80 FR 53206 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 13.4 Relating to the Reactivation of NSX

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 170 (September 2, 2015)

Page Range		53206-53207
FR Document		2015-21666
Federal Register, Volume 80 Issue 170 (Wednesday, September 2, 2015)
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Notices]
[Pages 53206-53207]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21666]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75772; File No. SR-EDGX-2015-39]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 13.4 Relating to the Reactivation of NSX

August 27, 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 18, 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 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 Rule 13.4(a) regarding the 
public disclosure of the sources of data that the Exchange utilizes 
when performing: (i) Order handling; (ii) order routing; and (iii) 
related compliance processes to reflect reactivation of the National 
Stock Exchange, Inc. (``NSX'') on or about August 31, 2015.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to update Rule 13.4(a) regarding the public 
disclosure of the sources of data that the Exchange utilizes when 
performing: (i) Order handling; (ii) order routing; and (iii) related 
compliance processes to reflect reactivation of the NSX on or about 
August 31, 2015. The NSX informed the UTP Securities Information 
Processor (``UTP SIP'') that, subject to regulatory approval, it is 
projecting to reactivate its status as an operating participant for 
quotation and trading of Nasdaq-listed securities under the Unlisted 
Trading Privileges (``UTP'') Plan on or about August 31, 2015. 
Specifically, the Exchange proposes to amend Rule 13.4(a) to include 
the NSX by stating it will utilize NSX market data from the CQS/UQDF 
for purposes of order handling, routing, and related compliance 
processes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with section 6(b) of the Act,\5\ in general, and furthers the 
objectives of section 6(b)(5) of the Act,\6\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to update Exchange Rule 
13.4(a) to include NSX would ensure that rule correctly identifies and 
publicly states on a market-by-market basis all of the specific network 
processor and proprietary data feeds that the Exchange utilizes for the 
handling, routing, and execution of orders, and for performing the 
regulatory compliance checks related to each of those functions. The 
proposed rule change also removes impediments to and perfects the 
mechanism of a free and open market and protects investors and the 
public interest because it provides additional specificity, clarity and 
transparency.

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

    The Exchange believes its proposed rule change would not impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. To the contrary, the Exchange 
believes the proposal would enhance competition because including all 
of the exchanges enhances transparency and enables investors to better 
assess the quality of the Exchange's execution and routing services.

(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 Exchange has designated this rule filing as non-controversial 
under section 19(b)(3)(A) of the Act \7\ and paragraph (f)(6) of Rule 
19b-4 thereunder.\8\ The proposed rule change effects a change that (A) 
does not significantly affect the protection of investors or the public 
interest; (B) does not impose any significant burden on competition; 
and (C) by its terms, does not become operative for 30 days after the 
date of the filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest; provided that the self-regulatory organization has given the 
Commission written notice of its intent to file the proposed rule 
change, along

[[Page 53207]]

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.\9\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4.
    \9\ The Exchange has fulfilled this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange believes 
that waiver of the 30-day operative delay would benefit investors 
because it would enable the Exchange to immediately enhance 
transparency and to accommodate the reactivation of the NSX on or about 
August 31, 2015 as an operating participant for quotation and trading 
of Nasdaq-listed securities under the UTP Plan. The Commission believes 
that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest because it will enable 
the Exchange's rules to accommodate the reactivation of the NSX and to 
identify, without delay, all of the specific network processor and 
proprietary data feeds that the Exchange utilizes for the handling, 
routing, and execution of orders, and for performing the regulatory 
compliance checks related to each of those functions. Therefore, the 
Commission hereby waives the 30-day operative delay and designates the 
proposed rule change to be operative upon filing with the 
Commission.\12\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ For purposes only of waiving the operative date of this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. 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 may summarily temporarily suspend such rule 
change if it appears to the Commission that such action is: (1) 
Necessary or appropriate in the public interest; (2) for the protection 
of investors; or (3) 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 proposal 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 No. SR-EDGX-2015-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-EDGX-2015-39. 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 such 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 No. SR-EDGX-2015-39 and should be 
submitted on or before September 23, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Robert W. Errett,
Deputy Secretary.
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    \13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-21666 Filed 9-1-15; 8:45 am]
 BILLING CODE 8011-01-P
53206 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices

https://osc.gov/Pages/Resources- II. Self-Regulatory Organization’s The Exchange believes that its
ReportsAndInfo.aspx. Statement of the Purpose of, and proposal to update Exchange Rule
Comments should be received no later Statutory Basis for, the Proposed Rule 13.4(a) to include NSX would ensure
than October 2, 2015. Change that rule correctly identifies and
Dated: August 26, 2015. publicly states on a market-by-market
In its filing with the Commission, the basis all of the specific network
Carolyn N. Lerner, Exchange included statements processor and proprietary data feeds
Special Counsel. concerning the purpose of and basis for that the Exchange utilizes for the
[FR Doc. 2015–21779 Filed 9–1–15; 8:45 am] the proposed rule change and discussed handling, routing, and execution of
BILLING CODE 7405–01–P any comments it received on the orders, and for performing the
proposed rule change. The text of these regulatory compliance checks related to
statements may be examined at the each of those functions. The proposed
SECURITIES AND EXCHANGE places specified in Item IV below. The rule change also removes impediments
COMMISSION Exchange has prepared summaries, set to and perfects the mechanism of a free
forth in sections A, B, and C below, of and open market and protects investors
[Release No. 34–75772; File No. SR–EDGX– the most significant parts of such
2015–39] and the public interest because it
statements. provides additional specificity, clarity
Self-Regulatory Organizations; EDGX (A) Self-Regulatory Organization’s and transparency.
Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and (B) Self-Regulatory Organization’s
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule Statement on Burden on Competition
Rule Change To Amend Rule 13.4 Change
Relating to the Reactivation of NSX The Exchange believes its proposed
1. Purpose rule change would not impose any
August 27, 2015. The Exchange proposes to update burden on competition that is not
Rule 13.4(a) regarding the public necessary or appropriate in furtherance
Pursuant to section 19(b)(1) of the of the purposes of the Act. To the
disclosure of the sources of data that the
Securities Exchange Act of 1934 (the contrary, the Exchange believes the
Exchange utilizes when performing: (i)
‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposal would enhance competition
Order handling; (ii) order routing; and
notice is hereby given that on August because including all of the exchanges
(iii) related compliance processes to
18, 2015, EDGX Exchange, Inc. (the enhances transparency and enables
reflect reactivation of the NSX on or
‘‘Exchange’’ or ‘‘EDGX’’) filed with the investors to better assess the quality of
about August 31, 2015. The NSX
Securities and Exchange Commission the Exchange’s execution and routing
informed the UTP Securities
(‘‘Commission’’) the proposed rule services.
Information Processor (‘‘UTP SIP’’) that,
change as described in Items I and II
subject to regulatory approval, it is (C) Self-Regulatory Organization’s
below, which Items have been prepared
projecting to reactivate its status as an Statement on Comments on the
by the Exchange. The Exchange has
operating participant for quotation and Proposed Rule Change Received From
designated this proposal as a ‘‘non-
trading of Nasdaq-listed securities under Members, Participants or Others
controversial’’ proposed rule change
the Unlisted Trading Privileges (‘‘UTP’’) The Exchange has not solicited, and
pursuant to section 19(b)(3)(A) of the
Plan on or about August 31, 2015. does not intend to solicit, comments on
Act 3 and Rule 19b–4(f)(6)(iii)
Specifically, the Exchange proposes to this proposed rule change. The
thereunder,4 which renders it effective
amend Rule 13.4(a) to include the NSX Exchange has not received any
upon filing with the Commission. The
by stating it will utilize NSX market unsolicited written comments from
Commission is publishing this notice to
data from the CQS/UQDF for purposes Members or other interested parties.
solicit comments on the proposed rule
of order handling, routing, and related
change from interested persons. III. Date of Effectiveness of the
compliance processes.
I. Self-Regulatory Organization’s Proposed Rule Change and Timing for
2. Statutory Basis Commission Action
Statement of the Terms of Substance of
the Proposed Rule Change The Exchange believes that the The Exchange has designated this rule
The Exchange filed a proposal to proposed rule change is consistent with filing as non-controversial under section
amend Rule 13.4(a) regarding the public section 6(b) of the Act,5 in general, and 19(b)(3)(A) of the Act 7 and paragraph
disclosure of the sources of data that the furthers the objectives of section 6(b)(5) (f)(6) of Rule 19b–4 thereunder.8 The
Exchange utilizes when performing: (i) of the Act,6 in particular, in that it is proposed rule change effects a change
Order handling; (ii) order routing; and designed to prevent fraudulent and that (A) does not significantly affect the
(iii) related compliance processes to manipulative acts and practices, to protection of investors or the public
reflect reactivation of the National Stock promote just and equitable principles of interest; (B) does not impose any
Exchange, Inc. (‘‘NSX’’) on or about trade, to foster cooperation and significant burden on competition; and
August 31, 2015. coordination with persons engaged in (C) by its terms, does not become
The text of the proposed rule change regulating, clearing, settling, processing operative for 30 days after the date of
is available at the Exchange’s Web site information with respect to, and the filing, or such shorter time as the
at www.batstrading.com, at the facilitating transactions in securities, to Commission may designate if consistent
mstockstill on DSK4VPTVN1PROD with NOTICES

principal office of the Exchange, and at remove impediments to and perfect the with the protection of investors and the
the Commission’s Public Reference mechanism of a free and open market public interest; provided that the self-
Room. and a national market system, and, in regulatory organization has given the
general, to protect investors and the Commission written notice of its intent
1 15 U.S.C. 78s(b)(1). public interest. to file the proposed rule change, along
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). 5 15 U.S.C. 78f. 7 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii). 6 15 U.S.C. 78f(b)(5). 8 17 CFR 240.19b–4.

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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices 53207

with a brief description and text of the including whether the proposal is SECURITIES AND EXCHANGE
proposed rule change, at least five consistent with the Act. Comments may COMMISSION
business days prior to the date of filing be submitted by any of the following
[Release No. 34–75769; File No. SR–BATS–
of the proposed rule change, or such methods: 2015–65]
shorter time as designated by the
Commission.9 Electronic Comments
Self-Regulatory Organizations; BATS
A proposed rule change filed under • Use the Commission’s Internet Exchange, Inc.; Notice of Filing and
Rule 19b–4(f)(6) 10 normally does not comment form (http://www.sec.gov/ Immediate Effectiveness of a Proposed
become operative prior to 30 days after rules/sro.shtml); or Rule Change To Amend Rule 11.26
the date of the filing. However, pursuant Relating to the Reactivation of NSX
to Rule 19b4(f)(6)(iii),11 the Commission • Send an email to rule-comments@
may designate a shorter time if such sec.gov. Please include File No. SR– August 27, 2015.
action is consistent with the protection EDGX–2015–39 on the subject line. Pursuant to Section 19(b)(1) of the
of investors and the public interest. The Paper Comments Securities Exchange Act of 1934 (the
Exchange has asked the Commission to ‘‘Act’’),1 and Rule 19b–4 thereunder,2
waive the 30-day operative delay so that • Send paper comments in triplicate notice is hereby given that on August
the proposal may become operative to Secretary, Securities and Exchange 18, 2015, BATS Exchange, Inc. (the
immediately upon filing. The Exchange Commission, 100 F Street NE., ‘‘Exchange’’ or ‘‘BATS’’) filed with the
believes that waiver of the 30-day Washington, DC 20549–1090. Securities and Exchange Commission
operative delay would benefit investors (‘‘Commission’’) the proposed rule
because it would enable the Exchange to All submissions should refer to File No.
change as described in Items I and II
immediately enhance transparency and SR–EDGX–2015–39. This file number
below, which Items have been prepared
to accommodate the reactivation of the should be included on the subject line
by the Exchange. The Exchange has
NSX on or about August 31, 2015 as an if email is used. To help the
designated this proposal as a ‘‘non-
operating participant for quotation and Commission process and review your
controversial’’ proposed rule change
trading of Nasdaq-listed securities under comments more efficiently, please use
pursuant to Section 19(b)(3)(A) of the
the UTP Plan. The Commission believes only one method. The Commission will
Act 3 and Rule 19b–4(f)(6)(iii)
that waiving the 30-day operative delay post all comments on the Commission’s
thereunder,4 which renders it effective
is consistent with the protection of Internet Web site (http://www.sec.gov/
upon filing with the Commission. The
investors and the public interest rules/sro.shtml). Copies of the
Commission is publishing this notice to
because it will enable the Exchange’s submission, all subsequent
solicit comments on the proposed rule
rules to accommodate the reactivation of amendments, all written statements
change from interested persons.
the NSX and to identify, without delay, with respect to the proposed rule
all of the specific network processor and change that are filed with the I. Self-Regulatory Organization’s
proprietary data feeds that the Exchange Commission, and all written Statement of the Terms of Substance of
utilizes for the handling, routing, and communications relating to the the Proposed Rule Change
execution of orders, and for performing proposed rule change between the The Exchange filed a proposal to
the regulatory compliance checks Commission and any person, other than amend Rule 11.26(a) regarding the
related to each of those functions. those that may be withheld from the public disclosure of the sources of data
Therefore, the Commission hereby public in accordance with the that the Exchange utilizes when
waives the 30-day operative delay and provisions of 5 U.S.C. 552, will be performing: (i) Order handling; (ii) order
designates the proposed rule change to available for Web site viewing and routing; and (iii) related compliance
be operative upon filing with the printing in the Commission’s Public processes to reflect reactivation of the
Commission.12 Reference Room, 100 F Street NE., National Stock Exchange, Inc. (‘‘NSX’’)
At any time within 60 days of the Washington, DC 20549, on official on or about August 31, 2015.
filing of the proposed rule change, the business days between the hours of The text of the proposed rule change
Commission may summarily 10:00 a.m. and 3:00 p.m. Copies of such is available at the Exchange’s Web site
temporarily suspend such rule change if filing will also be available for at www.batstrading.com, at the
it appears to the Commission that such inspection and copying at the principal principal office of the Exchange, and at
action is: (1) Necessary or appropriate in office of the Exchange. All comments the Commission’s Public Reference
the public interest; (2) for the protection received will be posted without change; Room.
of investors; or (3) otherwise in the Commission does not edit personal
furtherance of the purposes of the Act. identifying information from II. Self-Regulatory Organization’s
If the Commission takes such action, the submissions. You should submit only Statement of the Purpose of, and
Commission shall institute proceedings information that you wish to make Statutory Basis for, the Proposed Rule
to determine whether the proposed rule available publicly. All submissions Change
should be approved or disapproved. should refer to File No. SR–EDGX– In its filing with the Commission, the
2015–39 and should be submitted on or Exchange included statements
IV. Solicitation of Comments
before September 23, 2015. concerning the purpose of and basis for
Interested persons are invited to the proposed rule change and discussed
For the Commission, by the Division of
submit written data, views and any comments it received on the
Trading and Markets, pursuant to delegated
mstockstill on DSK4VPTVN1PROD with NOTICES

arguments concerning the foregoing, authority.13 proposed rule change. The text of these
9 The Robert W. Errett, statements may be examined at the
Exchange has fulfilled this requirement.
10 17 CFR 240.19b–4(f)(6). Deputy Secretary. places specified in Item IV below. The
11 17 CFR 240.19b–4(f)(6)(iii).
[FR Doc. 2015–21666 Filed 9–1–15; 8:45 am] 1 15
12 For purposes only of waiving the operative date U.S.C. 78s(b)(1).
BILLING CODE 8011–01–P 2 17 CFR 240.19b–4.
of this proposal, the Commission has considered
3 15 U.S.C. 78s(b)(3)(A).
the proposed rule’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6)(iii).

VerDate Sep<11>2014 19:04 Sep 01, 2015 Jkt 235001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\02SEN1.SGM 02SEN1
Document Created: 2018-02-26 10:10:39
Document Modified: 2018-02-26 10:10:39
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 53206