80 FR 71850 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 221 (November 17, 2015)
Federal Register Volume 80, Issue 221 (November 17, 2015)
| Page Range | 71850-71851 | |
| FR Document | 2015-29221 |
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)] [Notices] [Pages 71850-71851] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29221] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76417; File No. SR-EDGA-2015-43] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees November 10, 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 November 2, 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, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend its fees and rebates applicable to Members \5\ and non-members of the Exchange pursuant to EDGA Rule 15.1(a) and (c) (``Fee Schedule''). --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer, or any person associated with a registered broker or dealer, that has been admitted to membership in the Exchange [sic]. 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.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- 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 increase the fee for orders yielding fee code D, which results from an order routed to the New York Stock Exchange (``NYSE'') or routed using the RDOT routing strategy. In securities priced at or above $1.00, the Exchange currently assesses a fee of $0.0027 per share for Members' orders that yield fee code D. The Exchange proposes to amend its Fee Schedule to increase this fee to $0.00275 per share. The proposed change would enable the Exchange to pass through the rate that BATS Trading, Inc. (``BATS Trading''), the Exchange's affiliated routing broker-dealer, is charged for routing orders to NYSE when it does not qualify for a volume tiered reduced fee. The proposed change is in response to NYSE's November 2015 fee change where NYSE increased the fee to remove liquidity via routable order types it charges its customers, from a fee of $0.0027 per share to a fee of $0.00275 per share.\6\ When BATS Trading routes to NYSE, it will now be charged a standard rate of $0.00275 per share. BATS Trading will pass through this rate to the Exchange and the Exchange, in turn, will pass through of a rate of $0.00275 per share to its Members. The proposed increase to the fee under fee code D would enable the Exchange to equitably allocate its costs among all Members utilizing fee code D. The Exchange proposes to implement this amendment to its Fee Schedule immediately. --------------------------------------------------------------------------- \6\ See NYSE Trader Update, Fee Changes Effective November 2, dated October 30, 2015, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Client_Notice_Fee_Change_11_2015.pdf. --------------------------------------------------------------------------- In addition to the change proposed above, the Exchange proposes to change certain references on the Fee Schedule in connection with the launch of the options exchange operated by the Exchange's affiliate, EDGX Exchange, Inc. (``EDGX Options''). First, the Exchange propose [sic] to modify references in the Unicast Access section under BATS Connect fees to refer to ``BZX Options'' instead of ``BATS Options''. Second, the Exchange proposes to add reference to EDGX Options in the list of Exchange affiliates to which such fees do not apply. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\7\ in general, and furthers the objectives of Section 6(b)(4),\8\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange believes that its proposal to increase the fee for Members' orders that yield fee code D from $0.0027 per share to $0.00275 per share represents an [[Page 71851]] equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities because the Exchange does not levy additional fees or offer additional rebates for orders that it routes to NYSE through BATS Trading. As of November 1, 2015 [sic], NYSE amended its fee to remove liquidity via routable order types it charges its customers, from a fee of $0.0027 per share to a fee of $0.00275 per share.\9\ Therefore, the Exchange believes that its proposal to pass through a fee of $0.00275 per share for orders that yield fee code D is equitable and reasonable because it accounts for the pricing changes on NYSE. In addition, the proposal allows the Exchange to continue to charge its Members a pass-through rate for orders that are routed to NYSE. Furthermore, the Exchange notes that routing through BATS Trading is voluntary. Lastly, the Exchange also believes that the proposed amendment is non-discriminatory because it applies uniformly to all Members. The Exchange also believes that the changes to add EDGX Options to the list of affiliates under Unicast Access and the re-naming of BATS Options as BZX Options is consistent with the Act. Such changes reflect and are in connection with the launch of EDGX Options but do not result in any material change to the Exchange's Fee Schedule or impose any new or different fee. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f. \8\ 15 U.S.C. 78f(b)(4). \9\ See supra note 6. --------------------------------------------------------------------------- (B) Self-Regulatory Organization's Statement on Burden on Competition These proposed rule changes do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that any of these changes represent a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal to pass through a fee of $0.00275 per share for Members' orders that yield fee code D would increase intermarket competition because it offers customers an alternative means to route to NYSE. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. (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 foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4 thereunder.\11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-EDGA-2015-43 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-2015-43. 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-2015-43 and should be submitted on or before December 8, 2015. --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-29221 Filed 11-16-15; 8:45 am] BILLING CODE 8011-01-P
