Other Rule Filings Incorporated by Reference
Bats BZX Exchange, Inc. ("BZX"), Bats BYX Exchange, Inc. ("BYX"), Bats EDGA Exchange, Inc. ("EDGA") and Bats EDGX Exchange, Inc. ("EDGX") (collectively known as the "Exchanges") have incorporated certain rules by reference from other self-regulatory organization ("SRO") rulebooks. As such, the Exchanges will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by the other SROs. The Rule Filings are not effective until approved by the Securities and Exchange Commission ("SEC"), with the exception of certain types of rule filings that may take effect upon filing with the SEC if they meet the conditions specified under Section 19 of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Below are descriptions of the Exchanges' rules incorporated by reference from other SROs, along with any current proposals/approvals filed by the SROs.
FINRA Rule Filings to Amend FINRA Rule 5320.03 – Prohibition Against Trading Ahead of Customer Orders, Riskless Principal Exception.
BZX Rule 11.25, BYX Rule 11.24 and EDGX Rule 11.21:
Retail Member Organization. A "Retail Member Organization" or "RMO" is a Member (or a division thereof) that has been approved by the Exchange under this Rule to submit Retail Orders. A "Retail Order" is an agency order or riskless principal that meets the criteria of FINRA Rule 5320.03 that originates from a natural person and is submitted to the Exchange by a Retail Member organization, provided that no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trading algorithm or any other computerized methodology.
* A Retail Order is an Immediate or Cancel ("IOC") Order and shall operate in accordance with paragraph (f) below. A Retail Order may be an odd lot, round lot, or mixed lot.
No FINRA Rules have been adopted since cross reference filings SR-BATS-2014-043 effective September 18, 2014, SR-BYX-2014-013 effective July 24, 2014 and SR-EDGX-2014-18 effective October 29, 2014 were adopted.