Federal Register / Vol. 82, No. 194 / Tuesday, October 10, 2017 / Notices 47065 

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 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. 8 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). 

5See EDGX Rules 11.6(h), 11.8(b)(3), and 

11.10(e)(3). See also Securities Exchange Act 

Release No. 81457 (August 22, 2017), 82 FR 40812 

(August 28, 2017) (SR–BatsEDGX–2017–34). 

6See EDGX Rule 11.9(h) (describing the operation 

of the Minimum Execution Quantity order 

instructions, which is functionally identical to the 

BZX Minimum Quantity Order). 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

removing obsolete rule text. 

The Exchange proposes to remove 

outdated references to ORF prior to 

August 1, 2017. The Exchange believes 

this rule change will provide clarity and 

ease of reference when Participants 

review the ORF rule. 

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 

proposed change is a non-substantive 

amendment to remove obsolete rule 

text. 

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 6 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.7

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– 

BX–2017–040 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–BX–2017–040. 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–BX– 

2017–040 and should be submitted on 

or before October 31, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–21671 Filed 10–6–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81807; File No. SR– 

BatsBZX–2017–62] 

Self-Regulatory Organizations; Bats 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Rule 11.9, 

Orders and Modifiers, To Add New 

Optional Functionality to Minimum 

Quantity Orders 

October 3, 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 26, 2017, Bats BZX 

Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’) 

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 ‘‘non-controversial’’ proposed rule 

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

of the Act 3 and Rule 19b–4(f)(6) 

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 add 

new optional functionality to Minimum 

Quantity Orders by amending paragraph 

(c)(5) of Exchange Rule 11.9, Orders and 

Modifiers. The Exchange also proposes 

to amend paragraph (e)(3) of Exchange 

Rule 11.9 to make certain clarifying, 

non-substantive changes. The proposed 

amendments are identical changes its 

affiliate, Bats EDGX Exchange, Inc. 

(‘‘EDGX’’), recently filed with and were 

published by the Commission for 

immediate effectiveness.5 The Exchange 

also proposes to add language to the 

description of Minimum Quantity 

Orders to further describe their current 

operation on BZX and to harmonize the 

rule with that of EDGX.6

The text of the proposed rule change 

is available at the Exchange’s Web site 


sradovich on DSK3GMQ082PROD with NOTICES
47066 Federal Register / Vol. 82, No. 194 / Tuesday, October 10, 2017 / Notices 

7See supra note 5. 

8See EDGX Rule 11.9(h) [sic] (describing the 

operation of the Minimum Execution Quantity 

order instructions, which is functionally identical 

to the BZX Minimum Quantity Order). 

9The term ‘‘User’’ is defined as ‘‘any Member or 

Sponsored Participant who is authorized to obtain 

access to the System pursuant to Rule 11.3.’’ See 

Exchange Rule 1.5(cc). 

10Today, the System will aggregate multiple 

resting orders to satisfy the incoming order’s 

minimum quantity and a User cannot elect for the 

incoming order to execute against a single resting 

contra-side order. 

11See Exchange Rule 11.9(c)(4). 

12See Exchange Rule 11.9(b)(1). 

13The Commission has long recognized this 

concern: ‘‘[a]nother type of implicit transaction cost 

reflected in the price of a security is short-term 

price volatility caused by temporary imbalances in 

trading interest. For example, a significant implicit 

cost for large investors (who often represent the 

consolidated investments of many individuals) is 

the price impact that their large trades can have on 

the market. Indeed, disclosure of these large orders 

can reduce the likelihood of their being filled.’’ See 

Securities Exchange Act Release No. 42450 

(February 23, 2000), 65 FR 10577, 10581 (February 

28, 2000) (SR–NYSE–99–48). 

14See supra note 5. 

15 If no election is made, the System will 

aggregate multiple resting orders to satisfy the 

incoming order’s minimum quantity. 

16The term ‘‘BZX Book’’ is defined as ‘‘the 

System’s electronic file of orders.’’ See Exchange 

Rule 1.5(e). 

17The term ‘‘System’’ is defined as ‘‘the 

electronic communications and trading facility 

designated by the Board through which securities 

orders of Users are consolidated for ranking, 

execution and, when applicable, routing away. See 

Exchange Rule 1.5(aa). 

