80_FR_77923 80 FR 77683 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc.

80 FR 77683 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

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

Page Range77683-77684
FR Document2015-31444

Federal Register, Volume 80 Issue 240 (Tuesday, December 15, 2015) 
[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)]
[Notices]
[Pages 77683-77684]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31444]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76603; File No. SR-EDGX-2015-58]


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

[[Page 77684]]

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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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-EDGX-2015-58 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-EDGX-2015-58. 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-EDGX-2015-58, and should be 
submitted on or before January 5, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
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    \14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-31444 Filed 12-14-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices 77683 business days between the hours of I. Self-Regulatory Organization’s customers, from a fee of $0.0027 per 10:00 a.m. and 3:00 p.m. Copies of the Statement of the Terms of Substance of share to a fee of $0.0028 per share for filing will also be available for the Proposed Rule Change Tapes A and B securities and from a fee inspection and copying at the NYSE’s The Exchange filed a proposal to of $0.0028 per share to $0.0029 per principal office and on its Internet Web amend its fees and rebates applicable to share for Tape C securities.6 When site at www.nyse.com. All comments Members 5 of the Exchange pursuant to BATS Trading routes to PSX, it will received will be posted without change; EDGX Rule 15.1(a) and (c) (‘‘Fee now be charged a standard rate of the Commission does not edit personal Schedule’’) to increase the fee for orders $0.0028 per share for Tapes A and B identifying information from yielding fee code K, which routes to securities and $0.0029 per share for NASDAQ OMX PSX (‘‘PSX’’) using Tape C securities.7 BATS Trading will submissions. You should submit only ROUC or ROUE routing strategy. pass through this rate to the Exchange information that you wish to make The text of the proposed rule change and the Exchange, in turn, will pass available publicly. All submissions through of a rate of $0.0029 per share for should refer to File Number SR– is available at the Exchange’s Web site at www.batstrading.com, at the Tape A, B, and C securities to its NYSEMKT–2015–98 and should be Members.8 The proposed increase to the submitted on or before January 5, 2016. principal office of the Exchange, and at the Commission’s Public Reference fee under fee code K would enable the For the Commission, by the Division of Room. Exchange to equitably allocate its costs Trading and Markets, pursuant to delegated among all Members utilizing fee code K. authority.13 II. Self-Regulatory Organization’s The Exchange proposes to implement Robert W. Errett, Statement of the Purpose of, and this amendment to its Fee Schedule Statutory Basis for, the Proposed Rule immediately. Deputy Secretary. Change [FR Doc. 2015–31442 Filed 12–14–15; 8:45 am] 2. Statutory Basis In its filing with the Commission, the BILLING CODE 8011–01–P The Exchange believes that the Exchange included statements proposed rule change is consistent with concerning the purpose of and basis for the objectives of Section 6 of the Act,9 SECURITIES AND EXCHANGE the proposed rule change and discussed in general, and furthers the objectives of COMMISSION any comments it received on the Section 6(b)(4),10 in particular, as it is proposed rule change. The text of these designed to provide for the equitable statements may be examined at the allocation of reasonable dues, fees and [Release No. 34–76603; File No. SR–EDGX– places specified in Item IV below. The 2015–58] other