80_FR_77915 80 FR 77675 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGA Exchange, Inc.

80 FR 77675 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGA Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 240 (December 15, 2015)

Page Range77675-77676
FR Document2015-31443

Federal Register, Volume 80 Issue 240 (Tuesday, December 15, 2015) 
[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)]
[Notices]
[Pages 77675-77676]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31443]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76602; File No. SR-EDGA-2015-44]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of EDGA Exchange, Inc.

December 9, 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 December 1, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 its fees and rebates 
applicable to Members \5\ of the Exchange pursuant to EDGA Rule 15.1(a) 
and (c) (``Fee Schedule'') to increase the fee for orders yielding fee 
code K, which routes to NASDAQ OMX PSX (``PSX'') using ROUC or ROUE 
routing strategy.
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    \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. 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).
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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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to increase the fee for orders yielding fee 
code K, which routes to PSX using ROUC or ROUE routing strategy. In 
securities priced at or above $1.00, the Exchange currently assesses a 
fee of $0.0028 per share for Members' orders that yield fee code K. The 
Exchange proposes to amend its Fee Schedule to increase this fee to 
$0.0029 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 PSX when it does not qualify for a volume tiered reduced fee. 
The proposed change is in response to PSX's December 2015 fee change 
where PSX 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 $0.0028 per share for Tapes A and B securities and from a fee of 
$0.0028 per share to $0.0029 per share for Tape C securities.\6\ When 
BATS Trading routes to PSX, it will now be charged a standard rate of 
$0.0028 per share for Tapes A and B securities and $0.0029 per share 
for Tape C securities.\7\ BATS Trading will pass through this rate to 
the Exchange and the Exchange, in turn, will pass through of a rate of 
$0.0029 per share for Tape A, B, and C securities to its Members.\8\ 
The proposed increase to the fee under fee code K would enable the 
Exchange to equitably allocate its costs among all Members utilizing 
fee code K. The Exchange proposes to implement this amendment to its 
Fee Schedule immediately.
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    \6\ See Equity Trader Alert 2015-189, available at http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA-2015-189.
    \7\ The Exchange notes that to the extent BATS Trading does or 
does not achieve any volume tiered reduced fee on PSX, its rate for 
fee code K will not change.
    \8\ The Exchange notes that, due to billing system limitations 
that do not allow for separate rates by tape, it will pass through 
the higher fee of $0.0029 per share for all Tapes A, B & C 
securities.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4),\10\ 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 K 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 PSX through BATS Trading. As of December 1, 2015, PSX 
increased the fee to remove liquidity from a fee of $0.0027 per share 
to a fee of $0.0028 per share for Tapes A and B securities and from a 
fee of $0.0028 per share to $0.0029 per share for Tape C 
securities.\11\ Therefore, the Exchange believes that its proposal to 
pass through a fee of $0.0029 per share for orders that yield fee code 
K is equitable and reasonable because it accounts for the pricing 
changes on PSX. In addition, the proposal allows the Exchange to now 
charge its Members a pass-through rate for orders that are routed to 
PSX. 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.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ See supra note 4.

