80 FR 13656 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 50 (March 16, 2015)

Page Range		13656-13660
FR Document		2015-05859
Federal Register, Volume 80 Issue 50 (Monday, March 16, 2015)
[Federal Register Volume 80, Number 50 (Monday, March 16, 2015)]
[Notices]
[Pages 13656-13660]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-05859]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74463; File No. SR-EDGX-2015-12]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of EDGX Exchange, Inc.

March 10, 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 26, 2015, EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') filed with the Securities and Exchange Commission 
(``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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 its fees and rebates 
applicable to Members \5\ of the Exchange pursuant to EDGX Rule 15.1(a) 
and (c) (``Fee Schedule'') related to the fees charged and rebates 
provided for executions occurring at the midpoint of the National Best 
Bid or Offer (``NBBO'') by: (i) Amending the descriptions of fee codes 
MM and MT; and (ii) adopting new fee code AM.
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    \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).
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    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 its Fee Schedule related to the fees 
charged and rebates provided for executions occurring at the midpoint 
of the NBBO by: (i) Amending the descriptions of fee codes MM and MT; 
and (ii) adopting new fee code AM.
Fee Code MM
    Fee code MM is applied to orders that add liquidity at the midpoint 
of the NBBO using: (i) A MidPoint Match Order; \6\ (ii) an order with a 
Hide Not Slide instruction; \7\ or (iii) an order with a Non-Displayed 
instruction.\8\ Orders yielding fee code MM are charged a fee of 
$0.0012 per share in securities priced at $1.00 or above and receive a 
rebate of $0.00003 per share in securities priced below $1.00. The 
Exchange proposes to reformat the description of fee code MM using 
numbers (1) through (3) to better delineate each transaction to which 
the fee code is applied.
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    \6\ See Rule 11.8(d) for a description of MidPoint Match Orders.
    \7\ See Rule 11.6(l)(1)(B) for a description of the Hide Not 
Slide instruction.
    \8\ See Rule 11.6(e)(2) for a description of the Non-Displayed 
instruction.
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    Pursuant to footnote 11 of the Fee Schedule, an order with a Non-
Displayed instruction will receive fee code MM where it executes 
against an order that receives fee code MT, as discussed below. The 
Exchange proposes to amend footnote 11 to specifically state that an 
order with a Non-Displayed instruction that adds liquidity at the 
midpoint of the NBBO will only receive fee code MM where it receives 
price improvement relative to its limit price (in contrast to an order 
receiving fee code AM, as proposed below). Footnote 11 also currently 
lists the three types of orders against which an order with a Non-
Displayed instruction will execute that results in fee code MM for such 
order, including orders with a Hide Not Slide instruction (as well as 
MidPoint Match Orders and orders with a Non-Displayed and Post Only 
instruction). The Exchange proposes to specify in footnote 11 that an 
order with a Non-Displayed instruction executing against an order with 
a Hide Not Slide instruction will receive fee code MM if the order with 
a Hide Not Slide instruction receives fee code MT because it also 
contains a Post Only instruction \9\ and the difference between the NBB 
and NBO is $0.01. The applicability of fee code MT to such orders with 
a Hide Not Slide instruction is described in further detail below and 
in proposed footnote 13. As described below, the Exchange proposes an 
update to footnote 3, which relates to a volume tier for orders that 
receive fee code MM, and to append footnote 3 to fee code MM, as this 
is the fee code to which the footnote pertains.
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    \9\ See Rule 11.6(n)(4) for a description of the Post Only 
instruction.
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    Neither the proposed changes to fee code MM nor the proposed 
changes to footnotes 3 and 11 are intended to amend the amount of the 
fees charged, the amount of the rebate provided or the transactions to 
which fee code MM is applied. The proposed changes are intended to 
clearly delineate the transactions to which fee code MM may be applied 
when adding liquidity at the midpoint of the NBBO.
Fee Code MT
    Fee code MT is applied to orders that remove liquidity at the 
midpoint of the NBBO using: (i) A MidPoint Match Order; (ii) an order 
with a Hide Not Slide instruction; or (iii) an order with a Non-
Displayed and Post Only