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 add new 

optional functionality to Minimum 

Quantity Orders by amending paragraph 

(c)(5) of Exchange Rule 11.9, Orders and 

Modifiers. The Exchange also proposes 

to amend paragraph (e)(3) of Exchange 

Rule 11.9 to make certain clarifying, 

non-substantive changes. The proposed 

amendments are identical to changes 

recently filed by Exchange’s affiliate 

EDGX and were published by the 

Commission for immediate 

effectiveness.7 The Exchange also 

proposes to add language to the 

description of Minimum Quantity 

Orders to further describe their current 

operation on BZX and to harmonize the 

rule with that of EDGX.8 The Exchange 

does not propose to implement new or 

unique functionality that has not been 

previously filed with the Commission or 

is not available on EDGX. The Exchange 

notes that the proposed rule text is 

based on BZX rules and is different only 

to the extent necessary to conform to the 

Exchange’s current rules. Each of these 

changes are described in detail below. 

Exchange Rule 11.9(c)(5), Proposed 

Individual Minimum Size and 

Harmonization With EDGX Rule 11.6(h) 

A Minimum Quantity Order enables a 

User 9 to specify a minimum share 

amount at which the order will execute. 

A Minimum Quantity Order will not 

execute unless the volume of contraside liquidity available to execute 

against the order meets or exceeds the 

designated minimum. Specifically, a 

Minimum Quantity Order is a limit 

order to buy or sell that will only 

execute if a specified minimum quantity 

of shares can be obtained. Orders with 

a specified minimum quantity will only 

execute against multiple, aggregated 

orders if such executions would occur 

simultaneously.10 The Exchange will 

only honor a specified minimum 

quantity on BZX Only Orders 11 that are 

non-displayed or Immediate-or-Cancel 

(‘‘IOC’’) Orders 12 and will disregard a 

minimum quantity on any other order. 

First, the Exchange proposes to add 

new optional functionality that would 

enhance the utility of Minimum 

Quantity Orders by amending paragraph 

(c)(5) of Exchange Rule 11.9. In sum, the 

proposal would permit an incoming 

Minimum Quantity Order to forego 

executions where multiple resting 

orders could otherwise be aggregated to 

satisfy the order’s minimum quantity. 

The Exchange has observed that some 

market participants avoid sending large 

Minimum Quantity Orders to the 

Exchange out of concern that such 

orders may interact with small orders 

entered by professional traders, possibly 

adversely impacting the execution of 

their larger order. Institutional orders 

are often much larger in size than the 

average order in the marketplace. To 

facilitate the liquidation or acquisition 

of a large position, market participants 

tend to submit multiple orders into the 

market that may only represent a 

fraction of the overall institutional 

position to be executed. Various 

strategies used by institutional market 

participants to execute large orders are 

intended to limit price movement of the 

security at issue. Executing in small 

sizes, even if in the aggregate it meets 

the order’s minimum quantity, may 

impact the market for that security such 

that the additional orders the market 

participant has yet to enter into the 

market may be more costly to execute. 

If an institution is able to execute in 

larger sizes, the contra-party to the 

execution is less likely to be a 

participant that reacts to short term 

changes in the stock price, and as such, 

the price impact to the stock may be less 

acute when larger individual executions 

are obtained.13 As a result, these orders 

are often executed away from the 

Exchange in dark pools or other 

exchanges that offer the same 

functionality as proposed herein,14 or 

via broker-dealer internalization. 

