Federal Register / Vol. 82, No. 165 / Monday, August 28, 2017 / Notices 40823 

22 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). 

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Exchange Rule 11.6(e)(2). 

6See Exchange Rule 11.8(e) for a complete 

description of the operation of MDOs. 

7See Exchange Rule 1.5(d). 

8See Exchange Rule 1.5(ee). 

9See Exchange Rule 11.6(e)(1). 

10The Exchange proposes to renumber existing 

paragraph (4) as (5) and to increase the numbering 

of each following paragraph under Rule 11.8(e) 

accordingly. 

11See Exchange Rule 11.6(a). 

12See Exchange Rule 11.6(a)(1). 

13See e.g, Exchange Rule 11.8(b)(4). 

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– 

NYSEArca–2017–88 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–NYSEArca–2017–88. 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– 

NYSEArca–2017–88 and should be 

submitted on or before September 18, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18125 Filed 8–25–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81454; File No. SR– 

BatsEDGA–2017–21] 

Self-Regulatory Organizations; Bats 

EDGA Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

11.8, Order Types, To Permit Midpoint 

Discretionary Orders To Be NonDisplayed 

August 22, 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 

11, 2017, Bats EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 this proposal 

as a ‘‘non-controversial’’ 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 proposed rule 

change to permit MidPoint 

Discretionary Orders (‘‘MDO’’) to be 

Non-Displayed 5 by amending paragraph 

(e) of Exchange Rule 11.8, Order Types. 

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 

An MDO is a limit order to buy that 

is displayed at and pegged to the 

National Best Bid (‘‘NBB’’), with 

discretion to execute at prices up to and 

including the midpoint of the National 

Best Bid and Offer (‘‘NBBO’’), or a limit 

order to sell that is displayed at and 

pegged to the National Best Offer 

(‘‘NBO’’), with discretion to execute at 

prices down to and including the 

midpoint of the NBBO.6 MDOs are 

designed to exercise discretion to 

execute to the midpoint of the NBBO 

and provide price improvement over the 

NBBO. 

Currently, an MDO is displayed on 

the EDGA Book 7 at the NBB or NBO to 

which it is pegged. The Exchange now 

proposes to permit Users 8 to elect that 

their MDO be Non-Displayed on the 

EDGA Book by amending paragraph (e) 

of Exchange Rule 11.8, Order Types. 

Therefore, the Exchange proposes to add 

new paragraph (4) to the description of 

MDOs under Rule 11.8(e) stating that an 

MDO will default to a Displayed 9

instruction unless the User includes a 

Non-Displayed instruction on the order 

and will be Displayed or Non-Displayed 

on the EDGA Book at its pegged or limit 

price in accordance with paragraph (e) 

of Rule 11.8.10 The price to which an 

MDO is pegged to, whether Displayed or 

Non-Displayed, will continue to operate 

in the same manner as it does today in 

all other respects. Proposed paragraph 

(4) of Rule 11.8(e) would also specify 

that a User may elect that its MDO that 

is displayed on the EDGA Book include 

the User’s market participant identifier 

(‘‘MPID’’) by selecting the Attributable 

instruction.11 Otherwise, an MDO with 

a Displayed instruction will 

automatically default to a NonAttributable 12 instruction. This is 

consistent with the current operation of 

orders that are to be displayed on the 

EDGA Book.13


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40824 Federal Register / Vol. 82, No. 165 / Monday, August 28, 2017 / Notices 

14See Exchange Rule 11.6(d). The Exchange also 

proposes to capitalize all references to the defined 

term ‘‘Discretionary Range’’ within Rule 11.8(e). 

15An MDO to buy or sell with a limit price that 

is less than the prevailing NBB or higher than the 

prevailing NBO, respectively, will continue to be 

posted to the EDGA Book at its limit price. See 

Exchange Rule 11.8(e). 

16See Exchange Rule 11.9(a)(2)(C)(i). 

17See Exchange Rule 11.9(a)(2)(A)(ii). 

18See Exchange Rule 11.9(a)(2)(A)(iv). 

19 15 U.S.C. 78f(b). 

20 15 U.S.C. 78f(b)(5). 

