Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.21 To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program, 14061-14063 [2017-05222]
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Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
waives the operative delay and
designates the proposed rule change
operative upon filing.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. 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:
mstockstill on DSK3G9T082PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File SR–IEX–
2017–06 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–IEX–2017–06. 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–IEX–
2017–06 and should be submitted on or
before April 6, 2017.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2017–05210 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80215; File No. SR–
BatsEDGA–2017–05]
Self-Regulatory Organizations; Bats
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Rule 11.21
To Modify the Date of Appendix B Web
Site Data Publication Pursuant to the
Regulation NMS Plan To Implement a
Tick Size Pilot Program
March 10, 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 EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ 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.
19 17
18 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).
VerDate Sep<11>2014
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14061
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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The Exchange filed a proposal to
amend Rule 11.21 to modify the date of
Appendix B Web site data publication
pursuant to the Regulation NMS Plan to
Implement a Tick Size Pilot Program
(‘‘Plan’’).
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.
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
Rule 11.21(b) (Compliance with Data
Collection Requirements) 5 implements
the data collection and Web site
publication requirements of the Plan.6
Rule 11.21(b).08 provides, among other
things, that the requirement that the
Exchange or Designated Examining
Authority (‘‘DEA’’) make certain data
publicly available on their Web site
pursuant to Appendix B and C to the
Plan shall commence at the beginning of
the Pilot Period,7 and that the Exchange
or DEA shall make data for the Pre-Pilot
Period publicly available on their Web
5 See Exchange Rule 11.21(b). See also Securities
Exchange Act Release Nos. 77417 (March 22, 2016),
81 FR 17219 (March 28, 2016); and 78799
(September 9, 2016), 81 FR 63549 (September 15,
2016).
6 The Participants filed the Plan to comply with
an order issued by the Commission on June 24,
2014. See Letter from Brendon J. Weiss, Vice
President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014
(‘‘SRO Tick Size Plan Proposal’’). See Securities
Exchange Act Release No 72460 (June 24, 2014), 79
FR 36840 (June 30, 2014); see also Securities
Exchange Act Release No. 74892 (May 6, 2015), 80
FR 27513 (May 13, 2015).
7 Unless otherwise defined herein, capitalized
terms have the meaning ascribed to them in Rule
11.21.
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Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
mstockstill on DSK3G9T082PROD with NOTICES
site pursuant to Appendix B and C to
the Plan by February 28, 2017.8
The Exchange is proposing
amendments to Rule 11.21(b).08 to
delay the date by which Pre-Pilot and
Pilot Appendix B data is to be made
publicly available on the Exchange or
DEA’s Web site from February 28, 2017,
until April 28, 2017.9 Appendix C data
for the Pre-Pilot Period through the
month of January 2017, will be
published on the Exchange or DEA’s
Web site on February 28, 2017, and,
thereafter, on the original 30-day
schedule.
In the SRO Tick Size Plan Proposal,
the Participants stated that the public
data will be made available for free ‘‘on
a disaggregated basis by trading center’’
on the Web sites of the Participants and
the Designated Examining Authorities.10
However, market participants have
expressed confidentiality concerns
regarding this approach for over-thecounter (‘‘OTC’’) data.11 Thus, the
Exchange is filing the instant proposed
rule change to provide additional time
to assess a means of addressing the
confidentiality concerns raised in
connection with the publication of
Appendix B data related to OTC activity
in furtherance of the objectives of the
Plan.12 Pursuant to this amendment,
8 On November 30, 2016, the SEC granted
exemptive relief to the Participants, and the
Exchange filed proposed rule changes to, among
other things, delay the publication of Web site data
pursuant to Appendices B and C to the Plan until
February 28, 2017, and to delay the ongoing Web
site publication by ninety days such that data
would be published within 120 calendar days
following the end of the month. See Letter from
David S. Shillman, Associate Director, Division of
Trading and Markets, Commission, to Marcia E.
Asquith, Senior Vice President and Corporate
Secretary, FINRA dated November 30, 2016; see
also Securities Exchange Act Release No. 79536
(December 13, 2016), 81 FR 91993 (December 19,
2016) (Notice of Filing and Immediate Effectiveness
of File No. SR–BatsEDGA–2016–30).
9 In addition, the Exchange is proposing an
amendment to Rule 11.21(a)(6)(B) to clarify that no
member, irrespective of whether that member
operates a trading center, may execute orders in any
Pilot Security in Test Group Three in price
increments other than $0.05, unless an exception
applies. This proposed amendment makes the rule
consistent with the Plan and conforms
subparagraph (a)(6)(B) with subparagraph (a)(5)(B).
