Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees for Use on Bats EDGX Exchange, Inc., 13897-13899 [2017-05087]
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
not unreasonably discriminatory
because they apply equally to all
Members submitting orders for the
account(s) of Professionals. All similarly
situated Professional orders are subject
to the same rebate schedule, and access
to the Exchange is offered on terms that
are not unfairly discriminatory. In
addition, the proposed changes to the
Program are equitable and not unfairly
discriminatory because, while only
Professional order flow qualifies for the
Program, an increase in Professional
order flow will bring greater volume and
liquidity, which benefit all market
participants by providing more trading
opportunities and tighter spreads.
Similarly, offering increasing credits to
Members for submitting and executing
higher percentages of total national
customer volume (increased credit rates
at increased volume tiers) is equitable
and not unfairly discriminatory because
such increased rates and tiers encourage
Members to direct increased amounts of
Professional contracts to the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
rule change would increase both
intermarket and intramarket
competition by incenting Members to
direct orders for the account(s) of
Professionals to the Exchange, which
should enhance the quality of the
Exchange’s markets and increase the
volume of contracts traded here. To the
extent that this purpose is achieved, all
the Exchange’s market participants
should benefit from the improved
market liquidity. Enhanced market
quality and increased transaction
volume that results from the anticipated
increase in order flow directed to the
Exchange will benefit all market
participants and improve competition
on the Exchange. The Exchange notes
that it operates in a highly competitive
market in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
the Exchange must continually adjust its
fees to remain competitive with other
exchanges and to attract order flow to
the Exchange. The Exchange believes
that the proposed rule change reflects
this competitive environment because it
reduces the Exchange’s fees through
rebates in a manner that encourages
market participants to direct their
customer order flow, to provide
liquidity, and to attract additional
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transaction volume to the Exchange.
Given the robust competition for
volume among options markets, many of
which offer the same products,
implementing a volume increase based
rebate program to attract order flow like
the one being proposed in this filing is
consistent with the above-mentioned
goals of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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)(ii) of the Act,14 and Rule
19b–4(f)(2) 15 thereunder. 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 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 rule-comments@
sec.gov. Please include File Number SR–
MIAX–2017–11 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–MIAX–2017–11. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–MIAX–
2017–11, and should be submitted on or
before April 5, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05091 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80186; File No. SR–Bats
EDGX–2017–12]
Self-Regulatory Organizations; Bats
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Fees for Use
on Bats EDGX Exchange, Inc.
March 9, 2017.
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 February
28, 2017, Bats EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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
16 17
14 15
U.S.C. 78s(b)(3)(A)(ii).
15 17 CFR 240.19b–4(f)(2).
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13897
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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13898
Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
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 EDGX Rules
15.1(a) and (c).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.bats.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
1. Purpose
The Exchange proposes to amend its
fee schedule to remove the Single MPID
Cross-Asset Tier under footnote 1, Add
Volume Tiers. The Exchange determines
the liquidity adding rebate that it will
provide to Members using the
Exchange’s tiered pricing structure.
Currently, the Exchange offers enhanced
rebates under ten Add Volume Tiers set
forth in footnote 1 of the fee schedule
3 15
U.S.C. 78s(b)(3)(A)(ii).
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).
4 17
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for orders that yield fee codes B,6 V,7 Y,8
3,9 and 4.10 Under such pricing
structure, a Member will receive a
rebate between $0.0025 and $0.0033 per
share executed, depending on the tier
for which such Member qualifies. The
Exchange now proposes to amend the
Add Volume Tiers under footnote 1 to
remove the Single MPID Cross-Asset
Tier. Under the Single MPID CrossAsset Tier, a Member receives an
enhanced rebate of $0.0030 per share
where their MPID has: (i) On the
Exchange’s equity options platform
(‘‘EDGX Options’’) an ADAV 11 in
Market Maker 12 orders greater than or
equal to 0.12% of average OCV; 13 and
(ii) an ADAV greater than or equal to
0.12% of average TCV 14. The Exchange
is proposing to eliminate the tier
because it has not achieved the desired
effect, despite being designed to
incentivize Members to add liquidity on
both the Exchange’s equites platform
and EDGX Options.
Implementation Date
The Exchange proposes to implement
this amendment to its fee schedule on
March 1, 2017.
6 Fee code B is appended to orders which add
liquidity to EDGX (Tape B) and receives a rebate of
0.00200 per share. See the Exchange’s fee schedule
available at https://www.bats.com/us/equities/
membership/fee_schedule/edgx/.
7 Fee code V is appended to orders which add to
EDGX (Tape A) and receives a rebate of 0.00200 per
share. Id.
8 Fee code Y is appended to orders which add
liquidity to EDGX (Tape C) and receives a rebate of
0.00200 per share. Id.
9 Fee code 3 is appended to orders which add
liquidity to EDGX, pre and post market (Tapes A
or C) and receives a rebate of 0.00200 per share. Id.
10 Fee code 4 is appended to orders which add
liquidity to EDGX, pre and post market (Tape B)
and receives a rebate of 0.00200 per share. Id.
