80_FR_34861 80 FR 34745 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc.

80 FR 34745 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 116 (June 17, 2015)

Page Range34745-34748
FR Document2015-14832

Federal Register, Volume 80 Issue 116 (Wednesday, June 17, 2015)
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Notices]
[Pages 34745-34748]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14832]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75159; File No. SR-BYX-2015-28]


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

June 11, 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 June 9, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange.\3\ 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 \4\ and Rule 19b-4(f)(2) 
thereunder,\5\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Commission notes that a previous version of the proposal 
was filed as SR-BYX-2015-27. The proposal was withdrawn on June 9, 
2015.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend its fees and rebates 
applicable to Members \6\ of the Exchange pursuant to Rule 15.1(a) and 
(c) (``Fee Schedule'') to: (i) Increase the rebate from $0.0004 per 
share to $0.0015 per share for orders that yield fee code A, which 
routes to the Nasdaq Stock Market LLC (``Nasdaq'') and adds liquidity; 
and (ii) adopt fees for the use of a communication and routing service 
known as BATS Connect.
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    \6\ A Member is defined as ``any registered broker or dealer 
that has been admitted to membership in the Exchange.'' See Exchange 
Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to: (i) Increase the rebate from $0.0004 per 
share to $0.0015 per share for orders that yield fee code A, which 
routes to Nasdaq and adds liquidity; and (ii) adopt fees for the use of 
a communication and routing service known as BATS Connect.
Fee Code A
    In securities priced at or above $1.00, the Exchange currently 
provides a rebate of $0.0004 per share for Members' orders that yield 
fee code A, applicable to orders routed to Nasdaq that add liquidity. 
The Exchange proposes to amend its Fee Schedule to increase this rebate 
to $0.0015 per share for Members' orders that yield fee code A. The 
proposed change represents a pass through of the rate that BATS 
Trading, Inc. (``BATS Trading''), the Exchange's affiliated routing 
broker-dealer, will be rebated for routing orders to Nasdaq when it 
does not qualify for a volume tiered rebate. The Exchange notes that 
the proposed change is in response to Nasdaq's June 2015 fee change 
where Nasdaq will no longer offer a rebate of $0.0004 per share for 
orders in select symbols (``Nasdaq's Select Symbol Program'') to its 
customers, such as BATS Trading, and such orders will be subject to the 
regular Nasdaq Pricing Schedule.\7\ Accordingly, when BATS Trading 
routes to Nasdaq in any symbol, it will be rebated a standard rate of 
$0.0015 per share. BATS Trading will pass through this rate on Nasdaq 
to the Exchange and the Exchange, in turn, will pass through this rate 
to its Members.
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    \7\ See Nasdaq Equity Trader Alert #2015-70, Nasdaq Ends Access 
Fee Experiment, available at http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2015-70.
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BATS Connect
    On May 26 [sic], 2015, the Exchange filed a proposed rule change 
with the Commission to adopt a communication and routing service known 
as BATS Connect.\8\ The Exchange now proposes to adopt fees related to 
the use of BATS Connect that are equal to the fees charged for an 
identical service, also called BATS Connect, offered by the Exchange's 
affiliate, EDGX.\9\ BATS

[[Page 34746]]