21See NYSE Arca Rule 7.31(h)(3) (defining the 

Discretionary Pegged Order). See also Securities 

Exchange Act Release No. 78181 (June 28, 2016), 81 

FR 43297 (July 1, 2016) (order approving the 

Discretionary Pegged Order). See IEX Rule 

11.190(a)(3) (defining Pegged Orders as a nondisplayed order which may be pegged to the inside 

quote on the same side of the market with 

discretion to the midpoint of the NBBO, i.e., 

Discretionary Peg orders). See also Securities 

Exchange Act Release No. 78101 (June 17, 2016), 81 

FR 41141 (June 23, 2016) (order approving the IEX 

exchange application, which included IEX’s Pegged 

Orders and Discretionary Peg Order). 

The Exchange also proposes to make 

certain revisions to paragraph (e) of Rule 

11.8 to account for enabling Users to 

elect that an MDO to be Non-Displayed. 

These revisions include deleting 

references to ‘‘displayed’’ prices and 

replacing certain references to 

‘‘displayed’’ with ‘‘pegged’’. As stated 

above and as currently set forth in Rule 

11.8(e), the price at which an MDO is 

displayed on the EDGA Book is either 

the NBB or NBO to which it is pegged. 

An MDO that is to be Non-Displayed 

will operate in the same manner but its 

pegged price will simply not be 

displayed on the EDGA Book. Therefore, 

deleting references to ‘‘displayed’’ 

prices and replacing certain references 

to ‘‘displayed’’ with ‘‘pegged’’ would 

not affect the operation of an MDO other 

than to account for when an MDO is 

Non-Displayed. First, the Exchange 

proposes to amend the first sentence of 

paragraph (e) of Rule 11.8 to delete 

references to ‘‘displayed’’. As a result, 

an MDO would be defined as ‘‘a limit 

order to buy that is pegged to the NBB, 

with discretion to execute at prices up 

to and including the midpoint of the 

NBBO, or a limit order to sell that is 

pegged to the NBO, with discretion to 

execute at prices down to and including 

the midpoint of the NBBO.’’ References 

to ‘‘displayed’’ throughout the 

remainder of paragraph (e) of Rule 11.8 

would be replaced by ‘‘pegged’’. 

Therefore, the rule would state that an 

MDO’s pegged price, like its displayed 

price today, and Discretionary Range 14

are bound by its limit price.15 The 

pegged prices of an MDO, like its 

displayed price today, will continue to 

be derived from the NBB or NBO, and 

will continue to be unable to 

independently establish or maintain the 

NBB or NBO. 

The Exchange also proposes to amend 

renumbered paragraph (7) to make two 

non-substantive, clarifying changes and 

to replace the term ‘‘displayed’’ with 

‘‘pegged’’. The current language states 

that an MDO with a limit price and 

time-in-force of Day that rests on the 

EDGA Book will be repriced. The 

Exchange proposes to delete the phrase 

‘‘with a limit price and a time-in-force 

of Day’’ as all MDOs must include a 

limit price and may include time-inforce instructions other than Day that 

would cause them to rest on the EDGA 

Book, such as RHO, GTX, and GTD. 

Paragraph (7) also states that the pegged 

price of an MDO that is resting on the 

EDGA Book will be adjusted in response 

to changes in the midpoint of the NBBO. 

While this language is technically 

correct and the midpoint of the NBBO 

will change in the case where either the 

NBB or NBO changes, the Exchange 

proposes to amend paragraph (7) to 

clarify that the pegged price will be 

adjusted in response to changes in the 

NBB or NBO as those are the prices that 

the pegged price tracks. Lastly, the 

amended rule would state that any 

unexecuted portion of an MDO that is 

resting on the EDGA Book will receive 

a new time stamp each time its pegged 

price, rather than displayed price, is 

automatically adjusted in response to 

changes in the NBBO. 

