80 FR 17812 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees for the BATS One Market Data Product
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 63 (April 2, 2015)
Federal Register Volume 80, Issue 63 (April 2, 2015)
| Page Range | 17812-17816 | |
| FR Document | 2015-07520 |
[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)] [Notices] [Pages 17812-17816] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-07520] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74599; File No. SR-BYX-2015-19] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees for the BATS One Market Data Product March 27, 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 March 17, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or ``BYX'') 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 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 the market data section of its fee schedule to: (i) Establish a Digital Media Enterprise Fee for the BATS One Feed; and (ii) make a non-substantive change to the description of the BATS One Feed Enterprise fee. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the market data section of its fee schedule to: (i) Establish a Digital Media Enterprise Fee for the BATS One Feed; and (ii) make a non-substantive change to the description of the BATS One Feed Enterprise fee.\5\ --------------------------------------------------------------------------- \5\ The Exchange notes that the date of the fee schedule was amended to March 17, 2015 in a previously filed proposed rule change. See SR-BYX-2015-18 (filed March 17, 2015). --------------------------------------------------------------------------- The Commission recently approved a proposed rule change by the Exchange to establish a new market data product called the BATS One Feed \6\ as well as published proposed rule changes to [[Page 17813]] establish related fees.\7\ The BATS One Feed is a data feed that disseminates, on a real-time basis, the aggregate best bid and offer (``BBO'') of all displayed orders for securities traded on BYX and its affiliated exchanges \8\ and for which the BATS Exchanges report quotes under the Consolidated Tape Association (``CTA'') Plan or the Nasdaq/ UTP Plan.\9\ The BATS One Feed also contains the individual last sale information for the BATS Exchanges (collectively with the aggregate BBO, the ``BATS One Summary Feed''). In addition, the BATS One Feed contains optional functionality which enables recipients to receive aggregated two-sided quotations from the BATS Exchanges for up to five (5) price levels (``BATS One Premium Feed''). --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 73918 (December 23, 2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-EDGX-2014-25; SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) (Notice of Amendments No. 2 and Order Granting Accelerated Approval to Proposed Rule Changes, as Modified by Amendments Nos. 1 and 2, to Establish a New Market Data Product called the BATS One Feed) (``BATS One Approval Order''). \7\ See Securities Exchange Act Release Nos. 74282 (February 17, 2015), 80 FR 9487 (February 23, 2015) (SR-EDGX-2015-09); 74283 (February 18, 2015), 80 FR 9809 (February 24, 2015) (SR-EDGA-2015- 09); 74284 (February 18, 2015), 80 FR 9792 (February 24, 2015) (SR- BYX-2015-09); and 74285 (February 18, 2015), 80 FR 9828 (February 24, 2015) (SR-BATS-2015-11) (``BATS One Fee Proposals''). \8\ BYX's affiliated exchanges are EDGA Exchange, Inc. (``EDGA''), EDGX Exchange, Inc. (``EDGX''), and BATS Exchange, Inc. (``BZX'', together with EDGX, EDGA, and BYX, the ``BATS Exchanges''). On January 23, 2014, BATS Global Markets, Inc. (``BGMI''), the former parent company of the Exchange and BZX, completed its business combination with Direct Edge Holdings LLC, the parent company of EDGA and EDGX. See Securities Exchange Act Release No. 71375 (January 23, 2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013-039). Upon completion of the business combination, DE Holdings and BGMI each became intermediate holding companies, held under a single new holding company. The new holding company, formerly named ``BATS Global Markets Holdings, Inc.,'' changed its name to ``BATS Global Markets, Inc.'' and BGMI changed its name to ``BATS Global Markets Holdings, Inc.'' \9\ The Exchange understands that each of the BATS Exchanges will separately file substantially similar proposed rule changes with the Commission to implement fees for the BATS One Feed. --------------------------------------------------------------------------- BATS One Digital Media Enterprise Fee The Exchange proposes to amend its fee schedule to establish a Digital Media Enterprise Fee of $15,000 per month for the BATS One Summary Feed and $25,000 per month for the BATS One Premium Feed. As an alternative to User fees,\10\ a recipient firm may purchase a monthly Digital Media Enterprise license to receive the BATS One Feed from an External Distributor \11\ to distribute to an unlimited number of Professional and Non-Professional Users \12\ for viewing via television, Web sites, and mobile devices for informational and non- trading purposes only without having to account for the extent of access to the data or the report the number of Users to the Exchange. The Digital Media Enterprise Fee would be in addition to the Data Consolidation Fee.\13\ --------------------------------------------------------------------------- \10\ The Exchange assesses a monthly fee for Professional Users of $10.00 per User for receipt of the BATS One Summary Feed or $15.00 per User who elects to also receive the BATS One Premium Feed. Non-Professional Users are assessed a monthly fee of $0.25 per user for the BATS One Summary Feed or $0.50 per user for the BATS One Premium Feed. External Distributors must count every Professional User and Non-Professional User to which they provide BATS One Feed data. See BATS One Fee Proposals, supra note 7. \11\ As defined in the Exchange's fee schedule, an External Distributor of an Exchange Market Data product is a Distributor that receives the Exchange Market Data product and then distributes that data to a third party or one or more Users outside the Distributor's own entity. \12\ As defined in the Exchange's fee schedule, a User of an Exchange Market Data product is a natural person, a proprietorship, corporation, partnership, or entity, or device (computer or other automated service), that is entitled to receive Exchange data. A Non-Professional User of an Exchange Market Data product is a natural person who is not: (i) Registered or qualified in any capacity with the Commission, the Commodity Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association; (ii) engaged as an ``investment adviser'' as that term is defined in Section 201(11) of the Investment Advisers Act of 1940 (whether or not registered or qualified under that Act); or (iii) employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. A Professional User of an Exchange Market Data product is any User other than a Non- Professional User. \13\ The Data Consolidation Fee is $1,000 per month and is designed to reflect the value of the aggregation and consolidation function the Exchange performs in creating the BATS One Feed. See BATS One Fee Proposals, supra note 7. --------------------------------------------------------------------------- Non-Substantive Change to the Description of the BATS One Enterprise Fee The Exchange proposes a non-substantive change to the description of the BATS One Enterprise fee. The fee schedule currently states that, ``[a]s an alternative to User fees, a recipient firm may purchase a monthly Enterprise Fee to receive the BATS One Feed from an External Distributor for an unlimited number of Professional and Non- Professional Users.'' The Exchange proposes to amend this sentence in two ways. The first amendment is to state that a recipient firm may purchase a monthly Enterprise license, rather than Enterprise fee, as the term ``license'' is a more accurate description. The second is to specify that the recipient firm purchasing a monthly enterprise license does so to distribute the BATS One Feed to an unlimited number of Professional and Non-Professional Users. 2. Statutory Basis BATS One Digital Media Enterprise Fee The Exchange believes that the proposed Digital Media Enterprise Fee for the BATS One Feed is consistent with Section 6(b) of the Act,\14\ in general, and Section 6(b)(4) of the Act,\15\ in particular, in that it provides for an equitable allocation of reasonable fees among recipients of the data and is not designed to permit unfair discrimination among customers, brokers, or dealers. The Exchange also believes that the proposed rule change is consistent with Section 11(A) of the Act \16\ in that it supports (i) fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets and (ii) the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. Furthermore, the proposed rule change is consistent with Rule 603 of Regulation NMS,\17\ which provides that any national securities exchange that distributes information with respect to quotations for or transactions in an NMS stock do so on terms that are not unreasonably discriminatory. In adopting Regulation NMS, the Commission granted self-regulatory organizations and broker-dealers increased authority and flexibility to offer new and unique market data products to the public. It was believed that this authority would expand the amount of data available to consumers, and also spur innovation and competition for the provision of market data. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f. \15\ 15 U.S.C. 78f(b)(4). \16\ 15 U.S.C. 78k-1. \17\ See 17 CFR 242.603. --------------------------------------------------------------------------- In addition, the proposed fee is equitable and not unfairly discriminatory because it will apply uniformly to market data vendors, television broadcasters, Web site and mobile service providers. The Exchange believes it is reasonable to establish a lower cost fee structure that is designed to facilitate broader media distribution of the BATS One Data Feed for informational purposes because it will benefit investors generally. In establishing the Digital Media Enterprise Fee, the Exchange recognizes that there is demand for a more seamless and easier-to- administer data distribution mode that takes into account the expanded variety of media and communication devices that investors utilize today. The Exchange believes the Digital Media Enterprise Fee will be easy to administer because data recipients that purchase it would not be required to differentiate between Professional and Non-Professional Users, account for the extent of access [[Page 17814]] to the data, or report the number of Users. This is a significant reduction on a recipient firm's administrative burdens and is a significant value to investors. For example, a television broadcaster could display the BATS One Feed data during market-related programming and on its Web site or allow viewers to view the data via their mobile devices, creating a more seamless distribution model that will allow investors more choice in how they receive and view market data, all without having to account for and/or measure who accesses the data and how often they do so. The proposed Digital Media Enterprise Fee is equitable and reasonable because it will also enable recipient firms to more widely distribute data from the BATS One Feed to investors for informational purposes at a lower cost than is available today. For example, a recipient firm may purchase an Enterprise license in the amount of $50,000 per month for the BATS One Summary Feed and $100,000 per month for the BATS One Premium Feed to receive the BATS One Feed from an External Distributor for an unlimited number of Professional and Non- Professional Users, which is greater than the Digital Media Enterprise fee proposed herein. The Exchange also believes the amount of the Digital Enterprise [sic] is reasonable as compared to the existing Enterprise fees discussed above because the distribution of BATS One Feed data is limited to television, Web sites, and mobile devices for informational purposes only, while distribution of the BATS One Feed data pursuant to an Enterprise license contains no such limitation. The Exchange also believes that the proposed Digital Media Enterprise fee is equitable and reasonable because it is less than similar fees charged by other exchanges.\18\ --------------------------------------------------------------------------- \18\ The Nasdaq Stock Market offers proprietary data products for distribution over the internet and television under alternative fee schedules that are subject to maximum fee of $50,000 per month. See Nasdaq Rule 7039(b). The NYSE charges a Digit Media Enterprise fee of $40,000 per month for the NYSE Trade Digital Media product. See Securities Exchange Act Release No. 69272 (April 2, 2013), 78 FR 20983 (April 8, 2013) (SR-NYSE-2013-23). --------------------------------------------------------------------------- The Exchange has taken into consideration its affiliated relationship with BZX, EDGA, and EDGX in proposing the Digital Media Enterprise fee to assure that vendors would be able to offer a similar product on the same terms as the Exchange from a cost perspective. While the BATS Exchanges are the exclusive distributors of the individual data feeds from which certain data elements may be taken to create the BATS One Feed, they are not the exclusive distributors of the aggregated and consolidated information that comprises the BATS One Feed. As discussed in in [sic] the BATS One Fee Proposal,\19\ any entity may separately purchase the individual underlying products, and if they so choose, perform a similar aggregation and consolidation function that the Exchange performs in creating the BATS One Feed, and offer a data feed with the same information included in the BATS One Feed to sell and distribute it to its clients with no greater cost than the Exchange. --------------------------------------------------------------------------- \19\ See BATS One Fee Proposals, supra note 7. --------------------------------------------------------------------------- To enable such competition, the Exchange is offering the Digital Media Enterprise license for the BATS One Feed on terms that a subscriber of the underlying feeds could offer a competing product if it so chooses. The BATS One Feed is comprised of data included in EDGX Depth, EDGA Depth, BYX Depth, and BZX Depth.\20\ Currently, an External Distributor could create a competing product to the BATS One Premium Feed \21\ by purchasing each of these depth of book products from the individual BATS Exchanges and then performing its own aggregation and consolidation functions. The combined External Distributor fees for these individual data feeds of the BATS Exchanges is $12,500 per month.\22\ An External Distributor that seeks to create a competing product to the BATS One Summary Feed could instead subscribe to the following data feeds: EDGX Top, EDGX Last Sale, EDGA Top, EDGA Last Sale, BZX Top, BZX Last Sale, BYX Top, and BYX Last Sale,\23\ and then perform their own aggregation and consolidation function. The combined External Distributor fees for these individual data feeds of the BATS Exchanges is $5,000 per month.\24\ The Exchange proposes to charge a Digital Media Enterprise Fee ($15,000 per month for the BATS One Summary Feed and $25,000 per month for the BATS One Premium Feed, plus the $1,000 per month Data Consolidation fee) that exceeds the combined External Distributor fees for each of the individual feeds listed above to ensure that vendors could compete with the Exchange by creating the same product as the BATS One Feed to sell to their clients at no greater cost than the Exchange. --------------------------------------------------------------------------- \20\ See EDGA Rule 13.8, EDGX Rule 13.8, BZX Rule 11.22(a) and (c), and BYX Rule 11.22 (a) and (c) for a description of the depth of book feeds offered by each of the BATS Exchanges. \21\ Like the Exchange, an External Distributor would also be able to create a competing product to the BATS One Summary Feed from the data received via EDGX Depth, EDGA Depth, BYX Depth, and BZX Depth, without having to separately purchase the top and last sale feeds from each of the BATS Exchanges. \22\ The monthly External Distributor fee is $2,500 per month for EDGX Depth, $2,500 per month for EDGA Depth, $2,500 for BYX Depth, and $5,000 for BZX Depth. \23\ See supra note 6. See also BATS Rule 11.22(d) and (g). \24\ The monthly External Distributor fee is $1,250 per month for EDGX Top and EDGX Last Sale (as proposed herein), free for EDGA Top and EDGA Last Sale, $1,250 for BYX Top and BYX Last Sale, and $2,500 for BZX Top and BZX Last Sale. See BATS One Fee Proposals, supra note 7. --------------------------------------------------------------------------- The decision of the United States Court of Appeals for the District of Columbia Circuit in NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010), upheld the Commission's reliance upon the existence of competitive market mechanisms to set reasonable and equitably allocated fees for proprietary market data. In fact, the legislative history indicates that the Congress intended that the market system `evolve through the interplay of competitive forces as unnecessary regulatory restrictions are removed' and that the SEC wield its regulatory power `in those situations where competition may not be sufficient,' such as in the creation of a `consolidated transactional reporting system.' Id. at 535 (quoting H.R. Rep. No. 94-229 at 92 (1975), as reprinted in 1975 U.S.C.C.A.N. 323). The court agreed with the Commission's conclusion that ``Congress intended that `competitive forces should dictate the services and practices that constitute the U.S. national market system for trading equity securities.' '' \25\ --------------------------------------------------------------------------- \25\ NetCoalition, 615 F.3d at 535. --------------------------------------------------------------------------- As explained below in the Exchange's Statement on Burden on Competition, the Exchange believes that there is substantial evidence of competition in the marketplace for data and that the Commission can rely upon such evidence in concluding that the fees established in this filing are the product of competition and therefore satisfy the relevant statutory standards.