![71850 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
number should be included on the (‘‘Commission’’) the proposed rule fee of $0.0027 per share for Members’
subject line if email is used. To help the change as described in Items I, II and III orders that yield fee code D. The
Commission process and review your below, which Items have been prepared Exchange proposes to amend its Fee
comments more efficiently, please use by the Exchange. The Exchange has Schedule to increase this fee to
only one method. The Commission will designated the proposed rule change as $0.00275 per share. The proposed
post all comments on the Commission’s one establishing or changing a member change would enable the Exchange to
Internet Web site (http://www.sec.gov/ due, fee, or other charge imposed by the pass through the rate that BATS
rules/sro.shtml). Exchange under Section 19(b)(3)(A)(ii) Trading, Inc. (‘‘BATS Trading’’), the
Copies of the submission, all of the Act 3 and Rule 19b–4(f)(2) Exchange’s affiliated routing broker-
subsequent amendments, all written thereunder,4 which renders the dealer, is charged for routing orders to
statements with respect to the proposed proposed rule change effective upon NYSE when it does not qualify for a
rule change that are filed with the filing with the Commission. The volume tiered reduced fee. The
Commission, and all written Commission is publishing this notice to proposed change is in response to
communications relating to the solicit comments on the proposed rule NYSE’s November 2015 fee change
proposed rule change between the change from interested persons. where NYSE increased the fee to remove
Commission and any person, other than liquidity via routable order types it
those that may be withheld from the I. Self-Regulatory Organization’s
charges its customers, from a fee of
public in accordance with the Statement of the Terms of Substance of
$0.0027 per share to a fee of $0.00275
provisions of 5 U.S.C. 552, will be the Proposed Rule Change
per share.6 When BATS Trading routes
available for Web site viewing and The Exchange filed a proposal to to NYSE, it will now be charged a
printing in the Commission’s Public amend its fees and rebates applicable to standard rate of $0.00275 per share.
Reference Room, 100 F Street NE., Members 5 and non-members of the BATS Trading will pass through this
Washington, DC 20549, on official Exchange pursuant to EDGA Rule rate to the Exchange and the Exchange,
business days between the hours of 15.1(a) and (c) (‘‘Fee Schedule’’). in turn, will pass through of a rate of
10:00 a.m. and 3:00 p.m. Copies of the The text of the proposed rule change $0.00275 per share to its Members. The
filing also will be available for is available at the Exchange’s Web site proposed increase to the fee under fee
inspection and copying at the principal at www.batstrading.com, at the code D would enable the Exchange to
office of the Exchange. All comments principal office of the Exchange, and at equitably allocate its costs among all
received will be posted without change; the Commission’s Public Reference Members utilizing fee code D. The
the Commission does not edit personal Room. Exchange proposes to implement this
identifying information from II. Self-Regulatory Organization’s amendment to its Fee Schedule
submissions. You should submit only Statement of the Purpose of, and immediately.
information that you wish to make Statutory Basis for, the Proposed Rule In addition to the change proposed
available publicly. Change above, the Exchange proposes to change
All submissions should refer to File certain references on the Fee Schedule
Number SR–BX–2015–066 and should In its filing with the Commission, the in connection with the launch of the
be submitted on or before December 8, Exchange included statements options exchange operated by the
2015. concerning the purpose of and basis for Exchange’s affiliate, EDGX Exchange,
the proposed rule change and discussed Inc. (‘‘EDGX Options’’). First, the
For the Commission, by the Division of
Trading and Markets, pursuant to delegated any comments it received on the Exchange propose [sic] to modify
authority.13 proposed rule change. The text of these references in the Unicast Access section
Robert W. Errett, statements may be examined at the under BATS Connect fees to refer to
Deputy Secretary. places specified in Item IV below. The ‘‘BZX Options’’ instead of ‘‘BATS
Exchange has prepared summaries, set Options’’. Second, the Exchange
[FR Doc. 2015–29225 Filed 11–16–15; 8:45 am]
forth in Sections A, B, and C below, of proposes to add reference to EDGX
BILLING CODE 8011–01–P
the most significant parts of such Options in the list of Exchange affiliates
statements. to which such fees do not apply.