Connect is offered by the Exchange on a voluntary basis in a capacity 
similar to a vendor. In sum, BATS Connect is a communication service 
that provides subscribers an additional means to receive market data 
from and route orders to any destination connected to the Exchange's 
network. BATS Connect does not provide any advantage to subscribers for 
connecting to the Exchange's affiliates \10\ as compared to other 
method of connectivity available to subscribers. The servers of the 
subscriber need not be located in the same facilities as the Exchange 
in order to subscribe to BATS Connect. Subscribers may also seek to 
utilize BATS Connect in the event of a market disruption where other 
alternative connection methods become unavailable.
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    \8\ See file no. SR-BYX-2015-26.
    \9\ See the EDGX fee schedule available at http://batstrading.com/support/fee_schedule/edgx/. See also Securities 
Exchange Act Release No. 73780 (December 8, 2014), 79 FR 73942 
(December 12, 2014) (SR-EDGX-2014-28) and file no. SR-EDGX-2015-27.
    \10\ The Exchange's affiliated exchanges are EDGX, EDGA 
Exchange, Inc. (``EDGA''), and BATS Exchange, Inc. (``BZX''). The 
Exchange understands that its affiliated exchanges intend to file 
identical proposed rule changes to adopt the fees for the BATS 
Connect service with the Commission. The Exchange also notes that 
its affiliated exchanges have also filed proposed rule changes with 
the Commission to adopt rules describing the BATS Connect service.
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    The Exchange will charge a monthly connectivity fee to subscribers 
utilizing BATS Connect to route orders to other exchanges and broker-
dealers that are connected to the Exchange's network. The amount of the 
connectivity fee varies based solely on the bandwidth selected by the 
subscriber. Specifically, the Exchange proposes to charge $350 for 1 
Mb, $700 for 5 Mb, $950 for 10 Mb, $1,500 for 25 Mb, $2,500 for 50 Mb, 
and $3,500 for 100 Mb.
    BATS Connect would also allow subscribers to receive market data 
feeds from the exchanges connected to the Exchange's network. In such 
case, the subscriber would pay the Exchange a connectivity fee, which 
varies and is based solely on the amount of bandwidth required to 
transmit the selected data product to the subscriber. The proposed 
connectivity fees are set forth in the Exhibit 5 attached hereto and 
range from no charge to $11,500 based on the market data product the 
subscriber selects.
    The Exchange also proposes to adopt a discounted fee of $4,160 per 
month for subscribers who purchase connectivity to a bundle of select 
market data products. The following market data products would be 
included in the bundle: UQDF/UTDF/OMDF, CQS/CTS, Nasdaq TotalView, 
Nasdaq BX TotalView, Nasdaq PSX TotalView, NYSE ArcaBook, NYSE MKT 
OpenBook Ultra, and BBS/TTDS. Absent the discount, a subscriber 
purchasing connectivity through BATS Connect for each of these market 
data products would pay a total monthly fee of $5,200. As proposed, a 
subscriber who purchases connectivity to each of the above market data 
products would be charged a monthly fee of $4,160, which represents a 
20% discount. The subscribers would pay any fees charged by the 
exchange providing the market data feed directly to that exchange.
    The Exchange notes that it will not charge a fee to subscribers 
utilizing BATS Connect to route orders to or receive market data 
products from the Exchange's affiliates, EDGX, BZX, and EDGA. BATS 
Connect provides subscribers a means to access exchanges and market 
centers on the Exchange's network. In all cases, BATS Connect 
subscribers would be continue to be liable for the necessary fees 
charged by that exchange or market center, including any required 
connectivity fees. Market participants who chose a method other than 
BATS Connect to connect to another exchange or market center would also 
pay any required connectivity fees directly to that exchange or market 
center. Likewise, BATS Connect subscribers would be liable for any 
connectivity fees charged by the Exchange's affiliate.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule immediately.
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 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.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
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Fee Code A
    The Exchange believes that its proposal to increase the pass 
through rebate for Members' orders that yield fee code A from $0.0004 
to $0.0015 per share represents an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities. Under Nasdaq's Select Symbol Program, Nasdaq provided BATS 
Trading a rebate of $0.0004 per share for orders executed in select 
symbols, which BATS Trading passed through to the Exchange and the 
Exchange passed through to its Members, not only for orders routed in 
select symbols but in all securities. In June 2015, Nasdaq will 
terminate its Select Symbol Program, thereby increasing the rebate it 
provides its customers, such as BATS Trading, in select symbols from a 
rebate of $0.0004 per share to its standard rebate of $0.0015 per share 
for orders that are routed to Nasdaq.\13\ Therefore, the Exchange 
believes that the proposed change in fee code A from a rebate of 
$0.0004 per share to a rebate of $0.0015 per share is equitable and 
reasonable because it accounts for the pricing changes on Nasdaq. In 
addition, the proposal allows the Exchange to continue to charge its 
Members a pass-through rate for orders that are routed to Nasdaq. The 
Exchange notes that routing through BATS Trading is voluntary. Lastly, 
the Exchange also believes that the proposed amendment is non-
discriminatory because it applies uniformly to all Members.
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    \13\ See supra note 6.
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BATS Connect
    The Exchange also believes that its proposal is consistent with 
Section 6(b)(4) of the Act,\14\ in that it provides for the equitable 
allocation of reasonable dues, fees and other charges among members and 
other persons using its facilities. First, the Exchange will charge a 
connectivity fee to subscribers utilizing BATS Connect to route orders 
to other exchanges and market centers that are connected to the 
Exchange's network, which varies based solely on the amount of 
bandwidth selected by the subscriber. The amounts of the connectivity 
fees are also reasonable as compared to similar fees charged by other 
exchanges. For purposes of order routing, the Exchange proposes to 
charge $350 for 1 Mb, $700 for 5 Mb, $950 for 10 Mb, $1,500 for 25 Mb, 
$2,500 for 50 Mb, and $3,500 for 100

[[Page 34747]]

Mb. The New York Stock Exchange, Inc. (``NYSE'') currently charges $300 
for 1 Mb, $700 for 5 Mb, $900 for 10 Mb, $1,500 for 25 Mb, $2,000 for 
50 Mb, and $2,600 for 100 Mb.\15\ The Exchange notes that, overall, the 
connectivity fee for routing of orders to other market centers proposed 
by the Exchange is similar to that charged by the NYSE.
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    \14\ 15 U.S.C. 78f(b)(4).
    \15\ See NYSE's SFTI Americas Product and Service List available 
at http://www.nyxdata.com/docs/connectivity.
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    Second, with regard to utilizing BATS Connect to receive market 
data products from other exchanges, the Exchange would only charge 
subscribers a connectivity fee, the amount of which is based solely on 
the amount of bandwidth required to transmit that specific data product 
to the subscribers. The amounts of the connectivity fees are also 
reasonable as compared to similar fees charged by other exchanges. For 
example, for market data connectivity, the Nasdaq Stock Market LLC 
(``Nasdaq'') charges $1,412 per month for CQS/CTS data feed, and the 
Exchange proposes to charge $1,000 per month connectivity for CQS/CTS 
data feed.\16\ The Exchange notes that, overall, the connectivity fee 
for receipt of other market centers' data feed proposed by the Exchange 
is similar to than that charged by Nasdaq.
---------------------------------------------------------------------------

    \16\ See Nasdaq Rule 7034 (setting forth Nasdaq's connectivity 
fees for receipt of third party market data products).
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    The Exchange believes it is reasonable to offer such discounted 
pricing to subscribers who purchase connectivity to a bundle of market 
data products as it would enable them to reduce their overall 
connectivity costs for the receipt of market data. As stated above, 
BATS Connect is offered and purchased on a voluntary basis and 
subscribers can discontinue use at any time and for any reason, 
including due to an assessment of the reasonableness of fees charged. 
Moreover, the Exchange believes the proposed fees are reasonable and 
equitable because they continue to be based on the Exchange's costs to 
cover the amount of bandwidth required to provide connectivity to the 
select bundle of data feeds. The proposed fees will continue to allow 
the Exchange to recoup this cost, while providing subscribers with an 
alternative means to connect to the select bundle of data feeds at a 
discounted rate.
    The subscribers would pay any fees: (i) Charged by the exchange 
providing the market data feed directly to that exchange (ii) charged 
by a market center to which they routed an order and an execution 
occurred directly to that market center. The Exchange itself would not 
charge any additional fees.\17\ BATS Connect is offered and purchased 
on a voluntary basis, in that neither the Exchange nor subscribers are 
required by any rule or regulation to make this product available. 
Accordingly, subscribers can discontinue use at any time and for any 
reason, including due to an assessment of the reasonableness of fees 
charged.
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    \17\ The Exchange's rules and fees would not address the fees or 
manner of operation of any destination to which the subscriber asked 
that an order be routed.
---------------------------------------------------------------------------

