80_FR_8409 80 FR 8378 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Increase the Fee for Orders Yielding Fee Code K

80 FR 8378 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Increase the Fee for Orders Yielding Fee Code K

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 31 (February 17, 2015)

Page Range8378-8380
FR Document2015-03077

Federal Register, Volume 80 Issue 31 (Tuesday, February 17, 2015)
[Federal Register Volume 80, Number 31 (Tuesday, February 17, 2015)]
[Notices]
[Pages 8378-8380]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03077]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74237; File No. SR-EDGA-2015-05]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Fee Schedule To Increase the Fee for Orders Yielding Fee Code K

February 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 January 28, 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.
---------------------------------------------------------------------------

    \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.

[[Page 8379]]

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 $0.0024 per share for Members' orders that yield fee code K. The 
Exchange proposes to amend its Fee Schedule to increase this fee to 
$0.0026 per share. The proposed change represents a pass through of 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 February 2015 fee change where PSX 
increased the fee to remove liquidity via routable order types it 
charges its customers, from a fee of $0.0024 per share to a fee of 
$0.0025 per share for Tape A securities and $0.0026 per share for Tapes 
B and C securities.\6\ When BATS Trading routes to PSX, it will now be 
charged a standard rate of $0.0025 per share for Tape A securities and 
$0.0026 per share for Tapes B and 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 $0.0026 per share to its Members. 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.
---------------------------------------------------------------------------

    \6\ See PSX, Equity Trader Alert 2014-95, Updates to PSX and BX 
Pricing for November 2014, dated October 27, 2014 [sic], available 
at http://www.nasdaqtrader.com/MicroNews.aspx?id=ETA2014-95.
    \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.
---------------------------------------------------------------------------

    The Exchange proposes to implement these amendments to its Fee 
Schedule on February 2, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\8\ in general, and 
furthers the objectives of Section 6(b)(4),\9\ 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 
pass through fee for Members' orders that yield Flag K from $0.0024 per 
share to $0.0026 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 PSX through BATS Trading. Prior to PSX's February 2015 fee change, 
PSX charged its members, which includes BATS Trading, a fee of $0.0024 
per share to remove liquidity using non-routable order types, which 
BATS Trading passed through to the Exchange and the Exchange charged to 
its Members. In February 2015, PSX increased the fee to remove 
liquidity via routable order types it charges its customers, from a fee 
of $0.0024 per share to a fee of $0.0025 per share for Tape A 
securities and $0.0026 per share for Tapes B and C securities.\10\ 
Therefore, the Exchange believes that its proposal to pass through a 
fee of $0.0026 per share for orders that yield Flag K is equitable and 
reasonable because it accounts for the pricing changes on PSX. In 
addition, the proposal allows the Exchange to 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ See supra note 6.
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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 EDGA'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 $0.0026 per share for Members' orders 
that yield Flag 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 \11\ and paragraph (f) of Rule 19b-4 
thereunder.\12\ 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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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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 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-2015-05 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-2015-05. 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

[[Page 8380]]

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-2015-05, and should be 
submitted on or before March 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03077 Filed 2-13-15; 8:45 am]
BILLING CODE 8011-01-P



                                              8378                             Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices

                                              its last day of trading will be Friday,                    Commission, 100 F Street NE.,                          ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              January 30, 2015.                                          Washington, DC 20549–1090.                             notice is hereby given that on January
                                              Non-Substantive and Organizational                         All submissions should refer to File                   28, 2015, EDGA Exchange, Inc. (the
                                              Changes to Fee Code and Associated                         Number SR–EDGX–2015–07. This file                      ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
                                              Fees                                                       number should be included on the                       Securities and Exchange Commission
                                                                                                         subject line if email is used. To help the             (‘‘Commission’’) the proposed rule
                                                The Exchange believes that non-                          Commission process and review your                     change as described in Items I, II and III
                                              substantive and organizational changes                     comments more efficiently, please use                  below, which Items have been prepared
                                              to the Fee Schedule would not affect                       only one method. The Commission will                   by the Exchange. The Exchange has
                                              intermarket nor intramarket competition                    post all comments on the Commission’s                  designated the proposed rule change as
                                              because none of these changes are                          Internet Web site (http://www.sec.gov/                 one establishing or changing a member
                                              designed to amend any fee or alter the                     rules/sro.shtml). Copies of the                        due, fee, or other charge imposed by the
                                              manner in which the Exchange assesses                      submission, all subsequent
                                              fees or calculates rebates. These changes                                                                         Exchange under Section 19(b)(3)(A)(ii)
                                                                                                         amendments, all written statements                     of the Act 3 and Rule 19b–4(f)(2)
                                              are intended to provide greater clarity to                 with respect to the proposed rule
                                              Members with regard to how the                                                                                    thereunder,4 which renders the
                                                                                                         change that are filed with the                         proposed rule change effective upon
                                              Exchange access fees and calculates                        Commission, and all written
                                              rebate.                                                                                                           filing with the Commission. The
                                                                                                         communications relating to the
                                                                                                                                                                Commission is publishing this notice to
                                              C. Self-Regulatory Organization’s                          proposed rule change between the
                                                                                                                                                                solicit comments on the proposed rule
                                              Statement on Comments on the                               Commission and any person, other than
                                                                                                         those that may be withheld from the                    change from interested persons.
                                              Proposed Rule Change Received From
                                              Members, Participants, or Others                           public in accordance with the                          I. Self-Regulatory Organization’s
                                                                                                         provisions of 5 U.S.C. 552, will be                    Statement of the Terms of Substance of
                                                The Exchange has not solicited, and                      available for Web site viewing and
                                              does not intend to solicit, comments on                                                                           the Proposed Rule Change
                                                                                                         printing in the Commission’s Public
                                              this proposed rule change. The                             Reference Room, 100 F Street NE.,                         The Exchange filed a proposal to
                                              Exchange has not received any                              Washington, DC 20549, on official                      amend its fees and rebates applicable to
                                              unsolicited written comments from                          business days between the hours of                     Members 5 of the Exchange pursuant to
                                              Members or other interested parties.                       10:00 a.m. and 3:00 p.m. Copies of the                 EDGA Rule 15.1(a) and (c) (‘‘Fee
                                              III. Date of Effectiveness of the                          filing also will be available for                      Schedule’’) to increase the fee for orders
                                              Proposed Rule Change and Timing for                        inspection and copying at the principal                yielding fee code K, which routes to
                                              Commission Action                                          office of the Exchange. All comments                   NASDAQ OMX PSX (‘‘PSX’’) using
                                                                                                         received will be posted without change;                ROUC or ROUE routing strategy.
                                                 The foregoing rule change has become
                                                                                                         the Commission does not edit personal
                                              effective pursuant to Section 19(b)(3)(A)                                                                            The text of the proposed rule change
