80 FR 19722 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 11.8, 11.9, 11.10, 11.11, and 11.16 Regarding the Limit Up-Limit Down Plan
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 70 (April 13, 2015)
Federal Register Volume 80, Issue 70 (April 13, 2015)
| Page Range | 19722-19727 | |
| FR Document | 2015-08339 |
[Federal Register Volume 80, Number 70 (Monday, April 13, 2015)] [Notices] [Pages 19722-19727] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08339] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74663; File No. SR-EDGA-2015-15] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 11.8, 11.9, 11.10, 11.11, and 11.16 Regarding the Limit Up-Limit Down Plan April 7, 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 27, 2015, EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rules 11.8, 11.9, 11.10, 11.11, and 11.16, in order to conform Exchange Rules to the rules of BATS Exchange, Inc. (``BZX'') and BATS Y-Exchange, Inc. (``BYX'') as they relate to the Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS under the Act (the ``Limit Up- Limit Down Plan'' or ``Plan'').\3\ --------------------------------------------------------------------------- \3\ See BZX and BYX Rules 11.18(e). See Securities Exchange Act Release Nos. 69084 (March 8, 2013), 77 FR 16334 (March 14, 2013) (SR-BATS-2015-015) [sic]; and 69088 (March 8, 2013), 77 FR 16308 (March 14, 2013) (SR-BYX-2013-010). See also Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down Release''). --------------------------------------------------------------------------- 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 restructure and amend various Exchange Rules related to the applicability of the Plan in order to make the Exchange's Rules [[Page 19723]] identical to the corresponding rules on BZX and BYX, as further described below. In early 2014, the Exchange and its affiliate, EDGA Exchange, Inc. (``EDGA'') [sic], received approval to effect a merger (the ``Merger'') of the Exchange's parent company, Direct Edge Holdings LLC, with BATS Global Markets, Inc., the parent of BZX and BYX (together with BZX, EDGA, and EDGX, the ``BGM Affiliated Exchanges'').\4\ In the context of the Merger, the BGM Affiliated Exchanges are working to align certain system and regulatory functionality, retaining only intended differences between the BGM Affiliated Exchanges. Thus, the proposal set forth below is intended to amend Rules 11.8, 11.9, 11.10, 11.11, and 11.16 to make such Rules identical to corresponding rules on BZX and BYX related to the Plan. The Exchange does not propose to alter its current system functionality with regard to compliance with the Plan set forth under current Exchange Rules.\5\ Rather, the proposed rule change is designed to provide a consistent rule set across each of the BGM Affiliated Exchanges.\6\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 71449 (January 30, 2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-043; SR-EDGA- 2013-034). \5\ See Securities Exchange Act Release Nos. 69002 (February 27, 2013), 78 FR 14394 (March 5, 2013) (SR-EDGA-2013-08); and 69003 (February 27, 2013), 78 FR 14380 (March 5, 2013) (SR-EDGX-2013-08). \6\ See BZX and BYX Rules 11.18(e). The Exchange notes that EDGA [sic] intends to file a proposal very similar to this proposal that will align the rules related to the Plan across each of the BGM Affiliated Exchanges. --------------------------------------------------------------------------- Background The Plan is designed to prevent trades in individual NMS Stocks from occurring outside of specified Price Bands.\7\ As described more fully below, the requirements of the Plan are coupled with Trading Pauses to accommodate more fundamental price moves (as opposed to erroneous trades or momentary gaps in liquidity). All trading centers in NMS Stocks, including both those operated by Participants and those operated by members of Participants, are required to establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with the requirements specified in the Plan.\8\ As set forth in more detail in the Plan, Price Bands consisting of a Lower Price Band and an Upper Price Band for each NMS Stock are calculated by the Processors.\9\ When the National Best Bid (Offer) is below (above) the Lower (Upper) Price Band, the Processors shall disseminate such National Best Bid (Offer) with an appropriate flag identifying it as non-executable. When the National Best Bid (Offer) is equal to the Upper (Lower) Price Band, the Processors shall distribute such National Best Bid (Offer) with an appropriate flag identifying it as a Limit State Quotation.\10\ All trading centers in NMS Stocks must maintain written policies and procedures that are reasonably designed to prevent the display of offers below the Lower Price Band and bids above the Upper Price Band for NMS Stocks. Notwithstanding this requirement, the Processor shall display an offer below the Lower Price Band or a bid above the Upper Price Band, but with a flag that it is non-executable. Such bids or offers shall not be included in the National Best Bid (``NBB'') or National Best Offer (``NBO'') calculations.\11\ --------------------------------------------------------------------------- \7\ Unless otherwise specified, capitalized terms used in this rule filing are based on the defined terms of the Plan. \8\ The Exchange is a Participant in the Plan. \9\ See Section (V)(A) of the Plan. \10\ See Section VI(A) of the Plan. \11\ See Section VI(A)(3) of the Plan. --------------------------------------------------------------------------- Trading in an NMS Stock immediately enters a Limit State if the National Best Offer (Bid) equals but does not cross the Lower (Upper) Price Band.\12\ Trading for an NMS stock exits a Limit State if, within 15 seconds of entering the Limit State, all Limit State Quotations were executed or canceled in their entirety. If the market does not exit a Limit State within 15 seconds, then the Primary Listing Exchange would declare a five-minute Trading Pause pursuant to Section VII of the Limit Up-Limit Down Plan, which would be applicable to all markets trading the security.\13\ In addition, the Plan defines a Straddle State as when the National Best Bid (Offer) is below (above) the Lower (Upper) Price Band and the NMS Stock is not in a Limit State. For example, assume the Lower Price Band for an NMS Stock is $9.50 and the Upper Price Band is $10.50, such NMS stock would be in a Straddle State if the National Best Bid were below $9.50, and therefore non- executable, and the National Best Offer were above $9.50 (including a National Best Offer that could be above $10.50). If an NMS Stock is in a Straddle State and trading in that stock deviates from normal trading characteristics, the Primary Listing Exchange may declare a Trading Pause for that NMS Stock. --------------------------------------------------------------------------- \12\ See Section VI(B)(1) of the Plan. \13\ The primary listing market would declare a trading pause in an NMS Stock; upon notification by the primary listing market, the Processor would disseminate this information to the public. No trades in that NMS Stock could occur during the trading pause, but all bids and offers may be displayed. See Section VII(A) of the Plan. --------------------------------------------------------------------------- Proposed Amendment to Rule 11.9 Currently, Rule 11.9(a)(8) describes the priority of orders that are re-priced and displayed in accordance with the Plan. The Exchange is proposing to delete this clause and to include this information in Rule 11.16(e)(5) in order to adopt a consistent rule set as between the Exchange and the other BGM Affiliated Exchanges. The proposed rule text for Exchange Rule 11.16(e)(5) is directly based on BZX and BYX Rule 11.18(e)(5), and is described in greater detail below. The Exchange is not proposing to alter the priority handling of orders that are re- priced and displayed in accordance with the Plan, but rather, is proposing to adopt rule text that is identical to that of its affiliated exchanges to reduce potential confusion. Proposed Amendment to Rule 11.10 In sum, Rule 11.10(a)(3) sets forth the general rule that no executions shall occur outside the Price Bands during Regular Trading Hours. The Exchange proposes to amend Rule 11.10(a)(3) to further state that the Exchange's procedures for handling executing, re-pricing and displaying orders in connection with the Plan are further described in proposed Rule 11.16(e), which is discussed below. Current Rule 11.10(a)(3)(A) discusses how an order priced within the Price Bands may be executed or posted to the EDGA Book. Current Rule 11.10(a)(3)(B) explains how the Exchange will re-price an order that is priced outside of the Price Bands. The Exchange proposes to delete Rules 11.10(a)(3)(A) and (B) and replace them with Rule 11.16(e)(5). The proposed rule text for Exchange Rule 11.16(e)(5) is directly based on BZX and BYX Rule 11.18(e)(5) and is described more fully below. The Exchange is not proposing to alter the handling and re-pricing of orders that [sic] under the Plan, but rather, is proposing to adopt rule text that is identical to that of its affiliated exchanges to reduce potential confusion. The Exchange also proposes to delete Rule 11.10(a)(3)(C) and does not propose to include it as part of the amended rule set. Rule 11.10(a)(3)(C) states that a description of the behavior of routable market and Limit Orders in response to the Plan is found in Rule 11.11(b)(1). The Exchange believes this provision is no longer necessary as the Exchange's procedures for handling, executing, re- pricing, and displaying orders in connection with the Plan are proposed to be described in a single rule, Rule 11.16(e), rather than multiple rules as is currently the case. [[Page 19724]] The Exchange proposes to delete Rule 11.10(a)(3)(D), which discusses the handling of orders with a Short Sale instruction \14\ under the Plan, and replace it with Rule 11.16(e)(5)(E). The proposed rule text for Exchange Rule 11.16(e)(5)(E) is directly based on BZX and BYX Rule 11.18(e)(5)(E) and is described more fully below. The Exchange is not proposing to alter the handling of orders with a Short Sale instruction under the Plan, but rather, is proposing to relocate the text, with modifications, to Rule 11.16(e)(5)(E) as discussed below. --------------------------------------------------------------------------- \14\ A ``Short Sale'' instruction is defined as ``[a]n instruction on an order which shall have the same meaning as defined in Rule 200(a) of Regulation SHO.'' See Exchange Rule 