charges among its Members and Exchange has prepared summaries, set other persons using its facilities. The forth in Sections A, B, and C below, of Exchange believes that its proposal to Self-Regulatory Organizations; EDGX the most significant parts of such increase the fee for Members’ orders that Exchange, Inc.; Notice of Filing and statements. yield fee code K represents an equitable Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use A. Self-Regulatory Organization’s allocation of reasonable dues, fees, and of EDGX Exchange, Inc. Statement of the Purpose of, and the other charges among Members and other Statutory Basis for, the Proposed Rule persons using its facilities because the December 9, 2015. Change Exchange does not levy additional fees Pursuant to Section 19(b)(1) of the or offer additional rebates for orders that 1. Purpose it routes to PSX through BATS Trading. Securities Exchange Act of 1934 (the The Exchange proposes to increase As of December 1, 2015, PSX increased ‘‘Act’’),1 and Rule 19b–4 thereunder,2 the fee for orders yielding fee code K, the fee to remove liquidity from a fee of notice is hereby given that on December $0.0027 per share to a fee of $0.0028 per which routes to PSX using ROUC or 1, 2015, EDGX Exchange, Inc. (the ROUE routing strategy. In securities share for Tapes A and B securities and ‘‘Exchange’’ or ‘‘EDGX’’) filed with the priced at or above $1.00, the Exchange from a fee of $0.0028 per share to Securities and Exchange Commission currently assesses a fee of $0.0028 per $0.0029 per share for Tape C (‘‘Commission’’) the proposed rule share for Members’ orders that yield fee securities.11 Therefore, the Exchange change as described in Items I, II and III code K. The Exchange proposes to believes that its proposal to pass below, which Items have been prepared amend its Fee Schedule to increase this through a fee of $0.0029 per share for by the Exchange. The Exchange has fee to $0.0029 per share. The proposed orders that yield fee code K is equitable designated the proposed rule change as change would enable the Exchange to and reasonable because it accounts for one establishing or changing a member pass through the rate that BATS the pricing changes on PSX. In addition, due, fee, or other charge imposed by the Trading, Inc. (‘‘BATS Trading’’), the the proposal allows the Exchange to Exchange under Section 19(b)(3)(A)(ii) Exchange’s affiliated routing broker- now charge its Members a pass-through of the Act 3 and Rule 19b–4(f)(2) dealer, is charged for routing orders to rate for orders that are routed to PSX. thereunder,4 which renders the PSX when it does not qualify for a 6 See Equity Trader Alert 2015–189, available at proposed rule change effective upon volume tiered reduced fee. The http://www.nasdaqtrader.com/ filing with the Commission. The proposed change is in response to PSX’s TraderNews.aspx?id=ETA-2015-189. Commission is publishing this notice to December 2015 fee change where PSX 7 The Exchange notes that to the extent BATS asabaliauskas on DSK5VPTVN1PROD with NOTICES solicit comments on the proposed rule increased the fee to remove liquidity via Trading does or does not achieve any volume tiered change from interested persons. routable order types it charges its reduced fee on PSX, its rate for fee code K will not change. 8 The Exchange notes that, due to billing system 5 The term ‘‘Member’’ is defined as ‘‘any 13 17 registered broker or dealer, or any person associated limitations that do not allow for separate rates by CFR 200.30–3(a)(12). with a registered broker or dealer, that has been tape, it will pass through the higher fee of $0.0029 1 15 U.S.C. 78s(b)(1). admitted to membership in the Exchange. A per share for all Tapes A, B & C securities. 2 17 CFR 240.19b–4. 9 15 U.S.C. 78f. Member will have the status of a ‘‘member’’ of the 3 15 U.S.C. 78s(b)(3)(A)(ii). 10 15 U.S.C. 78f(b)(4). 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). 11 See supra note 4. VerDate Sep<11>2014 17:08 Dec 14, 2015 Jkt 238001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