    Moreover, the Exchange believes the proposed fees are reasonable 
and equitable because they are based on the Exchange's costs to cover 
hardware, installation, testing and connection, as well as expenses 
involved in maintaining and managing the service. The proposed fees 
allow the Exchange to recoup these costs, while providing subscribers 
with an alternative means to connect to other exchange and market 
centers. The Exchange believes that the proposed fees are reasonable 
and equitable in that they reflect the costs and the benefit of 
providing alternative connectivity.
    The Exchange also believes it is equitable and reasonable to 
provide BATS Connect to subscribers for no charge to route orders to or 
receive market data products from the Exchange's affiliates. BATS 
Connect provides subscribers a means to access exchanges and market 
centers on the Exchange's network. In all cases, BATS Connect 
subscribers would be continue to be liable for the necessary fees 
charged by the Exchange, its affiliate, or another exchange or market 
center, including any required connectivity fees. As stated above, BATS 
Connect is offered and purchased on a voluntary basis, and subscribers 
and market participants may choose an alternative method to connect to 
the Exchange, its affiliates, or another exchange or market center 
connected to the Exchange's network. Such other services may also offer 
at no charge connectivity to certain exchanges or a group of 
exchanges.\18\ Therefore, the Exchange believes that the [sic] 
providing BATS Connect to subscribers at no charge to route orders to 
or receive market data products from the Exchange's affiliates is 
reasonable and equitable as they will continue to be liable to the 
Exchange or its affiliate for any required connectivity fees.
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    \18\ See NYSE's SFTI Americas Product and Service List available 
at http://www.nyxdata.com/docs/connectivity (offering at no charge 
connectivity to the NYSE, NYSE MKT LLC, and NYSE Arca, Inc.).
---------------------------------------------------------------------------

    Lastly, the Exchange also believes that the proposed amendments to 
its fee schedule are non-discriminatory because they will apply 
uniformly to all subscribers. All subscribers that voluntarily select 
various service options will be charged the same amount for the same 
services. All subscribers have the option to select any connectivity 
option, and there is no differentiation among subscribers with regard 
to the fees charged for the service. Further, the benefits of selecting 
such services are the same for all subscribers, irrespective of whether 
their servers are located in the same facility as the Exchange.

(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 A
    The Exchange believes that its proposal to pass through a rebate of 
$0.0015 per share for Members' orders that yield fee code A would 
increase intermarket competition because it offers customers an 
alternative means to route to Nasdaq for a similar rate as entering 
orders in certain symbols on Nasdaq directly. The Exchange believes 
that its proposal would not burden intramarket competition because the 
proposed rate would apply uniformly to all Members.
BATS Connect
    The Exchange does not believe the proposed fees for BATS Connect 
will result in any burden on competition. The proposed rule change is 
designed to provide subscribers with an alternative means to access 
other market centers on the Exchange's network if they choose or in the 
event of a market disruption where other alternative connection methods 
become unavailable. BATS Connect is not the exclusive method to connect 
to these market centers and subscribers may utilize alternative methods 
to connect to the product if they believe the Exchange's proposed 
pricing is unreasonable or otherwise.

[[Page 34748]]

Therefore, the Exchange does not believe the proposed rule change will 
have any effect on competition.

(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 \19\ and paragraph (f) of Rule 19b-4 
thereunder.\20\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BYX-2015-28 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BYX-2015-28. 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-BYX-2015-28 and should be 
submitted on or before July 8, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14832 Filed 6-16-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                                    34745

