6552 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

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). 

5 17 CFR 240.19b–4(f)(6)(iii). 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the collection of information 

provided for in Rule 15b1–1 (17 CFR 

240.15b1–1) and Form BD (17 CFR 

249.501) under the Securities Exchange 

Act of 1934 (17 U.S.C. 78a et seq.). The 

Commission plans to submit this 

existing collection of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Form BD is the application form used 

by firms to apply to the Commission for 

registration as a broker-dealer, as 

required by Rule 15b1–1. Form BD also 

is used by firms other than banks and 

registered broker-dealers to apply to the 

Commission for registration as a 

municipal securities dealer or a 

government securities broker-dealer. In 

addition, Form BD is used to change 

information contained in a previous 

Form BD filing that becomes inaccurate. 

The total industry-wide annual time 

burden imposed by Form BD is 

approximately 4,999 hours, based on 

approximately 13,732 responses (193 

initial filings + 13,539 amendments). 

Each application filed on Form BD 

requires approximately 2.75 hours to 

complete and each amended Form BD 

requires approximately 20 minutes to 

complete. (193 × 2.75 hours = 531 

hours; 13,539 × 0.33 hours = 4,468 

hours; 531 hours + 4,468 hours = 4,999 

hours.) The staff believes that a brokerdealer would have a Compliance 

Manager complete and file both 

applications and amendments on Form 

BD at a cost of $279/hour. 

Consequently, the staff estimates that 

the total internal cost of compliance 

associated with the annual time burden 

is approximately $1,394,721 per year 

($279 × 4999). There is no external cost 

burden associated with Rule 15b1–1 and 

Form BD. 

The Commission uses the information 

disclosed by applicants in Form BD: (1) 

To determine whether the applicant 

meets the standards for registration set 

forth in the provisions of the Exchange 

Act; (2) to develop a central information 

resource where members of the public 

may obtain relevant, up-to-date 

information about broker-dealers, 

municipal securities dealers, and 

government securities broker-dealers, 

and where the Commission, other 

regulators, and SROs may obtain 

information for investigatory purposes 

in connection with securities litigation; 

and (3) to develop statistical 

information about broker-dealers, 

municipal securities dealers, and 

government securities broker-dealers. 

Without the information disclosed in 

Form BD, the Commission could not 

effectively implement policy objectives 

of the Exchange Act with respect to its 

investor protection function. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: February 2, 2016. 

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02340 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77036; File No. SR–EDGX– 

2016–01] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Rule 21.1, Definitions, 

Relating to the Operation of the 

Attribution Feature of EDGX Options 

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 

21, 2016, 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 

authorize the Exchange’s equity options 

platform (‘‘EDGX Options’’) to make a 

modification to Rule 21.1 (Definitions) 

in connection with the operation of the 

attribution feature of EDGX Options, as 

described below. The Exchange has 

designated this proposal as noncontroversial and provided the 

Commission with the notice required by 

Rule 19b–4(f)(6)(iii) under the Act.5

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 is proposing to modify 

Rule 21.1, Definitions, which sets forth 

the various definitions applicable to the 

operation of the EDGX Options 

platform, including order types and 

order type modifiers accepted by EDGX 

Options. As set forth in Rule 21.1, an 

order can be attributed on EDGX 

Options, meaning that such order is 

displayed with not only a price and size 


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Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6553 

6The term User is defined in Rule 1.5(ee) as ‘‘any 

Member or Sponsored Participant who is 

authorized to obtain access to the System pursuant 

to Rule 11.3.’’ 

7See Nasdaq Rule 4756(b), which permits Nasdaq 

Market Makers and Nasdaq ECNs to attribute their 

quotations on Nasdaq. See also Nasdaq Rule 

4702(b)(2)(A), which limits the availability of 

Nasdaq ‘‘Price to Display Orders’’ to Nasdaq Market 

Makers and further states that all Price to Display 

Orders are Attributable Orders. 

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

9 15 U.S.C. 78f(b)(5). 

10See supra note 7. 

11 Id. 

12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 In addition, Rule 19b–4(f)(6)(iii) requires the 

Exchange to give the Commission written notice of 

the Exchange’s 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 satisfied this 

requirement. 

15For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

Continued 

but also a User’s 6 market participant 

identifier, or MPID (such order an 

‘‘Attributable Order’’). Alternatively, a 

User may also submit an order that is 

designated for display on an anonymous 

basis, a ‘‘Non-Attributable Order.’’ Rule 

21.1(c) also states that all orders shall be 

treated as Attributable Orders unless a 

User has entered instructions to treat 

such orders as Non-Attributable Orders. 

In addition to attribution, as discussed 

in Rule 21.1, Exchange Rule 21.15(c) 

states that the Exchange will indicate on 

OPRA when there is Customer interest 

on EDGX Options and will identify 

Customer orders and trades as such on 

the Exchange’s proprietary data feeds. 

While the Exchange does not propose 

to modify the identification of Customer 

interest, orders or trades to either OPRA 

or on Exchange proprietary data feeds, 

the Exchange proposes to eliminate the 

ability for a Customer order to also be 

an Attributable Order. In other words, 

though Customer interest, orders and 

trades would still be identified as such 

through applicable data feeds, only nonCustomer orders could be identified on 

Exchange data feeds with attribution to 

a specified MPID. The Exchange 

believes that limiting the use of 

Attributable Orders to non-Customer 

orders is reasonable because such 

functionality was primarily intended for 

Market Makers and other professional 

participants that typically provide 

liquidity to indicate their presence on 

EDGX Options with attribution to their 

MPID. 

