80 FR 21286 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Content of the BATS One Feed Under Rule 13.8(b) To Include Consolidated Volume for All Listed Equity Securities

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 74 (April 17, 2015)

Page Range		21286-21288
FR Document		2015-08794

Federal Register, Volume 80 Issue 74 (Friday, April 17, 2015)

[Federal Register Volume 80, Number 74 (Friday, April 17, 2015)]
[Notices]
[Pages 21286-21288]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-08794]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74717; File No. SR-EDGA-2015-17]

Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Content of the BATS One Feed Under Rule 13.8(b) To Include
Consolidated Volume for All Listed Equity Securities

April 13, 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 April 1, 2015, EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

The Exchange amend [sic] the content of the BATS One Feed under
Rule 13.8(b) to include consolidated volume for all listed equity
securities. 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 content of the BATS One Feed
under Rule 13.8(b) to include consolidated volume for all listed equity
securities. The Commission recently approved a proposed rule change by
the Exchange to establish a new market data product called the BATS One
Feed.\5\ 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 EDGA and its affiliated exchanges \6\
and for which the BATS Exchanges reports quotes under the Consolidated
Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan.\7\
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\5\ 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'').
\6\ EDGA's affiliated exchanges are the BATS Exchange, Inc.
(``BZX''), the BATS Y-Exchange, Inc. (``BYX''), and the EDGX
Exchange, Inc. (``EDGX'', together with EDGA, BZX, and BYX, the
``BATS Exchanges''). On January 31, 2014, Direct Edge Holdings LLC
(``DE Holdings''), the former parent company of the Exchange and
EDGX, completed its business combination with BATS Global Markets,
Inc., the parent company of BATS and BYX. See Securities Exchange
Act Release No. 71449 (January 30, 2014), 79 FR 6961 (February 5,
2014) (SR-EDGX-2013-43, SR-EDGA-2013-34). Upon completion of the
business combination, DE Holdings and BATS Global Markets, Inc. 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.''
\7\ 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.
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The last sale information disseminated as part of the BATS One Feed
includes the price, size, time of execution, and individual BATS
Exchange on which the trade was executed. The last sale information
also includes the cumulative number of shares executed on all BATS
Exchanges

[[Page 21287]]

for that trading day.\8\ The Exchange now proposes to expand the last
sale information to include consolidated volume for all listed equity
securities regardless of where the transaction was executed. The
Exchange would obtain the consolidated volume directly from the
securities information processors and then distribute in a manner
consistent with the requirements for redistributing such data as set
forth in the CTA Plan and Nasdaq UTP Plan.\9\
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\8\ The BATS One Feed also contains optional functionality which
enables recipients to receive aggregated two-sided quotations from
the BATS Exchanges for up to five (5) price levels for all
securities that are traded on the BATS Exchanges in addition to the
BATS One Summary Feed (``BATS One Premium Feed''). For each price
level on one of the BATS Exchanges, the BATS One Premium Feed
includes a two-sided quote and the number of shares available to buy
and sell at that particular price level.
\9\ See CTA Consolidated Volume Display Policy available at
https://www.ctaplan.com (dated March 2015). The CTA Consolidated
Volume Display Policy requires that, ``[i]f a Customer calculates
the CTA Consolidated Volume and displays that alongside last sale
prices or bid-asked quotes that are not consolidated prices or
quotes under the CTA Plan or the CQ Plan, then the Customer must
incorporate into its display the following statement: ``Realtime
quote and/or trade prices are not sourced from all markets.''
Customer must also assure that any person included in the
redistribution chain starting with the Customer conspicuously places
such a statement in any such display that it provides.'' Id.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \10\ in general, and furthers the objectives of Section
6(b)(5) of the Act \11\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest. The Exchange also believes
that the proposed rule change is consistent with Section 11(A) of the
Act \12\ 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,\13\
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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 15 U.S.C. 78k-1.
\13\ See 17 CFR 242.603.
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by providing for
the broader dissemination of consolidated volume to investors. The
Exchange also believes this proposal is consistent with Section 6(b)(5)
of the Act because it protects investors and the public interest and
promotes just and equitable principles of trade by providing investors
with new options for receiving consolidated volume. The Exchange also
believes that the proposed rule change is reasonable because
consolidated volume is currently included in a competing market data
products offered by the NYSE and Nasdaq.\14\ Therefore, the Exchange
believes the proposed rule change removes impediments to and perfects
the mechanism of a free and open market and a national market system,
and, in general, protects investors and the public interest.
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\14\ See 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) (``NYSE
BQT Approval Order''). See also Nasdaq Basic, http://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (last visited March
26, 2015) (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'')); and 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).
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Lastly, the proposal would not permit unfair discrimination because
the consolidated volume will be available to all of the Exchange's
customers and market data vendors on an equivalent basis. In addition,
any customer that wishes to receive consolidated volume via a different
source will be able to do so.

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

The Exchange does not believe that the proposal will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes that the proposed rule
change will enhance competition because it would enable the Exchange to
include consolidated volume as part of the BATS One Feed, thereby
enabling it to better compete with similar market data products
currently offered by the NYSE and Nasdaq that include such volume.\15\
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\15\ See id. (noting that NYSE BQT and NLS Plus carry
consolidated volume for all listed equities).
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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 consolidated volume that would be included in the
BATS One Feed. A vendor seeking to offer a similar product and include
consolidated volume would be able to do so on the same terms as the
Exchange from a cost perspective. As discussed in in the BATS One
Approval Order,\16\ 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. Likewise, a
competing vendor could also receive consolidated volume from the
securities information processors and include it as part of their
product to be disseminated to their customers under the same terms and
policies provided to the Exchange.\17\ Therefore, the Exchange believes
the inclusion of consolidated volume in the BATS One Feed would not
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
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\16\ See BATS One Approval Order, supra note 5.
\17\ See CTA Consolidated Volume Display Policy, supra note 9.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

[[Page 21288]]

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

Because the 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 if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-
4(f)(6)(iii) thereunder.\19\
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \20\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \21\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because it would allow
the Exchange to timely offer investors a new option for receiving
consolidated volume information. The Exchange further notes that other
exchanges currently offer similar data products that include
consolidated volume.\22\ The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposed rule change operative upon
filing.\23\
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\20\ 17 CFR 240.19b-4(f)(6).
\21\ 17 CFR 240.19b-4(f)(6)(iii).
\22\ See supra note 14 (noting that NYSE BQT and NLS Plus carry
consolidated volume for all listed equities).
\23\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. 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 rule-comments@sec.gov. Please include
File Number SR-EDGA-2015-17 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-EDGA-2015-17. 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-2015-17, and should be
submitted on or before May 8, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-08794 Filed 4-16-15; 8:45 am]
BILLING CODE 8011-01-P

Document Created: 2015-12-18 11:20:27
Document Modified: 2015-12-18 11:20:27

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 21286