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[[Page 77676]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does 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 this change represents 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 $0.0029 per share for Members' orders that yield fee 
code K would increase intermarket competition because it offers 
customers an alternative means to route to PSX. 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 \12\ and paragraph (f) of Rule 19b-4 
thereunder.\13\ 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.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-EDGA-2015-44 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 Number SR-EDGA-2015-44. 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 also will 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-2015-44, and should be 
submitted on or before January 5, 2016.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31443 Filed 12-14-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices 77675 FOR FURTHER INFORMATION CONTACT: EDGA Rule 15.1(a) and (c) (‘‘Fee $0.0028 per share for Tapes A and B Elizabeth A. Reed, 202–268–3179. Schedule’’) to increase the fee for orders securities and $0.0029 per share for SUPPLEMENTARY INFORMATION: The yielding fee code K, which routes to Tape C securities.7 BATS Trading will United States Postal Service® hereby NASDAQ OMX PSX (‘‘PSX’’) using pass through this rate to the Exchange gives notice that, pursuant to 39 U.S.C. ROUC or ROUE routing strategy. and the Exchange, in turn, will pass 3642 and 3632(b)(3), on December 8, The text of the proposed rule change through of a rate of $0.0029 per share for 2015, it filed with the Postal Regulatory is available at the Exchange’s Web site Tape A, B, and C securities to its Commission a Request of the United at www.batstrading.com, at the Members.8 The proposed increase to the States Postal Service to Add Priority principal office of the Exchange, and at fee under fee code K would enable the Mail Express & Priority Mail Contract 24 the Commission’s Public Reference Exchange to equitably allocate its costs to Competitive Product List. Documents Room. among all Members utilizing fee code K. are available at www.prc.gov, Docket II. Self-Regulatory Organization’s The Exchange proposes to implement Nos. MC2016–27, CP2016–33. Statement of the Purpose of, and this amendment to its Fee Schedule Stanley F. Mires, Statutory Basis for, the Proposed Rule immediately. Change Attorney, Federal Compliance. 2. Statutory Basis [FR Doc. 2015–31451 Filed 12–14–15; 8:45 am] In its filing with the Commission, the BILLING CODE 7710–12–P Exchange included statements The Exchange believes that the concerning the purpose of and basis for proposed rule change is consistent with the proposed rule change and discussed the objectives of Section 6 of the Act,9 any comments it received on the in general, and furthers the objectives of SECURITIES AND EXCHANGE proposed rule change. The text of these COMMISSION Section 6(b)(4),10 in particular, as it is statements may be examined at the designed to provide for the equitable [Release No. 34–76602; File No. SR–EDGA– places specified in Item IV below. The allocation of reasonable dues, fees and 2015–44] Exchange has prepared summaries, set forth in Sections A, B, and C below, of other charges among its Members and Self-Regulatory Organizations; EDGA the most significant parts of such other persons using its facilities. The Exchange, Inc.; Notice of Filing and statements. Exchange believes that its proposal to Immediate Effectiveness of a Proposed increase the fee for Members’ orders that A. Self-Regulatory Organization’s yield fee code K represents an equitable Rule Change Related to Fees for Use Statement of the Purpose of, and the allocation of reasonable dues, fees, and of EDGA Exchange, Inc. Statutory Basis for, the Proposed Rule other charges among Members and other December 9, 2015. Change persons using its facilities because the Pursuant to Section 19(b)(1) of the 1. Purpose Exchange does not levy additional fees Securities Exchange Act of 1934 (the or offer additional rebates for orders that The Exchange proposes to increase ‘‘Act’’),1 and Rule 19b–4 thereunder,2 it routes to PSX through BATS Trading. the fee for orders yielding fee code K, notice is hereby given that on December As of December 1, 2015, PSX increased which routes to PSX using ROUC or 1, 2015, EDGA Exchange, Inc. (the the fee to remove liquidity from a fee of ROUE routing strategy. In securities ‘‘Exchange’’ or ‘‘EDGA’’) filed with the $0.0027 per share to a fee of $0.0028 per priced at or above $1.00, the Exchange Securities and Exchange Commission currently assesses a fee of $0.0028 per share for Tapes A and B securities and (‘‘Commission’’) the proposed rule share for Members’ orders that yield fee from a fee of $0.0028 per share to change as described in Items I, II and III code K. The Exchange proposes to $0.0029 per share for Tape C below, which Items have been prepared amend its Fee Schedule to increase this securities.11 Therefore, the Exchange by the Exchange. The Exchange has fee to $0.0029 per share. The proposed designated the proposed rule change as believes that its proposal to pass change would enable the Exchange to through a fee of $0.0029 per share for one establishing or changing a member pass through the rate that BATS due, fee, or other charge imposed by the orders that yield fee code K is equitable Trading, Inc. (‘‘BATS Trading’’), the and reasonable because it accounts for Exchange under Section 19(b)(3)(A)(ii) Exchange’s affiliated routing broker- of the Act 3 and Rule 19b–4(f)(2) the pricing changes on PSX. In addition, dealer, is charged for routing orders to the proposal allows the Exchange to thereunder,4 which renders the PSX when it does not qualify for a proposed rule change effective upon now charge its Members a pass-through volume tiered reduced fee. The filing with the Commission. The rate for orders that are routed to PSX. proposed change is in response to PSX’s Commission is publishing this notice to December 2015 fee change where PSX Furthermore, the Exchange notes that solicit comments on the proposed rule increased the fee to remove liquidity via routing through BATS Trading is change from interested persons. routable order types it charges its voluntary. Lastly, the Exchange also I. Self-Regulatory Organization’s customers, from a fee of $0.0027 per believes that the proposed amendment Statement of the Terms of Substance of share to a fee of $0.0028 per share for is non-discriminatory because it applies the Proposed Rule Change Tapes A and B securities and from a fee uniformly to all Members. of $0.0028 per share to $0.0029 per The Exchange filed a proposal to share for Tape C securities.6 When 7 The Exchange notes that to the extent BATS amend its fees and rebates applicable to asabaliauskas on DSK5VPTVN1PROD with NOTICES BATS Trading routes to PSX, it will Trading does or does not achieve any volume tiered Members 5 of the Exchange pursuant to now be charged a standard rate of reduced fee on PSX, its rate for fee code K will not change. 1 15 8 The Exchange notes that, due to billing system U.S.C. 78s(b)(1). 2 17 admitted to membership in the Exchange. A limitations that do not allow for separate rates by CFR 240.19b–4. Member will have the status of a ‘‘member’’ of the 3 15 U.S.C. 78s(b)(3)(A)(ii). tape, it will pass through the higher fee of $0.0029 Exchange as that term is defined in Section 3(a)(3) 4 17 CFR 240.19b–4(f)(2). of the Act.’’ See Exchange Rule 1.5(n). per share for all Tapes A, B & C securities. 9 15 U.S.C. 78f. 5 The term ‘‘Member’’ is defined as ‘‘any 6 See Equity Trader Alert 2015–189, available at 10 15 U.S.C. 78f(b)(4). registered broker or dealer, or any person associated http://www.nasdaqtrader.com/ with a registered broker or dealer, that has been TraderNews.aspx?id=ETA-2015-189. 11 See supra note 4. VerDate Sep<11>2014 17:08 Dec 14, 2015 Jkt 238001 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

