Document ID: SEC-2016-2028-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Bats EDGA Exchange, Inc.
Posted Date: 2016-11-18T05:00Z

[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81832-81833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27743]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79305; File No. SR-BatsEDGA-2016-26]

Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change Related 
to Fees for Use of Bats EDGA Exchange, Inc.

November 14, 2016.
    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 November 1, 2016, 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 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.
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    \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).
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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 EDGA Rules 
15.1(a) and (c).
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    \5\ The 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).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fee Schedule to: (i) Delete 
references to the ROOC routing strategy, which was previously, removed 
from the Exchange's rulebook; \6\ and (ii) increase the fees associate 
for orders in securities priced at or above $1.00 that yield fee codes 
RT, RX, or Z.
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    \6\ See Securities Exchange Act Release N. 75550 (July 29, 
2015), 80 FR 46363 (August 4, 2015) (SR-EDGA-2015-28). See also BATS 
EDGA Exchange and BYX Exchange Decommissioning ROOC Effective August 
10, 2015, available at http://cdn.batstrading.com/resources/release_notes/2015/BATS-EDGA-Exchange-and-BYX-Exchange-Decommissioning-ROOC-Effective-August-10-2015.pdf.
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Deletion of References to the ROOC Routing Strategy
    The Exchange previously submitted a proposed rule change for 
immediate effectiveness to discontinue the ROOC routing strategy and to 
remove references to the ROOC routing strategy from its rulebook.\7\ 
The Exchange now proposes to delete three references to the ROOC 
routing strategy from its Fee Schedule, as those associated rates and 
references have not been applicable since the Exchange discontinued the 
ROOC routing strategy. These changes are to delete:
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    \7\ Id. See also Securities Exchange Act Release No. 75550 (July 
29, 2015), 80 FR 4636 (August 4, 2015) (SR-EDGA-2015-28).
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     Fee code RN and its associate rates, which is appended to 
orders routed to the Nasdaq Stock Market LLC using the ROOC routing 
strategy and add liquidity.
     a reference to ROOC in fee code RT, which is appended to 
orders routed using the ROUT or ROOC routing strategy; and
     a reference to the ROOC routing strategy in footnote 12, 
which lists the routing strategies eligible for fee code CR.
Fee Codes RT, RX, and Z
    The Exchange also proposes to increase the fees associated with 
orders in securities priced at or above $1.00 that yield fee codes RT, 
RX, or Z.\8\ First the Exchange proposes to increase the fee for orders 
yielding fee code RT, which are routed using a ROUT \9\ or ROOC \10\ 
routing strategy, from $0.00250 to $0.00260 per share. Second, the 
Exchange proposes to increase the fee for orders yielding fee code RX, 
which are routed using a ROUX \11\ routing strategy, from $0.00270 to 
$0.00280 per share. Lastly, the Exchange proposes to increase the fee 
for orders yielding fee code Z, which are routed to a non-exchange 
destination using ROCO \12\ or ROUZ \13\ routing strategy, from 
$0.00100 to $0.00120 per share.
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    \8\ The Exchange does not propose to amend the fees for orders 
yielding fee codes RT, RX, or Z in securities priced below $1.00.
    \9\ See Exchange Rule 11.11(g)(3).
    \10\ The Exchange notes that it is deleting reference to the 
ROOC routing strategy in this filing. See also supra note 6.
    \11\ See Exchange Rule 11.11(g)(3).
    \12\ Id.
    \13\ Id.
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Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule November 1, 2016.

[[Page 81833]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\14\ in general, and 
furthers the objectives of Section 6(b)(4),\15\ 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.
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    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
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Deletion of References to the ROOC Routing Strategy
    The Exchange believes it is equitable, reasonable, and not unfairly 
discriminatory to delete references to the ROOC routing strategy from 
its Fee Schedule because it is removing reference and rates for a 
product that the Exchange no longer provides.\16\ The Exchange believes 
that the proposed changes will make the Fee Schedule clearer and 
eliminate potential investor confusion, thereby removing impediments to 
and perfecting the mechanism of a free and open market and a national 
market system, and, in general, protecting investors and the public 
interest.
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    \16\ See supra note 4.
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Fee Codes RT, RX, and Z
    The Exchange believes that its proposal to increase the fee for 
orders that yield fee codes RT, RX, or Z represents an equitable 
allocation of reasonable dues, fees, and other charges among Members 
and other persons using its facilities in that they are designed in 
part to cover the costs of routing. While the affected Members' orders 
will be charged higher fees due to the proposal, the increased revenue 
received by the Exchange will be used to fund the Exchange generally, 
including the cost of maintaining and improving the technology used to 
handle and route orders from the Exchange as well as programs that the 
Exchange believes help to attract additional liquidity and thus improve 
the depth of liquidity available on the Exchange. Accordingly, although 
the cost of routing is increasing, the Exchange believes that he 
increase is modest and that higher routing fees will benefit Members in 
other ways. Furthermore, the Exchange notes that routing through the 
Exchange is voluntary. Lastly, the Exchange also believes that the 
proposed amendment is non-discriminatory because it applies uniformly 
to all Members.

B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange does not believe that the changes to fee codes 
RT, RX, and Z represent a significant departure from previous pricing 
offered by the Exchange or from pricing offered by the Exchange's 
competitors. Additionally, 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. The Exchange 
believes that its proposal would not burden intramarket competition 
because the proposed rates 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 written comments from members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \17\ and paragraph (f) of Rule 19b-4 
thereunder.\18\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f).
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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-2016-26 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-2016-26. 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-2016-26, and should 
be submitted on or before December 9, 2016.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
Brent J. Fields,
Secretary.
[FR Doc. 2016-27743 Filed 11-17-16; 8:45 am]
 BILLING CODE 8011-01-P