80 FR 50053 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Operation of MidPoint Peg Orders Under Rule 11.8(d)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 159 (August 18, 2015)

Page Range		50053-50055
FR Document		2015-20282
Federal Register, Volume 80 Issue 159 (Tuesday, August 18, 2015)
[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Notices]
[Pages 50053-50055]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20282]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75685; File No. SR-EDGA-2015-30]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Operation of MidPoint Peg Orders Under Rule 11.8(d)

August 12, 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 August 7, 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 and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 the operation of MidPoint 
Peg Orders under Rule 11.8(d) when a Locking Quotation exists.\5\ The 
proposed amendment is based on the operation of Mid-Point Peg Orders on 
EDGX, Exchange, Inc. (``EDGX''), BATS Exchange, Inc. (``BZX'') and BATS 
Y-Exchange, Inc. (``BYX'').\6\ The Exchange has designated the proposed 
rule change as non-controversial and provided the Commission with the 
notice required by Rule 19b-4(f)(6)(iii) under the Act.\7\
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    \5\ The term ``Locking Quotation'' is defined as ``[t]he display 
of a bid for an NMS stock at a price that equals the price of an 
offer for such NMS stock previously disseminated pursuant to an 
effective national market system plan, or the display of an offer 
for an NMS stock at a price that equals the price of a bid for such 
NMS stock previously disseminated pursuant to an effective national 
market system plan in violation of Rule 610(d) of Regulation NMS.'' 
See Exchange Rule 11.6(g).
    \6\ See EDGX Rule 11.8(d)(6); BZX and BYX Rule 11.9(c)(9).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
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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
    In early 2014, the Exchange and its affiliate, EDGX, received 
approval to effect a merger (the ``Merger'') of the Exchange's parent 
company, Direct Edge Holdings LLC, with BATS Global Markets, Inc., the 
parent of BZX and BYX (together with BZX, EDGA and EDGX, the ``BGM 
Affiliated

[[Page 50054]]

