6558 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6)(iii). 

4See Securities Exchange Act Release No. 65225 

(August 30, 2011), 76 FR 55148 (September 6, 2011) 

(SR–BATS–2011–018). 5As defined in BATS Rules, the term ‘‘Market 

Maker’’ means a Member that acts a as a market 

maker pursuant to Chapter XI of BATS Rules. 6ETP is defined in Interpretation and Policy 

.03(b)(4) to Rule 11.8. 7See Securities Exchange Act Release No. 72692 

(July 28, 2014), 79 FR 44908 (August 1, 2014) (SR– 

BATS–2014–022) (‘‘CLP Approval Order’’). 8See id at 44909. 9 Id. 

10See Securities Exchange Act Release No. 75518 

(July 24, 2015), 80 FR 45566 (July 30, 2015 (SR– 

BATS–2015–55). 

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. 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 rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2016–02 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 SR–MIAX–2016–02. 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–MIAX– 

2016–02 and should be submitted on or 

before February 29, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02335 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77033; File No. SR–BATS– 

2016–12] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Pilot 

Period for the Exchange’s 

Supplemental Competitive Liquidity 

Provider Program 

February 2, 2016. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on January 

28, 2016, BATS Exchange, Inc. 

(‘‘Exchange’’ or ‘‘BATS’’) 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 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 

extend the pilot period for the 

Exchange’s Supplemental Competitive 

Liquidity Provider Program (the 

‘‘Program’’), which is currently set to 

expire on January 28, 2016, for three 

months, to expire on April 28, 2016. 

The Exchange has designated this 

proposal as non-controversial and 

provided the Commission with the 

notice required by Rule 19b–4(f)(6)(iii) 

under the Act.3

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 

Background 

On August 30, 2011, the Exchange 

received approval of rules applicable to 

the qualification, listing and delisting of 

securities of issuers on the Exchange.4

More recently, the Exchange received 

approval to operate a pilot program that 

is designed to incentivize certain Market 

Makers 5 registered with the Exchange 

as ETP CLPs, as defined in 

Interpretation and Policy .03 to Rule 

11.8, to enhance liquidity on the 

Exchange in certain ETPs 6 listed on the 

Exchange and thereby qualify to receive 

part of a daily rebate as part of the 

Program under Interpretation and Policy 

.03 to Rule 11.8.7

The Program was approved by the 

Commission on a pilot basis running 

one-year from the date of 

implementation.8 The Commission 

approved the Program on July 28, 2014.9

The Exchange implemented the Program 

on July 28, 2014 and the pilot period for 

the Program was originally scheduled to 

end on July 28, 2015 until it was 

extended to end on October 28, 2015 10


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6559 

11See Securities Exchange Act Release No. 76293 

(October 28, 2015), 80 FR 67808 (November 3, 2015 

(SR–BATS–2015–96). 12 15 U.S.C. 78f(b). 13 15 U.S.C. 78f(b)(5). 

14See Securities Exchange Act Release No. 69195 

(March 20, 2013), 78 FR 18393 (March 26, 2013) 

(SR–NASDAQ–2012–137). 

15See Securities Exchange Act Release No. 69335 

(April 5, 2013), 78 FR 35340 (June 12, 2013) (SR– 

NYSEARCA–2013–34). 

16 15 U.S.C. 78s(b)(3)(A). 

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

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

the Commission written notice of its intent to file 

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 satisfied this 

requirement. 

18 17 CFR 240.19b–4(f)(6)(iii). 

19For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

and later extended to January 28, 

2016.11

Proposal To Extend the Operation of the 

Program 

The Exchange established the 

Program in order to enhance liquidity 

on the Exchange in certain ETPs listed 

on the Exchange (and thereby enhance 

the Exchange’s ability to compete as a 

listing venue) by providing a 

mechanism by which ETP CLPs 

compete for part of a daily quoting 

incentive on the basis of providing the 

most aggressive quotes with the greatest 

amount of size. Such competition has 

the ability to reduce spreads, facilitate 

the price discovery process, and reduce 

costs for investors trading in such 

securities, thereby promoting capital 

formation and helping the Exchange to 

compete as a listing venue. The 

Exchange believes that extending the 

pilot is appropriate because the 

Exchange is also planning to submit a 

proposal to make the Program 

permanent. As part of this proposal, the 

Exchange is also preparing a report 

analyzing the Program. As such, the 

Exchange believes that it is appropriate 

to extend the current operation of the 

Program for three months in order to 

provide enough time for the Program to 

continue operating while such proposal 

is under consideration by the 

Commission. Through this filing, the 

Exchange seeks to extend the current 

pilot period of the Program until April 

28, 2016. 

2. Statutory Basis 

The Exchange believes that its 

proposal 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(b) of the 

Act.12 In particular, the Exchange 

believes the proposed change furthers 

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

Act,13 in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. The Exchange believes that 

extending the pilot period for the 

Program is consistent with these 

principles because the Program is 

reasonably designed to enhance quote 

competition, improve liquidity in 

securities listed on the Exchange, 

support the quality of price discovery, 

promote market transparency, and 

increase competition for listings and 

trade executions, while reducing 

spreads and transaction costs in such 

securities. Maintaining and increasing 

liquidity in Exchange-listed securities 

will help raise investors’ confidence in 

the fairness of the market and their 

transactions. The extension of the pilot 

period will allow Exchange [sic] to 

continue to operate the Program while 

its proposal to make the Program 

permanent is under consideration by the 

Commission. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change extends an 

established pilot program for 6 [sic] 

months, thus allowing the Program to 

enhance competition in both the listings 

market and in competition for market 

makers. The Program will continue to 

promote competition in the listings 

market by providing issuers with a 

vehicle for paying the Exchange 

additional fees in exchange for 

incentivizing tighter spreads and deeper 

liquidity in listed securities and allow 

the Exchange to continue to compete 

with similar programs at Nasdaq Stock 

Market LLC 14 and NYSE Arca Equities, 

Inc.15

The Exchange also believes that 

extending the pilot program for an 

additional 6 [sic] months will allow the 

Program to continue to enhance 

competition among market participants 

by creating incentives for market makers 

to compete to make better quality 

markets. By continuing to require that 

market makers both meet the quoting 

requirements and also compete for the 

daily financial incentives, the quality of 

quotes on the Exchange will continue to 

improve. This, in turn, will attract more 

liquidity to the Exchange and further 

improve the quality of trading in 

exchange-listed securities participating 

in the Program, which will also act to 

bolster the Exchange’s listing business. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 16 and Rule 19b– 

4(f)(6) thereunder.17

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative before 30 days from 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),18 the 

Commission may 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. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Waiver of the operative delay 

will allow the Exchange to extend the 

Program prior to its expiration on 

January 28, 2016, which will ensure that 

the Program continues to operate 

uninterrupted while the Exchange and 

the Commission continue to analyze 

data regarding the Program. Therefore, 

the Commission hereby waives the 30- 

day operative delay and designates the 

proposed rule change to be operative 

upon filing with the Commission.19

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
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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