80 FR 12660 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Increase the Fee for Orders Yielding Fee Code K
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 46 (March 10, 2015)
Federal Register Volume 80, Issue 46 (March 10, 2015)
| Page Range | 12660-12661 | |
| FR Document | 2015-05478 |
[Federal Register Volume 80, Number 46 (Tuesday, March 10, 2015)] [Notices] [Pages 12660-12661] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-05478] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74431; File No. SR-EDGX-2015-05] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Increase the Fee for Orders Yielding Fee Code K March 4, 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 January 28, 2015, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend its fees and rebates applicable to Members \5\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c) (``Fee Schedule'') to increase the fee for orders yielding fee code K, which routes to NASDAQ OMX PSX (``PSX'') using ROUC or ROUE routing strategy. --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer, or any person associated with a registered broker or dealer, that has been admitted to membership in the Exchange. A Member will have the status of a ``member'' of the Exchange as that term is defined in Section 3(a)(3) of the Act.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- 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 the 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 increase the fee for orders yielding fee code K, which routes to PSX using ROUC or ROUE routing strategy. In securities priced at or above $1.00, the Exchange currently assesses a fee of $0.0024 per share for Members' orders that yield fee code K. The Exchange proposes to amend its Fee Schedule to increase this fee to $0.0026 per share. The proposed change represents a pass through of the rate that BATS Trading, Inc. (``BATS Trading''), the Exchange's affiliated routing broker-dealer, is charged for routing orders to PSX when it does not qualify for a volume tiered reduced fee. The proposed change is in response to PSX's February 2015 fee change where PSX increased the fee to remove liquidity via routable order types it charges its customers, from a fee of $0.0024 per share to a fee of $0.0025 per share for Tape A securities and $0.0026 per share for Tapes B and C securities.\6\ When BATS Trading routes to PSX, it will now be charged a standard rate of $0.0025 per share for Tape A securities and $0.0026 per share for Tapes B and C securities.\7\ BATS Trading will pass through this rate to the Exchange and the Exchange, in turn, will pass through of a rate of $0.0026 per share to its Members. The proposed increase to the [[Page 12661]] fee under fee code K would enable the Exchange to equitably allocate its costs among all Members utilizing fee code K. --------------------------------------------------------------------------- \6\ See PSX, Equity Trader Alert 2014-95, Updates to PSX and BX Pricing for November 2014, dated October 27, 2014 [sic], available at http://www.nasdaqtrader.com/MicroNews.aspx?id=ETA2014-95. \7\ The Exchange notes that to the extent BATS Trading does or does not achieve any volume tiered reduced fee on PSX, its rate for fee code K will not change. --------------------------------------------------------------------------- The Exchange proposes to implement these amendments to its Fee Schedule on February 2, 2015. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\8\ in general, and furthers the objectives of Section 6(b)(4),\9\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange believes that its proposal to increase the pass through fee for Members' orders that yield Flag K from $0.0024 per share to $0.0026 per share represents an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities because the Exchange does not levy additional fees or offer additional rebates for orders that it routes to PSX through BATS Trading. Prior to PSX's February 2015 fee change, PSX charged its members, which includes BATS Trading, a fee of $0.0024 per share to remove liquidity using non-routable order types, which BATS Trading passed through to the Exchange and the Exchange charged to its Members. In February 2015, PSX increased the fee to remove liquidity via routable order types it charges its customers, from a fee of $0.0024 per share to a fee of $0.0025 per share for Tape A securities and $0.0026 per share for Tapes B and C securities.\10\ Therefore, the Exchange believes that its proposal to pass through a fee of $0.0026 per share for orders that yield Flag K is equitable and reasonable because it accounts for the pricing changes on PSX. In addition, the proposal allows the Exchange to charge its Members a pass-through rate for orders that are routed to PSX. Furthermore, the Exchange notes that routing through BATS Trading is voluntary. Lastly, the Exchange also believes that the proposed amendment is non- discriminatory because it applies uniformly to all Members. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f. \9\ 15 U.S.C. 78f(b)(4). \10\ See supra note 6. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition These proposed rule changes do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that any of these changes represent [sic] a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor EDGX's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal to pass through a fee of $0.0026 per share for Members' orders that yield Flag K would increase intermarket competition because it offers customers an alternative means to route to PSX. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. 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 unsolicited 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 \11\ and paragraph (f) of Rule 19b-4 thereunder.\12\ 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-EDGX-2015-05 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 No. SR-EDGX-2015-05. 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 No. SR-EDGX-2015-05 and should be submitted on or before March 31, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-05478 Filed 3-9-15; 8:45 am] BILLING CODE 8011-01-P
![12660 Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices
to determine whether the proposed rule For the Commission, by the Division of at www.batstrading.com, at the
change should be disapproved. Trading and Markets, pursuant to delegated principal office of the Exchange, and at
