitable principles of trade and a
free and open market by more equally
applying CSA percentages to similar
products.
Finally, with regards to amending the
maintenance listing criteria applicable
to EAFE, EM, FTSE 100, and FTSE
China 50 options, the substantive
analysis of reviewing the listing criteria
set forth in subparagraphs .01(a)(5) and
(6), .02(a)(5) and (6), and .03(a)(5) and
(6) to Rule 24.2 is similar to the analysis
involved in reviewing the listing criteria
set forth in subparagraphs .01(a)(7),
.02(a)(7), and .03(a)(7) to Rule 24.2.
Thus, it’s appropriate, and generally
supportive of the protection of investors
and the public interest, to review those
criteria at the same time as it strikes the
appropriate balance between ensuring
the Exchange has the ability to access
information to conduct investigative
activities with the Exchange efficiently
and effectively deploying Exchange
resources.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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, CBOE
believes that the introduction of new
cash index options will enhance
competition among market participants
and will provide a new type of options
to compete with domestic products such
as FTSE Developed Europe and FTSE
Emerging Index futures and Europeantraded derivatives on the FTSE
Developed Europe and FTSE Emerging
Indexes to the benefit of investors and
the marketplace. With regards to the
CSA percentage applicable to EAFE,
EM, FTSE Developed, and FTSE
Emerging options, the Exchange
considers this a competitive filing. As
noted above, equity exchanges are not
required to have any CSAs in place to
list ETFs that seek to track the EAFE,
EM, FTSE Developed, and FTSE
Emerging Indexes.53 Additionally,
CBOE is not required to have any CSAs
in place to list and trade options on an
ETF that seeks to track these indexes as
long as the ETF is listed in accordance
with an equity exchange’s generic
listing criteria under which CSAs are
53 See,
e.g., NYSE MKT Rule 1000 Commentary
.03(a)(B); NYSE Arca Equities Rule 5.2(j)(3)
Commentary .01(a)(B); NASDAQ Rule
5705(a)(3)(A)(ii); and BATS Rule 14.11(b)(3)(A)(ii).
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19:05 Jun 30, 2016
Jkt 238001
not required.54 Futures exchanges are
similarly not required to have any CSAs
in place to list futures on the EAFE, EM,
FTSE Developed and FTSE Emerging
Indexes.55 Finally, modifying the
maintenance listing criteria applicable
to EAFE, EM, FTSE 100, and FTSE
China 50 options as proposed will not
impose any burden on competition—
intermarket or otherwise—because
maintenance listing criteria are
applicable to products, not market
participants, and, thus, are unrelated to
competition among market participants.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. By order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be 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–
CBOE–2016–049 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.
54 See
Rule 5.3.06(C)(i).
e.g., CME Rulebook Chapters 390—E-mini
FTSE Developed Europe Index Futures and 391—
E-mini FTSE Emerging Index Futures; and ICE
Futures Chapters 40—MSCI EAFE Mini Index
Futures and 41—MSCI Emerging Markets Mini
Index Futures.
55 See,
PO 00000
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43315
All submissions should refer to File
Number SR–CBOE–2016–049.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–CBOE–
2016–049 and should be submitted on
or before July 22,2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.56
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–15716 Filed 6–30–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78162; File No. SR–
BatsEDGA–2016–14]
Self-Regulatory Organizations; Bats
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Rule 13.8(b)
Identifying Certain Transactions as the
Bats One Opening Price or the Bats
One Closing Price
June 27, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
56 17
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CFR 200.30–3(a)(12).
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43316
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 17,
2016, Bats EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) 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
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 content of the Bats One Feed
under Rule 13.8(b) to identify certain
transactions as the ‘‘Bats One Opening
Price’’ or the ‘‘Bats One Closing Price.’’