11.6(o). --------------------------------------------------------------------------- The Exchange proposes to delete Rule 11.10(a)(3)(E) and replace it with Rule 11.16(e)(2) thru (4). Current Rule 11.10(a)(3)(E) states that pursuant to Section IV of the Plan all Trading Centers in NMS Stocks, including those operated by Members of the Exchange, shall establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with the requirements specified in Section VI of the Plan, and to comply with the Trading Pauses specified in Section VII of the Plan. The proposed rule text for Exchange Rule 11.16(e)(2) thru (4) expands upon this provision and is directly based on BZX and BYX Rule 11.18(e)(2) thru (4) described more fully below. Proposed Amendment to Rule 11.11 Rule 11.11 discusses the handling of orders that are to be routed to away trading centers. Paragraphs (b) thru (d) of Rule 11.11 discuss the routing of orders under the Plan. The Exchange proposes to delete Rules 11.11(b) thru (d) and replace them with Rule 11.16(e)(5)(D). The Exchange proposes to delete in its entirety Rule 11.11(b)(1) as this provision is no longer necessary as it is covered succinctly in new Rule 11.16(e)(5)(D). Rule 11.11(c), which discusses re-routing of orders under the Plan, will be moved to Rule 11.16(e)(5)(D)(i) with slight modifications. Rule 11.11(d), which discusses the operation of certain routing strategies under the Plan, will be moved to Rule 11.16(e)(5)(D)(ii) without change. Each of these changes are discussed in more detail below. Proposed Amendment to Rule 11.16 The Exchange is required by the Plan to establish, maintain, and enforce written policies and procedures that are reasonably designed to comply with the limit up-limit down and trading pause requirements specified in the Plan. In February 2013, the Exchange amended its Rules in connection with the implementation of the Plan.\15\ The Exchange now proposes to incorporate the provisions discussed above into Rule 11.16(e) in order to make the Exchange's Rules identical to the corresponding rules on BZX and BYX. The proposed amendments to Rule 11.16(e) are based on BZX and BYX Rules 11.18(e). The Exchange believes that the provisions proposed below are reasonably designed to prevent executions outside the Price Bands as required by the limit up-limit down and trading pause requirements specified in the Plan. --------------------------------------------------------------------------- \15\ See supra note 7 [sic]. --------------------------------------------------------------------------- First, the Exchange proposes to add Rule 11.16(e)(1) to provide that all capitalized terms not otherwise defined in paragraph (e) of the Rule shall have the meanings set forth in the Plan or Exchange Rules, as applicable. The Exchange also proposes to add Rules 11.16(e)(2) thru (4) described below. These provisions are based on BXZ and BYX Rules 11.18(e)(2) thru (4) and designed to replace deleted Rule 11.10(a)(3)(E), which states that the Exchange and its Members must establish policies and procedures that are reasonably designed to comply with the Plan. Specifically, the Exchange proposes to add Rule 11.16(e)(2) to provide that the Exchange is a Participant in, and subject to the applicable requirements of, the Plan, which establishes procedures to address extraordinary volatility in NMS Stocks. Further, the Exchange proposes to add Rule 11.16(e)(3) to provide that Exchange Members shall comply with the applicable provisions of the Plan. The Exchange believes the requirements of current Rule 11.10(a)(3)(E) would be sufficiently covered in proposed Rules 11.16(e)(2) and (3), which will help ensure the compliance by its Members with the provisions of the Plan as required pursuant to Section II(B) of the Plan.\16\ --------------------------------------------------------------------------- \16\ See Section II(B) of the Plan. --------------------------------------------------------------------------- The Exchange also proposes to add Rule 11.16(e)(4) to replace deleted Rule 11.10(a)(3)(E). Rule 11.16(e)(4) would provide that the Exchange's System \17\ shall not display or execute buy (sell) interest above (below) the Upper (Lower) Price Bands, unless such interest is specifically exempted under the Plan. The Exchange believes that this requirement is reasonably designed to help ensure the compliance with the limit up-limit down and trading pause requirements specified in the Plan by preventing executions outside the Price Bands as required pursuant to Section VI(A)(1) of the Plan.\18\ --------------------------------------------------------------------------- \17\ The ``System'' is defined in Exchange Rule 1.5(cc) as ``the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away.'' \18\ See Section VI(A)(1) of the Plan. --------------------------------------------------------------------------- As mentioned above, the Exchange proposes to incorporate the provisions of current Rules 11.9(a)(8) and 11.10(a)(3)(A) and (B) within Rule 11.16(e)(5) regarding the treatment of certain trading interest on the Exchange in order to prevent executions outside the Price Bands and to comply with the Plan. The Exchange is proposing to delete Rules 11.9(a)(8) and 11.10(a)(3)(A) and (B) to include this information in Rule 11.16(e)(5) in order to adopt a consistent rule set as between the Exchange and the other BGM Affiliated Exchanges. Proposed Rule 11.16(e)(5) is based on BZX and BYX Rules 11.18(e)(5). Current Rule 11.9(a)(8) describes the priority of orders that are re-priced and displayed in accordance with the Plan. Specifically, Rule 11.9(a)(8) states that if the Upper (Lower) Price Band moves so that the price of a buy (sell) order resting on the EDGA Book would consequently be above (below) the Upper (Lower) Price Band, such order will be re-priced and displayed at a price equal to the Upper (Lower) Price Band, provided a new timestamp, and prioritized based on its existing timestamp at the time the new Price Bands are established. If an order is resting on the EDGA Book at a price equal to the Upper (Lower) Price Band, such order will not be re-priced but will be provided a new timestamp and prioritized based on its existing timestamp at the time the new Price Bands are established. Likewise, under proposed Rule 11.16(e)(5), when re-pricing resting orders because such orders are above (below) the Upper (Lower) Price Band, the Exchange will provide new timestamps to such orders. The Exchange will also provide new timestamps to resting orders at the less aggressive price to which such orders are re-priced. Any resting interest that is re-priced pursuant to Rule 11.16(e)(5) shall maintain priority ahead of interest that was originally less aggressively priced, regardless of the original timestamps for such orders. The Exchange is not proposing to alter the priority handling of orders that are re-priced and displayed in accordance with the Plan, but rather, is proposing to adopt rule text that is identical to that of its affiliated exchanges to reduce potential confusion. While the text of [[Page 19725]] current Rule 11.9(a)(8) is not identical to proposed Rule 11.16(e)(5), the Exchange proposes to adopt language identical to BZX and BYX Rules 11.18(e)(5), which it believes more clearly describes system functionality. Current Rules 11.10(a)(3)(A) and (B) address the handling and re- pricing of orders under the Plan. Rule 11.10(a)(3)(A) discusses how an order priced within the Price Bands may be executed or posted to the EDGA Book by stating that a non-routable buy (sell) order that is entered into the System at a price less (greater) than or equal to the Upper (Lower) Price Band will be posted to the EDGA Book or executed, unless: (i) the order includes a Time-in-Force Instruction (``TIF'') of Immediate or Cancel (``IOC'') or Fill-or-Kill (``FOK''), in which case it will be cancelled if not executed; or (ii) the User has entered instructions to cancel \19\ the order. Rule 11.10(a)(3)(B) explains how the Exchange will re-price an order that is priced outside of the Price Bands by stating that a non-routable buy (sell) order at a price greater (less) than the Upper (Lower) Price Band will be re-priced and displayed at the price of the Upper (Lower) Price Band. If the price of the Upper (Lower) Price Band moves above (below) the non-routable buy (sell) order's displayed price, the buy (sell) order will not be adjusted further and will remain posted at the original price at which it was posted to the EDGA Book. If the Upper (Lower) Price Band crosses a non-routable buy (sell) order resting on the EDGA Book, the buy (sell) order will be re-priced to the price of the Upper (Lower) Price Band. --------------------------------------------------------------------------- \19\ Under the Cancel Back instruction, a User may instruct the System to immediately cancel the order when, if displayed by the System on the EDGA Book at the time of entry, or upon return to the System after being routed away, would create a violation of Rule 610(d) of Regulation NMS or Rule 201 of Regulation SHO, or the order cannot otherwise be executed or posted by the System to the EDGA Book at its limit price. See Exchange Rule 11.6(b). --------------------------------------------------------------------------- Likewise, proposed Rule 11.16(e)(5) discusses the re-pricing and cancellation of interest and specifically provides that the Exchange systems shall re-price and/or cancel buy (sell) interest that is priced or could be executed \20\ above (below) the Upper (Lower) Price Band. The Exchange is not proposing to alter the handling or re-pricing of orders under the Plan, but rather, is proposing to adopt rule text that is identical to that of its affiliated exchanges to reduce potential confusion. The Exchange notes that while the format of current Rules 11.10(a)(3)(A) and (B) are not identical to that of proposed Rule 11.16(e)(5), the Exchange proposes to include the following provisions under Rule 11.16(e)(5) regarding the re-pricing or canceling of certain trading interest that are similar to BZX and BYX Rule 11.18(e)(5), which if [sic] believes continue to accurately describe system functionality and provide additional specificity, the specifics of which are described under each subsection of proposed Rule 11.16(e)(5) set forth below. --------------------------------------------------------------------------- \20\ The Exchange notes that this includes any interest that is displayed and/or resting at a less aggressive price but executable at a more aggressive price, such as orders subject to price sliding and discretionary order