80_FR_9837 80 FR 9801 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 8.15 Entitled “Imposition of Fines for Minor Violation(s) of Rules”

80 FR 9801 - Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 8.15 Entitled “Imposition of Fines for Minor Violation(s) of Rules”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 36 (February 24, 2015)

Page Range9801-9803
FR Document2015-03668

Federal Register, Volume 80 Issue 36 (Tuesday, February 24, 2015)
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9801-9803]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03668]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74295; File No. SR-EDGA-2015-11]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 8.15 Entitled ``Imposition of Fines for Minor Violation(s) of 
Rules''

February 18, 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 February 5, 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 and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 Rule 8.15 entitled 
``Imposition of Fines for Minor Violation(s) of Rules.'' 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 9802]]

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 Rule 8.15 in order to make it 
substantively identical to the corresponding rules on BATS Exchange, 
Inc. (``BATS'') and BATS Y-Exchange, Inc. (``BYX''), as further 
described below. Last year, the Exchange and its affiliate EDGX 
Exchange, Inc. (``EDGX'') received approval to effect a merger (the 
``Merger'') of the Exchange's parent company, Direct Edge Holdings LLC, 
with BATS Global Markets, Inc., the parent of BATS and BYX (together 
with BATS, BYX, EDGX and EDGA, the ``BGM Affiliated Exchanges'').\5\ In 
the context of the Merger, the BGM Affiliated Exchanges are working to 
align certain rules, retaining only intended differences between the 
BGM Affiliated Exchanges. Thus, the proposal set forth below is 
intended to amend Rule 8.15 in order to make it substantively identical 
to corresponding rules on BATS, BYX, and EDGX.\6\
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    \5\ See Securities Exchange Act Release No. 71449 (January 30, 
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
    \6\ The Exchange understands that BATS, BYX, and EDGX intend to 
file proposed rule changes with the Commission to adopt 
substantively identical rules.
---------------------------------------------------------------------------

    Currently, paragraph (d) of Interpretation and Policy to Rule 8.15 
includes Rule 2.5 Interpretation .04: Firm Element of Continuing 
Education Requirement (the ``CE Rule'') under the list of Exchange rule 
violations and recommended fine schedule pursuant to Rule 8.15 related 
to the imposition of fines for minor violations of rules (the 
``MRVP''). The Exchange, however, has no specific reference to the firm 
element of the continuing education requirements under the CE Rule. 
Further, BATS and BYX are proposing to adopt rules that are 
substantively identical to the Exchange's MRVP, except that BATS and 
BYX are not proposing to add a provision covering the CE Rule.\7\ As 
such, the Exchange is proposing to eliminate paragraph (d) of 
Interpretation and Policy .01 to Rule 8.15.
---------------------------------------------------------------------------

    \7\ The Exchange notes that BATS and BYX do not currently and 
are not going to propose to include a provision to cover the CE Rule 
currently included in the Exchange's MRVP.
---------------------------------------------------------------------------