To attract larger Minimum Quantity 

Orders, the Exchange proposes to add 

new optional functionality that would 

enhance the utility of Minimum 

Quantity Orders. In sum, the proposal 

would permit a User to elect that its 

incoming Minimum Quantity Order 

execute solely against one or more 

resting individual orders, each of which 

must satisfy the order’s minimum 

quantity condition. In such case, the 

order would forego executions where 

multiple resting orders could otherwise 

be aggregated to satisfy the order’s 

minimum quantity, but do not 

individually satisfy the minimum 

quantity condition.15 As discussed 

above, under the current rule a 

Minimum Quantity Order will execute 

upon entry against any number of 

smaller contra-side orders that, in 

aggregate, meet the minimum quantity 

set by the User. This default behavior 

will remain. For example, assume there 

are two orders to sell resting on the BZX 

Book 16—the first for 300 shares and a 

second for 400 shares, with the 300 

share order having time priority ahead 

of the 400 share order. If a User entered 

a Minimum Quantity Order to buy 1,000 

shares at $10.00 with a minimum 

quantity of 500 shares, and the order 

was marketable against the two resting 

sell orders for 300 and 400 shares, the 

System 17 would aggregate both sell 

orders for purposes of meeting the 

minimum quantity, thus resulting in 

executions of 300 shares and then 400 

shares respectively with the remaining 

300 shares of the Minimum Quantity 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 194 / Tuesday, October 10, 2017 / Notices 47067 

18See supra notes 11 and 12 for a description of 

the functionality associated with orders that may 

also be Minimum Quantity Orders. 

19See Exchange Rule 11.9(g)(4). 

20See Nasdaq Rule 4703(e). See IEX Rule 

11.190(h)(2). 

21See EDGX Rule 11.9(h) [sic] describing the 

operation of the Minimum Execution Quantity 

order instructions, which is functionally identical 

to the BZX Minimum Quantity Order. 

22Orders will only post to the BZX Book if they 

are designated with a TIF instruction that allows for 

posting. For example, an order with a TIF of IOC 

or FOK will never post to the BZX Book. 23See Exchange Rule 11.9(c)(1). 

Order being posted to the BZX Book 

with a minimum quantity restriction of 

300 shares. 

The proposed new optional 

functionality will not allow aggregation 

of smaller executions to satisfy the 

minimum quantity of an incoming 

Minimum Quantity Order. Using the 

same scenario as above, but with the 

proposed new functionality and a 

minimum quantity requirement of 400 

shares selected by the User, the 

Minimum Quantity Order would not 

execute against the two sell orders 

because the 300 share order with time 

priority at the top of the BZX Book is 

less than the incoming order’s 400 share 

Minimum Execution Quantity [sic]. The 

new functionality will cause the 

Minimum Quantity Order to be 

cancelled or posted to the BZX Book, 

non-displayed, in accordance with the 

characteristics of the underlying order 

type 18 when encountering an order with 

time priority that is of insufficient size 

to satisfy the minimum execution 

requirement. If posted, the Minimum 

Quantity Order will operate as it does 

currently and will only execute against 

individual orders that satisfy its 

minimum quantity as proposed herein. 

The Exchange notes that the User 

entering the Minimum Quantity Order 

has expressed its intention not to 

execute against liquidity below a certain 

minimum size, and therefore, cedes 

execution priority when it would lock 

an order against which it would 

otherwise execute if it were not for the 

minimum execution size restriction. 

The Exchange proposes to add language 

to paragraph (c)(5) of Rule 11.9 to make 

clear that the order would cede 

execution priority in such in [sic] 

scenario. 

As amended, the description of a 

Minimum Quantity Order under 

paragraph (c)(5) of Exchange Rule 11.9 

would set forth the default behavior of 

Minimum Quantity Orders that execute 

upon entry against a single order or 

multiple aggregated orders 

simultaneously. Amended Rule 

11.9(c)(5) would set forth the proposed 

optional functionality where a User may 

alternatively specify that the incoming 

order’s minimum quantity condition be 

satisfied by each order resting on the 

BZX Book that would execute against 

the order with the minimum quantity 

condition. If there are such orders, but 

there are also orders that do not satisfy 

the minimum quantity condition, the 

incoming Minimum Quantity Order will 

execute against orders resting on the 

BZX Book in accordance with Rule 

11.12, Priority of Orders, until it reaches 

an order that does not satisfy the 

minimum quantity condition at which 

point it would be posted to the BZX 

Book or cancelled in accordance with 

the terms of the order. If, upon entry, 

there are no orders that satisfy the 

minimum quantity condition resting on 

the BZX Book, the order will either be 

posted to the BZX Book or cancelled in 

accordance with the terms of the order. 

