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)

Page Range		43806-43807
FR Document		2015-18035
Federal Register, Volume 80 Issue 141 (Thursday, 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
43806 Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Notices

SECURITIES AND EXCHANGE concerning the purpose of and basis for either without fee or results in a rebate,
COMMISSION the proposed rule change and discussed the Exchange proposes to amend the
any comments it received on the footnote to read that the ‘‘fee or rebate’’
[Release No. 34–75478; File No. SR–EDGX–
2015–34]
proposed rule change. The text of these for adding non-displayed liquidity does
statements may be examined at the not apply to the Reserve Quantity of an
Self-Regulatory Organizations; EDGX places specified in Item IV below. The order or an order with a Discretionary
Exchange, Inc.; Notice of Filing and Exchange has prepared summaries, set Range instruction.
Immediate Effectiveness of a Proposed forth in Sections A, B, and C below, of
the most significant parts of such Finally, the Exchange notes that each
Rule Change Related to Fees for Use of the above proposed changes do not
of EDGX Exchange, Inc. statements.
amend the amount or application of any
July 17, 2015. (A) Self-Regulatory Organization’s fee or rebate.
Pursuant to Section 19(b)(1) of the Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Implementation Date
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Change
The Exchange proposes to implement
notice is hereby given that on July 14, 1. Purpose these amendments to its Fee Schedule
2015, EDGX Exchange, Inc. (the immediately.
The Exchange submitted a proposed
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
rule change with the Commission, for
Securities and Exchange Commission 2. Statutory Basis
effectiveness on July 6, 2015, to modify
(‘‘Commission’’) the proposed rule
the Exchange’s Fee Schedule.6 Pursuant The Exchange believes that the
change as described in Items I, II and III
to the filing, the Exchange removed proposed rule change is consistent with
below, which Items have been prepared
various footnotes, including footnotes the objectives of Section 6 of the Act,10
by the Exchange. The Exchange has
11 and 12 from the prior Fee Schedule, in general, and furthers the objectives of
designated the proposed rule change as
and also added back in a new footnote Section 6(b)(4),11 in particular, as it is
one establishing or changing a member
11. In connection with this change, the
due, fee, or other charge imposed by the designed to provide for the equitable
Exchange erroneously appended
Exchange under Section 19(b)(3)(A)(ii) allocation of reasonable dues, fees and
footnote 12 to a new fee code, fee code
of the Act 3 and Rule 19b–4(f)(2) other charges among its Members and
HI, even though there is no longer a
thereunder,4 which renders the other persons using its facilities.
footnote 12. The Exchange proposes to
proposed rule change effective upon Specifically, the Exchange believes it is
eliminate the reference to footnote 12
filing with the Commission. The equitable, reasonable and non-
with respect to fee code HI.
Commission is publishing this notice to In addition to deleting the reference to discriminatory to delete fee reference to
solicit comments on the proposed rule footnote 12, the Exchange proposes to footnote 12, append footnote 11 to fee
change from interested persons. append footnote 11 to fee code HA. Fee code HA, and modify footnote 11 as
code HA is appended to orders with a described above because each of these
Non-Displayed 7 instruction that add changes are designed to avoid investor
I. Self-Regulatory Organization’s
liquidity. New footnote 11 that was confusion and improve the Exchange’s
Statement of the Terms of Substance of
added as of July 6, 2015, provides Fee Schedule.
the Proposed Rule Change
additional information to readers of the
The Exchange filed a proposal to Fee Schedule regarding the application (B) Self-Regulatory Organization’s
amend its schedule of fees and rebates of the liquidity code to the Reserve Statement on Burden on Competition
applicable to Members 5 and non- Quantity 8 of orders as well as orders
Members of the Exchange pursuant to The Exchange does not believe that
with a Discretionary Range 9 instruction,
EDGX Rule 15.1(a) and (c) (‘‘Fee the proposed rule change will impose
making clear that pricing applicable to
Schedule’’) to correct a typographical added non-displayed liquidity does not any burden on competition. The
error on the Fee Schedule and to make apply to such orders. The Exchange proposed rule change corrects a
additional changes intended to improve proposes to also append this new typographical error recently introduced
the Fee Schedule. footnote to fee code HA, which also to the Fee Schedule and also provides
The text of the proposed rule change relates to orders with a Non-Displayed additional information to readers of the
is available at the Exchange’s Web site instruction. Fee Schedule by appending footnote 11
at www.batstrading.com, at the The Exchange also proposes to modify to fee code HA and modifying footnote
principal office of the Exchange, and at footnote 11, which, as noted above, was 11 as described above. The proposed
the Commission’s Public Reference recently added by the Exchange. The changes do not amend the amount or
Room. current footnote states that the ‘‘fee’’ for application of any fee or rebate.
II. Self-Regulatory Organization’s adding non-displayed liquidity does not
(C) Self-Regulatory Organization’s
Statement of the Purpose of, and apply to the Reserve Quantity of an
Statement on Comments on the
Statutory Basis for, the Proposed Rule order or an order with a Discretionary
Proposed Rule Change Received From
Change Range instruction. In this case, the
Exchange intended the term ‘‘fee’’ to Members, Participants or Others
In its filing with the Commission, the
mean ‘‘pricing.’’ However, to avoid The Exchange has not solicited, and
Exchange included statements
confusion, given that the current pricing does not intend to solicit, comments on
mstockstill on DSK4VPTVN1PROD with NOTICES

