80 FR 28719 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related To Fees for Use of EDGA Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 96 (May 19, 2015)
Federal Register Volume 80, Issue 96 (May 19, 2015)
| Page Range | 28719-28721 | |
| FR Document | 2015-12016 |
[Federal Register Volume 80, Number 96 (Tuesday, May 19, 2015)] [Notices] [Pages 28719-28721] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12016] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74948; File No. SR-EDGA-2015-18] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related To Fees for Use of EDGA Exchange, Inc. May 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 30, 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, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend its fees and rebates applicable to Members \5\ of the Exchange pursuant to EDGA Rule 15.1(a) and (c) (``Fee Schedule'') to: (i) Decrease the rebate for orders yielding Flag BY, which routes to the BATS Y-Exchange, Inc. (``BYX'') and removes liquidity using routing strategies Destination Specific (``DIRC''), ROUC, ROUE, ROBB, or ROCO; \6\ (ii) amend the criteria for the MidPoint Discretionary Order Add Volume Tier; and (iii) make an immaterial, non-substantive change. Changes to the fee schedule pursuant to this proposal are effective upon filing. --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer, or any person associated with a registered broker or dealer [sic], that has been admitted to membership in the Exchange. A Member will have the status of a ``member'' of the Exchange as that term is defined in Section 3(a)(3) of the Act.'' See Exchange Rule 1.5(n). \6\ The DIRC, ROUC, ROUE, ROBB, or ROCO routing strategies are set forth in Exchange Rule 11.11(g). --------------------------------------------------------------------------- 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: (i) Decrease the rebate for orders yielding Flag BY, which routes to BYX and removes liquidity using routing strategies DIRC, ROUC, ROUE, ROBB, or ROCO; (ii) amend the criteria for the MidPoint Discretionary Order Add Volume Tier; and (iii) make an immaterial, non-substantive change. Flag BY In securities priced at or above $1.00, the Exchange currently provides a rebate of $0.00160 per share for Members' orders that yield Flag BY, which routes to BYX and removes [[Page 28720]] liquidity using routing strategies DIRC, ROUC, ROUE, ROBB, or ROCO. The Exchange proposes to amend its Fee Schedule to decrease the rebate for orders that yield Flag BY to $0.00150 per share in securities priced at or above $1.00.\7\ The proposed change represents a pass through of the rate BATS Trading, Inc. (``BATS Trading''), the Exchange's affiliated routing broker-dealer, is provided for routing orders to BYX that remove liquidity. The proposed change is in response to BYX's May 2015 fee change where BYX decreased its rebate from $0.00160 per share to $0.00150 per share for orders in securities priced at or above $1.00.\8\ When BATS Trading routes to and removes liquidity from BYX, it will now receive a standard rebate of $0.00150 per share. BATS Trading will pass through the rebate provided by BYX to the Exchange and the Exchange, in turn, will pass through this rate to its Members. --------------------------------------------------------------------------- \7\ The Exchange does not propose to amend its fee for orders that yield Flag BY in securities priced below $1.00. \8\ See BYX Exchange Fee Schedule Changes Effective May 1, 2015 available at http://cdn.batstrading.com/resources/fee_schedule/2015/BATS-BYX-Exchange-BZX-Exchange-EDGA-Exchange-and-EDGX-Exchange-Fee-Schedule-Changes-Effective-May-1-2015.pdf. --------------------------------------------------------------------------- MidPoint Discretionary Order Add Volume Tier The Exchange proposes to amend the criteria for the MidPoint Discretionary Order Add Volume Tier. Under the tier, a Member qualifies for a reduced fee of $0.0003 per share where that Member: (i) Adds an ADV of at least 0.25% of the TCV including non-displayed orders that add liquidity; and (ii) adds or removes an ADV of at least 1,500,000 shares yielding fee codes DM or DT. Fee code DM is applied to Non- Displayed orders that add liquidity using MidPoint Discretionary orders \9\ and fee code DT is applied to Non-Displayed orders that remove liquidity using MidPoint Discretionary Orders. Orders that yield fee code DM or fee code DT that do not meet to the criteria of the MidPoint Discretionary Order Add Volume Tier are charged a fee of $0.00050 per share. The Exchange now proposes to decrease the ADV requirement to require that a Member add or remove an ADV of at least 500,000 shares yielding fee codes DM or DT. Easing the criteria of the MidPoint Discretionary Order Add Volume Tier is intended to further incentive Members to submit an increased number of MidPoint Discretionary orders to the Exchange, thereby increasing the liquidity on the Exchange at the midpoint of the National Best Bid or Offer (``NBBO''). --------------------------------------------------------------------------- \9\ See