80_FR_42719 80 FR 42582 - 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 42582 - 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 137 (July 17, 2015)

Page Range42582-42584
FR Document2015-17488

Federal Register, Volume 80 Issue 137 (Friday, July 17, 2015) 
[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42582-42584]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17488]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75433; File No. SR-EDGA-2015-27]


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.

July 13, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 2, 2015, EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 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 \5\ of the Exchange pursuant to EDGA Rule 15.1(a) 
and (c) (``Fee Schedule'') to amend fee code MT, which routes to EDGX 
Exchange, Inc. (``EDGX'') using the ICMT, IOCM, ROCO or ROUC routing 
strategy and removes liquidity against MidPoint Match Orders \6\ on 
EDGX by: (i) Revising the description of the orders eligible to yield 
fee code MT; and (ii) increasing the fee for orders yielding fee code 
MT.
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    \5\ 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).
    \6\ See Exchange Rule 11.8(d).
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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.

[[Page 42583]]

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 amend fee code MT, which routes to EDGX using 
the ICMT, IOCM, ROCO or ROUC routing strategy and removes liquidity 
against MidPoint Match Orders on EDGX by: (i) Revising the description 
of the orders eligible to yield fee code MT; and (ii) increasing the 
fee for orders yielding fee code MT.
Description of Fee Code MT
    The Exchange proposes to amend the description of fee code MT in 
two ways. First, the Exchange proposes to replace references to 
MidPoint Match Orders with MidPoint Peg Orders. This change is in 
response to a proposed rule change filed with the Commission by EDGX to 
align certain EDGX functionality with BATS Exchange, Inc. (``BZX'').\7\ 
The EDGX proposed rules change includes replacing MidPoint Match Orders 
on EDGX with a MidPoint Peg Order type. Therefore, the Exchange 
proposes to amend the description of fee code MT to replace the 
reference to MidPoint Match Orders with MidPoint Peg Orders.
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    \7\ See SR-EDGX-2015-30 [sic] available at www.batstrading.com/regulation/rule_filings/edgx. A description of the changes proposed 
in this filing may be found in BATS EDGX Exchange Modifications, 
Effective July 6, 2015, available at http://cdn.batstrading.com/resources/release_notes/2015/BATS-EDGX-Exchange-Modifications-Effective-July-6-2015.pdf. [sic]
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    Second, the Exchange proposes to remove references to the ROCO and 
ROUC routing strategies \8\ from the description of fee code MT. In 
sum, both the ROCO and ROUC are routing strategies that check the 
System \9\ for available shares and are then sent to low cost 
destinations on the System routing table, which currently includes EDGX 
for these routing strategies. Due to the EDGX fee increase discussed 
below, both the ROCO and ROUC routing strategies will no longer be 
routed to EDGX as of July 6, 2015. Therefore, the Exchange proposes to 
remove references to the ROCO and ROUC routing strategies from the 
description of fee code MT.
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    \8\ See Exchange Rule 11.11(g).
    \9\ See Exchange Rule 1.5(cc).
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    As a result of these two proposed changes, the description of fee 
code MT will be amended to reflect that it will be appended to orders 
that are that routed to EDGX using the ICMT or IOCM routing strategy 
and remove liquidity against MidPoint Peg Orders resting on EDGX.
Fee Code MT Fee Change
    In securities priced at or above $1.00, the Exchange currently 
assesses a fee of $0.00120 per share for Members' orders that yield fee 
code MT. The Exchange proposes to amend its Fee Schedule to increase 
this fee to $0.00290 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 EDGX when it does not qualify for a reduced fee. 
The proposed change is in response to EDGX's proposed July 6, 2015 fee 
change where EDGX has announced that it will delete fee code MT, under 
which orders that remove liquidity against MidPoint Match Orders were 
charged a fee of $0.00120 per share.\10\ As a result of EDGX deleting 
its fee code MT, orders that remove liquidity at the midpoint of the 
NBBO will now be charged EDGX's standard removal rate of $0.00290 per 
share.\11\ When BATS Trading routes to EDGX and removes liquidity 
against MidPoint Peg Orders resting on EDGX, it will now be charged a 
standard rate of $0.00290 per share.\12\ BATS Trading will pass through 
this rate to the Exchange and the Exchange, in turn, will pass through 
to its Members.
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    \10\ See Update: BATS EDGX and EDGA Exchange Pricing Updates 
Effective July 2015, available at http://cdn.batstrading.com/resources/fee_schedule/2015/BATS-EDGX-and-EDGA-Exchange-Pricing-Updates-Effective-July-2015.pdf.
    \11\ Id.
    \12\ The Exchange notes that to the extent BATS Trading does or 
does not achieve any reduced fee on EDGX, its rate for fee code MT 
will not change.
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Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule on July 6, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of section 6 of the Act,\13\ in general, and 
furthers the objectives of section 6(b)(4),\14\ 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.
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    \13\ 15 U.S.C. 78f.
    \14\ 15 U.S.C. 78f(b)(4).
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Description of Fee Code MT
    The Exchange believes that its proposal to amend the description of 
fee code MT represents an equitable allocation of reasonable dues, 
fees, and other charges among Members and other persons using its 
facilities because it updates the description of fee code MT to reflect 
the scenarios under which fee code MT will be appended to an order. The 
proposed changes are in response to a proposed rule change filed by 
EDGX with the Commission to replace MidPoint Match Orders on EDGX with 
the MidPoint Peg Order type.\15\ In addition, due to the EDGX July 6, 
2015 fee change increase herein,\16\ both the ROCO and ROUC routing 
strategies will no longer be routed to EDGX as of that date. The 
proposal is reasonable because the updated description would reflect 
the scenarios under which orders may yield fee code MT as a result of 
the proposed rule and fee changes proposed by EDGX.\17\ 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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    \15\ See supra note 7.
    \16\ See supra note 10.
    \17\ See supra notes 7 and 10.
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Fee Code MT Fee Change
    The Exchange believes that its proposal to increase the fee for 
Members' orders that yield fee code MT from $0.00120 per share to 
$0.00290 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 EDGX through BATS 
Trading. As of July 6, 2015, EDGX will delete its fee to remove 
liquidity against MidPoint Match Orders of $0.00120 per share, thereby 
charging orders that remove liquidity at the midpoint of the NBBO its 
standard removal rate of $0.00290 per share.\18\ Therefore, the 
Exchange believes that its proposal to pass through a fee of $0.00290 
per share for orders that yield fee code MT is