SECURITIES AND EXCHANGE (A) Self-Regulatory Organization’s 2. Statutory Basis
COMMISSION Statement of the Purpose of, and The Exchange believes that the
[Release No. 34–76417; File No. SR–EDGA– Statutory Basis for, the Proposed Rule proposed rule change is consistent with
2015–43] Change the objectives of Section 6 of the Act,7
1. Purpose in general, and furthers the objectives of
Self-Regulatory Organizations; EDGA Section 6(b)(4),8 in particular, as it is
Exchange, Inc.; Notice of Filing and The Exchange proposes to increase
the fee for orders yielding fee code D, designed to provide for the equitable
Immediate Effectiveness of a Proposed allocation of reasonable dues, fees and
Rule Change Related to Fees which results from an order routed to
the New York Stock Exchange (‘‘NYSE’’) other charges among its Members and
November 10, 2015. or routed using the RDOT routing other persons using its facilities. The
Pursuant to Section 19(b)(1) of the strategy. In securities priced at or above Exchange believes that its proposal to
Securities Exchange Act of 1934 (the $1.00, the Exchange currently assesses a increase the fee for Members’ orders that
‘‘Act’’),1 and Rule 19b–4 thereunder,2 yield fee code D from $0.0027 per share
mstockstill on DSK4VPTVN1PROD with NOTICES
notice is hereby given that on November 3 15 U.S.C. 78s(b)(3)(A)(ii). to $0.00275 per share represents an
2, 2015, EDGA Exchange, Inc. (the 4 17 CFR 240.19b–4(f)(2).
6 See NYSE Trader Update, Fee Changes Effective
‘‘Exchange’’ or ‘‘EDGA’’) filed with the 5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer, or any person associated November 2, dated October 30, 2015, available at
Securities and Exchange Commission https://www.nyse.com/publicdocs/nyse/markets/
with a registered broker or dealer, that has been
admitted to membership in the Exchange [sic]. A nyse/NYSE_Client_Notice_Fee_Change_11_
13 17 CFR 200.30–3(a)(12). 2015.pdf.
Member will have the status of a ‘‘member’’ of the
1 15 U.S.C. 78s(b)(1). 7 15 U.S.C. 78f.
Exchange as that term is defined in Section 3(a)(3)
2 17 CFR 240.19b–4. of the Act.’’ See Exchange Rule 1.5(n). 8 15 U.S.C. 78f(b)(4).
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![Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices 71851
equitable allocation of reasonable dues, competition because the proposed rate change that are filed with the
fees, and other charges among Members would apply uniformly to all Members. Commission, and all written
and other persons using its facilities communications relating to the
(C) Self-Regulatory Organization’s
because the Exchange does not levy proposed rule change between the
Statement on Comments on the
additional fees or offer additional Commission and any person, other than
Proposed Rule Change Received From
rebates for orders that it routes to NYSE those that may be withheld from the
Members, Participants or Others
through BATS Trading. As of November public in accordance with the
1, 2015 [sic], NYSE amended its fee to The Exchange has not solicited, and provisions of 5 U.S.C. 552, will be
remove liquidity via routable order does not intend to solicit, comments on available for Web site viewing and
types it charges its customers, from a fee this proposed rule change. The printing in the Commission’s Public
of $0.0027 per share to a fee of $0.00275 Exchange has not received any Reference Room, 100 F Street NE.,
per share.9 Therefore, the Exchange unsolicited written comments from Washington, DC 20549, on official
believes that its proposal to pass Members or other interested parties. business days between the hours of
through a fee of $0.00275 per share for III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of the
orders that yield fee code D is equitable Proposed Rule Change and Timing for filing will also be available for
and reasonable because it accounts for Commission Action inspection and copying at the principal
the pricing changes on NYSE. In office of the Exchange. All comments
addition, the proposal allows the The foregoing rule change has become received will be posted without change;
Exchange to continue to charge its effective pursuant to Section 19(b)(3)(A) the Commission does not edit personal
Members a pass-through rate for orders of the Act 10 and paragraph (f) of Rule identifying information from
that are routed to NYSE. Furthermore, 19b–4 thereunder.11 At any time within submissions. You should submit only
the Exchange notes that routing through 60 days of the filing of the proposed rule information that you wish to make
BATS Trading is voluntary. Lastly, the change, the Commission summarily may available publicly. All submissions
Exchange also believes that the temporarily suspend such rule change if should refer to File Number SR–EDGA–
proposed amendment is non- it appears to the Commission that such 2015–43 and should be submitted on or
discriminatory because it applies action is necessary or appropriate in the before December 8, 2015.
