Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.27 of Bats BZX Exchange, Inc. To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program, 23475-23477 [2017-10309]
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<![CDATA[
Federal Register / Vol. 82, No. 97 / Monday, May 22, 2017 / Notices
mstockstill on DSK30JT082PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Section 6(b)(8) of the Act 58 require
[sic] that the Exchange’s rules not
impose any burden on competition that
is not necessary or appropriate. 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 provisions of the
CAT NMS Plan approved by the
Commission, and is designed to assist
the Exchange in meeting its regulatory
obligations pursuant to the Plan.
Similarly, all national securities
exchanges and FINRA are proposing a
similar proposed fee change to
implement the requirements of the CAT
NMS Plan. Therefore, this is not a
competitive fee filing and, therefore, it
does not raise competition issues
between and among the exchanges and
FINRA.
Moreover, as previously described,
the Exchange believes that the proposed
rule change fairly and equitably
allocates costs among CAT Reporters. In
particular, the proposed fee schedule is
structured to impose comparable fees on
similarly situated CAT Reporters, and
lessen the impact on smaller CAT
Reporters. CAT Reporters with similar
levels of CAT activity will pay similar
fees. For example, Industry Members
(other than Execution Venue ATSs) with
higher levels of message traffic will pay
higher fees, and those with lower levels
of message traffic will pay lower fees.
Similarly, Execution Venue ATSs and
other Execution Venues with larger
market share will pay higher fees, and
those with lower levels of market share
will pay lower fees. Therefore, given
that there is generally a relationship
between message traffic and market
share to the CAT Reporter’s size, smaller
CAT Reporters generally pay less than
larger CAT Reporters. Accordingly, the
Exchange does not believe that the CAT
Fees would have a disproportionate
effect on smaller or larger CAT
Reporters. In addition, ATSs and
exchanges will pay the same fees based
on market share. Therefore, the
Exchange does not believe that the fees
will impose any burden on the
competition between ATSs and
exchanges. Accordingly, the Exchange
believes that the proposed fees will
minimize the potential for adverse
effects on competition between CAT
Reporters in the market.
58 15
U.S.C. 78f(b)(8).
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Furthermore, the tiered, fixed fee
funding model limits the disincentives
to providing liquidity to the market.
Therefore, the proposed fees are
structured to limit burdens on
competitive quoting and other liquidity
provision in the market.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 59 of the Act and
subparagraph (f)(2) of Rule 19b–4 60
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 61 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEARCA–2017–52 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.
59 15
U.S.C. 78s(b)(3)(A).
60 17 CFR 240.19b–4(f)(2).
61 15 U.S.C. 78s(b)(2)(B).
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All submissions should refer to File
Number SR–NYSEARCA–2017–52. 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–
NYSEARCA–2017–52 and should be
submitted on or before June 12, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.62
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–10302 Filed 5–19–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80687; File No. SR–
BatsBZX–2017–31]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Rule 11.27 of
Bats BZX Exchange, Inc. To Modify the
Date of Appendix B Web Site Data
Publication Pursuant to the Regulation
NMS Plan To Implement a Tick Size
Pilot Program
May 16, 2017.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
62 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 82, No. 97 / Monday, May 22, 2017 / Notices
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 4,
2017, Bats BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend Rule 11.27 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
mstockstill on DSK30JT082PROD with NOTICES
Rule 11.27(b) (Compliance with Data
Collection Requirements) 5 implements
the data collection and Web site
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).
5 See Exchange Rule 11.27(b). See also Securities
Exchange Act Release Nos. 77105 (February 10,
2016), 81 FR 8112 (February 17, 2016); and 77310
(March 7, 2016), 81 FR 13012 (March 11, 2016).
2 17
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23:17 May 19, 2017
Jkt 241001
publication requirements of the Plan.6
Rule 11.27(b).08 provides, among other
things, that the requirement that the
Exchange or Designated Examining
Authority (‘‘DEA’’) make certain data for
the Pre-Pilot Period and Pilot Period 7
publicly available on their Web site
pursuant to Appendix B and C to the
Plan shall commence on April 28,
2017.8 The Exchange is proposing to
amend Rule 11.27.08 to delay the
Appendix B data Web site publication
date until August 31, 2017. The
Exchange is proposing to further delay
the Web site publication of Appendix B
data until August 31, 2017 to permit
additional time to consider a
methodology to mitigate concerns raised
in connection with the publication of
Appendix B data.
Pursuant to this proposed
amendment, the Exchange or DEA
would publish the required Appendix B
data for the Pre-Pilot Period through
April 30, 2017, by August 31, 2017.9
Thereafter, Appendix B data for a given
month would be published within 120
calendar days following month end.10
Thus, for example, Appendix B data for
May 2017 would be made available on
the Exchange or DEA’s Web site by
September 28, 2017, and data for the
month of June 2017 would be made
available on the Exchange or DEA’s Web
site by October 28, 2017.
