Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Ministerial and Corrective Changes to Exchange Rules 11.13, 11.16, 11.22, and 11.27, 86358-86360 [2016-28775]
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86358
Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
to make amendments to Exchange rules
to streamline the operation of Reserve
Orders on the Exchange by removing
little-used functionality that allowed
Reserve Orders to be combined with Q
Orders.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. According to the Exchange, this
proposal would eliminate functionality
not used by market participants, and the
Exchange anticipates that the
technology supporting the change will
be available in less than 30 days after
filing. The Commission believes the
waiver of the operative delay is
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal operative upon
filing.11
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
sradovich on DSK3GMQ082PROD with NOTICES
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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 necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2016–151 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–NYSEArca–2016–151. 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;
PO 00000
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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–
NYSEArca–2016–151 and should be
submitted on or before December 21,
2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–28781 Filed 11–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79385; File No. SR–
BatsBZX–2016–77]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Make
Ministerial and Corrective Changes to
Exchange Rules 11.13, 11.16, 11.22,
and 11.27
November 23, 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
16, 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
Exchange has designated this proposal
as a ‘‘non-controversial’’ proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
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
make ministerial and corrective changes
to Exchange Rules 11.13(b), 11.16(g)(4),
11.22(f), and 11.27(a)(7)(A)(i)2.
The text of the proposed rule change
is available at the Exchange’s Web site
12 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).
4 17 CFR 240.19b–4(f)(6)(iii).
1 15
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Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
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.
sradovich on DSK3GMQ082PROD with NOTICES
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make
ministerial and corrective changes to
Exchange Rules 11.13(b), 11.16(g)(4),
11.22(f), and 11.27(a)(7)(A)(i)2. First, the
Exchange proposed to amend Rule
11.13(b) to correct an incorrect cross
reference. Exchange Rule 11.13(b) states
that depending on the instructions set
by the User 5 when the incoming order
was originally entered, if a market or
marketable limit order has not been
executed in its entirety pursuant to
Exchange Rule 11.13(a) above, the order
shall be eligible for additional
processing under one or more of the
routing options listed under paragraph
(a)(3) of Rule 11.13. The reference to
paragraph (a)(3) of Rule 11.13 is
incorrect as the routing options are
listing under paragraph (b)(3) of Rule
11.13. Therefore, the Exchange proposes
to replace reference to paragraph (a)(3)
with paragraph (b)(3).
Second, the Exchange proposes to
amend Rule 11.16(g)(4) to delete an
unnecessary cross reference. Exchange
Rule 11.16(a)(4) states that ‘‘[t]he passthrough of any compensation to a
Member in accordance with this
subparagraph (g) is unrelated to any
other claims for compensation that are
made in accordance with, and subject to
the limits of, subparagraph (d) of this
Rule 11.16.’’ The Exchange now
proposes to delete reference to ‘‘11.16’’
as a specific reference to the rule is not
integral nor necessary to the meaning or
application of Rule 11.16 generally.6
5 See
Exchange Rule 1.5(cc).
of the rule reference would also
harmonize the rule language with similar rule of the
6 Removal
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16:51 Nov 29, 2016
Jkt 241001
Third, the Exchange proposes to
amend Rule 11.22(f) to delete a
description of the Latency Monitoring
data product, which the Exchange
ceased to offer in May 2015. The
Exchange determined that the customer
demand at that time did not warrant the
infrastructure and ongoing maintenance
expense required to support the
product.
Lastly, the Exchange proposes to
amend Rule 11.27(a)(7)(A)(i)2 to correct
a typographical error by replacing the
phrase ‘‘one of more’’ with ‘‘one or
more’’.
2. Statutory Basis
The Exchange believes that its
proposal 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
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest.
The Exchange believes the proposed
changes promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
they seek to correct an incorrect crossreference and typographical error,
harmonize identical rules with the
Exchange’s affiliates, as well as
eliminate a reference [sic] a market data
product that is no longer provided. The
Exchange notes the changes to Exchange
Rules 11.13(b), 11.16(a)(4), and
11.27(a)(7)(A)(i)2 are ministerial and do
not alter the applications of each rule.
In addition, the deletion of references to
the Latency Monitoring Data product
removes references to a product the
Exchange no longer provides and that
the Exchange is not required by any rule
or regulation to offer. As such, the
proposed amendments would foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities and would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
Exchange’s affiliates, Bats EDGA Exchange, Inc. and
Bats EDGX Exchange, Inc. SR–Bats–EDGX–2016–65
and SR–BatsEDGA–2016–28.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
PO 00000
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Fmt 4703
Sfmt 4703
86359
of the purposes of the Act. On the
contrary, the proposed rule change will
have no impact on competition as it is
simply makes ministerial and corrective
changes while not altering the meaning
or application of each rule.
(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
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 proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
10 17
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86360
Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 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 No. SR–
BatsBZX–2016–77 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.
sradovich on DSK3GMQ082PROD with NOTICES
All submissions should refer to File No.
