80 FR 71862 - Self-Regulatory Organizations; EDGX 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 | 71862-71863 | |
| FR Document | 2015-29229 |
[Federal Register Volume 80, Number 221 (Tuesday, November 17, 2015)] [Notices] [Pages 71862-71863] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29229] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76423; File No. SR-EDGX-2015-55] Self-Regulatory Organizations; EDGX 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, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \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 the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to EDGX Rules 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. 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 [[Page 71863]] 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 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-EDGX-2015-55 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-EDGX-2015-55. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-EDGX-2015-55 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. 2015-29229 Filed 11-16-15; 8:45 am] BILLING CODE 8011-01-P
![71862 Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices
• Send an email to rule- SECURITIES AND EXCHANGE proposed rule change. The text of these
comments@sec.gov. Please include File COMMISSION statements may be examined at the
Number SR–MSRB–2015–03 on the places specified in Item IV below. The
[Release No. 34–76423; File No. SR–EDGX– Exchange has prepared summaries, set
subject line.
2015–55] forth in Sections A, B, and C below, of
Paper Comments the most significant parts of such
Self-Regulatory Organizations; EDGX
statements.
• Send paper comments in triplicate Exchange, Inc.; Notice of Filing and
to Secretary, Securities and Exchange Immediate Effectiveness of a Proposed (A) Self-Regulatory Organization’s
Commission, 100 F Street NE., Rule Change Related to Fees Statement of the Purpose of, and
Washington, DC 20549. Statutory Basis for, the Proposed Rule
November 10, 2015. Change
All submissions should refer to File Pursuant to Section 19(b)(1) of the
Number SR–MSRB–2015–03. This file Securities Exchange Act of 1934 (the 1. Purpose
number should be included on the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange proposes to increase
subject line if email is used. To help the notice is hereby given that on November the fee for orders yielding fee code D,
Commission process and review your 2, 2015, EDGX Exchange, Inc. (the which results from an order routed to
comments more efficiently, please use ‘‘Exchange’’ or ‘‘EDGX’’) filed with the the New York Stock Exchange (‘‘NYSE’’)
only one method. The Commission will Securities and Exchange Commission or routed using the RDOT routing
post all comments on the Commission’s (‘‘Commission’’) the proposed rule strategy. In securities priced at or above
Internet Web site (http://www.sec.gov/ change as described in Items I, II and III $1.00, the Exchange currently assesses a
rules/sro.shtml). Copies of the below, which Items have been prepared fee of $0.0027 per share for Members’
submission, all subsequent by the Exchange. The Exchange has orders that yield fee code D. The
amendments, all written statements designated the proposed rule change as Exchange proposes to amend its Fee
with respect to the proposed rule one establishing or changing a member Schedule to increase this fee to
due, fee, or other charge imposed by the $0.00275 per share. The proposed
change that are filed with the
Exchange under Section 19(b)(3)(A)(ii) change would enable the Exchange to
Commission, and all written
of the Act 3 and Rule 19b–4(f)(2) pass through the rate that BATS
communications relating to the thereunder,4 which renders the Trading, Inc. (‘‘BATS Trading’’), the
proposed rule change between the proposed rule change effective upon Exchange’s affiliated routing broker-
Commission and any person, other than filing with the Commission. The dealer, is charged for routing orders to
those that may be withheld from the Commission is publishing this notice to NYSE when it does not qualify for a
public in accordance with the solicit comments on the proposed rule volume tiered reduced fee. The
provisions of 5 U.S.C. 552, will be change from interested persons. proposed change is in response to
available for Web site viewing and NYSE’s November 2015 fee change
printing in the Commission’s Public I. Self-Regulatory Organization’s
where NYSE increased the fee to remove
Reference Room, 100 F Street NE., Statement of the Terms of Substance of
liquidity via routable order types it
Washington, DC 20549 on official the Proposed Rule Change
charges its customers, from a fee of
business days between the hours of The Exchange filed a proposal to $0.0027 per share to a fee of $0.00275
10:00 a.m. and 3:00 p.m. Copies of the amend the fee schedule applicable to per share.6 When BATS Trading routes
filing also will be available for Members 5 and non-members of the to NYSE, it will now be charged a
inspection and copying at the principal Exchange pursuant to EDGX Rules standard rate of $0.00275 per share.
