Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of Bats BYX Exchange, Inc., 62198-62200 [2016-21489]

Download as PDF 62198 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices V. Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 SECURITIES AND EXCHANGE COMMISSION The Commission finds good cause to approve the proposed rule change, as modified by Amendment No. 1, prior to the thirtieth day after the date of publication of notice of Amendment No. 1 in the Federal Register. In Amendment No. 1, the Exchange proposes to: (1) Apply the changes in proposed Rule 11.27(c) to all Pilot Securities; (2) clarify in Rule 11.27(c)(1) that the increment for BZX Market Orders and Rule 11.27(c)(5) that the increment for Market Maker Peg Orders will be at ‘‘permissible’’ increments; (3) state in Rule 11.27(c)(2) that Market Pegged Orders, Rule 11.27(c)(4) that Discretionary Orders, and Rule 11.27(c)(6) that Supplemental Peg Orders will not be accepted in Pilot Securities; (4) clarify in Rule 11.27(c)(3) that Mid-Point Peg Orders may not be alternatively pegged to one minimum price variation inside the same side of the NBBO as the order; (5) delete the proposal to amend Non-Displayed Orders; and (6) clarify how orders subject to Display-Price Sliding will operate when they are unexecutable at the locking price. The Commission believes that Amendment No. 1 modifies the proposal so that it does not cause a disparate impact on different Test Groups and the Control Group. In addition, the Commission notes that the Pilot is scheduled to start on October 3, 2016, and accelerated approval would ensure that the rules of the Exchange would be in place for the start of the Pilot. Accordingly, the Commission finds good cause, pursuant to section 19(b)(2) of the Exchange Act,19 to approve the proposed rule change, as modified by Amendment No. 1, on an accelerated basis. [Release No. 34–78758; File no. SR– NYSEArca–2016–67] mstockstill on DSK3G9T082PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Brent J. Fields, Secretary. [FR Doc. 2016–21648 Filed 9–7–16; 8:45 am] BILLING CODE 8011–01–P U.S.C. 78s(b)(2). 20 Id. CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:34 Sep 07, 2016 On May 5, 2016, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares (‘‘Shares’’) of the Natixis Seeyond International Minimum Volatility ETF (‘‘Fund’’) under NYSE Arca Equities Rule 8.600. The proposed rule change was published for comment in the Federal Register on May 25, 2016.3 On June 13, 2016, the Exchange filed Amendment No. 1 to the proposed rule change, which replaced and superseded its entirety the proposed rule change as originally filed.4 On June 22, 2016, the Exchange filed Amendment No. 2 to the proposed rule change.5 On July 1, 2016, the Exchange filed Amendment No. 3 to the proposed rule change, which replaced and superseded the proposed rule change as modified by Amendments No. 1 and No. 2.6 The Commission has received no comments on the proposed rule change. On June 30, 2016, pursuant to Section 19(b)(2) of the Act,7 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 77861 (May 19, 2016), 81 FR 33291. 4 In Amendment No. 1, the Exchange: (1) Narrows the universe of investments that may be held by the Fund; (2) offers color regarding types of corporate bonds of foreign issuers that the Fund would ordinarily hold; (3) clarifies potentially ambiguous language in the filing. 5 In Amendment No. 2, the Exchange proposes standards for the corporate bonds of foreign issuers that may be held by the Fund and clarifies how spot foreign currency transactions would be priced for purposes of calculating the net asset value of the Fund. 6 In Amendment No. 3, the Exchange revises the standards for the Fund’s investment in non-U.S. equity securities. Amendments No. 1, No. 2, and No. 3 are available at: https://www.sec.gov/ comments/sr-nysearca-2016-67/ nysearca201667.shtml. 7 15 U.S.C. 78s(b)(2). 2 17 It is therefore ordered, pursuant to section 19(b)(2) of the Exchange Act,20 that the proposed rule change (SR– BatsBZX–2016–29), as modified by Amendment No. 1, be and hereby is approved on an accelerated basis. 21 17 September 2, 2016. 1 15 VI. Conclusion 19 15 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Withdrawal of a Proposed Rule Change To List and Trade Shares of the Natixis Seeyond International Minimum Volatility ETF Under NYSE Arca Equities Rule 8.600 Jkt 238001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 disapprove the proposed rule change.8 On August 22, 2016, pursuant to Section 19(b)(2)(B) of the Act 9, the Commission instituted proceedings to determine whether to approve or disapprove the proposed rule change, as modified by Amendment No. 3.10 On August 31, 2016, the Exchange withdrew the proposed rule change (SR–NYSEArca–2016–67). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Brent J. Fields, Secretary. [FR Doc. 2016–21641 Filed 9–7–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78747; File No. SR– BatsBYX–2016–23] Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of Bats BYX Exchange, Inc. September 1, 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 August 25, 2016, Bats BYX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BYX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 8 See Securities Exchange Act Release No. 78204, 81 FR 44393 (July 7, 2016). The Commission designated a longer period within which to take action on the proposed rule change and designated August 23, 2016, as the date by which it should approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change. 9 15 U.S.C. 78s(b)(2)(B). 10 See Securities Exchange Act Release No. 78627, 81 FR 59002 (August 26, 2016). 11 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). E:\FR\FM\08SEN1.SGM 08SEN1 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposed rule change to amend the fee schedule applicable to Members and non-Members 5 of the Exchange pursuant to Exchange Rules 15.1(a) and (c). Specifically, the Exchange proposes to adopt new fee code IX, which would be appended to all orders that are routed to the Investors Exchange, Inc. (‘‘IEX’’) using the using the Destination Specific (‘‘DIRC’’) routing strategy.6 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 mstockstill on DSK3G9T082PROD with NOTICES 1. Purpose The Commission has approved IEX as a registered national securities exchange,7 which is to begin a symbolby-symbol roll out of symbols on August 19, 2016.8 As of that date, the Exchange will begin routing orders to IEX and Members may elect that their orders be routed directly to IEX using the DIRC routing strategy. The Exchange, therefore, proposes to amend its fee schedule to adopt new fee code IX, which would be appended to all orders that are routed to IEX using the DIRC routing strategy. All orders yielding fee 5 A Member is defined as ‘‘any registered broker or dealer that has been admitted to membership in the Exchange.’’ See Exchange Rule 1.5(n). 6 See Exchange Rule 11.13(b)(3)(E). 7 See Securities Exchange Act Release No. 78101 (June 17, 2016), 81 FR 41141 (June 23, 2016) (‘‘IEX Approval Order’’). 8 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). VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 code IX will be charged a fee of $0.0010 per share. The proposed change would enable the Exchange to charge a rate reasonably related to the rate that Bats Trading, Inc. (‘‘Bats Trading’’), the Exchange’s affiliated routing broker-dealer, would be charged for routing orders to IEX, when it does not qualify for a volume tier reduced fee.9 As a result, when Bats Trading routes an order to IEX which removes liquidity against a nondisplayed order, it will be charged a standard rate of $0.0009 per share for securities priced at or above $1.00 and 0.30% of the transaction’s dollar value in securities priced below $1.00.10 Bats Trading will not be charged a fee for orders it routes to IEX which remove liquidity against a displayed order.11 Bats Trading will pass through these rates to the Exchange and the Exchange, in turn, will charge a rate of $0.0010 per share, regardless of whether the security is priced above or below $1.00. The Exchange notes it would not be able to control whether the order it routes to IEX executes against displayed or nondisplayed liquidity, and therefore, propose to charge a fee for orders that yield fee code IX based on IEX’s rates for removing non-displayed liquidity. The proposed fee under fee code IX would enable the Exchange to equitably allocate its costs among all Members utilizing fee code IX. The Exchange proposes to implement this amendment to its fee schedule on immediately.12 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of section 6 of the Act,13 in general, and furthers the objectives of section 6(b)(4),14 in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange believes that by allowing customers to route specifically to IEX through Bats Trading, as it does with the other exchanges, fee code IX represents an equitable allocation of reasonable dues, fees, and other charges among 9 The Exchange notes that IEX does not currently offer volume tiered pricing. 10 See IEX fee schedule available at https:// iextrading.com/trading/#fee-schedule (effective August 19, 2016). See also IEX Trading Alert #2016–036, Investors Exchange Fee Schedule Effective August 19, 2016, available at https:// iextrading.com/trading/alerts/2016/036/. 11 Id. 12 The Exchange filed SR–BatsBYX–2016–22 on August 19, 2016. On August 26, 2016, the Exchange withdrew that filing and submitted this filing. 