    The Exchange is also proposing to amend Rule 8.15(a). Currently, 
Rule 8.15(a) provides that, for the purposes of imposing fines pursuant 
to Interpretation .02 of Rule 4.2, the Exchange may aggregate 
individual violations of particular rules and treat such violations as 
a single offense, provided that such aggregation is based upon a 
comprehensive automated surveillance program. The Exchange has never 
aggregated violations under this provision and does not anticipate 
doing so in the future due to the content of Interpretation .02 of Rule 
4.2, which could not, because of its nature, be based on a 
comprehensive automated surveillance program. Interpretation and Policy 
.02 of Rule 4.2 is related to the requirement to furnish Exchange-
related order, market and transaction data. As the Exchange does not 
currently require Members to provide such information and because 
compliance with a requirement to provide data would not likely be 
reviewed based on an automated surveillance (though surveillance would 
likely be performed on such data), the Exchange believes the reference 
to this provision in Rule 8.15 is no longer necessary. Based on the 
foregoing, and in order to conform rules across each of the BGM 
Affiliated Exchanges, the Exchange is proposing to remove this 
provision from Rule 8.15(a).
    Finally, the Exchange is proposing to make several non-substantive 
changes to Rule 8.15. Specifically, in coordination with the 
elimination of paragraph (d) of Interpretation and Policy .01 to Rule 
8.15, the Exchange is proposing to make several corresponding and non-
substantive changes to the numbering of the rule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act \8\ and furthers the objectives of Section 
6(b)(5) of the Act,\9\ in that it is designed promote just and 
equitable principles of trade, remove impediments to, and perfect the 
mechanism of, a free and open market and a national market system, and, 
in general, protect investors and the public interest. Specifically, 
the Exchange believes that the proposed changes to Rule 8.15(a) and the 
deletion of paragraph (d) of Interpretation and Policy .01 to Rule 8.15 
contribute to the protection of investors and the public interest by 
removing unnecessary language from Exchange Rules and correcting 
certain cross-references therein. The Exchange believes that these 
changes will help to make Exchange Rules clearer and avoid confusion 
for all participants on the Exchange.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Further, as mentioned above, the proposed rule changes, combined 
with the planned filings for BATS, BYX, and EDGX,\10\ would allow the 
BGM Affiliated Exchanges to provide a consistent set of rules as it 
relates to the imposition of fines for minor violations of rules across 
each of the exchanges. Consistent rules, in turn, will simplify the 
application of the Exchange's regulatory program for Members of the 
Exchange that are also participants on BATS, BYX, and/or EDGX. The 
proposed rule change would provide greater harmonization between rules 
of similar purpose on the BGM Affiliated Exchanges, resulting in 
greater uniformity and less burdensome and more efficient regulatory 
compliance. As such, the proposed rule change would foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities and would remove impediments to and perfect the mechanism of 
a free and open market and a national market system.
---------------------------------------------------------------------------

    \10\ See supra notes 6 and 7.
---------------------------------------------------------------------------

    Finally, the Exchange believes that the non-substantive changes 
described above will contribute to the protection of investors and the 
public interest by helping to avoid confusion with respect to Exchange 
rules by creating a consistent numbering system in its Rules.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the act. To the contrary, allowing the 
Exchange to implement substantively identical rules related to the 
imposition of fines for minor violations of rules across each of the 
BGM Affiliated Exchanges does not present any competitive issues, but 
rather is designed to provide greater harmonization among Exchange, 
BATS, BYX, and EDGX rules of similar purpose, resulting in less 
burdensome and more efficient regulatory compliance for common members 
of the BGM Affiliated Exchanges and an enhanced ability of the BGM 
Affiliated Exchanges to fairly and efficiently regulate members, which 
will further enhance competition.

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.

[[Page 9803]]

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and paragraph 
of Rule 19b-4(f)(6) thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange stated that waiver of this requirement is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to have consistent rules related to 
minor violations across each of the BGM Affiliated Exchanges, which it 
believes will both more consistently and effectively regulate members 
of the BGM Affiliated Exchanges as well as reduce the regulatory burden 
on Members of the Exchange that are also members of EDGX, BYX and/or 
BZX. The Commission believes that the proposed rule change presents no 
novel issues and that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission designates the proposed rule change to be 
operative upon filing.\13\
---------------------------------------------------------------------------

    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 No. SR-EDGA-2015-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-EDGA-2015-11. 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 such filing will also be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-EDGA-2015-11 and should be 
submitted on or before March 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-03668 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                           9801