types. --------------------------------------------------------------------------- Market Orders and Orders With a TIF of IOC or FOK Proposed Rule 11.16(e)(5)(A) would state that the System will only execute Market Orders or orders with a TIF instruction of IOC or FOK at or within the Price Bands. If a Market Order or order with a TIF instruction of IOC or FOK cannot be fully executed at or within the Price Bands, the System shall cancel any unexecuted portion of the order without posting such order to the EDGA Book. This provision is similar to current Rule 11.10(a)(3)(A). The Rule would also state that the display of Market Orders will be handled in accordance with Rule 11.8(a)(4). Limit Orders The operation of Limit Orders under the Plan would be set forth in Rule 11.16(e)(5)(B), which would include the following provisions.Orders Not Subject to Re-Pricing. Limit Orders will be cancelled if a User has entered instructions not to use the re-pricing process set forth in Rule 11.16(e)(5) and such interest to buy (sell) is priced above (below) the Upper (Lower) Price Band. Incoming Orders. If re-pricing is permitted based on a User's instructions, both displayable and non-displayable incoming Limit Orders to buy (sell) that are priced above (below) the Upper (Lower) Price Band shall be re-priced to the Upper (Lower) Price Band. Resting Orders. The System shall re-price resting Limit Orders to buy (sell) to the Upper (Lower) Price Band if Price Bands move such that the price of resting Limit Orders to buy (sell) would be above (below) the Upper (Lower) Price Band. If the Price Bands move again and the original limit price of a displayed and re-priced Limit Order is at or within the Price Bands and a User has opted into the Exchange's optional multiple re-pricing process, as described in Rule 11.6(l), the System shall re-price such displayed limit interest to the most aggressive permissible price up to the order's limit price. All other displayed and non-displayed limit interest re-priced pursuant to paragraph (e) of Rule 11.16 will remain at its new price unless the Price Bands move such that the price of resting Limit Order to buy (sell) would again be above (below) the Upper (Lower) Price Band. Orders With a Pegged Instruction \21\ --------------------------------------------------------------------------- \21\ The ``Pegged'' instruction is described under Rule 11.6(j). --------------------------------------------------------------------------- Currently, the operation of orders with a Pegged instruction under the Plan is not specifically addressed in the Exchange's Rules. Therefore, the Exchange proposes to adopt Rule 11.16(e)(5)(C) which would state that orders with a Pegged instruction to buy (sell) shall peg to the specified pegging price or the Upper (Lower) Price Band, whichever is lower (higher). Rule 11.16(e)(5)(c) is similar to BZX and BYX Rules 11.18(e)(5)(C). Routable Orders The Exchange proposes to delete Rules 11.11(b) thru (d), which discuss the routing of orders under the Plan, and replace them with Rule 11.16(e)(5)(D). The Exchange is not proposing any changes to its routing functionality in connection with the implementation of the Plan. The Exchange proposes to delete in its entirety Rule 11.11(b)(1), which states when an order may be routed under the Plan, as these provisions are no longer necessary as they are covered succinctly in new Rule 11.16(e)(5)(D). Rule 11.16(e)(5)(D) would state that if routing is permitted based on a User's instructions, orders shall be routed away from the Exchange pursuant to Rule 11.11, provided that the System shall not route buy (sell) interest at a price above (below) the Upper (Lower) Price Band.\22\ Rule 11.11(c), which discusses re-routing of orders under the Plan, will be moved to Rule 11.16(e)(5)(D)(i) with slight modifications. Current Rule 11.11(c) states that for routing strategies that access all Protected Quotations, when the Upper (Lower) Price Band adjusts such that the NBO (NBB) becomes executable, a routable buy (sell) Market or marketable Limit Order will be eligible to be re-routed by the Exchange. Likewise, Rule 11.16(e)(5)(D)(i) would state that when the Upper (Lower) Price [[Page 19726]] Band adjusts such that the NBO (NBB) becomes executable, a routable buy (sell) Market or marketable Limit Order will be eligible to be re- routed by the Exchange if such order contains an Aggressive \23\ or Super Aggressive \24\ instruction.\25\ Rule 11.11(d), which discusses the operation of certain routing strategies under the Plan, will be moved to Rule 11.16(e)(5)(D)(ii) without change. Rule 11.16(e)(5)(D)(ii) would state that routing strategies SWPA and SWPB (together, ``SWP''), as described in Rule 11.11(g), are eligible for routing in accordance with the Plan as follows: the System will immediately cancel orders utilizing an SWP routing strategy when an order to buy utilizing an SWP routing strategy has a limit price that is greater than the Upper Price Band or if a sell order utilizing an SWP routing strategy has a limit price that is less than the Lower Price Band. Proposed Rule 11.16(e)(5)(D)(ii) is similar to BZX and BYX Rule 11.13(a)(3)(I).\26\ --------------------------------------------------------------------------- \22\ This provision shall also replace current Rule 11.10(a)(3)(C) which states that the description of the behavior of routable Market Orders and Limit Orders in response to the Plan is set forth in Rule 11.11(b)(1). \23\ The ``Aggressive'' instruction is described under Rule 11.6(n)(1). \24\ The ``Super Aggressive'' instruction is described under Rule 11.6(n)(2). \25\ The Exchange notes that this provision is not included in BZX or BYX Rule 11.18(e), but the Exchange believes it provides additional detail that was included in current Exchange Rule 11.11(c) that is helpful to retain in proposed Rule 11.16(e)(5)(D)(i). \26\ The Exchange notes that its proposal to include current Rule 11.11(d) within proposed Rule 11.16(e)(5)(D)(ii), rather than within its Rule 11.11(g) which describes each of its routing strategies, differs from the location of the same provision under BZX and BYX Rule 11.13(a)(3), which describes BZX and BYX's routing strategies. --------------------------------------------------------------------------- Orders With a Short Sale Instruction The Exchange proposes to replace current Rule 11.10(a)(3)(D), which discusses the handling of orders with a Short Sale instruction under the Plan, with proposed Rule 11.16(e)(5)(E). The proposed rule text for Exchange Rule 11.16(e)(5)(E) is directly based on BZX and BYX Rule 11.18(e)(5)(E). Current Rule 11.10(a)(3)(D) states that where a short sale order is entered into the System with a limit price below the Lower Price Band and a short sale price test restriction under Rule 201 of Regulation SHO is in effect, the System will re-price such order to the Lower Price Band as long as the Lower Price Band is at a Permitted Price.\27\ When an order with a Short Sale instruction is entered into the System with a limit price above the Lower Price Band and a short sale price test restriction under Rule 201 of Regulation SHO is in effect, the System will re-price such order, if necessary, at a Permitted Price. Likewise, proposed Rule 11.16(e)(5)(E) would state that where a short sale price restriction under Rule 201 of Regulation SHO is in effect, orders with a Short Sale instruction priced below the Lower Price Band shall be re-priced to the higher of the Lower Price Band or the Permitted Price. The Exchange is not proposing to alter the handling of orders with a Short Sale instruction that under the Plan, but rather, is proposing to relocate the text, with modifications, to Rule 11.16(e)(5)(E) discussed above. --------------------------------------------------------------------------- \27\ The term ``Permitted Price'' is defined in Rule 11.6(k). --------------------------------------------------------------------------- Other Amendments to Rule 11.16 The Exchange also proposes to relocate Rule 11.16(c), which discusses the re-opening of trading following a trading halt, to proposed Rule 11.16(e)(6), with minor modifications. Current Rule 11.16(c) states that the re-opening of trading following a trading halt will be conducted pursuant to procedures adopted by the Exchange and communicated by notice to its Members. The Exchange recently codified its opening process, including its re-opening process follow a halt, suspension or pause, under Rule 11.7.\28\ Therefore, with respect to the re-opening of trading following a Trading Pause, the Exchange proposes to adopt Rule 11.16(e)(6) to provide that the Exchange shall re-open the security as set forth in Rule 11.7(e), which is the Exchange's Rule describing the Exchange's re-opening process following a trading halt, suspension or pause. --------------------------------------------------------------------------- \28\ See Securities Exchange Act Release Nos. 73468 (October 29, 2014), 79 FR 65450 (November 4, 2014) (SR-EDGX-2014-18); and 73592 (November 13, 2014), 79 FR 68937 (November 19, 2014) (SR-EDGA-2014- 20). --------------------------------------------------------------------------- The Exchange also proposes to delete Rule 11.16(d) which discusses when the Exchange may resume trading where the Primary Listing Market issues an individual stock trading pause and how individual stock trading pauses are to be handled during Phase I of the Plan. Interpretation and Policy .01 to Rule 11.16 states that the provisions of paragraph (d) of this Rule shall be in effect during a pilot set to end on the earlier of the initial date of operations of the Regulation NMS Plan to Address Extraordinary Market Volatility or February 4, 2014. Phase I of the Plan has expired and the Exchange, therefore, proposes to delete Rule 11.16(d) as well as Interpretation and Policy .01 to Rule 11.16 as they are no longer relevant. Lastly, the Exchange proposes the following additional amendments to Rule 11.16: (i) Renumber paragraph (f) as (d); (ii) delete current Rule 11.16(e) and replace it with new paragraph (f) providing that in the event of a trading halt, all orders will remain on the EDGA Book unless cancelled by the User; and (iii) adopt paragraph (g), which would state that all times referenced in Rule 11.16 shall be Eastern Time. Ministerial Changes In light of the above restructuring of the Exchange Rules, the Exchange proposes the following ministerial changes to update cross references to Rules that are to be deleted or relocated as described above: Amend Rule 11.8(a)(4) regarding the display of Market Orders to update a cross-reference to current Rule 11.10(a)(3)(A) to proposed Rule 11.16(e)(5), and amend Rule 11.9(a)(2)(C)(ii) regarding the priority of Market Orders displayed on the EDGA Book to delete a cross-reference to current Rule 11.10(a)(3)(A). 