The Exchange also proposes to reprice incoming Minimum Quantity 

Orders where that order may cross an 

order posted on the BZX Book. 

Specifically, where there is insufficient 

size to satisfy an incoming order’s 

minimum quantity condition and that 

incoming order, if posted at its limit 

price, would cross an order(s) resting on 

the BZX Book, the order with the 

minimum quantity condition will be repriced to and ranked at the locking 

price. For example, an order to buy at 

$11.00 with a minimum quantity 

condition of 500 shares is entered and 

there is an order resting on the BZX 

Book to sell 200 shares at $10.99. The 

resting order to sell does not contain 

sufficient size to satisfy the incoming 

order’s minimum quantity condition of 

500 shares. The price of the incoming 

buy order, if posted to the BZX Book, 

would cross the price of the resting sell 

order. In such case, to avoid an 

internally crossed book, the System will 

re-price the incoming buy order to 

$10.99, the locking price. This behavior 

is similar to how the Exchange currently 

reprices non-displayed orders that cross 

the Protected Quotation of an external 

market.19 In addition, both the Investors 

Exchange, Inc. (‘‘IEX’’) and the Nasdaq 

Stock Market LLC (‘‘Nasdaq’’) also reprice similar orders to avoid an 

internally crossed book.20

Second, the Exchange proposes to add 

language to the description of Minimum 

Quantity Orders to further describe their 

current operation on BZX and to 

harmonize the rule with that of its 

affiliate, EDGX, as described in EDGX 

Rule 11.6(h).21 The Exchange does not 

propose to implement new or unique 

functionality that has not been 

previously filed with the Commission or 

is not available on EDGX. The Exchange 

notes that the proposed rule text is 

based on BZX rules and is different only 

to the extent necessary to conform to the 

Exchange’s current rules. The Exchange 

notes that, but for the proposed changes 

discussed above, the current operation 

of Minimum Quantity Orders on the 

Exchange and the Minimum Execution 

Quantity instruction on EDGX is 

identical. 

The Exchange, therefore, proposes to 

amend the description of the Minimum 

Execution Quantity [sic] instruction to 

clarify its operation upon order entry 

and when the order is posted to the BZX 

Book. The Exchange proposes to clarify 

that upon entry, and by default, an order 

with a Minimum Execution Quantity 

[sic] will execute against a single order 

or multiple aggregated orders 

simultaneously. A User may also specify 

that the order only against [sic] orders 

that individually satisfy the order’s 

minimum quantity condition, as 

proposed herein. Once posted to the 

BZX Book,22 the order may only execute 

against individual incoming orders with 

a size that satisfies the minimum 

quantity condition. Any shares 

remaining after a partial execution will 

continue to be executed at a size that is 

equal to or exceeds the quantity 

provided in the instruction. Where the 

number of shares remaining after a 

partial execution are [sic] less than the 

quantity provided in the order, the 

Minimum Quantity Order shall be equal 

to the number of shares remaining. The 

Exchange also proposed to clarify that a 

Minimum Quantity Order is not eligible 

to be routed to another Trading Center 

in accordance with Exchange Rule 

11.13, Order Execution and Routing. 

These proposed changes would provide 

additional specificity to the operation of 

Minimum Quantity Orders and would 

harmonize the rule with the description 

of the Minimum Execution Quantity 

instruction under EDX [sic] Rule 

11.6(h). 

Exchange Rule 11.9(e)(3), Replace 

Messages 

The Exchange also proposes to amend 

paragraph (e)(3) of Rule 11.9 to make 

certain clarifying, non-substantive 

changes. The proposed change would 

harmonize the description of Replace 

messages under Exchange Rule 

11.9(e)(3) with EDGX Rule 11.10(e)(3). 

Exchange Rule 11.9(e)(3) currently 

states that other than changing a limit 

order to a market order, only the price, 

stop price, the sell long or sell short 

indicator, Max Floor 23 of a Reserve 

Order [sic], and quantity terms of the 

order may be changed with a Replace 

message. If a User desires to change any 


sradovich on DSK3GMQ082PROD with NOTICES
47068 Federal Register / Vol. 82, No. 194 / Tuesday, October 10, 2017 / Notices 

24 15 U.S.C. 78f(b). 