[[Page 13657]]

instruction. Orders yielding fee code MT are charged a fee of $0.0012 
per share in securities priced at $1.00 or above and 0.30% of the 
trade's dollar value in securities priced below $1.00. The Exchange 
proposes to reformat the description of fee code MT using numbers (1) 
through (3) to better delineate each type of transaction to which the 
fee code is applied. The Exchange also proposes to specify within the 
description of fee code MT that an order with a Non-Displayed and Post 
Only instruction that removes liquidity at the midpoint of the NBBO 
will receive fee code MT if such order receives price improvement 
relative to its limit price. As background for this change, an order 
with a Post Only instruction typically does not remove liquidity. 
However, pursuant to Rule 11.6(n)(4), an order with a Post Only 
instruction will remove contra-side liquidity from the EDGX Book \10\ 
under specific circumstances, including if the value of such execution 
when removing liquidity equals or exceeds the value of such execution 
if the order instead posted to the EDGX Book and subsequently provided 
liquidity, including the applicable fees charged or rebates provided. 
Thus, to the extent an order with a Non-Displayed and Post Only 
instruction would not receive price improvement at the midpoint of the 
NBBO relative to its limit price then it will not remove liquidity on 
entry based on the Post Only instruction on such order. Accordingly, 
the additional language proposed for fee code MT is intended to avoid 
potential confusion that all orders with a Non-Displayed and Post Only 
instruction will remove liquidity and receive such fee code.
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    \10\ See Rule 1.5(d) for the definition of the EDGX Book.
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    The Exchange also proposes to append footnote 13 to fee code MT. 
Proposed footnote 13 would further explain when an order with a Hide 
Not Slide instruction would remove liquidity at the midpoint of the 
NBBO and receive fee code MT. Specifically, as proposed, an order with 
a Hide Not Slide instruction that removes liquidity at the midpoint of 
the NBBO will receive fee code MT if such order also contains a Post 
Only instruction and the difference between the NBB and NBO is $0.01. 
As described in further detail below, by charging a lower fee of 
$0.0012 per share for an order with a Hide Not Slide and Post Only 
instruction, the Exchange facilitates an execution pursuant to its rule 
applicable to orders with a Post Only instruction (i.e., such orders 
will execute despite their Post Only instruction if economically in the 
best interest of the Member, as described above).\11\ If, instead, the 
Exchange assigned its standard fees in such a situation, an order with 
a Hide Not Slide and Post Only instruction would instead be posted to 
the EDGX Book because the price improvement associated with a midpoint 
execution when the spread of the NBBO is $0.01 would not be sufficient 
to result in an execution. The Exchange also proposes to state in 
footnote 13 that it will charge the standard fee to remove liquidity to 
any order with a Hide Not Slide instruction that does not contain a 
Post Only instruction and to any order with a Hide Not Slide and Post 
Only instruction that removes liquidity at the midpoint of the NBBO 
when the difference between the NBB and NBO is larger than $0.01.
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    \11\ The Exchange notes that a recently approved proposal to 
amend Exchange rules provided information regarding the execution of 
an order with a Hide Not Slide instruction and a Post Only 
instruction at the midpoint of the NBBO. See Securities Exchange Act 
Release No. 72676 (July 25, 2014), 79 FR 44520, 44535 (July 31, 
2014) (``Proposing Release''), ``Operation of Limit Orders with 
Displayed and Post Only Instructions,'' Example Number 1, Scenario 
Number 2. See also, Securities Exchange Act Release No. 73468 
(October 29, 2014), 79 FR 65450 (November 4, 2014) (SR-EDGX-2014-18) 
(``Approval Order''). The Exchange believes, however, that readers 
