Document ID: SEC-2015-2148-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.,
Posted Date: 2015-12-24T05:00Z

[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)]
[Notices]
[Pages 80432-80440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32388]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76692; File No. SR-BX-2015-081]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Regarding 
Fees and Rebates and Tiers Related to BX Options

December 18, 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 December 11, 2015, NASDAQ OMX BX, Inc. (``BX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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 proposes to amend its Options Pricing at Chapter XV 
Section 2, entitled ``BX Options Market--Fees and Rebates,'' which 
governs pricing for BX members using the BX Options Market (``BX 
Options''). The Exchange proposes to modify certain fees and rebates 
(per executed contract) and to adopt tiers applicable to fees and 
rebates (each a ``Tier'' and together the ``Tiers'').
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxbx.cchwallstreet.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

[[Page 80433]]

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 aspects 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 amend its Chapter XV, Section 2 to modify 
subsection (1) regarding certain fees and rebates \3\ (known as ``fees 
and rebates'') and to adopt Tiers applicable to certain fees and 
rebates. The proposed modified fees and rebates (per executed contract) 
and new Tiers would apply to Customers,\4\ BX Options Market Makers,\5\ 
and Non-Customers.\6\ One proposed new Tier schedule, consisting of 
three Tiers, would apply to Penny Pilot Options; and one proposed new 
Tier schedule, consisting of three Tiers, would apply to Non-Penny 
Pilot Options.\7\
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    \3\ Fees and rebates are per executed contract. Chapter XV, 
Section 2(1).
    \4\ The term ``Customer'' or (``C'') applies to any transaction 
that is identified by a Participant for clearing in the Customer 
range at The Options Clearing Corporation (``OCC'') which is not for 
the account of broker or dealer or for the account of a 
``Professional'' (as that term is defined in Chapter I, Section 
1(a)(48)). BX Chapter XV.
    \5\ BX Options Market Makers may also be referred to as ``Market 
Makers''. The term ``BX Options Market Maker'' or (``M'') means a 
Participant that has registered as a Market Maker on BX Options 
pursuant to Chapter VII, Section 2, and must also remain in good 
standing pursuant to Chapter VII, Section 4. In order to receive 
Market Maker pricing in all securities, the Participant must be 
registered as a BX Options Market Maker in at least one security.
    \6\ Note 1 to Chapter XV, Section 2 states: ``\1\A Non-Customer 
includes a Professional, Firm, Broker-Dealer and Non-BX Options 
Market Maker.''
    \7\ The Penny Pilot was established in June 2012 and extended in 
2015. See Securities Exchange Act Release Nos. 67256 (June 26, 
2012), 77 FR 39277 (July 2, 2012) (SR-BX-2012-030) (order approving 
BX option rules and establishing Penny Pilot); and 75326 (June 29, 
2015), 80 FR 38481 (July 6, 2015) (SR-BX-2015-037) (notice of filing 
and immediate effectiveness extending the Penny Pilot through June 
30, 2016).
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    Currently, Chapter XV, Section 2 subsection (1) reads as follows:
Sec. 2 BX Options Market--Fees and Rebates
    The following charges shall apply to the use of the order execution 
and routing services of the BX Options market for all securities.
(1) Fees for Execution of Contracts on the BX Options Market

                                                Fees and Rebates
                                             [Per executed contract]
----------------------------------------------------------------------------------------------------------------
                                                                                  BX Options
                                                                   Customer      Market Maker   Non-Customer \1\
----------------------------------------------------------------------------------------------------------------
Penny Pilot Options:
    Rebate to Add Liquidity...................................       \2\ $0.00       \2\ $0.10               N/A
    Fee to Add Liquidity......................................        \3\ 0.39        \3\ 0.39             $0.45
    Rebate to Remove Liquidity................................            0.34             N/A               N/A
    Fee to Remove Liquidity...................................             N/A            0.46              0.46
Non-Penny Pilot Options:
    Fee to Add Liquidity......................................  \5\ 0.25/$0.85  \5\ 0.50/$0.85              0.88
    Rebate to Remove Liquidity................................            0.70             N/A               N/A
    Fee to Remove Liquidity...................................             N/A            0.89              0.89
----------------------------------------------------------------------------------------------------------------
\1\ A Non-Customer includes a Professional, Firm, Broker-Dealer and Non-BX Options Market Maker.
\2\ The Rebate to Add Liquidity will be paid to a Customer or BX Options Market Maker only when the Customer or
  BX Options Market Maker is contra to a Non-Customer or BX Options Market Maker.
\3\ The Fee to Add Liquidity will be assessed to a Customer or BX Options Market Maker only when the Customer or
  BX Options Market Maker is contra to a Customer.
\4\ Reserved
\5\ The higher Fee to Add Liquidity will be assessed to a Customer or BX Options Market Maker only when the
  Customer or BX Options Market Maker is contra to a Customer.

