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., 81842-81844 [2016-27745]
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81842
Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
baseline. The MSRB also considered
other economic impacts of the proposed
rule change and has addressed any
comments relevant to these impacts in
other sections of this document.
The MSRB does not believe that the
proposed rule change will impose any
additional burdens on competition,
relative to the baseline, that are not
necessary or appropriate in furtherance
of the purposes of the Exchange Act.
While the MSRB believes that the
proposed rule changes represent a
reduction in burden compared to the
existing Rule G–10, the MSRB
recognizes that the recordkeeping
requirements associated with the
proposed rule change may impose some
initial costs on dealers that currently
comply with FINRA Rule 4530 but need
to adopt a new set of complaint codes.
The MSRB also recognizes that dealers
that are not currently FINRA members
may experience a greater burden as the
proposed recordkeeping requirements
may constitute a new activity that they
have not previously performed. The
MSRB does not believe, however, that
the potentially greater burden on dealers
that are not FINRA members is
significant enough to constitute a
burden on competition.
The MSRB recognizes that the
proposal represents a new requirement
on municipal advisors and that the
recordkeeping requirements in
particular may disproportionately
impact small municipal advisors.
However, the MSRB does not believe
that the overall burden of the proposed
rule change is significant or that the
impact on small municipal advisors will
materially alter the competitive
landscape. To the extent the proposed
rule changes do lead some firms to exit
the market or consolidate, based on the
SEC’s analysis in its order adopting the
municipal advisor rules, the MSRB
believes that the market for municipal
advisory activities is likely to remain
competitive.38
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
mstockstill on DSK3G9T082PROD with NOTICES
Written comments were neither
solicited nor received on 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
38 Securities Exchange Act Release No. 70462
(Sept. 20, 2013), 78 FR 67468, 67608 (Nov. 12,
2013).
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20:21 Nov 17, 2016
Jkt 241001
Register or within such longer period of
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 self-regulatory organization
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–
MSRB–2016–15 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File
Number SR–MSRB–2016–15. 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 MSRB. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
information that you wish to make
available publicly. All submissions
should refer to File Number SR–MSRB–
2016–15 and should be submitted on or
before December 9, 2016.
For the Commission, pursuant to delegated
authority.39
Brent J. Fields,
Secretary.
[FR Doc. 2016–27738 Filed 11–17–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79307; File No. SR–
BatsBYX–2016–34]
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.
November 14, 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 November
7, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
Exchange pursuant to BYX Rules 15.1(a)
and (c).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
39 17
CFR 200.30–3(a)(12).
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).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Rule 1.5(n).
1 15
E:\FR\FM\18NON1.SGM
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Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
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 increase
the fee for orders yielding fee code Z,
which results from an order routed to a
dark liquidity venue (except through the
SLIM 6 routing strategy), from $0.00200
to $0.00220 per share for securities
priced at or above $1.00 and for
securities priced below $1.00. The
Exchange proposes to implement this
amendment to its Fee Schedule
immediately.7
mstockstill on DSK3G9T082PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,8
in general, and furthers the objectives of
Section 6(b)(4),9 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 its proposal to
increase the fee for orders routed to a
dark liquidity venue that yield fee code
Z represents an equitable allocation of
reasonable dues, fees, and other charges
among Members and other person using
its facilities in that they are designed in
part to cover the costs of routing. While
Members that route orders to a dark
liquidity venue will be paying higher
fees due to the proposal, the increased
6 See
Exchange Rule 11.13(b)(3).
Exchange initially submitted the proposed
rule change on October 28, 2016. (SR–BatsBYX–
2016–30). On November 3, 2016, the Exchange
withdrew SR–BatsBYX–2016–30 and submitted
SR–BatsBYX–2016–31. On November 7, 2016, the
Exchange withdrew SR–BatsBYX–2016–31 and
submitted this filing.
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(4).
7 The
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20:21 Nov 17, 2016
Jkt 241001
revenue received by the Exchange will
be used to fund the Exchange generally,
including the cost of maintaining and
improving the technology used to
handle and route orders from the
Exchange as well as programs that the
Exchange believes help to attract
additional liquidity and thus improve
the depth of liquidity available on the
Exchange. Accordingly, although the
cost of routing is increasing, the
Exchange believes that the increase is a
modest increase and that higher routing
fees will benefit Members in other ways.
Furthermore, the Exchange notes that
routing through the Exchange is
voluntary. Lastly the Exchange also
believes that the proposed amendment
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.
Additionally, 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 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 10 and paragraph (f) of Rule
19b–4 thereunder.11 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
10 15
11 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00125
Fmt 4703
Sfmt 4703
81843
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BatsBYX–2016–34 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BatsBYX–2016–34. 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 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–2016–34, and should be
submitted on or before December 9,
2016.