                                                                                                         identifying information from
                                              of the Act 15 and paragraph (f) of Rule                                                                           is available at the Exchange’s Web site
                                                                                                         submissions. You should submit only
                                              19b–4 thereunder.16 At any time within                                                                            at www.batstrading.com, at the
                                                                                                         information that you wish to make
                                              60 days of the filing of the proposed rule                                                                        principal office of the Exchange, and at
                                                                                                         available publicly. All submissions
                                              change, the Commission summarily may                                                                              the Commission’s Public Reference
                                                                                                         should refer to File Number SR–EDGX–
                                              temporarily suspend such rule change if                                                                           Room.
                                                                                                         2015–07, and should be submitted on or
                                              it appears to the Commission that such
                                                                                                         before March 10, 2015.                                 II. Self-Regulatory Organization’s
                                              action is necessary or appropriate in the
                                              public interest, for the protection of                       For the Commission, by the Division of               Statement of the Purpose of, and
                                              investors, or otherwise in furtherance of                  Trading and Markets, pursuant to delegated             Statutory Basis for, the Proposed Rule
                                              the purposes of the Act.                                   authority.17                                           Change
                                                                                                         Brent J. Fields,
                                              IV. Solicitation of Comments                               Secretary.                                               In its filing with the Commission, the
                                                Interested persons are invited to                        [FR Doc. 2015–03076 Filed 2–13–15; 8:45 am]            Exchange included statements
                                              submit written data, views, and                            BILLING CODE 8011–01–P                                 concerning the purpose of and basis for
                                              arguments concerning the foregoing,                                                                               the proposed rule change and discussed
                                              including whether the proposed rule                                                                               any comments it received on the
                                              change is consistent with the Act.                         SECURITIES AND EXCHANGE                                proposed rule change. The text of these
                                              Comments may be submitted by any of                        COMMISSION                                             statements may be examined at the
                                              the following methods:                                                                                            places specified in Item IV below. The
                                                                                                         [Release No. 34–74237; File No. SR–EDGA–               Exchange has prepared summaries, set
                                              Electronic Comments
                                                                                                         2015–05]                                               forth in Sections A, B, and C below, of
                                                • Use the Commission’s Internet                                                                                 the most significant parts of such
                                              comment form (http://www.sec.gov/                          Self-Regulatory Organizations; EDGA                    statements.
                                              rules/sro.shtml); or                                       Exchange, Inc.; Notice of Filing and
                                                • Send an email to rule-comments@                        Immediate Effectiveness of a Proposed                    1 15 U.S.C. 78s(b)(1).
                                              sec.gov. Please include File Number SR–                    Rule Change To Amend the Fee                             2 17 CFR 240.19b–4.
                                              EDGX–2015–07 on the subject line.                          Schedule To Increase the Fee for                         3 15 U.S.C. 78s(b)(3)(A)(ii).
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                         Orders Yielding Fee Code K                               4 17 CFR 240.19b–4(f)(2).
                                              Paper Comments                                                                                                      5 The term ‘‘Member’’ is defined as ‘‘any
                                                                                                         February 10, 2015.
                                                • Send paper comments in triplicate                                                                             registered broker or dealer, or any person associated
                                              to Secretary, Securities and Exchange                        Pursuant to Section 19(b)(1) of the                  with a registered broker or dealer, that has been
                                                                                                         Securities Exchange Act of 1934 (the                   admitted to membership in the Exchange. A
                                                                                                                                                                Member will have the status of a ‘‘member’’ of the
                                                15 15   U.S.C. 78s(b)(3)(A).                                                                                    Exchange as that term is defined in Section 3(a)(3)
                                                16 17   CFR 240.19b–4(f).                                  17 17   CFR 200.30–3(a)(12).                         of the Act.’’ See Exchange Rule 1.5(n).



