Document ID: SEC-2016-0933-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Bats BYX Exchange, Inc.
Posted Date: 2016-06-01T04:00Z

[Federal Register Volume 81, Number 105 (Wednesday, June 1, 2016)]
[Notices]
[Pages 35078-35079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12780]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77918; File No. SR-BatsBYX-2016-10]

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

May 25, 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 May 16, 2016, 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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) (``Fee Schedule'') to reinsert fee code PX, which was 
inadvertently deleted in its entirety in an earlier proposed rule 
change.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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
    On May 5, 2016, the Exchange amended Rule 11.13, Order Execution 
and Routing, to delete the IOCM and ICMT routing options.\6\ At that 
time, the Exchange also amended its Fee Schedule to delete: (i) 
References to the IOCM and ICMT routing options under footnote 8; and 
(ii) fee code PX, which was yielded on orders routed to Bats EDGX 
Exchange, Inc. (``EDGX'') to execute against MidPoint Peg Orders \7\ on 
EDGX using ICMT or IOCM routing options. Fee code PX is also yielded on 
orders routed using the RMPT routing option.\8\ In that filing, the 
Exchange inadvertently deleted fee code PX in its entirety when fee 
code PX should have only been amended to delete references to the IOCM 
and ICMT routing options.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 77790 (May 10, 
2016), 81 FR 30360 (May 16, 2016) (SR-BatsBYX-2016-06).
    \7\ See EDGX Rule 11.8(d).
    \8\ RMPT is a routing option under which a Mid-Point Peg Order 
checks the System for available shares and any remaining shares are 
then sent to destinations on the System routing table that support 
midpoint eligible orders. If any shares remain unexecuted after 
routing, they are posted on the BYX Book as a MidPoint Peg Order, 
unless otherwise instructed by the User. See Exchange Rule 
11.13(b)(3)(Q).
---------------------------------------------------------------------------

    The Exchange now proposes to reinsert fee code PX, less the 
references to the ICMT and IOCM routing options. The reinserted langue 
would state that fee code PX is yielded on orders routing using the 
RMPT routing option. Orders that yield fee code PX in securities priced 
at or above $1.00 are charged a fee of $0.00120 per share and orders in 
securities priced below $1.00 are changed a fee of 0.29% charge of the 
order's total dollar value. The proposed rates for fee code PX are 
identical to that which was included in the Fee Schedule prior to May 
10, 2016.
    The Exchange proposes to implement the proposed rule change 
immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4),\10\ 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 its proposed rates represent an 
equitable allocation of reasonable dues, fees, and other charges among 
Members and other persons using its facilities because it is designed 
to reinsert fee code PX, which was inadvertently deleted in an earlier 
rule filing. The Exchange does not believe that this change represents 
a significant departure from previous pricing offered by the Exchange, 
as fee code PX will continue to be yielded on orders that utilize the 
RMPT routing option and will be charged the same rates as set forth in 
the Fe Schedule prior to its mistaken deletion. Furthermore, the 
Exchange notes that routing through the Exchange and utilizing fee code 
PX is voluntary. Lastly, the Exchange also believes that the proposed 
amendment is non-discriminatory because it applies uniformly to all 
Members.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 the proposed rule change will 
impose any burden on competition as it is simply designed to reinsert 
fee code PX, which was that was inadvertently deleted in an earlier 
rule filing.

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)

[[Page 35079]]

of the Act \11\ and paragraph (f) of Rule 19b-4 thereunder.\12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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 No. SR-BatsBYX-2016-10 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 No. SR-BatsBYX-2016-10. 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 No. SR-BatsBYX-2016-10, and should be 
submitted on or before June 22, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-12780 Filed 5-31-16; 8:45 am]
BILLING CODE 8011-01-P