[[Page 42584]]

equitable and reasonable because it accounts for the pricing changes on 
EDGX. In addition, the proposal allows the Exchange to charge its 
Members a pass-through rate for orders that are routed to EDGX. 
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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    \18\ Id.
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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 $0.00290 per share for Members' 
orders that yield fee code MT would increase intermarket competition 
because it offers customers an alternative means to route to EDGX. The 
Exchange believes that its proposal would not burden intramarket 
competition because the proposed rate would apply uniformly to all 
Members. Lastly, the Exchange does not believe the updated description 
of fee code MT imposes any burden on competition as it is not designed 
to have a competitive impact. Rather, it is intended to update the 
description of fee code MT to reflect the scenarios under which an 
order would be eligible to yield fee code MT as a result of the 
proposed rule and fee changes proposed by EDGX discussed herein.\19\
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    \19\ Id.
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(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has 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.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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 [email protected]. Please include 
File Number SR-EDGA-2015-27 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-2015-27. 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-2015-27 and should be 
submitted on or before August 7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-17488 Filed 7-16-15; 8:45 am]
 BILLING CODE 8011-01-P

42582 Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices interest; (ii) impose any significant Electronic Comments SECURITIES AND EXCHANGE burden on competition; and (iii) become COMMISSION operative for 30 days from the date on • Use the Commission’s Internet which it was filed, or such shorter time comment form (http://www.sec.gov/ [Release No. 34–75433; File No. SR–EDGA– as the Commission may designate, it has rules/sro.shtml); or 2015–27] become effective pursuant to Section • Send an email to rule-comments@ Self-Regulatory Organizations; EDGA 19(b)(3)(A) of the Act 19 and Rule 19b– sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Filing and 4(f)(6) thereunder.20 NYSEMKT–2015–47 on the subject line. Immediate Effectiveness of a Proposed A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Paper Comments Rule Change Related to Fees for Use Act 21 normally does not become of EDGA Exchange, Inc. operative for 30 days after the date of its • Send paper comments in triplicate July 13, 2015. filing. However, Rule 19b–4(f)(6)(iii) 22 to Brent J. Fields, Secretary, Securities Pursuant to section 19(b)(1) of the permits the Commission to designate a and Exchange Commission, 100 F Street Securities Exchange Act of 1934 (the shorter time if such action is consistent NE., Washington, DC 20549–1090. ‘‘Act’’),1 and Rule 19b–4 thereunder,2 with the protection of investors and the All submissions should refer to File notice is hereby given that on July 2, public interest. The Exchange has asked Number SR–NYSEMKT–2015–47. This 2015, EDGA Exchange, Inc. (the the Commission to waive the 30-day ‘‘Exchange’’ or ‘‘EDGA’’) filed with the file number should be included on the operative delay so that the proposal may Securities and Exchange Commission subject line if email is used. To help the become operative immediately upon (‘‘Commission’’) the proposed rule filing. The Exchange stated that waiver Commission process and review your comments more efficiently, please use change as described in Items I, II and III of the operative delay will permit the below, which Items have been prepared Exchange to list and trade certain ETF only one method. The Commission will post all comments on the Commission’s by the Exchange. The Exchange has options on the same basis as other designated the proposed rule change as options markets.23 The Commission Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the one establishing or changing a member believes the waiver of the operative due, fee, or other charge imposed by the delay is