25 15 U.S.C. 78f(b)(5). 

26See supra note 5. 

27See Exchange Rule 11.9(a)(1). 

28For example, the BZX Post Only Order. See 

Exchange Rule 11.9(c)(6). 

29As noted, the proposal is designed to attract 

liquidity to the Exchange by allowing market 

participants to designate a minimum size of a 

contra-side order to interact with, thus providing 

them with functionality available to them on dark 

markets. 

30See Nasdaq Rule 4703(e) (defining Minimum 

Quantity). See also Securities Exchange Act Release 

No. 73959 (December 30, 2014), 80 FR 582 (January 

6, 2015) (order approving new optional 

functionality for Minimum Quantity Orders). See 

IEX Rule 11.190(b)(11) and Supplementary Material 

.03 (defining Minimum Quantity Orders and 

MinExec with Cancel Remaining and MinExec with 

AON Remaining). 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 Minimum 

Quantity Orders). See also IEX Rule 11.190(d)(3) 

(allowing the minimum quantity size of an order to 

be changed via a replace message). 

31See supra note 5. 

32See BZX Rule 11.9(g)(4). 

33See Nasdaq Rule 4703(e). 

34See IEX Rule 11.190(h)(2). 

other terms of an existing order, the 

existing order must be cancelled and a 

new order must be entered. As 

amended, paragraph (e)(3) of Rule 11.9 

would specify that the Max Floor is 

associated with a Reserve Order and to 

replace the phrase ‘‘and quantity terms’’ 

with the word ‘‘size’’. The Exchange 

believes these changes will provide 

additional specificity to the rule and 

ensure the rule uses terminology 

consistent with the description of 

Replace messages and their impact on 

an order’s priority under Exchange Rule 

11.12(a)(4). 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 24 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 25

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. 

Exchange Rule 11.6(h), Proposed 

Individual Minimum Size 

The proposed rule change would 

remove impediments to and promote 

just and equitable principles of trade 

because it would provide Users with 

optional functionality that enhances the 

use of the Minimum Execution Quantity 

[sic] instruction. These proposed 

amendments are identical to changes 

recently proposed by EDGX that were 

published by the Commission for 

immediate effectiveness.26 The 

proposed change to the functioning of 

Minimum Quantity Orders will provide 

market participants, including 

institutional firms who ultimately 

represent individual retail investors in 

many cases, with better control over 

their orders, thereby providing them 

with greater potential to improve the 

quality of their order executions. 

Currently, the rule allows Users to 

designate a minimum acceptable 

quantity on an order that may aggregate 

multiple executions to meet the 

minimum quantity requirement. Once 

posted to the book, however, the 

minimum quantity requirement is 

equivalent to a minimum execution size 

requirement. The Exchange is now 

proposing to provide Users with control 

over the execution of their Minimum 

Quantity Orders by allowing them an 

option to designate the minimum 

individual execution size upon entry. 

The control offered by the proposed 

change is consistent with the various 

types of control currently provided by 

exchange order types. For example, the 

Exchange and other exchanges offer 

limit orders, which allow a market 

participant control over the price it will 

pay or receive for a stock.27 Similarly, 

exchanges offer order types that allow 

market participants to structure their 

trading activity in a manner that is more 

likely to avoid certain transaction cost 

related economic outcomes.28

As discussed above, the functionality 

proposed herein would enable Users to 

avoid transacting with smaller orders 

that they believe ultimately increases 

the cost of the transaction. Because the 

Exchange does not have this 

functionality, market participants, such 

as large institutions that transact a large 

number of orders on behalf of retail 

investors, have avoided sending large 

orders to the Exchange to avoid 

potentially more expensive 

transactions.29 In this regard, the 

Exchange notes that the proposed new 

optional functionality may improve the 

Exchange’s market by attracting more 

order flow. Such new order flow will 

further enhance the depth and liquidity 

on the Exchange, which supports just 

and equitable principals of trade. 

Furthermore, the proposed modification 

to Minimum Quantity Orders is 

consistent with providing market 

participants with greater control over 

the nature of their executions so that 

they may achieve their trading goals and 

improve the quality of their executions. 