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\29\ Specifically, the proposed change is consistent with Section 6(b)(5) of the Act,\30\ because it is designed to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and, in general, to protect investors and the public interest. The Exchange does not propose to alter its current system functionality with regard to compliance with the Plan set forth under current Exchange Rules. Rather, the proposed rule change is designed to provide a consistent rule set across each of the BGM Affiliated Exchanges. As mentioned above, the proposed rule changes, combined with the planned filing for EDGA [sic],\31\ would allow the BGM Affiliated Exchanges to provide a consistent set of rules as it relates to the compliance with the Plan across each of the BGM Affiliated Exchanges. Consistent rules, in turn, will simplify the regulatory requirements for Members of the Exchange that are also participants on EDGX, BZX and/or BYX. The proposed rule change would provide greater harmonization between rules of similar purpose on the BGM Affiliated Exchanges, resulting in greater uniformity and less burdensome and more efficient regulatory compliance and understanding of [[Page 19727]] Exchange Rules. As such, the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. Similarly, the Exchange also believes that, by harmonizing the rules and across each BGM Affiliated Exchange with respect to the Plan, the proposal will enhance the Exchange's ability to fairly and efficiently regulate its Members, meaning that the proposed rule change is equitable and will promote fairness in the market place. --------------------------------------------------------------------------- \29\ 15 U.S.C. 78f(b). \30\ 15 U.S.C. 78f(b)(5). \31\ See supra note 8 [sic]. --------------------------------------------------------------------------- Finally, the proposal to remove the references to individual stock trading pauses promotes just and equitable principles of trade and removes impediments to, and perfects the mechanism of, a free and open market and a national market system. By eliminating the reference to trading pauses outside the scope of the Plan in its rules, the Exchange will help to alleviate any potential confusion with respect to such pauses, particularly in light of the implementation of the Plan. The proposed rule change is also consistent with Section 11A(a)(1) of the Act \32\ in that it seeks to assure fair competition among brokers and dealers and exchange markets. --------------------------------------------------------------------------- \32\ 15 U.S.C. 78k-1(a)(1). --------------------------------------------------------------------------- Finally, the Exchange believes that the non-substantive, ministerial changes discussed above will contribute to the protection of investors and the public interest by helping to avoid confusion with respect to Exchange Rules. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the act. To the contrary, allowing the Exchange to implement substantively identical rules across each of the BGM Affiliated Exchanges regarding the Plan does not present any competitive issues, but rather is designed to provide greater harmonization among Exchange, EDGX, BYX, and BZX rules of similar purpose. The proposed rule change should, therefore, resulting in less burdensome and more efficient regulatory compliance and understanding of Exchange Rules for common members of the BGM Affiliated Exchanges and an enhanced ability of the BGM Affiliated Exchanges to fairly and efficiently regulate Members, which will further enhance competition. 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 Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \33\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\34\ --------------------------------------------------------------------------- \33\ 15 U.S.C. 78s(b)(3)(a)(iii). \34\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-EDGA-2015-15 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-EDGA-2015-15. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 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-EDGA-2015-15, and should be submitted on or before May 4, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\35\ --------------------------------------------------------------------------- \35\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-08339 Filed 4-10-15; 8:45 am] BILLING CODE 8011-01-P
![19722 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices
that the proposed rule change will and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
impose any burden on intermarket NE., Washington, DC 20549–1090. notice is hereby given that on March 27,
competition that is not necessary or All submissions should refer to File 2015, EDGA Exchange, Inc. (the
appropriate in furtherance of the Number SR–CBOE–2015–038. This file ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
purposes of the Act because the number should be included on the Securities and Exchange Commission
proposed change is intended to promote subject line if email is used. To help the (‘‘Commission’’) the proposed rule
competition and better improve the Commission process and review your change as described in Items I and II
Exchange’s competitive position and comments more efficiently, please use below, which Items have been prepared
make CBOE a more attractive only one method. The Commission will by the Exchange. The Commission is
marketplace in order to encourage post all comments on the Commission’s publishing this notice to solicit
market participants to bring increased Internet Web site (http://www.sec.gov/ comments on the proposed rule change
volume to the Exchange. To the extent rules/sro.shtml). Copies of the from interested persons.
that the proposed changes make CBOE submission, all subsequent
a more attractive marketplace for market I. Self-Regulatory Organization’s
amendments, all written statements Statement of the Terms of the Substance
participants at other exchanges, such with respect to the proposed rule
market participants are welcome to of the Proposed Rule Change
change that are filed with the
become CBOE market participants. Commission, and all written The Exchange filed a proposal to
communications relating to the amend Rules 11.8, 11.9, 11.10, 11.11,
C. Self-Regulatory Organization’s
proposed rule change between the and 11.16, in order to conform Exchange
Statement on Comments on the
Commission and any person, other than Rules to the rules of BATS Exchange,
Proposed Rule Change Received From
those that may be withheld from the Inc. (‘‘BZX’’) and BATS Y-Exchange,
Members, Participants, or Others
public in accordance with the Inc. (‘‘BYX’’) as they relate to the Plan
The Exchange neither solicited nor to Address Extraordinary Market
received comments on the proposed provisions of 5 U.S.C. 552, will be
available for Web site viewing and Volatility Pursuant to Rule 608 of
rule change. Regulation NMS under the Act (the
printing in the Commission’s Public
III. Date of Effectiveness of the Reference Room, 100 F Street NE., ‘‘Limit Up-Limit Down Plan’’ or
Proposed Rule Change and Timing for Washington, DC 20549 on official ‘‘Plan’’).3
Commission Action The text of the proposed rule change
business days between the hours of
is available at the Exchange’s Web site
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
at www.batstrading.com, at the
effective pursuant to Section 19(b)(3)(A) filing also will be available for
principal office of the Exchange, and at
of the Act 7 and paragraph (f) of Rule inspection and copying at the principal
the Commission’s Public Reference
19b–4 8 thereunder. At any time within office of the Exchange. All comments
Room.
60 days of the filing of the proposed rule received will be posted without change;
change, the Commission summarily may the Commission does not edit personal II. Self-Regulatory Organization’s
temporarily suspend such rule change if identifying information from Statement of the Purpose of, and
it appears to the Commission that such submissions. You should submit only Statutory Basis for, the Proposed Rule
action is necessary or appropriate in the information that you wish to make Change
public interest, for the protection of available publicly. All submissions In its filing with the Commission, the
investors, or otherwise in furtherance of should refer to File Number SR–CBOE– Exchange included statements
the purposes of the Act. If the 2015–038 and should be submitted on concerning the purpose of and basis for
Commission takes such action, the or before May 4, 2015. the proposed rule change and discussed
Commission will institute proceedings For the Commission, by the Division of any comments it received on the
to determine whether the proposed rule Trading and Markets, pursuant to delegated proposed rule change. The text of these
change should be approved or authority.9 statements may be examined at the
disapproved. Brent J. Fields, places specified in Item IV below. The
IV. Solicitation of Comments Secretary. Exchange has prepared summaries, set
[FR Doc. 2015–08340 Filed 4–10–15; 8:45 am] forth in Sections A, B, and C below, of
Interested persons are invited to
BILLING CODE 8011–01–P the most significant parts of such
submit written data, views, and
statements.
arguments concerning the foregoing,
including whether the proposed rule A. Self-Regulatory Organization’s
change is consistent with the Act. SECURITIES AND EXCHANGE
Statement of the Purpose of, and
Comments may be submitted by any of COMMISSION
Statutory Basis for, the Proposed Rule
the following methods: Change
[Release No. 34–74663; File No. SR–EDGA–
Electronic Comments 2015–15] 1. Purpose
• Use the Commission’s Internet The Exchange proposes to restructure
comment form (http://www.sec.gov/ Self-Regulatory Organizations; EDGA and amend various Exchange Rules
rules/sro.shtml); or Exchange, Inc.; Notice of Filing and related to the applicability of the Plan
• Send an email to rule-comments@ Immediate Effectiveness of a Proposed
sec.gov. Please include File Number SR– Rule Change To Amend Rules 11.8, 1 15 U.S.C. 78s(b)(1).
mstockstill on DSK4VPTVN1PROD with NOTICES
CBOE–2015–038 on the subject line. 11.9, 11.10, 11.11, and 11.16 Regarding 2 17 CFR 240.19b–4.
the Limit Up-Limit Down Plan 3 See BZX and BYX Rules 11.18(e). See Securities
Paper Comments Exchange Act Release Nos. 69084 (March 8, 2013),
April 7, 2015.