Exchanges'').\8\ In order to provide consistent rules and system 
functionality amongst the BGM Affiliated Exchanges, the Exchange 
proposes to amend the operation of MidPoint Peg Orders under EDGA Rule 
11.8(d) when a Locking Quotation exists to align with the operation of 
Mid-Point Peg orders on EDGX, BZX and BYX.\9\
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    \8\ See Securities Exchange Act Release No. 71449 (January 30, 
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
    \9\ See EDGX Rule 11.8(d); BZX and BYX Rule 11.9(c)(9).
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    In sum, a MidPoint Peg Order is a non-displayed Market Order or 
Limit Order with an instruction to execute at the midpoint of the NBBO, 
or, alternatively, be pegged to the less aggressive of the midpoint of 
the NBBO or one minimum price variation inside the same side of the 
NBBO as the order.\10\ Currently, a MidPoint Peg Order is not eligible 
for execution when a Locking Quotation or Crossing Quotation \11\ 
exists. In such cases, a MidPoint Peg Order rests on the EDGX Book and 
is not be eligible for execution in the System until the Locking 
Quotation or Crossing Quotation is cleared.
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    \10\ See Exchange Rule 11.8(d) for a complete description of the 
MidPoint Peg Orders.
    \11\ The term ``Crossing Quotation'' is defined as ``[t]he 
display of a bid (offer) for an NMS stock at a price that is higher 
(lower) than the price of an offer (bid) for such NMS stock 
previously disseminated pursuant to an effective national market 
system plan in violation of Rule 610(d) of Regulation NMS.'' See 
Exchange Rule 11.6(c).
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    The Exchange now proposes to amend the operation of MidPoint Peg 
Orders to provide Users \12\ the ability to elect that their MidPoint 
Peg Orders be eligible for execution when a Locking Quotation exists. 
As amended, Rule 11.8(d)(6) would state that, unless otherwise 
instructed by the User, a MidPoint Peg Order would not be eligible for 
execution when a Locking Quotation exists. Where a User does not 
instruct the Exchange to execute its MidPoint Peg Order in such cases, 
the order would be treated as it is today, and would rest on the EDGA 
Book and not be eligible for execution until the Locking Quotation is 
cleared.\13\ Like the operation of MidPoint Peg Orders when a Crossing 
Quotation exists, once the Locking Quotation is cleared, a new midpoint 
of the NBBO is established, and the MidPoint Peg Order becomes eligible 
for execution receiving a new time stamp. In such case, pursuant to 
Exchange Rule 11.9, all MidPoint Peg Orders that are ranked at the 
midpoint of the NBBO will retain their priority as compared to each 
other based upon the time such orders were initially received by the 
System,\14\ including MidPoint Peg Order received when a Locking 
Quotation exists. This behavior is consistent with operation of Mid-
Point Peg orders under EDGX Rule 11.8(d)(6) and BYX and BZX Rules 
11.9(c)(9). The Exchange is not proposing to amend the operation of 
Midpoint Peg Orders when a Crossing Quotation exists.
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    \12\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
    \13\ Under Rule 11.8(d), a MidPoint Peg Order will receive a new 
time stamp when the Locking Quotation is cleared and a new midpoint 
of the NBBO is established.
    \14\ The term ``System'' is defined as ``the electronic 
communications and trading facility designated by the Board through 
which securities orders of Users are consolidated for ranking, 
execution and, when applicable, routing away.'' See Exchange Rule 
1.5(cc).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \15\ and furthers the objectives of 
Section 6(b)(5) of the Act \16\ because it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
to foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, and, in general, to protect 
investors and the public interest. The proposed rule change also is 
designed to support the principles of Section 11A(a)(1) \17\ of the Act 
in that it seeks to assure fair competition among brokers and dealers 
and among exchange markets.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ 15 U.S.C. 78k-1(a)(1).
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    The proposed rule change is intended to align the operation of 
MidPoint Peg Orders when a Locking Quotation exists with that of 
MidPoint Peg Orders under EDGX Rule 11.8(d) and BYX and BZX Rules 
11.9(c)(9) in order to provide a consistent functionality across the 
BGM Affiliated Exchanges. Consistent functionality between the 
exchanges will reduce complexity and streamline functionality, thereby 
resulting in simpler technology implementation, changes and maintenance 
by Users of the Exchange that are also participants on EDGX, BZX and 
BYX. The Exchange also believes the proposed rule change would provide 
Users with increased flexibility over their MidPoint Peg Orders when a 
Locking Quotation exists. For the reasons set forth above, the Exchange 
believes the proposal would promote just and equitable principles of 
trade, remove impediments to, and perfect the mechanism of, a free and 
open market and a national market system.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that the proposal will provide consistent functionality across 
the BGM Affiliated Exchanges, thereby reducing complexity and 
streamlining duplicative functionality, resulting in simpler technology 
implementation, changes and maintenance by Users of the Exchange that 
are also participants on EDGX, BZX and BYX. Thus, the Exchange believes 
this proposed rule change is necessary to permit fair competition among 
national securities exchanges. In addition, the Exchange believes the 
proposed rule change will benefit Exchange participants in that it is 
designed to achieve a consistent technology offering by the BGM 
Affiliated Exchanges.

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\18\
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    \18\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of the Exchange's intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the 
date of filing of the proposed rule change, or such shorter time as 
designated by the Commission. The Exchange has satisfied this 
requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act normally does not become operative for 30 days after the date of 
its filing. However, Rule 19b-4(f)(6)(iii) permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the

[[Page 50055]]

Commission to waive the 30-day operative delay so that the proposal may 
become operative immediately upon filing. Waiver of the 30-day 
operative delay would allow the Exchange to harmonize its rules across 
BGM Affiliated Exchanges in a timely manner, thereby simplifying the 
rules available to Members of the Exchange that are also participants 
on EDGX, BZX and BYX. Based on the foregoing, the Commission believes 
the waiver of the operative delay is consistent with the protection of 
investors and the public interest.\19\ The Commission hereby grants the 
waiver and designates the proposal operative upon filing.
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    \19\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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-2015-30 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-2015-30. 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-2015-30 and should be 
submitted on or before September 8, 2015.
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    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
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pursuant to delegated authority.\20\