    The Exchange proposes modifications to its fees and rebates for 
Penny Pilot Options and for Non-Penny Pilot Options as follows: \8\
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    \8\ The greatest volume options traded on the Exchange and in 
the options market are Penny Pilot Options, and the Exchange has 
taken this into account when structuring and modifying its fee and 
rebate schedule.
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    Change 1. For Penny Pilot Options, the Exchange proposes to modify 
fees and rebates to add Tiers for: (1) Customer Rebates to Add 
Liquidity; (2) Customer Fees to Add Liquidity; (3) Customer Rebates to 
Remove Liquidity; and (4) BX Options Market Maker Fees to Remove 
Liquidity.
    Change 2. For Non-Penny Pilot Options, the Exchange proposes to 
modify fees and rebates to add Tiers for: (1) Customer Rebates to Add 
Liquidity; (2) Customer Fees to Add Liquidity; (3) Customer Rebates to 
Remove Liquidity; (4) BX Options Marker Maker Fees to Remove Liquidity. 
The Exchange also proposes to increase the Fee to Add Liquidity for BX 
Options Market Maker and for Non-Customer.
    Each specific change is described in detail below.
Change 1--Penny Pilot Options: Modify Fees and Rebates To Add Tiers
    For Penny Pilot Options, the Exchange is proposing to modify fees 
and rebates for Customer and BX Options Market Maker.\9\ Specifically, 
the Exchange is proposing to add Tiers for Rebate to Add Liquidity for 
Customer,\10\ Fee to Add Liquidity for Customer,\11\ and Rebate to 
Remove

[[Page 80434]]

Liquidity for Customer. The Exchange is also proposing to add Tiers for 
Fee to Remove Liquidity for BX Options Market Maker.\12\ The three new 
Tiers, described below, together make up the ``Penny Pilot Options Tier 
Schedule''.
---------------------------------------------------------------------------

    \9\ The Non-Customer Penny Pilot Options pricing will remain 
unchanged.
    \10\ The addition of Tiers to Rebate to Add Liquidity for 
Customer replaces the current fee [sic] ($0.00) and reference to 
note 2 which are removed. Note 2 will continue to apply to Rebate to 
Add Liquidity for BX Options Market Maker, but without reference to 
the note applying to a Customer. Today, Customers do not receive a 
Rebate to Add Liquidity.
    \11\ The addition of Tiers to Fee to Add Liquidity for Customer 
replaces the current fee ($0.39) and reference to note 3 which are 
removed. Note 3 will continue to apply to Fee to Add Liquidity for 
BX Options Market Maker, but without reference to the note applying 
to a Customer.
    \12\ The addition of tiers to the Fee to Remove Liquidity for 
the BX Options Market Maker replaces the current per contract fee of 
0.46.
---------------------------------------------------------------------------

    Proposed Tier 1 (``Penny Pilot Tier 1'') will be where a BX 
Participant (``Participant'') executes less than 0.05% of total 
industry customer equity and exchange traded fund (``ETF'') option 
average daily volume (``ADV'') contracts per month. Proposed Penny 
Pilot Tier 1 will range from $0.00 rebate to $0.46 fee:

--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.00 (no rebate will be paid);
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.39;``\13\
---------------------------------------------------------------------------

    \13\ For Penny Pilot Options, this $0.39 Fee to Add Liquidity 
when Customer trading with Customer is the same in all three Tiers.
---------------------------------------------------------------------------

--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.00;
--the Fee to Remove Liquidity when BX Market Maker trading with 
Customer will be $0.39; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.46.\14\
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    \14\ For Penny Pilot Options, this $0.46 Fee to Remove Liquidity 
when BX Options Market Maker trading with Non-Customer or BX Options 
Market Maker will be the same in all Tiers.

    Proposed Tier 2 (``Penny Pilot Tier 2'') will be where Participant 
executes 0.05% to less than 0.15% of total industry customer equity and 
ETF option ADV contracts per month. Proposed Penny Pilot Tier 2 will 
---------------------------------------------------------------------------
range from $0.10 rebate to $0.46 fee:

--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.10;
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.39;
--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.25;
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Customer will be $0.39; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.46.

    Proposed Tier 3 (``Penny Pilot Tier 3'') will be where Participant 
executes 0.15% or more of total industry customer equity and ETF option 
ADV contracts per month. Proposed Penny Pilot Tier 3 will range from 
$0.20 rebate to $0.46 fee:

--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.20;
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.39;
--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.35;
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Customer will be $0.30; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.46.
Change 2--Non-Penny Pilot Options: Modify Fees and Rebates To Add 
Tiers, Increase Fee To Add Liquidity
    For Non-Penny Pilot Options, the Exchange is proposing to modify 
fees and rebates for Customer, BX Options Market Maker, and Non-
Customer. Specifically, the Exchange is proposing to add Tiers for 
Rebate to Add Liquidity for Customer,\15\ Fee to Add Liquidity for 
Customer,\16\ and Rebate to Remove Liquidity for Customer.\17\ The 
Exchange is proposing to add Tiers for Fee to Remove Liquidity for BX 
Market Maker.\18\ The three new Tiers, described below, together make 
up the ``Non-Penny Pilot Options Tier Schedule''. The Exchange is also 
proposing a modest ten cent increase to the Fee to Add Liquidity for BX 
Options Market Maker from $0.50/$0.85 to $0.50/$0.95,\19\ and for Non-
Customer from $0.88 to $0.98.
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    \15\ The addition of Rebate to Add Liquidity of the Non-Penny 
Pilot Options part of the fees and rebates schedule is so that the 
Non-Penny and Penny parts of the schedule both have Rebate to Add 
Liquidity. The addition of Tiers to Rebate to Add Liquidity in the 
Non-Penny category applies to Customer only.
    \16\ The addition of Tiers to Fee to Add Liquidity for Customer 
replaces the current fee ($0.25/$0.85) and reference to note 5 which 
are taken out. Note 5 will continue to apply to Fee to Add Liquidity 
for BX Options Market Maker, but without reference to the note 
applying to a Customer. The Exchange notes that for Fee to Add 
Liquidity for Customer the Exchange is replacing a fee ($0.25/$0.85) 
with Tiers that include Fee to Add Liquidity as well as Rebate to 
Add Liquidity.
    \17\ The addition of Tiers to Rebate to Remove Liquidity for 
Customer replaces the current fee [sic] ($0.70) and reference to it 
is taken out.
    \18\ The addition of Tiers to Fee to Remove Liquidity for BX 
Options Market Maker replaces the current fee ($0.89) and reference 
to it is taken out.
    \19\ Per note 5 as modified, the higher Fee to Add Liquidity 
will be assessed to a BX Options Market Maker only when the BX 
Options Market Maker is contra to a Customer.
---------------------------------------------------------------------------