Exchange Rule 11.8(e) for a description of MidPoint Discretionary orders. --------------------------------------------------------------------------- Non-Substantive Changes The Exchange also proposes to make an immaterial, non-substantive change to its Fee Schedule by removing ``, Inc.'' from the reference to the Exchange in the heading of the Fee Schedule. This non-substantive change is intended to make the reference to the Exchange in the heading of the Fee Schedule consistent with the manner in which its affiliated exchanges \10\ are referenced in their respective fee schedules. --------------------------------------------------------------------------- \10\ The Exchange's affiliated exchanges are BATS Exchange, Inc., BATS Y-Exchange, Inc., and EDGX Exchange, Inc. (``EDGX''). The Exchange understands that EDGX also intends to file a proposed rule change with the Commission making a similar change to how EDGX is referenced in the heading of its fee schedule. --------------------------------------------------------------------------- Implementation Date The Exchange proposes to implement these amendments to its Fee Schedule on May 1, 2015. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\11\ in general, and furthers the objectives of Section 6(b)(4),\12\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange also notes that it operates in a highly- competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. The proposed rule change reflects a competitive pricing structure designed to incent [sic] market participants to direct their order flow to the Exchange. The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members. The Exchange believes the fees and credits remain competitive with those charged by other venues and therefore continue to be reasonable and equitably allocated to Members. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Flag BY The Exchange believes that its proposal to decrease the rebate for orders that yield Flag BY represents an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities. Prior to the BYX's May 2015 fee change, BYX provided BATS Trading a rebate of $0.00160 per share to remove liquidity in securities priced at or above $1.00, which BATS Trading passed through to the Exchange and the Exchange provided its Members. When BATS Trading routes to BYX, it will now be provided a rebate of $0.00150 per share. The Exchange does not levy additional fees or offer additional rebates for orders that it routes to BYX through BATS Trading. Therefore, the Exchange believes that the proposed change to Flag BY is equitable and reasonable because it accounts for the pricing changes on BYX, which enables the Exchange to provide its Members the applicable pass-through rebate. Lastly, the Exchange notes that routing through BATS Trading is voluntary and believes that the proposed change is non-discriminatory because it applies uniformly to all Members. MidPoint Discretionary Order Add Volume Tier The Exchange believes amending the criteria for the MidPoint Discretionary Order Add Volume Tier represents an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities because it is designed to further incentivize Members to increase their use of MidPoint Discretionary orders on EDGA. MidPoint Discretionary Orders increase displayed liquidity on the Exchange while also enhancing execution opportunities at the mid-point of the NBBO. Promotion of displayed liquidity at the NBBO enhances market quality for all Members. Members utilizing MidPoint Discretionary orders provide liquidity at the midpoint of the NBBO increasing the potential for an order to receive price improvement, and easing the tier's criteria so that Members may be eligible for a decreased fee is a reasonable means by which to encourage the use of such orders. In addition, the Exchange believes that by encouraging the use of MidPoint Discretionary orders by easing the tier's criteria, Members seeking price improvement would be more motivated to direct their orders to EDGA because they would have a heightened expectation of the availability of liquidity at the midpoint of the NBBO. The Exchange also believes that the proposed addition of the MidPoint Discretionary Order Add Volume Tier is non-discriminatory because it will be available to all Members. Non-Substantive Changes The Exchange believes that the non-substantive change to its Fee Schedule is reasonable because it is not designed to amend any fee, nor alter the manner in which it assesses fees or calculates rebates. This non-substantive change to [[Page 28721]] the Fee Schedule is intended to make the reference to the Exchange in the heading of the Fee Schedule consistent with the manner in which its affiliated exchanges are referenced in their respective fee schedules, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes its proposed amendments to its Fee Schedule would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed change represents a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. Fee Code BY The Exchange believes that its proposal to pass through the amended rebate for orders that yield Flags BY would