80_FR_34869 80 FR 34753 - 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.

80 FR 34753 - 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 116 (June 17, 2015)

Page Range34753-34756
FR Document2015-14821

Federal Register, Volume 80 Issue 116 (Wednesday, June 17, 2015)
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Notices]
[Pages 34753-34756]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14821]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75147; File No. SR-EDGA-2015-24]


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.

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, 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.\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.
---------------------------------------------------------------------------

    \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-EDGA-2015-21. The proposal was withdrawn on June 9, 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).
---------------------------------------------------------------------------

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 EDGA Rule 15.1(a) 
and (c) (``Fee Schedule'') to: (i) Increase the rebate from $0.00040 
per share to $0.00150 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.
---------------------------------------------------------------------------

    \6\ The term ``Member'' is defined as ``any registered broker or 
dealer, or any person associated with a registered broker or dealer, 
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).
---------------------------------------------------------------------------

    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 $0.00040 per 
share to $0.00150 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 $0.00040 per share for Members' orders that yield 
fee code A, which routes to Nasdaq and adds liquidity. The Exchange 
proposes to amend its Fee Schedule to increase this rebate to $0.00150 
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, is 
rebated for routing orders to Nasdaq when it does not qualify for a 
volume tiered rebate. When BATS Trading routes to Nasdaq, it is rebated 
a standard rate of $0.00150 per share.\7\ 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. 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 $0.00040 per share for orders 
in select symbols (``Nasdaq's Select Symbol Program'') to its 
customers, such as

[[Page 34754]]

BATS Trading, and such orders will be subject to the regular Nasdaq 
Pricing Schedule.\8\
---------------------------------------------------------------------------

    \7\ The Exchange notes that to the extent BATS Trading does or 
does not achieve any volume tiered discount on Nasdaq or routes an 
order to Nasdaq in a symbol that is not included in Nasdaq's Select 
Symbol Program to receive a rebate of $0.00150 per share, its rate 
for fee code A will not change. The Exchange further notes that, due 
to billing system limitations that do not allow for separate rates 
by tape, it will pass through the lesser rebate of $0.00150 per 
share for all Tapes A, B & C securities.
    \8\ See Nasdaq Equity Trader Alert #2015-70, Nasdaq Ends Access 
Fee Experiment, available at http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2015-70.
---------------------------------------------------------------------------

BATS Connect
    On May 27, 2015, the Exchange filed a proposed rule change with the 
Commission to adopt a communication and routing service known as BATS 
Connect.\9\ 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.\10\ BATS 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 \11\ 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.
---------------------------------------------------------------------------

    \9\ See file no. SR-EDGA-2015-20.
    \10\ 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.
    \11\ The Exchange's affiliated exchanges are EDGX, BATS 
Exchange, Inc. (``BZX''), and BATS Y-Exchange, Inc. (``BYX''). The 
Exchange understands that its affiliated Exchange's 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.
---------------------------------------------------------------------------

    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 BYX. 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,\12\ in general, and 
furthers the objectives of Section 6(b)(4),\13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Fee Code A
    The Exchange believes that its proposal to increase the pass 
through rebate for Members' orders that yield fee code A from $0.00040 
to $0.00150 per share represents an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities. Prior to Nasdaq's Select Symbol Program, Nasdaq provided 
BATS Trading a rebate of $0.00150 per share for orders yielding fee 
code A, which BATS Trading passed through to the Exchange and the 
Exchange passed through to its Members. In June 2015, Nasdaq terminated 
its Select Symbol Program, thereby increasing the rebate it provides 
its customers, such as BATS Trading, from a rebate of $0.00040 per 
share to its standard rebate of $0.00150 per share for orders that are 
routed to Nasdaq in symbols included in its Select Symbol Program.\14\ 
Therefore, the Exchange believes that the proposed change in fee code A 
from a rebate of $0.00040 per share to a rebate of $0.00150 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.
---------------------------------------------------------------------------

    \14\ See supra note 7.

---------------------------------------------------------------------------

[[Page 34755]]

BATS Connect
    The Exchange also believes that its proposal is consistent with 
Section 6(b)(4) of the Act,\15\ 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 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.\16\ The Exchange notes that, overall, the connectivity fee for 
routing of orders to other market centers proposed by the Exchange is 
similar to than that charged by the NYSE.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b)(4).
    \16\ See NYSE's SFTI Americas Product and Service List available 
at http://www.nyxdata.com/docs/connectivity.
---------------------------------------------------------------------------

    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.\17\ The Exchange notes that, overall, the connectivity fee 
for receipt of other market centers' data feed proposed by the Exchange 
is similar to that charged by Nasdaq.
---------------------------------------------------------------------------

    \17\ See Nasdaq Rule 7034 (setting forth Nasdaq's connectivity 
fees for receipt of third party market data products).
---------------------------------------------------------------------------