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                                                                          Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices                                              8379

                                              A. Self-Regulatory Organization’s                       $0.0024 per share to $0.0026 per share                 proposed rate would apply uniformly to
                                              Statement of the Purpose of, and the                    represents an equitable allocation of                  all Members.
                                              Statutory Basis for, the Proposed Rule                  reasonable dues, fees, and other charges
                                                                                                                                                             C. Self-Regulatory Organization’s
                                              Change                                                  among Members and other persons
                                                                                                                                                             Statement on Comments on the
                                                                                                      using its facilities because the Exchange
                                              1. Purpose                                                                                                     Proposed Rule Change Received From
                                                                                                      does not levy additional fees or offer
                                                 The Exchange proposes to increase                                                                           Members, Participants, or Others
                                                                                                      additional rebates for orders that it
                                              the fee for orders yielding fee code K,                 routes to PSX through BATS Trading.                      The Exchange has not solicited, and
                                              which routes to PSX using ROUC or                       Prior to PSX’s February 2015 fee change,               does not intend to solicit, comments on
                                              ROUE routing strategy. In securities                    PSX charged its members, which                         this proposed rule change. The
                                              priced at or above $1.00, the Exchange                  includes BATS Trading, a fee of $0.0024                Exchange has not received any
                                              currently assesses a fee of $0.0024 per                 per share to remove liquidity using non-               unsolicited written comments from
                                              share for Members’ orders that yield fee                routable order types, which BATS                       Members or other interested parties.
                                              code K. The Exchange proposes to                        Trading passed through to the Exchange
                                              amend its Fee Schedule to increase this                                                                        III. Date of Effectiveness of the
                                                                                                      and the Exchange charged to its                        Proposed Rule Change and Timing for
                                              fee to $0.0026 per share. The proposed                  Members. In February 2015, PSX
                                              change represents a pass through of the                                                                        Commission Action
                                                                                                      increased the fee to remove liquidity via
                                              rate that BATS Trading, Inc. (‘‘BATS                    routable order types it charges its                       The foregoing rule change has become
                                              Trading’’), the Exchange’s affiliated                   customers, from a fee of $0.0024 per                   effective pursuant to Section 19(b)(3)(A)
                                              routing broker-dealer, is charged for                   share to a fee of $0.0025 per share for                of the Act 11 and paragraph (f) of Rule
                                              routing orders to PSX when it does not                  Tape A securities and $0.0026 per share                19b–4 thereunder.12 At any time within
                                              qualify for a volume tiered reduced fee.                for Tapes B and C securities.10                        60 days of the filing of the proposed rule
                                              The proposed change is in response to                   Therefore, the Exchange believes that its              change, the Commission summarily may
                                              PSX’s February 2015 fee change where                    proposal to pass through a fee of                      temporarily suspend such rule change if
                                              PSX increased the fee to remove                         $0.0026 per share for orders that yield                it appears to the Commission that such
                                              liquidity via routable order types it                   Flag K is equitable and reasonable                     action is necessary or appropriate in the
                                              charges its customers, from a fee of                    because it accounts for the pricing                    public interest, for the protection of
                                              $0.0024 per share to a fee of $0.0025 per               changes on PSX. In addition, the                       investors, or otherwise in furtherance of
                                              share for Tape A securities and $0.0026                 proposal allows the Exchange to charge                 the purposes of the Act.
                                              per share for Tapes B and C securities.6
                                                                                                      its Members a pass-through rate for                    IV. Solicitation of Comments
                                              When BATS Trading routes to PSX, it
                                                                                                      orders that are routed to PSX.