increase intermarket competition because it offers customers an alternative means to route to BYX for the same rebate that they would be provided if they entered orders on that trading center directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rebate would apply uniformly to all Members. MidPoint Discretionary Order Add Volume Tier The Exchange believes that its proposal to ease the criteria for the MidPoint Discretionary Order Add Volume Tier would increase intermarket competition because it would further incentivize Members to send an increased amount MidPoint Discretionary orders to the Exchange in order to qualify for the tier's decreased fee. The Exchange believes that its proposal would neither increase nor decrease intramarket competition because the MidPoint Discretionary Order Add Volume Tier would apply uniformly to all Members and the ability of some Members to meet the tier would only benefit other Members by contributing to increased liquidity at the midpoint of the NBBO and better market quality at the Exchange. Non-Substantive Changes The Exchange believes that the non-substantive change to the Fee Schedule will not affect intermarket nor intramarket competition because the change is not designed to amend any fee or alter the manner in which the Exchange assesses fees or calculates rebates. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 thereunder.\14\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-EDGA-2015-18 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-2015-18. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also 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-2015-18 and should be submitted on or before June 9, 2015. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-12016 Filed 5-18-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices 28719
thereunder, because it establishes a due, 10:00 a.m. and 3:00 p.m. Copies of such Members 5 of the Exchange pursuant to
fee, or other charge imposed by the filing also will be available for EDGA Rule 15.1(a) and (c) (‘‘Fee
Exchange. inspection and copying at the principal Schedule’’) to: (i) Decrease the rebate for
At any time within 60 days of the offices of the Exchange. All comments orders yielding Flag BY, which routes to
filing of such proposed rule change, the received will be posted without change; the BATS Y-Exchange, Inc. (‘‘BYX’’) and
Commission summarily may the Commission does not edit personal removes liquidity using routing
temporarily suspend such rule change if identifying information from strategies Destination Specific (‘‘DIRC’’),
it appears to the Commission that such submissions. You should submit only ROUC, ROUE, ROBB, or ROCO; 6 (ii)
action is necessary or appropriate in the information that you wish to make amend the criteria for the MidPoint
public interest, for the protection of available publicly. All submissions Discretionary Order Add Volume Tier;
investors, or otherwise in furtherance of should refer to File Number SR– and (iii) make an immaterial, non-
the purposes of the Act. If the NYSEMKT–2015–38, and should be substantive change. Changes to the fee
Commission takes such action, the submitted on or before June 9, 2015. schedule pursuant to this proposal are
Commission shall institute proceedings effective upon filing.
For the Commission, by the Division of
under Section 19(b)(2)(B) 15 of the Act to Trading and Markets, pursuant to delegated The text of the proposed rule change
determine whether the proposed rule authority.16 is available at the Exchange’s Web site
change should be approved or Robert W. Errett, at www.batstrading.com, at the
disapproved. principal office of the Exchange, and at
Deputy Secretary.
IV. Solicitation of Comments the Commission’s Public Reference
[FR Doc. 2015–12063 Filed 5–18–15; 8:45 am]
Room.
Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views, and II. Self-Regulatory Organization’s
arguments concerning the foregoing, Statement of the Purpose of, and
including whether the proposed rule SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
change is consistent with the Act. COMMISSION Change
Comments may be submitted by any of In its filing with the Commission, the
[Release No. 34–74948; File No. SR–EDGA–
the following methods: Exchange included statements
2015–18]
Electronic Comments concerning the purpose of and basis for
Self-Regulatory Organizations; EDGA the proposed rule change and discussed
• Use the Commission’s Internet any comments it received on the
Exchange, Inc.; Notice of Filing and
comment form (http://www.sec.gov/ proposed rule change. The text of these
Immediate Effectiveness of a Proposed
rules/sro.shtml); or statements may be examined at the
• Send an email to rule-comments@ Rule Change Related To Fees for Use
of EDGA Exchange, Inc. places specified in Item IV below. The
sec.gov. Please include File Number SR– Exchange has prepared summaries, set
NYSEMKT–2015–38 on the subject line. May 13, 2015. forth in Sections A, B, and C below, of
Paper Comments Pursuant to Section 19(b)(1) of the the most significant parts of such
Securities Exchange Act of 1934 (the statements.