                                              of last sale information similar to the                     Comments may be submitted by any of                    SECURITIES AND EXCHANGE
                                              BATS One Feed.57 The existence of                           the following methods:                                 COMMISSION
                                              these competing data products
                                              demonstrates that there is ample,                           Electronic Comments
                                                                                                                                                                 [Release No. 34–74295; File No. SR–EDGA–
                                              existing competition for products such                        • Use the Commission’s Internet                      2015–11]
                                              as the BATS One Feed and the fees                           comment form (http://www.sec.gov/
                                              associated by such products is                              rules/sro.shtml); or                                   Self-Regulatory Organizations; EDGA
                                              constrained by competition.                                                                                        Exchange, Inc.; Notice of Filing and
                                                 In establishing the proposed fees, the                     • Send an email to rule-comments@                    Immediate Effectiveness of a Proposed
                                              Exchange considered the                                     sec.gov. Please include File Number SR–                Rule Change To Amend Rule 8.15
                                              competitiveness of the market for                           BYX–2015–09 on the subject line.                       Entitled ‘‘Imposition of Fines for Minor
                                              proprietary data and all of the                                                                                    Violation(s) of Rules’’
                                                                                                          Paper Comments
                                              implications of that competition. The
                                                                                                                                                                 February 18, 2015.
                                              Exchange believes that it has considered                      • Send paper comments in triplicate
                                              all relevant factors and has not                            to Secretary, Securities and Exchange                     Pursuant to Section 19(b)(1) of the
                                              considered irrelevant factors in order to                   Commission, 100 F Street NE.,                          Securities Exchange Act of 1934 (the
                                              establish fair, reasonable, and not                         Washington, DC 20549–1090.                             ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              unreasonably discriminatory fees and an                                                                            notice is hereby given that on February
                                              equitable allocation of fees among all                      All submissions should refer to File                   5, 2015, EDGA Exchange, Inc. (the
                                              users. The existence of alternatives to                     Number SR–BYX–2015–09. This file                       ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
                                              the BATS One Feed, including the                            number should be included on the                       Securities and Exchange Commission
                                              existing underlying feeds, consolidated                     subject line if email is used. To help the             (‘‘Commission’’) the proposed rule
                                              data, and proprietary data from other                       Commission process and review your                     change as described in Items I and II
                                              sources, ensures that the Exchange                          comments more efficiently, please use                  below, which Items have been prepared
                                              cannot set unreasonable fees, or fees                       only one method. The Commission will                   by the Exchange. The Exchange has
                                              that are unreasonably discriminatory,                       post all comments on the Commission’s                  designated this proposal as a ‘‘non-
                                              when vendors and subscribers can elect                      Internet Web site (http://www.sec.gov/                 controversial’’ proposed rule change
                                              these alternatives or choose not to                         rules/sro.shtml). Copies of the                        pursuant to Section 19(b)(3)(A) of the
                                              purchase a specific proprietary data                        submission, all subsequent                             Act 3 and Rule 19b–4(f)(6)(iii)
                                              product if its cost to purchase is not                      amendments, all written statements                     thereunder,4 which renders it effective
                                              justified by the returns any particular                     with respect to the proposed rule                      upon filing with the Commission. The
                                              vendor or subscriber would achieve                          change that are filed with the                         Commission is publishing this notice to
                                              through the purchase.                                       Commission, and all written                            solicit comments on the proposed rule
                                              C. Self-Regulatory Organization’s                           communications relating to the                         change from interested persons.
                                              Statement on Comments on the                                proposed rule change between the                       I. Self-Regulatory Organization’s
                                              Proposed Rule Change Received From                          Commission and any person, other than                  Statement of the Terms of Substance of
                                              Members, Participants or Others                             those that may be withheld from the                    the Proposed Rule Change
                                                The Exchange has neither solicited                        public in accordance with the
                                                                                                          provisions of 5 U.S.C. 552, will be                      The Exchange filed a proposal to
                                              nor received written comments on the
                                                                                                          available for Web site viewing and                     amend Rule 8.15 entitled ‘‘Imposition of
                                              proposed rule change.
                                                                                                          printing in the Commission’s Public                    Fines for Minor Violation(s) of Rules.’’
                                              III. Date of Effectiveness of the                                                                                  The text of the proposed rule change is
                                                                                                          Reference Room, 100 F Street NE.,
                                              Proposed Rule Change and Timing for                                                                                available at the Exchange’s Web site at
                                                                                                          Washington, DC 20549, on official
                                              Commission Action                                                                                                  www.batstrading.com, at the principal
                                                                                                          business days between the hours of
                                                 The foregoing rule change has become                                                                            office of the Exchange, and at the
                                                                                                          10:00 a.m. and 3:00 p.m. Copies of the                 Commission’s Public Reference Room.
                                              effective pursuant to Section                               filing also will be available for
                                              19(b)(3)(A)(ii) of the Act 58 and                           inspection and copying at the principal                II. Self-Regulatory Organization’s
                                              paragraph (f)(2) of Rule 19b–4                              office of BYX. All comments received                   Statement of the Purpose of, and
                                              thereunder.59 At any time within 60                         will be posted without change; the                     Statutory Basis for, the Proposed Rule
                                              days of the filing of the proposed rule                     Commission does not edit personal                      Change
                                              change, the Commission summarily may                        identifying information from
                                              temporarily suspend such rule change if                                                                              In its filing with the Commission, the
                                                                                                          submissions. You should submit only                    Exchange included statements
                                              it appears to the Commission that such                      information that you wish to make
                                              action is necessary or appropriate in the                                                                          concerning the purpose of and basis for
                                                                                                          available publicly. All submissions                    the proposed rule change and discussed
                                              public interest, for the protection of
                                                                                                          should refer to File Number SR–BYX–                    any comments it received on the
                                              investors, or otherwise in furtherance of
                                                                                                          2015–09 and should be submitted on or                  proposed rule change. The text of these
                                              the purposes of the Act.
                                                                                                          before March 17, 2015.                                 statements may be examined at the
                                              IV. Solicitation of Comments                                  For the Commission, by the Division of               places specified in Item IV below. The
                                                Interested persons are invited to                         Trading and Markets, pursuant to delegated             Exchange has prepared summaries, set
                                              submit written data, views, and                             authority.60                                           forth in Sections A, B, and C below, of
tkelley on DSK3SPTVN1PROD with NOTICES