10 See Securities Exchange Act Release No. 73511
(November 3, 2014), 79 FR 66423 (November 7,
2014) (Notice of Filing of Proposed National Market
System Plan to Implement a Tick Size Pilot Program
on a One-Year Pilot Basis, File No. 4–657) (‘‘Tick
Size Plan Proposal’’).
11 See letters from Adam C. Cooper, Senior
Managing Director and Chief Legal Officer, Citadel
Securities, to Brent J. Fields, Secretary,
Commission, dated December 21, 2016 (‘‘Citadel
letter’’); and William Hebert, Managing Director,
Financial Information Forum, to Robert W. Errett,
Deputy Secretary, Commission, dated December 21,
2016 (‘‘FIF letter’’).
12 FINRA, on behalf of the Exchange, also is
submitting an exemptive request with the SEC in
connection with the instant filing.
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17:12 Mar 15, 2017
Jkt 241001
Appendix B data publication will be
delayed until April 28, 2017. The
Participants anticipate filing an
additional proposed rule change in the
near future to address the Appendix B
data publication.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 13 in general, and furthers the
objectives of Section 6(b)(5) of the Act 14
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, 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 Plan is designed to allow the
Commission, market participants, and
the public to study and assess the
impact of increment conventions on the
liquidity and trading of the common
stock of small-capitalization companies.
The Exchange believes that this
proposal is consistent with the Act
because it is in furtherance of the
objectives of Section VII(A) of the Plan
in that it is designed to provide the
Exchange with additional time to assess
a means of addressing the
confidentiality concerns raised in
connection with the publication of
Appendix B data, to comply with the
Plan’s requirements that the data made
publicly available will not identify the
trading center that generated the data.
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 notes that the proposed rule
change implements the provisions of the
Plan.
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
13 15
14 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00090
Fmt 4703
Sfmt 4703
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 15 and Rule 19b–
4(f)(6) thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii), the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has filed the proposed rule
change for immediate effectiveness and
has requested that the Commission
waive the requirement that the proposed
rule change not become operative for 30
days after the date of the filing so that
it may become operative on February
28, 2017.
The Exchange notes that the proposed
rule change is intended to address
confidentiality concerns raised in
connection with the publication of OTC
Appendix B data by permitting the
Exchange to delay Web site publication
of its Appendix B data from February
28, 2017 to April 28, 2017.17 The
Exchange notes that the delay would
provide additional time to assess a
means of addressing the confidentiality
concerns. The Exchange notes that it
expects Participants to file proposed
rule changes related to publishing
Appendix B data.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
delay publication of its Appendix B data
until April 28, 2017. As noted above,
commenters continue to raise concerns
about the publication of OTC Appendix
B data.18 Delaying publication of
Exchange’s Appendix B data 19 will
prevent the publication of partial (i.e.,
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
17 See supra note 11. The Commission notes that
FINRA has submitted a proposed rule change to
delay the publication of OTC Appendix B data. See
SR–FINRA–2017–005.
18 The Commission notes that FINRA has filed a
proposed rule change that is intended to mitigate
confidentiality concerns raised by commenters
regarding the publication of OTC Appendix B data.
See SR–FINRA–2017–006.
19 The Commission notes that other Participants
have proposed to delay the publication of their
Appendix B data until April 28, 2017. See SR–
BatsBYX–2017–05; SR–BatsBZX–2017–15; SR–
BatsEDGX–2017–13; SR–BX–2017–016; SR–CHX–
2017–05; SR–FINRA–2017–005; SR–IEX–2017–07;
SR–NASDAQ–2017–024; SR–Phlx–2017–22; SR–
NYSE–2017–10; SR–NYSEArca–2017–19; SR–
NYSEMKT–2017–11.
16 17
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Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
Exchange-only) Appendix B data
required under the Plan. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative on
February 28, 2017.20
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 proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
mstockstill on DSK3G9T082PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
BatsEDGA–2017–05 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-BatsEDGA–2017–05. 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
20 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:12 Mar 15, 2017
Jkt 241001
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–BatsEDGA–
2017–05 and should be submitted on or
before April 6, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05222 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension: Form 6–K, OMB Control No.