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.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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 the
content of the Bats One Feed under Rule
13.8(b) to identify certain transactions
as the ‘‘Bats One Opening Price’’ or the
‘‘Bats One Closing Price.’’ The last sale
information described below that the
Exchange proposes to identify as the
Bats One Opening or Closing Price is
currently included in the Bats One
Feed. The Exchange notes that it is not
proposing to add new data elements to
the Bats One Feed; it is simply
proposing to identify existing data
elements as the Bats One Opening or
Closing Price. The Bats One Feed is a
data feed that disseminates, on a real1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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19:05 Jun 30, 2016
Jkt 238001
time basis, the aggregate best bid and
offer (‘‘BBO’’) of all displayed orders for
securities traded on EDGA and its
affiliated exchanges 3 and for which the
Bats Exchanges reports [sic] quotes
under the Consolidated Tape
Association (‘‘CTA’’) Plan or the
Nasdaq/UTP Plan.4
The last sale information
disseminated as part of the Bats One
Feed includes the price, size, time of
execution, and individual Bats
Exchange on which the trade was
executed. The last sale information also
includes the cumulative number of
shares executed on all Bats Exchanges
for that trading day.5
The Exchange now proposes to
identify certain last sale transactions as
the Bats One Opening Price or the Bats
One Closing Price. For securities listed
on BZX,6 the Bats One Opening Price
would be the BZX Official Opening
Price as defined in BZX Rule
11.23(a)(5) 7 and the Bats One Closing
Price would be the BZX Official Closing
Price as defined in BZX Rule
11.23(a)(3).8 For securities not listed on
BZX, the Bats One Opening Price would
be the first last sale eligible trade 9 that
occurred on a Bats Exchange after 9:30
3 EDGA’s affiliated exchanges are the Bats BZX
Exchange, Inc. (‘‘BZX’’), Bats BYX Exchange, Inc.
(‘‘BYX’’), and Bats EDGX Exchange, Inc. (‘‘EDGX’’,
together with EDGA, BZX, and BYX, the ‘‘Bats
Exchanges’’).
4 See Securities Exchange Act Release No. 73918
(December 23, 2014), 79 FR 78920 (December 31,
2014) (File Nos. SR–EDGX–2014–25; SR–EDGA–
2014–25; SR–BATS–2014–055; SR–BYX–2014–030)
(Notice of Amendments No. 2 and Order Granting
Accelerated Approval to Proposed Rule Changes, as
Modified by Amendments Nos. 1 and 2, to Establish
a New Market Data Product called the Bats One
Feed) (‘‘Bats One Approval Order’’).
5 The Bats One Feed also contains optional
functionality which enables recipients to receive
aggregated two-sided quotations from the Bats
Exchanges for up to five (5) price levels for all
securities that are traded on the Bats Exchanges in
addition to the Bats One Summary Feed (‘‘Bats One
Premium Feed’’). For each price level on one of the
Bats Exchanges, the Bats One Premium Feed
includes a two-sided quote and the number of
shares available to buy and sell at that particular
price level.
6 A BZX listed security is a security listed on the
BZX pursuant to Chapter 14 of BZX’s Rules.
7 The term ‘‘BZX Official Opening Price’’ is the
price disseminated to the consolidated tape as the
market center opening trade. See BZX Rule
11.23(a)(5). In the event that there is no opening
auction for a BZX listed security, the BZX Official
Opening Price will be the price of the final last sale
eligible trade, which will be the previous BZX
Official Closing Price. See BZX Rule 11.23(b)(2)(B).
8 The term ‘‘BZX Official Closing Price’’ is the
price disseminated to the consolidated tape as the
market center closing trade. See BZX Rule
11.23(a)(3). In the event that there is no closing
auction for a BZX listed security, the BZX Official
Closing Price will be the price of the final last sale
eligible trade. See BZX Rule 11.23(c)(2)(B).
9 A last sale eligible trade must be of at least one
round lot. A round lot consists of one hundred
(100) shares. See Exchange Rule 11.6(s).