                                              will now be charged a standard rate of                                                                           Interested persons are invited to
                                                                                                      Furthermore, the Exchange notes that
                                              $0.0025 per share for Tape A securities                                                                        submit written data, views, and
                                                                                                      routing through BATS Trading is
                                              and $0.0026 per share for Tapes B and                                                                          arguments concerning the foregoing,
                                                                                                      voluntary. Lastly, the Exchange also
                                              C securities.7 BATS Trading will pass                                                                          including whether the proposed rule
                                                                                                      believes that the proposed amendment
                                              through this rate to the Exchange and                                                                          change is consistent with the Act.
                                                                                                      is non-discriminatory because it applies
                                              the Exchange, in turn, will pass through                                                                       Comments may be submitted by any of
                                                                                                      uniformly to all Members.
                                              of a rate of $0.0026 per share to its                                                                          the following methods:
                                              Members. The proposed increase to the                   B. Self-Regulatory Organization’s
                                              fee under fee code K would enable the                   Statement on Burden on Competition                     Electronic Comments
                                              Exchange to equitably allocate its costs                                                                         • Use the Commission’s Internet
                                              among all Members utilizing fee code K.                    These proposed rule changes do not                  comment form (http://www.sec.gov/
                                                 The Exchange proposes to implement                   impose any burden on competition that                  rules/sro.shtml); or
                                              these amendments to its Fee Schedule                    is not necessary or appropriate in                       • Send an email to rule-comments@
                                              on February 2, 2015.                                    furtherance of the purposes of the Act.                sec.gov. Please include File Number SR–
                                                                                                      The Exchange does not believe that any                 EDGA–2015–05 on the subject line.
                                              2. Statutory Basis                                      of these changes represent a significant
                                                 The Exchange believes that the                       departure from previous pricing offered                Paper Comments
                                              proposed rule change is consistent with                 by the Exchange or pricing offered by                    • Send paper comments in triplicate
                                              the objectives of Section 6 of the Act,8                the Exchange’s competitors.                            to Secretary, Securities and Exchange
                                              in general, and furthers the objectives of              Additionally, Members may opt to                       Commission, 100 F Street NE.,
                                              Section 6(b)(4),9 in particular, as it is               disfavor EDGA’s pricing if they believe                Washington, DC 20549–1090.
                                              designed to provide for the equitable                   that alternatives offer them better value.             All submissions should refer to File
                                              allocation of reasonable dues, fees and                 Accordingly, the Exchange does not                     Number SR–EDGA–2015–05. This file
                                              other charges among its Members and                     believe that the proposed changes will                 number should be included on the
                                              other persons using its facilities. The                 impair the ability of Members or                       subject line if email is used. To help the
                                              Exchange believes that its proposal to                  competing venues to maintain their                     Commission process and review your
                                              increase the pass through fee for                       competitive standing in the financial                  comments more efficiently, please use
                                              Members’ orders that yield Flag K from                  markets. The Exchange believes that its                only one method. The Commission will
                                                                                                      proposal to pass through a fee of                      post all comments on the Commission’s
                                                6 See PSX, Equity Trader Alert 2014–95, Updates
                                                                                                      $0.0026 per share for Members’ orders                  Internet Web site (http://www.sec.gov/
                                              to PSX and BX Pricing for November 2014, dated
                                              October 27, 2014 [sic], available at http://
                                                                                                      that yield Flag K would increase                       rules/sro.shtml). Copies of the
tkelley on DSK3SPTVN1PROD with NOTICES




