80 FR 11712 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trading Centers, To Delete References to the ROLF Routing Option, Which Routed Orders to LavaFlow ECN

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 42 (March 4, 2015)

Page Range		11712-11713
FR Document		2015-04420
Federal Register, Volume 80 Issue 42 (Wednesday, March 4, 2015)
[Federal Register Volume 80, Number 42 (Wednesday, March 4, 2015)]
[Notices]
[Pages 11712-11713]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-04420]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74380; File No. SR-EDGA-2015-12]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.11, Routing to Away Trading Centers, To Delete References to 
the ROLF Routing Option, Which Routed Orders to LavaFlow ECN

February 26, 2015.
    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 February 23, 2015, EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') 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 Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.11, Routing to Away 
Trading Centers, to delete references to the ROLF routing option, which 
routed orders to LavaFlow ECN.
    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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 11.11, Routing to Away Trading 
Centers, to delete references under subparagraphs (7) and (15) to the 
ROLF routing option, which routed to LavaFlow ECN. These changes are 
being proposed in response to LavaFlow ECN ceasing market operations on 
Friday, January 30, 2015. Under Rule 11.11(g)(7), an order utilizing 
the ROLF routing option first checked the System \5\ for available 
shares and was then routed to the LavaFlow ECN. If shares remained 
unexecuted after being routed, they were cancelled, unless otherwise 
instructed by the User.\6\ In addition, under Rule 11.11(g)(15), a User 
was able to couple the Post to Away option and ROLF routing option. The 
grouping of the Post to Away and ROLF routing options instructed the 
System to route and post the order on LavaFlow ECN. As of February 2, 
2015, the Exchange, via BATS Trading, the Exchange's affiliated routing 
broker-dealer, was no longer able to route orders to LavaFlow ECN 
because it ceased operations. As a result, the Exchange no longer 
offers the ROLF routing option nor permit [sic] it to be coupled with a 
Post to Away routing option. Therefore, the Exchange proposes to delete 
the ROLF routing option under Rule 11.11(g)(7) as well as a reference 
to the ROLF routing option under Rule 11.11(g)(15).
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    \5\ Exchange Rule 1.5(cc) defines ``System'' as ``the electronic 
communications and trading facility designated by the Board through 
which securities orders of Users are consolidated for ranking, 
execution and, when applicable, routing away.''
    \6\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to 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. The Exchange does not 
believe that this proposal will permit unfair discrimination among 
customers, brokers, or dealers because the ROLF routing option will no 
longer be available to all Users. The proposed change is in response to 
LavaFlow ECN ceasing market operations on Friday, January 30, 2015. As 
of February 2, 2015, the Exchange, via BATS Trading, was no longer able 
to route orders to LavaFlow ECN and, therefore, proposes to delete 
references to the ROLF routing option under Rules 11.11(g)(7) and (15). 
The proposal is intended to make the Exchange's rules clearer and less 
confusing for investors by eliminating a routing option that is no 
longer available; 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(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. The proposed rule change is not designed to 
address any competitive issues but rather avoid investor confusion by 
eliminating a routing option that is no longer made available by the 
Exchange.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

[[Page 11713]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (1) 
Significantly affect the protection of investors or the public 
interest; (2) impose any significant burden on competition; and (3) by 
its terms does not become operative for 30 days after the date of this 
filing, 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to provide the Commission 
with written notice of its 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 met this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. 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 avoid potential 
investor confusion during the operative delay period by immediately 
eliminating exchange rules that account for a routing option that the 
Exchange can no longer provide due to LavaFlow ECN's cessation of 
operations.\11\ Accordingly, the Commission hereby grants the 
Exchange's request and designates the proposal operative upon filing.
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    \11\ 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.