• Send paper comments in triplicate
‘‘Act’’),1 and Rule 19b–4 thereunder,2
to Secretary, Securities and Exchange (A) Self-Regulatory Organization’s
notice is hereby given that on April 30,
Commission, 100 F Street, NE., Statement of the Purpose of, and
2015, EDGA Exchange, Inc. (the
Washington, DC 20549–1090. Statutory Basis for, the Proposed Rule
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
All submissions should refer to File Securities and Exchange Commission Change
Number SR–NYSEMKT–2015–38. This (‘‘Commission’’) the proposed rule 1. Purpose
file number should be included on the change as described in Items I, II and III
subject line if email is used. To help the The Exchange proposes to: (i)
below, which Items have been prepared
Commission process and review your Decrease the rebate for orders yielding
by the Exchange. The Exchange has
comments more efficiently, please use Flag BY, which routes to BYX and
designated the proposed rule change as
only one method. The Commission will removes liquidity using routing
one establishing or changing a member
post all comments on the Commission’s strategies DIRC, ROUC, ROUE, ROBB, or
due, fee, or other charge imposed by the
Internet Web site (http://www.sec.gov/ ROCO; (ii) amend the criteria for the
Exchange under Section 19(b)(3)(A)(ii)
rules/sro.shtml). Copies of the MidPoint Discretionary Order Add
of the Act 3 and Rule 19b–4(f)(2)
submission, all subsequent Volume Tier; and (iii) make an
thereunder,4 which renders the
amendments, all written statements immaterial, non-substantive change.
proposed rule change effective upon
with respect to the proposed rule filing with the Commission. The Flag BY
change that are filed with the Commission is publishing this notice to
Commission, and all written In securities priced at or above $1.00,
solicit comments on the proposed rule the Exchange currently provides a
communications relating to the change from interested persons.
proposed rule change between the rebate of $0.00160 per share for
Commission and any person, other than I. Self-Regulatory Organization’s Members’ orders that yield Flag BY,
those that may be withheld from the Statement of the Terms of Substance of which routes to BYX and removes
public in accordance with the the Proposed Rule Change
5 The term ‘‘Member’’ is defined as ‘‘any
provisions of 5 U.S.C. 552, will be The Exchange filed a proposal to registered broker or dealer, or any person associated
tkelley on DSK3SPTVN1PROD with NOTICES
available for Web site viewing and amend its fees and rebates applicable to with a registered broker or dealer [sic], that has
printing in the Commission’s Public been admitted to membership in the Exchange. A
Reference Room, 100 F Street, NE., 16 17
Member will have the status of a ‘‘member’’ of the
CFR 200.30–3(a)(12). Exchange as that term is defined in Section 3(a)(3)
Washington, DC 20549 on official 1 15 U.S.C. 78s(b)(1). of the Act.’’ See Exchange Rule 1.5(n).
business days between the hours of 2 17 CFR 240.19b–4. 6 The DIRC, ROUC, ROUE, ROBB, or ROCO
3 15 U.S.C. 78s(b)(3)(A)(ii).
routing strategies are set forth in Exchange Rule
15 15 U.S.C. 78s(b)(2)(B). 4 17 CFR 240.19b–4(f)(2). 11.11(g).