Brent J. Fields,
Secretary.
[FR Doc. 2015-20282 Filed 8-17-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices 50053

POSTAL REGULATORY COMMISSION accessed via the Commission’s Web site I. Self-Regulatory Organization’s
(http://www.prc.gov). Statement of the Terms of Substance of
[Docket No. CP2015–124; Order No. 2659]
The Commission appoints Kenneth R. the Proposed Rule Change
New Postal Product Moeller to serve as Public
Representative in this docket. The Exchange filed a proposal to
AGENCY: Postal Regulatory Commission. amend the operation of MidPoint Peg
III. Ordering Paragraphs Orders under Rule 11.8(d) when a
ACTION: Notice.
It is ordered: Locking Quotation exists.5 The
SUMMARY: The Commission is noticing a 1. The Commission establishes Docket proposed amendment is based on the
recent Postal Service filing concerning No. CP2015–124 for consideration of the operation of Mid-Point Peg Orders on
an additional Global Expedited Package matters raised by the Postal Service’s EDGX, Exchange, Inc. (‘‘EDGX’’), BATS
Services 3 negotiated service agreement. Notice. Exchange, Inc. (‘‘BZX’’) and BATS Y-
This notice informs the public of the 2. Pursuant to 39 U.S.C. 505, Kenneth Exchange, Inc. (‘‘BYX’’).6 The Exchange
filing, invites public comment, and R. Moeller is appointed to serve as an has designated the proposed rule change
takes other administrative steps. officer of the Commission to represent as non-controversial and provided the
DATES: Comments are due: August 19, the interests of the general public in this Commission with the notice required by
2015. proceeding (Public Representative). Rule 19b–4(f)(6)(iii) under the Act.7
3. Comments are due no later than
ADDRESSES: Submit comments August 19, 2015. The text of the proposed rule change
electronically via the Commission’s 4. The Secretary shall arrange for is available at the Exchange’s Web site
Filing Online system at http:// publication of this order in the Federal at www.batstrading.com, at the
www.prc.gov. Those who cannot submit Register. principal office of the Exchange, and at
comments electronically should contact the Commission’s Public Reference
the person identified in the FOR FURTHER By the Commission.
Room.
INFORMATION CONTACT section by Ruth Ann Abrams,
telephone for advice on filing Acting Secretary. II. Self-Regulatory Organization’s
alternatives. [FR Doc. 2015–20247 Filed 8–17–15; 8:45 am] Statement of the Purpose of, and
BILLING CODE 7710–FW–P
Statutory Basis for, the Proposed Rule
FOR FURTHER INFORMATION CONTACT:
Change
David A. Trissell, General Counsel, at
202–789–6820. In its filing with the Commission, the
SUPPLEMENTARY INFORMATION: SECURITIES AND EXCHANGE Exchange included statements
Table of Contents COMMISSION concerning the purpose of and basis for
the proposed rule change and discussed
I. Introduction [Release No. 34–75685; File No. SR–EDGA– any comments it received on the
II. Notice of Commission Action 2015–30]
III. Ordering Paragraphs proposed rule change. The text of these
statements may be examined at the
I. Introduction Self-Regulatory Organizations; EDGA places specified in Item IV below. The
Exchange, Inc.; Notice of Filing and
On August 11, 2015, the Postal Exchange has prepared summaries, set
Immediate Effectiveness of a Proposed
Service filed notice that it has entered forth in Sections A, B, and C below, of
Rule Change To Amend the Operation
into an additional Global Expedited the most significant parts of such
of MidPoint Peg Orders Under Rule
Package Services 3 (GEPS 3) negotiated statements.
11.8(d)
service agreement (Agreement).1 (A) Self-Regulatory Organization’s
To support its Notice, the Postal August 12, 2015.
Statement of the Purpose of, and
Service filed a copy of the Agreement, Pursuant to Section 19(b)(1) of the Statutory Basis for, the Proposed Rule
a copy of the Governors’ Decision Securities Exchange Act of 1934 (the
Change
authorizing the product, a certification ‘‘Act’’),1 and Rule 19b–4 thereunder,2
of compliance with 39 U.S.C. 3633(a), notice is hereby given that on August 7, 1. Purpose
and an application for non-public 2015, EDGA Exchange, Inc. (the
treatment of certain materials. It also ‘‘Exchange’’ or ‘‘EDGA’’) filed with the In early 2014, the Exchange and its
filed supporting financial workpapers. Securities and Exchange Commission affiliate, EDGX, received approval to
(‘‘Commission’’) the proposed rule effect a merger (the ‘‘Merger’’) of the
II. Notice of Commission Action Exchange’s parent company, Direct Edge
change as described in Items I and II
The Commission establishes Docket below, which Items have been prepared Holdings LLC, with BATS Global
No. CP2015–124 for consideration of by the Exchange. The Exchange has Markets, Inc., the parent of BZX and
matters raised by the Notice. designated this proposal as a ‘‘non- BYX (together with BZX, EDGA and
The Commission invites comments on controversial’’ proposed rule change EDGX, the ‘‘BGM Affiliated
whether the Postal Service’s filing is pursuant to Section 19(b)(3)(A) of the
consistent with 39 U.S.C. 3632, 3633, or Act 3 and Rule 19b–4(f)(6)(iii) 5 The term ‘‘Locking Quotation’’ is defined as