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-EDGA-2015-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-EDGA-2015-12. 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-EDGA-2015-12, and should be 
submitted on or before March 25, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-04420 Filed 3-3-15; 8:45 am]
BILLING CODE 8011-01-P
11712 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices

the Amendments, on an accelerated The text of the proposed rule change option. Therefore, the Exchange
basis, pursuant to Section 19(b)(2) of the is available at the Exchange’s Web site proposes to delete the ROLF routing
Act. at www.batstrading.com, at the option under Rule 11.11(g)(7) as well as
principal office of the Exchange, and at a reference to the ROLF routing option
VII. Conclusion
the Commission’s Public Reference under Rule 11.11(g)(15).
It is therefore ordered, pursuant to Room.
Section 19(b)(2) of the Act,123 that the 2. Statutory Basis
proposed rule change (SR–MSRB–2014– II. Self-Regulatory Organization’s
Statement of the Purpose of, and The Exchange believes that its
08), as modified by the Amendments, proposal is consistent with Section 6(b)
be, and hereby is, approved. Statutory Basis for, the Proposed Rule
Change of the Act 7 in general, and furthers the
For the Commission, pursuant to delegated objectives of Section 6(b)(5) of the Act 8
authority.124 In its filing with the Commission, the in particular, in that it is designed to
Jill M. Peterson, Exchange included statements promote just and equitable principles of
concerning the purpose of and basis for trade, to foster cooperation and
Assistant Secretary.
the proposed rule change and discussed coordination with persons engaged in
[FR Doc. 2015–04431 Filed 3–3–15; 8:45 am]
any comments it received on the facilitating transactions in securities, to
BILLING CODE 8011–01–P
proposed rule change. The text of these remove impediments to and perfect the
statements may be examined at the mechanism of a free and open market
places specified in Item IV below. The and a national market system and, in
SECURITIES AND EXCHANGE
Exchange has prepared summaries, set general, to protect investors and the
COMMISSION forth in Sections A, B, and C below, of public interest. The Exchange does not
[Release No. 34–74380; File No. SR–EDGA– the most significant parts of such believe that this proposal will permit
2015–12] statements.
unfair discrimination among customers,
Self-Regulatory Organizations; EDGA A. Self-Regulatory Organization’s brokers, or dealers because the ROLF
Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and the routing option will no longer be
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule available to all Users. The proposed
Rule Change To Amend Rule 11.11, Change change is in response to LavaFlow ECN
Routing to Away Trading Centers, To ceasing market operations on Friday,
1. Purpose
Delete References to the ROLF January 30, 2015. As of February 2,
The Exchange proposes to amend 2015, the Exchange, via BATS Trading,
Routing Option, Which Routed Orders
Rule 11.11, Routing to Away Trading was no longer able to route orders to
to LavaFlow ECN
Centers, to delete references under LavaFlow ECN and, therefore, proposes
February 26, 2015. subparagraphs (7) and (15) to the ROLF to delete references to the ROLF routing
Pursuant to Section 19(b)(1) of the routing option, which routed to option under Rules 11.11(g)(7) and (15).
Securities Exchange Act of 1934 (the LavaFlow ECN. These changes are being The proposal is intended to make the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed in response to LavaFlow ECN Exchange’s rules clearer and less
notice is hereby given that on February ceasing market operations on Friday, confusing for investors by eliminating a
23, 2015, EDGA Exchange, Inc. (the January 30, 2015. Under Rule routing option that is no longer
‘‘Exchange’’ or ‘‘EDGA’’) filed with the 11.11(g)(7), an order utilizing the ROLF available; thereby removing
Securities and Exchange Commission routing option first checked the impediments to and perfecting the
(‘‘Commission’’) the proposed rule System 5 for available shares and was mechanism of a free and open market
change as described in Items I and II then routed to the LavaFlow ECN. If and a national market system, and, in
below, which Items have been prepared shares remained unexecuted after being general, protecting investors and the
by the Exchange. The Exchange has routed, they were cancelled, unless public interest.
designated this proposal as a ‘‘non- otherwise instructed by the User.6 In
controversial’’ proposed rule change addition, under Rule 11.11(g)(15), a B. Self-Regulatory Organization’s
pursuant to Section 19(b)(3)(A) of the User was able to couple the Post to Statement on Burden on Competition
Act 3 and Rule 19b–4(f)(6)(iii) Away option and ROLF routing option. The Exchange does not believe that
thereunder,4 which renders it effective The grouping of the Post to Away and the proposal will impose any burden on
upon filing with the Commission. The ROLF routing options instructed the competition not necessary or
Commission is publishing this notice to System to route and post the order on appropriate in furtherance of the
solicit comments on the proposed rule LavaFlow ECN. As of February 2, 2015, purposes of the Act. The proposed rule
change from interested persons. the Exchange, via BATS Trading, the change is not designed to address any
Exchange’s affiliated routing broker- competitive issues but rather avoid
I. Self-Regulatory Organization’s dealer, was no longer able to route
Statement of the Terms of Substance of investor confusion by eliminating a
orders to LavaFlow ECN because it routing option that is no longer made
the Proposed Rule Change ceased operations. As a result, the available by the Exchange.
The Exchange filed a proposal to Exchange no longer offers the ROLF
amend Rule 11.11, Routing to Away routing option nor permit [sic] it to be C. Self-Regulatory Organization’s
Trading Centers, to delete references to coupled with a Post to Away routing Statement on Comments on the
the ROLF routing option, which routed Proposed Rule Change Received From
mstockstill on DSK4VPTVN1PROD with NOTICES

orders to LavaFlow ECN. 5 Exchange Rule 1.5(cc) defines ‘‘System’’ as ‘‘the Members, Participants, or Others
electronic communications and trading facility
123 15 designated by the Board through which securities The Exchange has neither solicited
U.S.C. 78s(b)(2).
124 17CFR 200.30–3(a)(12).
orders of Users are consolidated for ranking, nor received written comments on the
execution and, when applicable, routing away.’’ proposed rule change.
1 15 U.S.C. 78s(b)(1).
6 The term ‘‘User’’ is defined as ‘‘any Member or
2 17 CFR 240.19b–4.
Sponsored Participant who is authorized to obtain
3 15 U.S.C. 78s(b)(3)(A). 7 15 U.S.C. 78f(b).
access to the System pursuant to Rule 11.3.’’ See
4 17 CFR 240.19b–4(f)(6)(iii). Exchange Rule 1.5(ee). 8 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Notices 11713

III. Date of Effectiveness of the IV. Solicitation of Comments For the Commission, by the Division of
Proposed Rule Change and Timing for Trading and Markets, pursuant to delegated
Commission Action Interested persons are invited to authority.12
submit written data, views, and Jill M. Peterson,
Because the foregoing proposed rule arguments concerning the foregoing, Assistant Secretary.
change does not: (1) Significantly affect including whether the proposed rule [FR Doc. 2015–04420 Filed 3–3–15; 8:45 am]
the protection of investors or the public change is consistent with the Act. BILLING CODE 8011–01–P
interest; (2) impose any significant Comments may be submitted by any of
burden on competition; and (3) by its the following methods:
terms does not become operative for 30 SECURITIES AND EXCHANGE
days after the date of this filing, or such Electronic Comments COMMISSION
shorter time as the Commission may • Use the Commission’s Internet [Release No. 34–74382; File No. SR–
designate if consistent with the comment form (http://www.sec.gov/ NYSEARCA–2015–10]
protection of investors and the public rules/sro.shtml); or
interest, the proposed rule change has Self-Regulatory Organizations; NYSE
become effective pursuant to Section • Send an email to rule-comments@ Arca, Inc.; Notice of Filing and
19(b)(3)(A) of the Act 9 and Rule 19b– sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
4(f)(6) thereunder.10 EDGA–2015–12 on the subject line. Rule Change Amending the NYSE Arca
A proposed rule change filed under Paper Comments Options Fee Schedule
Rule 19b–4(f)(6) normally does not February 26, 2015.
• Send paper comments in triplicate
become operative for 30 days after the Pursuant to Section 19(b)(1) 1 of the
to Secretary, Securities and Exchange
date of filing. However, Rule 19b– Securities Exchange Act of 1934 (the
Commission, 100 F Street NE.,
4(f)(6)(iii) permits the Commission to ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Washington, DC 20549–1090.
designate a shorter time if such action notice is hereby given that, on February
is consistent with the protection of All submissions should refer to File 18, 2015, NYSE Arca, Inc. (the
investors and the public interest. The Number SR–EDGA–2015–12. This file ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
Exchange has asked the Commission to number should be included on the the Securities and Exchange
waive the 30-day operative delay so that subject line if email is used. To help the Commission (the ‘‘Commission’’) the
the proposal may become operative Commission process and review your proposed rule change as described in
immediately upon filing. The comments more efficiently, please use Items I, II, and III below, which Items
Commission believes that waiving the only one method. The Commission will have been prepared by the self-
30-day operative delay is consistent post all comments on the Commission’s regulatory organization. The