The Exchange notes that it does not 

propose the change set forth above due 

to concerns with respect to Customer 

orders being entered as Attributable 

Orders but rather due to current system 

limitations in supporting both the 

attribution feature and the identifcation 

[sic] of Customer orders as such. On 

balance, the Exchange believes that the 

identification of orders as Customer 

orders is more consistent with the 

operation of other options exchanges 

and important to the Exchange’s pro rata 

priority model than is the attribution of 

a particular Customer order to a specific 

MPID. 

The Exchange also notes that the 

equities platform of the Nasdaq Stock 

Market LLC (‘‘Nasdaq’’) also limits the 

availability of attribution to certain 

market participants, including market 

makers.7

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.8

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act 9 because 

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, 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 proposed rule change will allow 

the Exchange to continue to accept 

Attributable Orders from non-Customers 

while also designating Customer orders 

as such on applicable data feeds. As set 

forth above, the Exchange believes that 

non-Customers quoting and providing 

liquidity are the most likely users of the 

Attributable Order feature and that 

restricting Customer orders from the use 

of the feature is appropriate given the 

separate identification of Customer 

orders on applicable data feeds. As set 

forth above, at least one other exchange 

has similarly limited attribution to 

certain professional market 

participants.10

(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 is not designed to 

address any competitive issues but 

rather to make a modification to the 

Exchange’s attribution offering to ensure 

that the Exchange’s System and rules 

are consistent and that the most 

important features can be offered to 

Users in their varying capacities. As 

noted above, at least one other exchange 

has similarly limited attribution to 

certain professional market 

participants.11

(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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 12 and Rule 

19b–4(f)(6) thereunder.13 Because the 

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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6) 

thereunder.14

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 Exchange may continue to permit 

non-Customers to attribute their orders 

and to allow the Exchange to label 

orders as Customer Orders. The 

Commission believes that the proposal 

will update the rules of the Exchange to 

accurately reflect how the System 

operates with respect to Attributable 

Orders thereby avoiding confusion by 

market participants. Based on the 

foregoing, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest.15 The 


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6554 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

efficiency, competition, and capital formation. See 

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

16 17 CFR 200.30–3(a)(12). 

1Regulation NMS, adopted by the Commission in 

June 2005, redesignated the national market system 

rules previously adopted under Section 11A of the 

Exchange Act. Rule 11Ac1–5 under the Exchange 

Act was redesignated Rule 605 of Regulation NMS. 

No substantive amendments were made to Rule 605 

of Regulation NMS. See Securities Exchange Act 

Release No. 51808 (June 9, 2005), 70 FR 37496 (June 

29, 2005). 

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. 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 No. SR– 

EDGX–2016–01 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–EDGX–2016–01. 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–EDGX– 

2016–01 and should be submitted on or 

beforeFebruary 29, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02336 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736. 

Extension: 

Rule 605 of Regulation NMS; SEC File No 

270–488, OMB Control No. 3235–0542 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 605 of Regulation 

NMS (‘‘Rule 605’’) (17 CFR 242.605),1

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a, et seq.) (‘‘Exchange 

Act’’). The Commission plans to submit 

this existing collection of information to 

the Office of Management and Budget 

(‘‘OMB’’) for extension and approval. 

Rule 605, formerly known as, Rule 

11Ac1–5, requires market centers to 

make available to the public monthly 

order execution reports in electronic 

form. The Commission believes that 

many market centers retain most, if not 

all, of the underlying raw data necessary 

to generate these reports in electronic 

format. Once the necessary data is 

collected, market centers could either 

program their systems to generate the 

statistics and reports, or transfer the 

data to a service provider (such as an 

independent company in the business of 

preparing such reports or a selfregulatory organization) that would 

generate the statistics and reports. 

The collection of information 

obligations of Rule 605 apply to all 

market centers that receive covered 

orders in national market system 

securities. The Commission estimates 

that approximately 132 market centers 

are subject to the collection of 

information obligations of Rule 605. 

Each of these respondents is required to 

respond to the collection of information 

on a monthly basis. 

The Commission staff estimates that, 

on average, Rule 605 causes respondents 

to spend 6 hours per month to collect 

the data necessary to generate the 

reports, or 72 hours per year. With an 

estimated 132 market centers subject to 

Rule 605, the total data collection time 

burden to comply with the monthly 

reporting requirement is estimated to be 

9,504 hours per year. 

Based on discussions with industry 

sources, the Commission staff estimates 

that an individual market center could 

retain a service provider to prepare a 

monthly report using the data collected 

for approximately $2,978 per month. 

This per-respondent estimate is based 

on the rate that a market center could 

expect to obtain if it negotiated on an 

individual basis. Based on the $2,978 

estimate, the monthly cost to the 132 

market centers to retain service 

providers to prepare reports would be 

$393,096, or an annual cost of 

approximately $4,717,152. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information will have practical utility; 

(b) the accuracy of the Commission’s 

estimate of the burden of the collection 

of information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to Pamela C. Dyson, Director/Chief 


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