3642, 39 CFR part 3015, and 39 CFR thereunder,4 which renders it effective ‘‘[t]he display of a bid for an NMS stock at a price
part 3020, subpart B. Comments are due that equals the price of an offer for such NMS stock
asabaliauskas on DSK5VPTVN1PROD with NOTICES

upon filing with the Commission. The previously disseminated pursuant to an effective
no later than August 19, 2015. The Commission is publishing this notice to national market system plan, or the display of an
public portions of the filing can be solicit comments on the proposed rule offer for an NMS stock at a price that equals the
change from interested persons. price of a bid for such NMS stock previously
1 Notice of United States Postal Service of Filing disseminated pursuant to an effective national
a Functionally Equivalent Global Expedited market system plan in violation of Rule 610(d) of
1 15 U.S.C. 78s(b)(1).
Package Services 3 Negotiated Service Agreement Regulation NMS.’’ See Exchange Rule 11.6(g).
2 17 CFR 240.19b–4. 6 See EDGX Rule 11.8(d)(6); BZX and BYX Rule
and Application for Non-Public Treatment of
3 15 U.S.C. 78s(b)(3)(A). 11.9(c)(9).
Materials Filed Under Seal, August 11, 2015
(Notice). 4 17 CFR 240.19b–4(f)(6)(iii). 7 17 CFR 240.19b–4(f)(6)(iii).

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50054 Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices

Exchanges’’).8 In order to provide time stamp. In such case, pursuant to mechanism of, a free and open market
consistent rules and system Exchange Rule 11.9, all MidPoint Peg and a national market system.
functionality amongst the BGM Orders that are ranked at the midpoint
(B) Self-Regulatory Organization’s
Affiliated Exchanges, the Exchange of the NBBO will retain their priority as
Statement on Burden on Competition
proposes to amend the operation of compared to each other based upon the
MidPoint Peg Orders under EDGA Rule time such orders were initially received The Exchange does not believe that
11.8(d) when a Locking Quotation exists by the System,14 including MidPoint the proposed rule change will result in
to align with the operation of Mid-Point Peg Order received when a Locking any burden on competition that is not
Peg orders on EDGX, BZX and BYX.9 Quotation exists. This behavior is necessary or appropriate in furtherance
In sum, a MidPoint Peg Order is a consistent with operation of Mid-Point of the purposes of the Act. The
non-displayed Market Order or Limit Peg orders under EDGX Rule 11.8(d)(6) Exchange notes that the proposal will
Order with an instruction to execute at and BYX and BZX Rules 11.9(c)(9). The provide consistent functionality across
the midpoint of the NBBO, or, Exchange is not proposing to amend the the BGM Affiliated Exchanges, thereby
alternatively, be pegged to the less operation of Midpoint Peg Orders when reducing complexity and streamlining
aggressive of the midpoint of the NBBO a Crossing Quotation exists. duplicative functionality, resulting in
or one minimum price variation inside simpler technology implementation,
2. Statutory Basis changes and maintenance by Users of
the same side of the NBBO as the
order.10 Currently, a MidPoint Peg The Exchange believes that the the Exchange that are also participants
Order is not eligible for execution when proposed rule change is consistent with on EDGX, BZX and BYX. Thus, the
a Locking Quotation or Crossing Section 6(b) of the Act 15 and furthers Exchange believes this proposed rule
Quotation 11 exists. In such cases, a the objectives of Section 6(b)(5) of the change is necessary to permit fair
MidPoint Peg Order rests on the EDGX Act 16 because it is designed to promote competition among national securities
Book and is not be eligible for execution just and equitable principles of trade, to exchanges. In addition, the Exchange
in the System until the Locking remove impediments to and perfect the believes the proposed rule change will
Quotation or Crossing Quotation is mechanism of a free and open market benefit Exchange participants in that it
cleared. and a national market system, to foster is designed to achieve a consistent
The Exchange now proposes to amend cooperation and coordination with technology offering by the BGM
the operation of MidPoint Peg Orders to persons engaged in facilitating Affiliated Exchanges.
provide Users 12 the ability to elect that transactions in securities, and, in (C) Self-Regulatory Organization’s
their MidPoint Peg Orders be eligible for general, to protect investors and the Statement on Comments on the
execution when a Locking Quotation public interest. The proposed rule Proposed Rule Change Received From
exists. As amended, Rule 11.8(d)(6) change also is designed to support the Members, Participants or Others
would state that, unless otherwise principles of Section 11A(a)(1) 17 of the
Act in that it seeks to assure fair The Exchange has neither solicited
instructed by the User, a MidPoint Peg nor received written comments on the
Order would not be eligible for competition among brokers and dealers
and among exchange markets. proposed rule change.
execution when a Locking Quotation
exists. Where a User does not instruct The proposed rule change is intended III. Date of Effectiveness of the
the Exchange to execute its MidPoint to align the operation of MidPoint Peg Proposed Rule Change and Timing for
Peg Order in such cases, the order Orders when a Locking Quotation exists Commission Action
would be treated as it is today, and with that of MidPoint Peg Orders under
Because the proposed rule change
would rest on the EDGA Book and not EDGX Rule 11.8(d) and BYX and BZX
does not (i) significantly affect the
be eligible for execution until the Rules 11.9(c)(9) in order to provide a
protection of investors or the public
Locking Quotation is cleared.13 Like the consistent functionality across the BGM
interest; (ii) impose any significant
Affiliated Exchanges. Consistent
operation of MidPoint Peg Orders when burden on competition; and (iii) become
functionality between the exchanges
a Crossing Quotation exists, once the operative for 30 days from the date on
will reduce complexity and streamline
Locking Quotation is cleared, a new which it was filed, or such shorter time
functionality, thereby resulting in
midpoint of the NBBO is established, as the Commission may designate, the
simpler technology implementation,
and the MidPoint Peg Order becomes proposed rule change has become
changes and maintenance by Users of effective pursuant to Section 19(b)(3)(A)
eligible for execution receiving a new
the Exchange that are also participants of the Act and Rule 19b–4(f)(6)
8 See Securities Exchange Act Release No. 71449 on EDGX, BZX and BYX. The Exchange thereunder.18
(January 30, 2014), 79 FR 6961 (February 5, 2014) also believes the proposed rule change A proposed rule change filed
(SR–EDGX–2013–43; SR–EDGA–2013–34). would provide Users with increased pursuant to Rule 19b–4(f)(6) under the
9 See EDGX Rule 11.8(d); BZX and BYX Rule
flexibility over their MidPoint Peg Act normally does not become operative
11.9(c)(9).
10 See Exchange Rule 11.8(d) for a complete
Orders when a Locking Quotation for 30 days after the date of its filing.
description of the MidPoint Peg Orders. exists. For the reasons set forth above, However, Rule 19b–4(f)(6)(iii) permits
11 The term ‘‘Crossing Quotation’’ is defined as the Exchange believes the proposal the Commission to designate a shorter
‘‘[t]he display of a bid (offer) for an NMS stock at would promote just and equitable time if such action is consistent with the
a price that is higher (lower) than the price of an principles of trade, remove
offer (bid) for such NMS stock previously protection of investors and the public
disseminated pursuant to an effective national
impediments to, and perfect the interest. The Exchange has asked the
asabaliauskas on DSK5VPTVN1PROD with NOTICES

