Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.13, Order Execution and Routing, To Account for IEX as a Primary Listing Market and To Amend Certain Rules To Reflect the Name Change of NYSE MKT to NYSE American, 43595-43597 [2017-19803]
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Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices
initiative, which is focused on only one
MSRB rule. The MSRB notes that it is
currently monitoring or involved in
various industry initiatives to
modernize identifiers.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period of
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
sradovich on DSKBBY8HB2PROD 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–
MSRB–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.
All submissions should refer to File
Number SR–MSRB–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
VerDate Sep<11>2014
16:54 Sep 15, 2017
Jkt 241001
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 MSRB. 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–MSRB–
2017–06 and should be submitted on or
before October 10, 2017.
For the Commission, pursuant to delegated
authority.70
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19804 Filed 9–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81594; File No. SR–
BatsBZX–2017–57]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
11.13, Order Execution and Routing,
To Account for IEX as a Primary
Listing Market and To Amend Certain
Rules To Reflect the Name Change of
NYSE MKT to NYSE American
September 13, 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
September 6, 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.
70 17
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
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
43595
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend paragraphs (b)(3)(M) and (N) of
Rule 11.13, Order Execution and
Routing, to expand the ability of Users 5
to designate their orders for
participation in the opening, re-opening
(following a halt, suspension, or pause),
or closing process of a primary listing
market other than the Exchange (NYSE,
Nasdaq, NYSE MKT, or NYSE Arca) to
include the Investors Exchange LLC
(‘‘IEX’’). The Exchange also proposes to
amend paragraphs (b)(3)(M) and (N) of
Rule 11.13 as well as Rules 11.24(c)(1)
and 11.26(a) to reflect the name change
of NYSE MKT to NYSE American.
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
Exchange Rule 11.13(b)(3)(N)
describes the ROOC routing option,
under which Users may designate their
orders for participation in the opening
or closing process, in addition to the reopening (following a halt, suspension,
or pause), of a primary listing market
other than the Exchange, if received
before the opening/re-opening/closing
time of such market.6 Under Exchange
Rule 11.13(b)(3)(M), Users may also
elect that their orders be routed to
participate in the primary market’s reopening process, and not its opening or
closing processes. Any remaining shares
5 The term ‘‘User’’ is defined as ‘‘any Member or
Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3.’’ See
Exchange Rule 1.5(cc).
6 See Exchange Rule 11.13(b)(3)(N).
E:\FR\FM\18SEN1.SGM
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43596
Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices
orders in IEX-listed securities are resting
on the BZX Book may wish that their
order only be routed to participate in
IEX’s opening, closing, or re-opening
process. The proposed rule change
promotes just and equitable principles
of trade because it would provide such
Users with additional flexibility with
regard to their orders in IEX-listed
securities.
Lastly, the non-substantive
amendments to paragraphs (b)(3)(M)
and (N) of Rule 11.13 as well as Rules
11.24(c)(1) and 11.26(a) to reflect the
name change of NYSE MKT to NYSE
American also removes impediments to
and perfects the mechanism of a free
and open market and a national market
system because it updates the rules to
reflect the name change and does not
alter the way in which orders in NYSE
American listed securities are handled
and routed.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 12 in general, and furthers the
objectives of Section 6(b)(5) of the Act 13
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. As discussed above, IEX
announced that it intends to become a
primary listing exchange and support
IEX-listed companies beginning in
October 2017.14 Certain Users whose
sradovich on DSKBBY8HB2PROD with NOTICES
are either posted to the BZX Book,7
executed, or routed to destinations on
the System routing table.8
IEX announced that it intends to
become a primary listing exchange and
support IEX-listed companies beginning
in October 2017.9 At that time, the
Exchange will enable Users to elect that
their orders in IEX-listed securities be
routed to IEX to participate in IEX’s
opening, re-opening (following a halt,
suspension, or pause), or closing
process. Therefore, the Exchange
proposes to amend paragraphs (b)(3)(M)
and (N) of Rule 11.13 to include IEX as
a primary listing market to which Users
may designate their orders be routed.10
Lastly, the Exchange also proposes
non-substantive amendments to
paragraphs (b)(3)(M) and (N) of Rule
11.13 as well as Rules 11.24(c)(1) and
11.26(a) to reflect the name change of
NYSE MKT to NYSE American.11
(A) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposal will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The Exchange
believes that its proposal would
increase competition because it offers
Users an alternative means to route
orders to participate in IEX’s opening,
closing, and re-opening following a halt,
suspension, or pause as if they entered
orders on that market directly.
7 The term ‘‘BZX Book’’ is defined as ‘‘the
System’s electronic file of orders.’’ See Exchange
Rule 1.5(e).
8 The term ‘‘System routing table’’ refers to the
proprietary process for determining the specific
options exchanges to which the System routes
orders and the order in which it routes them. See
Exchange Rule 11.13(b)(3).