\26\ In addition, the existence of alternatives to the BATS One Feed, including real-time consolidated data, free delayed consolidated data, and proprietary last sale data from other sources, as described below, further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably [[Page 17815]] discriminatory, when vendors and users can elect such alternatives. --------------------------------------------------------------------------- \26\ Section 916 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the ``Dodd-Frank Act'') amended paragraph (A) of Section 19(b)(3) of the Act, 15 U.S.C. 78s(b)(3), to make clear that all exchange fees for market data may be filed by exchanges on an immediately effective basis. --------------------------------------------------------------------------- As the NetCoalition decision noted, the Commission is not required to undertake a cost-of-service or ratemaking approach, and the Exchange incorporates by reference into this proposed rule change its affiliate's [sic] analysis of this topic in another rule filing.\27\ --------------------------------------------------------------------------- \27\ See Securities Exchange Act Release No. 63291 (Nov. 9, 2010), 75 FR 70311 (November 17, 2010) (SR-NYSEArca-2010-97). --------------------------------------------------------------------------- For these reasons, the Exchange believes that the proposed fees are reasonable, equitable, and not unfairly discriminatory. Non-Substantive Change to the Description of the BATS One Enterprise Fee The Exchange believes that the proposed change to the BATS One Enterprise Fee is consistent with Section 6(b) of the Act,\28\ in general, and Section 6(b)(4) of the Act,\29\ in particular, in that it provides for an equitable allocation of reasonable fees among recipients of the data and is not designed to permit unfair discrimination among customers, brokers, or dealers. The proposal to amend the description of the Enterprise fee within the fee schedule is equitable and reasonable because the changes are designed to clarify the fee schedule and avoid potential investor confusion. The proposed changes do not amend the amount or application of the BATS One Enterprise fee. The proposed changes are also non-discriminatory as they would apply to all recipient firms uniformly. --------------------------------------------------------------------------- \28\ 15 U.S.C. 78f. \29\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- 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. BATS One Digital Media Enterprise Fee The BATS One Feed Digital Media Enterprise fee will enhance competition because it provides investors with an alternative option for receiving market data and competes directly with similar market data products currently offered by the NYSE and Nasdaq.\30\ The Exchange notes that there is already actual competition for products similar to the BATS One Feed. The NYSE offers BQT which provides BBO and last sale information for the NYSE, NYSE Arca Equities, Inc. and NYSE MKT LLC.\31\ Nasdaq offers Nasdaq Basic, a filed market data product, and through its affiliate, offers NLS Plus which provides a unified view of last sale information similar to the BATS One Feed.\32\ The existence of these competing data products demonstrates that there is ample, existing competition for products such as the BATS One Feed and the fees associated by such products is constrained by competition. --------------------------------------------------------------------------- \30\ See Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (last visited May 29, 2014) (data feed offering the BBO and Last Sale information for all U.S. exchange- listed securities based on liquidity within the Nasdaq market center, as well as trades reported to the FINRA/Nasdaq Trade Reporting Facility (``TRF'')); Nasdaq NLS Plus, http://www.nasdaqtrader.com/Trader.aspx?id=NLSplus (last visited July 8, 2014) (data feed providing last sale data as well as consolidated volume from the following Nasdaq OMX markets for U.S. exchange- listed securities: Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and Nasdaq OMX PSX); Securities Exchange Act Release No. 73553 (November 6, 2014), 79 FR 67491 (November 13, 2014) (SR-NYSE-2014-40) (Notice of Amendment No. 1 and Order Granting Accelerated Approval to a Proposed Rule Change, as Modified by Amendment No.1, To Establish the NYSE Best Quote & Trades (``BQT'') Data Feed); http://www.nyxdata.com/Data-Products/NYSE-Best-Quote-and-Trades (last visited May 27, 2014) (data feed providing unified view of BBO and last sale information for the NYSE, NYSE Arca, and NYSE MKT). \31\ Id. \32\ Id. --------------------------------------------------------------------------- In establishing the proposed fees, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all Users. The existence of alternatives to the BATS One Feed, including the existing underlying feeds, consolidated data, and proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when vendors and subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if its cost to purchase is not justified by the returns any particular vendor or subscriber would achieve through the purchase. Finally, although the BATS Exchanges are the exclusive distributors of the individual data feeds from which certain data elements would be taken to create the BATS One Feed, the Exchange is not the exclusive distributor of the aggregated and consolidated information that would compose the BATS One Feed. The Exchange has taken into consideration its affiliated relationship with BZX, EDGA, and EDGX in its design of the BATS One Feed to assure that vendors would be able to offer a similar product on the same terms as the Exchange from a cost perspective. While the BATS Exchanges are the exclusive distributors of the individual data feeds from which certain data elements may be taken to create the BATS One Feed, they are not the exclusive distributors of the aggregated and consolidated information that comprises the BATS One Feed. As discussed in in the BATS One Fee Proposal,\33\ any entity may separately purchase the individual underlying products, and if they so choose, perform a similar aggregation and consolidation function that the Exchange performs in creating the BATS One Feed, and offer a data feed with the same information included in the BATS One Feed to sell and distribute it to its clients with no greater cost than the Exchange. --------------------------------------------------------------------------- \33\ See BATS One Fee Proposals, supra note 7. --------------------------------------------------------------------------- To enable such competition, the amount of the proposed Digital Media Enterprise license compared to the cost of the individual data feeds from the BATS Exchanges would enable a vendor to receive the underlying data feeds and offer a similar product on a competitive basis and with no greater cost than the Exchange. The amount of the proposed Digital Media Enterprise license, coupled with the Data Consolidation Fee, is not lower than the cost to a vendor of receiving the underlying data feeds to create a competing product. Therefore, the amount of the proposed Digital Media Enterprise license the Exchange would charge clients for the BATS One Feed compared to the cost of the individual data feeds from the BATS Exchanges would enable a vendor to receive the underlying data feeds and offer a similar product on a competitive basis and with no greater cost than the Exchange. Non-Substantive Change to the Description of the BATS One Enterprise Fee The proposal to amend the description of the Enterprise fee within the fee schedule will not have any impact on completion [sic]. The proposed changes are designed to clarify the fee schedule and avoid potential investor confusion and do not amend the amount or application of the BATS One Enterprise fee. [[Page 17816]] 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. 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 \34\ and paragraph (f) of Rule 19b-4 thereunder.\35\ 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. --------------------------------------------------------------------------- \34\ 15 U.S.C. 78s(b)(3)(A). \35\ 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 Number SR-BYX-2015-19 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BYX-2015-19. 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 20549-1090, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BYX- 2015-19, and should be submitted on or before April 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\36\ --------------------------------------------------------------------------- \36\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-07520 Filed 4-1-15; 8:45 am] BILLING CODE CODE 8011-01-P
![17812 Federal Register / Vol. 80, No. 63 / Thursday, April 2, 2015 / Notices
(C) Clearing Agency’s Statement on those that may be withheld from the filing with the Commission. The
Comments on the Proposed Rule public in accordance with the Commission is publishing this notice to
Change Received From Members, provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule
Participants, or Others available for Web site viewing and change from interested persons.
