44674 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices 

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). 

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. 

9 ‘‘ADV’’ means average daily volume calculated 

as the number of shares added or removed, 

combined, per day on a monthly basis. See the 

Exchange’s fee schedule available at http://

www.bats.com/us/equities/membership/fee_

schedule/byx/. The Exchange notes that in this 

context, because the tier is based on ‘‘remove 

ADV,’’ the Exchange will only consider volume that 

removes liquidity in its calculation. 

10 ‘‘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. 

11As defined in BYX Rule 11.24(a)(2), a ‘‘Retail 

Order’’ is an agency order or riskless principal that 

meets the criteria of FINRA Rule 5320.03 that 

originates from a natural person and is submitted 

to the Exchange by a Retail Member organization, 

provided that no change is made to the terms of the 

order with respect to price or side of market and 

the order does not originate from a trading 

algorithm or any other computerized methodology. 

12Pursuant to footnote 5, the standard rebate/fee 

for accessing liquidity applies to any Retail Order 

that removes displayed liquidity or Mid-Point Peg 

liquidity. 

Commission a Request of the United 

States Postal Service to Add Priority 

Mail Contract 359 to Competitive 

Product List. Documents are available at 

www.prc.gov, Docket Nos. MC2017–205, 

CP2017–313. 

Elizabeth A. Reed, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2017–20415 Filed 9–22–17; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81654; File No. SR– 

BatsBYX–2017–21] 

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. 

September 19, 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 

September 11, 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 Act 3 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 

As further described below, the 

Exchange proposes to amend its fee 

schedule to: (i) Modify its standard 

rebates to remove liquidity yielding fee 

codes BB, N and W; (ii) adopt a new tier 

under footnote 1, Add/Remove Volume 

Tiers; and (iii) modify the pricing 

applicable to orders that yield fee codes 

ZP and ZR, applicable to the Exchange’s 

Retail Price Improvement (‘‘RPI’’) 

program, including a change to the 

description of fee code ZR. 

Standard Rebates To Remove Liquidity 

The Exchange currently provides a 

standard rebate of $0.0010 per share for 

orders that remove liquidity from the 

Exchange in securities priced at or 

above $1.00. The Exchange appends fee 

codes W, BB and N for orders removing 

liquidity in Tape A, Tape B, and Tape 

C securities, respectively. The Exchange 

proposes to reduce the standard rebate 

provided for orders yielding these fee 

codes to a rebate of $0.0008 per share. 

In connection with this change, the 

Exchange proposes to modify the 

Standard Rates chart contained on the 

fee schedule to reflect the new standard 

rebate of $0.0008 per share to remove 

liquidity. 

New Remove Volume Tier 

The Exchange currently offers six tiers 

under footnote 1 that offer reduced fees 

for displayed orders that add liquidity 

yielding fee codes B,6 V 7 and Y,8 and 

an enhanced rebate for orders that 

remove liquidity yielding fee codes BB, 

N and W, as described above. The 

Exchange proposes to add a new tier 

under footnote 1, to be known as Tier 

7, under which a Member would receive 

an enhanced rebate of $0.0016 per share 

on orders that yield fee codes BB, N and 

W, where a Member has: (i) A Step-Up 

Remove TCV (proposed to be defined as 

described below) from July 2017 equal 

to or greater than 0.05%; and (ii) a 

remove ADV 9 equal to or greater than 

0.20% of the TCV.10

In conjunction with this change, the 

Exchange proposes to adopt a definition 

for Step-Up Remove TCV so that this 

term is defined as ‘‘remove ADV as a 

percentage of TCV in the relevant 

baseline month subtracted from current 

remove ADV as a percentage of TCV.’’ 

This term is consistent with the existing 

definition of Step-Up Remove ADAV. 