uniformly to all Members. The public interest, for the protection of
investors, or otherwise in furtherance of For the Commission, by the Division of
Exchange also believes that the changes Trading and Markets, pursuant to delegated
to add EDGX Options to the list of the purposes of the Act. authority.12
affiliates under Unicast Access and the IV. Solicitation of Comments Robert W. Errett,
re-naming of BATS Options as BZX Deputy Secretary.
Options is consistent with the Act. Such Interested persons are invited to
changes reflect and are in connection submit written data, views, and [FR Doc. 2015–29221 Filed 11–16–15; 8:45 am]
with the launch of EDGX Options but do arguments concerning the foregoing, BILLING CODE 8011–01–P
not result in any material change to the including whether the proposed rule
Exchange’s Fee Schedule or impose any change is consistent with the Act.
Comments may be submitted by any of SECURITIES AND EXCHANGE
new or different fee. COMMISSION
the following methods:
(B) Self-Regulatory Organization’s
Statement on Burden on Competition Electronic Comments [Release No. 34–76427; File No. SR–
NYSEMKT–2015–76]
• Use the Commission’s Internet
These proposed rule changes do not comment form (http://www.sec.gov/
impose any burden on competition that Self-Regulatory Organizations; NYSE
rules/sro.shtml); or MKT LLC; Notice of Filing of Proposed
is not necessary or appropriate in • Send an email to rule-
furtherance of the purposes of the Act. Rule Change Constituting a Stated
comments@sec.gov. Please include File Interpretation With Respect to the
The Exchange does not believe that any Number SR–EDGA–2015–43 on the
of these changes represent a significant Meaning, Administration, and
subject line. Enforcement of Rule 28—Equities
departure from previous pricing offered
by the Exchange or pricing offered by Paper Comments
November 12, 2015.
the Exchange’s competitors. • Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the
Additionally, Members may opt to to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
disfavor the Exchange’s pricing if they and Exchange Commission, 100 F Street ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
believe that alternatives offer them NE., Washington, DC 20549–1090. notice is hereby given that, on October
better value. Accordingly, the Exchange All submissions should refer to File 28, 2015, NYSE MKT LLC (the
does not believe that the proposed Number SR–EDGA–2015–43. This file ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
changes will impair the ability of number should be included on the the Securities and Exchange
Members or competing venues to subject line if email is used. To help the Commission (the ‘‘Commission’’) the
maintain their competitive standing in Commission process and review your proposed rule change as described in
the financial markets. The Exchange comments more efficiently, please use Items I and II below, which Items have
believes that its proposal to pass only one method. The Commission will been prepared by the self-regulatory
through a fee of $0.00275 per share for post all comments on the Commission’s organization. The Commission is
Members’ orders that yield fee code D
mstockstill on DSK4VPTVN1PROD with NOTICES
Internet Web site (http://www.sec.gov/ publishing this notice to solicit
would increase intermarket competition rules/sro.shtml). Copies of the comments on the proposed rule change
because it offers customers an submission, all subsequent from interested persons.
alternative means to route to NYSE. The amendments, all written statements
Exchange believes that its proposal with respect to the proposed rule 12 17 CFR 200.30–3(a)(12).
would not burden intramarket 1 15 U.S.C. 78s(b)(1).
10 15 U.S.C. 78s(b)(3)(A). 2 15 U.S.C. 78a.
9 See supra note 6. 11 17 CFR 240.19b–4(f). 3 17 CFR 240.19b–4.
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Document Created: 2015-12-14 14:01:05
Document Modified: 2015-12-14 14:01:05
| 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 71850 |
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