Written comments on the proposed printing in the Commission’s Public
Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
rule change were not and are not Statement of the Terms of Substance of
Washington, DC 20549 on official
intended to be solicited with respect to the Proposed Rule Change
business days between the hours of
the proposed rule change and none have
10:00 a.m. and 3:00 p.m. Copies of the The Exchange filed a proposal to
been received.
filing also will be available for amend the market data section of its fee
III. Date of Effectiveness of the inspection and copying at the principal schedule to: (i) Establish a Digital Media
Proposed Rule Change and Timing for office of OCC and on OCC’s Web site at Enterprise Fee for the BATS One Feed;
Commission Action http://www.theocc.com/components/ and (ii) make a non-substantive change
Within 45 days of the date of docs/legal/rules_and_bylaws/sr_occ_15_ to the description of the BATS One Feed
publication of this notice in the Federal 009.pdf. All comments received will be Enterprise fee.
posted without change; the Commission The text of the proposed rule change
Register or within such longer period
does not edit personal identifying is available at the Exchange’s Web site
up to 90 days (i) as the Commission may
information from submissions. You at www.batstrading.com, at the
designate if it finds such longer period
should submit only information that principal office of the Exchange, and at
to be appropriate and publishes its
you wish to make available publicly. the Commission’s Public Reference
reasons for so finding or (ii) as to which
All submissions should refer to File Room.
the self- regulatory organization
Number SR–OCC–2015–009 and should
consents, the Commission will: II. Self-Regulatory Organization’s
be submitted on or before April 23,
(A) by order approve or disapprove Statement of the Purpose of, and
2015.
the proposed rule change, or Statutory Basis for, the Proposed Rule
(B) institute proceedings to determine For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Change
whether the proposed rule change
authority.28 In its filing with the Commission, the
should be disapproved.
Brent J. Fields, Exchange included statements
IV. Solicitation of Comments Secretary. concerning the purpose of and basis for
Interested persons are invited to [FR Doc. 2015–07523 Filed 4–1–15; 8:45 am] the proposed rule change and discussed
submit written data, views and BILLING CODE CODE 8011–01–P any comments it received on the
arguments concerning the foregoing, proposed rule change. The text of these
including whether the proposed rule statements may be examined at the
change is consistent with the Act. SECURITIES AND EXCHANGE places specified in Item IV below. The
Comments may be submitted by any of COMMISSION Exchange has prepared summaries, set
the following methods: forth in Sections A, B, and C below, of
[Release No. 34–74599; File No. SR–BYX–
2015–19] the most significant parts of such
Electronic Comments statements.
• Use the Commission’s Internet Self-Regulatory Organizations; BATS A. Self-Regulatory Organization’s
comment form (http://www.sec.gov/ Y-Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and
rules/sro.shtml); or Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule
• Send an email to rule-comments@ Rule Change To Amend the Fees for Change
sec.gov. Please include File Number SR– the BATS One Market Data Product
OCC–2015–009 on the subject line. 1. Purpose
March 27, 2015.
Paper Comments Pursuant to Section 19(b)(1) of the The Exchange proposes to amend the
Securities Exchange Act of 1934 (the market data section of its fee schedule
• Send paper comments in triplicate to: (i) Establish a Digital Media
to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 17, Enterprise Fee for the BATS One Feed;
and Exchange Commission, 100 F Street and (ii) make a non-substantive change
NE., Washington, DC 20549–1090. 2015, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the to the description of the BATS One Feed
All submissions should refer to File Enterprise fee.5
Securities and Exchange Commission
Number SR–OCC–2015–009. This file The Commission recently approved a
(‘‘Commission’’) the proposed rule
number should be included on the proposed rule change by the Exchange
change as described in Items I and II
subject line if email is used. To help the to establish a new market data product
below, which Items have been prepared
Commission process and review your called the BATS One Feed 6 as well as
by the Exchange. The Exchange has
comments more efficiently, please use published proposed rule changes to
designated the proposed rule change as
only one method. The Commission will
one establishing or changing a member
post all comments on the Commission’s 5 The Exchange notes that the date of the fee
due, fee, or other charge imposed by the
Internet Web site (http://www.sec.gov/ schedule was amended to March 17, 2015 in a
Exchange under Section 19(b)(3)(A)(ii)
rules/sro.shtml). Copies of the previously filed proposed rule change. See SR–
of the Act 3 and Rule 19b–4(f)(2) BYX–2015–18 (filed March 17, 2015).
submission, all subsequent
thereunder,4 which renders the 6 See Securities Exchange Act Release No. 73918
tkelley on DSK3SPTVN1PROD with NOTICES
amendments, all written statements
proposed rule change effective upon (December 23, 2014), 79 FR 78920 (December 31,
with respect to the proposed rule 2014) (File Nos. SR–EDGX–2014–25; SR–EDGA–
change that are filed with the 28 17 CFR 200.30–3(a)(12).
2014–25; SR–BATS–2014–055; SR–BYX–2014–030)
Commission, and all written 1 15
(Notice of Amendments No. 2 and Order Granting
U.S.C. 78s(b)(1). Accelerated Approval to Proposed Rule Changes, as
communications relating to the 2 17 CFR 240.19b–4.
Modified by Amendments Nos. 1 and 2, to Establish
proposed rule change between the 3 15 U.S.C. 78s(b)(3)(A)(ii).
a New Market Data Product called the BATS One
Commission and any person, other than 4 17 CFR 240.19b–4(f)(2). Feed) (‘‘BATS One Approval Order’’).