E:\FR\FM\18NON1.SGM
18NON1
81844
Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2016–27745 Filed 11–17–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79296; File No. SR–FINRA–
2016–029]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving Rule
Change Amending the Code of
Arbitration Procedure for Customer
Disputes and the Code of Arbitration
Procedure for Industry Disputes To
Require All Parties Other Than Pro Se
Customers To File and Serve
Pleadings and Documents Through the
FINRA Office of Dispute Resolution’s
Party Portal and To Permit Mediation
Parties To Use the Portal
mstockstill on DSK3G9T082PROD with NOTICES
November 14, 2016.
I. Introduction
On July 27, 2016, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to amend the
Code of Arbitration Procedure for
Customer Disputes (‘‘Customer Code’’)
and the Code of Arbitration Procedure
for Industry Disputes (‘‘Industry Code’’
and, together with the Customer Code,
‘‘Codes’’), to require all parties, except
customers who are not represented by
an attorney or other person (‘‘pro se
customers’’), to use the FINRA Office of
Dispute Resolution’s Party Portal
(‘‘Party Portal’’) to file initial statements
of claim and to file and serve pleadings
and other documents on FINRA or any
other party. Under the proposed rule
change, FINRA would require parties to
use the Party Portal to file and serve
correspondence relating to discovery
requests, but would not permit parties
to file documents produced in response
to discovery requests through the Party
Portal. FINRA is also proposing to
amend the Code of Mediation Procedure
(‘‘Mediation Code’’) to permit mediation
parties to agree to use the Party Portal
to submit and retrieve all documents
and other communications. In addition,
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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20:21 Nov 17, 2016
Jkt 241001
FINRA is revising other provisions in
the Codes to conform to existing
practice.
The proposed rule change was
published for comment in the Federal
Register on August 17, 2016.3 The
public comment period closed on
September 7, 2016. On September 26,
2016, FINRA extended the time period
in which the Commission must approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether to
approve or disapprove the proposed
rule change to November 15, 2016.4 The
Commission received five comment
letters in response to the Notice.5 On
October 28, 2016, FINRA responded to
the comment letters received in
response to the Notice.6 This order
grants approval of the proposed rule
change.
II. Description of the Proposed Rule
Change 7
Background
In 2004, FINRA implemented an
online, web-based arbitration claim
notification and filing system that
allowed a claimant 8 or claimant’s
counsel to file voluntarily an arbitration
3 See Exchange Act Release No. 78549 (Aug. 11,
2016), 81 FR 54858 (Aug. 17, 2016) (File No. SR–
FINRA–2016–029) (‘‘Notice’’).
4 See Letter from Margo A. Hassan, Associate
Chief Counsel, FINRA, to Lourdes Gonzalez,
Assistant Chief Counsel—Sales Practices, Division
of Trading and Markets, Securities and Exchange
Commission, dated September 26, 2016.
5 See Letters from Steven B. Caruso, Maddox
Hargett & Caruso, P.C., dated August 12, 2016
(‘‘Caruso Letter’’); David Lagziel, CEO, Conflicteam,
dated August 30, 2016 (‘‘Conflicteam Letter’’);
David T. Bellaire, Executive Vice President and
General Counsel, Financial Services Institute
(‘‘FSI’’), dated September 7, 2016 (‘‘FSI Letter’’);
Nicole Iannarone, Assistant Clinical Professor, and
Michael F. Williford, Student Intern, Investor
Advocacy Clinic (‘‘IAC’’), Georgia State University
College of Law, dated September 7, 2016 (‘‘IAC
Letter’’); and Hugh Berkson, President, Public
Investors Arbitration Bar Association (‘‘PIABA’’),
dated September 7, 2016 (‘‘PIABA Letter’’). The
comment letters are available on FINRA’s Web site
at https://www.finra.org, at the principal office of
FINRA, at the Commission’s Web site at https://
www.sec.gov/comments/sr-finra-2016-029/
finra2016029.shtml, and at the Commission’s Public
Reference Room.
6 See Letter from Margo A. Hassan, Associate
Chief Counsel, FINRA, to Brent J. Fields, Secretary,
Securities and Exchange Commission, dated
October 28, 2016 (‘‘FINRA Letter’’). The FINRA
Letter is available on FINRA’s Web site at https://
www.finra.org, at the principal office of FINRA, at
the Commission’s Web site at https://www.sec.gov/
comments/sr-finra-2016-029/finra2016029.shtml,
and at the Commission’s Public Reference Room.
7 The subsequent description of the proposed rule
change is substantially excerpted from FINRA’s
description in the Notice. See Notice, 81 FR 54858–
66.
8 See Rules 12100(e) and 13100(e). The term
‘‘claimant’’ means a party that files the statement
of claim that initiates an arbitration proceeding.
