17518 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(4)(ii). 

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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The 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). 

6 ‘‘ADAV’’ means average daily volume calculated 

as the number of shares added per day on a 

monthly basis. 

7 ‘‘TCV’’ means total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply. 

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) 10 of the Act and paragraph 

(f)(4)(ii) of Rule 19b–4 11 thereunder. 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 No. SR– 

CME–2015–005 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 21049–1090. 

All submissions should refer to File 

Number SR–CME–2015–005. 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 or 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of CME and on CME’s Web site at 

http://www.cmegroup.com/marketregulation/rule-filings.html. 

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–CME–2015–005 and should 

be submitted on or before April 22, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07361 Filed 3–31–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74589; File No. SR–BATS– 

2015–23] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

March 26, 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 March 17, 

2015, BATS Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) 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 

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 BATS Rules 

15.1(a) and (c). Changes to the fee 

schedule pursuant to this proposal are 

effective upon filing. 

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 modify its 

fee schedule in order to: (1) Modify the 

requirements for meeting Add Volume 

Tiers 5 and 6; (2) delete Tier 3 of the 

Cross-Asset Step-Up Tiers; (3) adjust 

rebates for orders that yield fee code A; 

(4) add new fee code RN; (5) add a 

clarifying statement regarding fee codes 

applicable to certain orders routed to 

NYSE Arca, Inc. (‘‘NYSE Arca’’); and (6) 

to make a non-substantive change to 

remove a typographical error. 

Modifying Add Volume Tiers 5 and 6 

The Exchange proposes to amend its 

fee schedule to raise the ADAV 6 as a 

percentage of TCV 7 required to meet 

Tiers 5 and 6 of the Add Volume Tiers 

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Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 17519 

8 ‘‘ADV’’ means average daily volume calculated 

as the number of shares added or removed, 

combined, per day on a monthly basis. 

9 ‘‘Step-Up Add TCV’’ means ADAV as a 

percentage of TCV in the relevant baseline month 

subtracted from current ADAV as a percentage of 

TCV. 

10 ‘‘Options Step-Up Add TCV’’ means ADAV as 

a percentage of TCV in January 2014 subtracted 

from current ADAV as a percentage of TCV, using 

the definitions of ADAV and TCV as provided 

under the Exchange’s fee schedule for BATS 

Options. 

11See Securities Exchange Act Release No. 73967 

(December 30, 2014), 80 FR 594 (January 6, 2015) 

(SR–Nasdaq–2014–128). 

from 0.75% and 1.00% to 1.00% and 

1.25%, respectively. Currently, the 

Exchange offers a $0.0031 rebate per 

share added to Members that qualify for 

Tier 5 of the Add Volume Tiers by 

having an ADAV as a percentage of TCV 

equal to or greater than 0.75% or an 

ADV 8 as a percentage of TCV equal to 

or greater than 1.40%. The Exchange 

also offers a $0.0032 rebate per share 

added to Members that qualify for Tier 

6 of the Add Volume Tiers by having an 

ADAV as a percentage of TCV equal to 

or greater than 1.00% or an ADV as a 

percentage of TCV equal to or greater 

than 1.75%. The Exchange is not 

proposing to change the rebates or ADV 

as a percentage of TCV thresholds 

associated with Tiers 5 and 6. 

Cross-Asset Step-Up Tiers 

The Exchange is also proposing to 

eliminate Tier 3 of the Cross-Asset StepUp Tiers. Currently, the Exchange offers 

a $0.0032 rebate per share added to 

Members that qualify for Tier 3 of the 

Cross-Asset Step-Up Tiers by having a 

Step-Up Add TCV 9 from December 

2014 equal to or greater than 0.15% and 

an Options Step-Up Add TCV 10 equal to 

or greater than 0.60%. As stated above, 

the Exchange is proposing to eliminate 

Tier 3, but is not proposing to make any 

changes to existing Tiers 1 and 2. As 

part of this change, the Exchange is also 

proposing to remove the third column 

from the Cross-Asset Step-Up Tiers 

chart because the deletion of Tier 3 

removes any need for a column related 

to a Member’s Step-Up Add TCV from 

December 2014. The Exchange also 

proposes to eliminate the column that 

includes the word ‘‘and’’ between the 

third column and the Options Step-Up 

Add TCV column. 