13 15 U.S.C. 78f. 14 15 U.S.C. 78f(b)(4). PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 62199 Members and other persons using its facilities. As of August 19, 2016, IEX will charge a fee of $0.0009 per share for orders which remove liquidity against non-displayed orders and no fee for orders that remove liquidity against displayed order.15 Because the Exchange would not be able to control whether the order it routes to IEX executes against displayed or nondisplayed liquidity, it therefore, believes it is equitable and reasonable to charge a fee for orders that yield fee code IX based on IEX’s rates for removing nondisplayed interest. The Exchange further believes that its proposal to pass through a fee of $0.0010 per share is equitable and reasonable because it accounts for the prices charged by IEX plus the additional operation expenses that would be incurred by the Exchange in routing orders to IEX.16 Furthermore, the Exchange notes that routing through Bats Trading is voluntary and Members may utilize other avenues to route orders to IEX, such as connecting to IEX directly. Lastly, the Exchange also believes that the proposed fee code is non-discriminatory because it applies uniformly to all Members. B. Self-Regulatory Organization’s Statement on Burden on Competition This proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that this change represents a significant departure from previous pricing offered by the Exchange or from pricing offered by the Exchange’s competitors. The proposed rate would apply uniformly to all Members, and Members may opt to disfavor the Exchange’s pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal to pass 15 See supra note 10. Exchange notes that, pursuant to fee code J, it charges all order routed to the Nasdaq Stock Market LLC (‘‘Nasdaq’’) a uniform rate of $0.0029 per share even though Nasdaq’s removal rates differs for securities priced above and below $1. See Nasdaq’s fee schedule available at https:// www.nasdaqtrader.com/ Trader.aspx?id=PriceListTrading2. The Exchange also notes that the proposed rate for fee code IX is lower that its standard routing fee of $0.0029 per share under fee code X, which it charges, for example, to orders routed to the National Stock Exchange, Inc. (‘‘NSX’’) which charges a lower rate to remove liquidity. See NSX’s fee schedule available at https://nsx.com/client/pricing (charging a fee of $0.0003 per share to orders that remove liquidity). 16 The E:\FR\FM\08SEN1.SGM 08SEN1 62200 Federal Register / Vol. 81, No. 174 / Thursday, September 8, 2016 / Notices through a fee of $0.0010 for Members’ orders that yield fee code IX would increase intermarket competition by offering customers an alternative means to route to specifically to IEX. As stated above, routing through Bats Trading is voluntary and Members may utilize other avenues to route orders to IEX, such as connecting to IEX directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. 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 written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to section 19(b)(3)(A) of the Act 17 and paragraph (f) of Rule 19b–4 thereunder.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. 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: mstockstill on DSK3G9T082PROD with 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– BatsBYX–2016–23 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–BatsBYX–2016–23. 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– BatsBYX–2016–23, and should be submitted on or before September 29, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–21489 Filed 9–7–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78753; File No. SR–NYSE– 2016–61] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Exchange’s Price List To Amend the Date That Two Wireless Connections to Third Party Data Feeds Are Expected To Be Available September 1, 2016. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 17 15 18 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). VerDate Sep<11>2014 19:34 Sep 07, 2016 Jkt 238001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 notice is hereby given that, on August 24, 2016, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the selfregulatory organization. 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 the Substance of the Proposed Rule Change The Exchange proposes to amend the Exchange’s Price List to amend the date that two wireless connections to third party data feeds are expected to be available. The proposed rule 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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Price List to amend the date that two wireless connections to third party data feeds are expected to be available. The Exchange’s co-location 4 services include the means for Users 5 to receive 4 The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (‘‘Commission’’) in 2010. See Securities Exchange Act Release No. 62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR–NYSE–2010–56). The Exchange operates a data center in Mahwah, New Jersey (the ‘‘data center’’) from which it provides co-location services to Users. 5 For purposes of the Exchange’s co-location services, a ‘‘User’’ means any market participant that requests to receive co-location services directly from the Exchange. See Securities Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190 (October 5, 2015) (SR–NYSE–2015–40). As specified in the Price List, a User that incurs co- E:\FR\FM\08SEN1.SGM 08SEN1

