Document ID: SEC-2016-0145-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Y-Exchange, Inc.
Posted Date: 2016-01-27T05:00Z

[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Notices]
[Page 4728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01534]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76953; File No. SR-BYX-2012-019]

Self-Regulatory Organization; BATS Y-Exchange, Inc.; Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Price 
Improvement Program

January 21, 2016.
    On November 27, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule) \1\ that granted the BATS 
Y-Exchange, Inc. (``BYX'' or the ``Exchange'') a limited exemption from 
the Sub-Penny Rule in connection with the operation of the Exchange's 
Retail Price Improvement (``RPI'') Program (the ``Program''). The 
limited exemption was granted concurrently with the Commission's 
approval of the Exchange's proposal to adopt the Program for a one-year 
pilot term. \2\ The exemption was granted coterminous with the 
effectiveness of the pilot Program and has been extended twice; \3\ 
both the pilot Program and exemption are scheduled to expire on January 
31, 2016.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BXY-2012-019).
    \3\ See Securities Exchange Act Release Nos. 71249 (January 7, 
2014), 79 FR 2229 (January 13, 2012) (SR-BYX-2014-001) (extending 
the pilot period); 71250 (January 7, 2014), 79 FR 2234 (January 13, 
2012) (Order Granting an Extension to Limited Exemption From Rule 
612(c) of Regulation NMS in Connection With the Exchange's Retail 
Price Improvement Program); 74111 (January 22, 2015), 80 FR 4598 
(January 28, 2015) (SR-BYX-2015-05) (extending the pilot period); 
and 74115 (January 22, 2015), 80 FR 4324 (January 27, 2015) (Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Price 
Improvement Program).
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    The Exchange now seeks to extend the exemption until July 31, 2016. 
\4\ The Exchange's request was made in conjunction with an immediately 
effective filing that extends the operation of the Program until July 
31, 2015. \5\ In its request to extend the exemption, the Exchange 
notes that the Program was implemented gradually over time. 
Accordingly, the Exchange has asked for additional time to allow itself 
and the Commission to analyze data concerning the Program, which the 
Exchange committed to provide to the Commission. \6\ For this reason 
and the reasons stated in the Order originally granting the limited 
exemption, the Commission finds that extending the exemption, pursuant 
to its authority under Rule 612(c) of Regulation NMS, is appropriate in 
the public interest and consistent with the protection of investors.
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    \4\ See letter from Anders Franzon, Senior Vice President and 
Associate General Counsel, BYX, to Elizabeth M. Murphy, Secretary, 
Commission, dated January 12, 2016.
    \5\ See SR-BYX-2016-01.
    \6\ See RPI Approval Order, supra note 2, at 77 FR at 71657.
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    Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612(c) of Regulation NMS that allows it to accept and rank orders 
priced equal to or greater than $1.00 per share in increments of 
$0.001, in connection with the operation of its RPI Program.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the federal securities 
laws must rest with the persons relying on the exemptions that are the 
subject of this Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority. \7\
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    \7\ 17 CFR 200.30-3(a)(83).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-01534 Filed 1-26-16; 8:45 am]
 BILLING CODE 8011-01-P