77684 Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Notices Furthermore, the Exchange notes that IV. Solicitation of Comments For the Commission, by the Division of routing through BATS Trading is Trading and Markets, pursuant to delegated voluntary. Lastly, the Exchange also Interested persons are invited to authority.14 believes that the proposed amendment submit written data, views, and Robert W. Errett, is non-discriminatory because it applies arguments concerning the foregoing, Deputy Secretary. uniformly to all Members. including whether the proposed rule [FR Doc. 2015–31444 Filed 12–14–15; 8:45 am] 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: This proposed rule change does not SECURITIES AND EXCHANGE Electronic Comments COMMISSION impose any burden on competition that is not necessary or appropriate in • Use the Commission’s Internet furtherance of the purposes of the Act. comment form (http://www.sec.gov/ [Release No. 34–76600; File No. SR– The Exchange does not believe that this rules/sro.shtml); or NYSEMKT–2015–101] change represents a significant • Send an email to rule-comments@ Self-Regulatory Organizations; NYSE departure from previous pricing offered sec.gov. Please include File Number SR– MKT LLC; Notice of Filing and by the Exchange or pricing offered by EDGX–2015–58 on the subject line. Immediate Effectiveness of Proposed the Exchange’s competitors. Rule Change Relating to NYSE MKT Additionally, Members may opt to Paper Comments Trades Market Data Product Offering disfavor the Exchange’s pricing if they believe that alternatives offer them • Send paper comments in triplicate December 9, 2015. better value. Accordingly, the Exchange to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the does not believe that the proposed Commission, 100 F Street NE., Securities Exchange Act of 1934 changes will impair the ability of Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Members or competing venues to All submissions should refer to File notice is hereby given that on November maintain their competitive standing in Number SR–EDGX–2015–58. This file 24, 2015, NYSE MKT LLC (‘‘NYSE the financial markets. The Exchange number should be included on the MKT’’ or the ‘‘Exchange’’) filed with the believes that its proposal to pass subject line if email is used. To help the Securities and Exchange Commission through a fee of $0.0029 per share for Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed Members’ orders that yield fee code K comments more efficiently, please use rule change as described in Items I and would increase intermarket competition only one method. The Commission will II below, which Items have been because it offers customers an prepared by the Exchange. The post all comments on the Commission’s alternative means to route to PSX. The Commission is publishing this notice to Internet Web site (http://www.sec.gov/ Exchange believes that its proposal solicit comments on the proposed rule rules/sro.shtml). Copies of the would not burden intramarket change from interested persons. submission, all subsequent competition because the proposed rate I. Self-Regulatory Organization’s amendments, all written statements would apply uniformly to all Members. Statement of the Terms of Substance of with respect to the proposed rule C. Self-Regulatory Organization’s change that are filed with the the Proposed Rule Change Statement on Comments on the Commission, and all written The Exchange proposes to amend the Proposed Rule Change Received From communications relating to the NYSE MKT Trades market data product Members, Participants, or Others proposed rule change between the offering. The text of the proposed rule Commission and any person, other than change is available on the Exchange’s The Exchange has not solicited, and those that may be withheld from the Web site at www.nyse.com, at the does not intend to solicit, comments on public in accordance with the principal office of the Exchange, and at this proposed rule change. The provisions of 5 U.S.C. 552, will be the Commission’s Public Reference Exchange has not received any available for Web site viewing and Room. unsolicited written comments from Members or other interested parties. printing in the Commission’s Public II. Self-Regulatory Organization’s Reference Room, 100 F Street NE., Statement of the Purpose of, and III. Date of Effectiveness of the Washington, DC 20549, on official Statutory Basis for, the Proposed Rule Proposed Rule Change and Timing for business days between the hours of Change Commission Action 10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the The foregoing rule change has become filing also will be available for Exchange included statements effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal concerning the purpose of, and basis for, of the Act 12 and paragraph (f) of Rule office of the Exchange. All comments the proposed rule change and discussed 19b–4 thereunder.13 At any time within received will be posted without change; any comments it received on the 60 days of the filing of the proposed rule the Commission does not edit personal proposed rule change. The text of those change, the Commission summarily may identifying information from statements may be examined at the temporarily suspend such rule change if submissions. You should submit only asabaliauskas on DSK5VPTVN1PROD with NOTICES places specified in Item IV below. The it appears to the Commission that such information that you wish to make Exchange has prepared summaries, set action is necessary or appropriate in the available publicly. All submissions forth in sections A, B, and C below, of public interest, for the protection of should refer to File Number SR–EDGX– the most significant parts of such investors, or otherwise in furtherance of 2015–58, and should be submitted on or statements. the purposes of the Act. before January 5, 2016. 14 17 CFR 200.30–3(a)(12). 12 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). 13 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:08 Dec 14, 2015 Jkt 238001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1


Document Created: 2018-03-02 09:15:17
Document Modified: 2018-03-02 09:15:17
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 77683 
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