                                              www.nasdaqtrader.com/                                   intermarket competition because it                     submission, all subsequent
                                              MicroNews.aspx?id=ETA2014–95.                           offers customers an alternative means to               amendments, all written statements
                                                7 The Exchange notes that to the extent BATS
                                                                                                      route to PSX. The Exchange believes                    with respect to the proposed rule
                                              Trading does or does not achieve any volume tiered      that its proposal would not burden
                                              reduced fee on PSX, its rate for fee code K will not                                                           change that are filed with the
                                              change.                                                 intramarket competition because the
                                                8 15 U.S.C. 78f.                                                                                               11 15   U.S.C. 78s(b)(3)(A).
                                                9 15 U.S.C. 78f(b)(4).                                  10 See   supra note 6.                                 12 17   CFR 240.19b–4(f).



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                                              8380                              Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices

                                              Commission, and all written                              proposed rule change effective upon                     strategy; (iii) delete fee codes M and U,
                                              communications relating to the                           filing with the Commission. The                         as well as remove the ROLF routing
                                              proposed rule change between the                         Commission is publishing this notice to                 strategy from Footnote 7, all of which
                                              Commission and any person, other than                    solicit comments on the proposed rule                   route to LavaFlow; and (iv) make a
                                              those that may be withheld from the                      change from interested persons.                         number of non-substantive and
                                              public in accordance with the                                                                                    organizational amendments.
                                                                                                       I. Self-Regulatory Organization’s
                                              provisions of 5 U.S.C. 552, will be
                                                                                                       Statement of the Terms of Substance of                  ADV and TCV Definitions
                                              available for Web site viewing and
                                                                                                       the Proposed Rule Change                                   Earlier this year, the Exchange and its
                                              printing in the Commission’s Public
                                              Reference Room, 100 F Street NE.,                           The Exchange filed a proposal to                     affiliate, EDGX Exchange, Inc. (‘‘EDGX’’)
                                              Washington, DC 20549, on official                        amend its fees and rebates applicable to                received approval to effect a merger (the
                                              business days between the hours of                       Members 5 of the Exchange pursuant to                   ‘‘Merger’’) of the Exchange’s parent
                                              10:00 a.m. and 3:00 p.m. Copies of the                   EDGA Rule 15.1(a) and (c) (‘‘Fee                        company, Direct Edge Holdings LLC,
                                              filing also will be available for                        Schedule’’) to: (i) Amend the definitions               with BATS Global Markets, Inc., the
                                              inspection and copying at the principal                  of ADV and TCV to remove a provision                    parent of BATS (together with BATS,
                                              office of the Exchange. All comments                     to exclude shares on each day from                      EDGA and EDGX, the ‘‘BGM Affiliated
                                              received will be posted without change;                  January 12, 2015 up to and including                    Exchanges’’).6 In the context of the
                                              the Commission does not edit personal                    January 16, 2015; (ii) update the                       Merger, the BGM Affiliated Exchanges
                                              identifying information from                             description of fee code D to include                    worked to migrate EDGX and EDGA
                                              submissions. You should submit only                      routing using the RDOT routing strategy;                onto the BATS technology platform, and
                                              information that you wish to make                        (iii) delete fee codes M and U, as well                 align certain system functionality,
                                              available publicly. All submissions                      as remove the ROLF routing strategy                     retaining only intended differences
                                              should refer to File Number SR–EDGA–                     from Footnote 7, all of which route to                  between the BGM Affiliated Exchanges.
                                              2015–05, and should be submitted on or                   LavaFlow; and (iv) make a number of                     The migration of EDGX and EDGA onto
                                              before March 10, 2015.                                   non-substantive and organizational                      the BATS technology platform occurred
                                                                                                       amendments.                                             during the week of January 12, 2015.
                                                For the Commission, by the Division of
                                              Trading and Markets, pursuant to delegated
                                                                                                          The text of the proposed rule change                    Currently, the Exchange determines
                                              authority.13                                             is available at the Exchange’s Web site                 the tiered pricing that it will provide to
                                              Brent J. Fields,
                                                                                                       at www.batstrading.com, at the                          Members according to the Exchange’s
                                                                                                       principal office of the Exchange, and at                tiered pricing structure, which is based
                                              Secretary.
                                                                                                       the Commission’s Public Reference                       on the calculation of ADV 7 and/or
                                              [FR Doc. 2015–03077 Filed 2–13–15; 8:45 am]
                                                                                                       Room.                                                   average daily TCV.8 The Exchange
                                              BILLING CODE 8011–01–P
                                                                                                       II. Self-Regulatory Organization’s                      currently excludes from its calculation
                                                                                                       Statement of the Purpose of, and                        of ADV and TCV those shares traded on
                                              SECURITIES AND EXCHANGE                                  Statutory Basis for, the Proposed Rule                  each day from January 12, 2015 up to
                                              COMMISSION                                               Change                                                  and including January 16, 2015 in order
                                                                                                                                                               to avoid penalizing Members that,
                                              [Release No. 34–74238; File No. SR–EDGA–                    In its filing with the Commission, the
                                                                                                                                                               because of the technology migration that
                                              2015–07]                                                 Exchange included statements
                                                                                                                                                               occurred during the week of January 12,
                                                                                                       concerning the purpose of and basis for
                                              Self-Regulatory Organizations; EDGA                      the proposed rule change and discussed                  2015, did not participate on the
                                              Exchange, Inc.; Notice of Filing and                     any comments it received on the                         Exchange during that week to the extent
                                              Immediate Effectiveness of a Proposed                    proposed rule change. The text of these                 that they might have otherwise
                                              Rule Change Related to Fees for Use                      statements may be examined at the                       participated.9 As described above, such
                                              of the Exchange                                          places specified in Item IV below. The                  exclusion only applied to tier
                                                                                                       Exchange has prepared summaries, set                    calculations in January, meaning that
                                              February 10, 2015.                                                                                               the language has no effect moving
                                                                                                       forth in Sections A, B, and C below, of
                                                 Pursuant to Section 19(b)(1) of the                                                                           forward. As such, the Exchange
                                                                                                       the most significant parts of such
                                              Securities Exchange Act of 1934 (the                                                                             proposes to remove the provisions from
                                                                                                       statements.
                                              ‘‘Act’’),1 and Rule 19b–4 thereunder,2                                                                           the definitions of ADV and TCV that
                                              notice is hereby given that on January                   A. Self-Regulatory Organization’s                       exclude trading activity that occurred
                                              30, 2015, EDGA Exchange, Inc. (the                       Statement of the Purpose of, and the                    on each day from January 12, 2015 up
                                              ‘‘Exchange’’ or ‘‘EDGA’’) filed with the                 Statutory Basis for, the Proposed Rule
                                              Securities and Exchange Commission                       Change                                                     6 See Securities Exchange Act Release No. 71449

