Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Ministerial and Corrective Changes to Rules 11.9, 11.13, 11.16, 11.22, and 11.27, 86346-86348 [2016-28776]
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86346
DATES:
Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
SECURITIES AND EXCHANGE
COMMISSION
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on November 22,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Express, Priority Mail, & First-Class
Package Service Contract 13 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2017–22, CP2017–42.
SUPPLEMENTARY INFORMATION:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–28791 Filed 11–29–16; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail and
First-Class Package Service
Negotiated Service Agreement
AGENCY:
ACTION:
Postal ServiceTM.
Notice.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
SUMMARY:
DATES:
Effective date: December 30,
2016.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on November 22,
2016, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail & First-Class Package Service
Contract 37 to Competitive Product List.
Documents are available at
www.prc.gov, Docket Nos. MC2017–25,
CP2017–45.
sradovich on DSK3GMQ082PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2016–28794 Filed 11–29–16; 8:45 am]
the most significant parts of such
statements.
[Release No. 34–79386; File No. SR–
BatsBYX–2016–35]
Effective date: November 30,
2016.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Bats
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Make
Ministerial and Corrective Changes to
Rules 11.9, 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 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 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 11.9(a)(2), 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
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
BILLING CODE 7710–12–P
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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1. Purpose
The Exchange proposes to make
ministerial and corrective changes to
Exchange Rules 11.9(a)(2), 11.13(b),
11.16(g)(4), 11.22(f), and
11.27(a)(7)(A)(i)2. First, the exchange
proposes to harmonize the description
of BYX Market Orders under Exchange
Rule 11.9(a)(2) with the description of
an identical order type on the
Exchange’s affiliate, Bats BZX Exchange,
Inc. (‘‘BZX’’). Exchange Rule 11.9(a)(2)
currently states that a BYX Market
Order that is designated as BYX Only 5
with a time-in-force of Day 6 will be
cancelled if, when reaching the
Exchange, it cannot be executed on the
System 7 in accordance with Exchange
Rule 11.13(a)(4) unless the reason that
such BYX Market Order cannot be
executed is because it is entered into the
System and the NBO (NBB) is greater
(less) than the Upper (Lower) Price
Band, in which case such order will be
posted by the System to the BYX Book,
and priced at the Upper (Lower) Price
Band, and re-priced as set forth in Rule
11.18(e)(5)(B). This mirrors the
description of BZX Market Orders under
BZX Rule 11.9(a)(2), but for the BZX
rule stating that the BZX Market Order
in the circumstance described in the
text would be posted by the System to
the BZX Book, and displayed at the
Upper (Lower) Price Band. Therefore, in
order to make the description of market
orders identical under both rules, the
Exchange proposes to replace the phrase
‘‘and priced’’ with the term ‘‘displayed.8
Second, 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 9 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
5 See
Exchange Rule 11.9(c)(4).
Exchange Rule 11.9(b)(2).
7 See Exchange Rule 1.5(aa).
8 See Securities Exchange Act Release No. 73875
(December 18, 2014), 79 FR 77552 (December 24,
2014) (SR–BATS–2014–068).
9 See Exchange Rule 1.5(cc).
6 See
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Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
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).
Third, 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.10
Fourth, 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 11 in general, and furthers the
objectives of Section 6(b)(5) of the Act 12
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 cross-reference and
typographical error, harmonize identical
rules with the Exchange’s affiliates, as
well as eliminate a reference to a market
data product that is no longer provided.
The Exchange notes the changes to
Exchange Rules 11.9(a)(2), 11.13(b),
11.16(a)(4), and 11.27(a)(7)(A)(i)2. are
ministerial and do not alter the
10 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.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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Jkt 241001
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 13 and paragraph (f)(6) of Rule 19b–
4 thereunder,14 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
13 15
14 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
Frm 00029
Fmt 4703
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86347
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:
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
No. SR–BatsBYX–2016–35 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–BatsBYX–2016–35. 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
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86348
Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BatsBYX–
2016–35 and should be submitted on or
before December 21, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–28776 Filed 11–29–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79391; File No. SR–NSCC–
2016–803]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Advance Notice To Accelerate Its
Trade Guaranty, Add New Clearing
Fund Components, Enhance Its
Intraday Risk Management, Provide for
Loss Allocation of ‘‘Off-the-Market
Transactions,’’ and Make Other
Changes
November 23, 2016.
