Document ID: SEC-2015-2014-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ OMX BX, Inc.
Posted Date: 2015-12-01T05:00Z

[Federal Register Volume 80, Number 230 (Tuesday, December 1, 2015)]
[Notices]
[Pages 75157-75161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30386]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76520; File No. SR-BX-2015-071]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
Fees and Rebates Related to BX Price Improvement Auction (PRISM)

November 24, 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 November 12, 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 adopt new subsection (5) to add 
fees and rebates for BX Price Improvement Auction (``PRISM''), which is 
a mechanism for price improvement on BX Options (``Price Improvement 
Mechanism'').
    While the changes proposed herein are effective upon filing, the 
Exchange has designated that the amendments be operative on November 
16, 2015.
    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 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 adopt 
new subsection (5) to add fees and rebates for PRISM.
    Effective on or about November 16, 2015, BX Options is introducing 
PRISM, which is codified in BX Chapter VI, Section 9 (also known as the 
``PRISM Rule'').\3\ PRISM is a Price Improvement Mechanism for all-
electronic BX Options whereby a buy and sell order may be submitted in 
one order message to initiate an auction at a `stop price' and seek 
potential price improvement. Options are traded electronically on BX 
Options, and all options participants may respond to a PRISM 
Auction,\4\ the duration of which will be set at 200 milliseconds.\5\ 
PRISM includes auto-match functionality in which a Participant (an 
``Initiating Participant'') may electronically submit for execution an 
order it represents as agent on behalf of a Public Customer,\6\ 
Professional customer, broker dealer, or any other entity (``PRISM 
Order'') against principal interest or against any other order it 
represents as agent (an ``Initiating Order'') provided it submits the 
PRISM Order for electronic execution into the PRISM Auction pursuant to 
Chapter VI, Section 9.\7\ The PRISM Rule describes the circumstances 
under which an Initiating Participant may initiate an Auction. A PRISM 
Order that is for a Non-Customer (account of a broker-dealer or any 
other person or entity that is not a Public Customer) is always 
required to improve the same side of the BX BBO even if there is no 
resting limit order on the book. PRISM Orders that do not comply with 
the

[[Page 75158]]