SR–BatsBZX–2016–77. 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 No. SR–BatsBZX–
2016–77 and should be submitted on or
before December 21, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–28775 Filed 11–29–16; 8:45 am]
BILLING CODE 8011–01–P
11 17
CFR 200.30–3(a)(12).
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16:51 Nov 29, 2016
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79384; File No. SR–
NYSEArca–2016–70]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
Proposed Rule Proposed Rule Change,
as Modified by Amendment Nos. 1 and
2 Thereto, Regarding Use of Rule 144A
Securities by the Fidelity Corporate
Bond ETF, Fidelity Investment Grade
Bond ETF, Fidelity Limited Term Bond
ETF, and Fidelity Total Bond ETF
November 23, 2016.
I. Introduction
On May 11, 2016, NYSE Arca, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to permit the Fidelity Corporate
Bond ETF, Fidelity Investment Grade
Bond ETF, Fidelity Limited Term Bond
ETF, and Fidelity Total Bond ETF
(individually, ‘‘Fund,’’ and collectively,
‘‘Funds’’) to consider securities issued
pursuant to Rule 144A under the
Securities Act of 1933 (‘‘Securities Act’’)
as debt securities eligible for principal
investment. The proposed rule change
was published for comment in the
Federal Register on May 31, 2016.3 On
June 30, 2016, pursuant to Section
19(b)(2) of the Act,4 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 disapprove the proposed
rule change.5 On July 26, 2016, the
Exchange filed Amendment No. 1 to the
proposed rule change.6 On August 29,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 77891
(May 24, 2016), 81 FR 34388 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 78207,
81 FR 44338 (Jul. 7, 2016). The Commission
designated August 29, 2016 as the date by which
the Commission shall either approve or disapprove,
or institute proceedings to determine whether to
disapprove, the proposed rule change.
6 In Amendment No. 1, which amended and
replaced the proposed rule change in its entirety,
the Exchange: (a) corrected certain aspects of the
the investment descriptions for each Fund in
accordance with the Prior Corporate Bond Releases
and Prior Total Bond Releases (as defined herein);
(b) confirmed that all of the Rule 144A securities
in which a Fund invests will be corporate debt
securities for which transactions are reported to
TRACE (as defined herein); and (c) confirmed that
FINRA (as defined herein), on behalf of the
Exchange, is able to access, as needed, trade
information for the Rule 144A securities as well as
certain other fixed income securities held by the
2 17
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
2016, the Commission instituted
proceedings under Section 19(b)(2)(B) of
the Act 7 to determine whether to
approve or disapprove the proposed
rule change, as modified by Amendment
No. 1 thereto.8 In the Order Instituting
Proceedings, the Commission solicited
comments to specified matters related to
the proposal.9 On November 22, 2016,
the Exchange filed Amendment No. 2 to
the proposed rule change.10 The
Commission has received no comments
on the proposed rule change. This order
grants approval of the proposed rule
change, as modified by Amendment
Nos. 1 and 2 thereto.
II. Exchange’s Description of the
Proposal
The Commission approved the listing
and trading of shares (‘‘Shares’’) of the
Funds under NYSE Arca Equities Rule
8.600,11 which governs the listing and
Funds reported to TRACE. Amendment No. 1 is
available at: https://www.sec.gov/comments/srnysearca-2016-70/nysearca201670-1.pdf. Because
Amendment No. 1 to the proposed rule change does
not materially alter the substance of the proposed
rule change or raise unique or novel regulatory
issues, Amendment No. 1 is not subject to notice
and comment.
7 15 U.S.C. 78s(b)(2)(B).
8 See Securities Exchange Act Release No. 78712,
81 FR 60759 (Sept. 2, 2016) (‘‘Order Instituting
Proceedings’’). Specifically, the Commission
instituted proceedings to allow for additional
analysis of the proposed rule change’s consistency
with Section 6(b)(5) of the Act, which requires,
among other things, that the rules of a national
securities exchange be ‘‘designed to prevent
fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade,’’ and
‘‘to protect investors and the public interest.’’ See
id., 81 FR at 60764.
9 See id.
10 In Amendment No. 2, which amended and
replaced the proposed rule change in its entirety,
the Exchange clarified that no more than 35% of a
Fund’s assets may be invested in Rule 144A
securities. Amendment No. 2 is available at: https://
www.sec.gov/comments/sr-nysearca-2016-70/
nysearca201670-2.pdf. Because Amendment No. 2
to the proposed rule change does not materially
alter the substance of the proposed rule change or
raise unique or novel regulatory issues, Amendment
No. 2 is not subject to notice and comment.
