4324 Federal Register / Vol. 80, No. 17 / Tuesday, January 27, 2015 / Notices 

1 17 CFR 242.612(c). 

2See Securities Exchange Act Release No. 68303 

(November 27, 2012), 77 FR 71652 (December 3, 

2012) (‘‘RPI Approval Order’’) (SR–BYX–2012–019). 

3See Securities Exchange Act Release No. 71249 

(January 7, 2014), 79 FR 2229 (January 13, 2012) 

(SR–BYX–2014–001) (extending the pilot period); 

Securities Exchange Act Release No. 71250 (January 

7, 2014), 79 FR 2234 (January 13, 2012) (Order 

Granting an Extension to Limited Exemption From 

Rule 612(c) of Regulation NMS in Connection With 

the Exchange’s Retail Price Improvement Program). 

4See letter from Eric Swanson, Senior Vice 

President and General Counsel, BYX, to Elizabeth 

M. Murphy, Secretary, Commission, dated January 

16, 2015. 

J. Method and Frequency of Processor 

Evaluation 

Not applicable. 

K. Dispute Resolution 

Section III(C) of the Plan provides for 

each Participant to designate an 

individual to represent the Participant 

as a member of an Operating Committee. 

No later than the initial date of the Plan, 

the Operating Committee shall designate 

one member of the Operating Committee 

to act as the Chair of the Operating 

Committee. Any recommendation for an 

amendment to the Plan from the 

Operating Committee that receives an 

affirmative vote of at least two-thirds of 

the Participants, but is less than 

unanimous, shall be submitted to the 

Commission as a request for an 

amendment to the Plan initiated by the 

Commission under Rule 608. 

On September 18, 2014, the Operating 

Committee, duly constituted and 

chaired by Mr. Christopher B. Stone of 

FINRA, met and voted to amend the 

Plan as set forth herein in accordance 

with Section III(C) of the Plan. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed Eighth 

Amendment 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 4– 

631 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 4–631. 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 Plan that 

are filed with the Commission, and all 

written communications relating to the 

Plan 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 

Participants’ principal offices. 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 4–631 and should be submitted 

on or before February 17, 2015. 

By the Commission. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01384 Filed 1–26–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, January 29, 2015 at 2:00 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or her designee, has 

certified that, in her opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matter at the Closed Meeting. 

Commissioner Piwowar, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in closed 

session. 

The subject matter of the Closed 

Meeting will be: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings; 

Consideration of amicus participation; 

and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: January 22, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01519 Filed 1–23–15; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74115; File No. SR–BYX– 

2012–019] 

Self-Regulatory Organization; BATS YExchange, Inc.; Order Granting an 

Extension to Limited Exemption From 

Rule 612(c) of Regulation NMS in 

Connection With the Exchange’s Retail 

Price Improvement Program 

January 22, 2015. 

On November 27, 2012, the Securities 

and Exchange Commission 

(‘‘Commission’’) issued an order 

pursuant to its authority under Rule 

612(c) of Regulation NMS (‘‘Sub-Penny 

Rule) 1 that granted the BATS YExchange, Inc. (‘‘BYX’’ or the 

‘‘Exchange’’) a limited exemption from 

the Sub-Penny Rule in connection with 

the operation of the Exchange’s Retail 

Price Improvement (‘‘RPI’’) Program (the 

‘‘Program’’). The limited exemption was 

granted concurrently with the 

Commission’s approval of the 

Exchange’s proposal to adopt the 

Program for a one-year pilot term.2 The 

exemption was granted coterminous 

with the effectiveness of the pilot 

Program and has been extended once; 3

both the pilot Program and exemption 

are scheduled to expire on January 31, 

2015. 

The Exchange now seeks to extend 

the exemption until January 31, 2016.4

The Exchange’s request was made in 

conjunction with an immediately 

effective filing that extends the 

operation of the Program until January 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 17 / Tuesday, January 27, 2015 / Notices 4325 

5See SR–BYX–2015–05. 

6See RPI Approval Order, supra note 2, at 77 FR 

at 71657. 

7 17 CFR 200.30–3(a)(83). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 73410 

(October 23, 2014), 79 FR 64447 (October 29, 2014) 

(SR–BX–2014–048) (proposing RPI program and 

exemption from SEC Rule 612 under Regulation 

NMS, 17 CFR 242.612, in connection therewith); 

see also Securities Exchange Act Release No. 73836 

(December 15, 2014), 79 FR 75852 (December 19, 

2014) (SR–BX–2014–059). 

4A Retail Order is defined in BX Rule 4780(a)(2), 

in part, as ‘‘an agency or riskless principal order 

that satisfies the criteria of FINRA Rule 5320.03, 

that originates from a natural person and is 

submitted to the Exchange by a Retail Member 

Organization, provided that no change is made to 

the terms of the order with respect to price (except 

in the case that a market order is changed to a 

marketable limit order) or side of market and the 

order does not originate from a trading algorithm or 

any other computerized methodology.’’ 

5A Retail Price Improvement Order is defined in 

BX Rule 4780(a)(3), in part, as consisting of ‘‘nondisplayed liquidity on the Exchange that is priced 

better than the Protected NBBO by at least $0.001 

and that is identified as such.’’ 

31, 2016.5 In its request to extend the 

exemption, the Exchange notes that the 

Program was implemented gradually 

over time. Accordingly, the Exchange 

has asked for additional time to allow 

itself and the Commission to analyze 

data concerning the Program, which the 

Exchange committed to provide to the 

Commission.6 For this reason and the 

reasons stated in the Order originally 

granting the limited exemption, the 

Commission finds that extending the 

exemption, pursuant to its authority 

under Rule 612(c) of Regulation NMS, is 

appropriate in the public interest and 

consistent with the protection of 

investors. 

Therefore, it is hereby ordered, that, 

pursuant to Rule 612(c) of Regulation 

NMS, the Exchange is granted a limited 

exemption from Rule 612(c) of 

Regulation NMS that allows it to accept 

and rank orders priced equal to or 

greater than $1.00 per share in 

increments of $0.001, in connection 

with the operation of its RPI Program, 

until January 31, 2016. 

The limited and temporary exemption 

extended by this Order is subject to 

modification or revocation if at any time 

the Commission determines that such 

action is necessary or appropriate in 

furtherance of the purposes of the 

Securities Exchange Act of 1934. 

Responsibility for compliance with any 

applicable provisions of the federal 

securities laws must rest with the 

persons relying on the exemption that is 

the subject of this Order. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01425 Filed 1–26–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74107; File No. SR–BX– 

2015–005] 

Self-Regulatory Organizations; 

NASDAQ OMX BX; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Changes To Amend Rule 7018 To 

Amend Fees and Rebates in 

Connection With BX’s Retail Price 

Improvement Program 

January 21, 2015. 

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 January 

12, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the 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 proposing changes to 

amend BX Rule 7018 to amend fees and 

rebates in connection with BX’s Retail 

Price Improvement Program. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxbx.cchwall

street.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. 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 

The purpose of this proposal is to 

amend BX Rule 7018 to amend fees and 

rebates for execution of orders under 

BX’s Retail Price Improvement (‘‘RPI’’) 

program. BX recently adopted the RPI 

program,3 which provides incentives to 

member firms (or a division thereof) 

approved by the Exchange to participate 

in the program (a ‘‘Retail Member 

Organization’’ or ‘‘RMO’’) to submit 

designated ‘‘Retail Orders’’ 4 for the 

purpose of seeking price improvement. 

All BX members may enter retail price 

improvement orders (‘‘RPI Orders’’),5 a 

form of non-displayed orders that are 

priced more aggressively than the 

Protected National Best Bid or Offer 

(‘‘NBBO’’) by at least $0.001 per share, 

for the purpose of offering such price 

improvement. RMOs may use two types 

of Retail Orders. A Type 1 Retail Order 

is eligible to execute only against RPI 

Orders and other orders (such as 

midpoint pegged orders) that will 

provide price improvement. Type 2 

Retail Orders interact first with 

available RPI Orders and other price 

improving orders, and then are eligible 

to access non-price improving liquidity 

on the BX book and to route to other 

trading venues if so designated. 

BX currently offers a rebate of $0.0025 

per share executed to RMOs with 

respect to Retail Orders that execute 

against RPI Orders. RMO Retail Orders 

that execute against other orders 

providing price improvement with 

respect to the NBBO will receive a 

rebate otherwise applicable to 

executions of orders that access 

liquidity. For Type 2 Retail Orders that 

execute against non-price improving 

orders on the BX book, BX offers a 

rebate otherwise applicable to execution 

of orders that access liquidity. Similarly, 

when Type 2 Retail Orders are routed 

and execute at another trading venue, 

BX charges the fee otherwise applicable 

to execution of routed orders. For RPI 

Orders that provide liquidity, BX 

charges a fee of $0.0025 per share 

executed. Other orders that provide 

liquidity to Retail Orders will receive 

the credit or pay the fee otherwise 

applicable to orders that provide 

liquidity. 

BX is proposing to provide greater 

incentives to RMOs to participate in the 

program by providing two new tiers of 

credits provided under the program. 

Specifically, BX proposes to provide 

RMOs a credit of $0.0005 per share 

executed for a Retail Order that accesses 

non-Retail Price Improvement midpoint 

liquidity. This is the same credit all 

orders that execute against midpoint 

pegged orders currently receive under 


asabaliauskas on DSK5VPTVN1PROD with NOTICES