Agencies

[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Notices]
[Pages 62198-62200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21489]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78747; File No. SR-BatsBYX-2016-23]


Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of Bats BYX Exchange, Inc.

September 1, 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 August 25, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).

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[[Page 62199]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposed rule change to amend the fee schedule 
applicable to Members and non-Members \5\ of the Exchange pursuant to 
Exchange Rules 15.1(a) and (c). Specifically, the Exchange proposes to 
adopt new fee code IX, which would be appended to all orders that are 
routed to the Investors Exchange, Inc. (``IEX'') using the using the 
Destination Specific (``DIRC'') routing strategy.\6\
---------------------------------------------------------------------------

    \5\ A Member is defined as ``any registered broker or dealer 
that has been admitted to membership in the Exchange.'' See Exchange 
Rule 1.5(n).
    \6\ See Exchange Rule 11.13(b)(3)(E).
---------------------------------------------------------------------------

    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 Commission has approved IEX as a registered national securities 
exchange,\7\ which is to begin a symbol-by-symbol roll out of symbols 
on August 19, 2016.\8\ As of that date, the Exchange will begin routing 
orders to IEX and Members may elect that their orders be routed 
directly to IEX using the DIRC routing strategy. The Exchange, 
therefore, proposes to amend its fee schedule to adopt new fee code IX, 
which would be appended to all orders that are routed to IEX using the 
DIRC routing strategy. All orders yielding fee code IX will be charged 
a fee of $0.0010 per share.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 78101 (June 17, 
2016), 81 FR 41141 (June 23, 2016) (``IEX Approval Order'').
    \8\ 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 proposed change would enable the Exchange to charge a rate 
reasonably related to the rate that Bats Trading, Inc. (``Bats 
Trading''), the Exchange's affiliated routing broker-dealer, would be 
charged for routing orders to IEX, when it does not qualify for a 
volume tier reduced fee.\9\ As a result, when Bats Trading routes an 
order to IEX which removes liquidity against a non-displayed order, it 
will be charged a standard rate of $0.0009 per share for securities 
priced at or above $1.00 and 0.30% of the transaction's dollar value in 
securities priced below $1.00.\10\ Bats Trading will not be charged a 
fee for orders it routes to IEX which remove liquidity against a 
displayed order.\11\ Bats Trading will pass through these rates to the 
Exchange and the Exchange, in turn, will charge a rate of $0.0010 per 
share, regardless of whether the security is priced above or below 
$1.00. The Exchange notes it would not be able to control whether the 
order it routes to IEX executes against displayed or non-displayed 
liquidity, and therefore, propose to charge a fee for orders that yield 
fee code IX based on IEX's rates for removing non-displayed liquidity. 
The proposed fee under fee code IX would enable the Exchange to 
equitably allocate its costs among all Members utilizing fee code IX.
---------------------------------------------------------------------------