                                                    Arca Rule 3.3(a)(2)(C), the                             ‘‘Act’’),1 and Rule 19b–4 thereunder,2                 (A) Self-Regulatory Organization’s
                                                    responsibilities, enumerated functions,                 notice is hereby given that on June 9,                 Statement of the Purpose of, and
                                                    and authority of the ROC are                            2015, BATS Y-Exchange, Inc. (the                       Statutory Basis for, the Proposed Rule
                                                    substantially similar to those of other                 ‘‘Exchange’’ or ‘‘BYX’’) filed with the                Change
                                                    exchanges.15 In addition, the                           Securities and Exchange Commission
                                                                                                                                                                   1. Purpose
                                                    Commission believes that the proposed                   (‘‘Commission’’) the proposed rule
                                                    requirement that the members of the                     change as described in Items I, II and III               The Exchange proposes to: (i) Increase
                                                    ROC consist of either Public Directors of               below, which Items have been prepared                  the rebate from $0.0004 per share to
                                                    the Exchange or directors of NYSE                       by the Exchange.3 The Exchange has                     $0.0015 per share for orders that yield
                                                    Regulation, who meet the Exchange’s                     designated the proposed rule change as                 fee code A, which routes to Nasdaq and
                                                    Public Director requirements,16 and the                 one establishing or changing a member                  adds liquidity; and (ii) adopt fees for the
                                                    provisions relating to the removal of a                 due, fee, or other charge imposed by the               use of a communication and routing
                                                    member of the ROC either for cause or                   Exchange under Section 19(b)(3)(A)(ii)                 service known as BATS Connect.
                                                    for failing to qualify under the                        of the Act 4 and Rule 19b–4(f)(2)
                                                                                                                                                                   Fee Code A
                                                    Exchange’s Public Director                              thereunder,5 which renders the
                                                    requirement,17 should help ensure the                   proposed rule change effective upon                       In securities priced at or above $1.00,
                                                    continued independence of the                           filing with the Commission. The                        the Exchange currently provides a
                                                    members of the ROC. The proposal to                     Commission is publishing this notice to                rebate of $0.0004 per share for Members’
                                                    establish a ROC should assist the                       solicit comments on the proposed rule                  orders that yield fee code A, applicable
                                                    Exchange in meeting its statutory                       change from interested persons.                        to orders routed to Nasdaq that add
                                                    obligations to comply, and to enforce                                                                          liquidity. The Exchange proposes to
                                                                                                            I. Self-Regulatory Organization’s                      amend its Fee Schedule to increase this
                                                    compliance by its members and persons
                                                                                                            Statement of the Terms of Substance of                 rebate to $0.0015 per share for Members’
                                                    associated with its members, with the
                                                                                                            the Proposed Rule Change                               orders that yield fee code A. The
                                                    Act, the rules and regulations
                                                    thereunder, and the rules of the                           The Exchange filed a proposal to                    proposed change represents a pass
                                                    Exchange. Accordingly, the Commission                   amend its fees and rebates applicable to               through of the rate that BATS Trading,
                                                    finds that the proposed rule change is                  Members 6 of the Exchange pursuant to                  Inc. (‘‘BATS Trading’’), the Exchange’s
                                                    consistent with the Act.                                Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to:            affiliated routing broker-dealer, will be
                                                                                                            (i) Increase the rebate from $0.0004 per               rebated for routing orders to Nasdaq
                                                    IV. Conclusion                                          share to $0.0015 per share for orders                  when it does not qualify for a volume
                                                      It is therefore ordered, pursuant to                  that yield fee code A, which routes to                 tiered rebate. The Exchange notes that
                                                    Section 19(b)(2) of the Act,18 that the                 the Nasdaq Stock Market LLC                            the proposed change is in response to
                                                    proposed rule change (SR–NYSEARCA–                      (‘‘Nasdaq’’) and adds liquidity; and (ii)              Nasdaq’s June 2015 fee change where
                                                    2015–29) be, and it hereby is, approved.                adopt fees for the use of a                            Nasdaq will no longer offer a rebate of
                                                                                                            communication and routing service                      $0.0004 per share for orders in select
                                                      For the Commission, by the Division of                known as BATS Connect.                                 symbols (‘‘Nasdaq’s Select Symbol
                                                    Trading and Markets, pursuant to delegated                 The text of the proposed rule change
                                                    authority.19                                                                                                   Program’’) to its customers, such as
                                                                                                            is available at the Exchange’s Web site                BATS Trading, and such orders will be
                                                    Robert W. Errett,                                       at www.batstrading.com, at the                         subject to the regular Nasdaq Pricing
                                                    Deputy Secretary.                                       principal office of the Exchange, and at               Schedule.7 Accordingly, when BATS
                                                    [FR Doc. 2015–14829 Filed 6–16–15; 8:45 am]             the Commission’s Public Reference                      Trading routes to Nasdaq in any symbol,
                                                    BILLING CODE 8011–01–P                                  Room.                                                  it will be rebated a standard rate of
                                                                                                            II. Self-Regulatory Organization’s                     $0.0015 per share. BATS Trading will
                                                                                                            Statement of the Purpose of, and                       pass through this rate on Nasdaq to the
                                                    SECURITIES AND EXCHANGE                                                                                        Exchange and the Exchange, in turn,
                                                    COMMISSION                                              Statutory Basis for, the Proposed Rule
                                                                                                            Change                                                 will pass through this rate to its
                                                                                                                                                                   Members.
                                                    [Release No. 34–75159; File No. SR–BYX–                    In its filing with the Commission, the
                                                    2015–28]                                                Exchange included statements                           BATS Connect
                                                                                                            concerning the purpose of and basis for                   On May 26 [sic], 2015, the Exchange
                                                    Self-Regulatory Organizations; BATS                     the proposed rule change and discussed                 filed a proposed rule change with the
                                                    Y-Exchange, Inc.; Notice of Filing and                  any comments it received on the                        Commission to adopt a communication
                                                    Immediate Effectiveness of a Proposed                   proposed rule change. The text of these                and routing service known as BATS
                                                    Rule Change Related to Fees for Use                     statements may be examined at the                      Connect.8 The Exchange now proposes
                                                    of BATS Y-Exchange, Inc.                                places specified in Item IV below. The                 to adopt fees related to the use of BATS
                                                                                                            Exchange has prepared summaries, set                   Connect that are equal to the fees
                                                    June 11, 2015.
                                                                                                            forth in Sections A, B, and C below, of                charged for an identical service, also
                                                      Pursuant to Section 19(b)(1) of the                   the most significant parts of such                     called BATS Connect, offered by the
                                                    Securities Exchange Act of 1934 (the                    statements.                                            Exchange’s affiliate, EDGX.9 BATS
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                      15 See, e.g., Bylaws of NASDAQ Stock Market             1 15 U.S.C. 78s(b)(1).                                 7 See Nasdaq Equity Trader Alert #2015–70,
                                                    LLC, Article III, Section 5(c); Third Amended and         2 17 CFR 240.19b–4.                                  Nasdaq Ends Access Fee Experiment, available at
                                                    Restated Bylaws of BATS Exchange, Inc., Article V,        3 The Commission notes that a previous version
                                                                                                                                                                   http://www.nasdaqtrader.com/
                                                    Section 6(c); Amended and Restated Bylaws of            of the proposal was filed as SR–BYX–2015–27. The       TraderNews.aspx?id=ETA2015-70.
                                                    Miami International Securities Exchange, LLC,           proposal was withdrawn on June 9, 2015.                  8 See file no. SR–BYX–2015–26.
                                                    Article IV, Section 4.5(c).                               4 15 U.S.C. 78s(b)(3)(A)(ii).                          9 See the EDGX fee schedule available at http://
                                                      16 See supra note 7 and accompanying text.              5 17 CFR 240.19b–4(f)(2).
                                                                                                                                                                   batstrading.com/support/fee_schedule/edgx/. See
                                                      17 See supra note 8 and accompanying text.              6 A Member is defined as ‘‘any registered broker     also Securities Exchange Act Release No. 73780
                                                      18 15 U.S.C. 78s(b)(2).
                                                                                                            or dealer that has been admitted to membership in      (December 8, 2014), 79 FR 73942 (December 12,
                                                      19 17 CFR 200.30–3(a)(12).                            the Exchange.’’ See Exchange Rule 1.5(n).                                                         Continued




