80_FR_9843 80 FR 9807 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule Under Section VIII With Respect to Execution and Routing of Orders in Securities Priced at $1 or More per Share

80 FR 9807 - Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Pricing Schedule Under Section VIII With Respect to Execution and Routing of Orders in Securities Priced at $1 or More per Share

SECURITIES AND EXCHANGE COMMISSION

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

Page Range9807-9809
FR Document2015-03663

Federal Register, Volume 80 Issue 36 (Tuesday, February 24, 2015)
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9807-9809]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03663]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74292; File No. SR-Phlx-2015-14]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
Exchange's Pricing Schedule Under Section VIII With Respect to 
Execution and Routing of Orders in Securities Priced at $1 or More per 
Share

February 18, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 3, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the proposed rule change as described in Items I, II, 
and III, below, which Items have been prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Exchange's Pricing Schedule 
under Section VIII, entitled ``NASDAQ OMX PSX FEES,'' with respect to 
execution and routing of orders in securities priced at $1 or more per 
share.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

[[Page 9808]]

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 aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend certain fees 
for order execution and routing applicable to the use of the order 
execution and routing services of the NASDAQ OMX PSX System (``PSX'') 
by member organizations for all securities traded at $1 or more per 
share, as well as clarify that consolidated volume does not include the 
date of the annual reconstitution of the Russell Investments Indexes.
    Specifically, the charge to a member organization entering an order 
that executes in PSX will increase from: (i) $0.0024 to $0.0026 per 
share executed for shares executed in The NASDAQ Stock Market LLC 
(``Nasdaq'')-listed securities; (ii) $0.0024 to $0.0025 per share 
executed for shares executed in New York Stock Exchange (``NYSE'')-
listed securities; and (iii) $0.0024 to $0.0026 per share executed for 
shares in securities listed on exchanges other than Nasdaq or NYSE. The 
Exchange believes that these increases better reflect the costs in 
providing rebates to members.
    Additionally, the Exchange proposes to clarify that for purposes of 
calculating consolidated volume and the extent of a member's trading 
activity, expressed as a percentage of, or ratio to, consolidated 
volume, the date of the annual reconstitution of the Russell 
Investments Indexes (``Russell Reconstitution'') will be excluded from 
both total consolidated volume and the member's trading activity. This 
change is consistent with the practices of both Nasdaq and the NASDAQ 
OMX BX, Inc. (``BX'') exchanges.
    Also, the Exchange proposes to make a few clarifications in the 
Exchange's Pricing Schedule. Specifically, in section (a)(2) of ``Order 
Execution and Routing in All Securities'' under ``VIII. NASDAQ OMX PSX 
FEES'', the Exchange proposes to replace the word ``None'' with 
``$0.0000 per share executed at NASDAQ OMX BX''. The Exchange believes 
this proposed change will serve to enhance market participant's 
understanding that there is no charge for shares executed at BX and 
reduce any possible confusion in these instances. Additionally, in this 
same section for both XDRK and XCST orders, the first column will 
clarify that the amounts in the accompanying column are charges for 
executions on a venue other than the NASDAQ OMX PSX System, rather than 
the current practice of simply indicating that they are a ``charge or 
credit'' to a member organization entering such orders. Finally, the 
description of the charge to members entering an XDRK order is changed 
to ``$0.0007 per share executed''; and the reference to ``shares 
