80 FR 80867 - 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 248 (December 28, 2015)
Federal Register Volume 80, Issue 248 (December 28, 2015)
| Page Range | 80867-80870 | |
| FR Document | 2015-32541 |
[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)] [Notices] [Pages 80867-80870] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32541] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76713; File No. SR-EDGX-2015-62] 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 21, 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 17, 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 Market Data section of its fee schedule to: (i) Adopt definitions for the terms ``Non-Display Usage'' and ``Trading Platforms''; and (ii) amend the fees for EDGX Depth, to increase the Internal Distributor fee and adopt a new fee for Non-Display Usage. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Market Data section of its fee schedule to: (i) Adopt definitions for the terms ``Non-Display Usage'' and ``Trading Platforms''; and (ii) amend the fees for EDGX Depth to increase the Internal Distributor fee and adopt a new fee for Non- Display Usage. Definitions The Exchange proposes to adopt definitions for the terms ``Non- Display Usage'' and ``Trading Platforms''. The proposed definitions are designed to provide greater transparency with regard to how the Exchange assesses fees for market data. Non-Display Usage would be defined as ``any method of accessing a Market Data product that involves access or use by a machine or automated device without access or use of a display by a natural person or persons.'' \5\ The term Trading Platform would be defined as ``any execution platform operated as or by a registered National Securities Exchange (as defined in Section 3(a)(1) of the Exchange Act), an Alternative Trading System (as defined in Rule 300(a) of Regulation ATS), or an Electronic Communications Network (as defined in Rule 600(b)(23) of Regulation NMS).'' \6\ --------------------------------------------------------------------------- \5\ The proposed definition of Non-Display Usage is substantially similar to Nasdaq Stock Market LLC (``Nasdaq'') Rule 7023(a)(2)(B), which defines Non-Display Usage as ``any method of accessing Depth-of-Book data that involves access or use by a machine or automated device without access or use of a display by a natural person or persons. \6\ The proposed definition of Trading Platform is identical the definition of Trading Platform under Nasdaq Rule 7023(a)(7). --------------------------------------------------------------------------- EDGX Depth Fees EDGX Depth is an uncompressed market data feed that provides depth- of-book quotations and execution information based on equity orders entered into the System.\7\ --------------------------------------------------------------------------- \7\ See Exchange Rule 13.8(a). --------------------------------------------------------------------------- Internal Distributor Fee. Currently, the Exchange charges fees for both internal and external distribution of EDGX Depth. The cost of EDGX Depth for an Internal Distributor \8\ is currently [[Page 80868]] $500 per month. The Exchange also separately charges an External Distributor \9\ of EDGX Depth a flat fee of $2,500 per month. The Exchange does not charge Internal and External Distributors separate display User \10\ fees. The Exchange now proposes to increase the fee for Internal Distributors from $500 per month to $1,500 per month. The Exchange does not proposes to amend its fees for External Distributors. --------------------------------------------------------------------------- \8\ An ``Internal Distributor'' is defined as ``a Distributor that receives the Exchange Market Data product and then distributes that data to one or more Users within the Distributor's own entity.'' See the Exchange Fee Schedule available at http://batstrading.com/support/fee_schedule/edgx/. A ``Distributor'' is defined as ``any entity that receives the Exchange Market Data product directly from the Exchange or indirectly through another entity and then distributes it internally or externally to a third party.'' Id. \9\ An ``External Distributor'' is defined as ``a Distributor that receives the Exchange Market Data product and then distributes that data to a third party or one or more Users outside the Distributor's own entity.'' Id. \10\ A ``User'' is defined as ``a natural person, a proprietorship, corporation, partnership, or entity, or device (computer or other automated service), that is entitled to receive Exchange data.'' Id. --------------------------------------------------------------------------- Non-Display Usage Fee. The Exchange also proposes to adopt a new fee for Non-Display Usage by Trading Platforms, which is similar to fees currently being charged by Nasdaq and the New York Stock Exchange, Inc. (``NYSE'').