consistent with the protection submission, all subsequent Exchange under section 19(b)(3)(A)(ii) of investors and the public interest. amendments, all written statements of the Act 3 and Rule 19b–4(f)(2) Therefore, the Commission hereby with respect to the proposed rule thereunder,4 which renders the waives the operative delay and change that are filed with the proposed rule change effective upon designates the proposal operative upon Commission, and all written filing with the Commission. The filing.24 communications relating to the At any time within 60 days of the Commission is publishing this notice to proposed rule change between the solicit comments on the proposed rule filing of the proposed rule change, the Commission and any person, other than Commission summarily may change from interested persons. those that may be withheld from the temporarily suspend such rule change if public in accordance with the I. Self-Regulatory Organization’s it appears to the Commission that such provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of action is necessary or appropriate in the the Proposed Rule Change available for Web site viewing and public interest, for the protection of printing in the Commission’s Public The Exchange filed a proposal to investors, or otherwise in furtherance of Reference Room, 100 F Street NE., amend its fees and rebates applicable to the purposes of the Act. If the Washington, DC 20549 on official Members 5 of the Exchange pursuant to Commission takes such action, the Commission shall institute proceedings business days between the hours of EDGA Rule 15.1(a) and (c) (‘‘Fee to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such Schedule’’) to amend fee code MT, change should be approved or filing also will be available for which routes to EDGX Exchange, Inc. disapproved. inspection and copying at the principal (‘‘EDGX’’) using the ICMT, IOCM, ROCO office of the Exchange. All comments or ROUC routing strategy and removes IV. Solicitation of Comments liquidity against MidPoint Match received will be posted without change; Interested persons are invited to the Commission does not edit personal Orders 6 on EDGX by: (i) Revising the submit written data, views, and identifying information from description of the orders eligible to arguments concerning the foregoing, yield fee code MT; and (ii) increasing submissions. You should submit only including whether the proposed rule the fee for orders yielding fee code MT. information that you wish to make change is consistent with the Act. The text of the proposed rule change available publicly. All submissions is available at the Exchange’s Web site Comments may be submitted by any of should refer to File Number SR– the following methods: at www.batstrading.com, at the NYSEMKT–2015–47, and should be principal office of the Exchange, and at 19 15 U.S.C. 78s(b)(3)(A). submitted on or before August 7, 2015. the Commission’s Public Reference 20 17 CFR 240.19b–4(f)(6). As required under Rule For the Commission, by the Division of Room. 19b–4(f)(6)(iii), the Exchange provided the Trading and Markets, pursuant to delegated Commission with written notice of its intent to file 1 15 the proposed rule change, along with a brief authority.25 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. description and the text of the proposed rule Brent J. Fields, 3 15 U.S.C. 78s(b)(3)(A)(ii). change, at least five business days prior to the date srobinson on DSK5SPTVN1PROD with NOTICES of filing of the proposed rule change. Secretary. 4 17 CFR 240.19b–4(f)(2). 21 17 CFR 240.19b–4(f)(6). [FR Doc. 2015–17495 Filed 7–16–15; 8:45 am] 5 The term ‘‘Member’’ is defined as ‘‘any 22 17 CFR 240.19b–4(f)(6)(iii). BILLING CODE 8011–01–P registered broker or dealer, or any person associated 23 See supra note 18. with a registered broker or dealer, that has been 24 For purposes only of waiving the 30-day admitted to membership in the Exchange. A operative delay, the Commission has also Member will have the status of a ‘‘member’’ of the considered the proposed rule’s impact on Exchange as that term is defined in section 3(a)(3) efficiency, competition, and capital formation. See of the Act.’’ See Exchange Rule 1.5(n). 15 U.S.C. 78c(f). 25 17 CFR 200.30–3(a)(12). 6 See Exchange Rule 11.8(d). VerDate Sep<11>2014 20:59 Jul 16, 2015 Jkt 235001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1

Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42583 II. Self-Regulatory Organization’s for these routing strategies. Due to the the objectives of section 6 of the Act,13 Statement of the Purpose of, and EDGX fee increase discussed below, in general, and furthers the objectives of Statutory Basis for, the Proposed Rule both the ROCO and ROUC routing section 6(b)(4),14 in particular, as it is Change strategies will no longer be routed to designed to provide for the equitable In its filing with the Commission, the EDGX as of July 6, 2015. Therefore, the allocation of reasonable dues, fees and Exchange included statements Exchange proposes to remove references other charges among its Members and concerning the purpose of and basis for to the ROCO and ROUC routing other persons using its facilities. the proposed rule change and discussed strategies from the description of fee Description of Fee Code MT any comments it received on the code MT. proposed rule change. The text of these As a result of these two proposed The Exchange believes that its statements may be examined at the changes, the description of fee code MT proposal to amend the description of fee places specified in Item IV below. The will be amended to reflect that it will be code MT represents an equitable Exchange has prepared summaries, set appended to orders that are that routed allocation of reasonable dues, fees, and forth in sections A, B, and C below, of to EDGX using the ICMT or IOCM other charges among Members and other the most significant parts of such routing strategy and remove liquidity persons using its facilities because it statements. against MidPoint Peg Orders resting on updates the description of fee code MT EDGX. to reflect the scenarios under which fee (A) Self-Regulatory Organization’s code MT will be appended to an order. Statement of the Purpose of, and Fee Code MT Fee Change The proposed changes are in response to Statutory Basis for, the Proposed Rule In securities priced at or above $1.00, a proposed rule change filed by EDGX Change the Exchange currently assesses a fee of with the Commission to replace 1. Purpose $0.00120 per share for Members’ orders MidPoint Match Orders on EDGX with that yield fee code MT. The Exchange the MidPoint Peg Order type.15 In The Exchange proposes amend fee proposes to amend its Fee Schedule to addition, due to the EDGX July 6, 2015 code MT, which routes to EDGX using increase this fee to $0.00290 per share. fee change increase herein,16 both the the ICMT, IOCM, ROCO or ROUC The proposed change would enable the ROCO and ROUC routing strategies will routing strategy and removes liquidity Exchange to pass through the rate that no longer be routed to EDGX as of that against MidPoint Match Orders on BATS Trading, Inc. (‘‘BATS Trading’’), date. The proposal is reasonable because EDGX by: (i) Revising the description of the Exchange’s affiliated routing broker- the updated description would reflect the orders eligible to yield fee code MT; dealer, is charged for routing orders to the scenarios under which orders may and (ii) increasing the fee for orders EDGX when it does not qualify for a yield fee code MT as a result of the yielding fee code MT. reduced fee. The proposed change is in proposed rule and fee changes proposed Description of Fee Code MT response to EDGX’s proposed July 6, by EDGX.17 Furthermore, the Exchange The Exchange proposes to amend the 2015 fee change where EDGX has notes that routing through BATS description of fee code MT in two ways. announced that it will delete fee code Trading is voluntary. Lastly, the