requirements set forth in the PRISM Rule are not eligible to initiate 
an Auction and will be immediately cancelled. Also, PRISM Orders 
submitted at or before the opening of trading are not eligible to 
initiate an Auction and will be rejected. PRISM Orders submitted during 
the final two seconds of the trading session in the affected series are 
not eligible to initiate an Auction and will be immediately cancelled. 
Finally, an Initiating Order may not be a solicited order for the 
account of any BX Options Market Maker assigned in the affected 
series.\8\
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    \3\ See Securities Exchange Act Release Nos. 76301 (October 29, 
2015), 80 FR 68347 (November 4, 2015) (SR-BX-2015-032) (approval 
order) (``PRISM Approval''); and 75827 (September 3, 2015), 80 FR 
54601 (September 10, 2015) (SR-BX-2015-032) (``PRISM Filing''). In 
the PRISM Approval the Exchange noted that it will file a rule 
change separately with the Commission to remove Price Improving and 
Post-Only Order types from its Rules. The Exchange will not commence 
offering BX PRISM until such time as it has an effective and 
operative rule in place from the Commission to remove Price 
Improving and Post-Only Orders and removes the ability to submit 
Price Improving and Post-Only Orders into the auction. In the event 
the Exchange determines to amend its order types to allow the entry 
of non-displayed order types, e.g. Price Improving or Post-Only 
Orders, the Exchange will file a proposed rule change pursuant to 
Section 19(b)(2) with the Commission to seek approval for such rule 
change. See also Options Technical Update #2015-6.
    \4\ PRISM Auction eligibility requirements and the early 
conclusion of the PRISM Auction are, with certain other PRISM 
features, subject to a pilot program scheduled to expire July 18, 
2016. See BX Chapter VI, Section 9.
    \5\ Other exchanges that have price improvement auctions have 
developed different durations. See, e.g., CBOE Rule 6.74A(b)(1)(C) 
(CBOE's AIM auction has a duration of one second); and BOX Rule 
7150(f)(1) (BOX's PIP auction has a duration of one hundred 
milliseconds, commencing on the dissemination of the PIP broadcast).
    \6\ For purposes of the PRISM Rule in Chapter XV, Section 2, a 
Public Customer order does not include a Professional order, and 
therefore a Professional would not be entitled to Public Customer 
priority as described herein. A Public Customer means a person that 
is not a broker or dealer in securities. See BX Options Rules at 
Chapter I, Section 1(a)(50). A Public Customer order does not 
include a Professional order for purposes of BX Rule at Chapter VI, 
Section 10(a)(C)(1)(a), which governs allocation priority. A 
``Professional'' means any person or entity that (i) is not a broker 
or dealer in securities, and (ii) places more than 390 orders in 
listed options per day on average during a calendar month for its 
own beneficial account(s). A Participant or a Public Customer may, 
without limitation, be a Professional. All Professional orders shall 
be appropriately marked by Participants. See BX Rules at Chapter I, 
Section 1(a)(49).
    \7\ BX PRISM will only conduct an auction for simple (non-
complex) Orders.
    \8\ See Chapter VI, Section 9(i)(C) through (G).
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    The Exchange believes that the PRISM Auction will be beneficial to 
market participants, and in particular will encourage BX Market 
Makers\9\ to quote at the National Best Bid or Offer (``NBBO'') with 
additional size and thereby result in tighter and deeper markets, 
resulting in more liquidity on BX. Specifically, by offering BX Market 
Makers the ability to receive priority in the proposed allocation 
during the PRISM Auction up to the size of their quote, a BX Market 
Maker will be encouraged to quote with additional size outside of the 
PRISM Auction at the best and most aggressive prices. BX believes that 
this incentive may result in a narrowing of quotes and thus further 
enhance BX's market quality. BX believes that PRISM will encourage BX 
Market Makers to compete vigorously to provide the opportunity for 
price improvement in a competitive auction process.\10\
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    \9\ BX Options Market Makers may also be referred to as ``Market 
Makers''. The term ``BX Options Market Maker'' 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.
    \10\ For purposes of brevity, the Exchange does not endeavor to 
describe all the nuances of PRISM within this fee proposal. 
Additional detail regarding PRISM can be found in PRISM Approval, 
PRISM Filing, and PRISM FAQs at http://nasdaqtrader.com/content/productsservices/trading/PRISMFAQs.pdf.
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    This proposal establishes the fee and rebate structure for PRISM 
(per contract), in particular two new fees and one new rebate. These 
would apply to Customers,\11\ BX Options Market Makers,\12\ and Non-
Customers:
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    \11\ The term ``Customer'' means a Public Customer or a broker-
dealer. BX Chapter 1, Section 1(a)(22). The term ``Broker-Dealer'' 
applies to any transaction which is not subject to any of the other 
transaction fees applicable within a particular category.
    \12\ 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.
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    Change 1. The Exchange proposes to establish fees for Submitted 
PRISM Order\13\ (Agency Order and Contra-Side Order).
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    \13\ This relates to a market participant submitting an order 
into the PRISM auction.
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    Change 2. The Exchange proposes to establish fees for Responded to 
PRISM Auction \14\ (Penny Classes \15\ and non-Penny Classes).
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    \14\ This relates to a market participant responding to a PRISM 
Auction.
    \15\ Penny Classes are options listed pursuant to the Penny 
Pilot, which 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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    Change 3. The Exchange proposes to establish rebates for PRISM 
Order Traded With PRISM Response.\16\
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    \16\ This relates to a market participant submitting a PRISM 
Order pursuant to a PRISM Auction and the PRISM Order trading with 
PRISM Response.
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    Each specific change is described in detail below.

Change 1--Fees for Submitted PRISM Order: Agency Order and Contra-Side 
Order

    For Submitted PRISM Order the Exchange is proposing to establish 
fees for Agency Order (per contract), and fees for Contra-Side Order 
(per contract). Currently, the Exchange has no such fees.
    The fees for Submitted PRISM Order will range from $0.00 to $0.30 
for Agency Order. The fees for Submitted PRISM Order will range from 
$0.00 to $0.05 for Contra-Side Order. Specifically, for Submitted PRISM 
Order proposed Chapter XV, Section 2 subsection (5) will state that for 
Customer there will be no fee ($0.00) for Agency Order and no fee 
($0.00) for Contra-Side Order. Subsection (5) will state that for BX 
Options Market Maker there will be a $0.30 fee for Agency Order and a 
$0.05 fee for Contra-Side Order. Subsection (5) will state that for 
Non-Customer there will be a $0.30 fee for Agency Order and a $0.05 fee 
for Contra-Side Order.

Change 2--Fees for Responded to PRISM Auction: Penny Classes and Non-
Penny Classes

    For Responded to PRISM Auction the Exchange is proposing to 
establish fees for Penny Classes (per contract), and fees for non-Penny 
Classes (per contract). Currently, the Exchange has no such fees.
    The fees for Responded to PRISM Auction will be $0.49 (per executed 
contract) for Penny Classes. The fees for Responded to PRISM Auction 
will be $0.94 (per executed contract) for non-Penny Classes. 
Specifically, for Responded to PRISM Auction proposed Chapter XV, 
Section 2 subsection (5) will state that for Customer there will be a 
$0.49 fee for Penny Classes and a $0.94 fee for non-Penny Classes. 
Subsection (5) will state that for BX Options Market Maker there will 
be a $0.49 fee for Penny Classes and a $0.94 fee for non-Penny Classes. 
Subsection (5) will state that for Non-Customer there will be a $0.49 
fee for Penny Classes and a $0.94 fee for non-Penny Classes.