office of the MSRB. All comments 15.1(a) and (c) (‘‘Fee Schedule’’). BATS Trading will pass through this
received will be posted without change; The text of the proposed rule change rate to the Exchange and the Exchange,
the Commission does not edit personal is available at the Exchange’s Web site in turn, will pass through of a rate of
identifying information from at www.batstrading.com, at the $0.00275 per share to its Members. The
submissions. You should submit only principal office of the Exchange, and at proposed increase to the fee under fee
information that you wish to make the Commission’s Public Reference code D would enable the Exchange to
Room. equitably allocate its costs among all
available publicly. All submissions
should refer to File Number SR–MSRB– II. Self-Regulatory Organization’s Members utilizing fee code D. The
2015–03 and should be submitted on or Statement of the Purpose of, and Exchange proposes to implement this
Statutory Basis for, the Proposed Rule amendment to its Fee Schedule
before December 1, 2015.30
Change immediately.
For the Commission, pursuant to delegated In addition to the change proposed
authority.31 In its filing with the Commission, the above, the Exchange proposes to change
Robert W. Errett, Exchange included statements certain references on the Fee Schedule
Deputy Secretary.
concerning the purpose of and basis for in connection with the launch of the
the proposed rule change and discussed options exchange operated by the
[FR Doc. 2015–29226 Filed 11–16–15; 8:45 am]
any comments it received on the Exchange. First, the Exchange propose
BILLING CODE 8011–01–P
[sic] to modify references in the Unicast
1 15 U.S.C. 78s(b)(1). Access section under BATS Connect
2 17 CFR 240.19b–4.
fees to refer to ‘‘BZX Options’’ instead
mstockstill on DSK4VPTVN1PROD with NOTICES
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
of ‘‘BATS Options’’. Second, the
5 The term ‘‘Member’’ is defined as ‘‘any Exchange proposes to add reference to
30 The Commission believes that a 14-day registered broker or dealer, or any person associated
with a registered broker or dealer, that has been 6 See NYSE Trader Update, Fee Changes Effective
comment period is reasonable, given the urgency of admitted to membership in the Exchange [sic]. A November 2, dated October 30, 2015, available at
the matter. It will provide adequate time for Member will have the status of a ‘‘member’’ of the https://www.nyse.com/publicdocs/nyse/markets/
comment. Exchange as that term is defined in Section 3(a)(3) nyse/NYSE_Client_Notice_Fee_Change_11_
31 17 CFR 200.30–3(a)(12). of the Act.’’ See Exchange Rule 1.5(n). 2015.pdf.
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![Federal Register / Vol. 80, No. 221 / Tuesday, November 17, 2015 / Notices 71863
EDGX Options in the list of Exchange by the Exchange or pricing offered by Paper Comments
affiliates to which such fees do not the Exchange’s competitors.
apply. Additionally, Members may opt to • Send paper comments in triplicate
disfavor the Exchange’s pricing if they to Brent J. Fields, Secretary, Securities
2. Statutory Basis and Exchange Commission, 100 F Street
believe that alternatives offer them
The Exchange believes that the better value. Accordingly, the Exchange NE., Washington, DC 20549–1090.