                                              arguments concerning the foregoing,                         Brent J. Fields,                                       the most significant parts of such
                                              including whether the proposed rule                         Secretary.
                                                                                                                                                                 statements.
                                              change is consistent with the Act.
                                                                                                          [FR Doc. 2015–03655 Filed 2–23–15; 8:45 am]
                                                                                                                                                                   1 15 U.S.C. 78s(b)(1).
                                                57 Id.                                                    BILLING CODE 8011–01–P                                   2 17 CFR 240.19b–4.
                                                58 15    U.S.C. 78s(b)(3)(A)(ii).                                                                                  3 15 U.S.C. 78s(b)(3)(A).
                                                59 17    CFR 240.19b–4(f)(2).                               60 17   CFR 200.30–3(a)(12).                           4 17 CFR 240.19b–4(f)(6)(iii).




                                         VerDate Sep<11>2014       17:31 Feb 23, 2015   Jkt 235001   PO 00000   Frm 00114    Fmt 4703   Sfmt 4703   E:\FR\FM\24FEN1.SGM   24FEN1


                                              9802                        Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices

                                              A. Self-Regulatory Organization’s                       such violations as a single offense,                    EDGX,10 would allow the BGM
                                              Statement of the Purpose of, and                        provided that such aggregation is based                 Affiliated Exchanges to provide a
                                              Statutory Basis for, the Proposed Rule                  upon a comprehensive automated                          consistent set of rules as it relates to the
                                              Change                                                  surveillance program. The Exchange has                  imposition of fines for minor violations
                                                                                                      never aggregated violations under this                  of rules across each of the exchanges.
                                              1. Purpose                                              provision and does not anticipate doing                 Consistent rules, in turn, will simplify
                                                 The Exchange proposes to amend                       so in the future due to the content of                  the application of the Exchange’s
                                              Rule 8.15 in order to make it                           Interpretation .02 of Rule 4.2, which                   regulatory program for Members of the
                                              substantively identical to the                          could not, because of its nature, be                    Exchange that are also participants on
                                              corresponding rules on BATS Exchange,                   based on a comprehensive automated                      BATS, BYX, and/or EDGX. The
                                              Inc. (‘‘BATS’’) and BATS Y-Exchange,                    surveillance program. Interpretation and                proposed rule change would provide
                                              Inc. (‘‘BYX’’), as further described                    Policy .02 of Rule 4.2 is related to the                greater harmonization between rules of
                                              below. Last year, the Exchange and its                  requirement to furnish Exchange-related                 similar purpose on the BGM Affiliated
                                              affiliate EDGX Exchange, Inc. (‘‘EDGX’’)                order, market and transaction data. As                  Exchanges, resulting in greater
                                              received approval to effect a merger (the               the Exchange does not currently require                 uniformity and less burdensome and
                                              ‘‘Merger’’) of the Exchange’s parent                    Members to provide such information                     more efficient regulatory compliance.
                                              company, Direct Edge Holdings LLC,                      and because compliance with a                           As such, the proposed rule change
                                              with BATS Global Markets, Inc., the                     requirement to provide data would not                   would foster cooperation and
                                              parent of BATS and BYX (together with                   likely be reviewed based on an                          coordination with persons engaged in
                                              BATS, BYX, EDGX and EDGA, the                           automated surveillance (though                          facilitating transactions in securities and
                                              ‘‘BGM Affiliated Exchanges’’).5 In the                  surveillance would likely be performed                  would remove impediments to and
                                              context of the Merger, the BGM                          on such data), the Exchange believes the                perfect the mechanism of a free and
                                              Affiliated Exchanges are working to                     reference to this provision in Rule 8.15                open market and a national market
                                              align certain rules, retaining only                     is no longer necessary. Based on the                    system.
                                              intended differences between the BGM                    foregoing, and in order to conform rules
                                              Affiliated Exchanges. Thus, the proposal                across each of the BGM Affiliated                         Finally, the Exchange believes that
                                              set forth below is intended to amend                    Exchanges, the Exchange is proposing to                 the non-substantive changes described
                                              Rule 8.15 in order to make it                           remove this provision from Rule 8.15(a).                above will contribute to the protection
                                              substantively identical to corresponding                   Finally, the Exchange is proposing to                of investors and the public interest by
                                              rules on BATS, BYX, and EDGX.6                          make several non-substantive changes to                 helping to avoid confusion with respect
                                                 Currently, paragraph (d) of                          Rule 8.15. Specifically, in coordination                to Exchange rules by creating a