11 See Securities Exchange Act Release Nos.
72068 (May 1, 2014), 79 FR 25923 (May 6, 2014)
(SR–NYSEArca–2014–47) (notice of filing of
proposed rule change relating to listing and trading
of Shares of Fidelity Corporate Bond ETF Managed
Shares under NYSE Arca Equities Rule 8.600)
(‘‘Prior Corporate Bond Notice’’); 72439 (Jun. 20,
2014), 79 FR 36361 (Jun. 26, 2014) (SR–NYSEArca–
2014–47) (order approving proposed rule change
relating to listing and trading of Shares of Fidelity
Corporate Bond ETF Managed Shares under NYSE
Arca Equities Rule 8.600) (‘‘Prior Corporate Bond
Order’’ and, together with the Prior Corporate Bond
Notice, ‘‘Prior Corporate Bond Releases’’); 72064
(May 1, 2014), 79 FR 25908 (May 6, 2014) (SR–
NYSEArca–2014–46) (notice of filing of proposed
rule change relating to listing and trading of Shares
of Fidelity Investment Grade Bond ETF; Fidelity
Limited Term Bond ETF; and Fidelity Total Bond
ETF under NYSE Arca Equities Rule 8.600) (‘‘Prior
Total Bond Notice’’); 72748 (Aug. 4, 2014), 79 FR
46484 (Aug. 8, 2014) (SR–NYSEArca–2014–46)
E:\FR\FM\30NON1.SGM
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Agencies
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Notices]
[Pages 86358-86360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28775]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79385; File No. SR-BatsBZX-2016-77]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Ministerial and Corrective Changes to Exchange Rules 11.13, 11.16,
11.22, and 11.27
November 23, 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 16, 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
Exchange has designated this proposal as a ``non-controversial''
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6)(iii) thereunder,\4\ which renders it effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to make ministerial and corrective
changes to Exchange Rules 11.13(b), 11.16(g)(4), 11.22(f), and
11.27(a)(7)(A)(i)2.
The text of the proposed rule change is available at the Exchange's
Web site
[[Page 86359]]
at www.batstrading.com, at the principal office of the Exchange, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make ministerial and corrective changes to
Exchange Rules 11.13(b), 11.16(g)(4), 11.22(f), and 11.27(a)(7)(A)(i)2.
First, the Exchange proposed to amend Rule 11.13(b) to correct an
incorrect cross reference. Exchange Rule 11.13(b) states that depending
on the instructions set by the User \5\ when the incoming order was
originally entered, if a market or marketable limit order has not been
executed in its entirety pursuant to Exchange Rule 11.13(a) above, the
order shall be eligible for additional processing under one or more of
the routing options listed under paragraph (a)(3) of Rule 11.13. The
reference to paragraph (a)(3) of Rule 11.13 is incorrect as the routing
options are listing under paragraph (b)(3) of Rule 11.13. Therefore,
the Exchange proposes to replace reference to paragraph (a)(3) with
paragraph (b)(3).
---------------------------------------------------------------------------
\5\ See Exchange Rule 1.5(cc).
---------------------------------------------------------------------------
Second, the Exchange proposes to amend Rule 11.16(g)(4) to delete
an unnecessary cross reference. Exchange Rule 11.16(a)(4) states that
``[t]he pass-through of any compensation to a Member in accordance with
this subparagraph (g) is unrelated to any other claims for compensation
that are made in accordance with, and subject to the limits of,
subparagraph (d) of this Rule 11.16.'' The Exchange now proposes to
delete reference to ``11.16'' as a specific reference to the rule is
not integral nor necessary to the meaning or application of Rule 11.16
generally.\6\
---------------------------------------------------------------------------
\6\ Removal of the rule reference would also harmonize the rule
language with similar rule of the Exchange's affiliates, Bats EDGA
Exchange, Inc. and Bats EDGX Exchange, Inc. SR-Bats-EDGX-2016-65 and
SR-BatsEDGA-2016-28.
---------------------------------------------------------------------------
Third, the Exchange proposes to amend Rule 11.22(f) to delete a
description of the Latency Monitoring data product, which the Exchange
ceased to offer in May 2015. The Exchange determined that the customer
demand at that time did not warrant the infrastructure and ongoing
maintenance expense required to support the product.
Lastly, the Exchange proposes to amend Rule 11.27(a)(7)(A)(i)2 to
correct a typographical error by replacing the phrase ``one of more''
with ``one or more''.
2. Statutory Basis
The Exchange believes that its proposal 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 promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed changes promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system
because they seek to correct an incorrect cross-reference and
typographical error, harmonize identical rules with the Exchange's
affiliates, as well as eliminate a reference [sic] a market data
product that is no longer provided. The Exchange notes the changes to
Exchange Rules 11.13(b), 11.16(a)(4), and 11.27(a)(7)(A)(i)2 are
ministerial and do not alter the applications of each rule. In
addition, the deletion of references to the Latency Monitoring Data
product removes references to a product the Exchange no longer provides
and that the Exchange is not required by any rule or regulation to
offer. As such, the proposed amendments would foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and would remove impediments to and perfect the mechanism of
a free and open market and a national market system.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. On the contrary, the
proposed rule change will have no impact on competition as it is simply
makes ministerial and corrective changes while not altering the meaning
or application of each rule.
(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
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 proposal is
consistent with the Act. Comments may be submitted by any of the
following methods:
[[Page 86360]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-BatsBZX-2016-77 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-BatsBZX-2016-77. 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 No. SR-BatsBZX-2016-77 and should be
submitted on or before December 21, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-28775 Filed 11-29-16; 8:45 am]
BILLING CODE 8011-01-P