with the protection of investors and the Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
public interest as it will allow the rules/sro.shtml). Copies of the solicit comments on the proposed rule
Exchange to avoid potential investor submission, all subsequent change from interested persons.
confusion during the operative delay amendments, all written statements I. Self-Regulatory Organization’s
period by immediately eliminating with respect to the proposed rule Statement of the Terms of Substance of
exchange rules that account for a change that are filed with the the Proposed Rule Change
routing option that the Exchange can no Commission, and all written The Exchange proposes to amend the
longer provide due to LavaFlow ECN’s communications relating to the NYSE Arca Options Fee Schedule (‘‘Fee
cessation of operations.11 Accordingly, proposed rule change between the Schedule’’) by adding to the Fee
the Commission hereby grants the Commission and any person, other than Schedule information regarding the
Exchange’s request and designates the those that may be withheld from the number of option issues a Market Maker
proposal operative upon filing. public in accordance with the may have in their assignment in relation
At any time within 60 days of the provisions of 5 U.S.C. 552, will be to the number of OTPs a Market Maker
filing of the proposed rule change, the available for Web site viewing and has. The text of the proposed rule
Commission summarily may printing in the Commission’s Public change is available on the Exchange’s
temporarily suspend such rule change if Reference Room, 100 F Street NE., Web site at www.nyse.com, at the
it appears to the Commission that such Washington, DC 20549, on official principal office of the Exchange, and at
action is necessary or appropriate in the business days between the hours of the Commission’s Public Reference
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the Room.
investors, or otherwise in furtherance of filing also will be available for II. Self-Regulatory Organization’s
the purposes of the Act. inspection and copying at the principal Statement of the Purpose of, and
office of the Exchange. All comments Statutory Basis for, the Proposed Rule
9 15 U.S.C. 78s(b)(3)(A). received will be posted without change; Change
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– the Commission does not edit personal
4(f)(6)(iii) requires a self-regulatory organization to
identifying information from In its filing with the Commission, the
provide the Commission with written notice of its self-regulatory organization included
intent to file the proposed rule change, along with submissions. You should submit only
a brief description and text of the proposed rule statements concerning the purpose of,
information that you wish to make
mstockstill on DSK4VPTVN1PROD with NOTICES

change, at least five business days prior to the date and basis for, the proposed rule change
available publicly. All submissions
of filing of the proposed rule change, or such and discussed any comments it received
shorter time as designated by the Commission. The should refer to File Number SR–EDGA– on the proposed rule change. The text
Exchange has met this requirement. 2015–12, and should be submitted on or
11 For purposes only of waiving the 30-day
before March 25, 2015. 12 17 CFR 200.30–3(a)(12).
operative delay, the Commission has also
1 15 U.S.C.78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 3 17 CFR 240.19b–4.

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Document Created: 2018-02-21 09:31:47
Document Modified: 2018-02-21 09:31:47
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 11712