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 foster cooperation and
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
Exchange Rule 11.27.
8 See Exchange Rule 11.27.08. See also Securities
Exchange Act Release No. 80207 (March 10, 2017),
82 FR 14056 (March 16, 2017). See also Letter from
David S. Shillman, Associate Director, Division of
Trading and Markets, Commission, to Robert L.D.
Colby, Executive Vice President and Chief Legal
Officer, FINRA, dated February 28, 2017.
9 The Exchange initially submitted this proposed
rule change on April 28, 2017. (SR–BatsBZX–2017–
27). On May 4, 2017, the Exchange withdrew SR–
BatsBZX–2017–27 and submitted this filing.
10 FINRA, on behalf of the Exchange, also is
submitting an exemptive request to the SEC in
connection with the instant filing.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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Fmt 4703
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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
consider a methodology to mitigate
concerns raised in connection with the
publication of Appendix B 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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
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 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed under
Rule 19(b)–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
13 15
14 17
E:\FR\FM\22MYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
22MYN1
Federal Register / Vol. 82, No. 97 / Monday, May 22, 2017 / Notices
mstockstill on DSK30JT082PROD with NOTICES
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 the date of
filing.
The Exchange notes that the proposed
rule change is intended to mitigate
confidentiality concerns raised in
connection with section VII(A) of the
Plan, which provides that the data made
publicly available will not identify the
Trading Center that generated the data.
The Exchange states that the additional
time would allow consideration of a
methodology to mitigate concerns
related to the publication of Appendix
B data.15
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will synchronize the timing
for publication of Appendix B data for
all Participants, which should enhance
the consistency and usefulness of the
data.16 Therefore, the Commission
hereby waives the 30-day operative
delay and designates the proposed rule
change to be operative on the date of
filing.17
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
15 The Commission recently approved a FINRA
proposal to implement an aggregated, anonymous
grouped masking methodology for the publication
of Appendix B data related to OTC trading activity.
See Securities Exchange Release No. 80551, (April
28, 2017), 82 FR 20948 (May 4, 2017). See also
Letter from David S. Shillman, Associate Director,
Division of Trading and Markets, Commission, to
Marcia E. Asquith, Executive Vice President FINRA,
dated April 28, 2017.
16 The Commission recently granted exemptive
relief to the Participants delay the publication of
their Appendix B data until August 31, 2017. See
Letter from David S. Shillman, Associate Director,
Division of Trading and Markets, Commission, to
Jennifer Piorko Mitchell, Vice President and Deputy
Corporate Secretary, FINRA, dated April 28, 2017.
The Commission notes that other Participants have
submitted proposed rule changes to delay the
publication of Appendix B data until August 31,
2017. See e.g., SR–BatsBYX–2017–10; SR–
BatsEDGA–2017–10; SR–BatsEDGX–2017–19; SR–
BX–2017–022; SR–CHX–2017–07; SR–FINRA–
2017–010; SR–IEX–2017–12; SR–NASDAQ–2017–
044; SR–Phlx–2017–33; SR–NYSE–2017–19; SR–
NYSEArca-2017–49; SR–NYSEMKT–2017–24.
17 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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23:17 May 19, 2017
Jkt 241001
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–
BatsBZX–2017–31 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–BatsBZX–2017–31. 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–
BatsBZX–2017–31 and should be
submitted on or before June 12, 2017.
PO 00000
Frm 00308
Fmt 4703
Sfmt 4703
23477
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–10309 Filed 5–19–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80690; File No. SR–MIAX–
2017–21]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend MIAX Options Rules
301, Just and Equitable Principles of
Trade; Rule 308, Exemptions From
Position Limits; Rule 404, Series of
Option Contracts Open for Trading;
Rule 514, Priority of Quotes and
Orders; Rule 1325, Telemarketing; and
Rule 1400, Definitions
May 16, 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 May 15,
2017, Miami International Securities
Exchange, LLC (‘‘MIAX Options’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rule 301, Just and
Equitable Principles of Trade; Rule 308,
Exemptions from Position Limits; Rule
404, Series of Option Contracts Open for
Trading; Rule 514, Priority of Quotes
and Orders; Rule 1325, Telemarketing;
and Rule 1400, Definitions.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and
at the Commission’s Public Reference
Room.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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22MYN1
]]>Agencies
[Federal Register Volume 82, Number 97 (Monday, May 22, 2017)]
[Notices]
[Pages 23475-23477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10309]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80687; File No. SR-BatsBZX-2017-31]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
11.27 of Bats BZX Exchange, Inc. To Modify the Date of Appendix B Web
Site Data Publication Pursuant to the Regulation NMS Plan To Implement
a Tick Size Pilot Program
May 16, 2017.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 23476]]
``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 4, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I 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 11.27 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 11.27(b) (Compliance with Data Collection Requirements) \5\
implements the data collection and Web site publication requirements of
the Plan.\6\ Rule 11.27(b).08 provides, among other things, that the
requirement that the Exchange or Designated Examining Authority
(``DEA'') make certain data for the Pre-Pilot Period and Pilot Period
\7\ publicly available on their Web site pursuant to Appendix B and C
to the Plan shall commence on April 28, 2017.\8\ The Exchange is
proposing to amend Rule 11.27.08 to delay the Appendix B data Web site
publication date until August 31, 2017. The Exchange is proposing to
further delay the Web site publication of Appendix B data until August
31, 2017 to permit additional time to consider a methodology to
mitigate concerns raised in connection with the publication of Appendix
B data.
