80 FR 43806 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 141 (July 23, 2015)

[Federal Register Volume 80, Number 141 (Thursday, July 23, 2015)]
[Notices]
[Pages 43806-43807]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18035]



[[Page 43806]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75478; File No. SR-EDGX-2015-34]


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

July 17, 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 14, 2015, EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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 schedule of fees and 
rebates applicable to Members \5\ and non-Members of the Exchange 
pursuant to EDGX Rule 15.1(a) and (c) (``Fee Schedule'') to correct a 
typographical error on the Fee Schedule and to make additional changes 
intended to improve the Fee Schedule.
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange submitted a proposed rule change with the Commission, 
for effectiveness on July 6, 2015, to modify the Exchange's Fee 
Schedule.\6\ Pursuant to the filing, the Exchange removed various 
footnotes, including footnotes 11 and 12 from the prior Fee Schedule, 
and also added back in a new footnote 11. In connection with this 
change, the Exchange erroneously appended footnote 12 to a new fee 
code, fee code HI, even though there is no longer a footnote 12. The 
Exchange proposes to eliminate the reference to footnote 12 with 
respect to fee code HI.
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    \6\ See Securities Exchange Act Release No. 75435 (July 13, 
2015) (SR-EDGX-2015-32).
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    In addition to deleting the reference to footnote 12, the Exchange 
proposes to append footnote 11 to fee code HA. Fee code HA is appended 
to orders with a Non-Displayed \7\ instruction that add liquidity. New 
footnote 11 that was added as of July 6, 2015, provides additional 
information to readers of the Fee Schedule regarding the application of 
the liquidity code to the Reserve Quantity \8\ of orders as well as 
orders with a Discretionary Range \9\ instruction, making clear that 
pricing applicable to added non-displayed liquidity does not apply to 
such orders. The Exchange proposes to also append this new footnote to 
fee code HA, which also relates to orders with a Non-Displayed 
instruction.
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    \7\ See Exchange Rule 11.6(e)(2).
    \8\ See Exchange Rule 11.6(m).
    \9\ See Exchange Rule 11.6(d).
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    The Exchange also proposes to modify footnote 11, which, as noted 
above, was recently added by the Exchange. The current footnote states 
that the ``fee'' for adding non-displayed liquidity does not apply to 
the Reserve Quantity of an order or an order with a Discretionary Range 
instruction. In this case, the Exchange intended the term ``fee'' to 
mean ``pricing.'' However, to avoid confusion, given that the current 
pricing for adding non-displayed liquidity yielding either fee code HA 
or HI is either without fee or results in a rebate, the Exchange 
proposes to amend the footnote to read that the ``fee or rebate'' for 
adding non-displayed liquidity does not apply to the Reserve Quantity 
of an order or an order with a Discretionary Range instruction.
    Finally, the Exchange notes that each of the above proposed changes 
do not amend the amount or application of any fee or rebate.
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,\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. Specifically, the Exchange believes it is equitable, 
reasonable and non-discriminatory to delete fee reference to footnote 
12, append footnote 11 to fee code HA, and modify footnote 11 as 
described above because each of these changes are designed to avoid 
investor confusion and improve the Exchange's Fee Schedule.
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    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(4).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition. The proposed rule change corrects a 
typographical error recently introduced to the Fee Schedule and also 
provides additional information to readers of the Fee Schedule by 
appending footnote 11 to fee code HA and modifying footnote 11 as 
described above. The proposed changes do not amend the amount or 
application of any fee or rebate.

(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.

[[Page 43807]]

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 \12\ and paragraph (f) of Rule 19b-4 
thereunder.\13\ 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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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-EDGX-2015-34 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-EDGX-2015-34. 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-EDGX-2015-34 and should be 
submitted on or before August 13, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18035 Filed 7-22-15; 8:45 am]
BILLING CODE 8011-01-P