\11\ As proposed, subscribers to EDGX Depth would pay a fee of $5,000 per month for Non-Display Usage of EDGX Depth by its Trading Platforms. Trading Platforms, as defined above, include registered National Securities Exchanges, Alternative Trading Systems (``ATSs''), and Electronic Communications Networks (``ECNs'') as those terms are defined in the Exchange Act and regulations and rules thereunder. The fee would be assessed in addition to existing Distributor fees. The fee of $5,000 per month would represent the maximum charge per subscriber regardless of the number of Trading Platforms the subscriber operates and receive the data for Non-Display Usage. For example, if a subscriber operates three Trading Platforms that receives EDGX Depth for Non-Displayed Usage, that subscriber would continue to pay a total fee of $5,000 per month, rather than paying $15,000 per month for its three Trading Platforms ($5,000 for each Trading Platform). --------------------------------------------------------------------------- \11\ See Nasdaq Rule 7023(d) (setting forth a Trading Platform Fee of $5,000 per trading platform up to a maximum of three trading platforms for depth-of-book data). See also NYSE Market Data Fees, November 2015 (providing a monthly fee for non-display usage of $5,000 for NYSE OpenBook). --------------------------------------------------------------------------- Implementation Date The Exchange proposes to implement the proposed changes to its fee schedule on January 4, 2016. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\12\ in general, and furthers the objectives of Section 6(b)(4),\13\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and other recipients of Exchange data. The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all recipients of Exchange data. The Exchange believes the proposed fees are competitive with those charged by other venues and, therefore, reasonable and equitably allocated to recipients. Lastly, the Exchange also believes that the proposed fees are reasonable and non- discriminatory because they will apply uniformly to all recipients of Exchange data. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f. \13\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange also believes that the proposed rule change is consistent with Section 11(A) of the Act \14\ in that it supports (i) fair competition among brokers and dealers, among exchange markets, and between exchange markets and markets other than exchange markets and (ii) the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. Furthermore, the proposed rule change is consistent with Rule 603 of Regulation NMS,\15\ which provides that any national securities exchange that distributes information with respect to quotations for or transactions in an NMS stock do so on terms that are not unreasonably discriminatory. In adopting Regulation NMS, the Commission granted self-regulatory organizations and broker-dealers increased authority and flexibility to offer new and unique market data to the public. It was believed that this authority would expand the amount of data available to consumers, and also spur innovation and competition for the provision of market data. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78k-1. \15\ See 17 CFR 242.603. --------------------------------------------------------------------------- In addition, the proposed fees would not permit unfair discrimination because all of the Exchange's subscribers will be subject to the proposed fees on an equivalent basis. EDGX Depth is distributed and purchased on a voluntary basis, in that neither the Exchange nor market data distributors are required by any rule or regulation to make this data available. Accordingly, Distributors and Users can discontinue use at any time and for any reason, including due to an assessment of the reasonableness of fees charged. Firms have a wide variety of alternative market data products from which to choose, such as similar proprietary data products offered by other exchanges and consolidated data. Moreover, the Exchange is not required to make any proprietary data products available or to offer any specific pricing alternatives to any customers. In addition, the fees that are the subject of this rule filing are constrained by competition. As explained below in the Exchange's Statement on Burden on Competition, the existence of alternatives to EDGX Depth further ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when subscribers can elect such alternatives. That is, the Exchange competes with other exchanges (and their affiliates) that provide similar market data products. If another exchange (or its affiliate) were to charge less to consolidate and distribute its similar product than the Exchange charges to consolidate and distribute EDGX Depth, prospective Users likely would not subscribe to, or would cease subscribing to, EDGX Depth. The Exchange notes that the Commission is not required to undertake a cost-of-service or rate-making approach. The Exchange believes that, even if it were possible as a matter of economic theory, cost-based pricing for non-core market data would be so complicated that it could not be done practically.