80_FR_34892 80 FR 34776 - 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 34776 - 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 Range34776-34777
FR Document2015-14820

Federal Register, Volume 80 Issue 116 (Wednesday, June 17, 2015) 
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Notices]
[Pages 34776-34777]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14820]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75146; File No. SR-EDGA-2015-23]


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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The Commission notes that a previous version of the proposal 
was filed as SR-EDGA-2015-22. The proposal was withdrawn on June 9, 
2015.
    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend its fees and rebates 
applicable to Members \6\ of the Exchange pursuant to EDGA Rule 15.1(a) 
and (c) (``Fee Schedule'') to increase the fee for orders yielding fee 
code K, which routes to NASDAQ OMX PSX (``PSX'') using ROUC or ROUE 
routing strategy.
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    \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).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to increase the fee for orders yielding fee 
code K, which routes to PSX using ROUC or ROUE routing strategy. In 
securities priced at or above $1.00, the Exchange currently assesses a 
fee of $0.0026 per share for Members' orders that yield fee code K. The 
Exchange proposes to amend its Fee Schedule to increase this fee to 
$0.0028 per share. The proposed change would enable the Exchange to 
pass through the rate that BATS Trading, Inc. (``BATS Trading''), the 
Exchange's affiliated routing broker-dealer, is charged for routing 
orders to PSX when it does not qualify for a volume tiered reduced fee. 
The proposed change is in response to PSX's June 2015 fee change where 
PSX decreased the fee to remove liquidity via routable order types it 
charges its customers, from a fee of $0.0029 per share to a fee of 
$0.0027 per share for Tapes A and B securities and $0.0028 per share 
for Tape C securities.\7\ When BATS Trading routes to PSX, it will now 
be charged a standard rate of $0.0027 per share for Tapes A and B 
securities and $0.0028 per share for Tape C securities.\8\ BATS Trading 
will pass through this rate to the Exchange and the Exchange, in turn, 
will pass through of a rate of $0.0028 per share for Tape A, B, and C 
securities to its Members.\9\ The proposed increase to the

[[Page 34777]]

fee under fee code K would enable the Exchange to equitably allocate 
its costs among all Members utilizing fee code K. The Exchange proposes 
to implement this amendment to its Fee Schedule immediately.
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    \7\ See PSX, Equity Trader Alert 2015-05, Updates to PSX Pricing 
for June 2015, dated May 28, 2015, available at http://www.nasdaqtrader.com/MicroNews.aspx?id=ETA2015-78.
    \8\ The Exchange notes that to the extent BATS Trading does or 
does not achieve any volume tiered reduced fee on PSX, its rate for 
fee code K will not change.
    \9\ The Exchange notes that, due to billing system limitations 
that do not allow for separate rates by tape, it will pass through 
the higher fee of $0.0028 per share for all Tapes A, B & C 
securities.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\10\ in general, and 
furthers the objectives of Section 6(b)(4),\11\ 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 believes that its proposal to increase the fee 
for Members' orders that yield fee code K from $0.0026 per share to 
$0.0028 per share represents an equitable allocation of reasonable 
dues, fees, and other charges among Members and other persons using its 
facilities because the Exchange does not levy additional fees or offer 
additional rebates for orders that it routes to PSX through BATS 
Trading. As of June 1, 2015, PSX amended its fee to remove liquidity 
via routable order types it charges its customers, from a fee of 
$0.0029 per share to a fee of $0.0027 per share for Tapes A and B 
securities and $0.0028 per share for Tape C securities.\12\ Therefore, 
the Exchange believes that its proposal to pass through a fee of 
$0.0028 per share for orders that yield fee code K is equitable and 
reasonable because it accounts for the pricing changes on PSX. In 
addition, the proposal allows the Exchange to now charge its Members a 
pass-through rate for orders that are routed to PSX. Furthermore, the 
Exchange notes that routing through BATS Trading is voluntary. Lastly, 
the Exchange also believes that the proposed amendment is non-
discriminatory because it applies uniformly to all Members.
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    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ See supra note 6.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    These proposed rule changes do 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 any of these changes 
represent a significant departure from previous pricing offered by the 
Exchange or pricing offered by the Exchange's competitors. 