    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.\18\ 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.
---------------------------------------------------------------------------

    \18\ 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.\19\ 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.
---------------------------------------------------------------------------

    \19\ 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 
$0.00150 per share for Members' orders that yield fee code A would 
increase intermarket competition because it offers customers an 
alternative means to

[[Page 34756]]

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 believes the proposed fees for BATS Connect will not 
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. 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 \20\ and paragraph (f) of Rule 19b-4 
thereunder.\21\ 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.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-EDGA-2015-24 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-2015-24. 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-2015-24 and should be 
submitted on or before July 8, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
---------------------------------------------------------------------------

    \22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14821 Filed 6-16-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                                     Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                                    34753

                                                    proposed requirement that the members                     SECURITIES AND EXCHANGE                                 II. Self-Regulatory Organization’s
                                                    of the ROC consist of either directors of                 COMMISSION                                              Statement of the Purpose of, and
                                                    the Exchange or directors of NYSE                                                                                 Statutory Basis for, the Proposed Rule
                                                                                                              [Release No. 34–75147; File No. SR–EDGA–
                                                    Regulation who satisfy the                                2015–24]
                                                                                                                                                                      Change
                                                    independence requirements of the                                                                                     In its filing with the Commission, the
                                                    Exchange’s Company Director                               Self-Regulatory Organizations; EDGA                     Exchange included statements
                                                    Independence Policy, and the                              Exchange, Inc.; Notice of Filing and                    concerning the purpose of and basis for
                                                    provisions relating to the removal of a                   Immediate Effectiveness of a Proposed                   the proposed rule change and discussed
                                                    member of the ROC either for cause or                     Rule Change Related to Fees for Use                     any comments it received on the
                                                    for failing to qualify as independent,                    of EDGA Exchange, Inc.                                  proposed rule change. The text of these
                                                    should help ensure the continued                                                                                  statements may be examined at the
                                                                                                              June 11, 2015.
                                                    independence of the members of the                                                                                places specified in Item IV below. The
                                                                                                                 Pursuant to Section 19(b)(1) of the
                                                    ROC. The proposal to establish a ROC                                                                              Exchange has prepared summaries, set
                                                                                                              Securities Exchange Act of 1934 (the
                                                    should assist the Exchange in meeting                                                                             forth in Sections A, B, and C below, of
                                                                                                              ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    its statutory obligations to comply, and                                                                          the most significant parts of such
                                                                                                              notice is hereby given that on June 9,
                                                    to enforce compliance by its members                                                                              statements.
                                                                                                              2015, EDGA Exchange, Inc. (the
                                                    and persons associated with its                           ‘‘Exchange’’ or ‘‘EDGA’’) filed with the                (A) Self-Regulatory Organization’s
                                                    members, with the Act, the rules and                      Securities and Exchange Commission                      Statement of the Purpose of, and
                                                    regulations thereunder, and the rules of                  (‘‘Commission’’) the proposed rule                      Statutory Basis for, the Proposed Rule
                                                    the Exchange.                                             change as described in Items I, II and III              Change
                                                       The Commission notes that, while the                   below, which Items have been prepared                   1. Purpose
                                                                                                              by the Exchange.3 The Exchange has
                                                    proposal removes the requirement that                                                                                The Exchange proposes to: (i) Increase
                                                                                                              designated the proposed rule change as
                                                    the independent directors who make up                                                                             the rebate from $0.00040 per share to
                                                                                                              one establishing or changing a member
                                                    the majority of the Board also be ICE                     due, fee, or other charge imposed by the                $0.00150 per share for orders that yield
                                                    directors, it does not alter the                          Exchange under Section 19(b)(3)(A)(ii)                  fee code A, which routes to Nasdaq and
                                                    requirement under the Operating                           of the Act 4 and Rule 19b–4(f)(2)                       adds liquidity; and (ii) adopt fees for the
                                                    Agreement that a majority of the Board                    thereunder,5 which renders the                          use of a communication and routing
                                                    must satisfy the Exchange’s Company                       proposed rule change effective upon                     service known as BATS Connect.
                                                    Director Independence Policy.16 Thus,                     filing with the Commission. The                         Fee Code A
                                                    the majority of directors on the                          Commission is publishing this notice to
                                                    Exchange’s Board must still qualify as                                                                               In securities priced at or above $1.00,
                                                                                                              solicit comments on the proposed rule