PO 00000
Frm 00135
Fmt 4703
Sfmt 4703
a.m. Eastern Time. That first trade
would be identified as the Bats One
Opening Price when disseminated via
the Bats One Feed. The Bats One
Closing Price for non-BZX listed
securities would be the final last sale
eligible trade to occur on a Bats
Exchange prior to 4:00 p.m. Eastern
Time. The Bats One Closing Price would
be disseminated via the Bats One Feed
after 4:00 p.m. Eastern Time. The
Exchange would not disseminate a Bats
One Opening or Closing Price for a
particular trading day when a trade
satisfying the above criteria does not
occur.
In addition, the Bats One Opening
and Closing Price for BZX listed
securities are included in the depth-ofbook data feeds for each of the Bats
Exchanges, which are used to construct
the Bats One Feed. Also, the Bats One
Opening and Closing Prices for nonBZX listed securities is derivable from
the underlying data feeds that comprise
the Bats One Feed, as those feeds
contain the necessary last sale
information to identify if a transaction
is last sale eligible.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 10 in general, and furthers the
objectives of Section 6(b)(5) of the Act 11
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
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 also believes that the
proposed rule change is consistent with
Section 11(A) of the Act 12 in that it
supports (1) fair competition among
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (2) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the proposed rule change
is consistent with Rule 603 of
Regulation NMS,13 which provides that
any national securities exchange which
distributes information with respect to
quotations for or transactions in an NMS
stock do so on terms that are not
unreasonably discriminatory. In
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 15 U.S.C. 78k–1.
13 See 17 CFR 242.603.
11 15
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asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker-dealers
increased authority and flexibility to
offer new and unique market data
products to the public. It was believed
that this authority would expand the
amount of data available to consumers,
and also spur innovation and
competition in the market data provider
industry.
The proposed rule change is designed
to promote just and equitable principles
of trade and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by identifying certain
transactions as the Bats One Opening or
Closing Price to investors. The Exchange
also believes this proposal is consistent
with Section 6(b)(5) of the Act because
it protects investors and the public
interest and promotes just and equitable
principles of trade by providing
investors with new options for receiving
such information.
Lastly, the proposal would not permit
unfair discrimination because the
information will be available to all
investors and market data vendors on an
equivalent basis. In addition, any
investor that wishes to receive such
information via a different source will
be able to do so. As noted above, the
Exchange is not proposing to add new
data elements to the Bats One Feed; it
is simply proposing to identify existing
data elements as the Bats One Opening
or Closing Price. Specifically, that the
BZX Official Opening Price and BZX
Official Closing Price for BZX listed
securities are currently provided and
disseminated via the consolidated
tape 14 and included in the depth-ofbook data feeds for each of the Bats
Exchanges, which are used to construct
the Bats One Feed. In addition,
investors can also independently
identify the Bats One Official Opening
and Closing prices for non-BZX listed
securities via other sources, as prices of
the first and final last sale eligible
transaction to occur during Regular
Trading Hours 15 are posted to the
consolidated tape. Also, the Bats One
Opening and Closing Prices for nonBZX listed securities are derivable from
the underlying data feeds that comprise
the Bats One Feed, as those feeds
contain the necessary last sale
information to identify if a transaction
is last sale eligible.
14 See
BZX Rule 11.23(a)(3) and (5).
Trading Hours is defined as the time
between 9:30 a.m. and 4:00 p.m. Eastern Time. See
Exchange Rule 1.5(y).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe the
proposal will impose any burden on
competition not deemed necessary or
appropriate in furtherance of the
purposes of the Act. A vendor seeking
to offer a similar product by identifying
certain transaction as an opening or
closing price would be able to do so on
the same terms as the Exchange. As
discussed in in [sic] the Bats One
Approval Order,16 any entity may
separately purchase the individual
underlying products, and if they so
choose, perform an aggregation and
consolidation function similar to that
which the Exchange performs in
creating the Bats One Feed. Any entity
may offer a data feed with the same
information included in the Bats One
Feed to sell and distribute it to its
clients with no greater cost than the
Exchange. Likewise, a competing
vendor could independently identify
certain transaction as an opening or
closing price and include such
information as part of their product to
be disseminated to their customers. As
discussed above, the BZX Official
Opening Price and BZX Official Closing
Price for BZX listed securities is
currently provided to and disseminated
via the consolidated tape.17 A
competing market data vendor could
also independently identify the Bats
One Official Opening and Closing prices
for non-BZX listed securities via other
sources, as such prices are the first and
final last sale eligible transaction to
occur during Regular Trading Hours.