\16\ --------------------------------------------------------------------------- \16\ The Exchange believes that cost-based pricing would be impractical because it would create enormous administrative burdens for all parties, including the Commission, to cost-regulate a large number of participants and standardize and analyze extraordinary amounts of information, accounts, and reports. In addition, it is impossible to regulate market data prices in isolation from prices charged by markets for other services that are joint products. Cost- based rate regulation would also lead to litigation and may distort incentives, including those to minimize costs and to innovate, leading to further waste. Under cost-based pricing, the Commission would be burdened with determining a fair rate of return, and the industry could experience frequent rate increases based on escalating expense levels. Even in industries historically subject to utility regulation, cost-based ratemaking has been discredited. As such, the Exchange believes that cost-based ratemaking would be inappropriate for proprietary market data and inconsistent with Congress's direction that the Commission use its authority to foster the development of the national market system, and that market forces will continue to provide appropriate pricing discipline. See Appendix C to NYSE's comments to the Commission's 2000 Concept Release on the Regulation of Market Information Fees and Revenues, which can be found on the Commission's Web site at http://www.sec.gov/rules/concept/s72899/buck1.htm. See also Securities Exchange Act Release No. 73816 (December 11, 2014), 79 FR 75200 (December 17, 2014) (SR-NYSE-2014-64) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Establish an Access Fee for the NYSE Best Quote and Trades Data Feed, Operative December 1, 2014). --------------------------------------------------------------------------- [[Page 80869]] The proposed amendment to the Internal Distributor fee for EDGX Depth is also equitable and reasonable as, despite the increase, the fee proposed continues to be less than similar fees currently charged by Nasdaq and NYSE for their depth-of-book data products.\17\ In addition, the proposed Non-Display Usage fee by Trading Platforms for EDGX Depth is equitable and reasonable as the fees proposed are equal to, and in some cases less than, similar fees currently charged by Nasdaq for its depth-of-book data. Like as proposed by the Exchange, Nasdaq charges subscribers to its depth-of-book data utilized by trading platforms on a non-displayed basis $5,000 per month.\18\ However, unlike the Exchange, a subscriber utilizing Nasdaq depth-of- book data on more than one Trading Platform would pay $5,000 per month for each up to a maximum fee of $15,000. The Exchange proposes to charge the same rate regardless of the number of Trading Platforms receiving the data for Non-Display Usage operated by that subscriber. --------------------------------------------------------------------------- \17\ See Nasdaq Rule 7023(c) (providing for fees of $25,000 to $500,000 to internal distributors of Nasdaq Depth-of-Book products). See also NYSE Market Data Fees, November 2015 (providing a $5,000 per month access fee for NYSE OpenBook). \18\ See Nasdaq Rule 7023(d). See also NYSE Market Data Fees, November 2015 (providing a monthly fee for non-display usage of $5,000 for NYSE OpenBook). --------------------------------------------------------------------------- The Trading Platform fee is also equitable and reasonable in that it ensures that heavy users of the EDGX Depth pay an equitable share of the total fees. Currently, External Distributors pay higher fees than Internal Distributors based upon their assumed higher usage levels. The Exchange believes that Trading Platforms are generally high users of the data, using it to power a matching engine for millions or even billions of trading messages per day. Lastly, the Exchange believes that the proposed definitions are reasonable because they are designed to provide greater transparency to Members with regard to how the Exchange would assess the proposed fee for Non-Display Usage of EDGX Depth by Trading Platforms. The Exchange believes that Members would benefit from clear guidance in its fee schedule describing the manner in which is assess fees. These definitions are intended to make the fee schedule clearer and less confusing for investors and eliminate potential investor confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. Lastly, the proposed definitions are based on existing rules of Nasdaq.\19\ --------------------------------------------------------------------------- \19\ Nasdaq Rules 7023(a)(2)(B) and (a)(7). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. The Exchange's ability to price EDGX Depth is constrained by: (i) Competition among exchanges, other trading platforms, and Trade Reporting Facilities (``TRF'') that compete with each other in a variety of dimensions; (ii) the existence of inexpensive real-time consolidated data and market-specific data and free delayed data; and (iii) the inherent contestability of the market for proprietary data. The Exchange and its market data products are subject to significant competitive forces and the proposed fees represent responses to that competition. To start, the Exchange competes intensely for order flow. It competes with the other national securities exchanges that currently trade equities, with electronic communication networks, with quotes posted in FINRA's Alternative Display Facility, with alternative trading systems, and with securities firms that primarily trade as principal with their customer order flow. In addition, EDGX Depth competes with a number of alternative products. For instance, EDGX Depth does not provide a complete picture of all trading activity in a security. Rather, the other national securities exchanges, the several TRFs of FINRA, and ECNs that produce proprietary data all produce trades and trade reports. Each is currently permitted to produce depth-of-book information products, and many currently do, including Nasdaq and NYSE. In sum, the availability of a variety of alternative sources of information imposes significant competitive pressures on Exchange data products and the Exchange's compelling need to attract order flow imposes significant competitive pressure on the Exchange to act equitably, fairly, and reasonably in setting the proposed data product fees. The proposed data product fees are, in part, responses to that pressure. The Exchange believes that the proposed fees would reflect an equitable allocation of its overall costs to users of its facilities. In addition, when establishing the proposed fees, the Exchange considered the competitiveness of the market for proprietary data and all of the implications of that competition. The Exchange believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all Users. The existence of alternatives to EDGX Depth, including existing similar feeds by other exchanges, consolidated data, and proprietary data from other sources, ensures that the Exchange cannot set unreasonable fees, or fees that are unreasonably discriminatory, when subscribers can elect these alternatives or choose not to purchase a specific proprietary data product if its cost to purchase is not justified by the returns any particular vendor or subscriber would achieve through the purchase. The Exchange believes the proposed increase to the Internal Distributor fee and adoption of the fee for Non-Display Usage by Trading Platforms for EDGX Depth would increase competition amongst the exchanges that offer depth-of-book products. The Exchange notes that, despite the proposed increase, the Internal Distribution fee for EDGX Depth continues to be less than similar fees currently charged by Nasdaq and NYSE for its depth-of-book data.\20\ In addition, the proposed Non-Display Usage fee by Trading Platforms is equal to, and in some cases less than, similar fees currently charged by Nasdaq for its Depth-of-Book data.\21\ --------------------------------------------------------------------------- \20\ See supra note 17. \21\ See supra note 18. --------------------------------------------------------------------------- Lastly, the proposed definitions will not result in any burden on competition. The Exchange believes that Members would benefit from clear guidance in its fee schedule describing the manner in which is assess fees. These definitions are intended to make the fee schedule clearer and less confusing for investors and are not designed to have a competitive impact. [[Page 80870]] C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. 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 \22\ and paragraph (f) of Rule 19b-4 thereunder.\23\ 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. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A). \23\ 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 rule-comments@sec.gov. Please include File Number SR-EDGX-2015-62 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-2015-62. 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-2015-62, and should be submitted on or before January 19, 2016. --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ Brent J. Fields, Secretary. [FR Doc. 2015-32541 Filed 12-24-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices 80867
be submitted by any of the following SECURITIES AND EXCHANGE places specified in Item IV below. The
methods: COMMISSION Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
Electronic Comments [Release No. 34–76713; File No. SR–EDGX–
the most significant parts of such
2015–62]
• Use the Commission’s Internet statements.
comment form (http://www.sec.gov/ Self-Regulatory Organizations; EDGX A. Self-Regulatory Organization’s
rules/sro.shtml); or Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule
• Send an email to rule-comments@
Rule Change Related to Fees for Use Change
sec.gov. Please include File No. SR–
of EDGX Exchange, Inc.