                                                    independent directors under the                                                                                   the Exchange currently provides a
                                                                                                              change from interested persons.
                                                    Exchange’s Company Director                                                                                       rebate of $0.00040 per share for
                                                                                                              I. Self-Regulatory Organization’s                       Members’ orders that yield fee code A,
                                                    Independence Policy. Moreover,
                                                                                                              Statement of the Terms of Substance of                  which routes to Nasdaq and adds
                                                    removing the requirement that the
                                                                                                              the Proposed Rule Change                                liquidity. The Exchange proposes to
                                                    independent directors on the                                                                                      amend its Fee Schedule to increase this
                                                    Exchange’s Board also be directors of                        The Exchange filed a proposal to
                                                                                                              amend its fees and rebates applicable to                rebate to $0.00150 per share for
                                                    ICE may result in a more diversified                                                                              Members’ orders that yield fee code A.
                                                    Board composition as candidates for                       Members 6 of the Exchange pursuant to
                                                                                                              EDGA Rule 15.1(a) and (c) (‘‘Fee                        The proposed change represents a pass
                                                    membership on the Board who qualify                                                                               through of the rate that BATS Trading,
                                                                                                              Schedule’’) to: (i) Increase the rebate
                                                    as independent under the Company                                                                                  Inc. (‘‘BATS Trading’’), the Exchange’s
                                                                                                              from $0.00040 per share to $0.00150 per
                                                    Director Independence Policy need not                                                                             affiliated routing broker-dealer, is
                                                                                                              share for orders that yield fee code A,
                                                    be limited to those candidates who also                                                                           rebated for routing orders to Nasdaq
                                                                                                              which routes to the Nasdaq Stock
                                                    serve on the board of directors of ICE.                   Market LLC (‘‘Nasdaq’’) and adds                        when it does not qualify for a volume
                                                       Accordingly, the Commission finds                      liquidity; and (ii) adopt fees for the use              tiered rebate. When BATS Trading
                                                    that the proposed rule change is                          of a communication and routing service                  routes to Nasdaq, it is rebated a standard
                                                    consistent with the Act.                                  known as BATS Connect.                                  rate of $0.00150 per share.7 BATS
                                                                                                                 The text of the proposed rule change                 Trading will pass through this rate on
                                                    IV. Conclusion                                            is available at the Exchange’s Web site                 Nasdaq to the Exchange and the
                                                                                                              at www.batstrading.com, at the                          Exchange, in turn, will pass through this
                                                      It is therefore ordered, pursuant to                                                                            rate to its Members. The Exchange notes
                                                    Section 19(b)(2) of the Act, that the                     principal office of the Exchange, and at
                                                                                                              the Commission’s Public Reference                       that the proposed change is in response
                                                    proposed rule change (SR–NYSEMKT–                                                                                 to Nasdaq’s June 2015 fee change where
                                                                                                              Room.
                                                    2015–27) is approved.                                                                                             Nasdaq will no longer offer a rebate of
                                                      For the Commission, by the Division of                    1 15 U.S.C. 78s(b)(1).                                $0.00040 per share for orders in select
                                                    Trading and Markets, pursuant to delegated                  2 17 CFR 240.19b–4.                                   symbols (‘‘Nasdaq’s Select Symbol
                                                    authority.17                                                3 The Commission notes that a previous version        Program’’) to its customers, such as
                                                                                                              of the proposal was filed as SR–EDGA–2015–21.
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Robert W. Errett,                                         The proposal was withdrawn on June 9, 2015.               7 The Exchange notes that to the extent BATS
                                                    Deputy Secretary.                                           4 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                                                                                      Trading does or does not achieve any volume tiered
                                                                                                                5 17 CFR 240.19b–4(f)(2).
                                                    [FR Doc. 2015–14822 Filed 6–16–15; 8:45 am]                                                                       discount on Nasdaq or routes an order to Nasdaq
                                                                                                                6 The term ‘‘Member’’ is defined as ‘‘any             in a symbol that is not included in Nasdaq’s Select
                                                    BILLING CODE 8011–01–P
                                                                                                              registered broker or dealer, or any person associated   Symbol Program to receive a rebate of $0.00150 per
                                                                                                              with a registered broker or dealer, that has been       share, its rate for fee code A will not change. The
                                                                                                              admitted to membership in the Exchange. A               Exchange further notes that, due to billing system
                                                                                                              Member will have the status of a ‘‘member’’ of the      limitations that do not allow for separate rates by
                                                      16 See   supra note 6.                                  Exchange as that term is defined in Section 3(a)(3)     tape, it will pass through the lesser rebate of
                                                      17 17   CFR 200.30–3(a)(12).                            of the Act.’’ See Exchange Rule 1.5(n).                 $0.00150 per share for all Tapes A, B & C securities.