Change 3--Rebates for PRISM Order Traded With PRISM Response: Penny 
Classes and Non-Penny Classes

    For PRISM Order Traded with PRISM Response the Exchange is 
proposing to establish rebates for Penny Classes (per contract), and 
rebates for non-Penny Classes (per contract). Currently, the Exchange 
has no such rebates. These rebates would be applied in conjunction with 
the Agency Order fees that the Submitted PRISM Order is assessed.
    The rebates for PRISM Order Traded with PRISM Response will range 
from $0.00 to $0.35 for Penny Classes. The rebates for PRISM Order 
Traded with PRISM Response will range from $0.00 to $0.70 for non-Penny 
Classes. Only Customers will get rebates. Specifically, for PRISM Order 
Traded with PRISM Response proposed Chapter XV, Section 2 subsection 
(5) will state that for Customer there will be a $0.35 rebate for Penny 
Classes and a $0.70 rebate for non-Penny Classes. Subsection (5) will 
state that for BX Options Market Maker and for Non-Customer there will 
be no rebate ($0.00) for Penny Classes and no rebate ($0.00) for non-
Penny Classes.

Example 1

    A Customer PRISM Agency Order in a Penny Class (one contract) 
trades against a PRISM Response in a Penny Class (one contract). The 
Customer Agency Order is assessed a fee of $0.00 and given a rebate 
of $0.35 for a total rebate of $0.35 (fee $0.00 + rebate $0.35). The 
market participant that Responded to PRISM Auction will be assessed 
a fee of $0.49.

Example 2

    A Non-Customer PRISM Agency Order in a Penny Class (one 
contract) trades against a PRISM Response in a Penny Class (one 
contract). The Non-Customer Agency Order is assessed a fee of $0.30 
and given a rebate of $0.00 for a total fee of $0.30 (fee $0.30 +

[[Page 75159]]

rebate $0.00). The market participant that Responded to PRISM 
Auction will be assessed a fee of $0.49.
    As proposed, Chapter XV, Section 2 subsection (5) will read as 
follows:
(5) Fees and rebates for BX Price Improvement Auction (``PRISM'')

                                                             Fees and Rebates (per Contact)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Submitted  PRISM order fee      Responded to  PRISM auction   PRISM order traded with  PRISM
                                                         --------------------------------               fee                       response rebate
              Type of market  participants                                               ---------------------------------------------------------------
                                                           Agency  order    Contra-side                      Non-penny                       Non-penny
                                                                               order      Penny  classes      classes     Penny  classes      classes
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Customer................................................           $0.00           $0.00           $0.49           $0.94           $0.35           $0.70
BX Options Market Maker.................................            0.30            0.05            0.49            0.94            0.00            0.00
Non-Customer............................................            0.30            0.05            0.49            0.94            0.00            0.00
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BX will apply the rebate to market participants that submitted a PRISM Order pursuant to a PRISM Auction and the PRISM Order Traded with PRISM Response.
  The Agency Order fee for Submitted PRISM Order will be applicable to any contract(s) for which a rebate is provided for PRISM Order Traded with PRISM
  Response.

    The Exchange is adopting these fees and rebates at this time 
because it believes that they will allow the Exchange to recoup some of 
the costs associated with PRISM, which promotes price improvement to 
the benefit of market participants, while also incentivizing the use of 
PRISM.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\17\ in general, and with 
Section 6(b)(4) and 6(b)(5) of the Act,\18\ 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.
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    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(4) and (5).
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    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.'' \19\ Likewise, in NetCoalition v. 
NYSE Arca, Inc., 615 F.3d 525 (D.C. Cir. 2010), the DC 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.\20\ 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.'' \21\
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    \19\ Exchange Act Release No. 34-51808 (June 9, 2005) 
(``Regulation NMS Adopting Release'').
    \20\ See NetCoalition, 615 F.3d at 534.
    \21\ Id., at 537.
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    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' . . . .'' \22\ 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.
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    \22\ NetCoalition I, 615 F.3d at 539 (quoting ArcaBook Order, 73 
FR at 74782-74783).
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    The Exchange's proposal establishes fees and rebates regarding 
PRISM, which promotes price improvement to the benefit of market 
participants. The Exchange believes that PRISM will encourage market 
participants, and in particular BX Market Makers, to compete vigorously 
to provide the opportunity for price improvement in a competitive 
auction process. The Exchange believes that its proposal will allow the 
Exchange to recoup costs associated with PRISM while also incentivizing 
its use.