VerDate Sep<11>2014 18:52 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\02APN1.SGM 02APN1](https://thefederalregister.org/doc/80_FR_17875/page/1.svg)
![Federal Register / Vol. 80, No. 63 / Thursday, April 2, 2015 / Notices 17813
establish related fees.7 The BATS One distribute to an unlimited number of for the BATS One Feed is consistent
Feed is a data feed that disseminates, on Professional and Non-Professional with Section 6(b) of the Act,14 in
a real-time basis, the aggregate best bid Users 12 for viewing via television, Web general, and Section 6(b)(4) of the Act,15
and offer (‘‘BBO’’) of all displayed sites, and mobile devices for in particular, in that it provides for an
orders for securities traded on BYX and informational and non-trading purposes equitable allocation of reasonable fees
its affiliated exchanges 8 and for which only without having to account for the among recipients of the data and is not
the BATS Exchanges report quotes extent of access to the data or the report designed to permit unfair
under the Consolidated Tape the number of Users to the Exchange. discrimination among customers,
Association (‘‘CTA’’) Plan or the The Digital Media Enterprise Fee would brokers, or dealers. The Exchange also
Nasdaq/UTP Plan.9 The BATS One Feed be in addition to the Data Consolidation believes that the proposed rule change
also contains the individual last sale Fee.13 is consistent with Section 11(A) of the
information for the BATS Exchanges Act 16 in that it supports (i) fair
Non-Substantive Change to the
(collectively with the aggregate BBO, the competition among brokers and dealers,
Description of the BATS One Enterprise
‘‘BATS One Summary Feed’’). In among exchange markets, and between
Fee
addition, the BATS One Feed contains exchange markets and markets other
optional functionality which enables The Exchange proposes a non- than exchange markets and (ii) the
recipients to receive aggregated two- substantive change to the description of availability to brokers, dealers, and
sided quotations from the BATS the BATS One Enterprise fee. The fee investors of information with respect to
Exchanges for up to five (5) price levels schedule currently states that, ‘‘[a]s an quotations for and transactions in
(‘‘BATS One Premium Feed’’). alternative to User fees, a recipient firm securities. Furthermore, the proposed
may purchase a monthly Enterprise Fee rule change is consistent with Rule 603
BATS One Digital Media Enterprise Fee to receive the BATS One Feed from an of Regulation NMS,17 which provides
The Exchange proposes to amend its External Distributor for an unlimited that any national securities exchange
fee schedule to establish a Digital Media number of Professional and Non- that distributes information with respect
Enterprise Fee of $15,000 per month for Professional Users.’’ The Exchange to quotations for or transactions in an
the BATS One Summary Feed and proposes to amend this sentence in two NMS stock do so on terms that are not
$25,000 per month for the BATS One ways. The first amendment is to state unreasonably discriminatory. In
Premium Feed. As an alternative to User that a recipient firm may purchase a adopting Regulation NMS, the
fees,10 a recipient firm may purchase a monthly Enterprise license, rather than Commission granted self-regulatory
monthly Digital Media Enterprise Enterprise fee, as the term ‘‘license’’ is organizations and broker-dealers
license to receive the BATS One Feed a more accurate description. The second increased authority and flexibility to
from an External Distributor 11 to is to specify that the recipient firm offer new and unique market data
purchasing a monthly enterprise license products to the public. It was believed
7 See Securities Exchange Act Release Nos. 74282 does so to distribute the BATS One Feed that this authority would expand the
(February 17, 2015), 80 FR 9487 (February 23, 2015) to an unlimited number of Professional
(SR–EDGX–2015–09); 74283 (February 18, 2015), 80 amount of data available to consumers,
FR 9809 (February 24, 2015) (SR–EDGA–2015–09);
and Non-Professional Users. and also spur innovation and
74284 (February 18, 2015), 80 FR 9792 (February 2. Statutory Basis competition for the provision of market
24, 2015) (SR–BYX–2015–09); and 74285 (February data.
18, 2015), 80 FR 9828 (February 24, 2015) (SR– BATS One Digital Media Enterprise Fee
BATS–2015–11) (‘‘BATS One Fee Proposals’’).
In addition, the proposed fee is
8 BYX’s affiliated exchanges are EDGA Exchange, The Exchange believes that the equitable and not unfairly
Inc. (‘‘EDGA’’), EDGX Exchange, Inc. (‘‘EDGX’’), and proposed Digital Media Enterprise Fee discriminatory because it will apply
BATS Exchange, Inc. (‘‘BZX’’, together with EDGX, uniformly to market data vendors,
EDGA, and BYX, the ‘‘BATS Exchanges’’). On television broadcasters, Web site and
product is a Distributor that receives the Exchange
January 23, 2014, BATS Global Markets, Inc.
Market Data product and then distributes that data mobile service providers. The Exchange
(‘‘BGMI’’), the former parent company of the
to a third party or one or more Users outside the
Exchange and BZX, completed its business
Distributor’s own entity.
believes it is reasonable to establish a
combination with Direct Edge Holdings LLC, the 12 As defined in the Exchange’s fee schedule, a lower cost fee structure that is designed
parent company of EDGA and EDGX. See Securities to facilitate broader media distribution
User of an Exchange Market Data product is a
Exchange Act Release No. 71375 (January 23, 2014),
79 FR 4771 (January 29, 2014) (SR–BATS–2013–
natural person, a proprietorship, corporation, of the BATS One Data Feed for
partnership, or entity, or device (computer or other informational purposes because it will
059; SR–BYX–2013–039). Upon completion of the
automated service), that is entitled to receive
business combination, DE Holdings and BGMI each
Exchange data. A Non-Professional User of an benefit investors generally.
became intermediate holding companies, held In establishing the Digital Media
Exchange Market Data product is a natural person
under a single new holding company. The new
holding company, formerly named ‘‘BATS Global
who is not: (i) Registered or qualified in any Enterprise Fee, the Exchange recognizes
capacity with the Commission, the Commodity that there is demand for a more
Markets Holdings, Inc.,’’ changed its name to
Futures Trading Commission, any state securities
‘‘BATS Global Markets, Inc.’’ and BGMI changed its
agency, any securities exchange or association, or seamless and easier–to-administer data
name to ‘‘BATS Global Markets Holdings, Inc.’’ distribution mode that takes into
any commodities or futures contract market or
9 The Exchange understands that each of the
BATS Exchanges will separately file substantially
association; (ii) engaged as an ‘‘investment adviser’’ account the expanded variety of media
as that term is defined in Section 201(11) of the and communication devices that
similar proposed rule changes with the Commission Investment Advisers Act of 1940 (whether or not
to implement fees for the BATS One Feed. registered or qualified under that Act); or (iii) investors utilize today. The Exchange
10 The Exchange assesses a monthly fee for
employed by a bank or other organization exempt believes the Digital Media Enterprise
Professional Users of $10.00 per User for receipt of from registration under federal or state securities Fee will be easy to administer because
the BATS One Summary Feed or $15.00 per User laws to perform functions that would require
who elects to also receive the BATS One Premium registration or qualification if such functions were
data recipients that purchase it would
Feed. Non-Professional Users are assessed a performed for an organization not so exempt. A not be required to differentiate between
tkelley on DSK3SPTVN1PROD with NOTICES
monthly fee of $0.25 per user for the BATS One Professional User of an Exchange Market Data Professional and Non-Professional
Summary Feed or $0.50 per user for the BATS One product is any User other than a Non-Professional Users, account for the extent of access
Premium Feed. External Distributors must count User.
every Professional User and Non-Professional User 13 The Data Consolidation Fee is $1,000 per
14 15 U.S.C. 78f.
to which they provide BATS One Feed data. See month and is designed to reflect the value of the
15 15 U.S.C. 78f(b)(4).