                                               VerDate Sep<11>2014     18:47 Jun 16, 2015   Jkt 235001   PO 00000   Frm 00148   Fmt 4703   Sfmt 4703   E:\FR\FM\17JNN1.SGM    17JNN1


                                                    34754                         Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    BATS Trading, and such orders will be                     Exchange’s network. In such case, the                  Section 6(b)(4),13 in particular, as it is
                                                    subject to the regular Nasdaq Pricing                     subscriber would pay the Exchange a                    designed to provide for the equitable
                                                    Schedule.8                                                connectivity fee, which varies and is                  allocation of reasonable dues, fees and
                                                                                                              based solely on the amount of                          other charges among its Members and
                                                    BATS Connect
                                                                                                              bandwidth required to transmit the                     other persons using its facilities. The
                                                      On May 27, 2015, the Exchange filed                     selected data product to the subscriber.               Exchange also notes that it operates in
                                                    a proposed rule change with the                           The proposed connectivity fees are set                 a highly-competitive market in which
                                                    Commission to adopt a communication                       forth in the Exhibit 5 attached hereto                 market participants can readily direct
                                                    and routing service known as BATS                         and range from no charge to $11,500
                                                    Connect.9 The Exchange now proposes                                                                              order flow to competing venues if they
                                                                                                              based on the market data product the
                                                    to adopt fees related to the use of BATS                                                                         deem fee levels at a particular venue to
                                                                                                              subscriber selects.
                                                    Connect that are equal to the fees                           The Exchange also proposes to adopt                 be excessive. The proposed rule change
                                                    charged for an identical service, also                    a discounted fee of $4,160 per month for               reflects a competitive pricing structure
                                                    called BATS Connect, offered by the                       subscribers who purchase connectivity                  designed to incent market participants
                                                    Exchange’s affiliate, EDGX.10 BATS                        to a bundle of select market data                      to direct their order flow to the
                                                    Connect is offered by the Exchange on                     products. The following market data                    Exchange. The Exchange believes that
                                                    a voluntary basis in a capacity similar                   products would be included in the                      the proposed rates are equitable and
                                                    to a vendor. In sum, BATS Connect is                      bundle: UQDF/UTDF/OMDF, CQS/CTS,                       non-discriminatory in that they apply
                                                    a communication service that provides                     Nasdaq TotalView, Nasdaq BX                            uniformly to all Members. The
                                                    subscribers an additional means to                        TotalView, Nasdaq PSX TotalView,                       Exchange believes the fees and credits
                                                    receive market data from and route                        NYSE ArcaBook, NYSE MKT OpenBook                       remain competitive with those charged
                                                    orders to any destination connected to                    Ultra, and BBS/TTDS. Absent the                        by other venues and therefore continue
                                                    the Exchange’s network. BATS Connect                      discount, a subscriber purchasing                      to be reasonable and equitably allocated
                                                    does not provide any advantage to                         connectivity through BATS Connect for                  to Members.
                                                    subscribers for connecting to the                         each of these market data products
                                                    Exchange’s affiliates 11 as compared to                   would pay a total monthly fee of $5,200.               Fee Code A
                                                    other method of connectivity available                    As proposed, a subscriber who                             The Exchange believes that its
                                                    to subscribers. The servers of the                        purchases connectivity to each of the
                                                    subscriber need not be located in the                                                                            proposal to increase the pass through
                                                                                                              above market data products would be                    rebate for Members’ orders that yield fee
                                                    same facilities as the Exchange in order                  charged a monthly fee of $4,160, which
                                                    to subscribe to BATS Connect.                                                                                    code A from $0.00040 to $0.00150 per
                                                                                                              represents a 20% discount. The
                                                    Subscribers may also seek to utilize                                                                             share represents an equitable allocation
                                                                                                              subscribers would pay any fees charged
                                                    BATS Connect in the event of a market                                                                            of reasonable dues, fees, and other
                                                                                                              by the exchange providing the market
                                                    disruption where other alternative                                                                               charges among Members and other
                                                                                                              data feed directly to that exchange.