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liquidity using routing strategies DIRC, Exchange at the midpoint of the which BATS Trading passed through to
ROUC, ROUE, ROBB, or ROCO. The National Best Bid or Offer (‘‘NBBO’’). the Exchange and the Exchange
Exchange proposes to amend its Fee provided its Members. When BATS
Non-Substantive Changes
Schedule to decrease the rebate for Trading routes to BYX, it will now be
orders that yield Flag BY to $0.00150 The Exchange also proposes to make provided a rebate of $0.00150 per share.
per share in securities priced at or above an immaterial, non-substantive change The Exchange does not levy additional
$1.00.7 The proposed change represents to its Fee Schedule by removing ‘‘, Inc.’’ fees or offer additional rebates for orders
a pass through of the rate BATS from the reference to the Exchange in that it routes to BYX through BATS
Trading, Inc. (‘‘BATS Trading’’), the the heading of the Fee Schedule. This Trading. Therefore, the Exchange
Exchange’s affiliated routing broker- non-substantive change is intended to believes that the proposed change to
dealer, is provided for routing orders to make the reference to the Exchange in Flag BY is equitable and reasonable
BYX that remove liquidity. The the heading of the Fee Schedule because it accounts for the pricing
proposed change is in response to BYX’s consistent with the manner in which its changes on BYX, which enables the
May 2015 fee change where BYX affiliated exchanges 10 are referenced in Exchange to provide its Members the
decreased its rebate from $0.00160 per their respective fee schedules. applicable pass-through rebate. Lastly,
share to $0.00150 per share for orders in Implementation Date the Exchange notes that routing through
securities priced at or above $1.00.8 BATS Trading is voluntary and believes
When BATS Trading routes to and The Exchange proposes to implement that the proposed change is non-
removes liquidity from BYX, it will now these amendments to its Fee Schedule discriminatory because it applies
receive a standard rebate of $0.00150 on May 1, 2015. uniformly to all Members.
per share. BATS Trading will pass 2. Statutory Basis MidPoint Discretionary Order Add
through the rebate provided by BYX to
The Exchange believes that the Volume Tier
the Exchange and the Exchange, in turn,
proposed rule change is consistent with The Exchange believes amending the
will pass through this rate to its
the objectives of Section 6 of the Act,11 criteria for the MidPoint Discretionary
Members.
in general, and furthers the objectives of Order Add Volume Tier represents an
MidPoint Discretionary Order Add Section 6(b)(4),12 in particular, as it is equitable allocation of reasonable dues,
Volume Tier designed to provide for the equitable fees, and other charges among Members
The Exchange proposes to amend the allocation of reasonable dues, fees and and other persons using its facilities
criteria for the MidPoint Discretionary other charges among its Members and because it is designed to further
Order Add Volume Tier. Under the tier, other persons using its facilities. The incentivize Members to increase their
a Member qualifies for a reduced fee of Exchange also notes that it operates in use of MidPoint Discretionary orders on
$0.0003 per share where that Member: a highly-competitive market in which EDGA. MidPoint Discretionary Orders
(i) Adds an ADV of at least 0.25% of the market participants can readily direct increase displayed liquidity on the
TCV including non-displayed orders order flow to competing venues if they Exchange while also enhancing
that add liquidity; and (ii) adds or deem fee levels at a particular venue to execution opportunities at the mid-
removes an ADV of at least 1,500,000 be excessive. The proposed rule change point of the NBBO. Promotion of
shares yielding fee codes DM or DT. Fee reflects a competitive pricing structure displayed liquidity at the NBBO
code DM is applied to Non-Displayed designed to incent [sic] market enhances market quality for all
orders that add liquidity using MidPoint participants to direct their order flow to Members. Members utilizing MidPoint
Discretionary orders 9 and fee code DT the Exchange. The Exchange believes Discretionary orders provide liquidity at
is applied to Non-Displayed orders that that the proposed rates are equitable and the midpoint of the NBBO increasing
remove liquidity using MidPoint non-discriminatory in that they apply the potential for an order to receive
Discretionary Orders. Orders that yield uniformly to all Members. The price improvement, and easing the tier’s
fee code DM or fee code DT that do not Exchange believes the fees and credits criteria so that Members may be eligible
meet to the criteria of the MidPoint remain competitive with those charged for a decreased fee is a reasonable
Discretionary Order Add Volume Tier by other venues and therefore continue means by which to encourage the use of
are charged a fee of $0.00050 per share. to be reasonable and equitably allocated such orders. In addition, the Exchange
The Exchange now proposes to decrease to Members. believes that by encouraging the use of
the ADV requirement to require that a Flag BY MidPoint Discretionary orders by easing
Member add or remove an ADV of at the tier’s criteria, Members seeking price
The Exchange believes that its
least 500,000 shares yielding fee codes improvement would be more motivated
proposal to decrease the rebate for
DM or DT. Easing the criteria of the to direct their orders to EDGA because
orders that yield Flag BY represents an
MidPoint Discretionary Order Add they would have a heightened
equitable allocation of reasonable dues,
Volume Tier is intended to further expectation of the availability of
fees, and other charges among Members
incentive Members to submit an liquidity at the midpoint of the NBBO.
