Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37645 

26 15 U.S.C. 78s(b)(3)(A)(iii). 

27 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, 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. 28 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). 

because the proposed provisions apply 

to all market participants equally. 

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 

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)(iii) of the Act 26 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.27

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 rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2017–078 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–NASDAQ–2017–078. 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 

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– 

NASDAQ–2017–078, and should be 

submitted on or before September 1, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16926 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81326; File No. SR– 

BatsBYX–2017–17] 

Self-Regulatory Organizations; Bats 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to Fees 

for Use on Bats BYX Exchange, Inc. 

August 7, 2017. 

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 July 31, 

2017, Bats BYX Exchange, Inc. (the 

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

Securities and Exchange Commission 

(‘‘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 Act3 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). 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.bats.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 to modify existing Tier 3 

and add a new tier under footnote 1, 

Add/Remove Volume Tiers. The 


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37646 Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 

6Fee code B is appended to displayed orders that 

add liquidity to BYX (Tape B) and is assessed a fee 

of $0.0018 per share. See the Exchange’s fee 

schedule available at http://www.bats.com/us/ 

equities/membership/fee_schedule/byx/. 

7Fee code V is appended to displayed orders that 

add liquidity to BYX (Tape A) and is assessed a fee 

of $0.0018 per share. Id. 

8Fee code Y is appended to displayed orders that 

add liquidity to BYX (Tape C) and is assessed a fee 

of $0.0018 per share. Id. 

9Fee code BB is appended to orders that remove 

liquidity from BYX (Tape B) and is assessed a 

rebate of $0.0010 per share. Id. 

10Fee code N is appended to orders that remove 

liquidity from BYX (Tape C) and is assessed a 

rebate of $0.0010 per share. Id. 

11Fee code W is appended to orders that remove 

liquidity from BYX (Tape A) and is assessed a 

rebate of $0.0010 per share. See the Exchange’s fee 

schedule available at http://www.bats.com/us/ 

equities/membership/fee_schedule/byx/. 

12 ‘‘ADAV’’ means average daily volume 

calculated as the number of shares added per day 

on a monthly basis. Id. 

13 ‘‘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. Id. 

14With the addition of proposed Tier 5 under 

footnote 1, the Exchange proposes to renumber 

current Tier 5 as Tier 6. 

15 15 U.S.C. 78f. 

16 15 U.S.C. 78f(b)(4). 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 

Exchange currently offers five tiers 

under footnote 1 that offer reduced fees 

for displayed orders that yield fee codes 

B,6 V 7 and Y,8 and an enhanced rebate 

for orders that remove liquidity yielding 

fee codes BB,9 N 10 and W.11 The 

Exchange proposes to amend the criteria 

necessary to receive the enhanced rebate 

under Tier 3 under footnote 1. Tier 3 

provides a rebate of $0.0015 [sic] per 

share for orders where that Member has 

an ADAV 12 equal to or greater than 

0.55% of the TCV.13 The Exchange 

proposes to increase the tier’s 

requirements to now require the 

Member to have an ADAV equal to or 

greater than 0.80% of the TCV. The 

Exchange does not propose to amend 

the tier’s rebate. 

The Exchange also proposes to add a 

new tier under footnote 1, to be known 

as Tier 5,14 under which a Member 

would be charged a reduced fee of 

$0.0012 per share on orders that yield 

fee codes B, V and Y, where that 

Member’s Market Participant Identifier 

(‘‘MPID’’) has an ADAV equal to or 

greater than 0.55% of the TCV. 

The Exchange proposes to implement 

the above changes to its fee schedule on 

August 1, 2017. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,15

in general, and furthers the objectives of 

Section 6(b)(4),16 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities. 

The Exchange believes that the 

proposed tier under footnote 1is [sic] 

equitable and reasonable because such 

pricing programs reward a Member’s 

growth pattern on the Exchange and 

such increased volume will allow the 

Exchange to continue to provide and 

potentially expand the its incentive 

programs. The Exchange believes that 

providing the same reduced rate to 

Members under Tiers 3 and 5 while 

requiring more stringent requirements 

under Tier 3 than Tier 5 is equitable and 

reasonable as the proposed criteria 

reasonable [sic] reflect the segment of 

the Member’s order flow that is to be 

measured. Under Tier 3, the Member as 

a whole must meet a higher standard 

than their individual MPID under Tier 

5. The Exchange believes this is 

equitable and reasonable because a 

Member may have multiple MPIDs that 

it may aggregate volume across to meet 

Tier 3’s criteria, while Tier 5 is limited 

to the individual MPID. The Exchange 

further believes that the proposed tier 

and modifications are reasonable, fair 

and equitable because the liquidity from 

the proposed changes would benefit all 

investors by deepening the Exchange’s 

liquidity pool, offering additional 

flexibility for all investors to enjoy cost 

savings, supporting the quality of price 

discovery, promoting market 

transparency and improving investor 

protection. These pricing programs are 

also not unfairly discriminatory in that 

it is available to all Members. 

