Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Bats BZX Exchange, Inc.'s Options Platform, 37472-37474 [2017-16931]
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Federal Register / Vol. 82, No. 153 / Thursday, August 10, 2017 / Notices
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POSTAL SERVICE
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[FR Doc. 2017–16833 Filed 8–9–17; 8:45 am]
BILLING CODE 7710–12–P
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DATES: Date of notice required under 39
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CP2017–260.
SUMMARY:
Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2017–16834 Filed 8–9–17; 8:45 am]
BILLING CODE 7710–12–P
Plenary Board (Executive)
Closed session: 11:00–11:30 a.m.
• Board Chair’s Opening Remarks
• Approval of Prior Minutes
• Director’s Remarks
• Award Involving an NSB Member
Plenary Board
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Chris Blair,
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Office.
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The Postal Service gives
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DATES: Date of notice required under 39
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FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, (202) 268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on August 4, 2017,
it filed with the Postal Regulatory
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Product Change—Priority Mail
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[FR Doc. 2017–17031 Filed 8–8–17; 4:15 pm]
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Stanley F. Mires,
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81328; File No. SR–
BatsBZX–2017–51]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Related to Fees
for Use on Bats BZX Exchange, Inc.’s
Options Platform
August 7, 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 July 31,
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, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
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 BZX 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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 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).
2 17
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Federal Register / Vol. 82, No. 153 / Thursday, August 10, 2017 / Notices
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
Implementation Date
mstockstill on DSK30JT082PROD with NOTICES
1. Purpose
The Exchange proposes to amend its
fee schedule for its equity options
platform (‘‘BZX Options’’) to modify the
qualification criteria of Tier 2 of the
Firm,6 Broker Dealer 7 and Joint Back
Office 8 Non-Penny Pilot 9 Add Volume
Tiers under footnote 8.
The Exchange currently offers three
Firm, Broker Dealer and Joint Back
Office Non-Penny Add Volume Tiers
under footnote 8, which provide an
enhanced rebate ranging from $0.33 to
$0.82 per contract for qualifying orders
that add liquidity in Non Penny Pilot
Securities and yield fee code NF.10 The
Exchange now proposes to modify Tier
2’s required criteria.
Currently under Tier 2, a Member’s
orders that yield fee code NF receive an
enhanced rebate of $0.53 per contract
where the Member has an: (i) ADV 11
6 ‘‘Firm’’ applies to any transaction identified by
a Member for clearing in the Firm range at the OCC,
excluding any Joint Back Office transaction. See the
Exchange’s fee schedule available at https://
www.bats.com/us/options/membership/fee_
schedule/bzx/.
7 ‘‘Broker Dealer’’ applies to any order for the
account of a broker dealer, including a foreign
broker dealer, that clears in the Customer range at
the Options Clearing Corporation (‘‘OCC’’). Id.
8 ‘‘Joint Back Office’’ applies to any transaction
identified by a Member for clearing in the Firm
range at the OCC that is identified with an origin
code as Joint Back Office. A Joint Back Office
participant is a Member that maintains a Joint Back
Office arrangement with a clearing broker-dealer.
Id.
9 ‘‘Penny Pilot Securities’’ are those issues quoted
pursuant to Exchange Rule 21.5, Interpretation and
Policy .01. Id. ‘‘Non-Penny Pilot’’ refers to all other
issues.
10 Fee code NF is appended to Firm, Broker
Dealer and Joint Back Office orders in Non-Penny
Pilot Securities that add liquidity. Orders that yield
fee code NF are provided a standard rebate of $0.30
per contract. Id.
11 ‘‘ADV’’ means average daily volume calculated
as the number of contracts added or removed,
combined, per day. Id.
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greater than or equal to 3.00% of
average OCV 12; and (ii) ADAV 13 in
Market Maker 14 orders greater than or
equal to 2.75% of average OCV. The
Exchange proposes to modify the
second prong of the qualification
criteria to instead require an ADAV in
Market Maker orders greater than or
equal to 2.50% of average OCV. The
Exchange does not propose any other
changes to Tier 2. Accordingly, as
amended, the Exchange proposes to
provide an enhanced rebate of $0.53 per
contract for orders that yield fee code
NF where the Member has an: (i) ADV
greater than or equal to 3.00% of
average OCV; and (ii) ADAV in Market
Maker orders greater than or equal to
2.50% of average OCV.