Therefore, the Exchange believes the
identification of an Official Bats One
Opening Price or Closing Price in the
Bats One Feed would not impose any
burden on competition not deemed
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has 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 foregoing proposed rule
change does not: (A) Significantly affect
the protection of investors or the public
interest; (B) impose any significant
burden on competition; and (C) by its
terms, 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 18 and paragraph (f)(6) of Rule 19b–
4 thereunder,19 the Exchange has
designated this rule filing as noncontroversial. The Exchange has given
the Commission written notice of its
intent to file the proposed rule change,
along with a brief description and 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.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BatsEDGA–2016–14 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–BatsEDGA–2016–14. 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
15 Regular
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19:05 Jun 30, 2016
Jkt 238001
16 See
17 See
PO 00000
Bats One Approval Order, supra note 4.
BZX Rule 11.23(a)(3) and (5).
Frm 00136
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43317
18 15
19 17
E:\FR\FM\01JYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
01JYN1
43318
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Notices
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–
BatsEDGA–2016–14 and should be
submitted on or before July 22, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–15580 Filed 6–30–16; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78163; File No. SR–
BatsEDGX–2016–25]
Self-Regulatory Organizations; Bats
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Rule 13.8(b)
Identifying Certain Transactions as the
Bats One Opening Price or the Bats
One Closing Price
asabaliauskas on DSK3SPTVN1PROD with NOTICES
June 27, 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 June 17,
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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:05 Jun 30, 2016
Jkt 238001
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
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
20 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the content of the Bats One Feed
under Rule 13.8(b) to identify certain
transactions as the ‘‘Bats One Opening
Price’’ or the ‘‘Bats One Closing Price.’’
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. Purpose
The Exchange proposes to amend the
content of the Bats One Feed under Rule
13.8(b) to identify certain transactions
as the ‘‘Bats One Opening Price’’ or the
‘‘Bats One Closing Price.’’ The last sale
information described below that the
Exchange proposes to identify as the
Bats One Opening or Closing Price is
currently included in the Bats One
Feed. The Exchange notes that it is not
proposing to add new data elements to
the Bats One Feed; it is simply
proposing to identify existing data
elements as the Bats One Opening or
Closing Price. The Bats One Feed is a
data feed that disseminates, on a realtime basis, the aggregate best bid and
offer (‘‘BBO’’) of all displayed orders for
securities traded on EDGX and its
affiliated exchanges 3 and for which the
Bats Exchanges reports [sic] quotes
under the Consolidated Tape
Association (‘‘CTA’’) Plan or the
Nasdaq/UTP Plan.4
3 EDGX’s affiliated exchanges are the Bats BZX
Exchange, Inc. (‘‘BZX’’), Bats BYX Exchange, Inc.
(‘‘BYX’’), and Bats EDGA Exchange, Inc. (‘‘EDGA’’,
together with EDGX, BZX, and BYX, the ‘‘Bats
Exchanges’’).
