Document ID: SEC-2016-1053-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Bats BZX Exchange, Inc.
Posted Date: 2016-06-20T04:00Z

[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)]
[Notices]
[Pages 39972-39976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14445]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78061; File No. SR-BatsBZX-2016-22]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees as They Apply to the Equity Options Platform

June 14, 2016.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 1, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).

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[[Page 39973]]

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 BZX Rules 
15.1(a) and (c).
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant parts of such 
statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify its fee schedule applicable to the 
Exchange's equity options platform (``BZX Options'') to: (1) Modify the 
standard fee for Customer \6\ orders that remove liquidity in Penny 
Pilot Securities \7\; (2) modify and delete several tiers pursuant to 
the Exchange's tiered pricing structure; and (3) modify the Exchange's 
routing fees, as further described below.
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    \6\ The term ``Customer'' applies to any transaction identified 
by a Member for clearing in the Customer range at the Options 
Clearing Corporation (``OCC''), excluding any transaction for a 
Broker Dealer or a ``Professional'' as defined in Exchange Rule 
16.1.
    \7\ The term ``Penny Pilot Security'' applies to those issues 
that are quoted pursuant to Exchange Rule 21.5, Interpretation and 
Policy .01.
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Customer Orders That Remove Liquidity in Penny Pilot Securities
    The Exchange is proposing to modify the standard fee for Customer 
orders that remove liquidity in Penny Pilot Securities. Such orders, 
when executed on the Exchange, currently yield fee code PC and are 
assessed a standard fee of $0.48 per contract. The Exchange is 
proposing to increase the standard fee for Customer orders that remove 
liquidity in Penny Pilot Securities from $0.48 to $0.49 per contract. 
In addition to the modification to the Fee Codes and Associated Fees 
table, the Exchange proposes to update the Standard Rates table of the 
fee schedule to reflect this change.
Tiered Pricing Changes
    The Exchange currently offers multiple tiers that provide either a 
reduced fee or an enhanced rebate for Members that reach certain volume 
thresholds. The Exchange proposes various modifications to its tiered 
pricing structure, as set forth below.
Customer Penny Pilot Add Tiers
    Customer orders that add liquidity on the Exchange in Penny Pilot 
Securities yield fee code PY and receive a standard rebate of $0.25 per 
contract. In addition, footnote 1 of the fee schedule currently sets 
forth eight different types of Customer Penny Pilot Add Tiers, each 
providing an enhanced rebate to a Member's Customer orders that yield 
fee code PY upon satisfying monthly volume criteria required by the 
respective tier.
    The Exchange proposes to amend Customer Add Volume Tier 5 to 
increase the rebate provided and to reduce the qualification criteria 
for the tier. Specifically, the Exchange proposes to modify Customer 
Add Volume Tier 5 to provide a rebate of $0.53 per contract instead of 
$0.52 per contract for all executions of orders that yield PY for 
qualifying Members. In order to qualify for Customer Add Volume Tier 5, 
the Exchange currently requires a Member to: (1) Have an ADAV \8\ in 
Customer orders equal to or greater than 0.80% of average TCV; \9\ and 
(2) have an ADAV in Market Maker \10\ orders equal to or greater than 
0.40% of average TCV. In addition to the increase rebate for Customer 
Add Volume Tier 5, the Exchange proposes to reduce the second prong of 
the qualifying criteria to require a Member to have an ADAV in Market 
Maker orders equal to or greater than 0.30% of average TCV.
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    \8\ ``ADAV'' means average daily volume calculated as the number 
of contracts added per day.
    \9\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges to the consolidated transaction 
reporting plan for the month for which the fees apply.
    \10\ The term ``Market Maker'' applies to any transaction 
identified by a Member for clearing in the Market Maker range at the 
OCC, where such Member is registered with the Exchange as a Market 
Maker as defined in Rule 16.1(a)(37).
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    Pursuant to Customer Add Volume Tier 6, the Exchange currently 
provides an enhanced rebate of $0.53 per contract for executions of 
orders yielding fee code PY where a Member has an ADAV in Customer 
orders equal to or greater than 1.60% of average TCV. The Exchange 
proposes to reduce the qualifying criteria for Customer Add Volume Tier 
6 and to provide a rebate of $0.53 for any Member with an ADAV in 
Customer orders equal to or greater than 1.30% of average TCV.
    The Exchange notes that no changes are required to the Standard 
Rates table of the fee schedule in connection with the changes to 
footnote 1.
Firm, Broker Dealer and Joint Back Office Penny Pilot Add Volume Tiers
    Firm,\11\ Broker Dealer,\12\ and Joint Back Office \13\ orders that 
add liquidity on the Exchange in Penny Pilot Securities yield fee code 
PF and receive a standard rebate of $0.36 per contract. In addition, 
footnote 2 of the fee schedule currently sets forth four different 
types of Firm, Broker Dealer and Joint Back Office Penny Pilot Add 
Volume Tiers, each providing an enhanced rebate to a Member's orders 
that yield fee code PF upon satisfying monthly volume criteria required 
by the respective tier.
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    \11\ The term ``Firm'' applies to any transaction identified by 
a Member for clearing in the Firm range at the OCC, excluding any 
Joint Back Office transaction.
    \12\ The term ``Broker Dealer'' applies to any order for the 
account of a broker dealer, including a foreign broker dealer, that 
clears in the Customer range at the OCC.
    \13\ The term ``Joint Back Office'' applies to any transaction 
identified by a Member for clearing in the Firm range at the OCC 
that is identified with an origin code as Joint Back Office. A Joint 
Back Office participant is a Member that maintains a Joint Back 
Office arrangement with a clearing broker-dealer.
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    The Exchange proposes to eliminate Firm, Broker Dealer, and Joint 
Back Office Penny Pilot Add Volume Tiers 1 and 2 under footnote 2, 
which currently provide Members with rebate of $0.40 per contract and 
$0.42 per contract, respectively, for Firm, Broker Dealer, and Joint 
Back Office orders that add liquidity in Penny Pilot Securities where 
the Member meets applicable criteria. In connection with this change, 
the Exchange proposes to rename Tier 3 under footnote 2 as Tier 1.
    In addition to the modifications to footnote 2, the Exchange 
proposes to update the Standard Rates table of the fee schedule to 
reflect these changes.