Fee Code A 

In securities priced at or above $1.00, 

the Exchange currently provides a 

rebate of $0.0015 per share for Members’ 

orders that yield fee code A, which 

routes to Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) and adds liquidity. The 

Exchange proposes to amend its Fee 

Schedule to decrease this rebate to 

$0.0004 per share for Members’ orders 

that yield fee code A. The proposed 

change represents a pass through of the 

lowest possible rebate that BATS 

Trading, Inc. (‘‘BATS Trading’’), the 

Exchange’s affiliated routing brokerdealer, receives for adding liquidity on 

Nasdaq. When BATS Trading routes and 

adds liquidity to Nasdaq, it is rebated a 

standard rate of $0.0004 per share for 

orders in select symbols (‘‘Nasdaq’s 

Select Symbol Program’’). When BATS 

Trading routes to Nasdaq in other 

symbols, it is rebated a standard rate of 

$0.0015 per share. Further, BATS 

Trading might qualify for tiered pricing 

that would increase the amount of the 

rebate received. However, due to billing 

system limitations that do not allow for 

separate rates on a security by security 

basis and in order to maintain a simple 

to understand fee schedule, the 

Exchange will provide a rebate of 

$0.0004 per share for executions in all 

Tapes A, B & C securities routed to 

Nasdaq that yield fee code A. 

The Exchange notes that the proposed 

change is in response to Nasdaq’s 

January 2015 fee change where Nasdaq 

decreased the rebate it provides its 

customers, such as BATS Trading, for 

orders in symbols included in Nasdaq’s 

Select Symbol Program from a rebate of 

$0.0015 per share to a rebate of $0.0004 

per share.11

Fee Code RN 

The Exchange proposes to adopt new 

fee code RN, which would be applied to 

orders routed to Nasdaq using the ROOC 

routing strategy that add liquidity. 

Orders that yield fee code RN will 

receive a rebate of $0.0015 per share. 

The ROOC Routing strategy routes 

orders to participate in the opening, reopening (following a halt, suspension, 

or pause), or closing process of a 

primary listing market if received before 

the opening/re-opening/closing time of 

such market. In turn, an order that has 

been sent to participate in an opening or 

closing process may add liquidity prior 

to the commencement of such process. 

Proposed fee code RN represents a pass 

through of the standard rebate that 

BATS Trading, the Exchange’s affiliated 

routing broker-dealer, is rebated for 

added liquidity on Nasdaq in securities 

not included in Nasdaq’s Select Symbol 

Program (presuming it does not qualify 

for a volume tiered rebate). When BATS 

Trading routes to Nasdaq using the 

ROOC routing strategy and an order 

adds liquidity, BATS Trading receives a 

standard rebate of $0.0015 per share for 

securities that are not included in 

Nasdaq’s Select Symbol Program. As 

noted above, due to billing system 

limitations that do not allow for 

separate rates on a security by security 

basis and in order to maintain a simple 

to understand fee schedule, the 

Exchange will pass through the rebate of 

$0.0015 per share for executions in all 

Tapes A, B & C securities routed to 

Nasdaq that yield fee code RN. The 

Exchange notes that fee code A above 

will continue to be applied to all orders 

routed to Nasdaq not utilizing the ROOC 

routing strategy that add liquidity. 

Orders routed via ROOC that add 

liquidity at Nasdaq have previously 

yielded fee code A, and thus, have 

received a rebate of $0.0015 per share. 

The Exchange has proposed to add fee 

code RN to maintain the applicable 

pricing (i.e., a rebate of $0.0015 per 

share) for orders that are routed via 

ROOC and add liquidity at Nasdaq. The 

Exchange notes that it has proposed to 

pass on the standard rebate for 

executions that yield fee code RN even 

though the Exchange will receive a 

lower rebate per share, $.0004 per share, 

for executions of securities that are 

included in Nasdaq’s Select Symbol 

Program. 

NYSE and NYSE MKT Rule 49 

The Exchange proposes to add a 

bullet under the General Notes section 

of the Fee Schedule to describe the rates 

that would apply where the New York 

Stock Exchange, Inc. (‘‘NYSE’’) or NYSE 

MKT LLC (‘‘NYSE MKT’’) declare an 

emergency condition under their Rule 

49. Under NYSE and NYSE MKT Rule 

49, the NYSE or NYSE MKT may invoke 

their emergency powers during an 

emergency condition and designate 

NYSE Arca as their backup facility to 

receive and process bids and offers and 

to execute orders on behalf of the NYSE 

or NYSE MKT. In such case, the 

Exchange will route any order that was 

intended to be routed to the NYSE or 

NYSE MKT to NYSE Arca and the 

Exchange’s System will identify such 

trades as being executed on NYSE Arca, 

not the NYSE or NYSE MKT. Because 

the executions occurred on NYSE Arca, 

NYSE Arca will charge BATS Trading 

their applicable fee or rebate, and BATS 

Trading will pass through that fee or 

rebate to the Exchange who would, in 

turn, pass that rate along to its Members. 

Therefore, the Exchange proposes to add 

a bullet to its Fee Schedule stating that 

fee codes applicable to orders routed to 

NYSE Arca will be applied to orders 

routed to the NYSE or NYSE MKT 

where, pursuant to NYSE and NYSE 

MKT Rule 49, the NYSE or NYSE MKT 

have designated NYSE Arca as their 

backup facility to receive and process 

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17520 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4) and (5). 14See supra note 11. 

bids and offers and to execute orders on 

behalf of the NYSE or NYSE MKT. 

Non-Substantive Change 

The Exchange is proposing to make a 

non-substantive change to revise 

references to ‘‘the BZX Top’’ and ‘‘the 

BZX Last Sale’’ that are currently 

present in the Market Data Fees section 

of the fee schedule. The Exchange is 

proposing to delete the word ‘‘the’’ from 

those references. 

Implementation Date 

The Exchange proposes to implement 

the amendments to its fee schedule 

effective immediately. 

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.12

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Sections 6(b)(4) of the Act and 

6(b)(5) of the Act,13 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 

notes that it operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to competing venues if they deem 

fee levels at a particular venue to be 

excessive. 

Modifying Add Volume Tiers 5 and 6 

The Exchange believes that its 

proposal to increase the threshold of 

ADAV as a percentage of TCV that a 

Member must achieve in order to 

qualify for Tiers 5 and 6 of the Add 

Volume Tiers is reasonable, fair, and 

equitable because it will provide an 

incentive to Members to increase the 

amount of liquidity that they add on the 

Exchange. While the proposed changes 

would make it more difficult to meet or 

exceed the threshold to qualify for Tiers 

5 and 6, the Exchange believes that the 

increased liquidity from incentivizing 

Members to increase their participation 

on the Exchange will benefit all 

investors by deepening the liquidity 

pool on the Exchange, supporting the 

quality of price discovery, promoting 

market transparency, and improving 

investor protection would offset the 

negative effects that such an increase 

would have. The Exchange believes that 

tiered pricing programs such as that 

proposed herein reward a Member’s 

increased participation on the Exchange 

and that such increased volume 

increases the potential revenue to the 

Exchange, which will allow the 

Exchange to continue to provide and 

potentially expand the incentive 

programs operated by the Exchange. 

Such pricing programs are also fair and 

equitable and non-discriminatory in that 

they are available to all Members. 

Further, volume-based rebates and fees 

such as the ones maintained by the 

Exchange, including those amendments 

proposed herein, have been widely 

adopted by equities and options 

exchanges 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 the value of an exchange’s 

market quality associated with higher 

levels of market activity, such as higher 

levels of liquidity provision and/or 

growth patterns, and introduction of 

higher volumes of orders into the price 

and volume discovery processes. 

Cross-Asset Step-Up Tiers 

The Exchange believes that its 

proposal to eliminate Tier 3 from the 

Cross-Asset Step-Up Tiers is reasonable, 

fair, and equitable for several of the 

reasons stated above. Specifically, the 

requirements to qualify for Tier 3 and 

the increased rebate associated 

therewith have not operated in the way 

that it was designed or the way the 

Exchange believed in that it has not 

resulted in an increase in liquidity or 

any of the ancillary benefits to the 

market that come from increased 

liquidity on the Exchange. As such, the 

Exchange believes that removing the tier 

from its fee schedule is reasonable, fair, 

and equitable. The Exchange also 

believes that the proposed amendment 

is non-discriminatory because it applies 

uniformly to all Members. 

Fee Code A 

The Exchange believes that its 

proposal to decrease the pass through 

rebate for Members’ orders that yield fee 

code A from $0.0015 to $0.0004 per 

share represents an equitable allocation 

of reasonable dues, fees, and other 

charges among Members and other 

persons using its facilities. Prior to the 

changes related to the Nasdaq Select 

Symbol Program, Nasdaq provided 

BATS Trading a rebate of $0.0015 per 

share for orders that added liquidity, 

which BATS Trading passed through to 

the Exchange and the Exchange passed 

through to its Members pursuant to fee 

code A. In January 2015, Nasdaq 

decreased the standard rebate it 

provides its customers, such as BATS 

Trading, from a rebate of $0.0015 per 

share to a rebate of $0.0004 per share for 

orders that add liquidity on Nasdaq in 

symbols included in its Select Symbol 

Program.14 Therefore, the Exchange 

believes that the proposed change in fee 

code A from a rebate of $0.0015 per 

share to a rebate of $0.0004 per share is 

equitable and reasonable because it 

accounts for the pricing changes on 

Nasdaq and is necessary due to billing 

system limitations and to maintain a 

simple to understand fee schedule. The 

Exchange notes that routing through 

BATS Trading is voluntary. Lastly, the 

Exchange also believes that the 

proposed amendment is nondiscriminatory because it applies 

uniformly to all Members. 

Fee Code RN 

The Exchange believes its proposal to 

adopt new fee code RN, which would be 

applied to orders routed to Nasdaq 

using the ROOC routing strategy that 

add liquidity, represents an equitable 

allocation of reasonable dues, fees, and 

other charges among Members and other 

persons using its facilities because the 

Exchange does not levy additional fees 

or offer additional rebates for orders that 

it routes to Nasdaq through BATS 

Trading using the ROOC routing 

strategy. Proposed fee code RN 

represents a pass through of the 

standard rebate that BATS Trading, the 

Exchange’s affiliated routing brokerdealer, receives for adding liquidity to 

Nasdaq in securities not included in 

Nasdaq’s Select Symbol Program 

(presuming BATS Trading does not 

qualify for a volume tiered rebate). The 

Exchange believes the proposal to 

provide proposed fee code RN a rebate 

of $0.0015 per share is equitable and 

reasonable because it accounts for 

pricing on Nasdaq in securities not 

subject to the Select Symbol Program 

and it allows the Exchange to continue 

to provide its Members a pass-through 

rebate of $0.0015 per share for orders 

that are routed to Nasdaq using the 

ROOC routing strategy. The Exchange 

notes that it has proposed to pass on the 

standard rebate of $0.0015 for 

executions that yield fee code RN even 

though the Exchange will receive a 

lower rebate per share, $0.0004 per 

share, for executions of securities that 

are included in Nasdaq’s Select Symbol 

Program. The Exchange believes that the 

proposed fee structure is equitable and 

reasonable because it does not represent 

a change from the current pricing 

applicable to orders sent through such 

strategy that add liquidity at Nasdaq and 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 17521 

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

16 17 CFR 240.19b–4(f). 

because orders that use the ROOC 

routing strategy could only add liquidity 

at Nasdaq immediately prior to the 

opening or closing processes rather than 

throughout the day. The Exchange notes 

that routing through BATS Trading is 

voluntary. Lastly, the Exchange also 

believes that the proposed amendment 

is non-discriminatory because it applies 

uniformly to all Members. 

NYSE and NYSE MKT Rule 49 

The Exchange believes that adding a 

bullet under the General Notes section 

of the Fee Schedule to describe the rates 

that would apply where the NYSE or 

NYSE MKT declare an emergency 

condition under their Rule 49 is 

reasonable because it is designed to 

provide greater transparency to 

Members by describing which rates 

would apply in such circumstances. In 

the case when NYSE or NYSE MKT 

invoke their Rule 49, the Exchange will 

route any order that was intended for 

the NYSE or NYSE MKT to NYSE Arca 

and the Exchange’s System will identify 

such trades as being executed on NYSE 

Arca, not the NYSE or NYSE MKT. 

Because the executions occurred on 

NYSE Arca, NYSE Arca will charge 

their applicable fee or rebate. The 

proposed bullet is intended to make 

clear within the Fee Schedule which 

rate would apply where the NYSE or 

NYSE MKT invoke their emergency 

powers under their Rule 49, thereby 

eliminating potential investor 

confusion, 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. The 

Exchange notes that routing through 

BATS Trading is voluntary. Lastly, the 

Exchange also believes that the 

proposed amendment is nondiscriminatory because it applies 

uniformly to all Members. 

Non-Substantive Changes 

Finally, the Exchange believes that 

the non-substantive changes discussed 

above would contribute to the 

protection of investors and the public 

interest by helping to avoid confusion 

with respect the Exchange fee schedule. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

As further described below, 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. 

The Exchange does not believe that the 

proposed changes represent 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 

changes will impair the ability of 

Members or competing venues to 

maintain their competitive standing in 

the financial markets. 

Modifying Add Volume Tiers 5 and 6 

The Exchange believes that the 

proposed changes to the Add Volume 

Tiers will allow the Exchange to 

compete more ably with other execution 

venues by drawing additional volume to 

the Exchange, thereby making it a more 

desirable destination venue for its 

customers. Further, the Exchange does 

not believe that these proposed changes 

represent 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 the financial 

markets. 

Cross-Asset Step-Up Tiers 

The Exchange believes that its 

proposal to eliminate Tier 3 from the 

Cross-Asset Step-Up Tiers will have no 

effect on competition because, as 

explained above, the tier has not had a 

significant impact on trading activity on 

the Exchange. 

Fee Code A 

The Exchange also believes that its 

proposal to amend the pricing for orders 

routed to Nasdaq would enhance the 

Exchange’s ability to compete because 

the change is designed to insure that it 

is not providing a greater rebate than is 

being provided to BATS Trading by 

Nasdaq for an execution. The Exchange 

believes that its proposal would not 

burden intramarket competition because 

the proposed rate would apply 

uniformly to all Members. 

Fee Code RN 

The Exchange believes that its 

proposal to add fee code RN for orders 

that route to Nasdaq using the ROOC 

routing strategy and pass through a 

rebate of $0.0015 per share to Members 

would increase intermarket competition 

because it offers customers an 

alternative means to route orders to 

Nasdaq to participate in their opening, 

re-opening or closing process for a 

similar rate as entering orders in certain 

symbols on Nasdaq directly. The 

Exchange believes that its proposal 

would not burden intramarket 

competition because the proposed rate 

would apply uniformly to all Members. 

NYSE and NYSE MKT Rule 49 

The Exchange believes that adding a 

bullet under the General Notes section 

of the Fee Schedule to describe which 

rates that would apply where the NYSE 

or NYSE MKT declare an emergency 

condition under their Rule 49 would not 

affect intermarket nor intramarket 

competition because none of these 

changes are designed to amend any 

rebate or alter the manner in which the 

Exchange calculates rebates. This 

change is not designed to have a 

competitive impact. Rather, it is 

intended to make clear to Members and 

investors within the Fee Schedule 

which rate would apply where the 

NYSE or NYSE MKT invoke their 

emergency powers under their Rule 49, 

thereby eliminating potential investor 

confusion. 

Non-Substantive Changes 

The Exchange believes that the nonsubstantive changes to the fee schedule 

would not affect intermarket nor 

intramarket competition because none 

of the proposed changes are designed to 

amend any fee or rebate or to alter the 

manner in which the Exchange asses 

fees or rebates. The changes are 

intended to make the fee schedule as 

clear and concise as possible. 

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 15 and paragraph (f) of Rule 

19b–4 thereunder.16 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

17522 Federal Register / Vol. 80, No. 62 / Wednesday, April 1, 2015 / Notices 

17 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

5The 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). 

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– 

BATS–2015–23 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–BATS–2015–23. 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 

inspection and copying at the principal 

offices 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–BATS– 

2015–23, and should be submitted on or 

before April 22, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07363 Filed 3–31–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74594; File No. SR–BYX– 

2015–18] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Y-Exchange, Inc. 

March 26, 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 March 17, 

2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 

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 BYX Rules 15.1(a) 

and (c). Changes to the fee schedule 

pursuant to this proposal are effective 

upon filing. 

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 amend its 

fee schedule in order to: (i) Adjust 

rebates for orders that yield fee code A; 

(ii) add new fee code RN; and (iii) add 

a clarifying statement regarding fee 

codes applicable to certain orders 

routed to NYSE Arca, Inc. (‘‘NYSE 

Arca’’). 

Fee Code A 

In securities priced at or above $1.00, 

the Exchange currently provides a 

rebate of $0.0015 per share for Members’ 

orders that yield fee code A, which 

routes to Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) and adds liquidity. The 

Exchange proposes to amend its Fee 

Schedule to decrease this rebate to 

$0.0004 per share for Members’ orders 

that yield fee code A. The proposed 

change represents a pass through of the 

lowest possible rebate that BATS 

Trading, Inc. (‘‘BATS Trading’’), the 

Exchange’s affiliated routing brokerdealer, receives for adding liquidity on 

Nasdaq. When BATS Trading routes and 

adds liquidity to Nasdaq, it is rebated a 

standard rate of $0.0004 per share for 

orders in select symbols (‘‘Nasdaq’s 

Select Symbol Program’’). When BATS 

Trading routes to Nasdaq in other 

symbols, it is rebated a standard rate of 

$0.0015 per share. Further, BATS 

Trading might qualify for tiered pricing 

that would increase the amount of the 

rebate received. However, due to billing 

system limitations that do not allow for 

separate rates on a security by security 

basis and in order to maintain a simple 

to understand fee schedule, the 

Exchange will provide a rebate of 

$0.0004 per share for executions in all 

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