market system plan in violation of Rule 610(d) of
14 The term ‘‘System’’ is defined as ‘‘the
Regulation NMS.’’ See Exchange Rule 11.6(c). 18 In addition, Rule 19b–4(f)(6)(iii) requires the
12 The term ‘‘User’’ is defined as ‘‘any Member or electronic communications and trading facility Exchange to give the Commission written notice of
Sponsored Participant who is authorized to obtain designated by the Board through which securities the Exchange’s intent to file the proposed rule
access to the System pursuant to Rule 11.3.’’ See orders of Users are consolidated for ranking, change, along with a brief description and text of
Exchange Rule 1.5(ee). execution and, when applicable, routing away.’’ See the proposed rule change, at least five business days
13 Under Rule 11.8(d), a MidPoint Peg Order will Exchange Rule 1.5(cc). prior to the date of filing of the proposed rule
15 15 U.S.C. 78f(b).
receive a new time stamp when the Locking change, or such shorter time as designated by the
16 15 U.S.C. 78f(b)(5).
Quotation is cleared and a new midpoint of the Commission. The Exchange has satisfied this
NBBO is established. 17 15 U.S.C. 78k–1(a)(1). requirement.

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Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices 50055

Commission to waive the 30-day amendments, all written statements SUMMARY: Summary of Application:
operative delay so that the proposal may with respect to the proposed rule Applicants request an order (‘‘Order’’)
become operative immediately upon change that are filed with the that permits: (a) Actively managed
filing. Waiver of the 30-day operative Commission, and all written series of certain open-end management
delay would allow the Exchange to communications relating to the investment companies to issue shares
harmonize its rules across BGM proposed rule change between the (‘‘Shares’’) redeemable in large
Affiliated Exchanges in a timely Commission and any person, other than aggregations only (‘‘Creation Units’’); (b)
manner, thereby simplifying the rules those that may be withheld from the secondary market transactions in Shares
available to Members of the Exchange public in accordance with the to occur at the next-determined net asset
that are also participants on EDGX, BZX provisions of 5 U.S.C. 552, will be value plus or minus a market-
and BYX. Based on the foregoing, the available for Web site viewing and determined premium or discount that
Commission believes the waiver of the printing in the Commission’s Public may vary during the trading day; (c)
operative delay is consistent with the Reference Room, 100 F Street NE., certain series to pay redemption
protection of investors and the public Washington, DC 20549, on official proceeds, under certain circumstances,
interest.19 The Commission hereby business days between the hours of more than seven days from the tender of
grants the waiver and designates the 10:00 a.m. and 3:00 p.m. Copies of the Shares for redemption; (d) certain
proposal operative upon filing. filing will also be available for affiliated persons of the series to deposit
At any time within 60 days of the inspection and copying at the principal securities into, and receive securities
filing of the proposed rule change, the office of the Exchange. All comments from, the series in connection with the
Commission summarily may received will be posted without change; purchase and redemption of Creation
temporarily suspend such rule change if the Commission does not edit personal Units; (e) certain registered management
it appears to the Commission that such identifying information from investment companies and unit
action is necessary or appropriate in the submissions. You should submit only investment trusts outside of the same
public interest, for the protection of information that you wish to make group of investment companies as the
investors, or otherwise in furtherance of available publicly. All submissions series to acquire Shares; and (f) certain
the purposes of the Act. If the should refer to File Number SR–EDGA– series to create and redeem Shares in
Commission takes such action, the 2015–30 and should be submitted on or kind in a master-feeder structure. The
Commission shall institute proceedings before September 8, 2015. Order would incorporate by reference
to determine whether the proposed rule terms and conditions of a previous order
should be approved or disapproved. For the Commission, by the Division of
granting the same relief sought by
Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.20 applicants, as that order may be
amended from time to time (‘‘Reference
Interested persons are invited to Brent J. Fields, Order’’).1
submit written data, views, and Secretary. DATES: Filing Date: The application was
arguments concerning the foregoing, [FR Doc. 2015–20282 Filed 8–17–15; 8:45 am] filed on June 26, 2015.
including whether the proposed rule BILLING CODE 8011–01–P Hearing or Notification of Hearing: An
change is consistent with the Act. order granting the requested relief will
Comments may be submitted by any of be issued unless the Commission orders
the following methods: SECURITIES AND EXCHANGE a hearing. Interested persons may
Electronic Comments COMMISSION request a hearing by writing to the
Commission’s Secretary and serving
• Use the Commission’s Internet [Investment Company Act Release No.
applicants with a copy of the request,
comment form (http://www.sec.gov/ 31746; 812–14496]
personally or by mail. Hearing requests
rules/sro.shtml); or should be received by the Commission
Principal ETMF Trust, et al.; Notice of
• Send an email to rule-comments@
Application by 5:30 p.m. on September 8, 2015, and
sec.gov. Please include File Number SR–
should be accompanied by proof of
EDGA–2015–30 on the subject line. August 11, 2015. service on applicants, in the form of an
Paper Comments AGENCY: Securities and Exchange affidavit or, for lawyers, a certificate of
Commission (‘‘Commission’’). service. Pursuant to rule 0–5 under the
• Send paper comments in triplicate
ACTION: Notice of an application for an Act, hearing requests should state the
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street order under section 6(c) of the nature of the writer’s interest, any facts
NE., Washington, DC 20549–1090. Investment Company Act of 1940 bearing upon the desirability of a
(‘‘Act’’) for an exemption from sections hearing on the matter, the reason for the
All submissions should refer to File
2(a)(32), 5(a)(1), 22(d) and 22(e) of the request, and the issues contested.
Number SR–EDGA–2015–30. This file
Act and rule 22c–1 under the Act, under Persons who wish to be notified of a
number should be included on the
sections 6(c) and 17(b) of the Act for an hearing may request notification by
subject line if email is used. To help the
exemption from sections 17(a)(1) and writing to the Commission’s Secretary.
Commission process and review your
(a)(2) of the Act, and under section ADDRESSES: The Commission: Brent J.
comments more efficiently, please use
12(d)(1)(J) of the Act for an exemption Fields, Secretary, U.S. Securities and
only one method. The Commission will
from sections 12(d)(1)(A) and (B) of the Exchange Commission, 100 F Street NE.,
post all comments on the Commission’s
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Act. Washington, DC 20549–1090.
Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the Applicants: Principal ETMF Trust,
Applicants: Principal ETMF Trust Principal Management Corporation, and
submission, all subsequent (the ‘‘Trust’’), Principal Management Principal Funds Distributor, Inc., c/o
Corporation (the ‘‘Manager’’), and Adam U. Shaikh, Esq., The Principal
19 For purposes only of waiving the 30-day
Principal Funds Distributor, Inc. (the
operative delay, the Commission has also
considered the proposed rule’s impact on ‘‘Distributor’’). 1 Eaton Vance Management, et al., Investment

efficiency, competition, and capital formation. See Company Act Rel. Nos. 31333 (Nov. 6, 2014)
15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12). (notice) and 31361 (Dec. 2, 2014) (order).

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Document Created: 2015-12-15 12:04:47
Document Modified: 2015-12-15 12:04:47
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 50053