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                                                    34746                         Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    Connect is offered by the Exchange on                    discount, a subscriber purchasing                       to be reasonable and equitably allocated
                                                    a voluntary basis in a capacity similar                  connectivity through BATS Connect for                   to Members.
                                                    to a vendor. In sum, BATS Connect is                     each of these market data products
                                                                                                                                                                     Fee Code A
                                                    a communication service that provides                    would pay a total monthly fee of $5,200.
                                                    subscribers an additional means to                       As proposed, a subscriber who                              The Exchange believes that its
                                                    receive market data from and route                       purchases connectivity to each of the                   proposal to increase the pass through
                                                    orders to any destination connected to                   above market data products would be                     rebate for Members’ orders that yield fee
                                                    the Exchange’s network. BATS Connect                     charged a monthly fee of $4,160, which                  code A from $0.0004 to $0.0015 per
                                                    does not provide any advantage to                        represents a 20% discount. The                          share represents an equitable allocation
                                                    subscribers for connecting to the                        subscribers would pay any fees charged                  of reasonable dues, fees, and other
                                                    Exchange’s affiliates 10 as compared to                  by the exchange providing the market                    charges among Members and other
                                                    other method of connectivity available                   data feed directly to that exchange.                    persons using its facilities. Under
                                                    to subscribers. The servers of the                          The Exchange notes that it will not                  Nasdaq’s Select Symbol Program,
                                                    subscriber need not be located in the                    charge a fee to subscribers utilizing                   Nasdaq provided BATS Trading a rebate
                                                    same facilities as the Exchange in order                 BATS Connect to route orders to or                      of $0.0004 per share for orders executed
                                                    to subscribe to BATS Connect.                            receive market data products from the                   in select symbols, which BATS Trading
                                                    Subscribers may also seek to utilize                     Exchange’s affiliates, EDGX, BZX, and                   passed through to the Exchange and the
                                                    BATS Connect in the event of a market                    EDGA. BATS Connect provides                             Exchange passed through to its
                                                    disruption where other alternative                       subscribers a means to access exchanges                 Members, not only for orders routed in
                                                    connection methods become                                and market centers on the Exchange’s                    select symbols but in all securities. In
                                                    unavailable.                                             network. In all cases, BATS Connect                     June 2015, Nasdaq will terminate its
                                                       The Exchange will charge a monthly                    subscribers would be continue to be                     Select Symbol Program, thereby
                                                    connectivity fee to subscribers utilizing                liable for the necessary fees charged by                increasing the rebate it provides its
                                                    BATS Connect to route orders to other                    that exchange or market center,                         customers, such as BATS Trading, in
                                                    exchanges and broker-dealers that are                    including any required connectivity                     select symbols from a rebate of $0.0004
                                                    connected to the Exchange’s network.                     fees. Market participants who chose a                   per share to its standard rebate of
                                                    The amount of the connectivity fee                       method other than BATS Connect to                       $0.0015 per share for orders that are
                                                    varies based solely on the bandwidth                     connect to another exchange or market                   routed to Nasdaq.13 Therefore, the
                                                    selected by the subscriber. Specifically,                center would also pay any required                      Exchange believes that the proposed
                                                    the Exchange proposes to charge $350                     connectivity fees directly to that                      change in fee code A from a rebate of
                                                    for 1 Mb, $700 for 5 Mb, $950 for 10 Mb,                 exchange or market center. Likewise,                    $0.0004 per share to a rebate of $0.0015
                                                    $1,500 for 25 Mb, $2,500 for 50 Mb, and                  BATS Connect subscribers would be                       per share is equitable and reasonable
                                                    $3,500 for 100 Mb.                                       liable for any connectivity fees charged                because it accounts for the pricing
                                                       BATS Connect would also allow                         by the Exchange’s affiliate.                            changes on Nasdaq. In addition, the
                                                    subscribers to receive market data feeds                                                                         proposal allows the Exchange to
                                                    from the exchanges connected to the                      Implementation Date                                     continue to charge its Members a pass-
                                                    Exchange’s network. In such case, the                      The Exchange proposes to implement                    through rate for orders that are routed to
                                                    subscriber would pay the Exchange a                      these amendments to its Fee Schedule                    Nasdaq. The Exchange notes that
                                                    connectivity fee, which varies and is                    immediately.                                            routing through BATS Trading is
                                                    based solely on the amount of                                                                                    voluntary. Lastly, the Exchange also
                                                    bandwidth required to transmit the                       2. Statutory Basis
                                                                                                                                                                     believes that the proposed amendment
                                                    selected data product to the subscriber.                    The Exchange believes that the                       is non-discriminatory because it applies
                                                    The proposed connectivity fees are set                   proposed rule change is consistent with                 uniformly to all Members.
                                                    forth in the Exhibit 5 attached hereto                   the objectives of Section 6 of the Act,11
                                                    and range from no charge to $11,500                      in general, and furthers the objectives of              BATS Connect
                                                    based on the market data product the                     Section 6(b)(4),12 in particular, as it is                The Exchange also believes that its
                                                    subscriber selects.                                      designed to provide for the equitable                   proposal is consistent with Section
                                                       The Exchange also proposes to adopt                   allocation of reasonable dues, fees and                 6(b)(4) of the Act,14 in that it provides
                                                    a discounted fee of $4,160 per month for                 other charges among its Members and                     for the equitable allocation of reasonable
                                                    subscribers who purchase connectivity                    other persons using its facilities. The                 dues, fees and other charges among
                                                    to a bundle of select market data                        Exchange also notes that it operates in                 members and other persons using its
                                                    products. The following market data                      a highly-competitive market in which                    facilities. First, the Exchange will charge
                                                    products would be included in the                        market participants can readily direct                  a connectivity fee to subscribers
                                                    bundle: UQDF/UTDF/OMDF, CQS/CTS,                         order flow to competing venues if they                  utilizing BATS Connect to route orders
                                                    Nasdaq TotalView, Nasdaq BX                              deem fee levels at a particular venue to                to other exchanges and market centers
                                                    TotalView, Nasdaq PSX TotalView,                         be excessive. The proposed rule change                  that are connected to the Exchange’s
                                                    NYSE ArcaBook, NYSE MKT OpenBook                         reflects a competitive pricing structure                network, which varies based solely on
                                                    Ultra, and BBS/TTDS. Absent the                          designed to incent market participants                  the amount of bandwidth selected by
                                                                                                             to direct their order flow to the                       the subscriber. The amounts of the
                                                    2014) (SR–EDGX–2014–28) and file no. SR–EDGX–            Exchange. The Exchange believes that                    connectivity fees are also reasonable as
                                                    2015–27.
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                                                                                                             the proposed rates are equitable and                    compared to similar fees charged by
                                                      10 The Exchange’s affiliated exchanges are EDGX,