Additionally, Members may opt to disfavor EDGA's pricing if they 
believe that alternatives offer them better value. Accordingly, the 
Exchange does not believe that the proposed changes will impair the 
ability of Members or competing venues to maintain their competitive 
standing in the financial markets. The Exchange believes that its 
proposal to pass through a fee of $0.0028 per share for Members' orders 
that yield fee code K would increase intermarket competition because it 
offers customers an alternative means to route to PSX. The Exchange 
believes that its proposal would not burden intramarket competition 
because the proposed rate would apply uniformly to all Members.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from Members or other interested 
parties.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 
thereunder.\14\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-EDGA-2015-23 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-2015-23. 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-2015-23 and should be 
submitted on or before July 8, 2015.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14820 Filed 6-16-15; 8:45 am]
 BILLING CODE 8011-01-P

34776 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices Electronic Comments SECURITIES AND EXCHANGE II. Self-Regulatory Organization’s COMMISSION Statement of the Purpose of, and • Use the Commission’s Internet Statutory Basis for, the Proposed Rule comment form (http://www.sec.gov/ Change [Release No. 34–75146; File No. SR–EDGA– rules/sro.shtml); or 2015–23] In its filing with the Commission, the • Send an email to rule-comments@ Exchange included statements sec.gov. Please include File Number SR– Self-Regulatory Organizations; EDGA concerning the purpose of and basis for EDGX–2015–27 on the subject line. Exchange, Inc.; Notice of Filing and the proposed rule change and discussed Immediate Effectiveness of a Proposed any comments it received on the Paper Comments Rule Change Related to Fees for Use proposed rule change. The text of these • Send paper comments in triplicate of EDGA Exchange, Inc. statements may be examined at the to Brent J. Fields, Secretary, Securities places specified in Item IV below. The June 11, 2015. Exchange has prepared summaries, set and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the forth in Sections A, B, and C below, of Securities Exchange Act of 1934 (the the most significant parts of such All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2 statements. Number SR–EDGX–2015–27. This file notice is hereby given that on June 9, (A) Self-Regulatory Organization’s number should be included on the 2015, EDGA Exchange, Inc. (the Statement of the Purpose of, and subject line if email is used. To help the ‘‘Exchange’’ or ‘‘EDGA’’) filed with the Statutory Basis for, the Proposed Rule Commission process and review your Securities and Exchange Commission Change comments more efficiently, please use (‘‘Commission’’) the proposed rule only one method. The Commission will 1. Purpose change as described in Items I, II and III post all comments on the Commission’s below, which Items have been prepared The Exchange proposes to increase Internet Web site (http://www.sec.gov/ by the Exchange.3 The Exchange has the fee for orders yielding fee code K, rules/sro.shtml). Copies of the which routes to PSX using ROUC or designated the proposed rule change as submission, all subsequent ROUE routing strategy. In securities one establishing or changing a member amendments, all written statements priced at or above $1.00, the Exchange due, fee, or other charge imposed by the with respect to the proposed rule currently assesses a fee of $0.0026 per Exchange under Section 19(b)(3)(A)(ii) share for Members’ orders that yield fee change that are filed with the of the Act 4 and Rule 19b–4(f)(2) Commission, and all written code K. The Exchange proposes to thereunder,5 which renders the amend its Fee Schedule to increase this communications relating to the proposed rule change effective upon fee to $0.0028 per share. The proposed proposed rule change between the filing with the Commission. The change would enable the Exchange to Commission and any person, other than Commission is publishing this notice to pass through the rate that BATS those that may be withheld from the solicit comments on the proposed rule Trading, Inc. (‘‘BATS Trading’’), the public in accordance with the change from interested persons. Exchange’s affiliated routing broker- provisions of 5 U.S.C. 552, will be dealer, is charged for routing orders to available for Web site viewing and I. Self-Regulatory Organization’s PSX when it does not qualify for a printing in the Commission’s Public Statement of the Terms of Substance of volume tiered reduced fee. The Reference Room, 100 F Street NE., the Proposed Rule Change proposed change is in response to PSX’s Washington, DC 20549, on official