    Proposed Tier 1 (``Non-Penny Pilot Tier 1'') will be where 
Participant executes less than 0.05% of total industry customer equity 
and ETF option ADV contracts per month. Proposed Non-Penny Pilot Tier 1 
will range from $0.00 rebate to $0.89 fee:
--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.00 (no rebate will be paid);
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.85; \20\
---------------------------------------------------------------------------

    \20\ For Non-Penny Pilot Options, this $0.85 Fee to Add 
Liquidity when Customer trading with Customer is the same in all 
three Tiers.
---------------------------------------------------------------------------

--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.80;
--the Fee to Remove Liquidity when BX Market Maker trading with 
Customer will be $0.89; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.89.\21\
---------------------------------------------------------------------------

    \21\ For Non-Penny Pilot Options, this $0.89 Fee to Remove 
Liquidity when BX Options Market Maker trading with Non-Customer or 
BX Options Market Maker will be the same in all Tiers.

    Proposed Tier 2 (``Non-Penny Pilot Tier 2'') will be where 
Participant executes 0.05% to less than 0.15% of total industry 
customer equity and ETF option ADV contracts per month. Proposed Non-
---------------------------------------------------------------------------
Penny Pilot Tier 2 will range from $0.10 rebate to $0.89 fee:

--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.10;
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.85;
--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.80;
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Customer will be $0.89; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.89.

    Proposed Tier 3 (``Non-Penny Pilot Tier 3'') will be where 
Participant executes 0.15% or more of total industry customer equity 
and ETF option ADV contracts per month. Proposed Non-Penny Pilot Tier 3 
will range from $0.20 rebate to $0.89 fee:

[[Page 80435]]

--the Rebate to Add Liquidity when Customer trading with Non-Customer 
or BX Options Market Maker will be $0.20;
--the Fee to Add Liquidity when Customer trading with Customer will be 
$0.85;
--the Rebate to Remove Liquidity when Customer trading with Non-
Customer, BX Options Market Maker, or Customer will be $0.80;
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Customer will be $0.60; and
--the Fee to Remove Liquidity when BX Options Market Maker trading with 
Non-Customer or BX Options Market Maker will be $0.89.

    As proposed, Chapter XV, Section 2 subsection (1) will read as 
follows:
Sec. 2 BX Options Market--Fees and Rebates
    The following charges shall apply to the use of the order execution 
and routing services of the BX Options market for all securities.
(1) Fees for Execution of Contracts on the BX Options Market

                                                Fees and Rebates
                                             [Per executed contract]
----------------------------------------------------------------------------------------------------------------
                                                                                  BX Options
                                                                   Customer      Market Maker   Non-Customer \1\
----------------------------------------------------------------------------------------------------------------
Penny Pilot Options:
    Rebate to Add Liquidity...................................               #       \2\ $0.10               N/A
    Fee to Add Liquidity......................................               #        \3\ 0.39             $0.45
    Rebate to Remove Liquidity................................               #             N/A               N/A
    Fee to Remove Liquidity...................................             N/A               #              0.46
Non-Penny Pilot Options:
    Rebate to Add Liquidity...................................               *             N/A               N/A
    Fee to Add Liquidity......................................               *  \5\ 0.50/$0.95              0.98
    Rebate to Remove Liquidity................................               *             N/A               N/A
    Fee to Remove Liquidity...................................             N/A               *              0.89
----------------------------------------------------------------------------------------------------------------
\1\ A Non-Customer includes a Professional, Firm, Broker-Dealer and Non-BX Options Market Maker.
\2\ The Rebate to Add Liquidity will be paid to a BX Options Market Maker only when the BX Options Market Maker
  is contra to a Non-Customer or BX Options Market Maker.
\3\ The Fee to Add Liquidity will be assessed to a BX Options Market Maker only when the BX Options Market Maker
  is contra to a Customer.
\4\ Reserved.
\5\ The higher Fee to Add Liquidity will be assessed to a BX Options Market Maker only when the BX Options
  Market Maker is contra to a Customer.