4 See Securities Exchange Act Release No. 73918
(December 23, 2014), 79 FR 78920 (December 31,
PO 00000
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Fmt 4703
Sfmt 4703
The last sale information
disseminated as part of the Bats One
Feed includes the price, size, time of
execution, and individual Bats
Exchange on which the trade was
executed. The last sale information also
includes the cumulative number of
shares executed on all Bats Exchanges
for that trading day.5
The Exchange now proposes to
identify certain last sale transactions as
the Bats One Opening Price or the Bats
One Closing Price. For securities listed
on BZX,6 the Bats One Opening Price
would be the BZX Official Opening
Price as defined in BZX Rule
11.23(a)(5) 7 and the Bats One Closing
Price would be the BZX Official Closing
Price as defined in BZX Rule
11.23(a)(3).8 For securities not listed on
BZX, the Bats One Opening Price would
be the first last sale eligible trade9 that
occurred on a Bats Exchange after 9:30
a.m. Eastern Time. That first trade
would be identified as the Bats One
Opening Price when disseminated via
the Bats One Feed. The Bats One
Closing Price for non-BZX listed
securities would be the final last sale
eligible trade to occur on a Bats
Exchange prior to 4:00 p.m. Eastern
Time. The Bats One Closing Price would
be disseminated via the Bats One Feed
after 4:00 p.m. Eastern Time. The
Exchange would not disseminate a Bats
One Opening or Closing Price for a
particular trading day when a trade
2014) (File Nos. SR–EDGX–2014–25; SR–EDGA–
2014–25; SR–BATS–2014–055; SR–BYX–2014–030)
(Notice of Amendments No. 2 and Order Granting
Accelerated Approval to Proposed Rule Changes, as
Modified by Amendments Nos. 1 and 2, to Establish
a New Market Data Product called the Bats One
Feed) (‘‘Bats One Approval Order’’).
5 The Bats One Feed also contains optional
functionality which enables recipients to receive
aggregated two-sided quotations from the Bats
Exchanges for up to five (5) price levels for all
securities that are traded on the Bats Exchanges in
addition to the Bats One Summary Feed (‘‘Bats One
Premium Feed’’). For each price level on one of the
Bats Exchanges, the Bats One Premium Feed
includes a two-sided quote and the number of
shares available to buy and sell at that particular
price level.
6 A BZX listed security is a security listed on the
BZX pursuant to Chapter 14 of BZX’s Rules.
7 The term ‘‘BZX Official Opening Price’’ is the
price disseminated to the consolidated tape as the
market center opening trade. See BZX Rule
11.23(a)(5). In the event that there is no opening
auction for a BZX listed security, the BZX Official
Opening Price will be the price of the final last sale
eligible trade, which will be the previous BZX
Official Closing Price. See BZX Rule 11.23(b)(2)(B).
8 The term ‘‘BZX Official Closing Price’’ is the
price disseminated to the consolidated tape as the
market center closing trade. See BZX Rule
11.23(a)(3). In the event that there is no closing
auction for a BZX listed security, the BZX Official
Closing Price will be the price of the final last sale
eligible trade. See BZX Rule 11.23(c)(2)(B).
9 A last sale eligible trade must be of at least one
round lot. A round lot consists of one hundred
(100) shares. See Exchange Rule 11.6(s).
E:\FR\FM\01JYN1.SGM
01JYN1
]]>Agencies
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Notices]
[Pages 43315-43318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15580]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78162; File No. SR-BatsEDGA-2016-14]
Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
13.8(b) Identifying Certain Transactions as the Bats One Opening Price
or the Bats One Closing Price
June 27, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 43316]]
``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 17, 2016, Bats EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') 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
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the content of the Bats One
Feed under Rule 13.8(b) to identify certain transactions as the ``Bats
One Opening Price'' or the ``Bats One Closing Price.''
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the content of the Bats One Feed
under Rule 13.8(b) to identify certain transactions as the ``Bats One
Opening Price'' or the ``Bats One Closing Price.'' The last sale
information described below that the Exchange proposes to identify as
the Bats One Opening or Closing Price is currently included in the Bats
One Feed. The Exchange notes that it is not proposing to add new data
elements to the Bats One Feed; it is simply proposing to identify
existing data elements as the Bats One Opening or Closing Price. The
Bats One Feed is a data feed that disseminates, on a real-time basis,
the aggregate best bid and offer (``BBO'') of all displayed orders for
securities traded on EDGA and its affiliated exchanges \3\ and for
which the Bats Exchanges reports [sic] quotes under the Consolidated
Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan.\4\
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\3\ EDGA's affiliated exchanges are the Bats BZX Exchange, Inc.
