Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to BZX Rule 11.26(a), Stating it Will Utilize IEX Market Data From the CQS/UQDF for Purposes of Order Handling, Routing, and Related Compliance Processes, 46747-46749 [2016-16861]
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<![CDATA[
Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
B. Title of Chapter 16 in the C2 Rule’s
Table of Contents
Second, the Exchange proposes to
amend the title of Chapter 16 in the C2
Rule’s Table of Contents.8 Currently, the
title of Chapter 16 is ‘‘Summary
Suspension by Chairman of the Board or
Vice Chairman of the Board.’’ The
Exchange notes that rules contained
within CBOE Chapter XVI are
incorporated into C2’s Chapter 16.9
CBOE Chapter XVI currently provides
that the Chairman of the Board or
President may summarily suspend a
TPH and limit or prohibit any person
with respect to access to services offered
by the Exchange.10 The Exchange notes
however, that CBOE is concurrently
proposing to amend its rules to provide
that the CEO (rather than Chairman) or
President may summarily suspend a
TPH.11 Additionally, the Exchange
notes that it no longer maintains the role
of Vice Chairman of the Board.12 As
such, the Exchange proposes to amend
the Chapter 16 title to simply state
‘‘Summary Suspension’’ to avoid
confusion and maintain clarity in the
rules.
C. References to Chairman of the Board
Last, the Exchange proposes to amend
Rule 6.33 (Authority to Take Action
Under Emergency Conditions) to
eliminate the reference to ‘‘Chairman of
the Board’’ and replace it with ‘‘Chief
Executive Officer.’’ Rule 6.33 currently
provides that the Chairman of the
Board, the President, or such other
person or persons as may be designated
by the Board shall have the power to
halt or suspend trading in some or all
securities traded on the Exchange, to
close some or all Exchange facilities, to
determine the duration of any such halt,
suspension or closing, to take one or
more of the actions permitted to be
taken by any person or body of the
Exchange under Exchange rules, or to
take any other action deemed to be
necessary or appropriate for the
maintenance of a fair and orderly
market or the protection of investors, or
otherwise in the public interest, due to
emergency conditions or extraordinary
circumstances. The Exchange notes that
the CEO’s responsibility is that of
general charge and supervision of the
business of the Corporation,13 whereas
the Chairman of the Board’s
8 See
id.
id.
10 See CBOE Rule 16.1.
11 See Securities Exchange Act Release No. 77962
(June 1, 2016), 81 FR 36641 (June 7, 2016) (SR–
CBOE–2016–047).
12 See Notice, supra note 3, at 36640.
13 See Section 5.2 of the C2 Bylaws.
9 See
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17:52 Jul 15, 2016
Jkt 238001
responsibility is that of the presiding
officer at all meetings of the Board and
stockholders, as well as of other powers
and duties as are delegated by the
Board.14 The Exchange believes the
responsibilities currently delegated to
the Chairman of the Board under Rule
6.33 pertain to the general charge and
supervision of the Exchange’s business
and therefore fall within the scope of
the CEO’s stated responsibilities,
instead of the Chairman’s.
III. Discussion and Commission
Findings
The Commission finds that the
proposed rule change is consistent with
the Act and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.15 Specifically,
the Commission believes the proposed
rule change is consistent with the
Section 6(b)(5) 16 requirements that the
rules of an exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and 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.
In particular, the Commission
believes the proposed rule changes will
remove impediments to, and perfect the
mechanism of a free and open market
and a national market system, and, in
general, will protect investors and the
public interest by updating the
delegation of authority to senior
management under certain of the
Exchange’s Rules, which should
facilitate the Exchange’s ability to
operate and carry out its self-regulatory
responsibilities. In particular, the
proposed rule changes to eliminate the
reference to the Office of the Chairman
and replace it with a reference to
management in Section 6.1 of the
Exchange’s Bylaws will alleviate
confusion regarding the responsibilities
of the Advisory Board. The Exchange
notes that the Advisory Board’s Charter
provides that the Advisory Board shall
advise the Board and ‘‘management’’
regarding matters of interest to TPHs.17
Replacing the term Office of the
Chairman with the term management
will ensure that the Exchange’s Bylaws
PO 00000
Section 3.6 of the C2 Bylaws.
U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
17 See Notice, supra note 3, at 36639.
conform to the Advisory Board Charter,
thereby reducing uncertainty about the
responsibilities of the Advisory Board.
The Exchange’s proposal to rename
the title of Chapter 16 will alleviate
confusion as that Chapter incorporates
by reference CBOE’s Chapter XVI rules
that are subject to a proposed rule
change to remove references to the
Chairman of the Board and replace them
with CEO. Moreover, the proposed rule
change will eliminate a reference to the
Vice Chairman, a title that C2 no longer
uses.
Finally, the Exchange’s proposal to
amend Rule 6.33 to replace the
references to the Chairman of the Board
with the CEO should update and clarify
which Exchange official is vested with
the authorities established in that rule.
