Document ID: SEC-2015-0215-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc.
Posted Date: 2015-02-04T05:00Z

[Federal Register Volume 80, Number 23 (Wednesday, February 4, 2015)]
[Notices]
[Pages 6144-6145]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02107]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74173; File No. SR-BATS-2015-06]

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

January 29, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 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. Changes to the fee schedule pursuant to this proposal are 
effective upon filing.
    The text of the proposed rule change is available at the Exchange's 
Web site at http://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\ and October 16, 2014.\7\ The Exchange proposes to modify Rule 
14.13, entitled ``Company Listing Fees,'' to modify how the Exchange 
administers the billing of the application fee applicable to the 
listing of ETPs to more closely align with the Exchange's typical 
billing cycle, which is administered on a monthly basis. Currently, the 
issuer of an ETP is required to pay the $5,000 application fee to the 
Exchange with the application to list the ETP on the Exchange. The 
Exchange is proposing to amend the language in Rule 14.13(b)(1)(C) such 
that the application fee for ETPs becomes billable to the issuer for 
the month during which the ETP is first listed on the Exchange. As 
proposed, instead of requiring the Exchange to take payment without 
issuing any bill, the Exchange would bill application fees to issuers 
on a monthly basis, which is in line with how the Exchange applies most 
other aspects of its billing. The Exchange notes that it is not 
proposing to amend the $5,000 application fee for ETPs.
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    \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)
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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

[[Page 6145]]

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.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed changes are a reasonable, 
equitable, and non-discriminatory allocation of fees to issuers because 
the proposal is designed only to amend the timing and method with which 
issuers are billed for the application fee for ETPs and not to make any 
changes to the amount of the $5,000 application fee. Further, the 
proposal will benefit all ETP issuers because it will allow them to pay 
their application fee at a later date than they are required to pay the 
application fee today. The Exchange also notes that the proposed 
changes will apply equally to all issuers that list ETPs on the 
Exchange. Based on the foregoing, the Exchange believes that the 
proposed amendment to the billing associated with application fees for 
ETPs 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 billing method for the application fee 
related to 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 pay their 
application fees after an ETP is already listed and trading on the 
Exchange instead of requiring the issuer to pay the application fee 
upon submission of their application. As such, the proposal is a 
competitive proposal that is intended to make the Exchange a more 
attractive venue for 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\10\ and paragraph (f) of Rule 19b-4 
thereunder.\11\ 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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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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-BATS-2015-06 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-2015-06. 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 also will be available 
for inspection and copying at the principal offices 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-2015-06, 
and should be submitted on or before February 25, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-02107 Filed 2-3-15; 8:45 am]
BILLING CODE 8011-01-P