and other persons using its facilities.
increased number of MidPoint The Exchange also believes that the
Prior to the BYX’s May 2015 fee change,
Discretionary orders to the Exchange, proposed addition of the MidPoint
BYX provided BATS Trading a rebate of
thereby increasing the liquidity on the Discretionary Order Add Volume Tier is
$0.00160 per share to remove liquidity
in securities priced at or above $1.00, non-discriminatory because it will be
7 The Exchange does not propose to amend its fee
available to all Members.
for orders that yield Flag BY in securities priced
10 The Exchange’s affiliated exchanges are BATS
below $1.00. Non-Substantive Changes
tkelley on DSK3SPTVN1PROD with NOTICES
8 See BYX Exchange Fee Schedule Changes Exchange, Inc., BATS Y-Exchange, Inc., and EDGX
Effective May 1, 2015 available at http:// Exchange, Inc. (‘‘EDGX’’). The Exchange The Exchange believes that the non-
cdn.batstrading.com/resources/fee_schedule/2015/ understands that EDGX also intends to file a substantive change to its Fee Schedule
BATS-BYX-Exchange-BZX-Exchange-EDGA- proposed rule change with the Commission making
a similar change to how EDGX is referenced in the
is reasonable because it is not designed
Exchange-and-EDGX-Exchange-Fee-Schedule-
Changes-Effective-May-1–2015.pdf. heading of its fee schedule. to amend any fee, nor alter the manner
9 See Exchange Rule 11.8(e) for a description of 11 15 U.S.C. 78f. in which it assesses fees or calculates
MidPoint Discretionary orders. 12 15 U.S.C. 78f(b)(4). rebates. This non-substantive change to
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![Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices 28721
the Fee Schedule is intended to make midpoint of the NBBO and better market Commission process and review your
the reference to the Exchange in the quality at the Exchange. comments more efficiently, please use
heading of the Fee Schedule consistent only one method. The Commission will
Non-Substantive Changes
with the manner in which its affiliated post all comments on the Commission’s
exchanges are referenced in their The Exchange believes that the non- Internet Web site (http://www.sec.gov/
respective fee schedules, thereby substantive change to the Fee Schedule rules/sro.shtml). Copies of the
removing impediments to and will not affect intermarket nor submission, all subsequent
perfecting the mechanism of a free and intramarket competition because the amendments, all written statements
open market and a national market change is not designed to amend any fee with respect to the proposed rule
system, and, in general, protecting or alter the manner in which the change that are filed with the
investors and the public interest. Exchange assesses fees or calculates Commission, and all written
rebates. communications relating to the
(B) Self-Regulatory Organization’s
Statement on Burden on Competition (C) Self-Regulatory Organization’s proposed rule change between the
Statement on Comments on the Commission and any person, other than
The Exchange believes its proposed those that may be withheld from the
amendments to its Fee Schedule would Proposed Rule Change Received From
Members, Participants or Others public in accordance with the
not impose any burden on competition provisions of 5 U.S.C. 552, will be
that is not necessary or appropriate in The Exchange has not solicited, and available for Web site viewing and
furtherance of the purposes of the Act. does not intend to solicit, comments on printing in the Commission’s Public
The Exchange does not believe that the this proposed rule change. The Reference Room, 100 F Street NE.,
proposed change represents a significant Exchange has not received any Washington, DC 20549, on official
departure from previous pricing offered unsolicited written comments from business days between the hours of
by the Exchange or pricing offered by Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of the
the Exchange’s competitors. filing will also be available for
Additionally, Members may opt to III. Date of Effectiveness of the
Proposed Rule Change and Timing for inspection and copying at the principal
disfavor the Exchange’s pricing if they office of the Exchange. All comments
believe that alternatives offer them Commission Action
received will be posted without change;
better value. Accordingly, the Exchange The foregoing rule change has become the Commission does not edit personal
does not believe that the proposed effective pursuant to Section 19(b)(3)(A) identifying information from
change will impair the ability of of the Act 13 and paragraph (f) of Rule submissions. You should submit only
Members or competing venues to 19b–4 thereunder.14 At any time within information that you wish to make
maintain their competitive standing in 60 days of the filing of the proposed rule available publicly. All submissions
the financial markets. change, the Commission summarily may should refer to File Number SR–EDGA–
temporarily suspend such rule change if 2015–18 and should be submitted on or
Fee Code BY
it appears to the Commission that such before June 9,2015.