                                                    connection methods become                                    The Exchange notes that it will not                 persons using its facilities. Prior to
                                                    unavailable.                                              charge a fee to subscribers utilizing                  Nasdaq’s Select Symbol Program,
                                                       The Exchange will charge a monthly                     BATS Connect to route orders to or                     Nasdaq provided BATS Trading a rebate
                                                    connectivity fee to subscribers utilizing                 receive market data products from the                  of $0.00150 per share for orders yielding
                                                    BATS Connect to route orders to other                     Exchange’s affiliates, EDGX, BZX, and                  fee code A, which BATS Trading passed
                                                    exchanges and broker-dealers that are                     BYX. BATS Connect provides                             through to the Exchange and the
                                                    connected to the Exchange’s network.                      subscribers a means to access exchanges                Exchange passed through to its
                                                    The amount of the connectivity fee                        and market centers on the Exchange’s                   Members. In June 2015, Nasdaq
                                                    varies based solely on the bandwidth                      network. In all cases, BATS Connect                    terminated its Select Symbol Program,
                                                    selected by the subscriber. Specifically,                 subscribers would be continue to be                    thereby increasing the rebate it provides
                                                    the Exchange proposes to charge $350                      liable for the necessary fees charged by               its customers, such as BATS Trading,
                                                    for 1 Mb, $700 for 5 Mb, $950 for 10 Mb,                  that exchange or market center,                        from a rebate of $0.00040 per share to
                                                    $1,500 for 25 Mb, $2,500 for 50 Mb, and                   including any required connectivity                    its standard rebate of $0.00150 per share
                                                    $3,500 for 100 Mb.                                        fees. Market participants who chose a                  for orders that are routed to Nasdaq in
                                                       BATS Connect would also allow                          method other than BATS Connect to                      symbols included in its Select Symbol
                                                    subscribers to receive market data feeds                  connect to another exchange or market
                                                    from the exchanges connected to the                                                                              Program.14 Therefore, the Exchange
                                                                                                              center would also pay any required                     believes that the proposed change in fee
                                                      8 See Nasdaq Equity Trader Alert #2015–70,
                                                                                                              connectivity fees directly to that                     code A from a rebate of $0.00040 per
                                                    Nasdaq Ends Access Fee Experiment, available at           exchange or market center. Likewise,                   share to a rebate of $0.00150 per share
                                                    http://www.nasdaqtrader.com/                              BATS Connect subscribers would be                      is equitable and reasonable because it
                                                    TraderNews.aspx?id=ETA2015-70.                            liable for any connectivity fees charged
                                                      9 See file no. SR–EDGA–2015–20.
                                                                                                                                                                     accounts for the pricing changes on
                                                      10 See the EDGX fee schedule available at http://
                                                                                                              by the Exchange’s affiliate.                           Nasdaq. In addition, the proposal allows
                                                    batstrading.com/support/fee_schedule/edgx/. See           Implementation Date                                    the Exchange to continue to charge its
                                                    also Securities Exchange Act Release No. 73780                                                                   Members a pass-through rate for orders
                                                    (December 8, 2014), 79 FR 73942 (December 12,               The Exchange proposes to implement
                                                    2014) (SR–EDGX–2014–28) and file no. SR–EDGX–             these amendments to its Fee Schedule                   that are routed to Nasdaq. The Exchange
                                                                                                                                                                     notes that routing through BATS
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    2015–27.                                                  immediately.
                                                      11 The Exchange’s affiliated exchanges are EDGX,                                                               Trading is voluntary. Lastly, the
                                                    BATS Exchange, Inc. (‘‘BZX’’), and BATS Y-                2. Statutory Basis                                     Exchange also believes that the
                                                    Exchange, Inc. (‘‘BYX’’). The Exchange understands
                                                    that its affiliated Exchange’s intend to file identical      The Exchange believes that the                      proposed amendment is non-
                                                    proposed rule changes to adopt the fees for the           proposed rule change is consistent with                discriminatory because it applies
                                                    BATS Connect service with the Commission. The             the objectives of Section 6 of the Act,12              uniformly to all Members.
                                                    Exchange also notes that its affiliated Exchanges
                                                    have also filed proposed rule changes with the
                                                                                                              in general, and furthers the objectives of
                                                                                                                                                                      13 15   U.S.C. 78f(b)(4).
                                                    Commission to adopt rules describing the BATS
                                                    Connect service.                                           12 15   U.S.C. 78f.                                    14 See   supra note 7.