9 See IEX Trading Alert #2017–05, Listing
Specifications, Testing Opportunities, and
Timelines, available at https://iextrading.com/
trading/alerts/2017/015/. See also Securities
Exchange Act Release No. 81316 (August 4, 2017),
82 FR 37474 (August 10, 2017) (SR–IEX–2017–10)
(Order approving proposed rule change related in
auctions in IEX-listed securities, dissemination of
auction-related data, and provisions governing
trading halts and pauses).
10 The Exchange also proposes to amend
paragraph (b)(3)(M) of Rule 11.13 to replace the
term ‘‘Bats’’ with ‘‘BZX’’ to reflect the correct
defined term of ‘‘BZX Book’’. See Exchange Rule
1.5(e).
11 See Securities Exchange Act Release No.
Securities Exchange Act Release No. 80283 (March
21, 2017), 82 FR 15244 (March 27, 2017) (SR–
NYSEMKT–2017–14).
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 See supra note 9.
VerDate Sep<11>2014
16:54 Sep 15, 2017
Jkt 241001
B. 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: (A) Significantly affect
the protection of investors or the public
interest; (B) impose any significant
burden on competition; and (C) by its
terms, become operative for 30 days
from the date on which it was filed or
such shorter time as the Commission
may designate it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 15 and paragraph (f)(6) of Rule 19b–
4 thereunder,16 the Exchange has
designated this rule filing as noncontroversial. The Exchange has given
the Commission written notice of its
intent to file the proposed rule change,
15 15
16 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
Frm 00083
Fmt 4703
Sfmt 4703
along with a brief description and text
of the proposed rule change at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the 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–2017–57 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BatsBZX–2017–57. 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
E:\FR\FM\18SEN1.SGM
18SEN1
Federal Register / Vol. 82, No. 179 / Monday, September 18, 2017 / Notices
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–2017–57 and should be
submitted on or before October 10,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19803 Filed 9–15–17; 8:45 am]
BILLING CODE 8011–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81597; File No. SR–MRX–
2017–17]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Remove Language
From Chapter 19 of the Rulebook
September 13, 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 August
31, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
sradovich on DSKBBY8HB2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to remove
language from Chapter 19 related to a
systems issue that has been resolved
with the completed migration of the
Exchange to Nasdaq INET.
The text of the proposed rule change
is available on the Exchange’s Web site
at www.ise.com, at the principal office
of the Exchange, and at the
Commission’s Public Reference Room.
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
16:54 Sep 15, 2017
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
3 See Securities Exchange Act Release No. 80965
(June 19, 2017), 82 FR 28716 (June 23, 2017) (SR–
MRX–2017–07).
1 15
VerDate Sep<11>2014
The purpose of the proposed rule
change is to remove language from
Chapter 19 related to a systems issue
that has been resolved with the
completed migration of the Exchange to
Nasdaq INET. On June 6, 2017, the
Exchange filed a proposed rule change
to amend Chapter 19 to notify members
of a systems issue related to allocations
made pursuant to Supplementary
Material .02(a)–(b) to Rule 1901 (‘‘Flash
auction’’).3 As explained in that
proposed rule change, due to a systems
issue, Flash auction allocations
pursuant to Supplementary Material
.02(a)–(b) to Rule 1901 were not being
provided as described in that rule, and
instead Primary Market Maker quotes
were being given a Flash auction
allocation pursuant to Supplementary
Material .01(b)–(c) to Rule 713 after
Priority Customer Orders on the book,
and ahead of Responses, Professional
Orders, and other market maker quotes.
This systems issue has been resolved
with the Exchange’s migration to
Nasdaq INET, which was completed on
Monday, August 21, 2017. As all
symbols are now trading on INET,
contracts executed in a Flash auction
will be allocated correctly pursuant to
Supplementary Material .02 to Rule
1901. The Exchange therefore proposes
to remove the language described above
from its rulebook.
Jkt 241001
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
43597
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.4
In particular, the proposal is consistent
with Section 6(b)(5) of the Act,5 because
is designed to promote just and
equitable principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the proposed rule change is
consistent with the protection of
investors and the public interest
because the systems issue described in
Chapter 19 has been resolved. Due to a
systems issue, allocations in the Flash
auction were not being done in the
manner described in Supplementary
Material .02(a)–(b) to Rule 1901. As a
temporary measure, the Exchange
therefore added language to that effect
to Chapter 19. With the migration of the
Exchange’s trading system to Nasdaq
INET, this systems issue has been
eliminated, and the Exchange therefore
believes that it is appropriate to remove
this language from Chapter 19.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,6 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change eliminates
outdated text reflecting a systems issue
related to Flash auction allocations, and
is not designed to have any competitive
impact.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 15 U.S.C. 78f(b)(8).