(``BZX''), Bats BYX Exchange, Inc. (``BYX''), and Bats EDGX
Exchange, Inc. (``EDGX'', together with EDGA, BZX, and BYX, the
``Bats Exchanges'').
\4\ See Securities Exchange Act Release No. 73918 (December 23,
2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-EDGX-2014-25;
SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) (Notice of
Amendments No. 2 and Order Granting Accelerated Approval to Proposed
Rule Changes, as Modified by Amendments Nos. 1 and 2, to Establish a
New Market Data Product called the Bats One Feed) (``Bats One
Approval Order'').
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The last sale information disseminated as part of the Bats One Feed
includes the price, size, time of execution, and individual Bats
Exchange on which the trade was executed. The last sale information
also includes the cumulative number of shares executed on all Bats
Exchanges for that trading day.\5\
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\5\ The Bats One Feed also contains optional functionality which
enables recipients to receive aggregated two-sided quotations from
the Bats Exchanges for up to five (5) price levels for all
securities that are traded on the Bats Exchanges in addition to the
Bats One Summary Feed (``Bats One Premium Feed''). For each price
level on one of the Bats Exchanges, the Bats One Premium Feed
includes a two-sided quote and the number of shares available to buy
and sell at that particular price level.
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The Exchange now proposes to identify certain last sale
transactions as the Bats One Opening Price or the Bats One Closing
Price. For securities listed on BZX,\6\ the Bats One Opening Price
would be the BZX Official Opening Price as defined in BZX Rule
11.23(a)(5) \7\ and the Bats One Closing Price would be the BZX
Official Closing Price as defined in BZX Rule 11.23(a)(3).\8\ For
securities not listed on BZX, the Bats One Opening Price would be the
first last sale eligible trade \9\ that occurred on a Bats Exchange
after 9:30 a.m. Eastern Time. That first trade would be identified as
the Bats One Opening Price when disseminated via the Bats One Feed. The
Bats One Closing Price for non-BZX listed securities would be the final
last sale eligible trade to occur on a Bats Exchange prior to 4:00 p.m.
Eastern Time. The Bats One Closing Price would be disseminated via the
Bats One Feed after 4:00 p.m. Eastern Time. The Exchange would not
disseminate a Bats One Opening or Closing Price for a particular
trading day when a trade satisfying the above criteria does not occur.
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\6\ A BZX listed security is a security listed on the BZX
pursuant to Chapter 14 of BZX's Rules.
\7\ The term ``BZX Official Opening Price'' is the price
disseminated to the consolidated tape as the market center opening
trade. See BZX Rule 11.23(a)(5). In the event that there is no
opening auction for a BZX listed security, the BZX Official Opening
Price will be the price of the final last sale eligible trade, which
will be the previous BZX Official Closing Price. See BZX Rule
11.23(b)(2)(B).
\8\ The term ``BZX Official Closing Price'' is the price
disseminated to the consolidated tape as the market center closing
trade. See BZX Rule 11.23(a)(3). In the event that there is no
closing auction for a BZX listed security, the BZX Official Closing
Price will be the price of the final last sale eligible trade. See
BZX Rule 11.23(c)(2)(B).
\9\ A last sale eligible trade must be of at least one round
lot. A round lot consists of one hundred (100) shares. See Exchange
Rule 11.6(s).