                                               VerDate Sep<11>2014    18:47 Jun 16, 2015   Jkt 235001   PO 00000   Frm 00149    Fmt 4703   Sfmt 4703   E:\FR\FM\17JNN1.SGM    17JNN1


                                                                                 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                                   34755

                                                    BATS Connect                                            Connect is offered and purchased on a                  fees. As stated above, BATS Connect is
                                                       The Exchange also believes that its                  voluntary basis and subscribers can                    offered and purchased on a voluntary
                                                    proposal is consistent with Section                     discontinue use at any time and for any                basis, and subscribers and market
                                                    6(b)(4) of the Act,15 in that it provides               reason, including due to an assessment                 participants may choose an alternative
                                                    for the equitable allocation of reasonable              of the reasonableness of fees charged.                 method to connect to the Exchange, its
                                                    dues, fees and other charges among                      Moreover, the Exchange believes the                    affiliates, or another exchange or market
                                                    members and other persons using its                     proposed fees are reasonable and                       center connected to the Exchange’s
                                                    facilities. First, the Exchange will charge             equitable because they continue to be                  network. Such other services may also
                                                    a connectivity fee to subscribers                       based on the Exchange’s costs to cover                 offer at no charge connectivity to certain
                                                    utilizing BATS Connect to route orders                  the amount of bandwidth required to                    exchanges or a group of exchanges.19
                                                    to other exchanges and market centers                   provide connectivity to the select                     Therefore, the Exchange believes that
                                                                                                            bundle of data feeds. The proposed fees                the [sic] providing BATS Connect to
                                                    that are connected to the Exchange’s
                                                                                                            will continue to allow the Exchange to                 subscribers at no charge to route orders
                                                    network, which varies based solely on
                                                                                                            recoup this cost, while providing                      to or receive market data products from
                                                    the amount of bandwidth selected by
                                                                                                            subscribers with an alternative means to               the Exchange’s affiliates is reasonable
                                                    the subscriber. The amounts of the
                                                                                                            connect to the select bundle of data                   and equitable as they will continue to be
                                                    connectivity fees are also reasonable as
                                                                                                            feeds at a discounted rate.                            liable to the Exchange or its affiliate for
                                                    compared to similar fees charged by
                                                                                                               The subscribers would pay any fees:                 any required connectivity fees.
                                                    other exchanges. For purposes of order                                                                            Lastly, the Exchange also believes that
                                                    routing, the Exchange proposes to                       (i) Charged by the exchange providing
                                                                                                            the market data feed directly to that                  the proposed amendments to its fee
                                                    charge $350 for 1 Mb, $700 for 5 Mb,                                                                           schedule are non-discriminatory
                                                    $950 for 10 Mb, $1,500 for 25 Mb,                       exchange (ii) charged by a market center
                                                                                                            to which they routed an order and an                   because they will apply uniformly to all
                                                    $2,500 for 50 Mb, and $3,500 for 100                                                                           subscribers. All subscribers that
                                                    Mb. The New York Stock Exchange, Inc.                   execution occurred directly to that
                                                                                                            market center. The Exchange itself                     voluntarily select various service
                                                    (‘‘NYSE’’) currently charges $300 for 1                                                                        options will be charged the same
                                                    Mb, $700 for 5 Mb, $900 for 10 Mb,                      would not charge any additional fees.18
                                                                                                            BATS Connect is offered and purchased                  amount for the same services. All
                                                    $1,500 for 25 Mb, $2,000 for 50 Mb, and                                                                        subscribers have the option to select any
                                                    $2,600 for 100 Mb.16 The Exchange                       on a voluntary basis, in that neither the
                                                                                                            Exchange nor subscribers are required                  connectivity option, and there is no
                                                    notes that, overall, the connectivity fee                                                                      differentiation among subscribers with
                                                    for routing of orders to other market                   by any rule or regulation to make this
                                                                                                            product available. Accordingly,                        regard to the fees charged for the
                                                    centers proposed by the Exchange is                                                                            service. Further, the benefits of selecting
                                                    similar to than that charged by the                     subscribers can discontinue use at any
                                                                                                            time and for any reason, including due                 such services are the same for all