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
claim through that system (‘‘online
claim filing system’’).9 Currently, the
Codes allow a claimant to file a claim 10
either in hard copy or by using the
online claim filing system.11 The online
claim filing system allows a claimant to
complete forms, submit documents, and
pay filing fees online.
In June 2013, FINRA introduced a
separate secure, online service called
the Dispute Resolution Portal (‘‘DR
Portal’’) to facilitate interactions among
parties, arbitrators, mediators, and
FINRA staff on arbitration case-related
matters. As further discussed below, the
DR Portal includes both a Party Portal
and an Arbitrator and Mediator Portal.
The Party Portal uses an invitation/
registration process that provides a way
to send and receive arbitration and
mediation case documents. For
example, once a party notifies FINRA of
the name of the person who should be
given access to the arbitration or
mediation case file (typically the party’s
representative), FINRA sends an email
to the named person with an invitation
to register on the Party Portal via a
personalized web address link that
provides complete access to the
specified case. Once registered, the
representative can provide other
individuals (such as legal assistants and
co-counsel) with access to appropriate
cases on the Party Portal.
FINRA initially opened the Party
Portal to a small number of firms to gain
experience with the technology and to
incorporate user feedback. Over time,
FINRA expanded access to the Party
Portal, and as of July 20, 2015, FINRA
allowed all parties to use the Party
Portal voluntarily in all arbitration and
mediation cases filed as of that date.
Through the Party Portal, parties can,
among other things, receive documents
from and send documents to FINRA,
receive service 12 of a claim, submit an
answer to a claim, submit additional
case documents, view the status of a
case, and select arbitrators.
FINRA has periodically upgraded the
Party Portal to allow parties to, among
other things, schedule hearings, receive
automated messages when new
documents are posted, see an indication
of received documents not yet viewed,
and send documents to other Party
Portal case participants. FINRA believes
that using the online claim filing system
improves the forum by hastening the
9 See
Notice to Members 04–56.
Rules 12302(a) and 13302(a).
11 See FINRA, Arbitration Online Claim Filing,
available at https://www.finra.org/arbitration-andmediation/online-claim-filing.
12 Service is the process of delivering a pleading
(e.g., the statement of claim or answer) or other
documents to the opposing party.
10 See
E:\FR\FM\18NON1.SGM
18NON1
Agencies
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81842-81844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27745]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79307; File No. SR-BatsBYX-2016-34]
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.
November 14, 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 November 7, 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BYX Rules
15.1(a) and (c).
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange.'' See
Exchange Rule 1.5(n).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.com, at the
[[Page 81843]]
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 increase the fee for orders yielding fee
code Z, which results from an order routed to a dark liquidity venue
(except through the SLIM \6\ routing strategy), from $0.00200 to
$0.00220 per share for securities priced at or above $1.00 and for
securities priced below $1.00. The Exchange proposes to implement this
amendment to its Fee Schedule immediately.\7\
---------------------------------------------------------------------------
\6\ See Exchange Rule 11.13(b)(3).
\7\ The Exchange initially submitted the proposed rule change on
October 28, 2016. (SR-BatsBYX-2016-30). On November 3, 2016, the
Exchange withdrew SR-BatsBYX-2016-30 and submitted SR-BatsBYX-2016-
31. On November 7, 2016, the Exchange withdrew SR-BatsBYX-2016-31
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,\8\ in general, and
furthers the objectives of Section 6(b)(4),\9\ 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 its proposal to increase the fee
for orders routed to a dark liquidity venue that yield fee code Z
represents an equitable allocation of reasonable dues, fees, and other
charges among Members and other person using its facilities in that
they are designed in part to cover the costs of routing. While Members
that route orders to a dark liquidity venue will be paying higher fees
due to the proposal, the increased revenue received by the Exchange
will be used to fund the Exchange generally, including the cost of
maintaining and improving the technology used to handle and route
orders from the Exchange as well as programs that the Exchange believes
help to attract additional liquidity and thus improve the depth of
liquidity available on the Exchange. Accordingly, although the cost of
routing is increasing, the Exchange believes that the increase is a
modest increase and that higher routing fees will benefit Members in
other ways. Furthermore, the Exchange notes that routing through the
Exchange is voluntary. Lastly the Exchange also believes that the
proposed amendment is non-discriminatory because it applies uniformly
to all Members.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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. Additionally,
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 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 \10\ and paragraph (f) of Rule 19b-4
thereunder.\11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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-2016-34 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BatsBYX-2016-34. 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 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-2016-34, and should
be submitted on or before December 9, 2016.
[[Page 81844]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-27745 Filed 11-17-16; 8:45 am]
BILLING CODE 8011-01-P