                                                           # Penny Pilot Options Tier Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Rebate to add                                 Rebate to remove        Fee to remove          Fee to remove
                                            liquidity         Fee to add liquidity         liquidity              liquidity              liquidity
--------------------------------------------------------------------------------------------------------------------------------------------------------
When...............................  Customer..............  Customer..............  Customer.............  BX Options Market      BX Options Market
                                                                                                             Maker.                 Maker.
Trading with.......................  Non-Customer or BX      Customer..............  Non-Customer, BX       Customer.............  Non-Customer or BX
                                      Options Market Maker.                           Options Market                                Options Market
                                                                                      Maker, or Customer.                           Maker.
Tier 1:
    Participant executes less than   $0.00.................  $0.39.................  $0.00................  $0.39................  $0.46.
     0.05% of total industry
     customer equity and ETF option
     ADV contracts per month.
Tier 2:
    Participant executes 0.05% to    $0.10.................  $0.39.................  $0.25................  $0.39................  $0.46.
     less than 0.15% of total
     industry customer equity and
     ETF option ADV contracts per
     month.
Tier 3:
    Participant executes 0.15% or    $0.20.................  $0.39.................  $0.35................  $0.30................  $0.46.
     more of total industry
     customer equity and ETF option
     ADV contracts per month.
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                           # Penny Pilot Options Tier Schedule
                                                         * Non-Penny Pilot Options Tier Schedule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Rebate to add                                 Rebate to remove        Fee to remove          Fee to remove
                                            liquidity         Fee to add liquidity         liquidity              liquidity              liquidity
--------------------------------------------------------------------------------------------------------------------------------------------------------
When...............................  Customer..............  Customer..............  Customer.............  BX Options Market      BX Options Market
                                                                                                             Maker.                 Maker.

[[Page 80436]]

 
Trading with.......................  Non-Customer or BX      Customer..............  Non-Customer, BX       Customer.............  Non-Customer or BX
                                      Options Market Maker.                           Options Market                                Options Market
                                                                                      Maker, or Customer.                           Maker.
Tier 1:
    Participant executes less than   $0.00.................  $0.85.................  $0.80................  $0.89................  $0.89.
     0.05% of total industry
     customer equity and ETF option
     ADV contracts per month.
Tier 2:
    Participant executes 0.05% to    $0.10.................  $0.85.................  $0.80................  $0.89................  $0.89.
     less than 0.15% of total
     industry customer equity and
     ETF option ADV contracts per
     month.
Tier 3:
    Participant executes 0.15% or    $0.20.................  $0.85.................  $0.80................  $0.60................  $0.89.
     more of total industry
     customer equity and ETF option
     ADV contracts per month.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange is adopting these fees and rebates at this time 
because it believes that they will provide incentives for execution of 
contracts on the BX Options Market. The Exchange believes that its 
proposal should provide increased opportunities for participation in 
executions on the Exchange, facilitating the ability of the Exchange to 
bring together participants and encourage more robust competition for 
orders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\22\ in general, and with 
Section 6(b)(4) and 6(b)(5) of the Act,\23\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which the Exchange operates or controls, and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f.
    \23\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, for example, the Commission indicated that market forces should 
generally determine the price of non-core market data because national 
market system regulation ``has been remarkably successful in promoting 
market competition in its broader forms that are most important to 
investors and listed companies.'' \24\ Likewise, in NetCoalition v. 
NYSE Arca, Inc., 615 F.3d 525 (D.C. Cir. 2010), the D.C. Circuit upheld 
the Commission's use of a market-based approach in evaluating the 
fairness of market data fees against a challenge claiming that Congress 
mandated a cost-based approach.\25\ As the court emphasized, the 
Commission ``intended in Regulation NMS that `market forces, rather 
than regulatory requirements' play a role in determining the market 
data . . . to be made available to investors and at what cost.'' \26\
---------------------------------------------------------------------------

    \24\ Exchange Act Release No. 34-51808 (June 9, 2005) 
(``Regulation NMS Adopting Release'').
    \25\ See NetCoalition, 615 F.3d at 534.
    \26\ Id. at 537.
---------------------------------------------------------------------------

    Further, ``[n]o one disputes that competition for order flow is 
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market 
system, buyers and sellers of securities, and the broker-dealers that 
act as their order-routing agents, have a wide range of choices of 
where to route orders for execution'; [and] `no exchange can afford to 
take its market share percentages for granted' because `no exchange 
possesses a monopoly, regulatory or otherwise, in the execution of 
order flow from broker dealers'. . . .'' \27\ Although the Court and 
the SEC were discussing the cash equities markets, the Exchange 
believes that, as discussed above, these views apply with equal force 
to the options markets.
---------------------------------------------------------------------------

    \27\ NetCoalition I, 615 F.3d at 539 (quoting ArcaBook Order, 73 
FR at 74782-74783).
---------------------------------------------------------------------------

    The Exchange believes that its proposal should provide increased 
opportunities for participation in executions on the Exchange, 
facilitating the ability of the Exchange to bring together participants 
and encourage more robust competition for orders.
Change 1--Penny Pilot Options: Modify Fees and Rebates
    For Penny Pilot Options, the Exchange is proposing to modify fees 
and rebates for Customer and BX Options Market Maker. Specifically, the 
Exchange is proposing to add Tiers for Rebate to Add Liquidity for 
Customer, Fee to Add Liquidity for Customer, and Rebate to Remove 
Liquidity for Customer. The Exchange is also proposing to add Tiers for 
Fee to Remove Liquidity for BX Market Maker. The three new Tiers make 
up the Penny Pilot Options Tier Schedule.
    In particular, proposed Penny Pilot Tier 1 will be where a 
Participant executes less than 0.05% of total industry customer equity 
and ETF option ADV contracts per month, and will range from $0.00 
rebate to $0.46 fee.\28\ Proposed Penny Pilot Tier 2 will