executed at a venue other than NASDAQ OMX BX'' is deleted since an XDRK 
order cannot execute at BX. These clarifications are all intended to 
reduce confusion and make the fee schedule easier to understand.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Pricing 
Schedule is consistent with Section 6(b) of the Act \3\ in general, and 
furthers the objectives of Sections 6(b)(4) and (b)(5) of the Act \4\ 
in particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and other persons using its 
facilities, and it does not unfairly discriminate between customers, 
issuers, brokers or dealers.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange is proposing modest increases to the charges that a 
member organization entering an order that executes in PSX from: (i) 
$0.0024 to $0.0026 per share executed for shares executed in Nasdaq-
listed securities; (ii) $0.0024 to $0.0025 per share executed for 
shares executed in NYSE-listed securities; and (iii) $0.0024 to $0.0026 
per share executed for shares in securities listed on exchanges other 
than Nasdaq or NYSE. The Exchange believes that these modest increases 
are reasonable because they reflect the Exchange's need to adjust its 
credits and fees in response to the costs and benefits provided by the 
Exchange. Additionally, these modest increases are reasonable since by 
staggering increases, the Exchange is able to offer reduced rates in 
some tapes while balancing the need to fund rebates and operational 
costs.
    The Exchange believes that the proposed changes are consistent with 
an equitable allocation of fees and are not unfairly discriminatory 
because they apply to all member organizations that enter orders that 
execute in PSX. The Exchange also believes that they are consistent 
with equitable allocation of fees and are not unfairly discriminatory 
because they apply to all member organizations that enter orders that 
execute in PSX.
    The Exchange is also proposing to clarify that for purposes of 
calculating consolidated volume and the extent of a member's trading 
activity, expressed as a percentage of, or ratio to, consolidated 
volume, the date of the Russell Reconstitution will be excluded from 
both total consolidated volume and the member's trading activity. The 
Exchange believes that this clarification is reasonable because it is 
consistent with the practices at both Nasdaq and the BX exchanges and 
will reduce confusion concerning the Russell Reconstitution.
    The Exchange believes that the proposed changes are consistent with 
an equitable allocation of fees and are not unfairly discriminatory 
because trading volumes on the date of the Russell Reconstitution are 
generally far in excess of volumes on other days during the month. As a 
result, the trading activity of members that are regular daily 
participants in PSX, expressed as a percentage of consolidated volume, 
is likely to be lower than their percentage of consolidated volume on 
other days during the month. Therefore, including the date of the 
Russell Reconstitution in calculations of consolidated volume would 
likely make it more difficult for members to achieve particular volume 
levels during the month. Accordingly, excluding the date of the Russell 
Reconstitution from these calculations will diminish the likelihood of 
a de facto price increase from occurring because a member is not able 
to reach a volume percentage on that date that it typically reaches on 
other trading days during the month. Moreover, excluding the date is 
very unlikely to result in a price increase for any members, since a 
member that was not, on other days during the month, trading in PSX at 
volume levels that would allow it to qualify for rebate tiers, would be 
unlikely to achieve percentage volume levels on the date of the Russell 
Reconstitution that would increase its overall monthly percentage to 
the required levels, even if it was very active on that date.
    Finally, the Exchange believes that the remaining changes to the 
Pricing Schedule are reasonable because they