[[Page 39974]]

Non-Customer Penny Pilot Take Volume Tiers
    Non-Customer \14\ orders that remove liquidity from the Exchange in 
Penny Pilot Securities yield fee code PP and are charged a standard fee 
of $0.50 per contract. In addition, footnote 3 of the fee schedule 
currently sets forth four different types of Non-Customer Penny Pilot 
Take Volume Tiers, each providing a reduced fee to a Member's Non-
Customer orders that yield fee code PP upon satisfying monthly volume 
criteria required by the respective tier.
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    \14\ The term ``Non-Customer'' applies to any transaction that 
is not a Customer order.
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    The Exchange proposes to eliminate Non-Customer Take Volume Tier 1 
under footnote 3, which currently results in a fee to Members of $0.49 
per contract for Non-Customer orders that remove liquidity in Penny 
Pilot Securities where the Member meets applicable criteria. In 
connection with this change, the Exchange proposes to rename Tier 2 
through 4 under footnote 3 as Tiers 1 through 3.
    The Exchange also proposes to amend current Non-Customer Take 
Volume Tier 2 (to be re-numbered as Non-Customer Take Volume Tier 1) to 
reduce the fee charged to qualifying Members under such tier as well as 
to reduce the qualification criteria for the tier. Specifically, the 
Exchange proposes to modify current Non-Customer Take Volume Tier 2 to 
charge a fee of $0.44 per contract instead of $0.47 per contract for 
all executions of orders that yield fee code PP for qualifying Members. 
In order to qualify for current Non-Customer Take Volume Tier 2, the 
Exchange currently requires a Member to: (1) Have an ADAV in Customer 
orders equal to or greater than 0.80% of average TCV; and (2) have an 
ADAV in Market Maker orders equal to or greater than 0.40% of average 
TCV. In addition to the reduced fee for current Non-Customer Take 
Volume Tier 2, the Exchange proposes to reduce the second prong of the 
qualifying criteria to require a Member to have an ADAV in Market Maker 
orders equal to or greater than 0.30% of average TCV.
    Pursuant to current Non-Customer Take Volume Tier 4 (to be re-
numbered as Non-Customer Take Volume Tier 3), the Exchange currently 
charges a reduced fee of $0.46 per contract for executions of orders 
yielding fee code PP where a Member has an ADAV in Customer orders 
equal to or greater than 1.60% of average TCV. The Exchange proposes to 
further reduce both the fee and qualifying criteria for current Non-
Customer Take Volume Tier 4 to instead charge a fee of $0.44 per 
contract for any Member with an ADAV in Customer orders equal to or 
greater than 1.30% of average TCV.
    In addition to the modifications to footnote 3, the Exchange 
proposes to update the Standard Rates table of the fee schedule to 
reflect these changes.
Non-Customer Non-Penny Pilot Take Volume Tier
    Non-Customer orders that remove liquidity from the Exchange in Non-
Penny Pilot Securities \15\ yield fee code NP and are charged a 
standard fee of $0.99 per contract. In addition, footnote 13 of the fee 
schedule currently sets forth a Non-Customer Non-Penny Pilot Take 
Volume Tier that provides a reduced fee of $0.95 per contract to a 
Member's Non-Customer orders that yield fee code NP upon satisfying 
monthly volume criteria required by the tier. The Exchange proposes to 
eliminate the Non-Customer Non-Penny Pilot Take Volume Tier. Thus, the 
Exchange proposes to remove footnote 13 in its entirety as well as the 
reference to footnote 13 appended to fee code NP.
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    \15\ The term ``Non-Penny Pilot Security'' applies to those 
issues that are not Penny Pilot Securities quoted pursuant to 
Exchange Rule 21.5, Interpretation and Policy .01.