Pursuant to Section 806(e)(1) of Title
VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
entitled the Payment, Clearing, and
Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’) 1 and Rule
19b–4(n)(1)(i) under the Securities
Exchange Act of 1934 (‘‘Act’’),2 notice is
hereby given that on October 25, 2016,
National Securities Clearing Corporation
(‘‘NSCC’’ or the ‘‘Corporation’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
advance notice SR–NSCC–2016–803
(‘‘Advance Notice’’) as described in
Items I, II and III below, which Items
have been prepared primarily by the
clearing agency.3 The Commission is
publishing this notice to solicit
comments on the Advance Notice from
interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Advance
Notice
sradovich on DSK3GMQ082PROD with NOTICES
CFR 200.30–3(a)(12).
U.S.C. 5465(e)(1).
2 17 CFR 240.19b–4(n)(1)(i).
3 On October 25, 2016, NSCC filed this Advance
Notice as a proposed rule change (SR–NSCC–2016–
005) with the Commission pursuant to Section
19(b)(1) of the Act, 15 U.S.C. 78s(b)(1) and Rule
19b–4, 17 CFR 240.19b–4. A copy of the proposed
rule change is available at https://www.dtcc.com/
legal/sec-rule-filings.aspx.
1 12
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II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Advance Notice
In its filing with the Commission, the
clearing agency included statements
concerning the purpose of and basis for
the Advance Notice and discussed any
comments it received on the Advance
Notice. The text of these statements may
be examined at the places specified in
Item IV below. The clearing agency has
prepared summaries, set forth in
sections A and B below, of the most
significant aspects of such statements.
(A) Clearing Agency’s Statement on
Comments on the Advance Notice
Received From Members, Participants,
or Others
NSCC has not received any written
comments relating to this proposed rule
change. NSCC will notify the
Commission of any written comments it
receives.
(B) Advance Notice Filed Pursuant to
Section 806(e) of the Payment, Clearing
and Settlement Supervision Act
Description of Change
This Advance Notice consists of
amendments to NSCC’s Rules &
15 17
Procedures (‘‘Rules’’) 4 in order to (i)
accelerate NSCC’s trade guaranty from
midnight of one day after trade date
(‘‘T+1’’) to the point of trade comparison
and validation for bilateral submissions
or to the point of trade validation for
locked-in submissions, (ii) add three
new components to the Clearing Fund
formula and eliminate the current
Specified Activity charge from the
Clearing Fund formula, (iii) amend
Procedure II to remove language that
permits NSCC to delay processing and
reporting for certain index receipt
transactions, (iv) enhance NSCC’s
current intraday mark-to-market margin
process and clarify the circumstances
and criteria for its intraday risk
management monitoring and intraday
collections of mark-to-market margin,
(v) introduce a new loss allocation
provision for any trades that fall within
the proposed definition of ‘‘Off-theMarket Transactions’’ and (vi) make a
technical change to Procedure XV to
remove the reference to ID Net
Subscribers, as described below.
(i) Accelerate the NSCC Trade Guaranty
Pursuant to Addendum K of the
Rules, NSCC currently guarantees the
completion of trades that are cleared
and settled through NSCC’s Continuous
Net Settlement (‘‘CNS’’) 5 system (‘‘CNS
4 Capitalized terms not defined herein are defined
in the Rules, available at https://dtcc.com/∼/media/
Files/Downloads/legal/rules/nscc_rules.pdf.
5 CNS and its operation are described in Rule 11
and Procedure VII.
PO 00000
Frm 00030
Fmt 4703
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trades’’) and through its Balance Order
Accounting Operation 6 (‘‘Balance Order
trades’’) that have reached the later of
midnight of T+1 or midnight of the day
they are reported to Members.7 NSCC
proposes to amend its Rules in order to
guarantee the completion of CNS trades
and Balance Order trades upon
comparison and validation for bilateral
submissions to NSCC or upon validation
for locked-in submissions to NSCC.
Validation refers to the process whereby
NSCC validates a locked-in trade, or
compares and validates a bilateral trade,
to confirm such trade has sufficient and
correct information for clearance and
settlement processing. For purposes of
this description in the proposed rule
change, the process of comparing and
validating bilateral submissions and the
process for validating locked-in
submissions are collectively referred to
as ‘‘trade validation.’’
NSCC has previously shortened the
time at which its trade guaranty applied
to trades in response to processing
developments and risk management
considerations and to follow industry
settlement cycles.8 Since
implementation of the current trade
guaranty policy, the marketplace has
experienced significant change. The
proposed accelerated trade guaranty and
related proposed changes described
herein would benefit the industry by
mitigating counterparty risk and
enhancing counterparties’ ability to
assess that risk by having NSCC become
the central counterparty to CNS trades
and by applying the trade guaranty to
Balance Order trades at an earlier point
in the settlement cycle.