EDGX–2015–65 on the subject line. 1. Purpose
December 21, 2015.
Paper Comments The Exchange proposes to amend the
Pursuant to Section 19(b)(1) of the Market Data section of its fee schedule
• Send paper comments in triplicate Securities Exchange Act of 1934 (the to: (i) Adopt definitions for the terms
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 ‘‘Non-Display Usage’’ and ‘‘Trading
Commission, 100 F Street NE., notice is hereby given that on December Platforms’’; and (ii) amend the fees for
Washington, DC 20549–1090. 17, 2015, EDGX Exchange, Inc. (the EDGX Depth to increase the Internal
‘‘Exchange’’ or ‘‘EDGX’’) filed with the Distributor fee and adopt a new fee for
All submissions should refer to File No. Securities and Exchange Commission Non-Display Usage.
SR–EDGX–2015–65. This file number (‘‘Commission’’) the proposed rule
should be included on the subject line change as described in Items I, II and III Definitions
if email is used. To help the below, which Items have been prepared The Exchange proposes to adopt
Commission process and review your by the Exchange. The Exchange has definitions for the terms ‘‘Non-Display
comments more efficiently, please use designated the proposed rule change as Usage’’ and ‘‘Trading Platforms’’. The
only one method. The Commission will one establishing or changing a member proposed definitions are designed to
post all comments on the Commission’s due, fee, or other charge imposed by the provide greater transparency with
Internet Web site (http://www.sec.gov/ Exchange under Section 19(b)(3)(A)(ii) regard to how the Exchange assesses
rules/sro.shtml). Copies of the of the Act 3 and Rule 19b–4(f)(2) fees for market data. Non-Display Usage
submission, all subsequent thereunder,4 which renders the would be defined as ‘‘any method of
amendments, all written statements proposed rule change effective upon accessing a Market Data product that
with respect to the proposed rule filing with the Commission. The involves access or use by a machine or
change that are filed with the Commission is publishing this notice to automated device without access or use
Commission, and all written solicit comments on the proposed rule of a display by a natural person or
change from interested persons. persons.’’ 5 The term Trading Platform
communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s would be defined as ‘‘any execution
Commission and any person, other than Statement of the Terms of Substance of platform operated as or by a registered
those that may be withheld from the the Proposed Rule Change National Securities Exchange (as
defined in Section 3(a)(1) of the
public in accordance with the The Exchange filed a proposal to Exchange Act), an Alternative Trading
provisions of 5 U.S.C. 552, will be amend the Market Data section of its fee System (as defined in Rule 300(a) of
available for Web site viewing and schedule to: (i) Adopt definitions for the Regulation ATS), or an Electronic
printing in the Commission’s Public terms ‘‘Non-Display Usage’’ and Communications Network (as defined in
Reference Room, 100 F Street NE., ‘‘Trading Platforms’’; and (ii) amend the Rule 600(b)(23) of Regulation NMS).’’ 6
Washington, DC 20549, on official fees for EDGX Depth, to increase the
business days between the hours of Internal Distributor fee and adopt a new EDGX Depth Fees
10:00 a.m. and 3:00 p.m. Copies of such fee for Non-Display Usage. EDGX Depth is an uncompressed
filing will also be available for The text of the proposed rule change market data feed that provides depth-of-
inspection and copying at the principal is available at the Exchange’s Web site book quotations and execution
office of the Exchange. All comments at www.batstrading.com, at the information based on equity orders
received will be posted without change; principal office of the Exchange, and at entered into the System.7
the Commission does not edit personal the Commission’s Public Reference Internal Distributor Fee. Currently,
identifying information from Room. the Exchange charges fees for both
submissions. You should submit only II. Self-Regulatory Organization’s internal and external distribution of
information that you wish to make Statement of the Purpose of, and EDGX Depth. The cost of EDGX Depth
available publicly. All submissions Statutory Basis for, the Proposed Rule for an Internal Distributor 8 is currently
should refer to File No. SR–EDGX– Change 5 The proposed definition of Non-Display Usage
2015–65 and should be submitted on or
In its filing with the Commission, the is substantially similar to Nasdaq Stock Market LLC
before January 19, 2016. Exchange included statements (‘‘Nasdaq’’) Rule 7023(a)(2)(B), which defines Non-
Display Usage as ‘‘any method of accessing Depth-
For the Commission, by the Division of concerning the purpose of and basis for of-Book data that involves access or use by a
Trading and Markets, pursuant to delegated the proposed rule change and discussed machine or automated device without access or use
mstockstill on DSK4VPTVN1PROD with NOTICES
authority.13 any comments it received on the of a display by a natural person or persons.