[[Page 9809]]

are intended to clarify and reduce confusion through the clarification 
as to what is a charge or credit, the clarification that there is no 
charge for certain orders executed at BX, as well as to clarify through 
the removal of unnecessary language that may add confusion to the 
Pricing Schedule. The Exchange also believes that these changes are 
consistent with an equitable allocation of fees and are not unfairly 
discriminatory because they do not impact fees and serve only to 
clarify and reduce possible confusion.

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, as amended.\5\ The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges and with alternative trading systems that have 
been exempted from compliance with the statutory standards applicable 
to exchanges. Because competitors are free to modify their own fees in 
response, and because market participants may readily adjust their 
order routing practices, the Exchange believes that the degree to which 
fee changes in this market may impose any burden on competition is 
extremely limited. In this instance, the modest increases to the 
charges assessed are intended to allow the Exchange to help offset its 
costs in providing rebates to members. Because there are numerous 
competitive alternatives to PSX, it is likely the Exchange would lose 
market share and money as a result of changes if they do not reflect 
costs.
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    \5\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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

    Pursuant to Section 19(b)(3)(A)(ii) of the Act,\6\ the Exchange has 
designated this proposal as establishing or changing a due, fee, or 
other charge imposed by the self-regulatory organization on any person, 
whether or not the person is a member of the self-regulatory 
organization, which renders the proposed rule change effective upon 
filing.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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-Phlx-2015-14 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 Number SR-Phlx-2015-14. 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 on 
official business days between the hours of 10:00 a.m. and 3:00 p.m. 
Copies of such filing also will be available for inspection and copying 
at the principal offices 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-Phlx-2015-14, and should be submitted on 
or before March 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03663 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                                      9807

                                              6(b)(1) and 6(b)(6) of the Act 11 which                       as the Commission may designate, it has                 received will be posted without change;
                                              require that the rules of an exchange                         become effective pursuant to Section                    the Commission does not edit personal
                                              enforce compliance with, and provide                          19(b)(3)(A) of the Act 12 and paragraph                 identifying information from
                                              appropriate discipline for, violations of                     of Rule 19b–4(f)(6) thereunder.13                       submissions. You should submit only
                                              the Commission and Exchange rules.                               At any time within 60 days of the                    information that you wish to make
                                              The Exchange also believes that the                           filing of the proposed rule change, the                 available publicly. All submissions
                                              proposal is consistent with the public                        Commission summarily may                                should refer to File No. SR–BATS–
                                              interest, the protection of investors, or                     temporarily suspend such rule change if                 2015–12 and should be submitted on or
                                              otherwise in furtherance of the purposes                      it appears to the Commission that such                  before March 17, 2015.
                                              of the Act because the proposal helps to                      action is necessary or appropriate in the                 For the Commission, by the Division of
                                              strengthen the Exchange’s ability to                          public interest, for the protection of                  Trading and Markets, pursuant to delegated
                                              carry out its oversight and enforcement                       investors, or otherwise in furtherance of               authority.14
                                              responsibilities as a self-regulatory                         the purposes of the Act.                                Brent J. Fields,
                                              organization in cases where full                                                                                      Secretary.
                                                                                                            IV. Solicitation of Comments
                                              disciplinary proceedings are unsuitable
                                                                                                              Interested persons are invited to                     [FR Doc. 2015–03664 Filed 2–23–15; 8:45 am]
                                              in view of the minor nature of a
                                              particular violation.                                         submit written data, views and                          BILLING CODE 8011–01–P