[[Page 80437]]

be where Participant executes 0.05% to less than 0.15% of total 
industry customer equity and ETF option ADV contracts per month, and 
will range from $0.10 rebate to $0.46 fee.\29\ Proposed Penny Pilot 
Tier 3 will be where Participant executes 0.15% or more of total 
industry customer equity and ETF option ADV contracts per month, and 
will range from $0.20 rebate to $0.46 fee.\30\
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    \28\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.00; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.39 (same 
across all tiers); the Rebate to Remove Liquidity when Customer 
trading with Non-Customer, BX Options Market Maker, or Customer will 
be $0.00; the Fee to Remove Liquidity when BX Market Maker trading 
with Customer will be $0.39; and the Fee to Remove Liquidity when BX 
Options Market Maker trading with Non-Customer or BX Options Market 
Maker will be $0.46 (same across all Tiers).
    \29\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.10; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.39; the 
Rebate to Remove Liquidity when Customer trading with Non-Customer, 
BX Options Market Maker, or Customer will be $0.25; the Fee to 
Remove Liquidity when BX Options Market Maker trading with Customer 
will be $0.39; and the Fee to Remove Liquidity when BX Options 
Market Maker trading with Non-Customer or BX Options Market Maker 
will be $0.46.
    \30\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.20; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.39; the 
Rebate to Remove Liquidity when Customer trading with Non-Customer, 
BX Options Market Maker, or Customer will be $0.35; the Fee to 
Remove Liquidity when BX Options Market Maker trading with Customer 
will be $0.30; and the Fee to Remove Liquidity when BX Options 
Market Maker trading with Non-Customer or BX Options Market Maker 
will be $0.46.
---------------------------------------------------------------------------

    In adding the new Tiers in the Penny Pilot Options Tier Schedule, 
the current pricing will be replaced with the proposed Tier Schedule 
and is no longer used. Tiers replace the current rebate ($0.00) in 
Rebate to Add Liquidity for Customer (no rebate is offered today), and 
reference to note 2 is removed.\31\ Tiers replace the current fee 
($0.39) to Fee to Add Liquidity for Customer and reference to note 3 is 
removed and will not apply with this proposal.\32\ Certain references 
in Notes 2 and 3 to Customer are removed, and as such the notes no 
longer make sense for Rebate to Add Liquidity and for Customer Fee to 
Add Liquidity for Customer.\33\ The Exchange is also substituting the 
current fee ($0.46) to Fee to Remove Liquidity for BX Options Market 
Maker by putting it in the tier schedule. Deleting the rebates and fees 
from the fees and rebates structure for Penny Pilot Options is 
reasonable where they have been replaced by the new Tiers structure to 
incentivize Participants to send order flow to the Exchange.
---------------------------------------------------------------------------

    \31\ The rule text of note 2 is amended to reflect the removal 
of certain references to Customer.
    \32\ The rule text of note 3 is amended to reflect the removal 
of certain references to Customer.
    \33\ Notes 2 and 3 continue to apply, to Rebate to Add Liquidity 
for BX Options Market Maker and to Fee to Add Liquidity for BX 
Options Market Maker, respectively, but without deleted references 
to Customer.
---------------------------------------------------------------------------

    The Exchange believes that the proposed Tiers in the Penny Pilot 
Options Tier Schedule are reasonable in that they reflect a structure 
that is not novel in the options markets but rather is similar to that 
of other options markets and competitive with what is offered by other 
exchanges.\34\ In addition, the Exchange believes that making changes 
to add Tiers applicable to the Customer in terms of Rebate to Add 
Liquidity, Fee to Add Liquidity, and Rebate to Remove Liquidity, is 
reasonable because it encourages the desired Customer behavior by 
attracting Customer interest to the Exchange. Customer activity 
enhances liquidity on the Exchange for the benefit of all market 
participants and benefits all market participants by providing more 
trading opportunities, which attracts market makers. An increase in the 
activity of these market participants in turn facilitates tighter 
spreads, which may cause an additional corresponding increase in order 
flow from other market participants.
---------------------------------------------------------------------------

    \34\ See, e.g., the MIAX fee schedule at http://www.miaxoptions.com/sites/default/files/fee-schedules/MIAX_Options_Fee_Schedule_10012015.pdf and the BOX fee schedule at 
http://boxexchange.com/assets/BOX_Fee_Schedule1.pdf.
---------------------------------------------------------------------------

    Establishing Penny Pilot Tiers for Rebate to Add Liquidity for 
Customer, Fee to Add Liquidity for Customer, and Rebate to Remove 
Liquidity for Customer, and Penny Pilot Tiers for Fee to Remove 
Liquidity for BX Options Market Maker is reasonable. It encourages 
market participant behavior through progressive tiered fees and rebates 
using an accepted methodology among options exchanges.\35\ The proposed 
Tiers in the Penny Pilot Options Tier Schedule, which have been 
discussed at length, clearly reflect the progressively increasing 
nature of Participant executions structured for the purpose of 
attracting order flow to the Exchange.
---------------------------------------------------------------------------

    \35\ See, e.g., fee and rebate schedules of other options 
exchanges, including, but not limited to, NASDAQ Options Market 
(``NOM''), NASDAQ OMX PHLX LLC (``Phlx''), and Chicago Board Options 
Exchange (``CBOE'').
---------------------------------------------------------------------------