authority.26 the Commission’s Public Reference
IV. Solicitation of Comments Brent J. Fields, Room.
Secretary.
Interested persons are invited to II. Self-Regulatory Organization’s
[FR Doc. 2015–05482 Filed 3–9–15; 8:45 am]
submit written data, views, and Statement of the Purpose of, and the
BILLING CODE 8011–01–P
arguments concerning the foregoing, Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
change, as modified by Amendment No. SECURITIES AND EXCHANGE In its filing with the Commission, the
1, is consistent with the Act. Comments COMMISSION Exchange included statements
may be submitted by any of the concerning the purpose of and basis for
following methods: [Release No. 34–74431; File No. SR–EDGX–
2015–05]
the proposed rule change and discussed
Electronic Comments any comments it received on the
Self-Regulatory Organizations; EDGX proposed rule change. The text of these
• Use the Commission’s Internet Exchange, Inc.; Notice of Filing and statements may be examined at the
comment form (http://www.sec.gov/ Immediate Effectiveness of a Proposed places specified in Item IV below. The
rules/sro.shtml); or Rule Change To Amend the Fee Exchange has prepared summaries, set
Schedule To Increase the Fee for forth in Sections A, B, and C below, of
• Send an email to rule-comments@ the most significant parts of such
sec.gov. Please include File Number SR– Orders Yielding Fee Code K
statements.
EDGA–2015–10 on the subject line. March 4, 2015.
Pursuant to Section 19(b)(1) of the A. Self-Regulatory Organization’s
Paper Comments Statement of the Purpose of, and
Securities Exchange Act of 1934 (the
Statutory Basis for, the Proposed Rule
• Send paper comments in triplicate ‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on January Change
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street 28, 2015, EDGX Exchange, Inc. (the 1. Purpose
NE., Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
The Exchange proposes to increase
Securities and Exchange Commission
All submissions should refer to File the fee for orders yielding fee code K,
(the ‘‘Commission’’) the proposed rule
Number SR–EDGA–2015–10. This file which routes to PSX using ROUC or
change as described in Items I, II and III
number should be included on the ROUE routing strategy. In securities
below, which Items have been prepared
subject line if email is used. To help the priced at or above $1.00, the Exchange
by the Exchange. The Exchange has
Commission process and review your currently assesses a fee of $0.0024 per
designated the proposed rule change as
comments more efficiently, please use share for Members’ orders that yield fee
one establishing or changing a member
only one method. The Commission will code K. The Exchange proposes to
due, fee, or other charge imposed by the
post all comments on the Commission’s amend its Fee Schedule to increase this
Exchange under Section 19(b)(3)(A)(ii)
Internet Web site (http://www.sec.gov/ fee to $0.0026 per share. The proposed
of the Act 3 and Rule 19b–4(f)(2)
change represents a pass through of the
rules/sro.shtml). Copies of the thereunder,4 which renders the
rate that BATS Trading, Inc. (‘‘BATS
submission, all subsequent proposed rule change effective upon
Trading’’), the Exchange’s affiliated
amendments, all written statements filing with the Commission. The
routing broker-dealer, is charged for
with respect to the proposed rule Commission is publishing this notice to
routing orders to PSX when it does not
change that are filed with the solicit comments on the proposed rule
qualify for a volume tiered reduced fee.
Commission, and all written change from interested persons.