5 15
E:\FR\FM\18SEN1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Notices]
[Pages 43595-43597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19803]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81594; File No. SR-BatsBZX-2017-57]
Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 11.13, Order Execution and Routing, To Account for IEX as a
Primary Listing Market and To Amend Certain Rules To Reflect the Name
Change of NYSE MKT to NYSE American
September 13, 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 September 6, 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 paragraphs (b)(3)(M) and (N)
of Rule 11.13, Order Execution and Routing, to expand the ability of
Users \5\ to designate their orders for participation in the opening,
re-opening (following a halt, suspension, or pause), or closing process
of a primary listing market other than the Exchange (NYSE, Nasdaq, NYSE
MKT, or NYSE Arca) to include the Investors Exchange LLC (``IEX''). The
Exchange also proposes to amend paragraphs (b)(3)(M) and (N) of Rule
11.13 as well as Rules 11.24(c)(1) and 11.26(a) to reflect the name
change of NYSE MKT to NYSE American.
---------------------------------------------------------------------------
\5\ The term ``User'' is defined as ``any Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3.'' See Exchange Rule 1.5(cc).
---------------------------------------------------------------------------
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
Exchange Rule 11.13(b)(3)(N) describes the ROOC routing option,
under which Users may designate their orders for participation in the
opening or closing process, in addition to the re-opening (following a
halt, suspension, or pause), of a primary listing market other than the
Exchange, if received before the opening/re-opening/closing time of
such market.\6\ Under Exchange Rule 11.13(b)(3)(M), Users may also
elect that their orders be routed to participate in the primary
market's re-opening process, and not its opening or closing processes.
Any remaining shares
[[Page 43596]]
are either posted to the BZX Book,\7\ executed, or routed to
destinations on the System routing table.\8\
---------------------------------------------------------------------------
\6\ See Exchange Rule 11.13(b)(3)(N).
\7\ The term ``BZX Book'' is defined as ``the System's
electronic file of orders.'' See Exchange Rule 1.5(e).
\8\ The term ``System routing table'' refers to the proprietary
process for determining the specific options exchanges to which the
System routes orders and the order in which it routes them. See
Exchange Rule 11.13(b)(3).
---------------------------------------------------------------------------
IEX announced that it intends to become a primary listing exchange
and support IEX-listed companies beginning in October 2017.\9\ At that
time, the Exchange will enable Users to elect that their orders in IEX-
listed securities be routed to IEX to participate in IEX's opening, re-
opening (following a halt, suspension, or pause), or closing process.
Therefore, the Exchange proposes to amend paragraphs (b)(3)(M) and (N)
of Rule 11.13 to include IEX as a primary listing market to which Users
may designate their orders be routed.\10\
---------------------------------------------------------------------------
\9\ See IEX Trading Alert #2017-05, Listing Specifications,
Testing Opportunities, and Timelines, available at https://iextrading.com/trading/alerts/2017/015/. See also Securities
Exchange Act Release No. 81316 (August 4, 2017), 82 FR 37474 (August
10, 2017) (SR-IEX-2017-10) (Order approving proposed rule change
related in auctions in IEX-listed securities, dissemination of
auction-related data, and provisions governing trading halts and
pauses).
\10\ The Exchange also proposes to amend paragraph (b)(3)(M) of
Rule 11.13 to replace the term ``Bats'' with ``BZX'' to reflect the
correct defined term of ``BZX Book''. See Exchange Rule 1.5(e).
---------------------------------------------------------------------------
Lastly, the Exchange also proposes non-substantive amendments to
paragraphs (b)(3)(M) and (N) of Rule 11.13 as well as Rules 11.24(c)(1)
and 11.26(a) to reflect the name change of NYSE MKT to NYSE
American.\11\
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release No. Securities Exchange
Act Release No. 80283 (March 21, 2017), 82 FR 15244 (March 27, 2017)
(SR-NYSEMKT-2017-14).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \12\ in general, and furthers the objectives of Section
6(b)(5) of the Act \13\ 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. As discussed above, IEX
announced that it intends to become a primary listing exchange and
support IEX-listed companies beginning in October 2017.\14\ Certain
Users whose orders in IEX-listed securities are resting on the BZX Book
may wish that their order only be routed to participate in IEX's
opening, closing, or re-opening process. The proposed rule change
promotes just and equitable principles of trade because it would
provide such Users with additional flexibility with regard to their
orders in IEX-listed securities.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ See supra note 9.
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Lastly, the non-substantive amendments to paragraphs (b)(3)(M) and
(N) of Rule 11.13 as well as Rules 11.24(c)(1) and 11.26(a) to reflect
the name change of NYSE MKT to NYSE American also removes impediments
to and perfects the mechanism of a free and open market and a national
market system because it updates the rules to reflect the name change
and does not alter the way in which orders in NYSE American listed
securities are handled and routed.
(A) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes that its proposal would
increase competition because it offers Users an alternative means to
route orders to participate in IEX's opening, closing, and re-opening
following a halt, suspension, or pause as if they entered orders on
that market directly.
B. 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: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, become operative for 30 days from the date on which it was
filed or such shorter time as the Commission may designate it has
become effective pursuant to Section 19(b)(3)(A) of the Act \15\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\16\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission.
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the 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-2017-57 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BatsBZX-2017-57. 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
[[Page 43597]]
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-2017-57 and should be submitted on or before
October 10, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19803 Filed 9-15-17; 8:45 am]
BILLING CODE 8011-01-P