    The Penny Pilot Tiers are reasonable in that they are set up to 
incentivize Participants to direct liquidity to the Exchange. That is, 
as Participants execute more of total industry customer equity and ETF 
option ADV contracts per month on the Exchange, they can in certain 
categories earn higher rebates and be assessed lower fees. For example, 
the Penny Pilot Tier 3 Rebate to Add Liquidity when Customer trading 
with Non-Customer or BX Options Market Maker is higher ($0.20) that 
[sic] the Penny Pilot Tier 1 Rebate to Add Liquidity ($0.00), which 
offer [sic] no rebate today. The Penny Pilot Tiers are set up in a 
similar progressive manner for Rebate to Remove Liquidity when Customer 
trading with Non-Customer, BX Options Market Maker, or Customer. And, 
the Fee to Remove Liquidity when BX Option Market Maker trading with 
Customer is lesser for Tier 3 ($0.30) than for Tier 1 ($0.39).\36\
---------------------------------------------------------------------------

    \36\ The remaining categories of Fee to Add Liquidity when 
Customer trading with Customer and Fee to Remove Liquidity when BX 
Options Market Maker trading with Non-Customer or BX Options Market 
Maker reflect the same fee in each Penny Pilot Tier, whether 1, 2, 
or 3 ($0.39 and $0.46, respectively).
---------------------------------------------------------------------------

    For Penny Pilot Options, establishing the Customer-related and BX 
Options Market Maker-related fee and rebate changes, which includes the 
new Tiers, is equitable and not unfairly discriminatory. This is 
because the Exchange's proposal to assess fees and pay rebates 
according to Penny Pilot Tiers 1, 2, and 3 will apply uniformly to all 
similarly situated Participants. BX Options Market Makers would be 
assessed a Fee to Remove Liquidity according to the Penny Pilot Tiers, 
and Customers would earn a Rebate to Add Liquidity and a Rebate to 
Remove Liquidity according to the same Tiers per the Penny Pilot 
Options Tier Schedule .
    The fee and rebate schedule as proposed continues to reflect 
differentiation among different market participants. The Exchange 
believes that the differentiation is equitable and not unfairly 
discriminatory, as well as reasonable, and notes that unlike others 
(e.g. Non-Customers) some market participants like BX Options Market 
Makers commit to various obligations. For example, transactions of a BX 
Options Market Maker must constitute a course of dealings reasonably 
calculated to contribute to the maintenance of a fair and orderly 
market, and BX Options Market Makers should not make bids or offers or 
enter into transactions that are inconsistent with such course of 
dealings. Further, all BX Options Market Makers are designated as 
specialists on BX for all purposes under the Act or rules 
thereunder.\37\
---------------------------------------------------------------------------

    \37\ See Chapter VII, Section 5, entitled ``Obligations of 
Market Makers''.
---------------------------------------------------------------------------

    The Exchange believes that by making the proposed Penny Pilot 
Options changes, it is incentivizing Participants to execute more 
volume on the Exchange to further enhance liquidity in this market.

[[Page 80438]]

Change 2--Non-Penny Pilot Options: Modify Fees and Rebates
    For Non-Penny Pilot Options, the Exchange is proposing to modify 
fees and rebates for Customer and BX Options Market Maker. 
Specifically, the Exchange is proposing to add Tiers for Rebate to Add 
Liquidity for Customer, Fee to Add Liquidity for Customer,\38\ and 
Rebate to Remove Liquidity for Customer. The Exchange is also proposing 
to add Tiers for Fee to Remove Liquidity for BX Market Maker. The three 
new Tiers make up the Non-Penny Pilot Options Tier Schedule.
---------------------------------------------------------------------------

    \38\ The addition of Rebate to Add Liquidity of the Non-Penny 
Pilot Options part of the fees and rebates schedule is so that the 
Non-Penny and Penny parts of the schedule both have Rebate to Add 
Liquidity. The addition of Tiers to Rebate to Add Liquidity in the 
Non-Penny category applies to Customer only.
---------------------------------------------------------------------------

    In particular, proposed Non-Penny Pilot Tier 1 will be where 
Participant executes less than 0.05% of total industry customer equity 
and ETF option ADV contracts per month, and will range from $0.00 
rebate to $0.89 fee.\39\ The Proposed Non-Penny Pilot Tier 2 will be 
where Participant executes 0.05% to less than 0.15% of total industry 
customer equity and ETF option ADV contracts per month, and will range 
from $0.10 rebate to $0.89 fee.\40\ Proposed Non-Penny Pilot Tier 3 
will be where Participant executes 0.15% or more of total industry 
customer equity and ETF option ADV contracts per month, and will range 
from $0.20 rebate to $0.89 fee.\41\
---------------------------------------------------------------------------

    \39\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.00 ; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.85 (same 
across all Tiers); the Rebate to Remove Liquidity when Customer 
trading with Non-Customer, BX Options Market Maker, or Customer will 
be $0.80; the Fee to Remove Liquidity when BX Market Maker trading 
with Customer will be $0.89; and the Fee to Remove Liquidity when BX 
Options Market Maker trading with Non-Customer or BX Options Market 
Maker will be $0.89 (same across all Tiers).
    \40\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.10; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.85; the 
Rebate to Remove Liquidity when Customer trading with Non-Customer, 
BX Options Market Maker, or Customer will be $0.80; the Fee to 
Remove Liquidity when BX Options Market Maker trading with Customer 
will be $0.89; and the Fee to Remove Liquidity when BX Options 
Market Maker trading with Non-Customer or BX Options Market Maker 
will be $0.89.
    \41\ The Rebate to Add Liquidity when Customer trading with Non-
Customer or BX Options Market Maker will be $0.20; the Fee to Add 
Liquidity when Customer trading with Customer will be $0.85; the 
Rebate to Remove Liquidity when Customer trading with Non-Customer, 
BX Options Market Maker, or Customer will be $0.80; the Fee to 
Remove Liquidity when BX Options Market Maker trading with Customer 
will be $0.60; and the Fee to Remove Liquidity when BX Options 
Market Maker trading with Non-Customer or BX Options Market Maker 
will be $0.89.
---------------------------------------------------------------------------