The Exchange represents that while
historically the Chairman of the Board
also held the title of CEO, currently, the
two titles are held by different
individuals.18 The Exchange Bylaws
confer different responsibilities on the
Chairman of the Board and the CEO.19
The proposed rule change will ensure
that the authority delegated pursuant to
Rule 6.33 is consistent with the roles
and responsibilities established in the
Bylaws.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,20 that the
proposed rule change (SR–C2–2016–
005) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–16854 Filed 7–15–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78303; File No. SR–
BatsBZX–2016–37]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to BZX Rule
11.26(a), Stating it Will Utilize IEX
Market Data From the CQS/UQDF for
Purposes of Order Handling, Routing,
and Related Compliance Processes
July 12, 2016.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
14 See
18 See
15 15
19 See
Frm 00108
Fmt 4703
Sfmt 4703
46747
id.
id. at 36640.
20 15 U.S.C. 78s(b)(2).
21 17 CFR 200.30–3(a)(12).
E:\FR\FM\18JYN1.SGM
18JYN1
46748
Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 5,
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, 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
update Rule 11.26(a) regarding the
public disclosure of the sources of data
that the Exchange utilizes when
performing: (i) Order handling; (ii) order
routing; and (iii) related compliance
processes to reflect the operation of the
Investors Exchange LLC (‘‘IEX’’) as a
registered national securities exchange 3
beginning on August 19, 2016.4
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
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1. Purpose
On June 17, 2016, the Commission
approved IEX’s application to register as
a national securities exchange.5 As part
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78101
(June 17, 2016), 81 FR 41141 (June 23, 2016) (‘‘IEX
Approval Order’’).
4 See Letter from Brad Katsuyama, CEO, IEX, to
IEX’s Sell-Side and Buy-Side Partners, dated June
17, 2016 (https://www.iextrading.com/) (stating that
IEX will commence a symbol-by-symbol roll-out on
August 19, 2016, concluding on September 2, 2016).
5 See supra note 3.
2 17
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17:52 Jul 15, 2016
Jkt 238001
of its transition to exchange status, IEX
announced that it will commence a
symbol-by-symbol roll-out on August
19, 2016, concluding on September 2,
2016.6 The Exchange, therefore,
proposes to update Rule 11.26(a)
regarding the public disclosure of the
sources of data that the Exchange
utilizes when performing: (i) Order
handling; (ii) order routing; and (iii)
related compliance processes to reflect
the operation of IEX as a registered
national securities exchange beginning
on August 19, 2016. Specifically, the
Exchange proposes to amend Rule
11.26(a) to include IEX by stating it will
utilize IEX market data from the CQS/
UQDF for purposes of order handling,
routing, and related compliance
processes.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,7 in general, and
furthers the objectives of section 6(b)(5)
of the Act,8 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
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 that its
proposal to update Exchange Rule
11.26(a) to include IEX will ensure that
the rule correctly identifies and publicly
states on a market-by-market basis all of
the specific network processor and
proprietary data feeds that the Exchange
utilizes for the handling, routing, and
execution of orders, and for performing
the regulatory compliance checks
related to each of those functions. The
proposed rule change also removes
impediments to and perfects the
mechanism of a free and open market
and protects investors and the public
interest because it provides additional
specificity, clarity and transparency.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes its proposed
rule change would not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
PO 00000
supra note 4.
U.S.C. 78f.
8 15 U.S.C. 78f(b)(5).
contrary, the Exchange believes the
proposal would enhance competition
because including all of the exchanges
enhances transparency and enables
investors to better assess the quality of
the Exchange’s execution and routing
services.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because 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 9 and paragraph (f)(6) of Rule 19b–
4 thereunder,10 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:
6 See
7 15
Frm 00109
Fmt 4703
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
10 17
Sfmt 4703
E:\FR\FM\18JYN1.SGM
18JYN1
Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices
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–
BatsBZX–2016–37 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.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–BatsBZX–2016–37. 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–
BatsBZX–2016–37 and should be
submitted on or before August 8, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Robert W. Errett,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78297; File No. SR–
NYSEMKT–2016–67]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Modify the NYSE Amex
Options Fee Schedule Effective July 1,
2016
July 12, 2016.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 1,
2016, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
NYSE Amex Options Fee Schedule
(‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change
effective July 1, 2016. The proposed
change is available on the Exchange’s
Web site at www.nyse.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
self-regulatory organization 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 those 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.
[FR Doc. 2016–16861 Filed 7–15–16; 8:45 am]
BILLING CODE 8011–01–P
1 15
11 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:52 Jul 15, 2016
2 17
Jkt 238001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00110
Fmt 4703
Sfmt 4703
46749
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
section I. E. of the Fee Schedule 3 to
adjust qualification levels for certain
credit tiers and modify how certain
volumes are weighted. The Exchange
proposes to implement these changes
effective on July 1, 2016.
Section I.E. of the Fee Schedule
describes the Exchange’s ACE Program,
which features five tiers (each a ‘‘Tier’’)
expressed as a percentage of total
industry Customer equity and Exchange
Traded Fund (‘‘ETF’’) option average
daily volume 4 and provides two
alternative methods through which
Order Flow Providers (each an ‘‘OFP’’)
may receive per contract credits for
Electronic Customer volume that the
OFP, as agent, submits to the Exchange.5
The Exchange proposes to adjust the
Customer Electronic ADV volume
thresholds of the ACE Program by
raising the qualification level for two of
the five Tiers as well as to modify how
volumes are calculated for all five of the
Tiers under both methods.