The Exchange proposes to implement
the above changes to its fee schedule on
August 1, 2017.15
2. Statutory Basis
The Exchange believes that the
proposed rule changes are consistent
with the objectives of Section 6 of the
Act,16 in general, and furthers the
objectives of Section 6(b)(4),17 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. The Exchange believes that
the proposed modification to the
Exchange’s tiered pricing structure is
reasonable, fair and equitable, and nondiscriminatory. The Exchange operates
in a highly competitive market in which
market participants may readily send
order flow to many competing venues if
they deem fees at the Exchange to be
excessive or incentives provided to be
insufficient. The proposed structure
12 ‘‘OCV’’ means 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. Id.
13 ‘‘ADAV’’ means average daily added volume
calculated as the number of contracts added per
day. See the Exchange’s fee schedule available at
https://www.bats.com/us/options/membership/fee_
schedule/bzx/.
14 ‘‘Market Maker’’ applies to 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.
15 The Exchange notes that is has already
amended the Fee Schedule applicable to BZX
Options for August 1, 2017, and thus, has not
proposed to amend the date of the Fee Schedule.
See SR–BatsBZX–2017–48, available at https://
www.bats.com/us/equities/regulation/rule_filings/
bzx/.
16 15 U.S.C. 78f.
17 15 U.S.C. 78f(b)(4).
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37473
remains intended to attract order flow to
the Exchange by offering market
participants a competitive pricing
structure. The Exchange believes it is
reasonable to offer and incrementally
modify incentives intended to help to
contribute to the growth of the
Exchange.
Volume-based pricing structures such
as that maintained by the Exchange
have been widely adopted by
exchanges, including the Exchange, and
are equitable because they are open to
all Members on an equal basis and
provide additional benefits or discounts
that are reasonably related to: (i) The
value to an exchange’s market quality;
(ii) associated higher levels of market
activity, such as higher levels of
liquidity provisions and/or growth
patterns; and (iii) introduction of higher
volumes of orders into the price and
volume discovery processes. In
particular, the proposed change to
footnote 8 is a minor change intended
to make meeting Tier 2 more attainable,
which, in turn, is intended to continue
to incentivize Members to send
increased order flow to the Exchange in
an effort to qualify for the enhanced
rebates made available by the tier. This
increased order flow, in turn,
contributes to the growth of the
Exchange. The Exchange also believes
the rebate associated with the tier is
reasonable as it continues to reflect the
difficulty in achieving the tier. These
incentives remain reasonably related to
the value to the Exchange’s market
quality associated with higher levels of
market activity, including liquidity
provision and the introduction of higher
volumes of orders into the price and
volume discovery processes. The
proposed change to the tiered pricing
structure is not unfairly discriminatory
because it will apply equally to all
Members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes the proposed
amendment to its fee schedule would
not impose any burden on competition
that is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that the
proposed change represents a significant
departure from previous pricing offered
by the Exchange or pricing offered by
the Exchange’s competitors.
Additionally, Members may opt to
disfavor the Exchange’s pricing if they
believe that alternatives offer them
better value. Accordingly, the Exchange
does not believe that the proposed
change will impair the ability of
Members or competing venues to
maintain their competitive standing in
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Federal Register / Vol. 82, No. 153 / Thursday, August 10, 2017 / Notices
the financial markets. The Exchange
does not believe that the proposed
change to the Exchange’s tiered pricing
structure burdens competition, but
instead, enhances competition, as it is
intended to increase the
competitiveness of the Exchange.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 18 and paragraph (f) of Rule
19b–4 thereunder.19 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:
mstockstill on DSK30JT082PROD 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 Number SR–
BatsBZX–2017–51 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–2017–51. 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 Number SR–
BatsBZX–2017–51 and should be
submitted on or before August 31, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16931 Filed 8–9–17; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81316; File No. SR–IEX–
2017–10]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing of Amendment No. 2 and Order
Granting Accelerated Approval of
Proposed Rule Change, as Modified by
Amendment No. 2, Relating to
Auctions in IEX-Listed Securities,
Dissemination of Auction-Related
Market Data, and Trading Halts and
Pauses
August 4, 2017.
I. Introduction
On April 20, 2017, Investors Exchange
LLC (‘‘IEX’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
19 17 CFR 240.19b–4(f).