• Send paper comments in triplicate 77 FR 16334 (March 14, 2013) (SR–BATS–2015–
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the 015) [sic]; and 69088 (March 8, 2013), 77 FR 16308
Securities Exchange Act of 1934 (the (March 14, 2013) (SR–BYX–2013–010). See also
Securities Exchange Act Release No. 67091 (May
7 15 U.S.C. 78s(b)(3)(A). 31, 2012), 77 FR 33498 (June 6, 2012) (the ‘‘Limit
8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12). Up-Limit Down Release’’).
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![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19723
identical to the corresponding rules on below (above) the Lower (Upper) Price Proposed Amendment to Rule 11.9
BZX and BYX, as further described Band, the Processors shall disseminate Currently, Rule 11.9(a)(8) describes
below. In early 2014, the Exchange and such National Best Bid (Offer) with an the priority of orders that are re-priced
its affiliate, EDGA Exchange, Inc. appropriate flag identifying it as non- and displayed in accordance with the
(‘‘EDGA’’) [sic], received approval to executable. When the National Best Bid Plan. The Exchange is proposing to
effect a merger (the ‘‘Merger’’) of the (Offer) is equal to the Upper (Lower) delete this clause and to include this
Exchange’s parent company, Direct Edge Price Band, the Processors shall information in Rule 11.16(e)(5) in order
Holdings LLC, with BATS Global distribute such National Best Bid (Offer) to adopt a consistent rule set as between
Markets, Inc., the parent of BZX and with an appropriate flag identifying it as the Exchange and the other BGM
BYX (together with BZX, EDGA, and a Limit State Quotation.10 All trading Affiliated Exchanges. The proposed rule
EDGX, the ‘‘BGM Affiliated centers in NMS Stocks must maintain text for Exchange Rule 11.16(e)(5) is
Exchanges’’).4 In the context of the written policies and procedures that are directly based on BZX and BYX Rule
Merger, the BGM Affiliated Exchanges reasonably designed to prevent the 11.18(e)(5), and is described in greater
are working to align certain system and display of offers below the Lower Price detail below. The Exchange is not
regulatory functionality, retaining only Band and bids above the Upper Price proposing to alter the priority handling
intended differences between the BGM Band for NMS Stocks. Notwithstanding of orders that are re-priced and
Affiliated Exchanges. Thus, the proposal this requirement, the Processor shall displayed in accordance with the Plan,
set forth below is intended to amend display an offer below the Lower Price but rather, is proposing to adopt rule
Rules 11.8, 11.9, 11.10, 11.11, and 11.16 Band or a bid above the Upper Price
to make such Rules identical to text that is identical to that of its
Band, but with a flag that it is non- affiliated exchanges to reduce potential
corresponding rules on BZX and BYX executable. Such bids or offers shall not
related to the Plan. The Exchange does confusion.
be included in the National Best Bid
not propose to alter its current system (‘‘NBB’’) or National Best Offer (‘‘NBO’’) Proposed Amendment to Rule 11.10
functionality with regard to compliance
calculations.11 In sum, Rule 11.10(a)(3) sets forth the
with the Plan set forth under current
Trading in an NMS Stock general rule that no executions shall
Exchange Rules.5 Rather, the proposed
immediately enters a Limit State if the occur outside the Price Bands during
rule change is designed to provide a
National Best Offer (Bid) equals but Regular Trading Hours. The Exchange
consistent rule set across each of the
does not cross the Lower (Upper) Price proposes to amend Rule 11.10(a)(3) to
BGM Affiliated Exchanges.6
Band.12 Trading for an NMS stock exits further state that the Exchange’s
Background a Limit State if, within 15 seconds of procedures for handling executing, re-
The Plan is designed to prevent trades entering the Limit State, all Limit State pricing and displaying orders in
in individual NMS Stocks from Quotations were executed or canceled connection with the Plan are further
occurring outside of specified Price in their entirety. If the market does not described in proposed Rule 11.16(e),
Bands.7 As described more fully below, exit a Limit State within 15 seconds, which is discussed below.
the requirements of the Plan are coupled then the Primary Listing Exchange Current Rule 11.10(a)(3)(A) discusses
with Trading Pauses to accommodate would declare a five-minute Trading how an order priced within the Price
more fundamental price moves (as Pause pursuant to Section VII of the Bands may be executed or posted to the
opposed to erroneous trades or Limit Up-Limit Down Plan, which EDGA Book. Current Rule 11.10(a)(3)(B)
momentary gaps in liquidity). All would be applicable to all markets explains how the Exchange will re-price
trading centers in NMS Stocks, trading the security.13 In addition, the an order that is priced outside of the
including both those operated by Plan defines a Straddle State as when Price Bands. The Exchange proposes to
Participants and those operated by the National Best Bid (Offer) is below delete Rules 11.10(a)(3)(A) and (B) and
members of Participants, are required to (above) the Lower (Upper) Price Band replace them with Rule 11.16(e)(5). The
establish, maintain, and enforce written and the NMS Stock is not in a Limit proposed rule text for Exchange Rule
policies and procedures that are State. For example, assume the Lower 11.16(e)(5) is directly based on BZX and
reasonably designed to comply with the Price Band for an NMS Stock is $9.50 BYX Rule 11.18(e)(5) and is described
requirements specified in the Plan.8 As and the Upper Price Band is $10.50, more fully below. The Exchange is not
set forth in more detail in the Plan, Price such NMS stock would be in a Straddle proposing to alter the handling and re-
Bands consisting of a Lower Price Band State if the National Best Bid were pricing of orders that [sic] under the
and an Upper Price Band for each NMS below $9.50, and therefore non- Plan, but rather, is proposing to adopt
Stock are calculated by the Processors.9 executable, and the National Best Offer rule text that is identical to that of its
When the National Best Bid (Offer) is were above $9.50 (including a National affiliated exchanges to reduce potential
Best Offer that could be above $10.50). confusion.
4 See Securities Exchange Act Release No. 71449
If an NMS Stock is in a Straddle State The Exchange also proposes to delete
(January 30, 2014), 79 FR 6961 (February 5, 2014) Rule 11.10(a)(3)(C) and does not
(SR–EDGX–2013–043; SR–EDGA–2013–034). and trading in that stock deviates from
5 See Securities Exchange Act Release Nos. 69002 normal trading characteristics, the propose to include it as part of the
(February 27, 2013), 78 FR 14394 (March 5, 2013) Primary Listing Exchange may declare a amended rule set. Rule 11.10(a)(3)(C)
(SR–EDGA–2013–08); and 69003 (February 27, Trading Pause for that NMS Stock. states that a description of the behavior
2013), 78 FR 14380 (March 5, 2013) (SR–EDGX– of routable market and Limit Orders in
2013–08). response to the Plan is found in Rule
6 See BZX and BYX Rules 11.18(e). The Exchange 10 See Section VI(A) of the Plan.
mstockstill on DSK4VPTVN1PROD with NOTICES
notes that EDGA [sic] intends to file a proposal very 11 See Section VI(A)(3) of the Plan.
