Document ID: SEC-2016-2156-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Bats BZX Exchange, Inc.
Posted Date: 2016-12-07T05:00Z

[Federal Register Volume 81, Number 235 (Wednesday, December 7, 2016)]
[Notices]
[Pages 88277-88279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29284]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79437; File No. SR-BatsBZX-2016-78]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Make 
Non-Substantive Changes to the Fee Schedule

December 1, 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 November 29, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission (the 
``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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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to make several non-substantive 
changes to the fee schedule applicable to Members \5\ and non-members 
of the Exchange pursuant to Exchange Rules 15.1(a) and (c).
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    \5\ A 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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[[Page 88278]]

    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 make certain clarifying and non-
substantive changes to its fee schedule in order to improve formatting, 
eliminate certain redundancies, increase overall readability, and 
provide users with straightforward descriptions to augment overall 
comprehensibility and usability of the existing fee schedule. The 
Exchange notes that these changes are purely clerical and do not 
substantively amend any fee or rebate, nor do they alter the manner in 
which the Exchange assesses fees or calculates rebates. The proposed 
changes are simply intended to provide greater transparency to market 
participants regarding how the Exchange assesses fees and calculates 
rebates. Specifically, the Exchange proposes to:
     Alphabetize defined terms under the ``Definitions'' 
section; \6\
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    \6\ The Exchange does not proposes to alphabetize the 
definitions under the Market Data section of its fee schedule as 
those terms are generally grouped with similar terms.
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     capitalize the title of the column setting forth each 
tier's rate under footnotes 1, 2, 3, 4, 11, 12, 13, and 14;
     amend the name of footnote 2 from ``Tiers'' to ``Tier'' to 
connote the footnote's single tier;
     amend the title of the first column of footnote 1, 2, 3, 
and 14 to simply state ``Tier'' as the deleted language is redundant 
with the respective tier's title or with the description of the tier's 
criteria;
     amend the title of the column setting forth the tier's 
rate under footnote 13 to simply state ``Fee Per Share to Remove'' or 
``Rebate Per Share to Add'' as applicable. Renaming these [sic] column 
is intended to clearly indicate whether the footnote provides a fee 
and/or a rebate, and whether that enhanced pricing applies to orders 
which add or remove liquidity. In renaming these columns, the Exchange 
also proposes to remove certain other descriptive language as such 
language is redundant and set forth in the tier's title and list of its 
applicable fee codes;
     amend the name under first column of the tiers listed 
under footnotes 2, 3, 4, 11, 12, 13 and 14 to simply state ``Tier'' or 
``Tier 1'', Tier 2'', etc.;
     replace the phrases ``is equal to or greater than'', ``is 
at least'', ``of at least'' and ``that is . . . or more'' with ``>='' 
in all required criteria cells throughout the fee schedule; and
     amend the description of the required criteria under the 
third column of the tiers to begin with ``Member has an'' where 
applicable. Amending this description is intended to harmonize the 
format of the tier's criteria with its affiliate exchanges.
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.\7\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Sections 6(b)(4) of the Act,\8\ 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 believes that the proposed 
changes are reasonable and equitable because they are intended to 
simplify the Exchange's fee schedule and provide greater transparency 
to market participants regarding how the Exchange assesses fees and 
calculates rebates. The Exchange notes that these changes are purely 
clerical and do not substantively amend any fee or rebate, nor do they 
alter the manner in which the Exchange assesses fees or calculates 
rebates. The Exchange also believes that the proposal is non-
discriminatory because it applies uniformly to all Members. Finally, 
the Exchange believes that the proposed changes will make the fee 
schedule clearer and eliminate potential investor confusion, thereby 
removing impediments to and perfecting the mechanism of a free and open 
market and a national market system, and, in general, protecting 
investors and the public interest.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. To 
the contrary, the Exchange believes that the proposed rule change will 
not impose any burden on competition as the changes are purely clerical 
and do not amend any fee or rebate.

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 \9\ and paragraph (f) of Rule 19b-4 
thereunder.\10\ 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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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-2016-78 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange

[[Page 88279]]

Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BatsBZX-2016-78. 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-BatsBZX-2016-78, and should 
be submitted on or before December 28, 2016.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Brent J. Fields,
Secretary.
[FR Doc. 2016-29284 Filed 12-6-16; 8:45 am]
 BILLING CODE 8011-01-P