                                                 Finally, the Exchange believes that                        arguments concerning the foregoing,
                                              the non-substantive changes discussed                         including whether the proposal is
                                                                                                            consistent with the Act. Comments may                   SECURITIES AND EXCHANGE
                                              above will contribute to the protection
                                                                                                            be submitted by any of the following                    COMMISSION
                                              of investors and the public interest by
                                              helping to avoid confusion with respect                       methods:                                                [Release No. 34–74292; File No. SR–Phlx–
                                              to Exchange rules.                                            Electronic Comments                                     2015–14]
                                              B. Self-Regulatory Organization’s                               • Use the Commission’s Internet                       Self-Regulatory Organizations;
                                              Statement on Burden on Competition                            comment form (http://www.sec.gov/                       NASDAQ OMX PHLX LLC; Notice of
                                                The Exchange does not believe that                          rules/sro.shtml); or                                    Filing and Immediate Effectiveness of
                                              the proposed rule change will impose                            • Send an email to rule-comments@                     Proposed Rule Change To Amend the
                                              any burden on competition not                                 sec.gov. Please include File No. SR–                    Exchange’s Pricing Schedule Under
                                              necessary or appropriate in furtherance                       BATS–2015–12 on the subject line.                       Section VIII With Respect to Execution
                                              of the purposes of the act. To the                            Paper Comments                                          and Routing of Orders in Securities
                                              contrary, allowing the Exchange to                                                                                    Priced at $1 or More per Share
                                              implement substantively identical rules                          • Send paper comments in triplicate
                                              related to the imposition of fines for                        to Brent J. Fields, Secretary, Securities               February 18, 2015.
                                              minor violations of rules across each of                      and Exchange Commission, 100 F Street                      Pursuant to Section 19(b)(1) of the
                                              the BGM Affiliated Exchanges does not                         NE., Washington, DC 20549–1090.                         Securities Exchange Act of 1934
                                              present any competitive issues, but                           All submissions should refer to File No.                (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              rather is designed to provide greater                         SR–BATS–2015–12. This file number                       notice is hereby given that on February
                                              harmonization among Exchange, BYX,                            should be included on the subject line                  3, 2015, NASDAQ OMX PHLX LLC
                                              EDGA, and EDGX rules of similar                               if email is used. To help the                           (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
                                              purpose, resulting in less burdensome                         Commission process and review your                      Securities and Exchange Commission
                                              and more efficient regulatory                                 comments more efficiently, please use                   (‘‘SEC’’ or ‘‘Commission’’) the proposed
                                              compliance for common members of the                          only one method. The Commission will                    rule change as described in Items I, II,
                                              BGM Affiliated Exchanges and an                               post all comments on the Commission’s                   and III, below, which Items have been
                                              enhanced ability of the BGM Affiliated                        Internet Web site (http://www.sec.gov/                  prepared by the Exchange. The
                                              Exchanges to fairly and efficiently                           rules/sro.shtml). Copies of the                         Commission is publishing this notice to
                                              regulate members, which will further                          submission, all subsequent                              solicit comments on the proposed rule
                                              enhance competition.                                          amendments, all written statements                      change from interested persons.
                                                                                                            with respect to the proposed rule
                                              C. Self-Regulatory Organization’s                             change that are filed with the                          I. Self-Regulatory Organization’s
                                              Statement on Comments on the                                  Commission, and all written                             Statement of the Terms of Substance of
                                              Proposed Rule Change Received From                            communications relating to the                          the Proposed Rule Change
                                              Members, Participants or Others                               proposed rule change between the                           The Exchange proposes to amend the
                                                The Exchange has neither solicited                          Commission and any person, other than                   Exchange’s Pricing Schedule under
                                              nor received written comments on the                          those that may be withheld from the                     Section VIII, entitled ‘‘NASDAQ OMX
                                              proposed rule change.                                         public in accordance with the                           PSX FEES,’’ with respect to execution
                                                                                                            provisions of 5 U.S.C. 552, will be                     and routing of orders in securities
                                              III. Date of Effectiveness of the                             available for Web site viewing and                      priced at $1 or more per share.
                                              Proposed Rule Change and Timing for                           printing in the Commission’s Public                        The text of the proposed rule change
                                              Commission Action                                             Reference Room, 100 F Street NE.,                       is available on the Exchange’s Web site
                                                 Because the foregoing proposed rule                        Washington, DC 20549, on official                       at http://
                                              change does not: (i) Significantly affect                     business days between the hours of                      nasdaqomxphlx.cchwallstreet.com/, at
tkelley on DSK3SPTVN1PROD with NOTICES




                                              the protection of investors or the public                     10:00 a.m. and 3:00 p.m. Copies of such                 the principal office of the Exchange, and
                                              interest; (ii) impose any significant                         filing will also be available for                       at the Commission’s Public Reference
                                              burden on competition; and (iii) become                       inspection and copying at the principal                 Room.
                                              operative for 30 days from the date on                        office of the Exchange. All comments
                                              which it was filed, or such shorter time                                                                                14 17 CFR 200.30–3(a)(12).
                                                                                                              12 15 U.S.C. 78s(b)(3)(A).                              1 15 U.S.C. 78s(b)(1).
                                                11 15   U.S.C. 78f(b)(1) and 78f(b)(6).                       13 17 CFR 240.19b–4.                                    2 17 CFR 240.19b–4.