6 The proposed definition of Trading Platform is
Brent J. Fields, proposed rule change. The text of these
identical the definition of Trading Platform under
Secretary. statements may be examined at the Nasdaq Rule 7023(a)(7).
[FR Doc. 2015–32524 Filed 12–24–15; 8:45 am] 7 See Exchange Rule 13.8(a).
1 15 U.S.C. 78s(b)(1). 8 An ‘‘Internal Distributor’’ is defined as ‘‘a
BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. Distributor that receives the Exchange Market Data
3 15 U.S.C. 78s(b)(3)(A)(ii).
product and then distributes that data to one or
13 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2). Continued
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![80870 Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices
C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
Statement on Comments on the available for Web site viewing and Statement of the Terms of Substance of
Proposed Rule Change Received From printing in the Commission’s Public the Proposed Rule Change
Members, Participants, or Others Reference Room, 100 F Street NE., The Exchange filed a proposal to
The Exchange has neither solicited Washington, DC 20549, on official amend the fee schedule applicable to
nor received written comments on the business days between the hours of Members 5 and non-members of the
proposed rule change. 10:00 a.m. and 3:00 p.m. Copies of the Exchange pursuant to BATS Rules
filing also will be available for 15.1(a) and (c).
III. Date of Effectiveness of the inspection and copying at the principal The text of the proposed rule change
Proposed Rule Change and Timing for office of the Exchange. All comments is available at the Exchange’s Web site
Commission Action received will be posted without change; at www.batstrading.com, at the
The foregoing rule change has become the Commission does not edit personal principal office of the Exchange, and at
effective pursuant to Section 19(b)(3)(A) identifying information from the Commission’s Public Reference
of the Act 22 and paragraph (f) of Rule submissions. You should submit only Room.
19b–4 thereunder.23 At any time within information that you wish to make
60 days of the filing of the proposed rule available publicly. All submissions II. Self-Regulatory Organization’s
change, the Commission summarily may should refer to File Number SR–EDGX– Statement of the Purpose of, and
temporarily suspend such rule change if 2015–62, and should be submitted on or Statutory Basis for, the Proposed Rule
it appears to the Commission that such before January 19, 2016. Change
action is necessary or appropriate in the For the Commission, by the Division of In its filing with the Commission, the
public interest, for the protection of Trading and Markets, pursuant to delegated Exchange included statements
investors, or otherwise in furtherance of authority.24 concerning the purpose of and basis for
the purposes of the Act. Brent J. Fields, the proposed rule change and discussed
IV. Solicitation of Comments Secretary. any comments it received on the
[FR Doc. 2015–32541 Filed 12–24–15; 8:45 am] proposed rule change. The text of these
Interested persons are invited to statements may be examined at the
submit written data, views, and BILLING CODE 8011–01–P
places specified in Item IV below. The
arguments concerning the foregoing, Exchange has prepared summaries, set
including whether the proposed rule forth in Sections A, B, and C below, of
change is consistent with the Act. SECURITIES AND EXCHANGE
COMMISSION the most significant parts of such
Comments may be submitted by any of statements.