1 15 U.S.C. 78s(b)(1).
for adding non-displayed liquidity this proposed rule change. The
2 17 CFR 240.19b–4. yielding either fee code HA or HI is Exchange has not received any
3 15 U.S.C. 78s(b)(3)(A)(ii).
6 See Securities Exchange Act Release No. 75435
unsolicited written comments from
4 17 CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any (July 13, 2015) (SR–EDGX–2015–32). Members or other interested parties.
7 See Exchange Rule 11.6(e)(2).
registered broker or dealer that has been admitted
8 See Exchange Rule 11.6(m). 10 15 U.S.C. 78f.
to membership in the Exchange.’’ See Exchange
Rule 1.5(n). 9 See Exchange Rule 11.6(d). 11 15 U.S.C. 78f(b)(4).

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Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Notices 43807

III. Date of Effectiveness of the filing will also be available for II. Self-Regulatory Organization’s
Proposed Rule Change and Timing for inspection and copying at the principal Statement of the Purpose of, and
Commission Action office of the Exchange. All comments Statutory Basis for, the Proposed Rule
The foregoing rule change has become received will be posted without change; Change
effective pursuant to Section 19(b)(3)(A) the Commission does not edit personal In its filing with the Commission, the
of the Act 12 and paragraph (f) of Rule identifying information from self-regulatory organization included
19b–4 thereunder.13 At any time within submissions. You should submit only statements concerning the purpose of,
60 days of the filing of the proposed rule information that you wish to make and basis for, the proposed rule change
change, the Commission summarily may available publicly. All submissions and discussed any comments it received
temporarily suspend such rule change if should refer to File Number SR–EDGX– on the proposed rule change. The text
it appears to the Commission that such 2015–34 and should be submitted on or of these statements may be examined at
action is necessary or appropriate in the before August 13, 2015. the places specified in Item IV below.
public interest, for the protection of For the Commission, by the Division of The self-regulatory organization has
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated prepared summaries, set forth in
the purposes of the Act. authority.14 sections A, B and C below, of the most
IV. Solicitation of Comments Robert W. Errett, significant aspects of such statements.
Interested persons are invited to Deputy Secretary. A. Self-Regulatory Organization’s
submit written data, views, and [FR Doc. 2015–18035 Filed 7–22–15; 8:45 am] Statement of the Purpose of, and
arguments concerning the foregoing, BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
change is consistent with the Act. 1. Purpose
Comments may be submitted by any of SECURITIES AND EXCHANGE
the following methods: COMMISSION The Exchange currently has two pilot
programs related to its PIM (collectively,
Electronic Comments the ‘‘PIM Pilot Programs’’ or ‘‘Pilot
[Release No. 34–75482; File No. SR–ISE–
• Use the Commission’s Internet 2015–23]
Programs’’).3 The current Pilot Period
comment form (http://www.sec.gov/ provided in paragraphs .03 and .05 of
rules/sro.shtml); or Self-Regulatory Organizations; the Supplementary Material to Rule 723
• Send an email to rule- International Securities Exchange, is set to expire on July 17, 2015.4
comments@sec.gov. Please include File LLC; Notice of Filing and Immediate Paragraph .03 provides that there is no
Number SR–EDGX–2015–34 on the Effectiveness of Proposed Rule minimum size requirement for orders to
subject line. Change to Extend the Price be eligible for the Price Improvement
Improvement Mechanism Pilot Mechanism. Paragraph .05 concerns the
Paper Comments
Program termination of the exposure period by
• Send paper comments in triplicate unrelated orders. In accordance with the
to Brent J. Fields, Secretary, Securities July 17, 2015. Approval Order, the Exchange has
and Exchange Commission, 100 F Street continually submitted certain data in
NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
support of extending the current Pilot
Securities Exchange Act of 1934 (the
All submissions should refer to File Programs. The Exchange proposes to
‘‘Act’’),1 and Rule 19b–4 thereunder,2
Number SR–EDGX–2015–34. This file extend these Pilot Programs in their
notice is hereby given that on July 16,
number should be included on the present form, through July 18, 2016, to
subject line if email is used. To help the 2015, the International Securities
give the Exchange and the Commission
Commission process and review your Exchange, LLC (the ‘‘Exchange’’ or the
additional time to evaluate the effects of
comments more efficiently, please use ‘‘ISE’’) filed with the Securities and
these Pilot Programs before the
only one method. The Commission will Exchange Commission (‘‘Commission’’)
Exchange requests permanent approval
post all comments on the Commission’s the proposed rule change as described
of the rules. To aid the Commission in
Internet Web site (http://www.sec.gov/ in Items I and II below, which Items
its evaluation of the PIM Functionality,
rules/sro.shtml). Copies of the have been prepared by the self-
ISE represents that it will provide
submission, all subsequent regulatory organization. The
amendments, all written statements Commission is publishing this notice to 3 See Securities Exchange Act Release Nos. 50819