                                              Interpretation and Policy to Rule 8.15                  with the elimination of paragraph (d) of                consistent numbering system in its
                                              includes Rule 2.5 Interpretation .04:                   Interpretation and Policy .01 to Rule                   Rules.
                                              Firm Element of Continuing Education                    8.15, the Exchange is proposing to make                 B. Self-Regulatory Organization’s
                                              Requirement (the ‘‘CE Rule’’) under the                 several corresponding and non-                          Statement on Burden on Competition
                                              list of Exchange rule violations and                    substantive changes to the numbering of
                                              recommended fine schedule pursuant to                   the rule.                                                 The Exchange does not believe that
                                              Rule 8.15 related to the imposition of                  2. Statutory Basis                                      the proposed rule change will impose
                                              fines for minor violations of rules (the                                                                        any burden on competition not
                                                                                                         The Exchange believes that the                       necessary or appropriate in furtherance
                                              ‘‘MRVP’’). The Exchange, however, has
                                                                                                      proposed rule change is consistent with                 of the purposes of the act. To the
                                              no specific reference to the firm element
                                                                                                      Section 6(b) of the Act 8 and furthers the              contrary, allowing the Exchange to
                                              of the continuing education
                                                                                                      objectives of Section 6(b)(5) of the Act,9              implement substantively identical rules
                                              requirements under the CE Rule.
                                                                                                      in that it is designed promote just and                 related to the imposition of fines for
                                              Further, BATS and BYX are proposing
                                                                                                      equitable principles of trade, remove                   minor violations of rules across each of
                                              to adopt rules that are substantively
                                                                                                      impediments to, and perfect the                         the BGM Affiliated Exchanges does not
                                              identical to the Exchange’s MRVP,
                                                                                                      mechanism of, a free and open market                    present any competitive issues, but
                                              except that BATS and BYX are not
                                                                                                      and a national market system, and, in                   rather is designed to provide greater
                                              proposing to add a provision covering
                                                                                                      general, protect investors and the public               harmonization among Exchange, BATS,
                                              the CE Rule.7 As such, the Exchange is
                                                                                                      interest. Specifically, the Exchange                    BYX, and EDGX rules of similar
                                              proposing to eliminate paragraph (d) of
                                                                                                      believes that the proposed changes to                   purpose, resulting in less burdensome
                                              Interpretation and Policy .01 to Rule
                                                                                                      Rule 8.15(a) and the deletion of                        and more efficient regulatory
                                              8.15.
                                                                                                      paragraph (d) of Interpretation and                     compliance for common members of the
                                                 The Exchange is also proposing to
                                                                                                      Policy .01 to Rule 8.15 contribute to the               BGM Affiliated Exchanges and an
                                              amend Rule 8.15(a). Currently, Rule
                                                                                                      protection of investors and the public                  enhanced ability of the BGM Affiliated
                                              8.15(a) provides that, for the purposes of
                                                                                                      interest by removing unnecessary                        Exchanges to fairly and efficiently
                                              imposing fines pursuant to
                                                                                                      language from Exchange Rules and                        regulate members, which will further
                                              Interpretation .02 of Rule 4.2, the
                                                                                                      correcting certain cross-references                     enhance competition.
                                              Exchange may aggregate individual
                                                                                                      therein. The Exchange believes that
                                              violations of particular rules and treat
                                                                                                      these changes will help to make                         C. Self-Regulatory Organization’s
                                                5 See Securities Exchange Act Release No. 71449
                                                                                                      Exchange Rules clearer and avoid                        Statement on Comments on the
                                              (January 30, 2014), 79 FR 6961 (February 5, 2014)       confusion for all participants on the                   Proposed Rule Change Received From
tkelley on DSK3SPTVN1PROD with NOTICES




