
[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)]
[Notices]
[Pages 87993-87995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29159]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79430; File No. SR-BatsBYX-2016-36]


Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Make 
Non-Substantive Changes to the Fee Schedule

November 30, 2016.
    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 November 18, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission (the 
``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 the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to make several non-substantive 
changes to the fee schedule applicable to Members \5\ and non-members 
of the Exchange pursuant to Exchange Rules 15.1(a) and (c).
---------------------------------------------------------------------------

    \5\ A 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.batstrading.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
    The Exchange proposes to make certain clarifying and non-
substantive changes to its fee schedule in order to improve formatting, 
eliminate certain redundancies, increase overall readability, and 
provide users with straightforward descriptions to augment overall 
comprehensibility and usability of the existing fee schedule. The 
Exchange notes that these changes are purely clerical and do not 
substantively amend any fee or rebate, nor do they alter the manner in 
which the Exchange assesses fees or calculates rebates. The proposed 
changes are simply intended to provide greater transparency to market 
participants regarding how the Exchange assesses fees and calculates

[[Page 87994]]

rebates. Specifically, the Exchange proposes to:
     Capitalize the title of the column setting forth each 
tier's rate under footnotes 1 and 3;
     amend the title of the column setting forth each tier's 
rate under footnote2 to simply state ``Fee Per Share to Add.'' The fee 
offered under footnote 2's Midpoint Peg Tier is available to orders 
that yield fee code MM. Fee code MM is appended to non-displayed orders 
that add liquidity using the Mid-Point Peg order type.\6\ In renaming 
this column, the Exchange propose to remove reference to Mid-Point Peg 
orders as such language is redundant and set forth in the tier's title 
and list of its applicable fee code;
---------------------------------------------------------------------------

    \6\ See Exchange Rule 11.9(c)(9).
---------------------------------------------------------------------------

     amend the name under first column of the tiers listed 
under footnote 1 to simply state ``Tier 1'', Tier 2'' and ``Tier 3'' as 
the deleted language is redundant with the respective tier's title or 
with the description of the tier's criteria;
     replace the phrase ``equal to or greater than'' with 
``>='' in all required criteria cells under footnotes 1, 2, and 3;
     amend the description of the required criteria under the 
third column of the tiers to begin with ``Member has an'' where 
applicable. Amending this description is intended to harmonize the 
description of the tier's criteria with fee schedules of its affiliate 
exchanges; \7\
---------------------------------------------------------------------------

    \7\ The Exchange's affiliates are Bats BZX Exchange, Inc., Bats 
EDGA Exchange, Inc. and Bats BZX Exchange, Inc.
---------------------------------------------------------------------------

     delete a reference to the ROOC routing strategy, which was 
previously, removed from the Exchange's rulebook.\8\ The Exchange 
previously submitted a proposed rule change for immediate effectiveness 
to discontinue the ROOC routing strategy and to remove references to 
the ROOC routing strategy from its rulebook. The Exchange now proposes 
to delete fee code RN and its rebate, which is appended to orders 
routed to the Nasdaq Stock Market LLC using the ROOC routing strategy 
and add liquidity. The Exchange notes since ceasing to offer the ROOC 
routing option, orders routed to Nasdaq and that add liquidity yield 
feed code A and receive a rebate of $0.0015 per share, which is the 
same rebate that was provided under fee code RN.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release N. 75547 (July 29, 
2015), 80 FR 46369 (August 4, 2015) (SR-BYX-2015-33). See also BATS 
EDGA Exchange and BYX Exchange Decommissioning ROOC Effective August 
10, 2015, available at http://cdn.batstrading.com/resources/release_notes/2015/BATS-EDGA-Exchange-and-BYX-Exchange-Decommissioning-ROOC-Effective-August-10-2015.pdf.
---------------------------------------------------------------------------

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 exchange, and, 
in particular, with the requirements of Section 6 of the Act.\9\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Sections 6(b)(4) of the Act of the Act [sic],\10\ in 
that it provides for the equitable allocation of reasonable dues, fees 
and other charges among members and other persons using any facility or 
system which the Exchange operates or controls. The Exchange believes 
that the proposed changes are reasonable and equitable because they are 
intended to simplify the Exchange's fee schedule and provide greater 
transparency to market participants regarding how the Exchange assesses 
fees and calculates rebates. The Exchange notes that these changes are 
purely clerical and do not substantively amend any fee or rebate, nor 
do they alter the manner in which the Exchange assesses fees or 
calculates rebates. The Exchange also believes that the proposal is 
non-discriminatory because it applies uniformly to all Members. 
Finally, the Exchange believes that the proposed changes will make the 
fee schedule clearer and eliminate potential investor confusion, 
thereby removing impediments to and perfecting the mechanism of a free 
and open market and a national market system, and, in general, 
protecting investors and the public interest.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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, as amended. To 
the contrary, the Exchange believes that the [sic] will not impose any 
burden on competition as the changes are purely clerical and do not 
amend and [sic] fee or rebate.

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 \11\ and paragraph (f) of Rule 19b-4 
thereunder.\12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BatsBYX-2016-36 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-BatsBYX-2016-36. 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 (http://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 also will be available 
for

[[Page 87995]]

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-BatsBYX-2016-36, and should 
be submitted on or before December 27, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-29159 Filed 12-5-16; 8:45 am]
 BILLING CODE 8011-01-P


