[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)]
[Notices]
[Pages 77678-77680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31437]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76596; File No. SR-BATS-2015-111]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
19.6, Series of Options Contracts Open for Trading

December 9, 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 2, 2015, BATS Exchange, Inc. (``Exchange'' or ``BATS'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II 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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[[Page 77679]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal for the Exchange's equity options 
platform (``BZX Options'') to amend Interpretation and Policy .07 (Mini 
Options Contracts) to Rule 19.6 (Series of Options Contracts Open for 
Trading).
    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 amend Interpretation and Policy .07 to 
Rule 19.6 regarding Mini Options Contracts traded on BZX Options, to 
replace the name ``Google Inc.'' with ``Alphabet Inc.'' Google Inc. 
(``Google'') recently reorganized to create a new public holding 
company called Alphabet Inc. (``Alphabet''). As a result of the holding 
company reorganization, each share of Class A Common Stock (``GOOG''), 
which the Exchange has listed as a Mini Options Contract, has 
automatically converted into an equivalent corresponding share of 
Alphabet Inc. stock. The Exchange also proposes to change symbol 
``GOOG'' in Interpretation and Policy .07 to Rule 19.6 to ``GOOGL'' to 
make the BZX Options Alphabet Class A Common Stock Mini Options 
Contract symbol consistent with the Alphabet symbols used across the 
national exchanges.
    The Exchange proposes this change to Interpretation and Policy .07 
to enable the Exchange to list and trade Mini Options Contract on 
Google, now Alphabet, Class A shares. The Exchange is proposing to make 
this change because, on October 5, 2015 Google reorganized and as a 
result underwent a name change.
    The purpose of this change is to ensure that Interpretation and 
Policy .07 to Rule 19.6 reflects the Exchange's intention to be able to 
list and trade Mini Options on an exhaustive list of underlying 
securities enumerated in Interpretation and Policy .07 to Rule 19.6. 
This change is meant to continue the inclusion of Class A shares of 
Google (now Alphabet) in the current list of underlying securities that 
Mini Options Contracts can be traded on, while making clear that Class 
C Capital Stock shares of Google (now Alphabet) are not part of that 
list as that class of options has not been approved for Mini Options 
Contracts trading. As a result, the proposed change will help avoid 
confusion.
2. Statutory Basis
    The Exchange believes that its proposal 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(b) of the Act.\3\ Specifically, the 
proposal is consistent with Section 6(b)(5) of the Act \4\ because it 
would promote just and equitable principles of trade, remove 
impediments to, and perfect the mechanism of, a free and open market 
and a national market system and, in general, to protect investors and 
the public interest. Additionally, the Exchange believes the proposed 
rule change is consistent with the Section 6(b)(5) \5\ requirement that 
the rules of an exchange not be designed to permit unfair 
discrimination between customers, issuers, brokers, or dealers.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ Id.
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    In particular, the proposal to change the name Google to Alphabet 
to reflect the new ownership structure is consistent with the Act 
because the proposed change merely updates the current name to allow 
for continued Mini Options Contracts trading on Google's (now Alphabet) 
Class A shares and changes the symbol ``GOOG'' to ``GOOGL'' to be 
consistent with other national exchanges. The proposed change will 
allow for continued benefit to investors by enabling the Exchange to 
provide them with additional investment alternatives.

(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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
does not impose any burden on intra-market competition because it 
applies to all members and member organizations uniformly. There is no 
burden on inter-market competition because the exchange [sic] is merely 
attempting to continue to have the ability to list and trade Class A 
shares of the company formerly known as Google, now Alphabet, as a Mini 
Option Contract. Additionally, the changing the ``GOOG'' symbol to 
``GOOGL'' will be a change in name-only. The new symbol will continue 
to represent shares of Google's (now Alphabet's) Class A shares. As a 
result, there will be no substantive changes to the Exchange's 
operations or its rules.

(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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) 
thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally 
does not become operative for 30 days after the date of filing. 
However, pursuant to Rule 19b-4(f)(6)(iii) \9\ the Commission may 
designate a shorter time if such

[[Page 77680]]

action is consistent with the protection of investors and the public 
interest.
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest 
as it will allow the Exchange to accurately reflect the new ownership 
structure and ticker symbol for Alphabet Class A shares and to continue 
to list and trade mini options on Alphabet's Class A shares, formerly 
Google Class A shares. For these reasons, the Commission designates the 
proposed rule change to be operative upon filing.\10\
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    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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 necessary or 
appropriate in the public interest, for the protection of investors, or 
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
     Send an email to [email protected]. Please include 
File Number SR-BATS-2015-111 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-BATS-2015-111. 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-BATS-2015-111, and should be 
submitted on or before January 5, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31437 Filed 12-14-15; 8:45 am]
 BILLING CODE 8011-01-P