VerDate Sep<11>2014
17:03 Aug 09, 2017
1 15
Jkt 241001
II. Description of the Proposed Rule
Change, as Modified by Amendment
No. 2
A. Overview
The Commission recently granted
IEX’s Form 1 application for registration
BILLING CODE 8011–01–P
20 17
18 15
change to adopt rules governing
auctions in IEX-listed securities,
provide for the dissemination of
auction-related market data, and
establish rules relating to trading halts
and pauses. The proposed rule change
was published for comment in the
Federal Register on May 9, 2017.3 The
Commission received one comment
regarding the proposal.4 IEX responded
to the comment on June 5, 2017.5 On
June 22, 2017, pursuant to Section
19(b)(2) of the Act,6 the Commission
extended the time for Commission
action on the proposal until August 7,
2017.7 IEX filed Amendment No. 1 to
the proposal on July 10, 2017. On July
19, 2017, IEX filed Amendment No 2 to
the proposal, which superseded and
replaced Amendment No. 1 in its
entirety.8 The Commission is publishing
this notice to solicit comment on
Amendment No. 2 to the proposed rule
change from interested persons and is
approving the proposed rule change, as
modified by Amendment No. 2, on an
accelerated basis.
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3 See Securities Exchange Act Release No. 80583
(May 3, 2017), 82 FR 21634 (May 9, 2017)
(‘‘Notice’’).
4 See letter from Joan C. Conley, Senior Vice
President and Corporate Secretary, Nasdaq, to Brent
J. Fields, Secretary, Commission, dated May 30,
2017 (‘‘Nasdaq Letter’’).
5 See letter from Sophia Lee, General Counsel,
IEX, to Brent J. Fields, Secretary, Commission,
dated June 5, 2017 (‘‘IEX Response’’).
6 15 U.S.C. 78s(b)(2).
7 See Securities Exchange Act Release No. 80998
(June 22, 2017), 82 FR 29355 (June 28, 2017).
8 As discussed more fully below, Amendment No.
2 revises the proposal to: (1) Clarify the process for
determining the auction match price; (2) modify
certain definitions used to determine the auction
match price to account for the requirement under
the National Market System Plan to Implement a
Tick Size Pilot Program (‘‘Tick Size Pilot’’) that
certain securities be traded in nickel increments; (3)
modify the process for affecting incremental
extensions of the period for accepting orders after
a Limit Up-Limit Down (‘‘LULD’’) trading pause;
and (4) make other conforming and clarifying
changes. To promote transparency of its proposed
amendment, when IEX filed Amendment No. 2 with
the Commission, it also submitted Amendment No.
2 as a comment letter to the file, which the
Commission posted on its Web site and placed in
the public comment file for SR–IEX–2017–10
(available at https://www.sec.gov/comments/sr-iex2017-10/iex201710-1865053-156219.pdf). The
Exchange also posted a copy of its Amendment No.
2 on its Web site (available at https://
iextrading.com/docs/rule-filings/SR-IEX-2017-10Amendment-2.pdf) when it filed Amendment No. 2
with the Commission.
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]]>Agencies
[Federal Register Volume 82, Number 153 (Thursday, August 10, 2017)]
[Notices]
[Pages 37472-37474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16931]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81328; File No. SR-BatsBZX-2017-51]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use on Bats BZX Exchange, Inc.'s Options Platform
August 7, 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 July 31, 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, II
and III below, which Items have been prepared by the Exchange. The
Exchange has 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 BZX 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.
[[Page 37473]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its fee schedule for its equity
options platform (``BZX Options'') to modify the qualification criteria
of Tier 2 of the Firm,\6\ Broker Dealer \7\ and Joint Back Office \8\
Non-Penny Pilot \9\ Add Volume Tiers under footnote 8.
---------------------------------------------------------------------------
\6\ ``Firm'' applies to any transaction identified by a Member
for clearing in the Firm range at the OCC, excluding any Joint Back
Office transaction. See the Exchange's fee schedule available at
https://www.bats.com/us/options/membership/fee_schedule/bzx/.
\7\ ``Broker Dealer'' applies to any order for the account of a
broker dealer, including a foreign broker dealer, that clears in the
Customer range at the Options Clearing Corporation (``OCC''). Id.
\8\ ``Joint Back Office'' applies to any transaction identified
by a Member for clearing in the Firm range at the OCC that is
identified with an origin code as Joint Back Office. A Joint Back
Office participant is a Member that maintains a Joint Back Office
arrangement with a clearing broker-dealer. Id.
\9\ ``Penny Pilot Securities'' are those issues quoted pursuant
to Exchange Rule 21.5, Interpretation and Policy .01. Id. ``Non-
Penny Pilot'' refers to all other issues.
---------------------------------------------------------------------------
The Exchange currently offers three Firm, Broker Dealer and Joint
Back Office Non-Penny Add Volume Tiers under footnote 8, which provide
an enhanced rebate ranging from $0.33 to $0.82 per contract for
qualifying orders that add liquidity in Non Penny Pilot Securities and
yield fee code NF.\10\ The Exchange now proposes to modify Tier 2's
required criteria.
---------------------------------------------------------------------------
\10\ Fee code NF is appended to Firm, Broker Dealer and Joint
Back Office orders in Non-Penny Pilot Securities that add liquidity.