The proposed change is in response to
communications relating to the I. Self-Regulatory Organization’s PSX’s February 2015 fee change where
proposed rule change between the Statement of the Terms of Substance of PSX increased the fee to remove
Commission and any person, other than the Proposed Rule Change liquidity via routable order types it
those that may be withheld from the charges its customers, from a fee of
The Exchange filed a proposal to
public in accordance with the $0.0024 per share to a fee of $0.0025 per
amend its fees and rebates applicable to
provisions of 5 U.S.C. 552, will be share for Tape A securities and $0.0026
Members 5 of the Exchange pursuant to
available for Web site viewing and EDGX Rule 15.1(a) and (c) (‘‘Fee per share for Tapes B and C securities.6
printing in the Commission’s Public Schedule’’) to increase the fee for orders When BATS Trading routes to PSX, it
Reference Room, 100 F Street NE., yielding fee code K, which routes to will now be charged a standard rate of
Washington, DC 20549, on official NASDAQ OMX PSX (‘‘PSX’’) using $0.0025 per share for Tape A securities
business days between the hours of 10 ROUC or ROUE routing strategy. and $0.0026 per share for Tapes B and
a.m. and 3 p.m. Copies of the filing also The text of the proposed rule change C securities.7 BATS Trading will pass
will be available for inspection and is available at the Exchange’s Web site through this rate to the Exchange and
copying at the principal office of the the Exchange, in turn, will pass through
Exchange. All comments received will 26 17 CFR 200.30–3(a)(12). of a rate of $0.0026 per share to its
be posted without change; the 1 15 U.S.C. 78s(b)(1). Members. The proposed increase to the
2 17 CFR 240.19b–4.
Commission does not edit personal
mstockstill on DSK4VPTVN1PROD with NOTICES
3 15 U.S.C. 78s(b)(3)(A)(ii). 6 See PSX, Equity Trader Alert 2014–95, Updates
identifying information from 4 17 CFR 240.19b–4(f)(2). to PSX and BX Pricing for November 2014, dated
submissions. You should submit only 5 The term ‘‘Member’’ is defined as ‘‘any October 27, 2014 [sic], available at http://
information that you wish to make registered broker or dealer, or any person associated www.nasdaqtrader.com/
available publicly. All submissions with a registered broker or dealer, that has been MicroNews.aspx?id=ETA2014-95.
should refer to File Number SR–EDGA– admitted to membership in the Exchange. A 7 The Exchange notes that to the extent BATS
Member will have the status of a ‘‘member’’ of the Trading does or does not achieve any volume tiered
2015–10 and should be submitted on or Exchange as that term is defined in Section 3(a)(3) reduced fee on PSX, its rate for fee code K will not
before March 31, 2015. of the Act.’’ See Exchange Rule 1.5(n). change.
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![Federal Register / Vol. 80, No. 46 / Tuesday, March 10, 2015 / Notices 12661
fee under fee code K would enable the The Exchange does not believe that any • Send an email to rule-comments@
Exchange to equitably allocate its costs of these changes represent [sic] a sec.gov. Please include File No. SR–
among all Members utilizing fee code K. significant departure from previous EDGX–2015–05 on the subject line.
The Exchange proposes to implement pricing offered by the Exchange or
these amendments to its Fee Schedule pricing offered by the Exchange’s Paper Comments
on February 2, 2015. competitors. Additionally, Members • Send paper comments in triplicate
2. Statutory Basis may opt to disfavor EDGX’s pricing if to Brent J. Fields, Secretary, Securities
they believe that alternatives offer them
The Exchange believes that the and Exchange Commission, 100 F Street
better value. Accordingly, the Exchange
proposed rule change is consistent with NE., Washington, DC 20549–1090.
does not believe that the proposed
the objectives of Section 6 of the Act,8 changes will impair the ability of All submissions should refer to File No.