The Exchange believes that its action is necessary or appropriate in the
proposal to pass through the amended public interest, for the protection of For the Commission, by the Division of
rebate for orders that yield Flags BY investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
would increase intermarket competition authority.15
the purposes of the Act.
because it offers customers an Robert W. Errett,
alternative means to route to BYX for IV. Solicitation of Comments Deputy Secretary.
the same rebate that they would be Interested persons are invited to [FR Doc. 2015–12016 Filed 5–18–15; 8:45 am]
provided if they entered orders on that submit written data, views, and BILLING CODE 8011–01–P
trading center directly. The Exchange arguments concerning the foregoing,
believes that its proposal would not including whether the proposed rule
burden intramarket competition because change is consistent with the Act. SECURITIES AND EXCHANGE
the proposed rebate would apply Comments may be submitted by any of COMMISSION
uniformly to all Members. the following methods:
[Release No. 34–74951; File No. SR–
MidPoint Discretionary Order Add Electronic Comments NYSEARCA–2015–38]
Volume Tier
• Use the Commission’s Internet Self-Regulatory Organizations; NYSE
The Exchange believes that its comment form (http://www.sec.gov/ Arca, Inc.; Notice of Filing of Proposed
proposal to ease the criteria for the rules/sro.shtml); or Rule Change Adopting New Equity
MidPoint Discretionary Order Add • Send an email to rule-comments@ Trading Rules Relating to Trading
Volume Tier would increase intermarket sec.gov. Please include File Number SR– Sessions, Order Ranking and Display,
competition because it would further EDGA–2015–18 on the subject line. and Order Execution To Reflect the
incentivize Members to send an
Paper Comments Implementation of Pillar, the
increased amount MidPoint
Exchange’s New Trading Technology
Discretionary orders to the Exchange in • Send paper comments in triplicate
Platform
order to qualify for the tier’s decreased to Brent J. Fields, Secretary, Securities
fee. The Exchange believes that its and Exchange Commission, 100 F Street May 13, 2015.
proposal would neither increase nor NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the
tkelley on DSK3SPTVN1PROD with NOTICES
decrease intramarket competition All submissions should refer to File Securities Exchange Act of 1934 (the
because the MidPoint Discretionary Number SR–EDGA–2015–18. This file ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Order Add Volume Tier would apply number should be included on the
uniformly to all Members and the ability subject line if email is used. To help the 15 17 CFR 200.30–3(a)(12).
of some Members to meet the tier would 1 15 U.S.C. 78s(b)(1).
only benefit other Members by 13 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
contributing to increased liquidity at the 14 17 CFR 240.19b–4(f). 3 15 CFR 240.19b–4.
VerDate Sep<11>2014 16:53 May 18, 2015 Jkt 235001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 E:\FR\FM\19MYN1.SGM 19MYN1](https://thefederalregister.org/doc/80_FR_28815/page/3.svg)
Document Created: 2015-12-15 15:30:03
Document Modified: 2015-12-15 15:30:03
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 80 FR 28719 |
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