In addition, volume-based fees such 

as that proposed herein have been 

widely adopted by 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: (i) The value to an 

exchange’s market quality; (ii) 

associated higher levels of market 

activity, such as higher levels of 

liquidity provision and/or growth 

patterns; and (iii) the introduction of 

higher volumes of orders into the price 

and volume discovery processes. The 

Exchange believes that the proposed tier 

is a reasonable, fair and equitable, and 

not an unfairly discriminatory 

allocation of fees and rebates, because it 

will provide Members with an 

additional incentive to reach certain 

thresholds on the Exchange. 

(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. The 

Exchange does not believe that this 

change represents a significant 

departure from previous pricing offered 

by the Exchange or from pricing offered 

by the Exchange’s competitors. The 

proposed rates would apply uniformly 

to all Members, and 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. Further, excessive 

fees would serve to impair an 

exchange’s ability to compete for order 

flow and members rather than 

burdening competition. The Exchange 

believes that its proposal would not 

burden intramarket competition because 

the proposed rate would apply 

uniformly to all Members. 

(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 

unsolicited 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 17 and paragraph (f) of Rule 

19b–4 thereunder.18 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 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37647 

19 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)(iii). 

4 17 CFR 240.19b–4(f)(6). 5See C2 Rule 6.38. 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BatsBYX–2017–17 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–BatsBYX–2017–17. 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 Number SR– 

BatsBYX–2017–17 and shouldbe 

submitted on or before September 1, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16929 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81327; File No. SR–C2– 

2017–023] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Adopt Rule 6.49, C2 Trade 

Match System 

August 7, 2017. 

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 August 4, 

2017, C2 Options Exchange, 

Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) 

filed with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

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

the Act 3 and Rule 19b–4(f)(6) 

thereunder.4 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 proposing to adopt 

new Rule 6.49 related to its existing C2 

Trade Match System (‘‘CTM’’) 

functionality. 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site (http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 is proposing to adopt 

new Rule 6.49 related to its existing C2 

Trade Match System (‘‘CTM’’) 

functionality. CTM is a systems user 

interface provided by the Exchange in 

which authorized Trading Permit 

Holders (‘‘TPHs’’) may receive copies of 

trade records and add and/or update 

their trade records. Although references 

to CTM exist within Regulatory 

Circulars, the functionality is not 

currently described in Exchange rules. 

The Exchange believes it would be 

beneficial to address and provide 

further detail in its rules regarding the 

CTM functionality and permitted uses. 

Post-trade modifications may be 

effected via the CTM system. A rule 

explicitly detailing the modification 

process and defining what permitted 

modifications are allowed does not 

currently exist in the Exchange’s rules. 

The Exchange believes it would be 

useful to explicitly reference within the 

rule text the term ‘‘CTM’’ and codify 

what post trade modifications via CTM 

are permitted to reduce confusion and 

add additional transparency to the rules 

regarding C2’s systems. 

First, the Exchange proposes to 

explicitly reference and describe 

‘‘CTM.’’ Specifically, CTM is a system 

in which authorized TPHs may enter 

and report transactions that have been 

effected on the Exchange in accordance 

with Exchange rules or to correct bona 

fide errors (e.g., a situation in which a 

transaction was incorrectly reported as 

an opening transaction). Documentation 

requirements related to changes made 

through the use of CTM will be 

announced via a Regulatory Circular. 

By way of background, C2 Rule 6.38 

requires that for all transactions made 

on the Exchange, TPHs must file with 

the Exchange certain trade information 5

in order to allow the Exchange to 

properly match and clear trades. This 

information is used to provide the 

comparison of the two sides (i.e., buy 

and sell) of a transaction. When the two 

sides match, the trade is successfully 

compared and will move on to the 

Options Clearing Corporation (‘‘OCC’’) 

for clearance. For trades that do not 

match (i.e., trade information from each 

side do not match) TPHs and their 

respective representatives typically 

make reasonable efforts to resolve 

unmatched trades on trade day. The 

Exchange notes that CTM may be used 


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