in general, and furthers the objectives of Members or competing venues to SR–EDGX–2015–05. This file number
Section 6(b)(4),9 in particular, as it is maintain their competitive standing in should be included on the subject line
designed to provide for the equitable the financial markets. The Exchange if email is used. To help the
allocation of reasonable dues, fees and believes that its proposal to pass
other charges among its Members and Commission process and review your
through a fee of $0.0026 per share for comments more efficiently, please use
other persons using its facilities. The Members’ orders that yield Flag K
Exchange believes that its proposal to only one method. The Commission will
would increase intermarket competition post all comments on the Commission’s
increase the pass through fee for because it offers customers an
Members’ orders that yield Flag K from Internet Web site (http://www.sec.gov/
alternative means to route to PSX. The rules/sro.shtml). Copies of the
$0.0024 per share to $0.0026 per share Exchange believes that its proposal
represents an equitable allocation of submission, all subsequent
would not burden intramarket
reasonable dues, fees, and other charges amendments, all written statements
competition because the proposed rate
among Members and other persons with respect to the proposed rule
would apply uniformly to all Members.
using its facilities because the Exchange change that are filed with the
does not levy additional fees or offer C. Self-Regulatory Organization’s Commission, and all written
additional rebates for orders that it Statement on Comments on the communications relating to the
routes to PSX through BATS Trading. Proposed Rule Change Received From proposed rule change between the
Prior to PSX’s February 2015 fee change, Members, Participants, or Others Commission and any person, other than
PSX charged its members, which those that may be withheld from the
includes BATS Trading, a fee of $0.0024 The Exchange has not solicited, and
does not intend to solicit, comments on public in accordance with the
per share to remove liquidity using non- provisions of 5 U.S.C. 552, will be
routable order types, which BATS this proposed rule change. The
Exchange has not received any available for Web site viewing and
Trading passed through to the Exchange
unsolicited written comments from printing in the Commission’s Public
and the Exchange charged to its
Members or other interested parties. Reference Room, 100 F Street NE.,
Members. In February 2015, PSX
increased the fee to remove liquidity via Washington, DC 20549, on official
III. Date of Effectiveness of the
routable order types it charges its business days between the hours of
Proposed Rule Change and Timing for
customers, from a fee of $0.0024 per 10:00 a.m. and 3:00 p.m. Copies of the
Commission Action
share to a fee of $0.0025 per share for filing also will be available for
Tape A securities and $0.0026 per share The foregoing rule change has become inspection and copying at the principal
for Tapes B and C securities.10 effective pursuant to Section 19(b)(3)(A) office of the Exchange. All comments
Therefore, the Exchange believes that its of the Act 11 and paragraph (f) of Rule received will be posted without change;
proposal to pass through a fee of 19b–4 thereunder.12 At any time within the Commission does not edit personal
$0.0026 per share for orders that yield 60 days of the filing of the proposed rule identifying information from
Flag K is equitable and reasonable change, the Commission summarily may submissions. You should submit only
because it accounts for the pricing temporarily suspend such rule change if information that you wish to make
changes on PSX. In addition, the it appears to the Commission that such available publicly. All submissions
proposal allows the Exchange to charge action is necessary or appropriate in the should refer to File No. SR–EDGX–
its Members a pass-through rate for public interest, for the protection of 2015–05 and should be submitted on or
orders that are routed to PSX. investors, or otherwise in furtherance of
before March 31, 2015.
Furthermore, the Exchange notes that the purposes of the Act.
routing through BATS Trading is For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated
voluntary. Lastly, the Exchange also
believes that the proposed amendment Interested persons are invited to authority.13
is non-discriminatory because it applies submit written data, views, and Brent J. Fields,
uniformly to all Members. arguments concerning the foregoing, Secretary.
including whether the proposed rule [FR Doc. 2015–05478 Filed 3–9–15; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P
B. Self-Regulatory Organization’s Comments may be submitted by any of
Statement on Burden on Competition the following methods:
mstockstill on DSK4VPTVN1PROD with NOTICES
These proposed rule changes do not Electronic Comments
impose any burden on competition that
is not necessary or appropriate in • Use the Commission’s Internet
furtherance of the purposes of the Act. comment form (http://www.sec.gov/
rules/sro.shtml); or
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(4). 11 15 U.S.C. 78s(b)(3)(A).
10 See supra note 6. 12 17 CFR 240.19b–4(f). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-21 09:34:58
Document Modified: 2018-02-21 09:34:58
| 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 12660 |
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