Moreover, the proposed optional 

functionality for Minimum Quantity 

Orders is also substantially similar to 

that offered by Nasdaq and IEX, both of 

which have been recently approved by 

the Commission.30

The Exchange also believes that repricing incoming Minimum Quantity 

Orders where they may cross an order 

posted on the BZX Book promotes just 

and equitable principles of trade 

because it enables the Exchange to avoid 

an internally crossed book. The 

proposed re-pricing is identical to how 

EDGX reprices orders with a Minimum 

Quantity instruction 31 and is similar to 

how BZX reprices non-displayed orders 

that cross an external market.32 In 

addition, both IEX and Nasdaq also reprice minimum quantity orders to avoid 

an internally crossed book. In certain 

circumstances, Nasdaq re-prices buy 

(sell) orders to one minimum price 

increment below (above) the lowest 

(highest) price of such orders.33 IEX reprices non-displayed orders, such as 

minimum quantity orders, that include 

a limit price more aggressive than the 

midpoint of the NBBO to the midpoint 

of the NBBO.34

In addition, the additional proposed 

changes to the description of Minimum 

Quantity Orders would better align 

Exchange rules and system functionality 

with identical functionality and rules on 

its affiliate, EDGX. Consistent 

descriptions of identical functionality 

between the Exchange and EDGX will 

reduce complexity and avoid potential 

investor confusion. The proposed rule 

changes do not propose to implement 

new or unique functionality that has not 

been previously filed with the 

Commission or is not available on 

EDGX. The Exchange notes that the 

proposed rule text is based on 

applicable BZX rules; the proposed 

language of the Exchange’s Rules differs 

only to extent necessary to conform to 

existing Exchange rule text or to account 

for details or descriptions included in 

the Exchange’s Rules. 

Clarification to Exchange Rule 11.9(e)(3) 

The Exchange believes the proposed 

amendments to paragraph (e)(3) of Rule 

11.9 are also consistent with the Act in 

that they will provide additional 

specificity to the rules. In particular, the 

amendments to paragraph (e)(3) of Rule 

11.10 [sic] will ensure the rule uses 

terminology consistent with the 

description of Replace messages and 

their impact on an order’s priority under 

Exchange Rule 11.12(a)(4). Also, the 

Exchange notes that the proposed 

change would harmonize the 

description of Replace messages under 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 194 / Tuesday, October 10, 2017 / Notices 47069 

35See supra note 30. 

36 15 U.S.C. 78s(b)(3)(A). 

37 17 CFR 240.19b–4. 38 17 CFR 200.30–3(a)(12). 

Exchange Rule 11.9(e)(3) with EDGX 

Rule 11.10(e)(3). 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

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 

substantially similar to that offered by 

Nasdaq and IEX.35 In addition, the 

proposed amendments to paragraph 

(e)(3) of Rule 11.10 [sic] would not have 

any impact on competition as they 

simply provide additional details to the 

rule and do not alter current System 

functionality. 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 36 and paragraph (f)(6) of Rule 19b– 

4 thereunder.37 As required by Rule 

19b–4(f)(6)(iii), 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– 

BatsBZX–2017–62 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–BatsBZX–2017–62. 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– 

BatsBZX–2017–62, and should be 

submitted on or before October 31, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.38

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–21674 Filed 10–6–17; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15338 and #15339; 

Georgia Disaster Number GA–00101] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of Georgia 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Georgia (FEMA–4338–DR), 

dated 09/28/2017. 

Incident: Hurricane Irma. 

Incident Period: 09/07/2017 through 

09/20/2017. 

DATES: Issued on 09/28/2017. 

Physical Loan Application Deadline 

Date: 11/27/2017. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/28/2018. 

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: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

09/28/2017, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications at the 

address listed above or other locally 

announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Appling, Atkinson, 

Bacon, Baker, Baldwin, Banks, 

Barrow, Ben Hill, Berrien, Brantley, 

Brooks, Bryan, Bulloch, Burke, 

Butts, Calhoun, Camden, Candler, 

Charlton, Chatham, Clay, Coffee, 

Colquitt, Cook, Coweta, Crawford, 


sradovich on DSK3GMQ082PROD with NOTICES