11.11(b)(1). The Exchange believes this
similar to this proposal that will align the rules 12 See Section VI(B)(1) of the Plan. provision is no longer necessary as the
related to the Plan across each of the BGM 13 The primary listing market would declare a Exchange’s procedures for handling,
Affiliated Exchanges. trading pause in an NMS Stock; upon notification executing, re-pricing, and displaying
7 Unless otherwise specified, capitalized terms
by the primary listing market, the Processor would orders in connection with the Plan are
used in this rule filing are based on the defined disseminate this information to the public. No
terms of the Plan. trades in that NMS Stock could occur during the
proposed to be described in a single
8 The Exchange is a Participant in the Plan.
trading pause, but all bids and offers may be rule, Rule 11.16(e), rather than multiple
9 See Section (V)(A) of the Plan. displayed. See Section VII(A) of the Plan. rules as is currently the case.
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![19724 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices
The Exchange proposes to delete Rule February 2013, the Exchange amended to help ensure the compliance with the
11.10(a)(3)(D), which discusses the its Rules in connection with the limit up-limit down and trading pause
handling of orders with a Short Sale implementation of the Plan.15 The requirements specified in the Plan by
instruction 14 under the Plan, and Exchange now proposes to incorporate preventing executions outside the Price
replace it with Rule 11.16(e)(5)(E). The the provisions discussed above into Bands as required pursuant to Section
proposed rule text for Exchange Rule Rule 11.16(e) in order to make the VI(A)(1) of the Plan.18
11.16(e)(5)(E) is directly based on BZX Exchange’s Rules identical to the As mentioned above, the Exchange
and BYX Rule 11.18(e)(5)(E) and is corresponding rules on BZX and BYX. proposes to incorporate the provisions
described more fully below. The The proposed amendments to Rule of current Rules 11.9(a)(8) and
Exchange is not proposing to alter the 11.16(e) are based on BZX and BYX 11.10(a)(3)(A) and (B) within Rule
handling of orders with a Short Sale Rules 11.18(e). The Exchange believes 11.16(e)(5) regarding the treatment of
instruction under the Plan, but rather, is that the provisions proposed below are certain trading interest on the Exchange
proposing to relocate the text, with reasonably designed to prevent in order to prevent executions outside
modifications, to Rule 11.16(e)(5)(E) as executions outside the Price Bands as the Price Bands and to comply with the
discussed below. required by the limit up-limit down and Plan. The Exchange is proposing to
The Exchange proposes to delete Rule trading pause requirements specified in delete Rules 11.9(a)(8) and
11.10(a)(3)(E) and replace it with Rule the Plan. 11.10(a)(3)(A) and (B) to include this
11.16(e)(2) thru (4). Current Rule First, the Exchange proposes to add information in Rule 11.16(e)(5) in order
11.10(a)(3)(E) states that pursuant to Rule 11.16(e)(1) to provide that all to adopt a consistent rule set as between
Section IV of the Plan all Trading capitalized terms not otherwise defined the Exchange and the other BGM
Centers in NMS Stocks, including those in paragraph (e) of the Rule shall have Affiliated Exchanges. Proposed Rule
operated by Members of the Exchange, the meanings set forth in the Plan or 11.16(e)(5) is based on BZX and BYX
shall establish, maintain, and enforce Exchange Rules, as applicable. The Rules 11.18(e)(5).
written policies and procedures that are Exchange also proposes to add Rules Current Rule 11.9(a)(8) describes the
reasonably designed to comply with the 11.16(e)(2) thru (4) described below. priority of orders that are re-priced and
requirements specified in Section VI of These provisions are based on BXZ and displayed in accordance with the Plan.
the Plan, and to comply with the BYX Rules 11.18(e)(2) thru (4) and Specifically, Rule 11.9(a)(8) states that if
Trading Pauses specified in Section VII designed to replace deleted Rule the Upper (Lower) Price Band moves so
of the Plan. The proposed rule text for 11.10(a)(3)(E), which states that the that the price of a buy (sell) order
Exchange Rule 11.16(e)(2) thru (4) Exchange and its Members must resting on the EDGA Book would
expands upon this provision and is establish policies and procedures that consequently be above (below) the
directly based on BZX and BYX Rule are reasonably designed to comply with Upper (Lower) Price Band, such order
11.18(e)(2) thru (4) described more fully the Plan. Specifically, the Exchange will be re-priced and displayed at a
below. proposes to add Rule 11.16(e)(2) to price equal to the Upper (Lower) Price
provide that the Exchange is a Band, provided a new timestamp, and
Proposed Amendment to Rule 11.11 prioritized based on its existing
Participant in, and subject to the
Rule 11.11 discusses the handling of applicable requirements of, the Plan, timestamp at the time the new Price
orders that are to be routed to away which establishes procedures to address Bands are established. If an order is
trading centers. Paragraphs (b) thru (d) extraordinary volatility in NMS Stocks. resting on the EDGA Book at a price
of Rule 11.11 discuss the routing of Further, the Exchange proposes to add equal to the Upper (Lower) Price Band,
orders under the Plan. The Exchange Rule 11.16(e)(3) to provide that such order will not be re-priced but will
proposes to delete Rules 11.11(b) thru Exchange Members shall comply with be provided a new timestamp and
(d) and replace them with Rule the applicable provisions of the Plan. prioritized based on its existing
11.16(e)(5)(D). The Exchange proposes The Exchange believes the requirements timestamp at the time the new Price
to delete in its entirety Rule 11.11(b)(1) of current Rule 11.10(a)(3)(E) would be Bands are established.
as this provision is no longer necessary sufficiently covered in proposed Rules Likewise, under proposed Rule
as it is covered succinctly in new Rule 11.16(e)(2) and (3), which will help 11.16(e)(5), when re-pricing resting
11.16(e)(5)(D). Rule 11.11(c), which ensure the compliance by its Members orders because such orders are above
discusses re-routing of orders under the with the provisions of the Plan as (below) the Upper (Lower) Price Band,
Plan, will be moved to Rule required pursuant to Section II(B) of the the Exchange will provide new
11.16(e)(5)(D)(i) with slight Plan.16 timestamps to such orders. The
modifications. Rule 11.11(d), which The Exchange also proposes to add Exchange will also provide new
discusses the operation of certain Rule 11.16(e)(4) to replace deleted Rule timestamps to resting orders at the less
routing strategies under the Plan, will be 11.10(a)(3)(E). Rule 11.16(e)(4) would aggressive price to which such orders
moved to Rule 11.16(e)(5)(D)(ii) without provide that the Exchange’s System 17 are re-priced. Any resting interest that is
change. Each of these changes are shall not display or execute buy (sell) re-priced pursuant to Rule 11.16(e)(5)
discussed in more detail below. interest above (below) the Upper shall maintain priority ahead of interest
Proposed Amendment to Rule 11.16 (Lower) Price Bands, unless such that was originally less aggressively
interest is specifically exempted under priced, regardless of the original
The Exchange is required by the Plan the Plan. The Exchange believes that timestamps for such orders. The
to establish, maintain, and enforce Exchange is not proposing to alter the
this requirement is reasonably designed
written policies and procedures that are
mstockstill on DSK4VPTVN1PROD with NOTICES
priority handling of orders that are re-
reasonably designed to comply with the 15 See supra note 7 [sic]. priced and displayed in accordance
limit up-limit down and trading pause 16 See Section II(B) of the Plan. with the Plan, but rather, is proposing
requirements specified in the Plan. In 17 The ‘‘System’’ is defined in Exchange Rule
to adopt rule text that is identical to that
1.5(cc) as ‘‘the electronic communications and of its affiliated exchanges to reduce
14 A ‘‘Short Sale’’ instruction is defined as ‘‘[a]n trading facility designated by the Board through
instruction on an order which shall have the same which securities orders of Users are consolidated potential confusion. While the text of
meaning as defined in Rule 200(a) of Regulation for ranking, execution and, when applicable,
SHO.’’ See Exchange Rule 11.6(o). routing away.’’ 18 See Section VI(A)(1) of the Plan.
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![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19725
current Rule 11.9(a)(8) is not identical to exchanges to reduce potential shall re-price such displayed limit
proposed Rule 11.16(e)(5), the Exchange confusion. The Exchange notes that interest to the most aggressive
proposes to adopt language identical to while the format of current Rules permissible price up to the order’s limit
BZX and BYX Rules 11.18(e)(5), which 11.10(a)(3)(A) and (B) are not identical price. All other displayed and non-
it believes more clearly describes system to that of proposed Rule 11.16(e)(5), the displayed limit interest re-priced
functionality. Exchange proposes to include the pursuant to paragraph (e) of Rule 11.16
Current Rules 11.10(a)(3)(A) and (B) following provisions under Rule will remain at its new price unless the
address the handling and re-pricing of 11.16(e)(5) regarding the re-pricing or Price Bands move such that the price of
orders under the Plan. Rule canceling of certain trading interest that resting Limit Order to buy (sell) would
11.10(a)(3)(A) discusses how an order are similar to BZX and BYX Rule again be above (below) the Upper
priced within the Price Bands may be 11.18(e)(5), which if [sic] believes (Lower) Price Band.
executed or posted to the EDGA Book by continue to accurately describe system
Orders With a Pegged Instruction 21
stating that a non-routable buy (sell) functionality and provide additional
order that is entered into the System at specificity, the specifics of which are Currently, the operation of orders
a price less (greater) than or equal to the described under each subsection of with a Pegged instruction under the
Upper (Lower) Price Band will be proposed Rule 11.16(e)(5) set forth Plan is not specifically addressed in the
posted to the EDGA Book or executed, below. Exchange’s Rules. Therefore, the
unless: (i) the order includes a Time-in- Exchange proposes to adopt Rule
Market Orders and Orders With a TIF of 11.16(e)(5)(C) which would state that
Force Instruction (‘‘TIF’’) of Immediate IOC or FOK
or Cancel (‘‘IOC’’) or Fill-or-Kill orders with a Pegged instruction to buy
(‘‘FOK’’), in which case it will be Proposed Rule 11.16(e)(5)(A) would (sell) shall peg to the specified pegging
cancelled if not executed; or (ii) the state that the System will only execute price or the Upper (Lower) Price Band,
User has entered instructions to Market Orders or orders with a TIF whichever is lower (higher). Rule
cancel 19 the order. Rule 11.10(a)(3)(B) instruction of IOC or FOK at or within 11.16(e)(5)(c) is similar to BZX and BYX
explains how the Exchange will re-price the Price Bands. If a Market Order or Rules 11.18(e)(5)(C).