the following methods: [Release No. 34–76707; File No. SR–BATS–
2015–117] (A) Self-Regulatory Organization’s
Electronic Comments Statement of the Purpose of, and
• Use the Commission’s Internet Self-Regulatory Organizations; BATS Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Exchange, Inc.; Notice of Filing and Change
rules/sro.shtml); or Immediate Effectiveness of a Proposed
• Send an email to rule-comments@ 1. Purpose
Rule Change Related to Fees for BZX
sec.gov. Please include File Number SR– Options The Exchange proposes to modify the
EDGX–2015–62 on the subject line. ‘‘Options Pricing’’ section of its fee
December 21, 2015. schedule effective immediately, to
Paper Comments
Pursuant to Section 19(b)(1) of the modify pricing for orders routed away
• Send paper comments in triplicate Securities Exchange Act of 1934 (the from the Exchange and executed at
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 various away options exchanges. The
Commission, 100 F Street NE., notice is hereby given that on December Exchange currently charges the
Washington, DC 20549–1090. 10, 2015, BATS Exchange, Inc. (the following rates for orders routed to
All submissions should refer to File ‘‘Exchange’’ or ‘‘BATS’’) filed with the certain other options exchanges: (i) Non-
Number SR–EDGX–2015–62. This file Securities and Exchange Commission Customer 6 orders in non-Penny Pilot
number should be included on the (‘‘Commission’’) the proposed rule Securities.7 routed to NYSE Arca, Inc.
subject line if email is used. To help the change as described in Items I, II and III (‘‘Arca’’), which yield fee code AG, are
Commission process and review your below, which Items have been prepared charged $0.95 per contract; (ii)
comments more efficiently, please use by the Exchange. The Exchange has Intermarket Sweep Orders (‘‘ISOs’’) in
only one method. The Commission will designated the proposed rule change as non-Penny Pilot Securities that are
post all comments on the Commission’s one establishing or changing a member directed to Nasdaq Options Market LLC
Internet Web site (http://www.sec.gov/ due, fee, or other charge imposed by the (‘‘NOM’’), Arca, or ISE Gemini, LLC
rules/sro.shtml). Copies of the Exchange under Section 19(b)(3)(A)(ii) (‘‘ISE Gemini’’) are charged $0.95 per
submission, all subsequent of the Act 3 and Rule 19b–4(f)(2) contract; (iii) ISOs directed to other
amendments, all written statements thereunder,4 which renders the
with respect to the proposed rule proposed rule change effective upon 5 The term ‘‘Member’’ is defined as ‘‘any
change that are filed with the filing with the Commission. The registered broker or dealer that has been admitted
to membership in the Exchange.’’ See Exchange
Commission, and all written Commission is publishing this notice to Rule 1.5(n).
mstockstill on DSK4VPTVN1PROD with NOTICES
communications relating to the solicit comments on the proposed rule 6 ‘‘Non-Customer’’ applies to any transaction that
proposed rule change between the change from interested persons. is not a Customer Order. ‘‘Customer’’ applies to any
Commission and any person, other than transaction identified by a Member for clearing in
those that may be withheld from the the Customer range at the OCC, excluding any
24 17 CFR 200.30–3(a)(12). transaction for a Broker Dealer or a ‘‘Professional’’
public in accordance with the 1 15 U.S.C. 78s(b)(1). as defined in Exchange Rule 16.1.
2 17 CFR 240.19b–4. 7 ‘‘Penny Pilot Securities’’ are those issues quoted
22 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A)(ii).
pursuant to Exchange Rule 21.5, Interpretation and
23 17 CFR 240.19b–4(f). 4 17 CFR 240.19b–4(f)(2). Policy .01.
VerDate Sep<11>2014 13:31 Dec 24, 2015 Jkt 238001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/80_FR_81115/page/4.svg)
Document Created: 2018-03-02 09:24:31
Document Modified: 2018-03-02 09:24:31
| 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 80867 |
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