Document ID: SEC-2015-0953-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc.
Posted Date: 2015-06-05T04:00Z

[Federal Register Volume 80, Number 108 (Friday, June 5, 2015)]
[Notices]
[Pages 32190-32191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13722]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75085; File No. SR-BATS-2015-39]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule To Amend Fees 
Applicable to Securities Listed on BATS Exchange, Inc. Pursuant to BATS 
Rule 14.13

June 1, 2015.
    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 May 22, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') 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 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fees applicable to 
securities listed on the Exchange pursuant to BATS Rule 14.13. Changes 
to the Exchange's fees pursuant to this proposal are effective upon 
filing.
    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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    On August 30, 2011, the Exchange received approval of rules 
applicable to the qualification, listing, and delisting of companies on 
the Exchange,\3\ which it modified on February 8, 2012 in order to 
adopt pricing for the listing of exchange traded products (``ETPs'') 
\4\ on the Exchange,\5\ which it subsequently modified again on June 4, 
2014.\6\ On October 16, 2014, the Exchange modified Rule 14.13, 
entitled ``Company Listing Fees'' to eliminate the annual fees for ETPs 
that are not participating in the competitive liquidity provider 
program under Interpretation and Policy .02 to Rule 11.8, but did not 
eliminate the $5,000 application fee for ETPs.\7\ The Exchange is now 
proposing to eliminate the $5,000 application fee for all ETPs, which 
would eliminate all compulsory fees for both new ETP issues and 
transfer listings in ETPs on the Exchange.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 65225 (August 30, 
2011) 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
    \4\ As defined in BATS Rule 11.8(e)(1)(A), the term ``ETP'' 
means any security listed pursuant to Exchange Rule 14.11.
    \5\ See Securities Exchange Act Release No. 66422 (February 17, 
2012) 77 FR 11179 (February 24, 2012) (SR-BATS-2012-010).
    \6\ See Securities Exchange Act Release No. 72377 (June 12, 
2014) 79 FR 34822 (June 18, 2014) (SR-BATS-2014-024).
    \7\ See Securities Exchange Act Release No. 73414 (October 23, 
2014) 79 FR 64434 (October 29, 2014) (SR-BATS-2014-050).

---------------------------------------------------------------------------

[[Page 32191]]

    Specifically, the Exchange is proposing that issuers that submit an 
application to list any ETP on the Exchange shall pay no application 
fee to the Exchange. Currently, Rule 14.13(b)(1)(C) provides that any 
ETP shall pay to the Exchange a fee of $5,000 which represents a non-
refundable application fee that will be billed to the Company in the 
month that the ETP is listed on the Exchange.
    The Exchange proposes to implement the amendments to Rule 
14.13(b)(1)(C) effective immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6 of the Act.\8\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) and 6(b)(5) of the Act,\9\ in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among issuers and it does not unfairly discriminate 
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange is proposing to eliminate the application fee for ETPs 
that list on the Exchange, which will eliminate all compulsory fees for 
new issuers and transfer listings in ETPs, which the Exchange believes 
is equitable, reasonable, and non-discriminatory because the absence of 
required fees for listings will be applied equally to all ETPs, both 
new listings and transfers. The Exchange notes that those ETPs that 
elect to participate in the CLP Program under Interpretation and Policy 
.03 to Rule 11.8 may still choose to pay between $5,000 and $100,000 in 
the form of a CLP Fee,\10\ however such fees are entirely optional. The 
Exchange believes that continuing to charge a CLP Fee for ETPs that 
participate in the CLP Program is equitable and non-discriminatory 
because the CLP Fee is the exact same amount as the total annual CLP 
Rebates \11\ available to ETP CLPs \12\ in a given CLP Security.\13\ 
Further, ETPs participating in the CLP Program may opt out of the CLP 
Program at any time in order to be eligible for having no listing fees.
---------------------------------------------------------------------------

    \10\ As defined in paragraph (a) of Interpretation and Policy 
.03 to Rule 11.8.
    \11\ As defined in paragraph (a) of Interpretation and Policy 
.03 to Rule 11.8.
    \12\ As defined in paragraph (b)(1) of Interpretation and Policy 
.03 to Rule 11.8.
    \13\ As defined in paragraph (b)(3) of Interpretation and Policy 
.03 to Rule 11.8.
---------------------------------------------------------------------------

    Based on the foregoing, the Exchange believes that its proposed 
elimination of the application fee for ETPs (and thereby all compulsory 
listing fees) that are not participating in the CLP Program is a 
reasonable, equitable, and non-discriminatory allocation of fees to 
issuers.

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. With 
respect to the proposed new pricing for the listing of ETPs, the 
Exchange does not believe that the changes burden competition, but 
instead, enhance competition, as it is intended to increase the 
competitiveness of the Exchange's listings program by allowing the 
Exchange to offer ETPs the ability to list on the Exchange without 
having to pay any initial or annual fees. As such, the proposal is a 
competitive proposal that is intended to attract additional ETP 
listings, which will, in turn, benefit the Exchange and all other BATS-
listed ETPs.

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 \14\ and Rule 19b-4(f)(2) thereunder.\15\ 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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-BATS-2015-39 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-BATS-2015-39. 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 such filing will also 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-BATS-2015-39 and should be 
submitted on or before June 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-13722 Filed 6-4-15; 8:45 am]
 BILLING CODE 8011-01-P