77676 Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices B. Self-Regulatory Organization’s Electronic Comments SECURITIES AND EXCHANGE Statement on Burden on Competition COMMISSION • Use the Commission’s Internet This proposed rule change does not comment form (http://www.sec.gov/ [Release No. 34–76599; File No. SR–NYSE– impose any burden on competition that 2015–65] rules/sro.shtml); or is not necessary or appropriate in furtherance of the purposes of the Act. • Send an email to rule-comments@ Self-Regulatory Organizations; New The Exchange does not believe that this sec.gov. Please include File Number SR– York Stock Exchange LLC; Notice of change represents a significant EDGA–2015–44 on the subject line. Filing and Immediate Effectiveness of departure from previous pricing offered Proposed Rule Change Relating to Paper Comments NYSE Trades Market Data Product by the Exchange or pricing offered by the Exchange’s competitors. • Send paper comments in triplicate Offering Additionally, Members may opt to to Secretary, Securities and Exchange December 9, 2015. disfavor the Exchange’s pricing if they Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the believe that alternatives offer them Washington, DC 20549–1090. Securities Exchange Act of 1934 better value. Accordingly, the Exchange All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2 does not believe that the proposed notice is hereby given that on November changes will impair the ability of Number SR–EDGA–2015–44. This file 24, 2015, New York Stock Exchange Members or competing venues to number should be included on the LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed maintain their competitive standing in subject line if email is used. To help the with the Securities and Exchange the financial markets. The Exchange Commission process and review your Commission (‘‘SEC’’ or ‘‘Commission’’) believes that its proposal to pass comments more efficiently, please use the proposed rule change as described through a fee of $0.0029 per share for only one method. The Commission will in Items I and II below, which Items Members’ orders that yield fee code K post all comments on the Commission’s have been prepared by the Exchange. would increase intermarket competition Internet Web site (http://www.sec.gov/ The Commission is publishing this because it offers customers an rules/sro.shtml). Copies of the notice to solicit comments on the alternative means to route to PSX. The submission, all subsequent proposed rule change from interested Exchange believes that its proposal amendments, all written statements persons. would not burden intramarket competition because the proposed rate with respect to the proposed rule I. Self-Regulatory Organization’s would apply uniformly to all Members. change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change C. Self-Regulatory Organization’s communications relating to the Statement on Comments on the proposed rule change between the The Exchange proposes to amend the Proposed Rule Change Received From NYSE Trades market data product Commission and any person, other than Members, Participants, or Others offering. The text of the proposed rule those that may be withheld from the change is available on the Exchange’s The Exchange has not solicited, and public in accordance with the Web site at www.nyse.com, at the does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be principal office of the Exchange, and at this proposed rule change. The available for Web site viewing and the Commission’s Public Reference Exchange has not received any printing in the Commission’s Public Room. unsolicited written comments from Reference Room, 100 F Street NE., Members or other interested parties. Washington, DC 20549, on official II. Self-Regulatory Organization’s business days between the hours of Statement of the Purpose of, and III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule Proposed Rule Change and Timing for Change Commission Action filing also will be available for inspection and copying at the principal In its filing with the Commission, the The foregoing rule change has become office of the Exchange. All comments Exchange included statements effective pursuant to Section 19(b)(3)(A) received will be posted without change; concerning the purpose of, and basis for, of the Act 12 and paragraph (f) of Rule the Commission does not edit personal the proposed rule change and discussed 19b–4 thereunder.13 At any time within identifying information from any comments it received on the 60 days of the filing of the proposed rule submissions. You should submit only proposed rule change. The text of those change, the Commission summarily may information that you wish to make statements may be examined at the temporarily suspend such rule change if places specified in Item IV below. The it appears to the Commission that such available publicly. All submissions Exchange has prepared summaries, set action is necessary or appropriate in the should refer to File Number SR–EDGA– forth in sections A, B, and C below, of public interest, for the protection of 2015–44, and should be submitted on or the most significant parts of such investors, or otherwise in furtherance of before January 5, 2016. statements. the purposes of the Act. For the Commission, by the Division of A. Self-Regulatory Organization’s IV. Solicitation of Comments Trading and Markets, pursuant to delegated Statement of the Purpose of, and the Interested persons are invited to authority.14 Statutory Basis for, the Proposed Rule Robert W. Errett, asabaliauskas on DSK5VPTVN1PROD with NOTICES submit written data, views, and Change arguments concerning the foregoing, Deputy Secretary. including whether the proposed rule [FR Doc. 2015–31443 Filed 12–14–15; 8:45 am] 1. Purpose change is consistent with the Act. BILLING CODE 8011–01–P The Exchange proposes to amend the Comments may be submitted by any of NYSE Trades market data feed product the following methods: offering. 12 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 13 17 CFR 240.19b–4(f). 14 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:08 Dec 14, 2015 Jkt 238001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1


Document Created: 2018-03-02 09:16:02
Document Modified: 2018-03-02 09:16:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 77675 
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