                                              (SR–EDGX–2013–43; SR–EDGA–2013–34).                     Exchange.                                               Members, Participants or Others
                                                 6 The Exchange understands that BATS, BYX, and
                                                                                                         Further, as mentioned above, the
                                              EDGX intend to file proposed rule changes with the      proposed rule changes, combined with                      The Exchange has neither solicited
                                              Commission to adopt substantively identical rules.                                                              nor received written comments on the
                                                 7 The Exchange notes that BATS and BYX do not
                                                                                                      the planned filings for BATS, BYX, and
                                                                                                                                                              proposed rule change.
                                              currently and are not going to propose to include
                                                                                                        8 15   U.S.C. 78f(b).
                                              a provision to cover the CE Rule currently included
                                              in the Exchange’s MRVP.                                   9 15   U.S.C. 78f(b)(5).                                10 See   supra notes 6 and 7.



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                                                                           Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                             9803

                                              III. Date of Effectiveness of the                         • Send an email to rule-comments@                    SECURITIES AND EXCHANGE
                                              Proposed Rule Change and Timing for                     sec.gov. Please include File No. SR–                   COMMISSION
                                              Commission Action                                       EDGA–2015–11 on the subject line.                      [Release No. 34–74313; File No. SR–C2–
                                                 Because the foregoing proposed rule                  Paper Comments                                         2015–003]
                                              change does not: (i) Significantly affect
                                              the protection of investors or the public                 • Send paper comments in triplicate                  Self-Regulatory Organizations; C2
                                              interest; (ii) impose any significant                   to Brent J. Fields, Secretary, Securities              Options Exchange, Incorporated;
                                              burden on competition; and (iii) become                 and Exchange Commission, 100 F Street                  Notice of Filing and Immediate
                                              operative for 30 days from the date on                  NE., Washington, DC 20549–1090.                        Effectiveness of a Proposed Rule
                                              which it was filed, or such shorter time                                                                       Change Relating to Exchange Rule
                                              as the Commission may designate, it has                 All submissions should refer to File No.               6.15
                                              become effective pursuant to Section                    SR–EDGA–2015–11. This file number
                                                                                                      should be included on the subject line                 February 19, 2015.
                                              19(b)(3)(A) of the Act 11 and paragraph
                                                                                                      if email is used. To help the                             Pursuant to Section 19(b)(1) of the
                                              of Rule 19b–4(f)(6) thereunder.12
                                                 The Exchange has asked the                                                                                  Securities Exchange Act of 1934 (the
                                                                                                      Commission process and review your
                                              Commission to waive the 30-day                                                                                 ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                      comments more efficiently, please use
                                              operative delay so that the proposal may                                                                       notice is hereby given that, on February
                                                                                                      only one method. The Commission will                   19, 2015, C2 Options Exchange,
                                              become operative immediately upon                       post all comments on the Commission’s
                                              filing. The Exchange stated that waiver                                                                        Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
                                                                                                      Internet Web site (http://www.sec.gov/                 filed with the Securities and Exchange
                                              of this requirement is consistent with                  rules/sro.shtml). Copies of the
                                              the protection of investors and the                                                                            Commission (the ‘‘Commission’’) the
                                                                                                      submission, all subsequent                             proposed rule change as described in
                                              public interest because it will allow the               amendments, all written statements
                                              Exchange to have consistent rules                                                                              Items I and II below, which Items have
                                                                                                      with respect to the proposed rule                      been prepared by the Exchange. The
                                              related to minor violations across each
                                                                                                      change that are filed with the                         Commission is publishing this notice to
                                              of the BGM Affiliated Exchanges, which
                                              it believes will both more consistently                 Commission, and all written                            solicit comments on the proposed rule
                                              and effectively regulate members of the                 communications relating to the                         change from interested persons.
                                              BGM Affiliated Exchanges as well as                     proposed rule change between the                       I. Self-Regulatory Organization’s
                                              reduce the regulatory burden on                         Commission and any person, other than                  Statement of the Terms of the Substance
                                              Members of the Exchange that are also                   those that may be withheld from the                    of the Proposed Rule Change
                                              members of EDGX, BYX and/or BZX.                        public in accordance with the
                                                                                                      provisions of 5 U.S.C. 552, will be                       The Exchange proposes to extend a
                                              The Commission believes that the                                                                               pilot program related to Rule 6.15
                                              proposed rule change presents no novel                  available for Web site viewing and
                                                                                                                                                             (Obvious Error and Catastrophic Errors).
                                              issues and that waiver of the 30-day                    printing in the Commission’s Public                    The text of the proposed rule change is
                                              operative delay is consistent with the                  Reference Room, 100 F Street NE.,                      available on the Exchange’s Web site
                                              protection of investors and the public                  Washington, DC 20549, on official                      (http://www.cboe.com/AboutCBOE/
                                              interest. Therefore, the Commission                     business days between the hours of                     CBOELegalRegulatoryHome.aspx), at
                                              designates the proposed rule change to                  10:00 a.m. and 3:00 p.m. Copies of such                the Exchange’s Office of the Secretary,
                                              be operative upon filing.13                             filing will also be available for                      and at the Commission’s Public
                                                 At any time within 60 days of the                    inspection and copying at the principal                Reference Room.
                                              filing of the proposed rule change, the                 office of the Exchange. All comments
                                              Commission summarily may                                                                                       II. Self-Regulatory Organization’s
                                                                                                      received will be posted without change;
                                              temporarily suspend such rule change if                                                                        Statement of the Purpose of, and
                                                                                                      the Commission does not edit personal
                                              it appears to the Commission that such                                                                         Statutory Basis for, the Proposed Rule
                                              action is necessary or appropriate in the               identifying information from                           Change
                                              public interest, for the protection of                  submissions. You should submit only
                                                                                                      information that you wish to make                         In its filing with the Commission, the
                                              investors, or otherwise in furtherance of                                                                      Exchange included statements
                                              the purposes of the Act.                                available publicly. All submissions
                                                                                                      should refer to File No. SR–EDGA–                      concerning the purpose of and basis for
                                              IV. Solicitation of Comments                            2015–11 and should be submitted on or                  the proposed rule change and discussed
                                                                                                                                                             any comments it received on the
                                                Interested persons are invited to                     before March 17, 2015.
                                              submit written data, views and                                                                                 proposed rule change. The text of these
                                                                                                        For the Commission, by the Division of               statements may be examined at the
                                              arguments concerning the foregoing,                     Trading and Markets, pursuant to delegated
                                              including whether the proposal is                                                                              places specified in Item IV below. The
                                                                                                      authority.14                                           Exchange has prepared summaries, set
                                              consistent with the Act. Comments may
                                              be submitted by any of the following                    Brent J. Fields,                                       forth in sections A, B, and C below, of
                                              methods:                                                Secretary.                                             the most significant aspects of such
                                                                                                      [FR Doc. 2015–03668 Filed 2–23–15; 8:45 am]            statements.
                                              Electronic Comments
                                                                                                      BILLING CODE 8011–01–P                                 A. Self-Regulatory Organization’s
                                                • Use the Commission’s Internet                                                                              Statement of the Purpose of, and
                                              comment form (http://www.sec.gov/                                                                              Statutory Basis for, the Proposed Rule
                                              rules/sro.shtml); or                                                                                           Change
tkelley on DSK3SPTVN1PROD with NOTICES




                                                11 15  U.S.C. 78s(b)(3)(A).                                                                                  1. Purpose
                                                12 17  CFR 240.19b–4.                                                                                           The purpose of this filing is to extend
                                                 13 For purposes only of waiving the 30-day

                                              operative delay, the Commission has also
                                                                                                                                                             the effectiveness of the Exchange’s
                                              considered the proposed rule’s impact on
                                                                                                                                                               1 15   U.S.C. 78s(b)(1).
                                              efficiency, competition, and capital formation. See
                                              15 U.S.C. 78c(f).                                         14 17   CFR 200.30–3(a)(12).                           2 17   CFR 240.19b–4.



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Document Created: 2015-12-18 13:23:34
Document Modified: 2015-12-18 13:23:34
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 9801 

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