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In addition, the Bats One Opening and Closing Price for BZX listed
securities are included in the depth-of-book data feeds for each of the
Bats Exchanges, which are used to construct the Bats One Feed. Also,
the Bats One Opening and Closing Prices for non-BZX listed securities
is derivable from the underlying data feeds that comprise the Bats One
Feed, as those feeds contain the necessary last sale information to
identify if a transaction is last sale eligible.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \10\ in general, and furthers the objectives of Section
6(b)(5) of the Act \11\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in 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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \12\ in that it supports (1)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(2) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
Furthermore, the proposed rule change is consistent with Rule 603 of
Regulation NMS,\13\ which provides that any national securities
exchange which distributes information with respect to quotations for
or transactions in an NMS stock do so on terms that are not
unreasonably discriminatory. In
[[Page 43317]]
adopting Regulation NMS, the Commission granted self-regulatory
organizations and broker-dealers increased authority and flexibility to
offer new and unique market data products to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition in the market
data provider industry.
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\12\ 15 U.S.C. 78k-1.
\13\ See 17 CFR 242.603.
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by identifying
certain transactions as the Bats One Opening or Closing Price to
investors. The Exchange also believes this proposal is consistent with
Section 6(b)(5) of the Act because it protects investors and the public
interest and promotes just and equitable principles of trade by
providing investors with new options for receiving such information.
Lastly, the proposal would not permit unfair discrimination because
the information will be available to all investors and market data
vendors on an equivalent basis. In addition, any investor that wishes
to receive such information via a different source will be able to do
so. As noted above, the Exchange is not proposing to add new data
elements to the Bats One Feed; it is simply proposing to identify
existing data elements as the Bats One Opening or Closing Price.
Specifically, that the BZX Official Opening Price and BZX Official
Closing Price for BZX listed securities are currently provided and
disseminated via the consolidated tape \14\ and included in the depth-
of-book data feeds for each of the Bats Exchanges, which are used to
construct the Bats One Feed. In addition, investors can also
independently identify the Bats One Official Opening and Closing prices
for non-BZX listed securities via other sources, as prices of the first
and final last sale eligible transaction to occur during Regular
Trading Hours \15\ are posted to the consolidated tape. Also, the Bats
One Opening and Closing Prices for non-BZX listed securities are
derivable from the underlying data feeds that comprise the Bats One
Feed, as those feeds contain the necessary last sale information to
identify if a transaction is last sale eligible.
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\14\ See BZX Rule 11.23(a)(3) and (5).
\15\ Regular Trading Hours is defined as the time between 9:30
a.m. and 4:00 p.m. Eastern Time. See Exchange Rule 1.5(y).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe the proposal will impose any burden
on competition not deemed necessary or appropriate in furtherance of
the purposes of the Act. A vendor seeking to offer a similar product by
identifying certain transaction as an opening or closing price would be
able to do so on the same terms as the Exchange. As discussed in in
[sic] the Bats One Approval Order,\16\ any entity may separately
purchase the individual underlying products, and if they so choose,
perform an aggregation and consolidation function similar to that which
the Exchange performs in creating the Bats One Feed. Any entity may
offer a data feed with the same information included in the Bats One
Feed to sell and distribute it to its clients with no greater cost than
the Exchange. Likewise, a competing vendor could independently identify
certain transaction as an opening or closing price and include such
information as part of their product to be disseminated to their
customers. As discussed above, the BZX Official Opening Price and BZX
Official Closing Price for BZX listed securities is currently provided
to and disseminated via the consolidated tape.\17\ A competing market
data vendor could also independently identify the Bats One Official
Opening and Closing prices for non-BZX listed securities via other
sources, as such prices are the first and final last sale eligible
transaction to occur during Regular Trading Hours. Therefore, the
Exchange believes the identification of an Official Bats One Opening
Price or Closing Price in the Bats One Feed would not impose any burden
on competition not deemed necessary or appropriate in furtherance of
the purposes of the Act.
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\16\ See Bats One Approval Order, supra note 4.
\17\ See BZX Rule 11.23(a)(3) and (5).
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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 foregoing proposed rule change does not: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, 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 \18\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\19\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and 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.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BatsEDGA-2016-14 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-BatsEDGA-2016-14. 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
[[Page 43318]]
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-BatsEDGA-2016-14 and should be submitted on or before
July 22, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-15580 Filed 6-30-16; 8:45 am]
BILLING CODE 8011-01-P