an order that is priced outside of the order with a TIF instruction of IOC or Routable Orders
Price Bands by stating that a non- FOK cannot be fully executed at or
within the Price Bands, the System shall The Exchange proposes to delete
routable buy (sell) order at a price Rules 11.11(b) thru (d), which discuss
greater (less) than the Upper (Lower) cancel any unexecuted portion of the
order without posting such order to the the routing of orders under the Plan,
Price Band will be re-priced and and replace them with Rule
displayed at the price of the Upper EDGA Book. This provision is similar to
current Rule 11.10(a)(3)(A). The Rule 11.16(e)(5)(D). The Exchange is not
(Lower) Price Band. If the price of the proposing any changes to its routing
Upper (Lower) Price Band moves above would also state that the display of
Market Orders will be handled in functionality in connection with the
(below) the non-routable buy (sell) implementation of the Plan. The
order’s displayed price, the buy (sell) accordance with Rule 11.8(a)(4).
Exchange proposes to delete in its
order will not be adjusted further and Limit Orders entirety Rule 11.11(b)(1), which states
will remain posted at the original price The operation of Limit Orders under when an order may be routed under the
at which it was posted to the EDGA the Plan would be set forth in Rule Plan, as these provisions are no longer
Book. If the Upper (Lower) Price Band 11.16(e)(5)(B), which would include the necessary as they are covered succinctly
crosses a non-routable buy (sell) order following provisions. in new Rule 11.16(e)(5)(D). Rule
resting on the EDGA Book, the buy (sell) • Orders Not Subject to Re-Pricing. 11.16(e)(5)(D) would state that if routing
order will be re-priced to the price of Limit Orders will be cancelled if a User is permitted based on a User’s
the Upper (Lower) Price Band. has entered instructions not to use the instructions, orders shall be routed
Likewise, proposed Rule 11.16(e)(5) re-pricing process set forth in Rule away from the Exchange pursuant to
discusses the re-pricing and 11.16(e)(5) and such interest to buy Rule 11.11, provided that the System
cancellation of interest and specifically (sell) is priced above (below) the Upper shall not route buy (sell) interest at a
provides that the Exchange systems (Lower) Price Band. price above (below) the Upper (Lower)
shall re-price and/or cancel buy (sell) • Incoming Orders. If re-pricing is Price Band.22 Rule 11.11(c), which
interest that is priced or could be permitted based on a User’s discusses re-routing of orders under the
executed 20 above (below) the Upper instructions, both displayable and non- Plan, will be moved to Rule
(Lower) Price Band. The Exchange is not displayable incoming Limit Orders to 11.16(e)(5)(D)(i) with slight
proposing to alter the handling or re- buy (sell) that are priced above (below) modifications. Current Rule 11.11(c)
pricing of orders under the Plan, but the Upper (Lower) Price Band shall be states that for routing strategies that
rather, is proposing to adopt rule text re-priced to the Upper (Lower) Price access all Protected Quotations, when
that is identical to that of its affiliated Band. the Upper (Lower) Price Band adjusts
• Resting Orders. The System shall such that the NBO (NBB) becomes
19 Under the Cancel Back instruction, a User may
re-price resting Limit Orders to buy executable, a routable buy (sell) Market
instruct the System to immediately cancel the order
when, if displayed by the System on the EDGA (sell) to the Upper (Lower) Price Band or marketable Limit Order will be
Book at the time of entry, or upon return to the if Price Bands move such that the price eligible to be re-routed by the Exchange.
System after being routed away, would create a of resting Limit Orders to buy (sell) Likewise, Rule 11.16(e)(5)(D)(i) would
violation of Rule 610(d) of Regulation NMS or Rule
mstockstill on DSK4VPTVN1PROD with NOTICES
would be above (below) the Upper state that when the Upper (Lower) Price
201 of Regulation SHO, or the order cannot
otherwise be executed or posted by the System to (Lower) Price Band. If the Price Bands
the EDGA Book at its limit price. See Exchange Rule move again and the original limit price 21 The ‘‘Pegged’’ instruction is described under
11.6(b). of a displayed and re-priced Limit Order Rule 11.6(j).
20 The Exchange notes that this includes any 22 This provision shall also replace current Rule
is at or within the Price Bands and a
interest that is displayed and/or resting at a less 11.10(a)(3)(C) which states that the description of
aggressive price but executable at a more aggressive
User has opted into the Exchange’s the behavior of routable Market Orders and Limit
price, such as orders subject to price sliding and optional multiple re-pricing process, as Orders in response to the Plan is set forth in Rule
discretionary order types. described in Rule 11.6(l), the System 11.11(b)(1).
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![19726 Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices
Band adjusts such that the NBO (NBB) would state that where a short sale price Book unless cancelled by the User; and
becomes executable, a routable buy restriction under Rule 201 of Regulation (iii) adopt paragraph (g), which would
(sell) Market or marketable Limit Order SHO is in effect, orders with a Short state that all times referenced in Rule
will be eligible to be re-routed by the Sale instruction priced below the Lower 11.16 shall be Eastern Time.
Exchange if such order contains an Price Band shall be re-priced to the
Ministerial Changes
Aggressive 23 or Super Aggressive 24 higher of the Lower Price Band or the
instruction.25 Rule 11.11(d), which Permitted Price. The Exchange is not In light of the above restructuring of
discusses the operation of certain proposing to alter the handling of orders the Exchange Rules, the Exchange
routing strategies under the Plan, will be with a Short Sale instruction that under proposes the following ministerial
moved to Rule 11.16(e)(5)(D)(ii) without the Plan, but rather, is proposing to changes to update cross references to
change. Rule 11.16(e)(5)(D)(ii) would relocate the text, with modifications, to Rules that are to be deleted or relocated
state that routing strategies SWPA and Rule 11.16(e)(5)(E) discussed above. as described above:
SWPB (together, ‘‘SWP’’), as described • Amend Rule 11.8(a)(4) regarding
Other Amendments to Rule 11.16 the display of Market Orders to update
in Rule 11.11(g), are eligible for routing
in accordance with the Plan as follows: The Exchange also proposes to a cross-reference to current Rule
the System will immediately cancel relocate Rule 11.16(c), which discusses 11.10(a)(3)(A) to proposed Rule
orders utilizing an SWP routing strategy the re-opening of trading following a 11.16(e)(5), and
when an order to buy utilizing an SWP trading halt, to proposed Rule • amend Rule 11.9(a)(2)(C)(ii)
routing strategy has a limit price that is 11.16(e)(6), with minor modifications. regarding the priority of Market Orders
greater than the Upper Price Band or if Current Rule 11.16(c) states that the re- displayed on the EDGA Book to delete
a sell order utilizing an SWP routing opening of trading following a trading a cross-reference to current Rule
strategy has a limit price that is less halt will be conducted pursuant to 11.10(a)(3)(A).
than the Lower Price Band. Proposed procedures adopted by the Exchange
2. Statutory Basis
Rule 11.16(e)(5)(D)(ii) is similar to BZX and communicated by notice to its
and BYX Rule 11.13(a)(3)(I).26 Members. The Exchange recently The Exchange believes that the
codified its opening process, including proposed rule change is consistent with
Orders With a Short Sale Instruction its re-opening process follow a halt, the requirements of the Act and the
The Exchange proposes to replace suspension or pause, under Rule 11.7.28 rules and regulations thereunder that
current Rule 11.10(a)(3)(D), which Therefore, with respect to the re- are applicable to a national securities
discusses the handling of orders with a opening of trading following a Trading exchange, and, in particular, with the
Short Sale instruction under the Plan, Pause, the Exchange proposes to adopt requirements of Section 6(b) of the
with proposed Rule 11.16(e)(5)(E). The Rule 11.16(e)(6) to provide that the Act.29 Specifically, the proposed change
proposed rule text for Exchange Rule Exchange shall re-open the security as is consistent with Section 6(b)(5) of the
11.16(e)(5)(E) is directly based on BZX set forth in Rule 11.7(e), which is the Act,30 because it is designed to promote
and BYX Rule 11.18(e)(5)(E). Current Exchange’s Rule describing the just and equitable principles of trade, to
Rule 11.10(a)(3)(D) states that where a Exchange’s re-opening process remove impediments to, and perfect the
short sale order is entered into the following a trading halt, suspension or mechanism of, a free and open market
System with a limit price below the pause. and a national market system, and, in
Lower Price Band and a short sale price The Exchange also proposes to delete general, to protect investors and the
test restriction under Rule 201 of Rule 11.16(d) which discusses when the public interest. The Exchange does not
Regulation SHO is in effect, the System Exchange may resume trading where the propose to alter its current system
will re-price such order to the Lower Primary Listing Market issues an functionality with regard to compliance
Price Band as long as the Lower Price individual stock trading pause and how with the Plan set forth under current
Band is at a Permitted Price.27 When an individual stock trading pauses are to be Exchange Rules. Rather, the proposed
order with a Short Sale instruction is handled during Phase I of the Plan. rule change is designed to provide a
entered into the System with a limit Interpretation and Policy .01 to Rule consistent rule set across each of the
price above the Lower Price Band and 11.16 states that the provisions of BGM Affiliated Exchanges. As
a short sale price test restriction under paragraph (d) of this Rule shall be in mentioned above, the proposed rule
Rule 201 of Regulation SHO is in effect, effect during a pilot set to end on the changes, combined with the planned
the System will re-price such order, if earlier of the initial date of operations filing for EDGA [sic],31 would allow the
necessary, at a Permitted Price. of the Regulation NMS Plan to Address BGM Affiliated Exchanges to provide a
Likewise, proposed Rule 11.16(e)(5)(E) Extraordinary Market Volatility or consistent set of rules as it relates to the
February 4, 2014. Phase I of the Plan has compliance with the Plan across each of