3235–0116, SEC File No. 270–107.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form 6–K (17 CFR 249.306) is a
disclosure document under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) that must be filed by
a foreign private issuer to report
material information promptly after the
occurrence of specified or other
important corporate events that are
disclosed in the foreign private issuer’s
home country. The purpose of Form 6–
K is to ensure that U.S. investors have
access to the same information that
foreign investors do when making
investment decisions. Form 6–K takes
approximately 8.7 hours per response
and is filed by approximately 20,974
issuers annually. We estimate that 75%
of the 8.7 hours per response (6.525
hours) is prepared by the issuer for a
total annual reporting burden of 136,855
hours (6.525 hours per response ×
20,974 responses).
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: March 13, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05270 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80217; File No. SR–
NASDAQ–2017–021]
Self-Regulatory Organizations;
NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Chapter X, Section 7(a) of the
Exchange’s Options Rules
March 10, 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 March 6,
2017, NASDAQ Stock Market, LLC (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
1 15
21 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
Sfmt 4703
14063
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\16MRN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)]
[Notices]
[Pages 14061-14063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05222]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80215; File No. SR-BatsEDGA-2017-05]
Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
11.21 To Modify the Date of Appendix B Web Site Data Publication
Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot
Program
March 10, 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 EDGA Exchange, Inc. (the ``Exchange''
or ``EDGA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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 amend Rule 11.21 to modify the
date of Appendix B Web site data publication pursuant to the Regulation
NMS Plan to Implement a Tick Size Pilot Program (``Plan'').
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 11.21(b) (Compliance with Data Collection Requirements) \5\
implements the data collection and Web site publication requirements of
the Plan.\6\ Rule 11.21(b).08 provides, among other things, that the
requirement that the Exchange or Designated Examining Authority
(``DEA'') make certain data publicly available on their Web site
pursuant to Appendix B and C to the Plan shall commence at the
beginning of the Pilot Period,\7\ and that the Exchange or DEA shall
make data for the Pre-Pilot Period publicly available on their Web
[[Page 14062]]
site pursuant to Appendix B and C to the Plan by February 28, 2017.\8\
---------------------------------------------------------------------------
\5\ See Exchange Rule 11.21(b). See also Securities Exchange Act
Release Nos. 77417 (March 22, 2016), 81 FR 17219 (March 28, 2016);
and 78799 (September 9, 2016), 81 FR 63549 (September 15, 2016).
\6\ The Participants filed the Plan to comply with an order
issued by the Commission on June 24, 2014. See Letter from Brendon
J. Weiss, Vice President, Intercontinental Exchange, Inc., to
Secretary, Commission, dated August 25, 2014 (``SRO Tick Size Plan
Proposal''). See Securities Exchange Act Release No 72460 (June 24,
2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act
Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015).
\7\ Unless otherwise defined herein, capitalized terms have the
meaning ascribed to them in Rule 11.21.
\8\ On November 30, 2016, the SEC granted exemptive relief to
the Participants, and the Exchange filed proposed rule changes to,
among other things, delay the publication of Web site data pursuant
to Appendices B and C to the Plan until February 28, 2017, and to
delay the ongoing Web site publication by ninety days such that data
would be published within 120 calendar days following the end of the
month. See Letter from David S. Shillman, Associate Director,
Division of Trading and Markets, Commission, to Marcia E. Asquith,
Senior Vice President and Corporate Secretary, FINRA dated November
30, 2016; see also Securities Exchange Act Release No. 79536
(December 13, 2016), 81 FR 91993 (December 19, 2016) (Notice of
Filing and Immediate Effectiveness of File No. SR-BatsEDGA-2016-30).
---------------------------------------------------------------------------
The Exchange is proposing amendments to Rule 11.21(b).08 to delay
the date by which Pre-Pilot and Pilot Appendix B data is to be made
publicly available on the Exchange or DEA's Web site from February 28,
2017, until April 28, 2017.\9\ Appendix C data for the Pre-Pilot Period
through the month of January 2017, will be published on the Exchange or
DEA's Web site on February 28, 2017, and, thereafter, on the original
30-day schedule.
---------------------------------------------------------------------------
\9\ In addition, the Exchange is proposing an amendment to Rule
11.21(a)(6)(B) to clarify that no member, irrespective of whether
that member operates a trading center, may execute orders in any
Pilot Security in Test Group Three in price increments other than
$0.05, unless an exception applies. This proposed amendment makes
the rule consistent with the Plan and conforms subparagraph
(a)(6)(B) with subparagraph (a)(5)(B).