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    In addition to the elimination of footnote 13, the Exchange 
proposes to update the Standard Rates table of the fee schedule to 
reflect this change.
Routing Fees
    The Exchange proposes to modify the fees charged for orders routed 
away from the Exchange and executed at various away options 
exchanges.\16\ The Exchange currently charges flat rate routing fees 
for executions at away options exchanges that have been placed into 
groups based on the approximate cost of routing to such venues. The 
grouping of away options exchanges is based on the cost of transaction 
fees assessed by each venue as well as costs to the Exchange for 
routing (i.e., clearing fees, connectivity and other infrastructure 
costs, membership fees, etc.) (collectively, ``Routing Costs''). To 
address different fees at various other options exchanges, the Exchange 
proposes to increase fees applicable to routing to certain away options 
exchanges in Non-Penny Securities, as further described below.
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    \16\ Other options exchanges to which the Exchange routes 
include: Bats EDGX Exchange, Inc. (``EDGX Options''), BOX Options 
Exchange LLC (``BOX''), Chicago Board Options Exchange, Inc. 
(``CBOE''), C2 Options Exchange, Inc. (``C2''), International 
Securities Exchange, Inc. (``ISE''), ISE Gemini, LLC (``ISE 
Gemini''), ISE Mercury, LLC (``ISE Mercury''), Miami International 
Securities Exchange, LLC (``MIAX''), Nasdaq Options Market LLC 
(``NOM''), Nasdaq OMX BX LLC (``BX Options''), Nasdaq OMX PHLX LLC 
(``PHLX''), NYSE Arca, Inc. (``ARCA''), and NYSE MKT LLC (``AMEX'').
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    With respect to Non-Customer orders in Non-Penny Pilot Securities, 
the Exchange appends fee code RO to all such orders routed to and 
executed at other options exchanges. Pursuant to fee code RO, the 
Exchange charges a fee of $1.20 per contract. The Exchange proposes to 
increase this fee from $1.20 per contract to $1.25 per contract to 
account for additional Routing Costs incurred by the Exchange.
    With respect to Customer orders in Non-Penny Pilot Securities the 
Exchange applies one of two fee codes: (1) Fee code RP, which results 
in a fee of $0.25 per contract and applies to all Customer orders 
(including orders in Penny Pilot Securities) routed to and executed at 
AMEX, BOX, BX Options, CBOE, EDGX Options, ISE Mercury, MIAX or PHLX; 
or (2) fee code RR, which results in a fee of $0.90 per contract and 
applies to all Customer orders in Non-Penny Pilot Securities routed to 
and executed at ARCA, C2, ISE, ISE Gemini or NOM. The Exchange proposes 
to increase the fee under fee code RR from $0.90 per contract to $1.00 
per contract to account for additional Routing Costs incurred by the 
Exchange. The Exchange does not propose any change to fee code RP.
    As set forth above, the Exchange's proposed approach to routing 
fees is to set forth in a simple manner certain flat fees that 
approximate the cost of routing to other options exchanges. The 
Exchange then monitors the fees charged as compared to the costs of its 
routing services, as well as monitoring for specific fee changes by 
other options exchanges, and intends to adjust its flat routing fees 
and/or groupings to ensure that the Exchange's fees do indeed result in 
a rough approximation of overall Routing Costs, and are not 
significantly higher or lower in any area. The increases are proposed 
primarily in order to account for increased Routing Costs incurred by 
the Exchange.
Implementation Date
    The Exchange proposes to implement these amendments to its fee 
schedule 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.\17\ 
Specifically, the Exchange believes that