23 The ‘‘Aggressive’’ instruction is described expired and the Exchange, therefore, the BGM Affiliated Exchanges.
under Rule 11.6(n)(1). proposes to delete Rule 11.16(d) as well Consistent rules, in turn, will simplify
24 The ‘‘Super Aggressive’’ instruction is
as Interpretation and Policy .01 to Rule the regulatory requirements for
described under Rule 11.6(n)(2). 11.16 as they are no longer relevant.
25 The Exchange notes that this provision is not Members of the Exchange that are also
Lastly, the Exchange proposes the participants on EDGX, BZX and/or BYX.
included in BZX or BYX Rule 11.18(e), but the
Exchange believes it provides additional detail that following additional amendments to The proposed rule change would
was included in current Exchange Rule 11.11(c) Rule 11.16: (i) Renumber paragraph (f) provide greater harmonization between
that is helpful to retain in proposed Rule as (d); (ii) delete current Rule 11.16(e) rules of similar purpose on the BGM
11.16(e)(5)(D)(i). and replace it with new paragraph (f)
mstockstill on DSK4VPTVN1PROD with NOTICES
26 The Exchange notes that its proposal to include Affiliated Exchanges, resulting in
current Rule 11.11(d) within proposed Rule
providing that in the event of a trading greater uniformity and less burdensome
11.16(e)(5)(D)(ii), rather than within its Rule halt, all orders will remain on the EDGA and more efficient regulatory
11.11(g) which describes each of its routing
strategies, differs from the location of the same 28 See Securities Exchange Act Release Nos.
compliance and understanding of
provision under BZX and BYX Rule 11.13(a)(3), 73468 (October 29, 2014), 79 FR 65450 (November
29 15 U.S.C. 78f(b).
which describes BZX and BYX’s routing strategies. 4, 2014) (SR–EDGX–2014–18); and 73592
27 The term ‘‘Permitted Price’’ is defined in Rule 30 15 U.S.C. 78f(b)(5).
(November 13, 2014), 79 FR 68937 (November 19,
11.6(k). 2014) (SR–EDGA–2014–20). 31 See supra note 8 [sic].
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![Federal Register / Vol. 80, No. 70 / Monday, April 13, 2015 / Notices 19727
Exchange Rules. As such, the proposed C. Self-Regulatory Organization’s number should be included on the
rule change would foster cooperation Statement on Comments on the subject line if email is used. To help the
and coordination with persons engaged Proposed Rule Change Received From Commission process and review your
in facilitating transactions in securities Members, Participants, or Others comments more efficiently, please use
and would remove impediments to and The Exchange has neither solicited only one method. The Commission will
perfect the mechanism of a free and nor received written comments on the post all comments on the Commission’s
open market and a national market proposed rule change. Internet Web site (http://www.sec.gov/
system. Similarly, the Exchange also rules/sro.shtml). Copies of the
believes that, by harmonizing the rules III. Date of Effectiveness of the submission, all subsequent
and across each BGM Affiliated Proposed Rule Change and Timing for amendments, all written statements
Exchange with respect to the Plan, the Commission Action with respect to the proposed rule
proposal will enhance the Exchange’s Because the foregoing proposed rule change that are filed with the
ability to fairly and efficiently regulate change does not: (i) Significantly affect Commission, and all written
its Members, meaning that the proposed the protection of investors or the public communications relating to the
rule change is equitable and will interest; (ii) impose any significant proposed rule change between the
promote fairness in the market place. burden on competition; and (iii) become Commission and any person, other than
Finally, the proposal to remove the operative for 30 days from the date on those that may be withheld from the
references to individual stock trading which it was filed, or such shorter time public in accordance with the
pauses promotes just and equitable as the Commission may designate, it has provisions of 5 U.S.C. 552, will be
principles of trade and removes become effective pursuant to Section available for Web site viewing and
impediments to, and perfects the 19(b)(3)(A)(iii) of the Act 33 and printing in the Commission’s Public
mechanism of, a free and open market subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE.,
and a national market system. By thereunder.34 Washington, DC 20549 on official
eliminating the reference to trading At any time within 60 days of the business days between the hours of
pauses outside the scope of the Plan in filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of such
its rules, the Exchange will help to Commission summarily may filing also will be available for
alleviate any potential confusion with temporarily suspend such rule change if inspection and copying at the principal
respect to such pauses, particularly in it appears to the Commission that such office of the Exchange. All comments
light of the implementation of the Plan. action is: (i) Necessary or appropriate in received will be posted without change;
The proposed rule change is also the public interest; (ii) for the protection the Commission does not edit personal
consistent with Section 11A(a)(1) of the of investors; or (iii) otherwise in identifying information from
Act 32 in that it seeks to assure fair furtherance of the purposes of the Act. submissions. You should submit only
competition among brokers and dealers If the Commission takes such action, the information that you wish to make
and exchange markets. Commission shall institute proceedings available publicly. All submissions
Finally, the Exchange believes that to determine whether the proposed rule should refer to File Number SR–EDGA–
the non-substantive, ministerial changes should be approved or disapproved. 2015–15, and should be submitted on or
discussed above will contribute to the IV. Solicitation of Comments before May 4, 2015.
protection of investors and the public Interested persons are invited to For the Commission, by the Division of
interest by helping to avoid confusion submit written data, views, and Trading and Markets, pursuant to delegated
with respect to Exchange Rules. authority.35
arguments concerning the foregoing,
including whether the proposed rule Brent J. Fields,
B. Self-Regulatory Organization’s
change is consistent with the Act. Secretary.
Statement on Burden on Competition
Comments may be submitted by any of [FR Doc. 2015–08339 Filed 4–10–15; 8:45 am]
The Exchange does not believe that the following methods: BILLING CODE 8011–01–P
the proposed rule change will impose
any burden on competition not Electronic Comments
necessary or appropriate in furtherance • Use the Commission’s Internet DEPARTMENT OF STATE
of the purposes of the act. To the comment form (http://www.sec.gov/
contrary, allowing the Exchange to rules/sro.shtml); or [Public Notice 9091]
implement substantively identical rules • Send an email to rule-comments@
across each of the BGM Affiliated sec.gov. Please include File Number SR– Certification Related to the
Exchanges regarding the Plan does not EDGA–2015–15 on the subject line. Government of Haiti Under Section
present any competitive issues, but 7045(E)(1) of the Department of State,
Paper Comments Foreign Operations, and Related
rather is designed to provide greater
harmonization among Exchange, EDGX, • Send paper comments in triplicate Programs Appropriations Act, 2015
BYX, and BZX rules of similar purpose. to Secretary, Securities and Exchange Pursuant to the authority vested in the
The proposed rule change should, Commission, 100 F Street NE., Secretary of State, including under
therefore, resulting in less burdensome Washington, DC 20549–1090. section 7045(e)(1) of the Department of
and more efficient regulatory All submissions should refer to File State, Foreign Operations, and Related
compliance and understanding of Number SR–EDGA–2015–15. This file Programs Appropriations Act, 2015
Exchange Rules for common members of
mstockstill on DSK4VPTVN1PROD with NOTICES
33 15
(Div. J, Pub. L. 113–235), I hereby certify
the BGM Affiliated Exchanges and an U.S.C. 78s(b)(3)(a)(iii).
34 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
that Haiti is taking steps to hold free and
enhanced ability of the BGM Affiliated 4(f)(6) requires a self-regulatory organization to give fair parliamentary elections and to seat
Exchanges to fairly and efficiently the Commission written notice of its intent to file a new Haitian Parliament; is selecting
regulate Members, which will further the proposed rule change at least five business days judges in a transparent manner and
enhance competition. prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
respecting the independence of the
Commission. The Exchange has satisfied this
32 15 U.S.C. 78k–1(a)(1). requirement. 35 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-18 11:22:13
Document Modified: 2015-12-18 11:22:13
| 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 19722 |
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