    In adding the new Tiers in the Non-Penny Pilot Options Tier 
Schedule, the current pricing will be replaced with the proposed Tier 
Schedule and is no longer used. Tiers replace the current fee ($0.25/
$0.85) to Fee to Add Liquidity for Customer \42\ and reference to note 
5 is removed.\43\ Certain references in note 5 to Customer are removed 
as they are no longer needed.\44\ Tiers replace the current Rebate to 
Remove Liquidity for Customer and the current rebate ($0.70) is 
removed. Tiers replace the current Fee to Remove Liquidity for BX 
Options Market Maker and the current fee ($0.89) is removed. Deleting 
the rebates and fees from the fees and rebates structure for Non-Penny 
Pilot Options is reasonable where they have been replaced by the new 
Tiers structure to incentivize Participants bringing flow to the 
Exchange. The Exchange is also reasonably increasing by ten cents (to 
$0.95) the Fee to Add Liquidity for BX Options Market Maker when the BX 
Options market maker is contra to a Customer, and increasing by ten 
cents (to $0.98) the Fee to Add Liquidity for Non-Customer.
---------------------------------------------------------------------------

    \42\ The Exchange notes that for Fee to Add Liquidity for 
Customer the Exchange is replacing a fee ($0.25/$0.85) with Tiers 
that include Fee to Add Liquidity as well as Rebate to Add 
Liquidity.
    \43\ The rule text of note 5 is amended to reflect the removal 
of certain references to Customer.
    \44\ Note 5 continues to apply, however, to Fee to Add Liquidity 
for BX Options Market Maker, but without reference to the note 
applying to a Customer.
---------------------------------------------------------------------------

    The Exchange believes that the proposed Tiers in the Non-Penny 
Pilot Options Tier Schedule are reasonable in that they reflect a 
structure that is not novel in the options markets but rather is 
similar to and competitive with what is offered by other exchanges.\45\ 
In addition, the Exchange believes that making changes to add Tiers 
applicable to the Customer in terms of Rebate to Add Liquidity, Fee to 
Add Liquidity, and Rebate to Remove Liquidity, is reasonable because it 
encourages the desired Customer behavior by attracting Customer 
interest to the Exchange. Customer activity enhances liquidity on the 
Exchange for the benefit of all market participants and benefits all 
market participants by providing more trading opportunities, which 
attracts market makers. An increase in the activity of these market 
participants in turn facilitates tighter spreads, which may cause an 
additional corresponding increase in order flow from other market 
participants.
---------------------------------------------------------------------------

    \45\ See, e.g., the MIAX fee schedule at http://www.miaxoptions.com/sites/default/files/fee-schedules/MIAX_Options_Fee_Schedule_10012015.pdf and the BOX fee schedule at 
http://boxexchange.com/assets/BOX_Fee_Schedule1.pdf.
---------------------------------------------------------------------------

    Establishing Non-Penny Pilot Tiers for Rebate to Add Liquidity for 
Customer, Fee to Add Liquidity for Customer, and Rebate to Remove 
Liquidity for Customer, and Non-Penny Pilot Tiers for Fee to Remove 
Liquidity for BX Options Market Maker is reasonable. It encourages 
market participant behavior through progressive tiered fees and rebates 
using an accepted methodology among options exchanges.\46\ The proposed 
Tiers in the Non-Penny Pilot Options Tier Schedule, which have been 
discussed at length, clearly reflect the progressively increasing 
nature of Participant executions structured for the purpose of 
attracting flow to the Exchange.
---------------------------------------------------------------------------

    \46\ See, e.g., fee and rebate schedules of other options 
exchanges, including, but not limited to, NOM, Phlx, and CBOE.
---------------------------------------------------------------------------

    The Non-Penny Pilot Tiers are reasonable in that they are set up to 
incentivize Participants to direct liquidity to the Exchange. That is, 
as Participants execute more of total industry customer equity and ETF 
option ADV contracts per month on the Exchange, they can in certain 
categories earn higher rebates and be assessed lower fees. For example, 
the Non-Penny Pilot Tier 3 Rebate to Add Liquidity when Customer 
trading with Non-Customer or BX Options Market Maker is, similarly to 
the equivalent Penny Pilot Tier category, higher ($0.20) that [sic] the 
Non-Penny Pilot Tier 1 Rebate to Add Liquidity ($0.00). The Non-Penny 
Pilot Tiers are set up in a similar progressive manner for Fee to 
Remove Liquidity when BX Options Market Maker trading with Customer 
being assessed a lesser fee for Tier 3 ($0.60) than for Tier 1 
($0.89).\47\
---------------------------------------------------------------------------

    \47\ The remaining categories of Fee to Add Liquidity when 
Customer trading with Customer, Rebate to Remove Liquidity when 
Customer trading with Non-Customer, BX Options Market Maker, or 
Customer, and Fee to Remove Liquidity when BX Options Market Maker 
trading with Non-Customer or BX Options Market Maker reflect the 
same rates in each Non-Penny Pilot Tier, whether 1, 2, or 3 ($0.85, 
$0.80, and $0.89, respectively).
---------------------------------------------------------------------------