of the Exchange's fee schedule could benefit from additional detail 
with respect to this behavior.
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    Neither the proposed changes to fee code MT nor the addition of 
footnote 12 are intended to amend the amount of the fees charged or the 
transactions to which fee code MT is applied. These changes are 
intended to clearly delineate the transactions to which fee code MT may 
be applied when removing liquidity at the midpoint of the NBBO.
Fee Code AM
    The Exchange proposes to adopt new fee code AM, which would be 
applied to certain orders that add liquidity at the midpoint of the 
NBBO using: (i) An order with a Non-Displayed instruction; or (ii) an 
order with a Discretionary Range instruction.\12\ Under the Exchange's 
fee structure, executions of orders with a Non-Displayed instruction 
that add liquidity and to which fee code MM does not apply receive fee 
code HA and a rebate of $0.0015 per share. Further, orders with a 
Discretionary Range instruction receive either a rebate of $0.0020 per 
share if such orders include a Displayed instruction or a rebate of 
$0.0015 per share if such orders include a Non-Displayed 
instruction.\13\ As proposed, rather than receiving a rebate of $0.0015 
or $0.0020 per share when executing against incoming MidPoint Match 
Orders, such orders will yield fee code AM as described above and will 
not be charged a fee nor provided any rebate. The proposed pricing for 
fee code AM is applicable to both securities priced at $1.00 or above 
and securities priced below $1.00.
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    \12\ See Rule 11.6(d) for a description of the Discretionary 
Range instruction.
    \13\ Currently, such orders may receive an increased rebate 
where the Member qualifies for the Exchange's tier-based pricing 
structure. Orders yielding fee code AM will continue to count 
towards a Member's monthly ADV to determine whether that Member 
qualifies for an increased rebate or lower fee.
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    The Exchange also proposes to adopt footnote 12 to add additional 
detail regarding the situations in which an order with a Non-Displayed 
instruction that adds liquidity at the midpoint of the NBBO will 
receive fee code AM (rather than fee code MM). As proposed, an order 
that adds liquidity at the midpoint of the NBBO using an order with a 
Non-Displayed instruction will receive fee code AM if it receives no 
price improvement relative to its limit price and executes against the 
following orders that receive fee code MT: A MidPoint Match order and 
an order with a Non-Displayed and Post Only instruction. As explained 
in further detail below, the Exchange proposes to adopt footnote 12 to 
specifically differentiate between an order with a Non-Displayed 
instruction that receives price improvement relative to its limit 
price, which will receive fee code MM and pay a fee of $0.0012 per 
share in such circumstances, and an order with a Non-Displayed 
instruction that receives no price improvement relative to its limit 
price, which will receive fee code AM and neither pay a fee nor receive 
a rebate. A Member that submits an order with a Non-Displayed 
instruction that is resting on the Exchange likely anticipates to 
receive an execution with fee code HA, and thus, a rebate of $0.0015 
per share; however, the Exchange believes that assigning fee code MM 
and charging a fee when an execution occurs at a price better than an 
order's limit price is reasonable because it recognizes the value 
associated with the price improvement received by the Non-Displayed 
order as compared to the limit price of the order. In contrast, when a 
Member expects a rebate and receives no price improvement, the Exchange 
believes it is reasonable to provide an execution free of charge in 
order to facilitate an execution at the midpoint of the NBBO.
    Similarly, as proposed, an order with a Discretionary Range 
instruction will receive fee code AM where it adds liquidity at the 
midpoint of the NBBO and executes against a MidPoint Match