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                                              9808                        Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices

                                              II. Self-Regulatory Organization’s                      NASDAQ OMX PSX FEES’’, the                                 The Exchange believes that the
                                              Statement of the Purpose of, and                        Exchange proposes to replace the word                   proposed changes are consistent with an
                                              Statutory Basis for, the Proposed Rule                  ‘‘None’’ with ‘‘$0.0000 per share                       equitable allocation of fees and are not
                                              Change                                                  executed at NASDAQ OMX BX’’. The                        unfairly discriminatory because they
                                                 In its filing with the Commission, the               Exchange believes this proposed change                  apply to all member organizations that
                                              Exchange included statements                            will serve to enhance market                            enter orders that execute in PSX. The
                                              concerning the purpose of and basis for                 participant’s understanding that there is               Exchange also believes that they are
                                              the proposed rule change and discussed                  no charge for shares executed at BX and                 consistent with equitable allocation of
                                              any comments it received on the                         reduce any possible confusion in these                  fees and are not unfairly discriminatory
                                              proposed rule change. The text of these                 instances. Additionally, in this same                   because they apply to all member
                                              statements may be examined at the                       section for both XDRK and XCST orders,                  organizations that enter orders that
                                              places specified in Item IV below. The                  the first column will clarify that the                  execute in PSX.
                                              Exchange has prepared summaries, set                    amounts in the accompanying column                         The Exchange is also proposing to
                                              forth in sections A, B, and C below, of                 are charges for executions on a venue                   clarify that for purposes of calculating
                                              the most significant aspects of such                    other than the NASDAQ OMX PSX                           consolidated volume and the extent of
                                              statements.                                             System, rather than the current practice                a member’s trading activity, expressed
                                                                                                      of simply indicating that they are a                    as a percentage of, or ratio to,
                                              A. Self-Regulatory Organization’s                       ‘‘charge or credit’’ to a member                        consolidated volume, the date of the
                                              Statement of the Purpose of, and                        organization entering such orders.                      Russell Reconstitution will be excluded
                                              Statutory Basis for, the Proposed Rule                  Finally, the description of the charge to               from both total consolidated volume
                                              Change                                                  members entering an XDRK order is                       and the member’s trading activity. The
                                              1. Purpose                                              changed to ‘‘$0.0007 per share                          Exchange believes that this clarification
                                                                                                      executed’’; and the reference to ‘‘shares               is reasonable because it is consistent
                                                 The purpose of the proposed rule                                                                             with the practices at both Nasdaq and
                                              change is to amend certain fees for order               executed at a venue other than
                                                                                                      NASDAQ OMX BX’’ is deleted since an                     the BX exchanges and will reduce
                                              execution and routing applicable to the                                                                         confusion concerning the Russell
                                              use of the order execution and routing                  XDRK order cannot execute at BX.
                                                                                                      These clarifications are all intended to                Reconstitution.
                                              services of the NASDAQ OMX PSX                                                                                     The Exchange believes that the
                                              System (‘‘PSX’’) by member                              reduce confusion and make the fee
                                                                                                      schedule easier to understand.                          proposed changes are consistent with an
                                              organizations for all securities traded at                                                                      equitable allocation of fees and are not
                                              $1 or more per share, as well as clarify                2. Statutory Basis                                      unfairly discriminatory because trading
                                              that consolidated volume does not                                                                               volumes on the date of the Russell
                                              include the date of the annual                             The Exchange believes that its
                                                                                                                                                              Reconstitution are generally far in
                                              reconstitution of the Russell                           proposal to amend its Pricing Schedule
                                                                                                                                                              excess of volumes on other days during