with respect to the proposed rule solicit comments on the proposed rule (December 8, 2004), 69 FR 75093 (December 15,
change that are filed with the change from interested persons. 2004) (SR–ISE–2003–06) (Approving the PIM pilot
(the ‘‘Approval Order’’)); 52027 (July 13, 2005), 70
Commission, and all written I. Self-Regulatory Organization’s FR 41804 (July 20, 2005) (SR–ISE–2005–30); 54146
communications relating to the Statement of the Terms of Substance of (July 14, 2006), 71 FR 41490 (July 21, 2006) (SR–
proposed rule change between the the Proposed Rule Change ISE–2006–39); 56106 (July 19, 2007), 72 FR 40914
Commission and any person, other than (July 25, 2007) (SR–ISE–2007–62); 56156 (July 27,
2007), 72 FR 43305 (August 3, 2007) (SR–ISE–2007–
those that may be withheld from the The ISE proposes to extend two pilot 66); 58197 (July 18, 2008), 73 FR 43810 (July 28,
public in accordance with the programs related to its Price 2008) (SR–ISE–2008–60); 60333 (July 17, 2009), 74
provisions of 5 U.S.C. 552, will be Improvement Mechanism (‘‘PIM’’). The FR 36792 (July 24, 2009) (SR–ISE–2009–52); 62513
available for Web site viewing and text of the proposed rule change is (July 16, 2010), 75 FR 43221 (July 23, 2010) (SR–
ISE–2010–75); 64931 (July 20, 2011), 76 FR 44642
mstockstill on DSK4VPTVN1PROD with NOTICES

printing in the Commission’s Public available on the Exchange’s Web site (July 26, 2011) (SR–ISE–2011–41); 67202 (June 14,
Reference Room, 100 F Street NE., www.ise.com, at the principal office of 2012), 77 FR 36589 (June 19, 2012) (SR–ISE–2012–
Washington, DC 20549, on official the Exchange, and at the Commission’s 54); 69853 (June 25, 2013), 78 FR 39390 (July 1,
business days between the hours of Public Reference Room. 2013) (SR–ISE–2013–41); and 72467 (June 25,
2014), 79 FR 37377 (July 1, 2014) (SR–ISE–2014–
10:00 a.m. and 3:00 p.m. Copies of the 33).
14 17 CFR 200.30–3(a)(12). 4 See Securities Exchange Act Release No. 34–
12 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 72467 (June 25, 2014), 79 FR 37377 (July 1, 2014)
13 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. (SR–ISE–2014–33).

VerDate Sep<11>2014 18:39 Jul 22, 2015 Jkt 235001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\23JYN1.SGM 23JYN1
Document Created: 2015-12-15 12:53:24
Document Modified: 2015-12-15 12:53:24
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 43806