[[Page 13658]]

order. The Exchange believes it is reasonable to apply fee code AM to 
an order with a Discretionary Range instruction for reasons similar to 
those described above. Although a Member representing an order with a 
Discretionary Range instruction on the Exchange is likely expecting to 
receive a rebate for such execution, if the Member receives a midpoint 
execution against a MidPoint Match Order and receives fee code AM, such 
Member is at least receiving price improvement as compared to the NBB 
or NBO, as applicable.
    In addition to the changes described above, the Exchange proposes 
to modify footnote 3 to add fee code AM to the list of orders that 
contribute to the tier calculation specified in such footnote. Footnote 
3 describes the MidPoint Match Volume Tier, which results in executions 
without charge or rebate for any Member that adds liquidity yielding 
fee code MM if such Member adds or removed a combined ADV of 2,500,000 
shares resulting from various fee codes related to midpoint executions, 
including AA, MM or MT. The Exchange proposes to add fee code AM to 
this list, as executions receiving fee code AM will also be midpoint 
executions.
    The below examples illustrate when fee codes AM and MM would be 
applied to executions of specified orders at the midpoint of the NBBO.

Example--An Order With a Non-Displayed Instruction Adds Liquidity

    Assume the NBBO is $10.00 by $10.10, resulting in a midpoint of the 
NBBO of $10.05. Assume the Exchange receives an order with a Non-
Displayed and Book Only instruction \14\ to buy 100 shares at $10.05 
per share and that there is no available contra-side liquidity on the 
EDGX Book. The order to buy is posted to the EDGX Book non-displayed at 
$10.05, the midpoint of the NBBO. An incoming MidPoint Match Order to 
sell is entered and executes against the resting order to buy at 
$10.05, the midpoint of the NBBO. The order to buy with a Non-Displayed 
and Book Only instruction will receive fee code AM and will not be 
charged a fee because it added liquidity at the midpoint of the NBBO 
against an incoming Midpoint Match Order and did not receive price 
improvement relative to its limit price. The incoming MidPoint Match 
Order to sell will receive fee code MT and will be charged $0.0012 per 
share based on the Exchange's pre-existing pricing structure. The 
result would be the same if the incoming order was not a MidPoint Match 
Order but was instead an order with a Non-Displayed and Post Only 
instruction that removed liquidity on entry (i.e., priced at $10.04 or 
better, thus removing liquidity based on the economic best interest 
discussion above).
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    \14\ See Rule 11.6(n)(3) for a description of the Book Only 
instruction.
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    If, in the example above, the original order posted to the EDGX 
Book was an order with a Non-Displayed and Book Only instruction to buy 
100 shares at $10.06 per share, then the example above would still be 
accurate except that such order would receive fee code MM and would be 
charged a fee of $0.0012 per share because the order receives price 
improvement relative to its limit price when executed.\15\
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    \15\ As set forth in Rule 11.6(l)(3), an order with a Non-
Displayed instruction that is priced better than the midpoint of the 
NBBO is ranked at the midpoint of the NBBO with discretion to 
execute at its limit price. Thus, an order to buy at $10.06 with a 
Non-Displayed instruction would be re-priced to $10.05 with 
discretion to its limit price of $10.06. In turn, when the later 
arriving MidPoint Match Order arrives the execution would occur at 
$10.05, thus resulting in an execution $0.01 better than the limit 
price of the order with the Non-Displayed instruction.
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Example--An Order With a Discretionary Range Instruction Yields Fee 
Code AM