---------------------------------------------------------------------------
\5\ See Exchange Rule 11.27(b). See also Securities Exchange Act
Release Nos. 77105 (February 10, 2016), 81 FR 8112 (February 17,
2016); and 77310 (March 7, 2016), 81 FR 13012 (March 11, 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 Exchange Rule 11.27.
\8\ See Exchange Rule 11.27.08. See also Securities Exchange Act
Release No. 80207 (March 10, 2017), 82 FR 14056 (March 16, 2017).
See also Letter from David S. Shillman, Associate Director, Division
of Trading and Markets, Commission, to Robert L.D. Colby, Executive
Vice President and Chief Legal Officer, FINRA, dated February 28,
2017.
---------------------------------------------------------------------------
Pursuant to this proposed amendment, the Exchange or DEA would
publish the required Appendix B data for the Pre-Pilot Period through
April 30, 2017, by August 31, 2017.\9\ Thereafter, Appendix B data for
a given month would be published within 120 calendar days following
month end.\10\ Thus, for example, Appendix B data for May 2017 would be
made available on the Exchange or DEA's Web site by September 28, 2017,
and data for the month of June 2017 would be made available on the
Exchange or DEA's Web site by October 28, 2017.
---------------------------------------------------------------------------
\9\ The Exchange initially submitted this proposed rule change
on April 28, 2017. (SR-BatsBZX-2017-27). On May 4, 2017, the
Exchange withdrew SR-BatsBZX-2017-27 and submitted this filing.
\10\ FINRA, on behalf of the Exchange, also is submitting an
exemptive request to the SEC in connection with the instant filing.
---------------------------------------------------------------------------
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 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 consider a methodology to mitigate
concerns raised in connection with the publication of Appendix B 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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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 \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19(b)-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
[[Page 23477]]
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 the date of filing.
The Exchange notes that the proposed rule change is intended to
mitigate confidentiality concerns raised in connection with section
VII(A) of the Plan, which provides that the data made publicly
available will not identify the Trading Center that generated the data.
The Exchange states that the additional time would allow consideration
of a methodology to mitigate concerns related to the publication of
Appendix B data.\15\
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\15\ The Commission recently approved a FINRA proposal to
implement an aggregated, anonymous grouped masking methodology for
the publication of Appendix B data related to OTC trading activity.
See Securities Exchange Release No. 80551, (April 28, 2017), 82 FR
20948 (May 4, 2017). See also Letter from David S. Shillman,
Associate Director, Division of Trading and Markets, Commission, to
Marcia E. Asquith, Executive Vice President FINRA, dated April 28,
2017.
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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 synchronize the timing for publication of Appendix B
data for all Participants, which should enhance the consistency and
usefulness of the data.\16\ Therefore, the Commission hereby waives the
30-day operative delay and designates the proposed rule change to be
operative on the date of filing.\17\
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\16\ The Commission recently granted exemptive relief to the
Participants delay the publication of their Appendix B data until
August 31, 2017. See Letter from David S. Shillman, Associate
Director, Division of Trading and Markets, Commission, to Jennifer
Piorko Mitchell, Vice President and Deputy Corporate Secretary,
FINRA, dated April 28, 2017. The Commission notes that other
Participants have submitted proposed rule changes to delay the
publication of Appendix B data until August 31, 2017. See e.g., SR-
BatsBYX-2017-10; SR-BatsEDGA-2017-10; SR-BatsEDGX-2017-19; SR-BX-
2017-022; SR-CHX-2017-07; SR-FINRA-2017-010; SR-IEX-2017-12; SR-
NASDAQ-2017-044; SR-Phlx-2017-33; SR-NYSE-2017-19; SR-NYSEArca-2017-
49; SR-NYSEMKT-2017-24.
\17\ 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 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-BatsBZX-2017-31 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-BatsBZX-2017-31. 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-BatsBZX-2017-31 and should
be submitted on or before June 12, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10309 Filed 5-19-17; 8:45 am]
BILLING CODE 8011-01-P