[[Page 39975]]

the proposed rule change is consistent with section 6(b)(4) of the 
Act,\18\ in that it provides for the equitable allocation of reasonable 
dues, fees and other charges among members and other persons using any 
facility or system which the Exchange operates or controls. The 
Exchange notes that it operates in a highly competitive market in which 
market participants can readily direct order flow to competing venues 
if they deem fee levels to be excessive.
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    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that its proposal to change the standard fee 
charged for Customer orders that remove liquidity in Penny Pilot 
Securities under fee code PC from $0.48 to $0.49 per contract is 
reasonable, fair and equitable and non-discriminatory, because the 
change will apply equally to all participants, and because, while the 
change marks an increase in fees for Customer orders in Penny Pilot 
Securities, such proposed fees remain consistent with pricing 
previously offered by the Exchange as well as competitors of the 
Exchange and does not represent a significant departure from the 
Exchange's general pricing structure and will allow the Exchange to 
earn additional revenue that can be used to offset the addition of new 
pricing incentives, including those introduced as part of this 
proposal.
    Further, the Exchange believes that the proposed modifications to 
the tiered pricing structure are reasonable, fair and equitable, and 
non-discriminatory. The Exchange operates in a highly competitive 
market in which market participants may readily send order flow to many 
competing venues if they deem fees at the Exchange to be excessive. The 
proposed fee structure remains intended to attract order flow to the 
Exchange by offering market participants a competitive pricing 
structure. The Exchange believes it is reasonable to offer and 
incrementally modify incentives intended to help to contribute to the 
growth of the Exchange.
    Volume-based rebates such as those currently maintained on the 
Exchange have been widely adopted by options exchanges and are 
equitable because they are open to all Members on an equal basis and 
provide additional benefits or discounts that are reasonably related to 
the value of an exchange's market quality associated with higher levels 
of market activity, such as higher levels of liquidity provision and/or 
growth patterns, and introduction of higher volumes of orders into the 
price and volume discovery processes.
    The proposed modifications to the criteria required to qualify for 
current Customer Add Volume Tiers 5 and 6 and Non-Customer Take Volume 
Tiers 2 and 4 are intended to incentivize additional Members to send 
Customer orders and/or Market Maker orders to the Exchange in an effort 
to qualify for the enhanced rebate or lower fee made available by the 
tiers. Similarly, the increase to the rebate provided for Members that 
qualify for Customer Add Volume Tier 5 and the reduction of the fees 
charged to Members that qualify for Non-Customer Take Volume Tiers 2 
and 4 are intended to incentivize additional Members to send Customer 
orders and/or Market Maker orders to the Exchange. In order to offset 
such changes, the Exchange is also eliminating certain other pricing 
incentives currently offered by the Exchange. Particularly, the 
Exchange has proposed to eliminate Non-Customer Take Volume Tier 1, 
Firm, Broker Dealer, and Joint Back Office Penny Pilot Add Volume Tiers 
1 and 2, and the Non-Customer Non-Penny Pilot Take Volume Tier. 
Although these changes will result in fewer ways to qualify for 
enhanced rebates or reduced fees, the Exchange believes such changes 
are offset by the other changes described above, particularly the 
reduction of certain criteria needed to qualify for remaining tiers.
    The proposed changes are broadly intended to incentivize 
participants to increase their participation on the Exchange, which 
will increase the liquidity and market quality on the Exchange. Thus, 
the Exchange believes that the proposed tiers, as proposed to be 
amended are reasonable, fair and equitable, and non-discriminatory, for 
the reasons set forth above with respect to volume-based pricing 
generally and because such changes will incentivize participants to 
further contribute to market quality. The Exchange also believes that 
the tiered pricing structure remains consistent with pricing previously 
offered by the Exchange as well as other options exchanges and does not 
represent a significant departure from such pricing structures.
    With respect to the proposed increases under the Exchange's routing 
structure, the Exchange again notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues or providers of routing services if they 
deem fee levels to be excessive. As explained above, the Exchange seeks 
to approximate the cost of routing to other options exchanges, 
including other applicable costs to the Exchange for routing, in order 
to provide a simplified and easy to understand pricing model. The 
Exchange believes that a pricing model based on approximate Routing 
Costs is a reasonable, fair and equitable approach to pricing. 
Specifically, the Exchange believes that its proposal to modify fees is 
fair, equitable and reasonable because the fees are generally an 
approximation of the cost to the Exchange for routing orders to such 
exchanges. The Exchange believes that its flat fee structure for orders 
routed to various venues is a fair and equitable approach to pricing, 
as it will provide certainty with respect to execution fees at groups 
of away options exchanges. In order to achieve its flat fee structure, 
taking all costs to the Exchange into account, the Exchange will in 
some instances charge a higher premium to route to certain options 
exchanges than to others. As a general matter, the Exchange believes 
that the proposed fees will allow it to recoup and cover its costs of 
providing routing services to such exchanges and to make some 
additional profit in exchange for the services it provides. The 
Exchange also believes that the proposed increase to the fee structure 
for orders routed to and executed at these away options exchanges is 
fair and equitable and not unreasonably discriminatory in that it 
applies equally to all Members. Finally, the Exchange notes that it 
intends to consistently evaluate its routing fees, including profit and 
loss attributable to routing, as applicable, in connection with the 
operation of a flat fee routing service, and would consider future 
adjustments to the proposed pricing structure to the extent it was 
recouping a significant profit or loss from routing to away options 
exchanges.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed amendments to its fee schedule 
would not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. Rather, the 
proposal is a competitive proposal that is seeking to sustain and 
further the growth of the Exchange by updating a standard fee as well 
as the Exchange's tiered pricing structure and updating the Exchange's 
fees for routing orders to away options exchanges based on Routing 
Costs.
    With respect to the increase to the standard Customer fee to remove 
liquidity in Penny Pilot Securities, the Exchange does not believe that 
the increase represents a significant departure from pricing previously 
offered by the Exchange nor does the Exchange believe that the increase 
results in any burden on competition.