                                              (‘‘Commission’’) the proposed rule                                                                               (January 30, 2014), 79 FR 6961 (February 5, 2014)
                                                                                                       1. Purpose                                              (SR–EDGX–2013–43; SR–EDGA–2013–34).
                                              change as described in Items I, II and III                                                                          7 As provided in the Fee Schedule, ‘‘ADV’’ is
                                              below, which Items have been prepared                       The Exchange proposes to: (i) Amend
                                                                                                                                                               currently defined as ‘‘average daily volume
                                              by the Exchange. The Exchange has                        the definitions of ADV and TCV to                       calculated as the number of shares added to,
                                              designated the proposed rule change as                   remove a provision to exclude shares on                 removed from, or routed by, the Exchange, or any
                                              one establishing or changing a member                    each day from January 12, 2015 up to                    combination or subset thereof, per day. ADV is
                                                                                                       and including January 16, 2015; (ii)                    calculated on a monthly basis.’’
                                              due, fee, or other charge imposed by the                                                                            8 As provided in the Fee Schedule, ‘‘TCV’’ is
                                              Exchange under Section 19(b)(3)(A)(ii)                   update the description of fee code D to                 currently defined as ‘‘total consolidated volume
                                              of the Act 3 and Rule 19b–4(f)(2)                        include routing using the RDOT routing                  calculated as the volume reported by all exchanges
tkelley on DSK3SPTVN1PROD with NOTICES




                                              thereunder,4 which renders the                                                                                   and trade reporting facilities to a consolidated
                                                                                                         5 The term ‘‘Member’’ is defined as ‘‘any             transaction reporting plan for the month for which
                                                13 17                                                  registered broker or dealer, or any person associated   the fees apply.’’
                                                      CFR 200.30–3(a)(12).
                                                1 15 U.S.C. 78s(b)(1).
                                                                                                       with a registered broker or dealer, that has been          9 See Securities Exchange Act Release Nos. 74025

                                                                                                       admitted to membership in the Exchange. A               (January 9, 2015), 80 FR 2154 (January 15, 2015)
                                                2 17 CFR 240.19b–4.
                                                                                                       Member will have the status of a ‘‘member’’ of the      (SR–EDGA–2014–36); and 74021 [sic] (January 9,
                                                3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                       Exchange as that term is defined in Section 3(a)(3)     2015), 80 FR 2142 (January 15, 2015) (SR–EDGX–
                                                4 17 CFR 240.19b–4(f)(2).                              of the Act.’’ See Exchange Rule 1.5(n).                 2014–37).



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Document Created: 2015-12-18 13:19:13
Document Modified: 2015-12-18 13:19:13
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 8378 

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