                                                    EDGA Exchange, Inc. (‘‘EDGA’’), and BATS
                                                                                                             non-discriminatory in that they apply                   other exchanges. For purposes of order
                                                    Exchange, Inc. (‘‘BZX’’). The Exchange understands       uniformly to all Members. The                           routing, the Exchange proposes to
                                                    that its affiliated exchanges intend to file identical   Exchange believes the fees and credits                  charge $350 for 1 Mb, $700 for 5 Mb,
                                                    proposed rule changes to adopt the fees for the          remain competitive with those charged                   $950 for 10 Mb, $1,500 for 25 Mb,
                                                    BATS Connect service with the Commission. The
                                                    Exchange also notes that its affiliated exchanges
                                                                                                             by other venues and therefore continue                  $2,500 for 50 Mb, and $3,500 for 100
                                                    have also filed proposed rule changes with the
                                                                                                              11 15   U.S.C. 78f.                                     13 See   supra note 6.
                                                    Commission to adopt rules describing the BATS
                                                    Connect service.                                          12 15   U.S.C. 78f(b)(4).                               14 15   U.S.C. 78f(b)(4).



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                                                                                 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                             34747

                                                    Mb. The New York Stock Exchange, Inc.                   would not charge any additional fees.17                because they will apply uniformly to all
                                                    (‘‘NYSE’’) currently charges $300 for 1                 BATS Connect is offered and purchased                  subscribers. All subscribers that
                                                    Mb, $700 for 5 Mb, $900 for 10 Mb,                      on a voluntary basis, in that neither the              voluntarily select various service
                                                    $1,500 for 25 Mb, $2,000 for 50 Mb, and                 Exchange nor subscribers are required                  options will be charged the same
                                                    $2,600 for 100 Mb.15 The Exchange                       by any rule or regulation to make this                 amount for the same services. All
                                                    notes that, overall, the connectivity fee               product available. Accordingly,                        subscribers have the option to select any
                                                    for routing of orders to other market                   subscribers can discontinue use at any                 connectivity option, and there is no
                                                    centers proposed by the Exchange is                     time and for any reason, including due                 differentiation among subscribers with
                                                    similar to that charged by the NYSE.                    to an assessment of the reasonableness                 regard to the fees charged for the
                                                       Second, with regard to utilizing BATS                of fees charged.                                       service. Further, the benefits of selecting
                                                    Connect to receive market data products                    Moreover, the Exchange believes the                 such services are the same for all
                                                    from other exchanges, the Exchange                      proposed fees are reasonable and                       subscribers, irrespective of whether
                                                    would only charge subscribers a                         equitable because they are based on the                their servers are located in the same
                                                    connectivity fee, the amount of which is                Exchange’s costs to cover hardware,                    facility as the Exchange.
                                                    based solely on the amount of                           installation, testing and connection, as
                                                                                                            well as expenses involved in                           (B) Self-Regulatory Organization’s
                                                    bandwidth required to transmit that                                                                            Statement on Burden on Competition
                                                    specific data product to the subscribers.               maintaining and managing the service.
                                                    The amounts of the connectivity fees are                The proposed fees allow the Exchange                     The Exchange believes its proposed
                                                    also reasonable as compared to similar                  to recoup these costs, while providing                 amendments to its Fee Schedule would
                                                    fees charged by other exchanges. For                    subscribers with an alternative means to               not impose any burden on competition
                                                    example, for market data connectivity,                  connect to other exchange and market                   that is not necessary or appropriate in
                                                    the Nasdaq Stock Market LLC                             centers. The Exchange believes that the                furtherance of the purposes of the Act.
                                                    (‘‘Nasdaq’’) charges $1,412 per month                   proposed fees are reasonable and                       The Exchange does not believe that the
                                                    for CQS/CTS data feed, and the                          equitable in that they reflect the costs               proposed change represents a significant
                                                    Exchange proposes to charge $1,000 per                  and the benefit of providing alternative               departure from previous pricing offered
                                                    month connectivity for CQS/CTS data                     connectivity.                                          by the Exchange or pricing offered by
                                                    feed.16 The Exchange notes that, overall,                  The Exchange also believes it is                    the Exchange’s competitors.
                                                    the connectivity fee for receipt of other               equitable and reasonable to provide                    Additionally, Members may opt to
                                                    market centers’ data feed proposed by                   BATS Connect to subscribers for no                     disfavor the Exchange’s pricing if they
                                                    the Exchange is similar to than that                    charge to route orders to or receive                   believe that alternatives offer them
                                                    charged by Nasdaq.                                      market data products from the                          better value. Accordingly, the Exchange
                                                       The Exchange believes it is reasonable               Exchange’s affiliates. BATS Connect                    does not believe that the proposed
                                                    to offer such discounted pricing to                     provides subscribers a means to access                 change will impair the ability of