The Exchange filed a proposal to June 2015 fee change where PSX business days between the hours of amend its fees and rebates applicable to decreased the fee to remove liquidity via 10:00 a.m. and 3:00 p.m. Copies of the Members 6 of the Exchange pursuant to routable order types it charges its filing will also be available for EDGA Rule 15.1(a) and (c) (‘‘Fee customers, from a fee of $0.0029 per inspection and copying at the principal Schedule’’) to increase the fee for orders share to a fee of $0.0027 per share for office of the Exchange. All comments yielding fee code K, which routes to Tapes A and B securities and $0.0028 received will be posted without change; per share for Tape C securities.7 When NASDAQ OMX PSX (‘‘PSX’’) using the Commission does not edit personal BATS Trading routes to PSX, it will ROUC or ROUE routing strategy. identifying information from now be charged a standard rate of submissions. You should submit only The text of the proposed rule change $0.0027 per share for Tapes A and B information that you wish to make is available at the Exchange’s Web site securities and $0.0028 per share for available publicly. All submissions at www.batstrading.com, at the Tape C securities.8 BATS Trading will principal office of the Exchange, and at pass through this rate to the Exchange should refer to File Number SR–EDGX– the Commission’s Public Reference and the Exchange, in turn, will pass 2015–27 and should be submitted on or Room. through of a rate of $0.0028 per share for before July 8, 2015. Tape A, B, and C securities to its For the Commission, by the Division of 1 15 U.S.C. 78s(b)(1). Members.9 The proposed increase to the Trading and Markets, pursuant to delegated 2 17 CFR 240.19b–4. authority.20 3 The Commission notes that a previous version 7 See PSX, Equity Trader Alert 2015–05, Updates Robert W. Errett, of the proposal was filed as SR–EDGA–2015–22. to PSX Pricing for June 2015, dated May 28, 2015, asabaliauskas on DSK5VPTVN1PROD with NOTICES The proposal was withdrawn on June 9, 2015. available at http://www.nasdaqtrader.com/ Deputy Secretary. 4 15 U.S.C. 78s(b)(3)(A)(ii). MicroNews.aspx?id=ETA2015-78. [FR Doc. 2015–14824 Filed 6–16–15; 8:45 am] 5 17 CFR 240.19b–4(f)(2). 8 The Exchange notes that to the extent BATS BILLING CODE 8011–01–P 6 The term ‘‘Member’’ is defined as ‘‘any Trading does or does not achieve any volume tiered registered broker or dealer, or any person associated reduced fee on PSX, its rate for fee code K will not with a registered broker or dealer, that has been change. admitted to membership in the Exchange. A 9 The Exchange 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 Exchange as that term is defined in Section 3(a)(3) tape, it will pass through the higher fee of $0.0028 20 17 CFR 200.30–3(a)(12). of the Act.’’ See Exchange Rule 1.5(n). per share for all Tapes A, B & C securities. VerDate Sep<11>2014 18:47 Jun 16, 2015 Jkt 235001 PO 00000 Frm 00171 Fmt 4703 Sfmt 4703 E:\FR\FM\17JNN1.SGM 17JNN1

Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices 34777 fee under fee code K would enable the believe that the proposed changes will number should be included on the Exchange to equitably allocate its costs impair the ability of Members or subject line if email is used. To help the among all Members utilizing fee code K. competing venues to maintain their Commission process and review your The Exchange proposes to implement competitive standing in the financial comments more efficiently, please use this amendment to its Fee Schedule markets. The Exchange believes that its only one method. The Commission will immediately. proposal to pass through a fee of post all comments on the Commission’s $0.0028 per share for Members’ orders Internet Web site (http://www.sec.gov/ 2. Statutory Basis that yield fee code K would increase rules/sro.shtml). Copies of the The Exchange believes that the intermarket competition because it submission, all subsequent proposed rule change is consistent with offers customers an alternative means to amendments, all written statements the objectives of Section 6 of the Act,10 route to PSX. The Exchange believes with respect to the proposed rule in general, and furthers the objectives of that its proposal would not burden change that are filed with the Section 6(b)(4),11 in particular, as it is intramarket competition because the Commission, and all written designed to provide for the equitable proposed rate would apply uniformly to communications relating to the allocation of reasonable dues, fees and all Members. proposed rule change between the other charges among its Members and Commission and any person, other than other persons using its facilities. The (C) Self-Regulatory Organization’s Statement on Comments on the those that may be withheld from the Exchange believes that its proposal to public in accordance with the increase the fee for Members’ orders that Proposed