    For Non-Penny Pilot Options, establishing the Customer-related and 
BX Options Market Maker-related fee and rebate changes, which includes 
the new Tiers, is equitable and not unfairly discriminatory. This is 
because the Exchange's proposal to assess fees and pay rebates 
according to Non-Penny Pilot Tiers 1, 2, and 3 will apply similarly to 
all similarly situated Participants. BX Options Market Makers would be 
assessed a Fee to Remove Liquidity according to the Non-Penny Pilot 
Tiers, and Customers would earn a Rebate to Add Liquidity and a Rebate

[[Page 80439]]

to Remove Liquidity and be assessed a Fee to Add Liquidity according to 
the same Tiers per the Non-Penny Pilot Options Tier Schedule.
    The fee and rebate schedule as proposed continues to reflect 
differentiation among different market participants. The Exchange 
believes that the differentiation is equitable and not unfairly 
discriminatory, as well as reasonable, and notes that unlike others 
(e.g. Non-Customers) some market participants like BX Options Market 
Makers commit to various obligations. For example, transactions of a BX 
Market Maker must constitute a course of dealings reasonably calculated 
to contribute to the maintenance of a fair and orderly market, and 
Market Makers should not make bids or offers or enter into transactions 
that are inconsistent with such course of dealings. Further, all Market 
Makers are designated as specialists on BX for all purposes under the 
Act or rules thereunder.\48\
---------------------------------------------------------------------------

    \48\ See Chapter VII, Section 5, entitled ``Obligations of 
Market Makers''.
---------------------------------------------------------------------------

    The Exchange believes that by making the proposed Non-Penny Pilot 
Options changes, it is incentivizing Participants to execute more 
volume on the Exchange to further enhance liquidity in this market.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Specifically, the Exchange does 
not believe that its proposal to make changes to its Penny Pilot 
Options and Non-Penny Pilot Options fees and rebates and to establish 
Tiers for such fees and rebates will impose any undue burden on 
competition, as discussed below.
    The Exchange operates in a highly competitive market in which many 
sophisticated and knowledgeable market participants can readily and do 
send order flow to competing exchanges if they deem fee levels or 
rebate incentives at a particular exchange to be excessive or 
inadequate. Additionally, new competitors have entered the market and 
still others are reportedly entering the market shortly. These market 
forces ensure that the Exchange's fees and rebates remain competitive 
with the fee structures at other trading platforms. In that sense, the 
Exchange's proposal is actually pro-competitive because the Exchange is 
simply continuing its fees and rebates and establishing Tiers for Penny 
Pilot Options and Non-Penny Pilot Options in order to remain 
competitive in the current environment.
    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. In terms of inter-market 
competition, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. Because 
competitors are free to modify their own fees in response, and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited. In 
terms of intra-market competition, the Exchange notes that price 
differentiation among different market participants operating on the 
Exchange (e.g., Customer, BX Options Market Maker, Non-Customer) is 
reasonable. Customer activity, for example, enhances liquidity on the 
Exchange for the benefit of all market participants and benefits all 
market participants by providing more trading opportunities, which 
attracts market makers. An increase in the activity of these market 
participants (particularly in response to pricing) in turn facilitates 
tighter spreads, which may cause an additional corresponding increase 
in order flow from other market participants. Moreover, unlike others 
(e.g. Non-Customers) each BX Options Market Maker commits to various 
obligations. These obligations include, for example, transactions of a 
BX Market Maker must constitute a course of dealings reasonably 
calculated to contribute to the maintenance of a fair and orderly 
market, and Market Makers should not make bids or offers or enter into 
transactions that are inconsistent with such course of dealings.\49\
---------------------------------------------------------------------------

    \49\ See Chapter VII, Section 5, entitled ``Obligations of 
Market Makers''. Further, all Market Makers are designated as 
specialists on BX for all purposes under the Act or rules 
thereunder. See Chapter VII, Section 2.
---------------------------------------------------------------------------

    In this instance, the proposed changes to the fees and rebates for 
execution of contracts on the Exchange, and establishing Tiers for such 
fees and rebates, do not impose a burden on competition because the 
Exchange's execution and routing services are completely voluntary and 
subject to extensive competition both from other exchanges and from 
off-exchange venues. If the changes proposed herein are unattractive to 
market participants, it is likely that the Exchange will lose market 
share as a result. Accordingly, the Exchange does not believe that the 
proposed changes will impair the ability of members or competing order 
execution venues to maintain their competitive standing in the 
financial markets. Additionally, the changes proposed herein are pro-
competitive to the extent that they continue to allow the Exchange to 
promote and maintain order executions.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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

    Pursuant to Section 19(b)(3)(A)(ii) of the Act,\50\ the Exchange 
has designated this proposal as establishing or changing a due, fee, or 
other charge imposed by the self-regulatory organization on any person, 
whether or not the person is a member of the self-regulatory 
organization, which renders the proposed rule change effective upon 
filing.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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 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

[[Page 80440]]

     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BX-2015-081 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BX-2015-081. 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 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-BX-2015-081, and should be 
submitted on or before January 14, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\51\
---------------------------------------------------------------------------

    \51\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-32388 Filed 12-23-15; 8:45 am]
BILLING CODE 8011-01-P