RPI Pricing 

The Exchange maintains specific 

pricing applicable to its RPI program for 

executions of orders in securities priced 

at or above $1.00. Specifically, the 

Exchange currently applies fee code ZR 

and provides a $0.0025 rebate per share 

for a Retail Order 11 that removes 

liquidity from the Exchange, except for 

a Retail Order that removes displayed 

liquidity or Mid-Point Peg liquidity.12

The Exchange currently applies fee code 


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Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices 44675 

13As defined in BYX Rule 11.24(a)(3), a ‘‘Retail 

Price Improvement Order’’ consists of nondisplayed interest on the Exchange that is priced 

better than the Protected NBB or Protected NBO by 

at least $0.001 and that is identified as such. 

14See Securities Exchange Act Release No. 71939 

(April 14, 2014), 79 FR 21977, 21978 (April 18, 

2014) (SR–BYX–2014–004) (notice of filing and 

immediate effectiveness of effectiveness of proposal 

to modify BYX fees, including proposal to charge 

the standard fee to add non-displayed liquidity to 

an order that adds non-displayed liquidity and is 

removed by a Retail Order). 

15See supra, note 12. 

16The Exchange initially filed the proposed 

amendments to its fee schedule on September 1, 

2017 (SR-BatsBYX–2017–20). On September 11, 

2017, the Exchange withdrew SR–BatsBYX–2017– 

20 and then subsequently submitted this filing (SR– 

BatsBYX–2017–21). 

17 15 U.S.C. 78f. 

18 15 U.S.C. 78f(b)(4). 

19See the Nasdaq BX fee schedule available at 

http://www.nasdaqtrader.com/Trader.aspx?

id=bx_pricing. 

20See id. 

ZP and charges a fee of $0.0025 per 

share for any Retail Price Improving 

Order 13 that adds liquidity to the 

Exchange and is removed by a Retail 

Order. 

The Exchange proposes to reduce the 

rebate provided to a Retail Order that 

yields fee code ZR from a rebate of 

$0.0025 per share to a rebate of $0.0015 

per share. The Exchange also proposes 

to reduce the fee charged for any Retail 

Price Improving Order that yields fee 

code ZP from a fee of $0.0025 per share 

to a fee of $0.0016 per share. 

In addition to these changes, the 

Exchange proposes to expand the 

description of fee code ZR to clarify that 

this fee code is applied when a Retail 

Order executes against either a Retail 

Price Improving Order or a nondisplayed order yielding fee code HA. 

This fee structure has been in place for 

several years 14 and footnote 5 explicitly 

defines the types of orders against 

which a Retail Order can execute that 

result in such order being assessed the 

standard fee or rebate.15 However, the 

Exchange believes that fee code ZR 

would be clearer if it reflected the 

complete universe of liquidity against 

which a Retail Order can execute and 

still yield such fee code. This clarity is 

achieved by adding reference to nondisplayed liquidity yielding fee code 

HA to fee code ZR. 

Implementation Date 

The Exchange proposes to implement 

the above changes to its fee schedule 

effective immediately.16

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,17

in general, and furthers the objectives of 

Section 6(b)(4),18 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 proposed 

changes to fee codes BB, N, and W 

represent an equitable allocation of 

reasonable dues, fees, and other charges 

because the Exchange’s standard rebate 

for removing liquidity continues to be 

higher than that provided by other 

exchanges. For example, Nasdaq BX, 

Inc. (‘‘Nasdaq BX’’) provides a standard 

rebate of $0.0003 per share for orders 

that remove liquidity.19 The Exchange 

further believes that the standard rebate 

for fee codes BB, N, and W remains 

equitably allocated and not 

unreasonably discriminatory because 

such rebate is provided to all Members 

unless they qualify for enhanced rebates 

based on other factors. 

The Exchange believes that the 

proposed Tier 7 to be added to footnote 

1 is equitably allocated and reasonable 

because it will reward a Member’s 

growth pattern on the Exchange and 

such increased volume will allow the 

Exchange to continue to provide and 

potentially expand its incentive 

programs. The Exchange further 

believes that the proposed tier is 

reasonable, fair and equitable because 

the liquidity from the proposed change 

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. The Exchange also believes 

the proposed rebate of $0.0016 per share 

for Tier 7 is reasonable in that it is 

equivalent to the top tier rebate to 

remove liquidity provided by Nasdaq 

BX.20 The proposed pricing structure is 

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. 