BATS One Fee Proposals, supra note 7. aggregation and consolidation function the
11 As defined in the Exchange’s fee schedule, an 16 15 U.S.C. 78k–1.
Exchange performs in creating the BATS One Feed.
External Distributor of an Exchange Market Data See BATS One Fee Proposals, supra note 7. 17 See 17 CFR 242.603.
VerDate Sep<11>2014 18:52 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\02APN1.SGM 02APN1](https://thefederalregister.org/doc/80_FR_17875/page/2.svg)
![17814 Federal Register / Vol. 80, No. 63 / Thursday, April 2, 2015 / Notices
to the data, or report the number of create the BATS One Feed, they are not Media Enterprise Fee ($15,000 per
Users. This is a significant reduction on the exclusive distributors of the month for the BATS One Summary Feed
a recipient firm’s administrative aggregated and consolidated and $25,000 per month for the BATS
burdens and is a significant value to information that comprises the BATS One Premium Feed, plus the $1,000 per
investors. For example, a television One Feed. As discussed in in [sic] the month Data Consolidation fee) that
broadcaster could display the BATS BATS One Fee Proposal,19 any entity exceeds the combined External
One Feed data during market-related may separately purchase the individual Distributor fees for each of the
programming and on its Web site or underlying products, and if they so individual feeds listed above to ensure
allow viewers to view the data via their choose, perform a similar aggregation that vendors could compete with the
mobile devices, creating a more and consolidation function that the Exchange by creating the same product
seamless distribution model that will Exchange performs in creating the BATS as the BATS One Feed to sell to their
allow investors more choice in how they One Feed, and offer a data feed with the clients at no greater cost than the
receive and view market data, all same information included in the BATS Exchange.
without having to account for and/or One Feed to sell and distribute it to its The decision of the United States
measure who accesses the data and how clients with no greater cost than the Court of Appeals for the District of
often they do so. Exchange. Columbia Circuit in NetCoalition v.
The proposed Digital Media To enable such competition, the SEC, 615 F.3d 525 (D.C. Cir. 2010),
Enterprise Fee is equitable and Exchange is offering the Digital Media upheld the Commission’s reliance upon
reasonable because it will also enable Enterprise license for the BATS One the existence of competitive market
recipient firms to more widely Feed on terms that a subscriber of the mechanisms to set reasonable and
distribute data from the BATS One Feed underlying feeds could offer a equitably allocated fees for proprietary
to investors for informational purposes competing product if it so chooses. The market data.
at a lower cost than is available today. BATS One Feed is comprised of data
In fact, the legislative history
For example, a recipient firm may included in EDGX Depth, EDGA Depth,
indicates that the Congress intended
purchase an Enterprise license in the BYX Depth, and BZX Depth.20
that the market system ‘evolve through
amount of $50,000 per month for the Currently, an External Distributor could
the interplay of competitive forces as
BATS One Summary Feed and $100,000 create a competing product to the BATS
unnecessary regulatory restrictions are
per month for the BATS One Premium One Premium Feed 21 by purchasing
removed’ and that the SEC wield its
Feed to receive the BATS One Feed each of these depth of book products
from the individual BATS Exchanges regulatory power ‘in those situations
from an External Distributor for an where competition may not be
unlimited number of Professional and and then performing its own aggregation
and consolidation functions. The sufficient,’ such as in the creation of a
Non-Professional Users, which is greater ‘consolidated transactional reporting
than the Digital Media Enterprise fee combined External Distributor fees for
these individual data feeds of the BATS system.’
proposed herein. The Exchange also Id. at 535 (quoting H.R. Rep. No. 94–
believes the amount of the Digital Exchanges is $12,500 per month.22 An
External Distributor that seeks to create 229 at 92 (1975), as reprinted in 1975
Enterprise [sic] is reasonable as U.S.C.C.A.N. 323). The court agreed
compared to the existing Enterprise fees a competing product to the BATS One
Summary Feed could instead subscribe with the Commission’s conclusion that
discussed above because the ‘‘Congress intended that ‘competitive
distribution of BATS One Feed data is to the following data feeds: EDGX Top,
EDGX Last Sale, EDGA Top, EDGA Last forces should dictate the services and
limited to television, Web sites, and practices that constitute the U.S.
mobile devices for informational Sale, BZX Top, BZX Last Sale, BYX
Top, and BYX Last Sale,23 and then national market system for trading
purposes only, while distribution of the equity securities.’ ’’ 25
BATS One Feed data pursuant to an perform their own aggregation and
consolidation function. The combined As explained below in the Exchange’s
Enterprise license contains no such
External Distributor fees for these Statement on Burden on Competition,
limitation. The Exchange also believes
individual data feeds of the BATS the Exchange believes that there is
that the proposed Digital Media
Exchanges is $5,000 per month.24 The substantial evidence of competition in
Enterprise fee is equitable and
Exchange proposes to charge a Digital the marketplace for data and that the
reasonable because it is less than similar
Commission can rely upon such
fees charged by other exchanges.18 19 See BATS One Fee Proposals, supra note 7. evidence in concluding that the fees
The Exchange has taken into 20 See EDGA Rule 13.8, EDGX Rule 13.8, BZX established in this filing are the product
consideration its affiliated relationship Rule 11.22(a) and (c), and BYX Rule 11.22 (a) and of competition and therefore satisfy the
with BZX, EDGA, and EDGX in (c) for a description of the depth of book feeds
offered by each of the BATS Exchanges. relevant statutory standards.26 In
proposing the Digital Media Enterprise
fee to assure that vendors would be able
21 Like the Exchange, an External Distributor addition, the existence of alternatives to
to offer a similar product on the same
would also be able to create a competing product the BATS One Feed, including real-time
to the BATS One Summary Feed from the data consolidated data, free delayed
terms as the Exchange from a cost received via EDGX Depth, EDGA Depth, BYX
perspective. While the BATS Exchanges Depth, and BZX Depth, without having to consolidated data, and proprietary last
are the exclusive distributors of the separately purchase the top and last sale feeds from sale data from other sources, as
individual data feeds from which
each of the BATS Exchanges. described below, further ensures that
22 The monthly External Distributor fee is $2,500
certain data elements may be taken to the Exchange cannot set unreasonable
per month for EDGX Depth, $2,500 per month for
EDGA Depth, $2,500 for BYX Depth, and $5,000 for
fees, or fees that are unreasonably
18 The Nasdaq Stock Market offers proprietary BZX Depth.
tkelley on DSK3SPTVN1PROD with NOTICES
23 See supra note 6. See also BATS Rule 11.22(d) 25 NetCoalition, 615 F.3d at 535.
data products for distribution over the internet and
television under alternative fee schedules that are and (g). 26 Section 916 of the Dodd-Frank Wall Street
subject to maximum fee of $50,000 per month. See 24 The monthly External Distributor fee is $1,250 Reform and Consumer Protection Act of 2010 (the
Nasdaq Rule 7039(b). The NYSE charges a Digit per month for EDGX Top and EDGX Last Sale (as ‘‘Dodd-Frank Act’’) amended paragraph (A) of
Media Enterprise fee of $40,000 per month for the proposed herein), free for EDGA Top and EDGA Section 19(b)(3) of the Act, 15 U.S.C. 78s(b)(3), to
NYSE Trade Digital Media product. See Securities Last Sale, $1,250 for BYX Top and BYX Last Sale, make clear that all exchange fees for market data
Exchange Act Release No. 69272 (April 2, 2013), 78 and $2,500 for BZX Top and BZX Last Sale. See may be filed by exchanges on an immediately
FR 20983 (April 8, 2013) (SR–NYSE–2013–23). BATS One Fee Proposals, supra note 7. effective basis.