11 ‘‘ADAV’’ means average daily added volume
calculated as the number of shares added per day
and ADV is calculated on a monthly basis. See the
Exchange’s fee schedule available at https://
www.bats.com/us/equities/membership/fee_
schedule/edgx/.
12 ‘‘Market Maker’’ means any transaction
identified by a Member for clearing in the Market
Maker range at the OCC, where such Member is
registered with the Exchange as a Market Maker as
defined in Rule 16.1(a)(37). Id.
13 ‘‘OCC Customer Volume’’ or ‘‘OCV’’ means, for
purposes of equities pricing, the total equity and
ETF options volume that clears in the Customer
range at the Options Clearing Corporation (‘‘OCC’’)
for the month for which the fees apply, excluding
volume on any day that the Exchange experiences
an Exchange System Disruption and on any day
with a scheduled early market close, using the
definition of Customer as provided under the
Exchange’s fee schedule for EDGX Options. Id.
14 ‘‘TCV’’ means total consolidated volume
calculated as the volume reported by all exchanges
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which
the fees apply. Id.
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2. Statutory Basis
The Exchange believes that the
proposed removal of the Single MPID
Cross-Asset Tier is consistent with the
objectives of Section 6 of the Act,15 in
general, and furthers the objectives of
Section 6(b)(4),16 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. As
described above, the enhanced rebate
offered under this tier has not affected
Members’ behavior in the manner
originally conceived by the Exchange—
to incentivize Members to add liquidity
on both the Exchange’s equites platform
and EDGX Options. While the Exchange
acknowledges the benefit of Members
entering orders that add liquidity in two
asset classes, the Exchange has generally
determined that it is providing an
additional rebate for liquidity that
would be added on the Exchange
regardless of whether the tier existed.
As such, the Exchange also believes that
the proposed elimination of the Single
MPID Cross-Asset Tier would be nondiscriminatory in that it currently
applies equally to all Members and,
upon elimination, would no longer be
available to any Members. Further, it’s
[sic] elimination will allow the
Exchange to explore other pricing
mechanisms in which it may enhance
market quality for all Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe its
proposal to remove the Single MPID
Cross-Asset Tier under footnote 1 would
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
But rather, this proposal would enhance
the Exchange’s ability to compete with
other market centers. As described
above, the Exchange believes that it is
offering enhanced rebates for orders that
would be submitted to the Exchange
without the enhanced rebate, which
prevents the Exchange from being able
to offer other rebates or reduced fees
that might be able to enhance market
quality to the benefit of all Members. As
such, removing the Single MPID CrossAsset Tier will allow the Exchange other
opportunities to enhance market quality
on the Exchange and ultimately, better
compete with other market centers.
15 15
16 15
E:\FR\FM\15MRN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
15MRN1
Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 17 and paragraph (f) of Rule
19b–4 thereunder.18 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
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–
BatsEDGX–2017–12 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–BatsEDGX–2017–12. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BatsEDGX–
2017–12, and should be submitted on or
before April 5, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05087 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80185; File No. SR–ISE–
2017–17]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Modify the Qualified
Contingent Cross and Solicitation
Rebate Tiers
March 9, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
27, 2017, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II, below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
17 15
U.S.C. 78s(b)(3)(A).
18 17 CFR 240.19b–4(f).
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13899
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes a rule change
to amend the Schedule of Fees to
modify the Qualified Contingent Cross
and Solicitation rebate tiers.
The text of the proposed rule change
is available on the Exchange’s Web site
at www.ise.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 aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Currently, members using QCC and/or
other solicited crossing orders,
including solicited orders executed in
the Solicitation, Facilitation or Price
Improvement Mechanisms, receive
rebates for each originating contract side
in all symbols traded on the Exchange.
Once a member reaches a certain
volume threshold in QCC orders and/or
solicited crossing orders during a
month, the Exchange provides rebates to
that Member for all of its QCC and
solicited crossing order traded contracts
for that month. The applicable rebates
are applied on QCC and solicited
crossing order traded contracts once the
volume threshold is met. Members
receive the Non-‘‘Customer to
Customer’’ rebate for all QCC and/or
other solicited crossing orders except for
QCC and solicited orders between two
Priority Customers. QCC and solicited
orders between two Priority Customers
receive the ‘‘Customer to Customer’’
rebate or ‘‘Customer to Customer’’
Rebate PLUS, respectively.3 Non‘‘Customer to Customer’’ and ‘‘Customer
to Customer’’ volume is aggregated in
determining the applicable volume tier.
3 The PLUS rebate is for Members with total
monthly unsolicited originating Facilitation
contract side volume of 175,000 or more.
E:\FR\FM\15MRN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13897-13899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05087]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80186; File No. SR-Bats EDGX-2017-12]
Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to Fees
for Use on Bats EDGX Exchange, Inc.
March 9, 2017.