Currently, to qualify for Tier 2 on
Customer Electronic ADV, the Customer
Electronic ADV entered by an OFP must
exceed 0.60% of Industry Customer
Equity and ETF Options ADV
(‘‘ICADV’’). The Exchange proposes to
raise the qualification level for Tier 2 on
Customer Electronic ADV to be greater
than 0.75% of ICADV and, for
3 See Fee Schedule, section I.E. (Amex Customer
Engagement (‘‘ACE’’) Program—Standard Options),
available here, https://www.nyse.com/publicdocs/
nyse/markets/amex-options/NYSE_Amex_Options_
Fee_Schedule.pdf.
4 Total industry Customer equity and ETF option
volume is comprised of those equity and ETF
contracts that clear in the Customer account type
at OCC and does not include contracts that clear in
either the Firm or Market Maker account type at
OCC or contracts overlying a security other than an
equity or ETF security. See OCC Monthly Statistics
Reports, available here, https://www.theocc.com/
webapps/monthly-volume-reports.
5 The first method for determining whether an
OFP should receive credit is by calculating, on a
monthly basis, the average daily Customer contract
volume an OFP executes Electronically on the
Exchange as a percentage of total average daily
industry Customer equity and ETF options volume.
The second method for determining whether an
OFP should receive credit is by calculating, on a
monthly basis, the average daily contract volume an
OFP executes Electronically in all participant types
(i.e., Customer, Firm, Broker-Dealer, NYSE Amex
Options Market Maker, Non-NYSE Amex Options
Market Maker, and Professional Customer) on the
Exchange, as a percentage of total average daily
industry Customer equity and ETF option volume,
with the further requirement that a specified
percentage of the minimum volume required to
qualify for the Tier must be Customer volume. See
supra n. 3.
E:\FR\FM\18JYN1.SGM
18JYN1
]]>Agencies
[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Notices]
[Pages 46747-46749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16861]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78303; File No. SR-BatsBZX-2016-37]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to BZX
Rule 11.26(a), Stating it Will Utilize IEX Market Data From the CQS/
UQDF for Purposes of Order Handling, Routing, and Related Compliance
Processes
July 12, 2016.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 46748]]
``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 5, 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, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to update Rule 11.26(a) regarding the
public disclosure of the sources of data that the Exchange utilizes
when performing: (i) Order handling; (ii) order routing; and (iii)
related compliance processes to reflect the operation of the Investors
Exchange LLC (``IEX'') as a registered national securities exchange \3\
beginning on August 19, 2016.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 78101 (June 17,
2016), 81 FR 41141 (June 23, 2016) (``IEX Approval Order'').
\4\ See Letter from Brad Katsuyama, CEO, IEX, to IEX's Sell-Side
and Buy-Side Partners, dated June 17, 2016 (https://www.iextrading.com/) (stating that IEX will commence a symbol-by-
symbol roll-out on August 19, 2016, concluding on September 2,
2016).
---------------------------------------------------------------------------
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
On June 17, 2016, the Commission approved IEX's application to
register as a national securities exchange.\5\ As part of its
transition to exchange status, IEX announced that it will commence a
symbol-by-symbol roll-out on August 19, 2016, concluding on September
2, 2016.\6\ The Exchange, therefore, proposes to update Rule 11.26(a)
regarding the public disclosure of the sources of data that the
Exchange utilizes when performing: (i) Order handling; (ii) order
routing; and (iii) related compliance processes to reflect the
operation of IEX as a registered national securities exchange beginning
on August 19, 2016. Specifically, the Exchange proposes to amend Rule
11.26(a) to include IEX by stating it will utilize IEX market data from
the CQS/UQDF for purposes of order handling, routing, and related
compliance processes.
---------------------------------------------------------------------------
\5\ See supra note 3.
\6\ See supra note 4.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\7\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\8\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that its proposal to update Exchange Rule
11.26(a) to include IEX will ensure that the rule correctly identifies
and publicly states on a market-by-market basis all of the specific
network processor and proprietary data feeds that the Exchange utilizes
for the handling, routing, and execution of orders, and for performing
the regulatory compliance checks related to each of those functions.
The proposed rule change also removes impediments to and perfects the
mechanism of a free and open market and protects investors and the
public interest because it provides additional specificity, clarity and
transparency.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes its proposed rule change would not impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the Exchange
believes the proposal would enhance competition because including all
of the exchanges enhances transparency and enables investors to better
assess the quality of the Exchange's execution and routing services.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because 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 \9\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\10\ 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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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:
[[Page 46749]]
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-BatsBZX-2016-37 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-BatsBZX-2016-37. 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-BatsBZX-2016-37 and should
be submitted on or before August 8, 2016.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-16861 Filed 7-15-16; 8:45 am]
BILLING CODE 8011-01-P