VerDate Sep<11>2014 18:52 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\02APN1.SGM 02APN1](https://thefederalregister.org/doc/80_FR_17875/page/3.svg)
![Federal Register / Vol. 80, No. 63 / Thursday, April 2, 2015 / Notices 17815
discriminatory, when vendors and users Exchange notes that there is already Exchange has taken into consideration
can elect such alternatives. actual competition for products similar its affiliated relationship with BZX,
As the NetCoalition decision noted, to the BATS One Feed. The NYSE offers EDGA, and EDGX in its design of the
the Commission is not required to BQT which provides BBO and last sale BATS One Feed to assure that vendors
undertake a cost-of-service or information for the NYSE, NYSE Arca would be able to offer a similar product
ratemaking approach, and the Exchange Equities, Inc. and NYSE MKT LLC.31 on the same terms as the Exchange from
incorporates by reference into this Nasdaq offers Nasdaq Basic, a filed a cost perspective. While the BATS
proposed rule change its affiliate’s [sic] market data product, and through its Exchanges are the exclusive distributors
analysis of this topic in another rule affiliate, offers NLS Plus which provides of the individual data feeds from which
filing.27 a unified view of last sale information
certain data elements may be taken to
For these reasons, the Exchange similar to the BATS One Feed.32 The
create the BATS One Feed, they are not
believes that the proposed fees are existence of these competing data
products demonstrates that there is the exclusive distributors of the
reasonable, equitable, and not unfairly
ample, existing competition for aggregated and consolidated
discriminatory.
products such as the BATS One Feed information that comprises the BATS
Non-Substantive Change to the and the fees associated by such products One Feed. As discussed in in the BATS
Description of the BATS One Enterprise is constrained by competition. One Fee Proposal,33 any entity may
Fee In establishing the proposed fees, the separately purchase the individual
The Exchange believes that the Exchange considered the underlying products, and if they so
proposed change to the BATS One competitiveness of the market for choose, perform a similar aggregation
Enterprise Fee is consistent with proprietary data and all of the and consolidation function that the
Section 6(b) of the Act,28 in general, and implications of that competition. The Exchange performs in creating the BATS
Section 6(b)(4) of the Act,29 in Exchange believes that it has considered One Feed, and offer a data feed with the
particular, in that it provides for an all relevant factors in order to establish same information included in the BATS
equitable allocation of reasonable fees fair, reasonable, and not unreasonably One Feed to sell and distribute it to its
among recipients of the data and is not discriminatory fees and an equitable clients with no greater cost than the
designed to permit unfair allocation of fees among all Users. The Exchange.
discrimination among customers, existence of alternatives to the BATS
One Feed, including the existing To enable such competition, the
brokers, or dealers. The proposal to
underlying feeds, consolidated data, and amount of the proposed Digital Media
amend the description of the Enterprise
fee within the fee schedule is equitable proprietary data from other sources, Enterprise license compared to the cost
and reasonable because the changes are ensures that the Exchange cannot set of the individual data feeds from the
designed to clarify the fee schedule and unreasonable fees, or fees that are BATS Exchanges would enable a vendor
avoid potential investor confusion. The unreasonably discriminatory, when to receive the underlying data feeds and
proposed changes do not amend the vendors and subscribers can elect these offer a similar product on a competitive
amount or application of the BATS One alternatives or choose not to purchase a basis and with no greater cost than the
Enterprise fee. The proposed changes specific proprietary data product if its Exchange. The amount of the proposed
are also non-discriminatory as they cost to purchase is not justified by the Digital Media Enterprise license,
would apply to all recipient firms returns any particular vendor or coupled with the Data Consolidation
uniformly. subscriber would achieve through the Fee, is not lower than the cost to a
purchase. vendor of receiving the underlying data
Finally, although the BATS feeds to create a competing product.
B. Self-Regulatory Organization’s Exchanges are the exclusive distributors
Therefore, the amount of the proposed
Statement on Burden on Competition of the individual data feeds from which
Digital Media Enterprise license the
certain data elements would be taken to
The Exchange does not believe that create the BATS One Feed, the Exchange would charge clients for the
the proposed rule change will result in Exchange is not the exclusive BATS One Feed compared to the cost of
any burden on competition that is not distributor of the aggregated and the individual data feeds from the BATS
necessary or appropriate in furtherance consolidated information that would Exchanges would enable a vendor to
of the purposes of the Act, as amended. compose the BATS One Feed. The receive the underlying data feeds and
BATS One Digital Media Enterprise Fee offer a similar product on a competitive
as well as trades reported to the FINRA/Nasdaq basis and with no greater cost than the
The BATS One Feed Digital Media Trade Reporting Facility (‘‘TRF’’)); Nasdaq NLS Exchange.
Enterprise fee will enhance competition Plus, http://www.nasdaqtrader.com/
because it provides investors with an Trader.aspx?id=NLSplus (last visited July 8, 2014) Non-Substantive Change to the
(data feed providing last sale data as well as
alternative option for receiving market consolidated volume from the following Nasdaq
Description of the BATS One Enterprise
data and competes directly with similar OMX markets for U.S. exchange-listed securities: Fee
market data products currently offered Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and
by the NYSE and Nasdaq.30 The Nasdaq OMX PSX); Securities Exchange Act The proposal to amend the
Release No. 73553 (November 6, 2014), 79 FR 67491 description of the Enterprise fee within
(November 13, 2014) (SR–NYSE–2014–40) (Notice
27 See Securities Exchange Act Release No. 63291
of Amendment No. 1 and Order Granting the fee schedule will not have any
(Nov. 9, 2010), 75 FR 70311 (November 17, 2010) Accelerated Approval to a Proposed Rule Change, impact on completion [sic]. The
(SR–NYSEArca–2010–97). as Modified by Amendment No.1, To Establish the proposed changes are designed to clarify
tkelley on DSK3SPTVN1PROD with NOTICES
28 15 U.S.C. 78f. NYSE Best Quote & Trades (‘‘BQT’’) Data Feed);
29 15 U.S.C. 78f(b)(4). http://www.nyxdata.com/Data-Products/NYSE-
the fee schedule and avoid potential
30 See Nasdaq Basic, http:// Best-Quote-and-Trades (last visited May 27, 2014) investor confusion and do not amend
www.nasdaqtrader.com/ (data feed providing unified view of BBO and last the amount or application of the BATS
Trader.aspx?id=nasdaqbasic (last visited May 29, sale information for the NYSE, NYSE Arca, and
NYSE MKT).