The Exchange believes that its 

proposed adjustments to pricing 

applicable to the RPI program are 

reasonable, equitably allocated and not 

unreasonably discriminatory because 

they continue to provide an enhanced 

rebate for Retail Orders entered to the 

Exchange that remove certain liquidity 

and yield fee code ZR, as described 

above, but also keep such rebates 

consistent with the Exchange’s standard 

and tiered pricing structure to remove 

liquidity. For the same reason, the 

Exchange believes the reduction of the 

rate charged to Retail Price Improving 

Orders that yield fee code ZP is 

reasonable, equitably allocated and not 

unreasonably discriminatory. In 

addition to remaining similar to the 

rebate provided for contra side orders 

(i.e., Retail Orders provided a $0.0015 

rebate per share pursuant to fee code 

ZR), the proposed fee of $0.0016 per 

share to add liquidity with a Retail Price 

Improving Order is intended to 

incentivize liquidity providers to submit 

such orders as it is a reduction from the 

current rate as well as lower than the 

Exchange’s current standard fee to add 

liquidity of $0.0018 per share. Finally, 

the Exchange believes that the proposed 

clarification of fee code ZR is consistent 

with the Act as it will help to avoid 

potential confusion and because the 

rebate provided continues to be 

reasonable, equitably allocated and not 

unreasonably discriminatory for the 

reasons described above. 

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 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
44676 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices 

21 15 U.S.C. 78s(b)(3)(A). 

22 17 CFR 240.19b–4(f). 23 17 CFR 200.30–3(a)(12). 

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 21 and paragraph (f) of Rule 

19b–4 thereunder.22 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 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BatsBYX–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–BatsBYX–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– 

BatsBYX–2017–21, and should be 

submitted on or before October 16, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20364 Filed 9–22–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

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: 

Regulation S–X, SEC File No. 270–003, 

OMB Control No. 3235–0009. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information discussed below. 

Information collected and information 

prepared pursuant to Regulation S–X 

focus on the form and content of, and 

requirements for, financial statements 

filed with periodic reports and in 

connection with the offer and sale of 

securities. Investors need reasonably 

current financial statements to make 

informed investment and voting 

decisions. 

The potential respondents include all 

entities that file registration statements 

or reports pursuant to the Securities Act 

of 1933 (15 U.S.C. 77a, et seq.), the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a, et seq.), or the Investment 

Company Act of 1940 (15 U.S.C. 80a–1, 

et seq.). 

Regulation S–X specifies the form and 

content of financial statements when 

those financial statements are required 

to be filed by other rules and forms 

under the federal securities laws. 

Compliance burdens associated with the 

financial statements are assigned to the 

rule or form that directly requires the 

financial statements to be filed, not to 

Regulation S–X. Instead, an estimated 

burden of one hour traditionally has 

been assigned to Regulation S–X for 

incidental reading of the regulation. The 

estimated average burden hours are 

solely for purposes of the Paperwork 

Reduction Act and are not derived from 

a comprehensive or even a 

representative survey or study of the 

costs of SEC rules or forms. 

Recordkeeping retention periods are 

based on the disclosure required by 

various forms and rules other than 

Regulation S–X. In general, balance 

sheets for the preceding two fiscal years, 

income and cash flow statements for the 

preceding three fiscal years, and 

condensed quarterly financial 

statements must be filed with the 

Commission. Five year summary 

financial information is required to be 

disclosed by some larger registrants. 

Filing financial statements, when 

required by the governing rule or form, 

is mandatory. Because these statements 

are provided for the purpose of 

disseminating information to the 

securities markets, they are not kept 

confidential. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

The public may view the information 

discussed in this notice at 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Chief Information Officer, 

Securities and Exchange Commission, c/ 

o Remi Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549 or send an email 


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