    Assume again that the NBBO is $10.00 by $10.10, resulting in a 
midpoint of the NBBO of $10.05. Assume the Exchange receives an order 
with a Displayed and Book Only instruction to buy 100 shares of a 
security at $10.00 per share and that such order also contains a 
Discretionary Range instruction to pay up to an additional $0.05 per 
share. Further assume that there is no available contra-side liquidity 
on the EDGX Book. The order to buy is posted to the EDGX Book at $10.00 
with discretion to pay up to $10.05. An incoming MidPoint Match Order 
to sell is entered and executes against the resting order with a 
Discretionary Range instruction to buy at $10.05, the midpoint of the 
NBBO. The order to buy with a Discretionary Range instruction will 
receive fee code AM and will not be charged a fee because it added 
liquidity at the midpoint of the NBBO against an incoming Midpoint 
Match Order. The incoming MidPoint Match Order will receive fee code MT 
and be charged $0.0012 per share based on the Exchange's pre-existing 
pricing structure.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule on March 2, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of section 6 of the Act,\16\ in general, and 
furthers the objectives of section 6(b)(4),\17\ 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 also notes that it operates in a highly-
competitive market in which market participants can readily direct 
order flow to competing venues if they deem fee levels at a particular 
venue to be excessive. The Exchange believes that the proposed rates 
are equitable and non-discriminatory in that they apply uniformly to 
all Members.
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    \16\ 15 U.S.C. 78f.
    \17\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes the proposed amendments to fee codes MM and 
MT are reasonable and equitable and not unfairly discriminatory because 
they provide additional specificity regarding the fees charged for 
executions occurring at the midpoint of the NBBO. The Exchange notes 
that the proposed changes to fee codes MM, MT, and the related 
footnotes do not amend the amount of the fees charged or rebate 
provided. Nor do the proposed changes to fee code MM, MT, or the 
related footnotes amend the transactions to which they may be applied. 
These changes are intended to amend the description of fee codes MM and 
MT to clearly delineate the transactions to which such fee codes are 
applied when adding liquidity and removing liquidity at the midpoint of 
the NBBO. Included within these changes are the changes to footnotes 11 
and 13 that specify when an order with a Hide Not Slide instruction 
will receive fee code MT (i.e., when also designated with a Post Only 
instruction and the difference between the NBB and NBO is $0.01). The 
Exchange believes that this pricing model is reasonable and equitable 
because it helps to facilitate executions at the midpoint of the NBBO 
that would not otherwise occur based on the Post Only instruction of 
such orders. Based on the foregoing, the proposed rule changes would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system, and, in general, protect investors 
and the public interest.
    The Exchange also believes the proposed new fee code AM is 
consistent with the objectives of section 6 of the Act,\18\ in general, 
and furthers the objectives of section 6(b)(4),\19\ in

[[Page 13659]]

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 because it will enable the Exchange to 
realign its pricing structure for such executions with its costs for 
providing such executions while continuing to enable the Exchange to 
offer competitive, incentive based pricing for executions occurring at 
the midpoint of the NBBO. The Exchange believes that all Members 
utilizing orders that are eligible for an execution at the midpoint 
receive a form of price improvement even when such price improvement is 
not measured against their limit price. Specifically, a midpoint 
execution is by definition a better price than executing at the NBB for 
an order to sell or NBO for an order to buy. Therefore, the Exchange 
believes it is reasonable and equitable to provide a free transaction 