proposed rule change is consistent with does not believe that the proposed
the objectives of Section 6 of the Act,7 All submissions should refer to File
changes will impair the ability of Number SR–EDGX–2015–55. This file
in general, and furthers the objectives of Members or competing venues to
Section 6(b)(4),8 in particular, as it is number should be included on the
maintain their competitive standing in
designed to provide for the equitable subject line if email is used. To help the
the financial markets. The Exchange
allocation of reasonable dues, fees and Commission process and review your
believes that its proposal to pass
other charges among its Members and through a fee of $0.00275 per share for comments more efficiently, please use
other persons using its facilities. The Members’ orders that yield fee code D only one method. The Commission will
Exchange believes that its proposal to would increase intermarket competition post all comments on the Commission’s
increase the fee for Members’ orders that because it offers customers an Internet Web site (http://www.sec.gov/
yield fee code D from $0.0027 per share alternative means to route to NYSE. The rules/sro.shtml). Copies of the
to $0.00275 per share represents an Exchange believes that its proposal submission, all subsequent
equitable allocation of reasonable dues, would not burden intramarket amendments, all written statements
fees, and other charges among Members competition because the proposed rate with respect to the proposed rule
and other persons using its facilities would apply uniformly to all Members. change that are filed with the
because the Exchange does not levy Commission, and all written
additional fees or offer additional (C) Self-Regulatory Organization’s
communications relating to the
rebates for orders that it routes to NYSE Statement on Comments on the
proposed rule change between the
through BATS Trading. As of November Proposed Rule Change Received From
Members, Participants or Others Commission and any person, other than
1, 2015 [sic], NYSE amended its fee to those that may be withheld from the
remove liquidity via routable order The Exchange has not solicited, and public in accordance with the
types it charges its customers, from a fee does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be
of $0.0027 per share to a fee of $0.00275 this proposed rule change. The
per share.9 Therefore, the Exchange available for Web site viewing and
Exchange has not received any printing in the Commission’s Public
believes that its proposal to pass unsolicited written comments from
through a fee of $0.00275 per share for Reference Room, 100 F Street NE.,
Members or other interested parties. Washington, DC 20549, on official
orders that yield fee code D is equitable
and reasonable because it accounts for III. Date of Effectiveness of the business days between the hours of
the pricing changes on NYSE. In Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the
addition, the proposal allows the Commission Action filing will also be available for
Exchange to continue to charge its inspection and copying at the principal
The foregoing rule change has become
Members a pass-through rate for orders office of the Exchange. All comments
effective pursuant to Section 19(b)(3)(A)
that are routed to NYSE. Furthermore, received will be posted without change;
of the Act 10 and paragraph (f) of Rule
the Exchange notes that routing through 19b–4 thereunder.11 At any time within the Commission does not edit personal
BATS Trading is voluntary. Lastly, the 60 days of the filing of the proposed rule identifying information from
Exchange also believes that the change, the Commission summarily may submissions. You should submit only
proposed amendment is non- temporarily suspend such rule change if information that you wish to make
discriminatory because it applies it appears to the Commission that such available publicly. All submissions
uniformly to all Members. The action is necessary or appropriate in the should refer to File Number SR–EDGX–
Exchange also believes that the changes public interest, for the protection of 2015–55 and should be submitted on or
to add EDGX Options to the list of investors, or otherwise in furtherance of before December 8,2015.
affiliates under Unicast Access and the the purposes of the Act.
re-naming of BATS Options as BZX For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Options is consistent with the Act. Such
authority.12
changes reflect and are in connection Interested persons are invited to
with the launch of EDGX Options but do Robert W. Errett,
submit written data, views, and
not result in any material change to the arguments concerning the foregoing,
Deputy Secretary.
Exchange’s Fee Schedule or impose any including whether the proposed rule [FR Doc. 2015–29229 Filed 11–16–15; 8:45 am]
new or different fee. change is consistent with the Act. BILLING CODE 8011–01–P
(B) Self-Regulatory Organization’s Comments may be submitted by any of
Statement on Burden on Competition the following methods:
These proposed rule changes do not Electronic Comments
impose any burden on competition that
is not necessary or appropriate in • Use the Commission’s Internet
comment form (http://www.sec.gov/
mstockstill on DSK4VPTVN1PROD with NOTICES
furtherance of the purposes of the Act.
The Exchange does not believe that any rules/sro.shtml); or
of these changes represent a significant • Send an email to rule-comments@
departure from previous pricing offered sec.gov. Please include File Number SR–
EDGX–2015–55 on the subject line.
7 15 U.S.C. 78f.
8 15 U.S.C. 78f(b)(4). 10 15 U.S.C. 78s(b)(3)(A).
9 See supra note 6. 11 17 CFR 240.19b–4(f). 12 17 CFR 200.30–3(a)(12).
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Document Created: 2015-12-14 14:00:07
Document Modified: 2015-12-14 14:00:07
| 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 71862 |
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