                                                    subscribers who purchase connectivity                   exchanges and market centers on the                    Members or competing venues to
                                                    to a bundle of market data products as                  Exchange’s network. In all cases, BATS                 maintain their competitive standing in
                                                    it would enable them to reduce their                    Connect subscribers would be continue                  the financial markets.
                                                    overall connectivity costs for the receipt              to be liable for the necessary fees                    Fee Code A
                                                    of market data. As stated above, BATS                   charged by the Exchange, its affiliate, or
                                                                                                            another exchange or market center,                        The Exchange believes that its
                                                    Connect is offered and purchased on a                                                                          proposal to pass through a rebate of
                                                    voluntary basis and subscribers can                     including any required connectivity
                                                                                                            fees. As stated above, BATS Connect is                 $0.0015 per share for Members’ orders
                                                    discontinue use at any time and for any                                                                        that yield fee code A would increase
                                                    reason, including due to an assessment                  offered and purchased on a voluntary
                                                                                                            basis, and subscribers and market                      intermarket competition because it
                                                    of the reasonableness of fees charged.                                                                         offers customers an alternative means to
                                                    Moreover, the Exchange believes the                     participants may choose an alternative
                                                                                                            method to connect to the Exchange, its                 route to Nasdaq for a similar rate as
                                                    proposed fees are reasonable and                                                                               entering orders in certain symbols on
                                                    equitable because they continue to be                   affiliates, or another exchange or market
                                                                                                            center connected to the Exchange’s                     Nasdaq directly. The Exchange believes
                                                    based on the Exchange’s costs to cover                                                                         that its proposal would not burden
                                                    the amount of bandwidth required to                     network. Such other services may also
                                                                                                            offer at no charge connectivity to certain             intramarket competition because the
                                                    provide connectivity to the select                                                                             proposed rate would apply uniformly to
                                                    bundle of data feeds. The proposed fees                 exchanges or a group of exchanges.18
                                                                                                            Therefore, the Exchange believes that                  all Members.
                                                    will continue to allow the Exchange to
                                                    recoup this cost, while providing                       the [sic] providing BATS Connect to                    BATS Connect
                                                    subscribers with an alternative means to                subscribers at no charge to route orders
                                                                                                            to or receive market data products from                  The Exchange does not believe the
                                                    connect to the select bundle of data                                                                           proposed fees for BATS Connect will
                                                    feeds at a discounted rate.                             the Exchange’s affiliates is reasonable
                                                                                                            and equitable as they will continue to be              result in any burden on competition.
                                                       The subscribers would pay any fees:                                                                         The proposed rule change is designed to
                                                    (i) Charged by the exchange providing                   liable to the Exchange or its affiliate for
                                                                                                            any required connectivity fees.                        provide subscribers with an alternative
                                                    the market data feed directly to that                                                                          means to access other market centers on
                                                    exchange (ii) charged by a market center                   Lastly, the Exchange also believes that
                                                                                                            the proposed amendments to its fee                     the Exchange’s network if they choose
                                                    to which they routed an order and an                                                                           or in the event of a market disruption
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                                                    execution occurred directly to that                     schedule are non-discriminatory
                                                                                                                                                                   where other alternative connection
                                                    market center. The Exchange itself                        17 The Exchange’s rules and fees would not           methods become unavailable. BATS
                                                                                                            address the fees or manner of operation of any         Connect is not the exclusive method to
                                                      15 See NYSE’s SFTI Americas Product and Service       destination to which the subscriber asked that an      connect to these market centers and
                                                    List available at http://www.nyxdata.com/docs/          order be routed.                                       subscribers may utilize alternative
                                                    connectivity.                                             18 See NYSE’s SFTI Americas Product and Service
                                                      16 See Nasdaq Rule 7034 (setting forth Nasdaq’s       List available at http://www.nyxdata.com/docs/
                                                                                                                                                                   methods to connect to the product if
                                                    connectivity fees for receipt of third party market     connectivity (offering at no charge connectivity to    they believe the Exchange’s proposed
                                                    data products).                                         the NYSE, NYSE MKT LLC, and NYSE Arca, Inc.).          pricing is unreasonable or otherwise.