---------------------------------------------------------------------------
In the SRO Tick Size Plan Proposal, the Participants stated that
the public data will be made available for free ``on a disaggregated
basis by trading center'' on the Web sites of the Participants and the
Designated Examining Authorities.\10\ However, market participants have
expressed confidentiality concerns regarding this approach for over-
the-counter (``OTC'') data.\11\ Thus, the Exchange is filing the
instant proposed rule change to provide additional time to assess a
means of addressing the confidentiality concerns raised in connection
with the publication of Appendix B data related to OTC activity in
furtherance of the objectives of the Plan.\12\ Pursuant to this
amendment, Appendix B data publication will be delayed until April 28,
2017. The Participants anticipate filing an additional proposed rule
change in the near future to address the Appendix B data publication.
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\10\ See Securities Exchange Act Release No. 73511 (November 3,
2014), 79 FR 66423 (November 7, 2014) (Notice of Filing of Proposed
National Market System Plan to Implement a Tick Size Pilot Program
on a One-Year Pilot Basis, File No. 4-657) (``Tick Size Plan
Proposal'').
\11\ See letters from Adam C. Cooper, Senior Managing Director
and Chief Legal Officer, Citadel Securities, to Brent J. Fields,
Secretary, Commission, dated December 21, 2016 (``Citadel letter'');
and William Hebert, Managing Director, Financial Information Forum,
to Robert W. Errett, Deputy Secretary, Commission, dated December
21, 2016 (``FIF letter'').
\12\ FINRA, on behalf of the Exchange, also is submitting an
exemptive request with the SEC in connection with the instant
filing.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \13\ in general, and furthers the objectives of Section
6(b)(5) of the Act \14\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, 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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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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The Plan is designed to allow the Commission, market participants,
and the public to study and assess the impact of increment conventions
on the liquidity and trading of the common stock of small-
capitalization companies. The Exchange believes that this proposal is
consistent with the Act because it is in furtherance of the objectives
of Section VII(A) of the Plan in that it is designed to provide the
Exchange with additional time to assess a means of addressing the
confidentiality concerns raised in connection with the publication of
Appendix B data, to comply with the Plan's requirements that the data
made publicly available will not identify the trading center that
generated the data.
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
notes that the proposed rule change implements the provisions of the
Plan.
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
Because the foregoing 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 \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has filed
the proposed rule change for immediate effectiveness and has requested
that the Commission waive the requirement that the proposed rule change
not become operative for 30 days after the date of the filing so that
it may become operative on February 28, 2017.
The Exchange notes that the proposed rule change is intended to
address confidentiality concerns raised in connection with the
publication of OTC Appendix B data by permitting the Exchange to delay
Web site publication of its Appendix B data from February 28, 2017 to
April 28, 2017.\17\ The Exchange notes that the delay would provide
additional time to assess a means of addressing the confidentiality
concerns. The Exchange notes that it expects Participants to file
proposed rule changes related to publishing Appendix B data.
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\17\ See supra note 11. The Commission notes that FINRA has
submitted a proposed rule change to delay the publication of OTC
Appendix B data. See SR-FINRA-2017-005.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to delay publication of its Appendix
B data until April 28, 2017. As noted above, commenters continue to
raise concerns about the publication of OTC Appendix B data.\18\
Delaying publication of Exchange's Appendix B data \19\ will prevent
the publication of partial (i.e.,
[[Page 14063]]
Exchange-only) Appendix B data required under the Plan. Therefore, the
Commission hereby waives the 30-day operative delay and designates the
proposed rule change to be operative on February 28, 2017.\20\
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\18\ The Commission notes that FINRA has filed a proposed rule
change that is intended to mitigate confidentiality concerns raised
by commenters regarding the publication of OTC Appendix B data. See
SR-FINRA-2017-006.
\19\ The Commission notes that other Participants have proposed
to delay the publication of their Appendix B data until April 28,
2017. See SR-BatsBYX-2017-05; SR-BatsBZX-2017-15; SR-BatsEDGX-2017-
13; SR-BX-2017-016; SR-CHX-2017-05; SR-FINRA-2017-005; SR-IEX-2017-
07; SR-NASDAQ-2017-024; SR-Phlx-2017-22; SR-NYSE-2017-10; SR-
NYSEArca-2017-19; SR-NYSEMKT-2017-11.
\20\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 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-BatsEDGA-2017-05 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-BatsEDGA-2017-05. 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-BatsEDGA-2017-05 and should be
submitted on or before April 6, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05222 Filed 3-15-17; 8:45 am]
BILLING CODE 8011-01-P