Change 1--Fees for Submitted PRISM Order: Agency Order and Contra-Side 
Order

    For Submitted PRISM Order, establishing that there will be no fee 
for Customer for Agency Order, while establishing a $0.30 fee per 
contract for BX Options Market Maker for Agency Order and a $0.30 fee 
per contract for Non-Customer for Agency Order, is reasonable because 
it encourages the desired Customer behavior. The fee is also reasonable 
because the associated revenue will allow the Exchange to maintain and 
enhance its services. For Submitted PRISM Order, establishing no 
Customer fee, while establishing a $0.05 fee per contract for BX 
Options Market Maker for Contra-Side Order and a $0.05 fee per contract 
fee for Non-Customer for Contra-Side Order, is reasonable because it 
encourages the desired Customer behavior. The fee is also reasonable 
because the associated revenue will allow the Exchange to maintain and 
enhance its services. 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.
    For Submitted PRISM Order, establishing no fee for Customer (Agency 
Order and Contra-Side Order) and a fee for BX Market Maker and Non-
Customer (Agency Order and Contra-Side Order) is equitable and not 
unfairly discriminatory. This is because the Exchange's proposal to 
assess such fee will apply the same to all similarly situated 
participants.

Change 2--Fees for Responded to PRISM Auction: Penny Classes and Non-
Penny Classes

    For Responded to PRISM Auction, establishing that there will be a 
$0.49 fee per contract for Customer for Agency Order, and the same fee 
for BX Options Market Maker and for Non-Customer for Agency Order, is 
reasonable because the

[[Page 75160]]

associated revenue will allow the Exchange to maintain and enhance its 
services.
    For Responded to PRISM Auction, establishing that there will be a 
$0.94 fee per contract for Customer for Contra-Side Order, and the same 
fee for BX Options Market Maker and for Non-Customer for Contra-Side 
Order, is reasonable because the associated revenue will allow the 
Exchange to maintain and enhance its services.
    For Responded to PRISM Auction, establishing a fee for Customer, BX 
Market Maker and Non-Customer (Agency Order and Contra-Side Order) is 
equitable and not unfairly discriminatory. This is because the 
Exchange's proposal to assess such fee will apply the same to all 
similarly situated participants.

Change 3--Rebates for PRISM Order Traded With PRISM Response: Penny 
Classes and Non-Penny Classes

    For PRISM Order Traded with PRISM Response, establishing that there 
will be no rebate for BX Options Market Maker and Non-Customer for 
Penny Classes, while establishing a $0.35 rebate per contract for 
Customer for Penny Classes and a $0.70 rebate per contract for Customer 
for non-Penny Pilot Classes, is reasonable because it encourages the 
desired Customer behavior. The rebate is also reasonable because paying 
the rebate only to Customers will allow the Exchange to maintain and 
enhance its services. For PRISM Order Traded with PRISM Response, 
establishing that there will be no rebate for BX Options Market Maker 
and Non-Customer for non-Penny Classes, while establishing a $0.70 
rebate per contract for Customer for non-Penny, is reasonable because 
it encourages the desired Customer behavior. The rebate is also 
reasonable because paying the rebate only to Customers will allow the 
Exchange to maintain and enhance its services.\23\ 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.
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    \23\ As noted, such rebate would be applied in conjunction with 
any Agency Order fee that the Submitted PRISM Order is assessed.
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    For PRISM Order Traded with PRISM Response, establishing a rebate 
for Customer (Penny Classes and non-Penny Classes) and no rebate for BX 
Market Maker and Non-Customer (Penny Classes and non-Penny Classes) is 
equitable and not unfairly discriminatory. This is because the 
Exchange's proposal to pay such rebate will apply the same to all 
similarly situated participants. The Exchange is adopting the proposed 
fees and rebates at this time because it believes that the associated 
revenue will allow it to continue and enhance PRISM, which is 
beneficial to market participants.

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 establish fees and rebates for PRISM 
will impose any 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 establishing rebates and fees 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 this instance, the proposed changes to the charges assessed and 
credits available to member firms in respect of PRISM 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 PRISM, which has 
the potential to result in more efficient, price improved executions to 
the benefit of market participants.

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,\24\ 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.
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    \24\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    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

[[Page 75161]]

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-BX-2015-071 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-2015-071. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for Web site viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE., Washington, 
DC 20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly.
    All submissions should refer to File Number SR-BX-2015-071 and 
should be submitted on or before December 22, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
Robert W. Errett,
Deputy Secretary.
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    \25\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-30386 Filed 11-30-15; 8:45 am]
BILLING CODE 8011-01-P