                                                    NYSE.                                                                                                          subscribers, irrespective of whether
                                                       Second, with regard to utilizing BATS                to an assessment of the reasonableness
                                                                                                            of fees charged.                                       their servers are located in the same
                                                    Connect to receive market data products                                                                        facility as the Exchange.
                                                    from other exchanges, the Exchange                         Moreover, the Exchange believes the
                                                    would only charge subscribers a                         proposed fees are reasonable and                       (B) Self-Regulatory Organization’s
                                                    connectivity fee, the amount of which is                equitable because they are based on the                Statement on Burden on Competition
                                                    based solely on the amount of                           Exchange’s costs to cover hardware,
                                                                                                                                                                     The Exchange believes its proposed
                                                    bandwidth required to transmit that                     installation, testing and connection, as
                                                                                                                                                                   amendments to its Fee Schedule would
                                                    specific data product to the subscribers.               well as expenses involved in
                                                                                                                                                                   not impose any burden on competition
                                                    The amounts of the connectivity fees are                maintaining and managing the service.
                                                                                                                                                                   that is not necessary or appropriate in
                                                    also reasonable as compared to similar                  The proposed fees allow the Exchange                   furtherance of the purposes of the Act.
                                                    fees charged by other exchanges. For                    to recoup these costs, while providing                 The Exchange does not believe that the
                                                    example, for market data connectivity,                  subscribers with an alternative means to               proposed change represents a significant
                                                    the Nasdaq Stock Market LLC                             connect to other exchange and market                   departure from previous pricing offered
                                                    (‘‘Nasdaq’’) charges $1,412 per month                   centers. The Exchange believes that the                by the Exchange or pricing offered by
                                                    for CQS/CTS data feed, and the                          proposed fees are reasonable and                       the Exchange’s competitors.
                                                    Exchange proposes to charge $1,000 per                  equitable in that they reflect the costs               Additionally, Members may opt to
                                                    month connectivity for CQS/CTS data                     and the benefit of providing alternative               disfavor the Exchange’s pricing if they
                                                    feed.17 The Exchange notes that, overall,               connectivity.                                          believe that alternatives offer them
                                                                                                               The Exchange also believes it is                    better value. Accordingly, the Exchange
                                                    the connectivity fee for receipt of other
                                                                                                            equitable and reasonable to provide                    does not believe that the proposed
                                                    market centers’ data feed proposed by
                                                                                                            BATS Connect to subscribers for no                     change will impair the ability of
                                                    the Exchange is similar to that charged
                                                                                                            charge to route orders to or receive                   Members or competing venues to
                                                    by Nasdaq.
                                                       The Exchange believes it is reasonable               market data products from the                          maintain their competitive standing in
                                                    to offer such discounted pricing to                     Exchange’s affiliates. BATS Connect                    the financial markets.
                                                    subscribers who purchase connectivity                   provides subscribers a means to access
                                                                                                            exchanges and market centers on the                    Fee Code A
                                                    to a bundle of market data products as
                                                    it would enable them to reduce their                    Exchange’s network. In all cases, BATS                   The Exchange believes that its
                                                    overall connectivity costs for the receipt              Connect subscribers would be continue                  proposal to pass through a rebate of
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    of market data. As stated above, BATS                   to be liable for the necessary fees                    $0.00150 per share for Members’ orders
                                                                                                            charged by the Exchange, its affiliate, or             that yield fee code A would increase
                                                      15 15 U.S.C. 78f(b)(4).                               another exchange or market center,                     intermarket competition because it
                                                      16 See NYSE’s SFTI Americas Product and Service       including any required connectivity                    offers customers an alternative means to
                                                    List available at http://www.nyxdata.com/docs/
                                                    connectivity.                                             18 The Exchange’s rules and fees would not             19 See NYSE’s SFTI Americas Product and Service
                                                      17 See Nasdaq Rule 7034 (setting forth Nasdaq’s       address the fees or manner of operation of any         List available at http://www.nyxdata.com/docs/
                                                    connectivity fees for receipt of third party market     destination to which the subscriber asked that an      connectivity (offering at no charge connectivity to
                                                    data products).                                         order be routed.                                       the NYSE, NYSE MKT LLC, and NYSE Arca, Inc.).