The transfer of counterparty credit
risk from Members to NSCC at an earlier
point in the settlement cycle facilitates
a shortened holding period of bilateral
credit risk for counterparties by
transferring the obligation onto NSCC,
which is better equipped to manage that
counterparty credit risk, including
potential systemic impact, compared to
the counterparties themselves.
6 The Balance Order Accounting Operation is
described in Rule 5 and Procedure V. NSCC does
not become a counterparty to Balance Order trades,
but it does provide a trade guaranty to the receive
and deliver parties that remains effective through
close of business on the originally scheduled
settlement date.
7 Today, shortened process trades, such as sameday and next-day settling trades, are already
guaranteed upon comparison or trade recording
processing.
8 See Securities Exchange Act Release Nos. 44648
(August 2, 2001), 66 FR 42245 (August 10, 2001)
(SR–NSCC–2001–11); 35442 (March 3, 1995), 60 FR
13197 (March 10, 1995) (SR–NSCC–95–02); 35807
(June 5, 1995), 60 FR 31177 (June 13, 1995) (SR–
NSCC–95–03); and 27192 (August 29, 1989), 54 FR
37010 (approving SR–NSCC–87–04, SR–MCC–87–
03, and SR–SCCP–87–03 until December 31, 1990).
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]]>Agencies
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Notices]
[Pages 86346-86348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28776]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79386; File No. SR-BatsBYX-2016-35]
Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Ministerial and Corrective Changes to Rules 11.9, 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 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 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 11.9(a)(2), 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 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 11.9(a)(2), 11.13(b), 11.16(g)(4), 11.22(f), and
11.27(a)(7)(A)(i)2. First, the exchange proposes to harmonize the
description of BYX Market Orders under Exchange Rule 11.9(a)(2) with
the description of an identical order type on the Exchange's affiliate,
Bats BZX Exchange, Inc. (``BZX''). Exchange Rule 11.9(a)(2) currently
states that a BYX Market Order that is designated as BYX Only \5\ with
a time-in-force of Day \6\ will be cancelled if, when reaching the
Exchange, it cannot be executed on the System \7\ in accordance with
Exchange Rule 11.13(a)(4) unless the reason that such BYX Market Order
cannot be executed is because it is entered into the System and the NBO
(NBB) is greater (less) than the Upper (Lower) Price Band, in which
case such order will be posted by the System to the BYX Book, and
priced at the Upper (Lower) Price Band, and re-priced as set forth in
Rule 11.18(e)(5)(B). This mirrors the description of BZX Market Orders
under BZX Rule 11.9(a)(2), but for the BZX rule stating that the BZX
Market Order in the circumstance described in the text would be posted
by the System to the BZX Book, and displayed at the Upper (Lower) Price
Band. Therefore, in order to make the description of market orders
identical under both rules, the Exchange proposes to replace the phrase
``and priced'' with the term ``displayed.\8\
---------------------------------------------------------------------------
\5\ See Exchange Rule 11.9(c)(4).
\6\ See Exchange Rule 11.9(b)(2).
\7\ See Exchange Rule 1.5(aa).
\8\ See Securities Exchange Act Release No. 73875 (December 18,
2014), 79 FR 77552 (December 24, 2014) (SR-BATS-2014-068).
---------------------------------------------------------------------------
Second, 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 \9\ 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
[[Page 86347]]
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).
---------------------------------------------------------------------------
\9\ See Exchange Rule 1.5(cc).
---------------------------------------------------------------------------
Third, 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.\10\
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\10\ 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.
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Fourth, 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 \11\ in general, and furthers the objectives of Section
6(b)(5) of the Act \12\ 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 cross-reference and
typographical error, harmonize identical rules with the Exchange's
affiliates, as well as eliminate a reference to a market data product
that is no longer provided. The Exchange notes the changes to Exchange
Rules 11.9(a)(2), 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.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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(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 \13\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\14\ 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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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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:
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-BatsBYX-2016-35 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-BatsBYX-2016-35. 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
[[Page 86348]]
information that you wish to make available publicly. All submissions
should refer to File No. SR-BatsBYX-2016-35 and should be submitted on
or before December 21, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-28776 Filed 11-29-16; 8:45 am]
BILLING CODE 8011-01-P