    \9\ The Exchange notes that IEX does not currently offer volume 
tiered pricing.
    \10\ See IEX fee schedule available at https://iextrading.com/trading/#fee-schedule (effective August 19, 2016). See also IEX 
Trading Alert #2016-036, Investors Exchange Fee Schedule Effective 
August 19, 2016, available at https://iextrading.com/trading/alerts/2016/036/.
    \11\ Id.
---------------------------------------------------------------------------

    The Exchange proposes to implement this amendment to its fee 
schedule on immediately.\12\
---------------------------------------------------------------------------

    \12\ The Exchange filed SR-BatsBYX-2016-22 on August 19, 2016. 
On August 26, 2016, the Exchange withdrew that filing and submitted 
this filing.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of section 6 of the Act,\13\ in general, and 
furthers the objectives of section 6(b)(4),\14\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities. The Exchange believes that by allowing customers to route 
specifically to IEX through Bats Trading, as it does with the other 
exchanges, fee code IX represents an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities. As of August 19, 2016, IEX will charge a fee of $0.0009 per 
share for orders which remove liquidity against non-displayed orders 
and no fee for orders that remove liquidity against displayed 
order.\15\ Because the Exchange would not be able to control whether 
the order it routes to IEX executes against displayed or non-displayed 
liquidity, it therefore, believes it is equitable and reasonable to 
charge a fee for orders that yield fee code IX based on IEX's rates for 
removing non-displayed interest. The Exchange further believes that its 
proposal to pass through a fee of $0.0010 per share is equitable and 
reasonable because it accounts for the prices charged by IEX plus the 
additional operation expenses that would be incurred by the Exchange in 
routing orders to IEX.\16\ Furthermore, the Exchange notes that routing 
through Bats Trading is voluntary and Members may utilize other avenues 
to route orders to IEX, such as connecting to IEX directly. Lastly, the 
Exchange also believes that the proposed fee code is non-discriminatory 
because it applies uniformly to all Members.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
    \15\ See supra note 10.
    \16\ The Exchange notes that, pursuant to fee code J, it charges 
all order routed to the Nasdaq Stock Market LLC (``Nasdaq'') a 
uniform rate of $0.0029 per share even though Nasdaq's removal rates 
differs for securities priced above and below $1. See Nasdaq's fee 
schedule available at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. The Exchange also notes that the 
proposed rate for fee code IX is lower that its standard routing fee 
of $0.0029 per share under fee code X, which it charges, for 
example, to orders routed to the National Stock Exchange, Inc. 
(``NSX'') which charges a lower rate to remove liquidity. See NSX's 
fee schedule available at https://nsx.com/client/pricing (charging a 
fee of $0.0003 per share to orders that remove liquidity).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange does not believe that this change represents a 
significant departure from previous pricing offered by the Exchange or 
from pricing offered by the Exchange's competitors. The proposed rate 
would apply uniformly to all Members, and Members may opt to disfavor 
the Exchange's pricing if they believe that alternatives offer them 
better value. Accordingly, the Exchange does not believe that the 
proposed changes will impair the ability of Members or competing venues 
to maintain their competitive standing in the financial markets. The 
Exchange believes that its proposal to pass

[[Page 62200]]

through a fee of $0.0010 for Members' orders that yield fee code IX 
would increase intermarket competition by offering customers an 
alternative means to route to specifically to IEX. As stated above, 
routing through Bats Trading is voluntary and Members may utilize other 
avenues to route orders to IEX, such as connecting to IEX directly. The 
Exchange believes that its proposal would not burden intramarket 
competition because the proposed rate would apply uniformly to all 
Members.

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 written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 
thereunder.\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.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BatsBYX-2016-23 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-BatsBYX-2016-23. 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-BatsBYX-2016-23, and should 
be submitted on or before September 29, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-21489 Filed 9-7-16; 8:45 am]
 BILLING CODE 8011-01-P
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