First, the Exchange proposes to replace MT, under which orders that remove Exchange also believes that the references to MidPoint Match Orders liquidity against MidPoint Match Orders proposed amendment is non- with MidPoint Peg Orders. This change were charged a fee of $0.00120 per discriminatory because it applies is in response to a proposed rule change share.10 As a result of EDGX deleting its uniformly to all Members. filed with the Commission by EDGX to fee code MT, orders that remove Fee Code MT Fee Change align certain EDGX functionality with liquidity at the midpoint of the NBBO BATS Exchange, Inc. (‘‘BZX’’).7 The will now be charged EDGX’s standard The Exchange believes that its EDGX proposed rules change includes removal rate of $0.00290 per share.11 proposal to increase the fee for replacing MidPoint Match Orders on When BATS Trading routes to EDGX Members’ orders that yield fee code MT EDGX with a MidPoint Peg Order type. and removes liquidity against MidPoint from $0.00120 per share to $0.00290 per Therefore, the Exchange proposes to Peg Orders resting on EDGX, it will now share represents an equitable allocation amend the description of fee code MT be charged a standard rate of $0.00290 of reasonable dues, fees, and other to replace the reference to MidPoint per share.12 BATS Trading will pass charges among Members and other Match Orders with MidPoint Peg through this rate to the Exchange and persons using its facilities because the Orders. the Exchange, in turn, will pass through Exchange does not levy additional fees Second, the Exchange proposes to to its Members. or offer additional rebates for orders that remove references to the ROCO and it routes to EDGX through BATS Implementation Date Trading. As of July 6, 2015, EDGX will ROUC routing strategies 8 from the description of fee code MT. In sum, both The Exchange proposes to implement delete its fee to remove liquidity against the ROCO and ROUC are routing these amendments to its Fee Schedule MidPoint Match Orders of $0.00120 per strategies that check the System 9 for on July 6, 2015. share, thereby charging orders that available shares and are then sent to low remove liquidity at the midpoint of the 2. Statutory Basis cost destinations on the System routing NBBO its standard removal rate of table, which currently includes EDGX The Exchange believes that the $0.00290 per share.18 Therefore, the proposed rule change is consistent with Exchange believes that its proposal to 7 See SR–EDGX–2015–30 [sic] available at pass through a fee of $0.00290 per share srobinson on DSK5SPTVN1PROD with NOTICES www.batstrading.com/regulation/rule_filings/edgx. 10 See Update: BATS EDGX and EDGA Exchange for orders that yield fee code MT is A description of the changes proposed in this filing Pricing Updates Effective July 2015, available at may be found in BATS EDGX Exchange http://cdn.batstrading.com/resources/fee_schedule/ 13 15 Modifications, Effective July 6, 2015, available at 2015/BATS-EDGX-and-EDGA-Exchange-Pricing- U.S.C. 78f. 14 15 U.S.C. 78f(b)(4). http://cdn.batstrading.com/resources/release_ Updates-Effective-July-2015.pdf. 15 See supra note 7. notes/2015/BATS-EDGX-Exchange-Modifications- 11 Id. Effective-July-6-2015.pdf. [sic] 12 The Exchange notes that to the extent BATS 16 See supra note 10. 8 See Exchange Rule 11.11(g). 17 See supra notes 7 and 10. Trading does or does not achieve any reduced fee 9 See Exchange Rule 1.5(cc). on EDGX, its rate for fee code MT will not change. 18 Id. VerDate Sep<11>2014 20:59 Jul 16, 2015 Jkt 235001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1