(i.e., no fee or rebate) for those executions at the midpoint of the 
NBBO that yield fee code AM. The Exchange also believes that the 
proposed pricing for fee code AM is not unfairly discriminatory because 
it is tailored to balance competing interests of the Member that 
submitted the order to add liquidity (and likely expects a rebate) 
against the fact that such Member receives a midpoint execution, which 
is typically an execution that is charged a fee pursuant to the 
Exchange's fee structure based on the value of such execution when 
compared to the NBB or NBO.
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    \18\ 15 U.S.C. 78f.
    \19\ 15 U.S.C. 78f(b)(4).
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    The Exchange's fee structure is intended to reasonably and 
equitably allocate fees amongst Members that receive executions at the 
midpoint of the NBBO under various scenarios. For example, an order 
with a Non-Displayed instruction that adds liquidity at the midpoint of 
the NBBO that executes against an incoming MidPoint Match Order and 
receives price improvement relative to its limit price will receive fee 
code MM and pay a fee of $0.0012 per share. While such order has added 
liquidity, and thus the User that sent the order would typically expect 
a rebate, the Exchange believes that it is reasonable and equitable to 
impose a modest fee for such execution based on the price improvement 
received as compared to the order's limit price. In contrast, as 
proposed, that same order with a Non-Displayed instruction that 
similarly adds liquidity at the midpoint of the NBBO but receives no 
price improvement will yield fee code AM. Because such order has not 
received price improvement over its limit price but has received an 
execution between the NBB and NBO, the Exchange believes it is 
reasonable and equitable not to assess a fee nor to pay a rebate. The 
Exchange further believes it is reasonable and equitable not to provide 
a rebate in such a circumstance because of the midpoint execution 
received on such order--while not price improvement from an order's 
limit price, a midpoint execution is still price improvement as 
compared to the NBB or NBO, as applicable. The Exchange believes that 
the proposed pricing structure is reasonable and equitable because 
whether the order with a Non-Displayed instruction pays a fee or not in 
such circumstances is dependent on the order receiving price 
improvement. In addition, it is also reasonable and equitable to 
provide an order with a Discretionary Range instruction that adds 
liquidity at the midpoint of the NBBO against an incoming MidPoint 
Match Order with an execution at no charge because, as stated above, it 
will enable the Exchange to realign its fees and rebates for such 
executions while continuing to enable the Exchange to provide low cost 
midpoint executions for such orders. Lastly, the Exchange also believes 
that the proposed fee structure for fee code AM, MM and MT is not 
unfairly discriminatory because it applies uniformly to all Members and 
because all applicable order types and order instructions are equally 
available to all Members.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
Exchange believes that proposed amendments to fee codes MM and MT would 
not result in any burden on competition because they are not designed 
to have a competitive impact. Rather, such changes are proposed to 
provide additional specificity regarding the fees charged for 
executions occurring at the midpoint of the NBBO.
    The Exchange further believes that proposed fee code AM would 
increase intermarket competition because it would lead to more 
competition for orders that seek liquidity at the midpoint of the NBBO 
by continuing to allow the Exchange to offer competitive, incentive 
based pricing for midpoint executions. The Exchange believes that 
proposed fee code AM would neither increase nor decrease intramarket 
competition because it would to apply uniformly to all Members. As 
stated above, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues if the deem fee structures to be 
unreasonable or excessive.