[[Page 39976]]

Additionally, Members may opt to disfavor the Exchange's pricing if 
they believe that alternatives offer them better value.
    With respect to the proposed tiered pricing changes, the Exchange 
has structured the proposed fees and rebates to attract additional 
volume to the Exchange. Particularly, the Exchange is proposing various 
changes to tiers that will result in increased rebates provided or 
reduced fees charged or that will make certain tiers more easily 
attainable for more Members. In order to offset such changes, the 
Exchange is also eliminating certain other pricing incentives currently 
offered by the Exchange. Accordingly, the Exchange does not believe 
that the proposed changes to the Exchange's tiered pricing structure 
burdens competition, but instead, enhances competition as such changes 
are all intended to increase the competitiveness of the Exchange. Also, 
the Exchange believes that the price changes contribute to, rather than 
burden competition, as such changes are broadly intended to incentivize 
participants to increase their participation on the Exchange, which 
will increase the liquidity and market quality on the Exchange, which 
will then further enhance the Exchange's ability to compete with other 
exchanges.
    With respect to the proposed changes to the routing fee structure, 
the Exchange believes that the proposed fees are competitive in that 
they will continue to provide a simple approach to routing pricing that 
some Members may favor. Additionally, Members may opt to disfavor the 
Exchange's pricing, including pricing for transactions on the Exchange 
as well as routing fees, if they believe that alternatives offer them 
better value. In particular, with respect to routing services, such 
services are available to Members from other broker-dealers as well as 
other options exchanges. The Exchange also notes that Members may 
choose to mark their orders as ineligible for routing to avoid 
incurring routing fees.\19\
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    \19\ See Exchange Rule 21.1(d)(7) (describing ``Book Only'' 
orders) and Exchange Rule 21.9(a)(1) (describing the Exchange's 
routing process, which requires orders to be designated as available 
for routing).
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    Based on the foregoing, the Exchange does not believe that any of 
the proposed changes will impair the ability of Members or competing 
venues to maintain their competitive standing in the financial markets.

(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 \20\ and paragraph (f) of Rule 19b-4 
thereunder.\21\ 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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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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-BatsBZX-2016-22 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-BatsBZX-2016-22. 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-BatsBZX-2016-22 and should 
be submitted on or before July 11, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14445 Filed 6-17-16; 8:45 am]
 BILLING CODE 8011-01-P