42584 Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices equitable and reasonable because it III. Date of Effectiveness of the inspection and copying at the principal accounts for the pricing changes on Proposed Rule Change and Timing for office of the Exchange. All comments EDGX. In addition, the proposal allows Commission Action received will be posted without change; the Exchange to charge its Members a The foregoing rule change has become the Commission does not edit personal pass-through rate for orders that are effective pursuant to section 19(b)(3)(A) identifying information from routed to EDGX. Furthermore, the of the Act 20 and paragraph (f) of Rule submissions. You should submit only Exchange notes that routing through 19b–4 thereunder.21 At any time within information that you wish to make BATS Trading is voluntary. Lastly, the 60 days of the filing of the proposed rule available publicly. All submissions Exchange also believes that the change, the Commission summarily may should refer to File Number SR–EDGA– proposed amendment is non- temporarily suspend such rule change if 2015–27 and should be submitted on or discriminatory because it applies it appears to the Commission that such before August 7, 2015. uniformly to all Members. action is necessary or appropriate in the For the Commission, by the Division of public interest, for the protection of Trading and Markets, pursuant to delegated (B) Self-Regulatory Organization’s investors, or otherwise in furtherance of authority.22 Statement on Burden on Competition the purposes of the Act. Brent J. Fields, Secretary. These proposed rule changes do not IV. Solicitation of Comments [FR Doc. 2015–17488 Filed 7–16–15; 8:45 am] impose any burden on competition that Interested persons are invited to BILLING CODE 8011–01–P is not necessary or appropriate in submit written data, views, and furtherance of the purposes of the Act. arguments concerning the foregoing, The Exchange does not believe that any including whether the proposed rule SECURITIES AND EXCHANGE of these changes represent a significant change is consistent with the Act. COMMISSION departure from previous pricing offered Comments may be submitted by any of by the Exchange or pricing offered by [Release No. 34–75434; File No. SR– the following methods: NYSEArca–2015–57] the Exchange’s competitors. Electronic Comments Additionally, Members may opt to Self-Regulatory Organizations; NYSE disfavor EDGA’s pricing if they believe • Use the Commission’s Internet Arca, Inc.; Notice of Filing and that alternatives offer them better value. comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed Accordingly, the Exchange does not rules/sro.shtml); or Rule Change Adding a Pricing Tier believe that the proposed changes will • Send an email to rule-comments@ Applicable to Orders of ETP Holders sec.gov. Please include File Number SR– impair the ability of Members or for Tape A, Tape B and Tape C EDGA–2015–27 on the subject line. competing venues to maintain their Securities That Are Eligible To Be competitive standing in the financial Paper Comments Routed Away From the Exchange markets. The Exchange believes that its • Send paper comments in triplicate July 13, 2015. proposal to pass through a fee of to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the $0.00290 per share for Members’ orders and Exchange Commission, 100 F Street Securities Exchange Act of 1934 that yield fee code MT would increase NE., Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 2 thereunder, intermarket competition because it All submissions should refer to File notice is hereby given that, on June 30, offers customers an alternative means to Number SR–EDGA–2015–27. This file 2015, NYSE Arca, Inc. (the ‘‘Exchange’’ route to EDGX. The Exchange believes number should be included on the or ‘‘NYSE Arca’’) filed with the that its proposal would not burden subject line if email is used. To help the Securities and Exchange Commission intramarket competition because the Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed proposed rate would apply uniformly to comments more efficiently, please use rule change as described in Items I, II, all Members. Lastly, the Exchange does only one method. The Commission will and III below, which Items have been not believe the updated description of post all comments on the Commission’s prepared by the Exchange. The fee code MT imposes any burden on Internet Web site (http://www.sec.gov/ Commission is publishing this notice to competition as it is not designed to have rules/sro.shtml). Copies of the solicit comments on the proposed rule a competitive impact. Rather, it is submission, all subsequent change from interested persons. intended to update the description of amendments, all written statements fee code MT to reflect the scenarios with respect to the proposed rule I. Self-Regulatory Organization’s under which an order would be eligible change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change to yield fee code MT as a result of the proposed rule and fee changes proposed communications relating to the The Exchange proposes to add a by EDGX discussed herein.19 proposed rule change between the pricing tier applicable to orders of ETP Commission and any person, other than Holders for Tape A, Tape B and Tape C (C) Self-Regulatory Organization’s those that may be withheld from the Securities that are eligible to be routed Statement on Comments on the public in accordance with the away from the Exchange. The Exchange Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be proposes to implement the changes on Members, Participants or Others available for Web site viewing and July 1, 2015. The text of the proposed printing in the Commission’s Public rule change is available on the The Exchange has not solicited, and srobinson on DSK5SPTVN1PROD with NOTICES Reference Room, 100 F Street NE., Exchange’s Web site at www.nyse.com, does not intend to solicit, comments on Washington, DC 20549, on official at the principal office of the Exchange, this proposed rule change. The business days between the hours of and at the Commission’s Public Exchange has not received any 10:00 a.m. and 3:00 p.m. Copies of the Reference Room. unsolicited written comments from filing will also be available for Members or other interested parties. 22 17 CFR 200.30–3(a)(12). 20 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 19 Id. 21 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 20:59 Jul 16, 2015 Jkt 235001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1


Document Created: 2018-02-23 09:21:53
Document Modified: 2018-02-23 09:21:53
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
DatesBATS EDGX and EDGA Exchange Pricing Updates Effective July 2015, available at http://cdn.batstrading.com/ resources/fee_schedule/2015/BATS-EDGX-and-EDGA-Exchange-Pricing- Updates-Effective-July-2015.pdf.
FR Citation80 FR 42582 
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