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 February 28, 2017, Bats EDGX Exchange, Inc. (the ``Exchange''
or ``EDGX'') 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
[[Page 13898]]
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 EDGX 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.bats.com, at the principal office of the Exchange, and
at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its fee schedule to remove the
Single MPID Cross-Asset Tier under footnote 1, Add Volume Tiers. The
Exchange determines the liquidity adding rebate that it will provide to
Members using the Exchange's tiered pricing structure. Currently, the
Exchange offers enhanced rebates under ten Add Volume Tiers set forth
in footnote 1 of the fee schedule for orders that yield fee codes B,\6\
V,\7\ Y,\8\ 3,\9\ and 4.\10\ Under such pricing structure, a Member
will receive a rebate between $0.0025 and $0.0033 per share executed,
depending on the tier for which such Member qualifies. The Exchange now
proposes to amend the Add Volume Tiers under footnote 1 to remove the
Single MPID Cross-Asset Tier. Under the Single MPID Cross-Asset Tier, a
Member receives an enhanced rebate of $0.0030 per share where their
MPID has: (i) On the Exchange's equity options platform (``EDGX
Options'') an ADAV \11\ in Market Maker \12\ orders greater than or
equal to 0.12% of average OCV; \13\ and (ii) an ADAV greater than or
equal to 0.12% of average TCV \14\. The Exchange is proposing to
eliminate the tier because it has not achieved the desired effect,
despite being designed to incentivize Members to add liquidity on both
the Exchange's equites platform and EDGX Options.
---------------------------------------------------------------------------
\6\ Fee code B is appended to orders which add liquidity to EDGX
(Tape B) and receives a rebate of 0.00200 per share. See the
Exchange's fee schedule available at https://www.bats.com/us/equities/membership/fee_schedule/edgx/.
\7\ Fee code V is appended to orders which add to EDGX (Tape A)
and receives a rebate of 0.00200 per share. Id.
\8\ Fee code Y is appended to orders which add liquidity to EDGX
(Tape C) and receives a rebate of 0.00200 per share. Id.
\9\ Fee code 3 is appended to orders which add liquidity to
EDGX, pre and post market (Tapes A or C) and receives a rebate of
0.00200 per share. Id.
\10\ Fee code 4 is appended to orders which add liquidity to
EDGX, pre and post market (Tape B) and receives a rebate of 0.00200
per share. Id.
\11\ ``ADAV'' means average daily added volume calculated as the
number of shares added per day and ADV is calculated on a monthly
basis. See the Exchange's fee schedule available at https://www.bats.com/us/equities/membership/fee_schedule/edgx/.
\12\ ``Market Maker'' means any transaction identified by a
Member for clearing in the Market Maker range at the OCC, where such
Member is registered with the Exchange as a Market Maker as defined
in Rule 16.1(a)(37). Id.
\13\ ``OCC Customer Volume'' or ``OCV'' means, for purposes of
equities pricing, the total equity and ETF options volume that
clears in the Customer range at the Options Clearing Corporation
(``OCC'') for the month for which the fees apply, excluding volume
on any day that the Exchange experiences an Exchange System
Disruption and on any day with a scheduled early market close, using
the definition of Customer as provided under the Exchange's fee
schedule for EDGX Options. Id.
\14\ ``TCV'' means total consolidated volume calculated as the
volume reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the month for which the
fees apply. Id.
---------------------------------------------------------------------------
Implementation Date
The Exchange proposes to implement this amendment to its fee
schedule on March 1, 2017.
2. Statutory Basis
The Exchange believes that the proposed removal of the Single MPID
Cross-Asset Tier is consistent with the objectives of Section 6 of the
Act,\15\ in general, and furthers the objectives of Section
6(b)(4),\16\ 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. As described above,
the enhanced rebate offered under this tier has not affected Members'
behavior in the manner originally conceived by the Exchange--to
incentivize Members to add liquidity on both the Exchange's equites
platform and EDGX Options. While the Exchange acknowledges the benefit
of Members entering orders that add liquidity in two asset classes, the
Exchange has generally determined that it is providing an additional
rebate for liquidity that would be added on the Exchange regardless of
whether the tier existed. As such, the Exchange also believes that the
proposed elimination of the Single MPID Cross-Asset Tier would be non-
discriminatory in that it currently applies equally to all Members and,
upon elimination, would no longer be available to any Members. Further,
it's [sic] elimination will allow the Exchange to explore other pricing
mechanisms in which it may enhance market quality for all Members.
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\15\ 15 U.S.C. 78f.
\16\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe its proposal to remove the Single
MPID Cross-Asset Tier under footnote 1 would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. But rather, this proposal would enhance the
Exchange's ability to compete with other market centers. As described
above, the Exchange believes that it is offering enhanced rebates for
orders that would be submitted to the Exchange without the enhanced
rebate, which prevents the Exchange from being able to offer other
rebates or reduced fees that might be able to enhance market quality to
the benefit of all Members. As such, removing the Single MPID Cross-
Asset Tier will allow the Exchange other opportunities to enhance
market quality on the Exchange and ultimately, better compete with
other market centers.
[[Page 13899]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4
thereunder.\18\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-BatsEDGX-2017-12 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-BatsEDGX-2017-12. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-BatsEDGX-2017-12, and should be
submitted on or before April 5, 2017.
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\19\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05087 Filed 3-14-17; 8:45 am]
BILLING CODE 8011-01-P