Today, for purposes of MDO priority, 

the displayed price of an MDO is treated 

like a Limit Order that is displayed on 

the EDGA Book.16 Limit Orders with a 

Non-Displayed instruction have priority 

behind Limit Orders with a Displayed 

instruction resting on the EDGA Book.17

In order to continue to treat MDO 

priority consistent with that of Limit 

Orders, and not like other orders with 

a Pegged instruction, the Exchange 

proposes that an MDO with a NonDisplayed instruction will have the 

same priority as Limit Orders with a 

Non-Displayed instruction when 

executed at their pegged price. As a 

result, the Exchange proposes to amend 

paragraph (a)(2)(C)(i) of Rule 11.9 to 

specify that, for purposes of order 

priority, the pegged price of an MDO, 

like its displayed price today, will be 

treated as a Limit Order, as defined in 

Exchange Rule 11.8(b). This change is 

designed to account for the pegged price 

of an MDO being Displayed or NonDisplayed and the proposed priority of 

an MDO with a Non-Displayed 

instruction. MDOs executed in their 

Discretionary Range will maintain the 

same priority as they do today 

regardless of whether their pegged price 

is displayed on the EDGA Book.18

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 19 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 20

in particular, in that it is designed 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 promotes just and equitable 

principles of trade because it would 

provide Users who utilize MDOs with 

additional flexibility by enabling such 

Users to elect that the pegged price of 

the MDO not be displayed on the EDGA 

Book. All other aspects of an MDO will 

remain unchanged. Allowing for the 

non-display of MDOs on the EDGA 

Book would minimize the market 

impact of larger orders. The proposed 

rule change may also incentivize Users 

to enter MDOs with large sizes thereby 

increasing liquidity at the NBBO as well 

as the midpoint of the NBBO, resulting 

in increased price improvement 

opportunities for contra-side orders. The 

Exchange notes that electing that an 

MDO be Non-Displayed would be 

voluntary, and that such orders will 

default to Displayed unless the User 

elects Non-Displayed. 

Furthermore, the Exchange notes that 

NYSE Arca, Inc. (‘‘NYSE Arca’’) and the 

Investors Exchange LLC (‘‘IEX’’) both 

currently offer order types that peg to 

the NBBO with discretion to execute to 

the midpoint of the NBBO and allow for 

the order’s pegged price to not be 

displayed on their respective order 

books.21

Lastly, the Exchange believes the nonsubstantive clarifying changes to 

Exchange Rule 11.8(e) remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system as they 

seek to remove or correct in order to 

ensure the rule accurately reflects the 

operation of MDOs and avoid potential 

investor confusion. 

Therefore, the Exchange believes the 

proposal removes impediments to and 

perfects the mechanism of a free and 

open market and a national market 

system, and, in general, protects 

investors and the public interest. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 165 / Monday, August 28, 2017 / Notices 40825 

22 Id. 

23 15 U.S.C. 78s(b)(3)(A). 

24 17 CFR 240.19b–4. 25 17 CFR 200.30–3(a)(12). 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

On the contrary, the Exchange believes 

the proposed rule change promotes 

competition because it will enable the 

Exchange to offer functionality similar 

to that offered by NYSE Arca and IEX.22

Therefore, the Exchange does not 

believe the proposed rule change will 

result in any burden on intermarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No comments were solicited or 

received on the proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (A) Significantly affect 

the protection of investors or the public 

interest; (B) impose any significant 

burden on competition; and (C) by its 

terms, 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 23 and paragraph (f)(6) of Rule 19b– 

4 thereunder,24 the Exchange has 

designated this rule filing as noncontroversial. The Exchange has given 

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. 

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: (1) Necessary or appropriate in 

the public interest; (2) for the protection 

of investors; or (3) 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– 

BatsEDGA–2017–21 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-BatsEDGA–2017–21. 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– 

BatsEDGA–2017–21 and should be 

submitted on or before September 18, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18126 Filed 8–25–17; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15226 and #15227; 

NEBRASKA Disaster Number NE–00069] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of Nebraska 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of NEBRASKA (FEMA–4325– 

DR), dated 08/01/2017. 

Incident: Severe Storms, Tornadoes, 

and Straight-line Winds. 

Incident Period: 06/12/2017 through 

06/17/2017. 

DATES: Issued on 08/01/2017. 

Physical Loan Application Deadline 

Date: 10/02/2017. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/01/2018. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of 

NEBRASKA, dated 08/01/2017, is 

hereby amended to include the 

following areas as adversely affected by 

the disaster. 

Primary Counties: Platte 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2017–18130 Filed 8–25–17; 8:45 am] 

BILLING CODE 8025–01–P 


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