Orders that yield fee code NF are provided a standard rebate of
$0.30 per contract. Id.
---------------------------------------------------------------------------
Currently under Tier 2, a Member's orders that yield fee code NF
receive an enhanced rebate of $0.53 per contract where the Member has
an: (i) ADV \11\ greater than or equal to 3.00% of average OCV \12\;
and (ii) ADAV \13\ in Market Maker \14\ orders greater than or equal to
2.75% of average OCV. The Exchange proposes to modify the second prong
of the qualification criteria to instead require an ADAV in Market
Maker orders greater than or equal to 2.50% of average OCV. The
Exchange does not propose any other changes to Tier 2. Accordingly, as
amended, the Exchange proposes to provide an enhanced rebate of $0.53
per contract for orders that yield fee code NF where the Member has an:
(i) ADV greater than or equal to 3.00% of average OCV; and (ii) ADAV in
Market Maker orders greater than or equal to 2.50% of average OCV.
---------------------------------------------------------------------------
\11\ ``ADV'' means average daily volume calculated as the number
of contracts added or removed, combined, per day. Id.
\12\ ``OCV'' means 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. Id.
\13\ ``ADAV'' means average daily added volume calculated as the
number of contracts added per day. See the Exchange's fee schedule
available at https://www.bats.com/us/options/membership/fee_schedule/bzx/.
\14\ ``Market Maker'' applies to 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.
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Implementation Date
The Exchange proposes to implement the above changes to its fee
schedule on August 1, 2017.\15\
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\15\ The Exchange notes that is has already amended the Fee
Schedule applicable to BZX Options for August 1, 2017, and thus, has
not proposed to amend the date of the Fee Schedule. See SR-BatsBZX-
2017-48, available at https://www.bats.com/us/equities/regulation/rule_filings/bzx/.
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2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with the objectives of Section 6 of the Act,\16\ in general, and
furthers the objectives of Section 6(b)(4),\17\ 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. The Exchange believes that the proposed modification to the
Exchange's tiered pricing structure is reasonable, fair and equitable,
and non-discriminatory. The Exchange operates in a highly competitive
market in which market participants may readily send order flow to many
competing venues if they deem fees at the Exchange to be excessive or
incentives provided to be insufficient. The proposed structure remains
intended to attract order flow to the Exchange by offering market
participants a competitive pricing structure. The Exchange believes it
is reasonable to offer and incrementally modify incentives intended to
help to contribute to the growth of the Exchange.
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\16\ 15 U.S.C. 78f.
\17\ 15 U.S.C. 78f(b)(4).
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Volume-based pricing structures such as that maintained by the
Exchange have been widely adopted by exchanges, including the Exchange,
and are equitable because they are open to all Members on an equal
basis and provide additional benefits or discounts that are reasonably
related to: (i) The value to an exchange's market quality; (ii)
associated higher levels of market activity, such as higher levels of
liquidity provisions and/or growth patterns; and (iii) introduction of
higher volumes of orders into the price and volume discovery processes.
In particular, the proposed change to footnote 8 is a minor change
intended to make meeting Tier 2 more attainable, which, in turn, is
intended to continue to incentivize Members to send increased order
flow to the Exchange in an effort to qualify for the enhanced rebates
made available by the tier. This increased order flow, in turn,
contributes to the growth of the Exchange. The Exchange also believes
the rebate associated with the tier is reasonable as it continues to
reflect the difficulty in achieving the tier. These incentives remain
reasonably related to the value to the Exchange's market quality
associated with higher levels of market activity, including liquidity
provision and the introduction of higher volumes of orders into the
price and volume discovery processes. The proposed change to the tiered
pricing structure is not unfairly discriminatory because it will apply
equally to all Members.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed amendment to its fee schedule
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed change represents a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Additionally, Members may opt to
disfavor the Exchange's pricing if they believe that alternatives offer
them better value. Accordingly, the Exchange does not believe that the
proposed change will impair the ability of Members or competing venues
to maintain their competitive standing in
[[Page 37474]]
the financial markets. The Exchange does not believe that the proposed
change to the Exchange's tiered pricing structure burdens competition,
but instead, enhances competition, as it is intended to increase the
competitiveness of the Exchange.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \18\ and paragraph (f) of Rule 19b-4
thereunder.\19\ 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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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 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 Number SR-BatsBZX-2017-51 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-2017-51. 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 Number SR-BatsBZX-2017-51 and should
be submitted on or before August 31, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16931 Filed 8-9-17; 8:45 am]
BILLING CODE 8011-01-P