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                                                    34748                            Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    Therefore, the Exchange does not                           change that are filed with the                         of the Act 4 and Rule 19b–4(f)(2)
                                                    believe the proposed rule change will                      Commission, and all written                            thereunder,5 which renders the
                                                    have any effect on competition.                            communications relating to the                         proposed rule change effective upon
                                                                                                               proposed rule change between the                       filing with the Commission. The
                                                    (C) Self-Regulatory Organization’s
                                                                                                               Commission and any person, other than                  Commission is publishing this notice to
                                                    Statement on Comments on the
                                                                                                               those that may be withheld from the                    solicit comments on the proposed rule
                                                    Proposed Rule Change Received From
                                                                                                               public in accordance with the                          change from interested persons.
                                                    Members, Participants or Others
                                                                                                               provisions of 5 U.S.C. 552, will be
                                                      The Exchange has not solicited, and                                                                             I. Self-Regulatory Organization’s
                                                                                                               available for Web site viewing and
                                                    does not intend to solicit, comments on                                                                           Statement of the Terms of Substance of
                                                                                                               printing in the Commission’s Public
                                                    this proposed rule change. The                                                                                    the Proposed Rule Change
                                                                                                               Reference Room, 100 F Street NE.,
                                                    Exchange has not received any                              Washington, DC 20549, on official                         The Exchange filed a proposal to
                                                    unsolicited written comments from                          business days between the hours of                     amend its fees and rebates applicable to
                                                    Members or other interested parties.                       10:00 a.m. and 3:00 p.m. Copies of the                 Members 6 of the Exchange pursuant to
                                                                                                               filing will also be available for                      Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to:
                                                    III. Date of Effectiveness of the
                                                                                                               inspection and copying at the principal                (i) Increase the rebate from $0.0004 per
                                                    Proposed Rule Change and Timing for
                                                                                                               office of the Exchange. All comments                   share to $0.0015 per share for orders
                                                    Commission Action
                                                                                                               received will be posted without change;                that yield fee code A, which routes to
                                                       The foregoing rule change has become                    the Commission does not edit personal                  the Nasdaq Stock Market LLC
                                                    effective pursuant to Section 19(b)(3)(A)                  identifying information from                           (‘‘Nasdaq’’) and adds liquidity; and (ii)
                                                    of the Act 19 and paragraph (f) of Rule                    submissions. You should submit only                    adopt fees for the use of a
                                                    19b–4 thereunder.20 At any time within                     information that you wish to make                      communication and routing service
                                                    60 days of the filing of the proposed rule                 available publicly. All submissions                    known as BATS Connect.
                                                    change, the Commission summarily may                       should refer to File Number SR–BYX–                       The text of the proposed rule change
                                                    temporarily suspend such rule change if                    2015–28 and should be submitted on or                  is available at the Exchange’s Web site
                                                    it appears to the Commission that such                     before July 8, 2015.                                   at www.batstrading.com, at the
                                                    action is necessary or appropriate in the                                                                         principal office of the Exchange, and at
                                                                                                                 For the Commission, by the Division of
                                                    public interest, for the protection of                                                                            the Commission’s Public Reference
                                                                                                               Trading and Markets, pursuant to delegated
                                                    investors, or otherwise in furtherance of                  authority.21                                           Room.
                                                    the purposes of the Act.                                   Robert W. Errett,                                      II. Self-Regulatory Organization’s
                                                    IV. Solicitation of Comments                               Deputy Secretary.                                      Statement of the Purpose of, and
                                                      Interested persons are invited to                        [FR Doc. 2015–14832 Filed 6–16–15; 8:45 am]            Statutory Basis for, the Proposed Rule
                                                    submit written data, views, and                            BILLING CODE 8011–01–P                                 Change
                                                    arguments concerning the foregoing,                                                                                  In its filing with the Commission, the
                                                    including whether the proposed rule                                                                               Exchange included statements
                                                    change is consistent with the Act.                         SECURITIES AND EXCHANGE                                concerning the purpose of and basis for
                                                    Comments may be submitted by any of                        COMMISSION                                             the proposed rule change and discussed
                                                    the following methods:                                     [Release No. 34–75158; File No. SR–BATS–               any comments it received on the
                                                                                                               2015–44]                                               proposed rule change. The text of these
                                                    Electronic Comments
                                                                                                                                                                      statements may be examined at the
                                                      • Use the Commission’s Internet                          Self-Regulatory Organizations; BATS                    places specified in Item IV below. The
                                                    comment form (http://www.sec.gov/                          Exchange, Inc.; Notice of Filing and                   Exchange has prepared summaries, set
                                                    rules/sro.shtml); or                                       Immediate Effectiveness of a Proposed                  forth in Sections A, B, and C below, of
                                                      • Send an email to rule-comments@                        Rule Change Related to Fees for Use                    the most significant parts of such
                                                    sec.gov. Please include File Number SR–                    of BATS Exchange, Inc.                                 statements.
                                                    BYX–2015–28 on the subject line.
                                                                                                               June 11, 2015.                                         (A) Self-Regulatory Organization’s
                                                    Paper Comments                                                Pursuant to Section 19(b)(1) of the                 Statement of the Purpose of, and
                                                      • Send paper comments in triplicate                      Securities Exchange Act of 1934 (the                   Statutory Basis for, the Proposed Rule
                                                    to Brent J. Fields, Secretary, Securities                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2                 Change
                                                    and Exchange Commission, 100 F Street                      notice is hereby given that on June 9,
                                                                                                               2015, BATS Exchange, Inc. (the                         1. Purpose
                                                    NE., Washington, DC 20549–1090.
                                                    All submissions should refer to File                       ‘‘Exchange’’ or ‘‘BATS’’) filed with the                  The Exchange proposes to: (i) Increase
                                                    Number SR–BYX–2015–28. This file                           Securities and Exchange Commission                     the rebate from $0.0004 per share to
                                                    number should be included on the                           (‘‘Commission’’) the proposed rule                     $0.0015 per share for orders that yield
                                                    subject line if email is used. To help the                 change as described in Items I, II and III             fee code A, which routes to Nasdaq and
                                                    Commission process and review your                         below, which Items have been prepared                  adds liquidity; and (ii) adopt fees for the
                                                    comments more efficiently, please use                      by the Exchange.3 The Exchange has                     use of a communication and routing
                                                    only one method. The Commission will                       designated the proposed rule change as                 service known as BATS Connect.
                                                                                                               one establishing or changing a member
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                                                    post all comments on the Commission’s                                                                             Fee Code A
                                                    Internet Web site (http://www.sec.gov/                     due, fee, or other charge imposed by the
                                                                                                               Exchange under Section 19(b)(3)(A)(ii)                   In securities priced at or above $1.00,
                                                    rules/sro.shtml). Copies of the
                                                                                                                                                                      the Exchange currently provides a
                                                    submission, all subsequent                                   21 17 CFR 200.30–3(a)(12).
                                                    amendments, all written statements                           1 15 U.S.C. 78s(b)(1).                                 4 15U.S.C. 78s(b)(3)(A)(ii).
                                                    with respect to the proposed rule                            2 17 CFR 240.19b–4.                                    5 17CFR 240.19b–4(f)(2).
                                                                                                                 3 The Commission notes that a previous version         6 A Member is defined as ‘‘any registered broker
                                                      19 15   U.S.C. 78s(b)(3)(A).                             of the proposal was filed as SR–BATS–2015–41.          or dealer that has been admitted to membership in
                                                      20 17   CFR 240.19b–4(f).                                The proposal was withdrawn on June 9, 2015.            the Exchange.’’ See Exchange Rule 1.5(n).



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Document Created: 2015-12-15 14:23:34
Document Modified: 2015-12-15 14:23:34
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 34745 

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