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 \20\ and paragraph (f) of Rule 19b-4 
thereunder.\21\ 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.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f).
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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-EDGX-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-EDGX-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

[[Page 13660]]

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 a.m. and 3 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-EDGX-2015-12, and should be submitted on or before April 
6, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-05859 Filed 3-13-15; 8:45 am]
 BILLING CODE 8011-01-P
13660 Federal Register / Vol. 80, No. 50 / Monday, March 16, 2015 / Notices

change that are filed with the exemption from this requirement. A SECURITIES AND EXCHANGE
Commission, and all written broker-dealer that elects to take COMMISSION
communications relating to the advantage of the exemption must
proposed rule change between the publish its statements on its Web site in [Release No. 34–74465; File No. SR–ISE–
Commission and any person, other than a prescribed manner, and must maintain 2014–24]
those that may be withheld from the a toll-free number that customers can
public in accordance with the call to request a copy of the statements. Self-Regulatory Organizations;
provisions of 5 U.S.C. 552, will be International Securities Exchange,
available for Web site viewing and The purpose of the Rule is to ensure
LLC; Order Instituting Proceedings To
printing in the Commission’s Public that customers of broker-dealers are Determine Whether To Approve or
Reference Room, 100 F Street NE., provided with information concerning Disapprove a Proposed Rule Change
Washington, DC 20549, on official the financial condition of the firm that To Modify ISE’s Opening Process
business days between the hours of 10 may be holding the customers’ cash and
a.m. and 3 p.m. Copies of the filing also securities. The Commission, when March 10, 2015.
will be available for inspection and adopting the Rule in 1972, stated that I. Introduction
copying at the principal office of the the goal was to ‘‘directly’’ send a
Exchange. All comments received will customer essential information so that On November 19, 2014, the
be posted without change; the the customer could ‘‘judge whether his International Securities Exchange, LLC
Commission does not edit personal broker or dealer is financially sound.’’ (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with
identifying information from The Commission adopted the Rule in the Securities and Exchange
submissions. You should submit only response to the failure of several broker- Commission (the ‘‘Commission’’),
information that you wish to make dealers holding customer funds and pursuant to Section 19(b)(1) of the
available publicly. All submissions securities in the period between 1968 Securities Exchange Act of 1934 (the
should refer to File Number SR–EDGX– ‘‘Act’’),1 and Rule 19b–4 thereunder,2 a
and 1971.
2015–12, and should be submitted on or proposed rule change to modify the
before April 6, 2015. The Commission estimates that opening process of the Exchange. The
approximately 213 broker-dealer proposed rule change was published for
For the Commission, by the Division of
Trading and Markets, pursuant to delegated respondents carrying approximately 115 comment in the Federal Register on
authority.22 million public customer accounts incur December 10, 2014.3 On January 23,
Brent J. Fields, an average burden of 142,424 hours per 2015, the Commission extended the
Secretary. year to comply with the Rule. time period within which to approve
[FR Doc. 2015–05859 Filed 3–13–15; 8:45 am] An agency may not conduct or the proposed rule change, disapprove
BILLING CODE 8011–01–P sponsor, and a person is not required to the proposed rule change, or institute
respond to, a collection of information proceedings to determine whether to
under the PRA unless it displays a disapprove the proposed rule change, to
SECURITIES AND EXCHANGE March 10, 2015.4 The Commission
currently valid OMB control number.
COMMISSION received no comment letters on the
The public may view background proposed rule change. This order
Submission for OMB Review; documentation for this information institutes proceedings under Section
Comment Request collection at the following Web site: 19(b)(2)(B) of the Act 5 to determine
www.reginfo.gov. Comments should be whether to approve or disapprove the
Upon Written Request, Copies Available directed to: (i) Desk Officer for the proposed rule change.
From: Securities and Exchange
Securities and Exchange Commission,
Commission, Office of FOIA Services, II. Description of the Proposal
Office of Information and Regulatory
100 F Street NE., Washington, DC
20549–2736. Affairs, Office of Management and The Exchange proposes to (1) clarify
Budget, Room 10102, New Executive and codify existing functionality within
Extension: Rule 17a–5(c). Office Building, Washington, DC 20503, the trading system regarding the
SEC File No. 270–199, OMB Control No.
or by sending an email to: Shagufta_ procedures for initiation of the opening
3235–0199.
Ahmed@omb.eop.gov; and (ii) Pamela process, and (2) modify the manner in
Notice is hereby given that pursuant Dyson, Director/Chief Information which the Exchange’s trading system
to the Paperwork Reduction Act of 1995 opens trading at the beginning of the
Officer, Securities and Exchange
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the day and after trading halts.
Commission, c/o Remi Pavlik-Simon,
Securities and Exchange Commission According to the Exchange, the
(‘‘Commission’’) has submitted to the 100 F Street NE., Washington, DC
20549, or by sending an email to: PRA_ proposed rule change would codify
Office of Management and Budget certain existing functionality within the
(‘‘OMB’’) a request for approval of Mailbox@sec.gov. Comments must be
submitted to OMB within 30 days of trading system that was not previously
extension of the previously approved described in the Exchange’s rule and
collection of information provided for in this notice.
would provide new procedures for
Rule 17a–5(c), (17 CFR 240.17a–5(c)), Dated: March 10, 2015. initiation of the opening rotation at the
under the Securities Exchange Act of Brent J. Fields, Exchange’s opening and reopening after
1934 (15 U.S.C. 78a et seq.).
Secretary. a trading halt. A more detailed
Rule 17a–5(c) generally requires
Rmajette on DSK2VPTVN1PROD with NOTICES

broker-dealers who carry customer [FR Doc. 2015–05984 Filed 3–13–15; 8:45 am]
1 15 U.S.C. 78s(b)(1).
accounts to provide statements of the BILLING CODE 8011–01–P
2 17 CFR 240.19b–4.
broker-dealer’s financial condition to 3 See Securities Exchange Act Release No. 73736
their customers. Paragraph (5) of Rule (December 4, 2014), 79 FR 73354 (‘‘Notice’’).
17a–5(c) provides a conditional 4 See Securities Exchange Act Release No. 74126

(January 23, 2015), 80 FR 4953 (January 29, 2015).
22 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2)(B).

VerDate Sep<11>2014 14:09 Mar 13, 2015 Jkt 235001 PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 E:\FR\FM\16MRN1.SGM 16MRN1
Document Created: 2018-02-21 09:37:44
Document Modified: 2018-02-21 09:37:44
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 13656