49904 Federal Register / Vol. 82, No. 207 / Friday, October 27, 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). 

4 17 CFR 240.19b–4(f)(6). 

5See Exchange Rule 11.6(h) (describing the 

operation of the Minimum Execution Quantity 

order instruction). 

6See BYX Rule 11.9(e)(3), BZX Rule 11.9(e)(3), 

and EDGA Rule 11.10(e)(3). 

7See supra note 6. 

8The 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(ee). 

9The term ‘‘Non-Displayed’’ is defined as ‘‘[a]n 

instruction the User may attach to an order stating 

that the order is not to be displayed by the System 

on the EDGX Book.’’ See Exchange Rule 11.6(e)(2). 

10The 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(cc). 

11See Exchange Rules 11.8(a)(1) and (b)(1). 

12See Exchange Rule 11.6(o). 

13See Exchange Rule 11.6(m)(1). 

14See Securities Exchange Act Release No. 81457 

(August 22, 2017), 82 FR 40812 (August 28, 2017) 

(SR-BatsEDGX–2017–34). 

15While the rule change became operative on 

September 11, 2017 and the Exchange’s rules were 

then updated to reflect the change, no Member has 

attempted to change an order’s Minimum Execution 

Quantity via a Replace message. 

16See supra note 6. 

17 15 U.S.C. 78f(b). 

18 15 U.S.C. 78f(b)(5). 

19See supra note 6. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81923; File No. SR– 

BatsEDGX–2017–38] 

Self-Regulatory Organizations; Bats 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

11.10, Order Execution 

October 23, 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 October 

10, 2017, Bats EDGX Exchange, Inc. (the 

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

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6) 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 

amend Rule 11.10, Order Execution, to 

remove language allowing a change to 

the minimum quantity of an order with 

a Minimum Execution Quantity 5

instruction to be included in a Replace 

message. The proposed amendments 

would harmonize the rule with the rules 

of its affiliate exchanges, Bats BYX 

Exchange, Inc. (‘‘BYX’’), Bats BZX 

Exchange, Inc. (‘‘BZX’’), and Bats EDGA 

Exchange, Inc. (‘‘EDGA’’).6

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 remove 

language allowing a change to the 

minimum quantity of an order with a 

Minimum Execution Quantity 

instruction to be included in a Replace 

message. The proposed amendments 

would harmonize the rule with the rules 

of its affiliate exchanges, BYX, BZX, and 

EDGA.7

A Minimum Execution Quantity 

enables a User 8 to specify a minimum 

share amount at which the order will 

execute. An order with a Minimum 

Execution Quantity will not execute 

unless the volume of contra-side 

liquidity available to execute against the 

order meets or exceeds the designated 

minimum. Specifically, Minimum 

Execution Quantity is an instruction a 

User may attach to an order with a NonDisplayed 9 instruction or a TIF of IOC 

requiring the System 10 to execute the 

order only to the extent that a minimum 

quantity can be satisfied by execution 

against a single order or multiple 

aggregated orders simultaneously. An 

order with a Minimum Execution 

Quantity will execute upon entry 

against a single order or multiple orders 

if the sum of those orders is equal to or 

greater than its minimum quantity. 

Alternatively, a User may elect that an 

incoming order with a Minimum 

Execution Quantity to forego executions 

where multiple resting orders could 

otherwise be aggregated to satisfy the 

order’s minimum quantity but do not 

individually satisfy the order’s 

minimum quantity instruction. 

Paragraph (e)(3) of Rule 11.10 states 

that other than changing a Limit Order 

to a Market Order, only the price, Stop 

Price,11 the sell long indicator, Short 

Sale instruction,12 Max Floor 13 of an 

order with a Reserve Quantity, size of 

the order, and the minimum quantity of 

a Minimum Execution Quantity 

instruction may be changed with a 

Replace message. The Exchange recently 

proposed to amend paragraph (e)(3) of 

Rule 11.10, Order Execution, to allow a 

change to the minimum quantity of an 

order with a Minimum Execution 

Quantity instruction to be included in a 

Replace message.14 However, this 

functionality was never implemented 

and the Exchange now proposes to 

remove this language from its rule.15

Removal of this language would, 

therefore, not result in a change in 

functionality. The proposal would also 

harmonize the rule with the rules of its 

affiliate exchanges, BYX, BZX, and 

EDGA.16

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 17 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 18

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 Exchange believes 

the proposed amendment to paragraph 

(e)(3) of Rule 11.10 is consistent with 

the Act in that it will clarify the rule by 

removing language that reflects 

functionality not offered by the 

Exchange, thereby avoiding any 

potential investor confusion. The 

proposed amendments would also 

harmonize the rule with the rules of its 

affiliate exchanges, BYX, BZX, and 

EDGA,19 thereby ensuring consistent 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Notices 49905 

20 15 U.S.C. 78s(b)(3)(A)(iii). 

21 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

22 17 CFR 240.19b–4(f)(6)(iii). 

23For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

24 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). 

rules amongst the Exchange and its 

affiliates. 

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. 

The proposed amendment to paragraph 

(e)(3) of Rule 11.10 would not have any 

impact on competition as it simply 

clarifies the rule by removing language 

that reflects functionality not offered by 

the Exchange. 

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 (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 20 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.21

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of its filing. However, Rule 19b– 

4(f)(6)(iii) 22 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposed rule change 

will become operative upon filing. The 

Exchange stated that such waiver would 

enable the Exchange to immediately 

clarify its rule by removing language 

that reflects functionality not offered by 

the Exchange, and thereby avoid any 

potential investor confusion. The 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because it would enable 

the Exchange to update its rule without 

delay. Therefore, the Commission 

hereby waives the operative delay and 

designates the proposed rule change 

operative upon filing.23

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change 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– 

BatsEDGX–2017–38 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–BatsEDGX–2017–38. 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. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–BatsEDGX–2017–38, and 

should be submitted on or before 

November 17, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23376 Filed 10–26–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81919; File No. SRBatsBZX–2017–68] 

Self-Regulatory Organizations; Bats 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change to Rule 21.1, 

Definitions, To Modify Stop Orders and 

Stop Limit Orders Applicable to the 

Exchange’s Equity Options Platform in 

Preparation for the C2 Options 

Exchange, Incorporated Technology 

Migration 

October 23, 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 October 

10, 2017, Bats BZX Exchange, Inc. (the 

‘‘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 ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6)(iii) 


asabaliauskas on DSKBBXCHB2PROD with NOTICES