                                               VerDate Sep<11>2014   18:47 Jun 16, 2015   Jkt 235001   PO 00000   Frm 00150   Fmt 4703   Sfmt 4703   E:\FR\FM\17JNN1.SGM   17JNN1


                                                    34756                          Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    route to Nasdaq for a similar rate as                   Electronic Comments                                     SECURITIES AND EXCHANGE
                                                    entering orders in certain symbols on                                                                           COMMISSION
                                                    Nasdaq directly. The Exchange believes                    • Use the Commission’s Internet
                                                    that its proposal would not burden                      comment form (http://www.sec.gov/
                                                                                                                                                                    [Release No. 34–75156; File No. SR–
                                                    intramarket competition because the                     rules/sro.shtml); or
                                                                                                                                                                    NYSEArca–2015–45]
                                                    proposed rate would apply uniformly to                    • Send an email to rule-comments@
                                                    all Members.                                            sec.gov. Please include File Number SR–                 Self-Regulatory Organizations; NYSE
                                                    BATS Connect                                            EDGA–2015–24 on the subject line.                       Arca, Inc.; Notice of Filing and
                                                                                                                                                                    Immediate Effectiveness of Proposed
                                                                                                            Paper Comments
                                                      The Exchange believes the proposed                                                                            Rule Change Revising the Schedule for
                                                    fees for BATS Connect will not result in                  • Send paper comments in triplicate                   Implementing the Exchange’s Recently
                                                    any burden on competition. The                          to Brent J. Fields, Secretary, Securities               Approved Rule To Provide a Price
                                                    proposed rule change is designed to                     and Exchange Commission, 100 F Street                   Protection for Market Maker Quotes
                                                    provide subscribers with an alternative                 NE., Washington, DC 20549–1090.                         Pursuant to Rule 6.61
                                                    means to access other market centers on
                                                    the Exchange’s network if they choose                      All submissions should refer to File                 June 11, 2015.
                                                    or in the event of a market disruption                  Number SR–EDGA–2015–24. This file                          Pursuant to Section 19(b)(1) 1 of the
                                                    where other alternative connection                      number should be included on the                        Securities Exchange Act of 1934 (the
                                                    methods become unavailable. BATS                        subject line if email is used. To help the              ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                    Connect is not the exclusive method to                  Commission process and review your                      notice is hereby given that, on June 5,
                                                    connect to these market centers and                     comments more efficiently, please use                   2015, NYSE Arca, Inc. (the ‘‘Exchange’’
                                                    subscribers may utilize alternative                     only one method. The Commission will                    or ‘‘NYSE Arca’’) filed with the
                                                    methods to connect to the product if                    post all comments on the Commission’s
                                                    they believe the Exchange’s proposed                                                                            Securities and Exchange Commission
                                                                                                            Internet Web site (http://www.sec.gov/                  (the ‘‘Commission’’) the proposed rule
                                                    pricing is unreasonable or otherwise.                   rules/sro.shtml). Copies of the
                                                    Therefore, the Exchange does not                                                                                change as described in Items I and II
                                                                                                            submission, all subsequent                              below, which Items have been prepared
                                                    believe the proposed rule change will                   amendments, all written statements
                                                    have any effect on competition.                                                                                 by the self-regulatory organization. The
                                                                                                            with respect to the proposed rule                       Commission is publishing this notice to
                                                    (C) Self-Regulatory Organization’s                      change that are filed with the                          solicit comments on the proposed rule
                                                    Statement on Comments on the                            Commission, and all written                             change from interested persons.
                                                    Proposed Rule Change Received From                      communications relating to the
                                                    Members, Participants or Others                         proposed rule change between the                        I. Self-Regulatory Organization’s
                                                                                                            Commission and any person, other than                   Statement of the Terms of the Substance
                                                      The Exchange has not solicited, and                   those that may be withheld from the                     of the Proposed Rule Change
                                                    does not intend to solicit, comments on                 public in accordance with the
                                                    this proposed rule change. The                          provisions of 5 U.S.C. 552, will be                       The Exchange proposes to revise the
                                                    Exchange has not received any                           available for Web site viewing and                      schedule for implementing the
                                                    unsolicited written comments from                       printing in the Commission’s Public                     Exchange’s recently approved rule to
                                                    Members or other interested parties.                                                                            provide a price protection for Market
                                                                                                            Reference Room, 100 F Street NE.,
                                                                                                            Washington, DC 20549, on official                       Maker quotes pursuant to Rule 6.61. The
                                                    III. Date of Effectiveness of the
                                                                                                            business days between the hours of                      text of the proposed rule change is
                                                    Proposed Rule Change and Timing for
                                                    Commission Action                                       10:00 a.m. and 3:00 p.m. Copies of the                  available on the Exchange’s Web site at
                                                                                                            filing will also be available for                       www.nyse.com, at the principal office of
                                                       The foregoing rule change has become                 inspection and copying at the principal                 the Exchange, and at the Commission’s
                                                    effective pursuant to Section 19(b)(3)(A)               office of the Exchange. All comments                    Public Reference Room.
                                                    of the Act 20 and paragraph (f) of Rule
                                                                                                            received will be posted without change;                 II. Self-Regulatory Organization’s
                                                    19b–4 thereunder.21 At any time within
                                                                                                            the Commission does not edit personal                   Statement of the Purpose of, and
                                                    60 days of the filing of the proposed rule
                                                                                                            identifying information from                            Statutory Basis for, the Proposed Rule
                                                    change, the Commission summarily may
                                                    temporarily suspend such rule change if                 submissions. You should submit only                     Change
                                                    it appears to the Commission that such                  information that you wish to make
                                                                                                            available publicly. All submissions                       In its filing with the Commission, the
                                                    action is necessary or appropriate in the
                                                                                                            should refer to File Number SR–EDGA–                    self-regulatory organization included
                                                    public interest, for the protection of
                                                                                                            2015–24 and should be submitted on or                   statements concerning the purpose of,
                                                    investors, or otherwise in furtherance of
                                                                                                            before July 8, 2015.                                    and basis for, the proposed rule change
                                                    the purposes of the Act.
                                                                                                                                                                    and discussed any comments it received
                                                                                                              For the Commission, by the Division of
                                                    IV. Solicitation of Comments                                                                                    on the proposed rule change. The text
                                                                                                            Trading and Markets, pursuant to delegated
                                                                                                            authority.22
                                                                                                                                                                    of those statements may be examined at
                                                      Interested persons are invited to                                                                             the places specified in Item IV below.
                                                    submit written data, views, and                         Robert W. Errett,
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                    The Exchange has prepared summaries,
                                                    arguments concerning the foregoing,                     Deputy Secretary.                                       set forth in sections A, B, and C below,
                                                    including whether the proposed rule                     [FR Doc. 2015–14821 Filed 6–16–15; 8:45 am]             of the most significant parts of such
                                                    change is consistent with the Act.
                                                    Comments may be submitted by any of
                                                                                                            BILLING CODE 8011–01–P                                  statements.
                                                    the following methods:
                                                                                                                                                                     1 15 U.S.C. 78s(b)(1).
                                                      20 15                                                                                                          2 15 U.S.C. 78a.
                                                            U.S.C. 78s(b)(3)(A).
                                                      21 17 CFR 240.19b–4(f).                                 22 17   CFR 200.30–3(a)(12).                           3 17 CFR 240.19b–4.




                                               VerDate Sep<11>2014   18:47 Jun 16, 2015   Jkt 235001   PO 00000   Frm 00151    Fmt 4703   Sfmt 4703   E:\FR\FM\17JNN1.SGM   17JNN1



Document Created: 2015-12-15 14:23:08
Document Modified: 2015-12-15 14:23:08
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 34753 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR