80 FR 54635 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rules 1.5(s), 11.1(a)(1), 11.6 and 11.8

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 175 (September 10, 2015)

Page Range		54635-54638
FR Document		2015-22747

Federal Register, Volume 80 Issue 175 (Thursday, September 10, 2015)

[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)]
[Notices]
[Pages 54635-54638]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-22747]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75835; File No. SR-EDGA-2015-36]

Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Amend Rules 1.5(s), 11.1(a)(1),
11.6 and 11.8

September 3, 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 September 3, 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
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.
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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 definition of Pre-
Opening Session under Rule 1.5(s) to state that the Pre-Opening Session
will start at 7:00 a.m. rather than 8:00 a.m. Eastern Time and Rule
11.1(a)(1) to account for the Pre-Opening Session starting at 7:00 a.m.
Eastern Time. The Exchange also proposes to amend: (i) Rule 11.6 to
adopt a new defined term, Effective Start Time, which would be an order
instruction enabling Members \3\ [sic] indicate a time upon which their
order may become eligible for execution; (ii) and Rule 11.8 to identify
which order types an Effective Start Time may be utilized with.
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\3\ The term ``Member'' is defined as ``any registered broker or
dealer that has been admitted to membership in the Exchange. A
Member will have the status of a `member' of the Exchange as that
term is defined in Section 3(a)(3) of the Act. Membership may be
granted to a sole proprietor, partnership, corporation, limited
liability company or other organization which is a registered broker
or dealer pursuant to Section 15 of the Act, and which has been
approved by 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 proposes to amend the definition of Pre-Opening
Session under Rule 1.5(s) to state that the Pre-Opening Session will
start at 7:00 a.m. rather than 8:00 a.m. Eastern Time and Rule
11.1(a)(1) to account for the Pre-Opening Session starting at 7:00 a.m.
Eastern Time. The Exchange also proposes to amend: (i) Rule 11.6 to
adopt a new defined term, Effective Start Time, which would be an order
instruction enabling Members indicate a time upon which their order may
become eligible for execution; (ii) and Rule 11.8 to identify which
order types an Effective Start Time may be utilized with.
Pre-Opening Session 7:00 a.m. Start
The Exchange trading day is currently divided into three sessions:
(i) The Pre-Opening Session which starts at 8:00 a.m. and ends at 9:30
a.m. Eastern Time; (ii) the Regular Session which runs from the
completion of the Opening Process or Continent Open as defined in Rule
11.7 and 4:00 p.m. Eastern Time; and (iii) the Post-Closing Session
which starts at 4:00 p.m. and ends at 8:00 p.m. Eastern Time. The
Exchange proposes to amend the definition of ``Pre-Opening Session''
under Rule 1.5(s) to state that the Pre-Opening Session will start at
7:00 a.m. rather than 8:00 a.m. Eastern Time.\4\
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\4\ The Exchange notes that NYSE Arca, Inc. (``NYSE Arca'')
operates an Opening Session that starts at 4:00 a.m. Eastern Time
(1:00 a.m. Pacific Time) and ends at 9:30 a.m. Eastern Time (6:30
a.m. Pacific Time). See NYSE Arca Rule 7.34(a)(1). The Nasdaq Stock
Market LLC (``Nasdaq'') operates a pre-market session that also
opens at 4:00 a.m. and ends at 9:30 a.m. Eastern Time. See Nasdaq
Rule 4701(g). See also Securities Exchange Act Release No. 69151
(March 15, 2013), 78 FR 17464 (March 21, 2013) (SR-Nasdaq-2013-033)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change to Extend the Pre-Market Hours of the Exchange to 4:00 a.m.
EST).
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The Exchange also proposes to amend Rule 11.1(a)(1) to account for
the Pre-Opening Session starting at 7:00 a.m. Eastern Time. Rule
11.1(a)(1) states that all orders are eligible for execution during the
Regular Session.\5\ Other than the proposal to change the start of the
Pre-Opening Session from 8:00 a.m. to 7:00 a.m. Eastern Time discussed
above, the Exchange does not propose to amend the substance or
operation of Rule 11.1(a)(1).
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\5\ ``Regular Session'' is defined as ``the time between the
completion of the Opening Process or Continent Open as defined in
Rule 11.7 and 4:00 p.m. Eastern Time.'' See Exchange Rule 1.5(hh).
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As amended, orders entered between 6:00 a.m. and 7:00 a.m. Eastern
Time, rather than 6:00 a.m. and 8:00 a.m. Eastern Time, would not
eligible for execution until the start of the Pre-Opening Session or
Regular Trading Hours,\6\ depending on the Time-in-Force (``TIF'') \7\
selected by the User.\8\ Rule 11.1(a)(1) will also be amended to state
that the Exchange will not accept the following orders prior to 7:00
a.m. Eastern Time, rather than 8:00 a.m.: orders with a Post Only \9\
instruction, Intermarket Sweep Orders (``ISOs''),\10\ Market Orders
\11\ with a TIF instruction other than Regular Hours Only,\12\ orders
with a Minimum Execution Quantity \13\ instruction that also include a
TIF instruction of Regular Hours Only, and all orders with a TIF
instruction of Immediate-or-Cancel (``IOC'') \14\ or Fill-

[[Page 54636]]

or-Kill (``FOK'').\15\ At the commencement of the Pre-Opening Session,
orders entered between 6:00 a.m. and 7:00 a.m. Eastern Time, rather
than 6:00 a.m. and 8:00 a.m. Eastern Time, will be handled in time
sequence, beginning with the order with the oldest time stamp, and will
be placed on the EDGA Book,\16\ routed, cancelled, or executed in
accordance with the terms of the order.
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\6\ ``Regular Trading Hours'' is defined as ``the time between
9:30 a.m. and 4:00 p.m. Eastern Time.'' See Exchange Rule 1.5(y).
\7\ The Times-In-Force instructions available on the Exchange
are set forth under Exchange Rule 11.6(q).
\8\ ``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).
\9\ See Exchange Rule 11.6(n)(4).
\10\ See Exchange Rule 11.8(c).
\11\ See Exchange Rule 11.8(a).
\12\ See Exchange Rule 11.6(q)(6).
\13\ See Exchange Rule 11.6(h).
\14\ See Exchange Rule 11.6(q)(1).
\15\ See Exchange Rule 11.6(q)(3).
\16\ See Exchange Rule 1.5(d).
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Operations. From the Members' operational perspective, the
Exchange's goal is to permit trading for those that choose to trade,
without imposing burdens on those that do not. Thus, for example, the
Exchange will not require any Member to participate in the extended
session, including not requiring registered market makers to make two-
sided markets between 7:00 a.m. and 8:00 a.m. The Exchange will
minimize Members' preparation efforts to the greatest extent possible
by allowing Members to trade beginning at 7:00 a.m. with the same
equipment, connectivity, order types, and data feeds they currently use
from 8:00 a.m. onwards.
Opening Process. The Exchange will offer no opening process at 7:00
a.m., just as it offers no opening process at 8:00 a.m. today. Instead,
at 7:00 a.m., the System will ``wake up'' by loading in price/time
priority all open trading interest entered after 6:00 a.m. Also at 7:00
a.m., the Exchange will open the execution system and accept new
eligible orders, just as it currently does at 8:00 a.m. Members will be
permitted to enter orders beginning at 6:00 a.m. Market Makers will be
permitted but not required to open their quotes beginning at 7:00 a.m.
in the same manner they open their quotes today beginning at 8:00 a.m.
Order Types. Every order type that is currently available beginning
at 8:00 a.m. will be available beginning at 7:00 a.m. All other order
types, and all order type behaviors, will otherwise remain unchanged.
The Exchange will not extend the expiration times of any orders. For
example, an order that is currently available from 8:00 a.m. to 4:00
p.m. will be modified to be available from 7:00 a.m. to 4:00 p.m. An
order that is available from 8:00 a.m. to 9:30 a.m. will be modified to
be available from 7:00 a.m. to 9:30 a.m.
Routing Services. The Exchange will route orders to away markets
between 7:00 a.m. and 8:00 a.m., just as it does today between 8:00
a.m. and 9:30 a.m. All routing strategies set forth in Exchange Rule
11.11 will remain otherwise unchanged, performing the same instructions
they perform between 7:00 a.m. and 8:00 a.m. today.
Order Processing. Order processing will operate beginning at 7:00
a.m. just as it does today beginning at 8:00 a.m. There will be no
changes to the ranking, display, and execution algorithms processes or
rules.
Data Feeds. The Exchange will report the best bid and offer on the
Exchange to the appropriate network processor, as it currently does
beginning 8:00 a.m. The Exchange's proprietary data feeds will be
disseminated beginning at 7:00 a.m. using the same formats and delivery
mechanisms with which the Exchange currently disseminates them
beginning at 8:00 a.m.
Trade Reporting. Trades executed between 7:00 a.m. and 8:00 a.m.
will be reported to the appropriate network processor with the ``.T''
modifier, just as they are reported today between at 8:00 a.m. and 9:30
a.m.
Fees. The Exchange is not changing any fees in connection with this
proposal.
Market Surveillance. The Exchange's commitment to high quality
regulation at all times will extend to 7:00 a.m. The Exchange will
offer all surveillance coverage currently performed by the Exchange's
surveillance systems, which will launch by the time trading starts at
7:00 a.m.
Clearly Erroneous Trade Processing. The Exchange will process trade
breaks beginning at 7:00 a.m. pursuant to Exchange Rule 11.13 just as
it does today beginning at 8:00 a.m.
Non-Substantive Changes. The Exchange also proposes two non-
substantive amendments to Rule 11.1(a)(1). First, the Exchange proposes
to capitalize the term ``Time-in-Force'' in the Rule's third sentence.
Second, the Exchange proposes to delete the word ``orders'' from after
Eastern Time in the Rule's fifth sentence. Neither of these changes
amend the meaning of Rule 11.1(a)(1).
Effective Start Time
The Exchange propose to amend Rule 11.6 to adopt a new defined
term, Effective Start Time, under which Members may indicate a time
upon which their order may become eligible for execution and Rule 11.8
to identify which order types an Effective Start Time may be utilized
with.
Effective Start Time would be defined under new paragraph (t) to
Rule 11.6 as an instruction a User may attach to an order to buy or
sell which indicates the time upon which the order is to become
eligible for execution. Like orders placed on the EDGA Book at the
start of the Pre-Opening Session under Rule 11.1(a)(1), at the
Effective Start Time, the order will be placed on the EDGA Book,
routed, cancelled, or executed in accordance with the terms of the
order. Once received, orders with an Effective Start Time are placed in
a suspended state and not placed on the EDGA Book until the Effective
Start Time selected by the User. Orders with an Effective Start Time
are treated like all other orders once placed on the EDGA Book and will
receive a time stamp at the time the order becomes eligible for
execution. Pursuant to Rule 11.9, orders entered with identical
Effective Start Times will retain their priority as compared to each
other based upon the time such orders were initially received by the
System.
The Exchange also proposes to amend Rule 11.8 to identify which
order types an Effective Start Time may be utilized with. In general, a
User may specify a time between 7:00 a.m. and 8:00 p.m. Eastern Time as
the order's Effective Start Time, subject to the trading sessions that
the particular order type is eligible for execution. The Effective
Start Time instruction will not be available for ISOs, Market Orders,
or orders with a TIF of IOC or FOK as the Exchange believes the
instruction is not consistent with the purposes of these order types
and order type instructions. This is also consistent with current Rule
11.1(a)(1), under which the Exchange does not accept the following
orders prior to the start of the Pre-Opening Session: orders with a
Post Only instruction, ISOs, Market Orders with a TIF instruction other
than Regular Hours Only, orders with a Minimum Execution Quantity
instruction that also include a TIF instruction of Regular Hours Only,
and all orders with a TIF instruction of IOC or FOK.
Effective Start Time will be available for the following order
types:
Limit Orders. Under Rule 11.8(b)(6), Effective Start Time
would be available for Limit Orders with a TIF instruction other than
IOC or FOK. Effective Start Time would not be available for orders with
a Post Only instruction or Minimum Execution Quantity. This is
consistent with current Rule 11.1(a)(1), under which the Exchange does
not accept the following orders with a Post Only instruction or Minimum
Execution Quantity.
MidPoint Peg Orders. Under Rule 11.8(d)(4) and like Limit
Orders described above, Effective Start Time would be available for
MidPoint Peg Orders with a TIF instruction other than IOC or FOK.
Effective Start Time would not be available for orders with a Post

[[Page 54637]]

Only instruction or Minimum Execution Quantity.
MidPoint Discretionary Orders (``MDO''). Under Rule
11.8(e)(3), MDOs may include an Effective Start Time. The Exchange
notes that Market MDOs are not permitted to include a TIF instruction
of IOC or FOK. They may only include a TIF instruction of Day, RHO,
GTX, or GTD.
Market Maker Peg Orders. Under Rule 11.8(f)(7), all Market
Maker Peg Orders may include an Effective Start Time. The Exchange
notes that Market Maker Peg Orders are not permitted to include a TIF
instruction of IOC or FOK. They may only include a TIF instruction of
Day, RHO or GTD. Market Maker Peg Orders are designed to assist Market
Makers \17\ in complying with their market making quoting obligations
under Exchange Rule 11.20. While Market Makers may select an Effective
Start Time after their quoting obligations begin, the Exchange
understands that Market Makers may utilizes other order types, such as
Limit Orders, to satisfy their quoting obligations prior to the
Effective Start Time. The Exchange will surveil for the use of an
Effective Start Time by Market Makers to ensure they continue to meet
their quoting obligations under the Exchange Rule 11.20.
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\17\ ``Market Maker'' is defined as ``a Member that acts as a
Market Maker pursuant to Chapter XI.'' EDGA Rule 1.5(l).
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Supplemental Peg Orders. Under Rule 11.8(g)(4), all Supplemental
Peg Orders may include an Effective Start Time. The Exchange notes that
Supplemental Peg Orders are not permitted to include a TIF instruction
of IOC or FOK. They may only include a TIF instruction of Day, RHO, GTD
or GTX. A Supplemental Peg Order with a Minimum Execution Quantity may
not also contain an Effective Start Time.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\18\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\19\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, and to remove
impediments to and perfect the mechanism of a free and open market and
a national market system.
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\18\ 15 U.S.C. 78f.
\19\ 15 U.S.C. 78f(b)(5).
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Pre-Opening Session 7:00 a.m. Start
The Exchange believes its proposal to amend Rule 1.5(s) to state
that the Pre-Opening Session will start at 7:00 a.m. rather than 8:00
a.m. Eastern Time and Rule 11.1(a)(1) to account for the Pre-Opening
Session starting at 7:00 a.m. Eastern Time promote just and equitable
principles of trade, and to remove impediments to and perfect the
mechanism of a free and open market and a national market system. The
Exchange believes that opening its system at 7:00 a.m. will benefit
investors, the national market system, Members and the Exchange market.
Opening at 7:00 a.m. will benefit investors and the national market
system by increasing competition for order flow and executions, and
thereby spurring product enhancements and lowering prices. Opening at
7:00 a.m. will benefit Members and the Exchange market by increasing
trading opportunities between 7:00 a.m. and 8:00 a.m. without
increasing ancillary trading costs (telecommunications, data,
connectivity, etc.) and, thereby, decreasing average trading costs per
share. Opening the Exchange at 7:00 a.m. will also benefit Members that
choose not to participate in the early hours but nonetheless gain the
opportunity to interact with liquidity entered by other members during
the early session.
The proposed rule change promotes just and equitable principles of
trade by offering additional trading opportunities to Members that
desire them, without imposing burdens on Members that do not. The
proposal will facilitate a well-regulated, orderly, and efficient
market during a period of time that is currently underserved. The
Exchange notes that the proposed trading period has been available on
NYSE Arca and Nasdaq.\20\ The Exchange believes that the availability
of trading between 7:00 a.m. and 8:00 a.m. has been beneficial to
market participants including investors and issuers on other markets.
The Exchange believes that offering a competing trading session will
further benefit investors by promoting competition and order
interaction, while imposing no added costs on investors or other market
participants that choose not avail themselves of these benefits.
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\20\ See supra note 4.
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Effective Start Time
The Exchange believes its proposed Effective Start Time instruction
also promotes just and equitable principles of trade, and removes
impediments to and perfects the mechanism of a free and open market and
a national market system. The Exchange believes that the proposed
Effective Start Time instruction will provide Users with greater
control over their orders by electing a specific time upon which their
order may become eligible for execution. The concept of selecting
conditions during which an order it [sic] to be eligible for execution
is not novel. The operation of the Effective Start Time instruction is
similar to functionality available on the Exchange and elsewhere that
permits members to elect when their orders are to become eligible for
executions. Specifically, on the Exchange, a User may elect a Stop
Price or Stop Limit Price on a buy (sell) Market Order or Limit Order
indicating that the order become eligible for execution when the
consolidated last sale (purchase) in a security occurs at or above
(below) a specified Stop Price.\21\ In addition, a User may elect the
trading session(s) during which their order would be eligible for
execution. In such case, the User may enter an order during the Pre-
Opening Session and select that such order not be eligible for
execution until 9:30 a.m., the start of Regular Trading Hours.
Conversely, Members also maintain the ability to elect when their order
should expire or be cancelled. For example, a User may elect a TIF
instruction of Day, GTD, or GTX, all which state that the order
cancelled if not executed by a certain time.\22\ Lastly, similar
functionality is currently available on NYSE Arca.\23\
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\21\ See Exchange Rules 11.8(a)(1) and (b)(1). See also New York
Stock Exchange, Inc. (``NYSE'') Rule 13(e)(7).
\22\ See Exchange Rules 11.6(q)(2), (4), and (5). See also
Nasdaq Rule 4703(a), and NYSE Rule 13(b).
\23\ NYSE Arca permits the selection of an Effective Time (Tag
168), like the Exchange proposes herein, and Expire Time (Tag 126).
See NYSE Arca FIX Specifications, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/FIX_Specification_and_API.pdf (dated
June 8, 2015).
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The Exchange believes it has appropriately limited the availability
of the Effective Start Time instruction to exclude its use with order
types and order instructions that it may be deemed inconsistent with.
Specifically, the Effective Time instruction is not available for ISOs
and the use of such an instruction may be considered inconsistent with
a Member's responsibility to comply with the requirements of Regulation
NMS relating to ISOs. In addition, the Effective Start Time instruction
is not available for Market Orders or orders with a TIF instruction of
IOC or FOK as well as orders with Post Only instruction or Minimum
Execution Quantity. Market Orders and orders with a TIF instruction of
IOC and FOK are immediately executable once placed on the EDGA Book.
Permitting the use of an Effective Start time with such orders appears
inconsistent as a User

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will not know at the time of order entry what the market for such a
security would be at the selected Effective Start Time.

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. The Exchange believes the
proposal to start the Pre-Opening Session at 7:00 a.m. Eastern Time
would enhance competition by enabling the Exchange to directly compete
with NYSE Arca and Nasdaq for order flow and executions starting at
7:00 a.m., rather than 8:00 a.m. In addition, the proposed Effective
Start Time instruction will enable the Exchange to provide similar
functionality as NYSE Arca. The fact that the extending the Pre-Opening
Session and Effective Start Time are themselves a response to the
competition provided by other markets is evidence of its pro-
competitive nature.

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

Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be 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-EDGA-2015-36 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-EDGA-2015-36. 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-EDGA-2015-36 and should be
submitted on or before October 1, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-22747 Filed 9-9-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 175 / Thursday, September 10, 2015 / Notices 54635

in writing within 60 days of this indicate a time upon which their order starts at 4:00 p.m. and ends at 8:00 p.m.
publication. may become eligible for execution; (ii) Eastern Time. The Exchange proposes to
An agency may not conduct or and Rule 11.8 to identify which order amend the definition of ‘‘Pre-Opening
sponsor, and a person is not required to types an Effective Start Time may be Session’’ under Rule 1.5(s) to state that
respond to, a collection of information utilized with. the Pre-Opening Session will start at
unless it displays a currently valid The text of the proposed rule change 7:00 a.m. rather than 8:00 a.m. Eastern
control number. is available at the Exchange’s Web site Time.4
Please direct your written comment to at www.batstrading.com, at the The Exchange also proposes to amend
Pamela Dyson, Director/Chief principal office of the Exchange, and at Rule 11.1(a)(1) to account for the Pre-
Information Officer, Securities and the Commission’s Public Reference Opening Session starting at 7:00 a.m.
Exchange Commission, c/o Remi Pavlik- Room. Eastern Time. Rule 11.1(a)(1) states that
Simon, 100 F Street NE., Washington, all orders are eligible for execution
II. Self-Regulatory Organization’s
DC 20549 or send an email to: PRA_ during the Regular Session.5 Other than
Statement of the Purpose of, and
Mailbox@sec.gov. the proposal to change the start of the
Statutory Basis for, the Proposed Rule
Pre-Opening Session from 8:00 a.m. to
Dated: September 3, 2015. Change
7:00 a.m. Eastern Time discussed above,
Robert W. Errett, In its filing with the Commission, the the Exchange does not propose to
Deputy Secretary. Exchange included statements amend the substance or operation of
[FR Doc. 2015–22750 Filed 9–9–15; 8:45 am] concerning the purpose of and basis for Rule 11.1(a)(1).
BILLING CODE 8011–01–P the proposed rule change and discussed As amended, orders entered between
any comments it received on the 6:00 a.m. and 7:00 a.m. Eastern Time,
proposed rule change. The text of these rather than 6:00 a.m. and 8:00 a.m.
SECURITIES AND EXCHANGE statements may be examined at the Eastern Time, would not eligible for
COMMISSION places specified in Item IV below. The execution until the start of the Pre-
[Release No. 34–75835; File No. SR–EDGA– Exchange has prepared summaries, set Opening Session or Regular Trading
2015–36] forth in Sections A, B, and C below, of Hours,6 depending on the Time-in-Force
the most significant parts of such (‘‘TIF’’) 7 selected by the User.8 Rule
Self-Regulatory Organizations; EDGA statements. 11.1(a)(1) will also be amended to state
Exchange, Inc.; Notice of Filing of a A. Self-Regulatory Organization’s that the Exchange will not accept the
Proposed Rule Change To Amend Statement of the Purpose of, and following orders prior to 7:00 a.m.
Rules 1.5(s), 11.1(a)(1), 11.6 and 11.8 Statutory Basis for, the Proposed Rule Eastern Time, rather than 8:00 a.m.:
Change orders with a Post Only 9 instruction,
September 3, 2015.
Intermarket Sweep Orders (‘‘ISOs’’),10
Pursuant to Section 19(b)(1) of the 1. Purpose Market Orders 11 with a TIF instruction
Securities Exchange Act of 1934 (the other than Regular Hours Only,12 orders
The Exchange proposes to amend the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 with a Minimum Execution Quantity 13
definition of Pre-Opening Session under
notice is hereby given that on instruction that also include a TIF
Rule 1.5(s) to state that the Pre-Opening
September 3, 2015, EDGA Exchange, instruction of Regular Hours Only, and
Session will start at 7:00 a.m. rather
Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) filed all orders with a TIF instruction of
than 8:00 a.m. Eastern Time and Rule
with the Securities and Exchange 11.1(a)(1) to account for the Pre- Immediate-or-Cancel (‘‘IOC’’) 14 or Fill-
Commission (‘‘Commission’’) the Opening Session starting at 7:00 a.m.
proposed rule change as described in Eastern Time. The Exchange also 4 The Exchange notes that NYSE Arca, Inc.
Items I and II below, which Items have proposes to amend: (i) Rule 11.6 to (‘‘NYSE Arca’’) operates an Opening Session that
been prepared by the Exchange. The adopt a new defined term, Effective
starts at 4:00 a.m. Eastern Time (1:00 a.m. Pacific
Commission is publishing this notice to Time) and ends at 9:30 a.m. Eastern Time (6:30 a.m.
Start Time, which would be an order Pacific Time). See NYSE Arca Rule 7.34(a)(1). The
solicit comments on the proposed rule instruction enabling Members indicate a Nasdaq Stock Market LLC (‘‘Nasdaq’’) operates a
change from interested persons. time upon which their order may pre-market session that also opens at 4:00 a.m. and
ends at 9:30 a.m. Eastern Time. See Nasdaq Rule
I. Self-Regulatory Organization’s become eligible for execution; (ii) and 4701(g). See also Securities Exchange Act Release
Statement of the Terms of Substance of Rule 11.8 to identify which order types No. 69151 (March 15, 2013), 78 FR 17464 (March
the Proposed Rule Change an Effective Start Time may be utilized 21, 2013) (SR-Nasdaq-2013–033) (Notice of Filing
with. and Immediate Effectiveness of Proposed Rule
The Exchange filed a proposal to Change to Extend the Pre-Market Hours of the
amend the definition of Pre-Opening Pre-Opening Session 7:00 a.m. Start Exchange to 4:00 a.m. EST).
5 ‘‘Regular Session’’ is defined as ‘‘the time
Session under Rule 1.5(s) to state that The Exchange trading day is currently between the completion of the Opening Process or
the Pre-Opening Session will start at divided into three sessions: (i) The Pre- Continent Open as defined in Rule 11.7 and 4:00
7:00 a.m. rather than 8:00 a.m. Eastern Opening Session which starts at 8:00 p.m. Eastern Time.’’ See Exchange Rule 1.5(hh).
Time and Rule 11.1(a)(1) to account for a.m. and ends at 9:30 a.m. Eastern Time; 6 ‘‘Regular Trading Hours’’ is defined as ‘‘the time

the Pre-Opening Session starting at 7:00 (ii) the Regular Session which runs from
between 9:30 a.m. and 4:00 p.m. Eastern Time.’’ See
a.m. Eastern Time. The Exchange also Exchange Rule 1.5(y).
the completion of the Opening Process 7 The Times-In-Force instructions available on the
proposes to amend: (i) Rule 11.6 to or Continent Open as defined in Rule Exchange are set forth under Exchange Rule 11.6(q).
adopt a new defined term, Effective 11.7 and 4:00 p.m. Eastern Time; and 8 ‘‘User’’ is defined as ‘‘any Member or Sponsored
Start Time, which would be an order
mstockstill on DSK4VPTVN1PROD with NOTICES

(iii) the Post-Closing Session which Participant who is authorized to obtain access to the
instruction enabling Members 3 [sic] System pursuant to Rule 11.3.’’ See Exchange Rule
1.5(ee).
that term is defined in Section 3(a)(3) of the Act. 9 See Exchange Rule 11.6(n)(4).
1 15 U.S.C. 78s(b)(1). Membership may be granted to a sole proprietor, 10 See Exchange Rule 11.8(c).
2 17 CFR 240.19b–4.
partnership, corporation, limited liability company 11 See Exchange Rule 11.8(a).
3 The term ‘‘Member’’ is defined as ‘‘any or other organization which is a registered broker
12 See Exchange Rule 11.6(q)(6).
registered broker or dealer that has been admitted or dealer pursuant to Section 15 of the Act, and
13 See Exchange Rule 11.6(h).
to membership in the Exchange. A Member will which has been approved by the Exchange.’’ See
have the status of a ‘member’ of the Exchange as Exchange Rule 1.5(n). 14 See Exchange Rule 11.6(q)(1).

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54638 Federal Register / Vol. 80, No. 175 / Thursday, September 10, 2015 / Notices

will not know at the time of order entry Electronic Comments SECURITIES AND EXCHANGE
what the market for such a security COMMISSION
would be at the selected Effective Start • Use the Commission’s Internet
Time. comment form (http://www.sec.gov/ [Release No. 34–75824; File No. SR–EDGX–
rules/sro.shtml); or 2015–40]
B. Self-Regulatory Organization’s
• Send an email to rule-comments@ Self-Regulatory Organizations; EDGX
Statement on Burden on Competition
sec.gov. Please include File No. SR– Exchange, Inc.; Notice of Filing and
The Exchange believes its proposed EDGA–2015–36 on the subject line. Immediate Effectiveness of a Proposed
rule change would not impose any Paper Comments Rule Change To Amend Rule 11.21(d),
burden on competition that is not Relating to the Routing of Retail
necessary or appropriate in furtherance • Send paper comments in triplicate Orders
of the purposes of the Act. The to Secretary, Securities and Exchange
September 3, 2015.
Exchange believes the proposal to start Commission, 100 F Street NE.,
the Pre-Opening Session at 7:00 a.m. Pursuant to Section 19(b)(1) of the
Washington, DC 20549–1090.
Eastern Time would enhance Securities Exchange Act of 1934 (the
competition by enabling the Exchange All submissions should refer to File No. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
SR–EDGA–2015–36. This file number notice is hereby given that on August
to directly compete with NYSE Arca
should be included on the subject line 31, 2015, EDGX Exchange, Inc. (the
and Nasdaq for order flow and
if email is used. To help the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
executions starting at 7:00 a.m., rather
Commission process and review your Securities and Exchange Commission
than 8:00 a.m. In addition, the proposed
comments more efficiently, please use (‘‘Commission’’) the proposed rule
Effective Start Time instruction will
only one method. The Commission will change as described in Items I and II
enable the Exchange to provide similar below, which Items have been prepared
functionality as NYSE Arca. The fact post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ by the Exchange. The Exchange has
that the extending the Pre-Opening designated this proposal as a ‘‘non-
Session and Effective Start Time are rules/sro.shtml). Copies of the
submission, all subsequent controversial’’ proposed rule change
themselves a response to the pursuant to Section 19(b)(3)(A) of the
competition provided by other markets amendments, all written statements
Act 3 and Rule 19b–4(f)(6)(iii)
is evidence of its pro-competitive with respect to the proposed rule
thereunder,4 which renders it effective
nature. change that are filed with the upon filing with the Commission. The
Commission, and all written Commission is publishing this notice to
C. Self-Regulatory Organization’s communications relating to the
Statement on Comments on the solicit comments on the proposed rule
proposed rule change between the change from interested persons.
Proposed Rule Change Received From Commission and any person, other than
Members, Participants, or Others those that may be withheld from the I. Self-Regulatory Organization’s
public in accordance with the Statement of the Terms of Substance of
The Exchange has not solicited, and the Proposed Rule Change
does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be
this proposed rule change. The available for Web site viewing and The Exchange filed a proposal to
Exchange has not received any printing in the Commission’s Public amend Rule 11.21(d) to state that unless
unsolicited written comments from Reference Room, 100 F Street NE., otherwise instructed by the Member,5 a
Members or other interested parties. Washington, DC 20549, on official Retail Order 6 will be identified as Retail
business days between the hours of when routed to an away Trading Center,
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such including an exchange that operates a
Proposed Rule Change and Timing for filing will also be available for retail liquidity program.
Commission Action inspection and copying at the principal The text of the proposed rule change
office of the Exchange. All comments is available at the Exchange’s Web site
Within 45 days of the date of at www.batstrading.com, at the
publication of this notice in the Federal received will be posted without change;
the Commission does not edit personal principal office of the Exchange, and at
Register or within such longer period (i)
as the Commission may designate up to identifying information from
1 15 U.S.C. 78s(b)(1).
90 days of such date if it finds such submissions. You should submit only 2 17 CFR 240.19b–4.
longer period to be appropriate and information that you wish to make 3 15 U.S.C. 78s(b)(3)(A).

publishes its reasons for so finding or available publicly. All submissions 4 17 CFR 240.19b–4(f)(6)(iii).

(ii) as to which the Exchange consents, should refer to File No. SR–EDGA– 5 The term ‘‘Member’’ is defined as ‘‘any

the Commission will: (a) By order 2015–36 and should be submitted on or registered broker or dealer that has been admitted
to membership in the Exchange. A Member will
approve or disapprove such proposed before October 1, 2015. have the status of a ‘‘member’’ of the Exchange as
rule change, or (b) institute proceedings For the Commission, by the Division of that term is defined in Section 3(a)(3) of the Act.
to determine whether the proposed rule Trading and Markets, pursuant to delegated Membership may be granted to a sole proprietor,
change should be disapproved. partnership, corporation, limited liability company
authority.24 or other organization which is a registered broker
IV. Solicitation of Comments Robert W. Errett, or dealer pursuant to Section 15 of the Act, and
which has been approved by the Exchange.’’ See
mstockstill on DSK4VPTVN1PROD with NOTICES

Deputy Secretary. Exchange Rule 1.5(n).
Interested persons are invited to [FR Doc. 2015–22747 Filed 9–9–15; 8:45 am] 6 The term ‘‘Retail Order’’ ‘‘(i) is an agency order
submit written data, views and or riskless principal order that meets the criteria of
BILLING CODE 8011–01–P
arguments concerning the foregoing, FINRA Rule 5320.03 that originates from a natural
including whether the proposal is person; (ii) is submitted to EDGX by a Member,
provided that no change is made to the terms of the
consistent with the Act. Comments may order; and (iii) does not originate from a trading
be submitted by any of the following algorithm or any other computerized methodology.’’
methods: 24 17 CFR 200.30–3(a)(12). See Exchange Rule 11.21(a).

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Document Created: 2015-12-15 10:04:11
Document Modified: 2015-12-15 10:04:11

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 54635