One Enterprise fee.
2014) (data feed offering the BBO and Last Sale
31 Id.
information for all U.S. exchange-listed securities
based on liquidity within the Nasdaq market center, 32 Id. 33 See BATS One Fee Proposals, supra note 7.
VerDate Sep<11>2014 18:52 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\02APN1.SGM 02APN1](https://thefederalregister.org/doc/80_FR_17875/page/4.svg)
![17816 Federal Register / Vol. 80, No. 63 / Thursday, April 2, 2015 / Notices
C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be discharge an obligation to an Associate,
Statement on Comments on the available for Web site viewing and requiring SBA prior written exemption.
Proposed Rule Change Received From printing in the Commission’s Public Notice is hereby given that any
Members, Participants, or Others Reference Room, 100 F Street NE., interested person may submit written
The Exchange has neither solicited Washington, DC 20549–1090, on official comments on the transaction, within
nor received written comments on the business days between the hours of fifteen days of the date of this
proposed rule change. 10:00 a.m. and 3:00 p.m. Copies of such publication, to the Associate
filing also will be available for Administrator for the Office of
III. Date of Effectiveness of the inspection and copying at the principal Investment and Innovation, U.S. Small
Proposed Rule Change and Timing for office of the Exchange. All comments Business Administration, 409 Third
Commission Action received will be posted without change; Street SW., Washington, DC 20416.
The foregoing rule change has become the Commission does not edit personal Dated: March 17, 2015.
effective pursuant to Section 19(b)(3)(A) identifying information from Javier E. Saade,
of the Act 34 and paragraph (f) of Rule submissions. You should submit only
Associate Administrator for Office of
19b–4 thereunder.35 At any time within information that you wish to make Investment and Innovation.
60 days of the filing of the proposed rule available publicly. All submissions
[FR Doc. 2015–07582 Filed 4–1–15; 8:45 am]
change, the Commission summarily may should refer to File Number SR–BYX–
BILLING CODE CODE 8025–01–P
temporarily suspend such rule change if 2015–19, and should be submitted on or
it appears to the Commission that such before April 23, 2015.
action is necessary or appropriate in the For the Commission, by the Division of SMALL BUSINESS ADMINISTRATION
public interest, for the protection of Trading and Markets, pursuant to delegated
investors, or otherwise in furtherance of authority.36 [Disaster Declaration #14252 and #14253]
the purposes of the Act. Brent J. Fields,
Secretary.
New Hampshire Disaster #NH–00029
IV. Solicitation of Comments
Interested persons are invited to [FR Doc. 2015–07520 Filed 4–1–15; 8:45 am] AGENCY: U.S. Small Business
submit written data, views, and BILLING CODE CODE 8011–01–P Administration.
arguments concerning the foregoing, ACTION: Notice.
including whether the proposed rule
change is consistent with the Act. SMALL BUSINESS ADMINISTRATION SUMMARY: This is a Notice of the
Comments may be submitted by any of Presidential declaration of a major
the following methods: GMB Mezzanine Capital II, L.P. License disaster for Public Assistance Only for
No. 05/05–0299; Notice Seeking the State of NEW HAMPSHIRE (FEMA–
Electronic Comments Exemption Under Section 312 of the 4209–DR), dated 03/25/2015.
• Use the Commission’s Internet Small Business Investment Act, Incident: Severe Winter Storm and
comment form (http://www.sec.gov/ Conflicts of Interest Snowstorm.
rules/sro.shtml); or Incident Period: 01/26/2015 through
• Send an email to rule-comments@ Notice is hereby given that GMB 01/28/2015.
sec.gov. Please include File Number SR– Mezzanine Capital II, L.P., 50 South Effective Date: 03/25/2015.
BYX–2015–19 on the subject line. Sixth Street, Suite 1460, Minneapolis, Physical Loan Application Deadline
MN 55402, a Federal Licensee under the Date: 05/26/2015.
Paper Comments Small Business Investment Act of 1958, Economic Injury (EIDL) Loan
• Send paper comments in triplicate as amended (the ‘‘Act’’), in connection Application Deadline Date: 12/28/2015.
to Brent J. Fields, Secretary, Securities with the financing of a small concern,
ADDRESSES: Submit completed loan
and Exchange Commission, 100 F Street has sought an exemption under Section
applications to: U.S. Small Business
NE., Washington, DC 20549–1090. 312 of the Act and Section 107.730,
Administration, Processing And
All submissions should refer to File Financings which Constitute Conflicts
Disbursement Center, 14925 Kingsport
Number SR–BYX–2015–19. This file of Interest of the Small Business
Road, Fort Worth, TX 76155.
number should be included on the Administration (‘‘SBA’’) Rules and
Regulations (13 CFR 107.730). GMB FOR FURTHER INFORMATION CONTACT: A.
subject line if email is used. To help the
Mezzanine Capital II, L.P. proposes to Escobar, Office of Disaster Assistance,
Commission process and review your
provide subordinated debt financing to U.S. Small Business Administration,
comments more efficiently, please use
H & R Accounts, Inc. d.b.a. Avadyne 409 3rd Street SW., Suite 6050,
only one method. The Commission will
Health, Inc., 7017 John Deere Parkway, Washington, DC 20416.
post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ Moline, IL 61265. SUPPLEMENTARY INFORMATION: Notice is
rules/sro.shtml). Copies of the The financing is brought within the hereby given that as a result of the
submission, all subsequent purview of § 107.730(a)(4) of the President’s major disaster declaration on
amendments, all written statements Regulations because GMB Mezzanine 03/25/2015, Private Non-Profit
with respect to the proposed rule Capital, L.P., a current investor in H & organizations that provide essential
change that are filed with the R Accounts, Inc. and an Associate of services of governmental nature may file
Commission, and all written GMB Mezzanine Capital II, L.P., will disaster loan applications at the address
communications relating to the receive repayment of its subordinated listed above or other locally announced
locations.
tkelley on DSK3SPTVN1PROD with NOTICES
proposed rule change between the debt investment from the proceeds of
Commission and any person, other than GMB Mezzanine Capital II, L.P.’s The following areas have been
those that may be withheld from the proposed investment. Therefore, this determined to be adversely affected by
public in accordance with the transaction is considered providing the disaster:
financing to a Small Business to Primary Counties: Hillsborough;
34 15 U.S.C. 78s(b)(3)(A). Rockingham; Strafford.
35 17 CFR 240.19b–4(f). 36 17 CFR 200.30–3(a)(12). The Interest Rates are:
VerDate Sep<11>2014 18:52 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\02APN1.SGM 02APN1](https://thefederalregister.org/doc/80_FR_17875/page/5.svg)
Document Created: 2018-02-21 10:03:55
Document Modified: 2018-02-21 10:03:55
| 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 17812 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR