Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices 11715 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(2). 

11 15 U.S.C. 78s(b)(2)(B). 

12 17 CFR 200.30–3(a)(12). 

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). 

5Exchange Rule 1.5(cc) defines ‘‘System’’ as ‘‘the 

electronic communications and trading facility 

designated by the Board through which securities 

orders of Users are consolidated for ranking, 

execution and, when applicable, routing away.’’ 

6The 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(ee). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 9 of the Act and 

subparagraph (f)(2) of Rule 19b–410

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 11 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEARCA–2015–10 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–NYSEARCA–2015–10. 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 the 

filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEARCA–2015–10, and should be 

submitted on or before March 25, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04422 Filed 3–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74381; File No. SR–EDGX– 

2015–11] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 11.11, 

Routing to Away Trading Centers, To 

Delete References to the ROLF 

Routing Option, Which Routed Orders 

to LavaFlow ECN 

February 26, 2015. 

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 February 

23, 2015, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange filed a proposal to 

amend Rule 11.11, Routing to Away 

Trading Centers, to delete references to 

the ROLF routing option, which routed 

orders to LavaFlow ECN. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 11.11, Routing to Away Trading 

Centers, to delete references under 

subparagraph (7) to the ROLF routing 

option, which routed to LavaFlow ECN. 

These changes are being proposed in 

response to LavaFlow ECN ceasing 

market operations on Friday, January 

30, 2015. Under Rule 11.11(g)(7), an 

order utilizing the ROLF routing option 

first checked the System 5 for available 

shares and was then routed to the 

LavaFlow ECN. If shares remained 

unexecuted after being routed, they 

were cancelled, unless otherwise 

instructed by the User.6 As of February 

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11716 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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. The 

Exchange has met this requirement. 

11For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

2, 2015, the Exchange, via BATS 

Trading, the Exchange’s affiliated 

routing broker-dealer, was no longer 

able to route orders to LavaFlow ECN 

because it ceased operations. As a 

result, the Exchange no longer offers the 

ROLF routing option. Therefore, the 

Exchange proposes to delete the ROLF 

Routing Option under Rule 11.11(g)(7). 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 8

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. The Exchange does not 

believe that this proposal will permit 

unfair discrimination among customers, 

brokers, or dealers because the ROLF 

routing option will no longer be 

available to all Users. The proposed 

change is in response to LavaFlow ECN 

ceasing market operations on Friday, 

January 30, 2015. As of February 2, 

2015, the Exchange, via BATS Trading, 

was no longer able to route orders to 

LavaFlow ECN and, therefore, proposes 

to delete the ROLF routing option under 

Rule 11.11(g)(7). The proposal is 

intended to make the Exchange’s rules 

clearer and less confusing for investors 

by eliminating a routing option that is 

no longer available; 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. 

B. 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 proposed rule 

change is not designed to address any 

competitive issues but rather avoid 

investor confusion by eliminating a 

routing option that is no longer made 

available by the Exchange. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (1) Significantly affect 

the protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) by its 

terms does not become operative for 30 

days after the date of this filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest as it will allow the 

Exchange to avoid potential investor 

confusion during the operative delay 

period by immediately eliminating an 

exchange rule that accounts for a 

routing option that the Exchange can no 

longer provide due to LavaFlow ECN’s 

cessation of operations.11 Accordingly, 

the Commission hereby grants the 

Exchange’s request and designates the 

proposal operative upon filing. 

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: 

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– 

EDGX–2015–11 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–EDGX–2015–11. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–EDGX– 

2015–11, and should be submitted on or 

before March 25, 2015. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices 11717 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 74169 

(January 29, 2015), 80 FR 6145 (‘‘Notice’’). 

4See Notice, supra note 3 at 6147. 

5 Id. 

6 Id. 

7 Id. 

8 Id. 

9 If an Open outcry complex order or SPX Combo 

Order with more than twelve legs is split across 

multiple order tickets, one of the order tickets must 

contain twelve legs. For example, a thirteen leg 

order cannot have seven legs on one ticket and six 

legs on another ticket; rather, one ticket must have 

twelve legs and the other ticket must have one leg. 

Id. at 6147. 

10 Id. 

11 Id. 

12 Id. 

13 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

14 15 U.S.C. 78f(b)(5). 

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

16 15 U.S.C. 78s(b)(2). 

17See Securities Exchange Act Release No. 72957 

(September 2, 2014), 79 FR 53230 (September 8, 

2014) (‘‘SR–CBOE–2014–015 Notice’’). CBOE 

withdrew SR–CBOE–2014–015 on November 21, 

2014. The Exchange notes that, unlike the instant 

filing, SR–CBOE–2014–015 did not impose 

requirements on how a complex order with more 

than 12 legs should be split across multiple tickets. 

While the instant filing imposes such a 

requirement, the Exchange does not believe TPHs 

will be adversely affected by the proposed 

requirement specifying how a complex order with 

more than 12 legs should be split across multiple 

Continued 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04421 Filed 3–3–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74389; File No. SR–CBOE– 

2015–011] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Granting 

Accelerated Approval of a Proposed 

Rule Change To Amend Exchange 

Rules Related To Order Tickets 

February 26, 2015. 

I. Introduction 

On January 23, 2015, the Chicago 

Board Options Exchange, Incorporated 

(the ‘‘Exchange’’ or ‘‘CBOE’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’), 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’)1 and Rule 19b–4 thereunder,2 a 

proposed rule change to amend its rules 

related to use of order tickets. This 

proposal was published for comment in 

the Federal Register on February 4, 

2015.3 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change on an accelerated basis. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to amend its 

rules governing the use of order tickets. 

According to the Exchange, system 

limitations on CBOE currently may 

prevent a multi-part order with more 

than a certain number of legs from being 

entered on a single order ticket for 

representation and execution in open 

outcry as a complex order.4 As a result, 

complex orders with more than the 

applicable leg limitation that are 

represented in open outcry must be split 

up and entered on multiple order 

tickets.5

The Exchange proposes to amend 

CBOE Rule 6.53 to require that complex 

orders of twelve (12) legs or less (one leg 

of which may be for an underlying 

security or security future, as 

applicable) must be entered on a single 

order ticket at time of systemization to 

provide consistency in processing, and 

to enhance the Exchange’s audit trail.6

If permitted by the Exchange via 

Regulatory Circular, complex orders of 

more than twelve (12) legs (one leg of 

which may be for an underlying security 

or security future, as applicable) may be 

split across multiple order tickets, if the 

Trading Permit Holder (‘‘TPH’’) 

representing the complex order includes 

twelve (12) legs on one of the order 

tickets and identifies for the Exchange 

the order tickets that are part of the 

same complex order (in a form and 

manner prescribed by the Exchange).7

The Exchange also proposes to add 

Interpretation and Policy .01 to CBOE 

Rule 24.20 (pertaining to SPX Combo 

Orders) to require that an SPX Combo 

Order for twelve (12) legs or less be 

entered on a single order ticket at time 

of systemization.8 An SPX Combo Order 

that contains more than twelve (12) legs 

may be represented and executed as a 

single SPX Combo Order in accordance 

with CBOE Rule 24.20 if it is split across 

multiple order tickets and the TPH 

representing the SPX Combo Order 

includes twelve (12) legs on one of the 

order tickets and identifies for the 

Exchange the order tickets that are part 

of the same SPX Combo Order (in a 

manner and form prescribed by the 

Exchange).9 The Exchange will 

announce by Regulatory Circular 

whether it will permit SPX Combo 

Orders with more than 12 legs and, if so 

permitted, the form and manner in 

which the TPH must link the multiple 

order tickets.10 The Exchanges notes 

that a TPH may submit an order that 

does not satisfy these ticket 

requirements, but such order may not be 

represented or executed as a single SPX 

Combo Order in accordance with Rule 

24.20.11 The Exchange also notes that 

Rules 24.20 already specifies an 

applicable ratio, and it is proposing no 

changes to the ratio through this rule 

filing.12

III. Discussion and Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.13 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,14 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

Commission also finds that the 

proposed rule change is consistent with 

Section 6(b)(1) of the Act,15 which 

provides that the Exchange be organized 

and have the capacity to be able to carry 

out the purposes of the Act and to 

enforce compliance by the Exchange’s 

members, and persons associated with 

members, with the Act, the rules and 

regulations thereunder and the rules of 

the Exchange. 

The Commission notes that CBOE’s 

proposal is designed to help enhance 

the Exchange’s audit trail with respect 

to open outcry complex order 

processing and SPX Combo Orders. The 

Commission believes that the proposal 

will help to protect investors and the 

public interest because the Commission 

believes an audit trail serves to provides 

regulators with information that aids 

them in surveiling activity on their 

market. 

In addition, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,16 for approving the proposed 

rule change prior to the 45th day after 

publication of notice in the Federal 

Register. The Commission notes that the 

substance of this proposal was noticed 

for comment as part of changes 

proposed in a prior CBOE proposed rule 

change, which CBOE withdrew.17 The 

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