Rule Change Received From Members, Participants or Others provisions of 5 U.S.C. 552, will be yield fee code K from $0.0026 per share available for Web site viewing and to $0.0028 per share represents an The Exchange has not solicited, and printing in the Commission’s Public equitable allocation of reasonable dues, does not intend to solicit, comments on Reference Room, 100 F Street NE., fees, and other charges among Members this proposed rule change. The Washington, DC 20549, on official and other persons using its facilities Exchange has not received any business days between the hours of because the Exchange does not levy unsolicited written comments from 10:00 a.m. and 3:00 p.m. Copies of the additional fees or offer additional Members or other interested parties. filing will also be available for rebates for orders that it routes to PSX III. Date of Effectiveness of the inspection and copying at the principal through BATS Trading. As of June 1, Proposed Rule Change and Timing for office of the Exchange. All comments 2015, PSX amended its fee to remove Commission Action received will be posted without change; liquidity via routable order types it the Commission does not edit personal charges its customers, from a fee of The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) identifying information from $0.0029 per share to a fee of $0.0027 per submissions. You should submit only share for Tapes A and B securities and of the Act 13 and paragraph (f) of Rule 19b–4 thereunder.14 At any time within information that you wish to make $0.0028 per share for Tape C available publicly. All submissions securities.12 Therefore, the Exchange 60 days of the filing of the proposed rule change, the Commission summarily may should refer to File Number SR–EDGA– believes that its proposal to pass 2015–23 and should be submitted on or through a fee of $0.0028 per share for temporarily suspend such rule change if it appears to the Commission that such before July 8,2015. orders that yield fee code K is equitable and reasonable because it accounts for action is necessary or appropriate in the For the Commission, by the Division of the pricing changes on PSX. In addition, public interest, for the protection of Trading and Markets, pursuant to delegated investors, or otherwise in furtherance of authority.15 the proposal allows the Exchange to now charge its Members a pass-through the purposes of the Act. Robert W. Errett, rate for orders that are routed to PSX. Deputy Secretary. IV. Solicitation of Comments Furthermore, the Exchange notes that [FR Doc. 2015–14820 Filed 6–16–15; 8:45 am] Interested persons are invited to routing through BATS Trading is submit written data, views, and BILLING CODE 8011–01–P voluntary. Lastly, the Exchange also arguments concerning the foregoing, believes that the proposed amendment including whether the proposed rule is non-discriminatory because it applies SECURITIES AND EXCHANGE change is consistent with the Act. COMMISSION uniformly to all Members. Comments may be submitted by any of (B) Self-Regulatory Organization’s the following methods: [Release No. 34–75154; File No. SR–FINRA– Statement on Burden on Competition 2015–015] Electronic Comments These proposed rule changes do not • Use the Commission’s Internet Self-Regulatory Organizations; impose any burden on competition that comment form (http://www.sec.gov/ Financial Industry Regulatory is not necessary or appropriate in rules/sro.shtml); or Authority, Inc.; Notice of Filing of a furtherance of the purposes of the Act. • Send an email to rule-comments@ Proposed Rule Change To Provide a The Exchange does not believe that any sec.gov. Please include File Number SR– Web-Based Delivery Method for of these changes represent a significant EDGA–2015–23 on the subject line. Completing the Regulatory Element of departure from previous pricing offered the Continuing Education by the Exchange or pricing offered by Paper Comments Requirements • Send paper comments in triplicate asabaliauskas on DSK5VPTVN1PROD with NOTICES the Exchange’s competitors. Additionally, Members may opt to to Brent J. Fields, Secretary, Securities June 11, 2015. disfavor EDGA’s pricing if they believe and Exchange Commission, 100 F Street Pursuant to Section 19(b)(1) of the that alternatives offer them better value. NE., Washington, DC 20549–1090. Securities Exchange Act of 1934 Accordingly, the Exchange does not All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Number SR–EDGA–2015–23. This file 10 15 U.S.C. 78f. 15 17 CFR 200.30–3(a)(12). 11 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 12 See supra note 6. 14 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. 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Document Created: 2015-12-15 14:23:20
Document Modified: 2015-12-15 14:23:20
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 34776 
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