6560 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that it previously filed a 

rule change to amend the ORF as of February 1, 

2016 to $0.0040. This rule change supersedes that 

filing. See Securities Exchange Act Release No. 

75749 (August 21, 2015), 80 FR 52073 (August 27, 

2015) (SR–Phlx–2015–71). 

4The ORF applies to all ‘‘C’’ account origin code 

orders executed by a member on the Exchange. 

Exchange Rules require each member to record the 

appropriate account origin code on all orders at the 

time of entry in order to allow the Exchange to 

properly prioritize and route orders and assess 

transaction fees pursuant to the Rules of the 

Exchange and report resulting transactions to OCC. 

See Exchange Rule 1063, Responsibilities of Floor 

Brokers, and Options Floor Procedure Advice F–4, 

Orders Executed as Spreads, Straddles, 

Combinations or Synthetics and Other Order Ticket 

Marking Requirements. The Exchange represents 

that it has surveillances in place to verify that 

members mark orders with the correct account 

origin code. 

5 In the case where one member both executes a 

transaction and clears the transaction, the ORF is 

assessed to the member only once on the execution. 

In the case where one member executes a 

transaction and a different member clears the 

transaction, the ORF is assessed only to the member 

who executes the transaction and is not assessed to 

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 

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 proposal 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– 

BATS–2016–12 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 No. 

SR–BATS–2016–12. 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 will also 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 No. SR–BATS– 

2016–12 and should be submitted on or 

before February 29, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02333 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77032; File No. SR–Phlx– 

2016–04] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Options Regulatory Fee 

February 2, 2016. 

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 

20, 2016, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘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 proposes to make 

adjustments to its Options Regulatory 

Fee (‘‘ORF’’) by amending Section IV, 

Part D of the Pricing Schedule. 

While changes to the Pricing 

Schedule pursuant to this proposal are 

effective upon filing, the Exchange has 

designated these changes to be operative 

on February 1, 2016. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.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 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 Exchange proposes to decrease 

the ORF from $0.0035 to $0.0034 as of 

February 1, 2016 to account for 

additional fine revenue, cost reductions 

and to balance the Exchange’s 

regulatory revenue against the 

anticipated costs and potential fines.3

Background 

The ORF is assessed to each member 

for all options transactions executed or 

cleared by the member that are cleared 

at The Options Clearing Corporation 

(‘‘OCC’’) in the Customer range (i.e., that 

clear in the Customer account of the 

member’s clearing firm at OCC). The 

Exchange monitors the amount of 

revenue collected from the ORF to 

ensure that it, in combination with other 

regulatory fees and fines, does not 

exceed regulatory costs. The ORF is 

imposed upon all transactions executed 

by a member, even if such transactions 

do not take place on the Exchange.4 The 

ORF also includes options transactions 

that are not executed by an Exchange 

member but are ultimately cleared by an 

Exchange member.5 The ORF is not 


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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6561 

the member who clears the transaction. In the case 

where a non-member executes a transaction and a 

member clears the transaction, the ORF is assessed 

to the member who clears the transaction. 

6See Options Trader Alert #2015–37. 

7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(4) and (5). 

9The ORF is not charged for orders that clear in 

categories other than the Customer range at OCC 

(e.g., Market Maker orders) because members incur 

the costs of memberships and through their 

memberships are charged transaction fees, dues and 

other fees that go into the general funds of the 

Exchange, a portion of which is used to help pay 

the costs of regulation. 

10The Exchange does not assess a Customer any 

transaction fees in Multiply Listed Options, except 

in SPY, and pays Customer rebates. 

charged for member proprietary options 

transactions because members incur the 

costs of owning memberships and 

through their memberships are charged 

transaction fees, dues and other fees that 

are not applicable to non-members. The 

dues and fees paid by members go into 

the general funds of the Exchange, a 

portion of which is used to help pay the 

costs of regulation. The ORF is collected 

indirectly from members through their 

clearing firms by OCC on behalf of the 

Exchange. 

The ORF is designed to recover a 

portion of the costs to the Exchange of 

the supervision and regulation of its 

members, including performing routine 

surveillances, investigations, 

examinations, financial monitoring, and 

policy, rulemaking, interpretive, and 

enforcement activities. The Exchange 

believes that revenue generated from the 

ORF, when combined with all of the 

Exchange’s other regulatory fees, will 

cover a material portion, but not all, of 

the Exchange’s regulatory costs. The 

Exchange will continue to monitor the 

amount of revenue collected from the 

ORF to ensure that it, in combination 

with its other regulatory fees and fines, 

does not exceed regulatory costs. If the 

Exchange determines regulatory 

revenues exceed regulatory costs, the 

Exchange will adjust the ORF by 

submitting a fee change filing to the 

Commission. 

ORF Adjustments 

The Exchange is proposing to 

decrease the ORF from $0.0035 to 

$0.0034 as of February 1, 2016 in order 

to account for regulatory revenue from 

disciplinary actions taken by the 

Exchange. The Exchange regularly 

reviews its ORF to ensure that the ORF, 

in combination with its other regulatory 

fees and fines, does not exceed 

regulatory costs. The Exchange believes 

this adjustment will permit the 

Exchange to cover a material portion of 

its regulatory costs, while not exceeding 

regulatory costs. 

The Exchange notified members of 

this ORF adjustment thirty (30) calendar 

days prior to the proposed operative 

date.6

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 Sections 6(b)(4) and 6(b)(5) 

of the Act 8 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and issuers and other 

persons using any facility or system 

which the Exchange operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that lowering 

the ORF from $0.0035 to $0.0034 as of 

February 1, 2016 is reasonable because 

the Exchange’s collection of ORF needs 

to be balanced against the amount of 

regulatory revenue collected by the 

Exchange. The Exchange believes that 

the proposed adjustments noted herein 

will serve to balance the Exchange’s 

regulatory revenue against the 

anticipated regulatory costs. It is further 

reasonable because this adjustment 

results in a price reduction. 

The Exchange believes that lowering 

the ORF from $0.0035 to $0.0034 as of 

February 1, 2016 is equitable and not 

unfairly discriminatory because this 

adjustment would be applicable to all 

members on all of their transactions that 

clear as Customer at OCC. In addition, 

the ORF seeks to recover the costs of 

supervising and regulating members, 

including performing routine 

surveillances, investigations, 

examinations, financial monitoring, and 

policy, rulemaking, interpretive, and 

enforcement activities. 

The ORF is not charged for member 

proprietary options transactions because 

members incur the costs of owning 

memberships and through their 

memberships are charged transaction 

fees, dues and other fees that are not 

applicable to non-members. Moreover, 

the Exchange believes the ORF ensures 

fairness by assessing higher fees to those 

members that require more Exchange 

regulatory services based on the amount 

of Customer options business they 

conduct. 

Regulating Customer trading activity 

is more labor intensive and requires 

greater expenditure of human and 

technical resources than regulating nonCustomer trading activity. Surveillance, 

regulation and examination of nonCustomer trading activity generally 

tends to be more automated and less 

labor intensive. As a result, the costs 

associated with administering the 

Customer component of the Exchange’s 

overall regulatory program are 

anticipated to be higher than the costs 

associated with administering the nonCustomer component of its regulatory 

program. The Exchange proposes 

assessing higher fees to those members 

that will require more Exchange 

regulatory services based on the amount 

of Customer options business they 

conduct.9 Additionally, the dues and 

fees paid by members go into the 

general funds of the Exchange, a portion 

of which is used to help pay the costs 

of regulation. The Exchange believes 

that the proposed ORF is a small cost for 

Customer executions.10 The Exchange 

has in place a regulatory structure to 

surveil for, exam [sic] and monitor the 

marketplace for violations of Exchange 

Rules. The ORF assists the Exchange to 

fund the cost of this regulation of the 

marketplace. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. In terms of 

inter-market competition, the Exchange 

notes that it operates in a highly 

competitive market in which market 

participants can readily favor competing 

venues if they deem fee levels at a 

particular venue to be excessive, or 

rebate opportunities available at other 

venues to be more favorable. In such an 

environment, the Exchange must 

continually adjust its fees to remain 

competitive with other exchanges and 

with alternative trading systems that 

have been exempted from compliance 

with the statutory standards applicable 

to exchanges. Because competitors are 

free to modify their own fees in 

response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. 

The Exchange does not believe that 

reducing its ORF creates an undue 

burden on intra-market competition 

because the adjustment will apply to all 

members on all of their transactions that 

clear as Customer at OCC. The Exchange 

is obligated to ensure that the amount of 

regulatory revenue collected from the 

ORF, in combination with its other 

regulatory fees and fines, does not 

exceed regulatory costs. Additionally, 

the dues and fees paid by members go 

into the general funds of the Exchange, 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
6562 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

11The following options exchanges assess an 

ORF, Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’), C2 Options Exchange, Inc. 

(‘‘C2’’), the International Securities Exchange, LLC 

(‘‘ISE’’), NYSE Arca, Inc. (‘‘NYSEArca’’) and [sic] 

NYSE AMEX LLC (‘‘NYSEAmex’’), BATS Exchange, 

Inc. (‘‘BATS’’) and The NASDAQ Options Market 

LLC (‘‘NOM’’). 

12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

a portion of which is used to help pay 

the costs of regulation. The Exchange’s 

members are subject to ORF on other 

options markets.11

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–Phlx–2016–04 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–Phlx–2016–04. 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–Phlx– 

2016–04 and should be submitted on or 

before February 29, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02332 Filed 2–5–16; 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 an Open Meeting 

on Wednesday, February 10, 2016 at 

10:00 a.m., in the Auditorium, Room 

L–002. 

The subject matter of the Open 

Meeting will be: 

• The Commission will consider 

whether to adopt rules under the 

Securities Exchange Act of 1934 

providing for the application of the Title 

VII security-based swap dealer de 

minimis counting requirements to 

security-based swap transactions 

connected with a non-U.S. person’s 

dealing activity that are arranged, 

negotiated, or executed by personnel 

located in a U.S. branch or office or by 

personnel of an agent of such non-U.S. 

person located in a U.S. branch or 

office. 

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: February 3, 2016. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2016–02490 Filed 2–4–16; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77034; File No. SR–MIAX– 

2016–03] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rules 

503 and 515 

February 2, 2016. 

Pursuant to the provisions of 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 20, 2016, Miami 

International Securities Exchange LLC 

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

Securities and Exchange Commission 

(‘‘Commission’’) a 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange Rules 503, Openings 

on the Exchange, and 515, Execution of 

Orders and Quotes. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/ 

wotitle/rule_filing, at MIAX’s principal 

office, and at the Commission’s Public 

Reference Room. 


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