                                              Investments Indexes.                                    is consistent with Section 6(b) of the
                                                                                                                                                              the month. As a result, the trading
                                                 Specifically, the charge to a member                 Act 3 in general, and furthers the
                                                                                                                                                              activity of members that are regular
                                              organization entering an order that                     objectives of Sections 6(b)(4) and (b)(5)               daily participants in PSX, expressed as
                                              executes in PSX will increase from: (i)                 of the Act 4 in particular, in that it is an            a percentage of consolidated volume, is
                                              $0.0024 to $0.0026 per share executed                   equitable allocation of reasonable fees                 likely to be lower than their percentage
                                              for shares executed in The NASDAQ                       and other charges among Exchange                        of consolidated volume on other days
                                              Stock Market LLC (‘‘Nasdaq’’)-listed                    members and other persons using its                     during the month. Therefore, including
                                              securities; (ii) $0.0024 to $0.0025 per                 facilities, and it does not unfairly                    the date of the Russell Reconstitution in
                                              share executed for shares executed in                   discriminate between customers,                         calculations of consolidated volume
                                              New York Stock Exchange (‘‘NYSE’’)-                     issuers, brokers or dealers.                            would likely make it more difficult for
                                              listed securities; and (iii) $0.0024 to                    The Exchange is proposing modest                     members to achieve particular volume
                                              $0.0026 per share executed for shares in                increases to the charges that a member                  levels during the month. Accordingly,
                                              securities listed on exchanges other than               organization entering an order that                     excluding the date of the Russell
                                              Nasdaq or NYSE. The Exchange believes                   executes in PSX from: (i) $0.0024 to                    Reconstitution from these calculations
                                              that these increases better reflect the                 $0.0026 per share executed for shares                   will diminish the likelihood of a de
                                              costs in providing rebates to members.                  executed in Nasdaq-listed securities; (ii)              facto price increase from occurring
                                                 Additionally, the Exchange proposes                  $0.0024 to $0.0025 per share executed                   because a member is not able to reach
                                              to clarify that for purposes of calculating             for shares executed in NYSE-listed                      a volume percentage on that date that it
                                              consolidated volume and the extent of                   securities; and (iii) $0.0024 to $0.0026                typically reaches on other trading days
                                              a member’s trading activity, expressed                  per share executed for shares in                        during the month. Moreover, excluding
                                              as a percentage of, or ratio to,                        securities listed on exchanges other than               the date is very unlikely to result in a
                                              consolidated volume, the date of the                    Nasdaq or NYSE. The Exchange believes                   price increase for any members, since a
                                              annual reconstitution of the Russell                    that these modest increases are                         member that was not, on other days
                                              Investments Indexes (‘‘Russell                          reasonable because they reflect the                     during the month, trading in PSX at
                                              Reconstitution’’) will be excluded from                 Exchange’s need to adjust its credits and               volume levels that would allow it to
                                              both total consolidated volume and the                  fees in response to the costs and benefits              qualify for rebate tiers, would be
                                              member’s trading activity. This change                  provided by the Exchange. Additionally,                 unlikely to achieve percentage volume
                                              is consistent with the practices of both                these modest increases are reasonable                   levels on the date of the Russell
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                                              Nasdaq and the NASDAQ OMX BX, Inc.                      since by staggering increases, the                      Reconstitution that would increase its
                                              (‘‘BX’’) exchanges.                                     Exchange is able to offer reduced rates                 overall monthly percentage to the
                                                 Also, the Exchange proposes to make                  in some tapes while balancing the need                  required levels, even if it was very
                                              a few clarifications in the Exchange’s                  to fund rebates and operational costs.                  active on that date.
                                              Pricing Schedule. Specifically, in                                                                                 Finally, the Exchange believes that
                                              section (a)(2) of ‘‘Order Execution and                   3 15   U.S.C. 78f(b).                                 the remaining changes to the Pricing
                                              Routing in All Securities’’ under ‘‘VIII.                 4 15   U.S.C. 78f(b)(4) and (5).                      Schedule are reasonable because they


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                                                                                  Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                             9809

                                              are intended to clarify and reduce                         a due, fee, or other charge imposed by                will be available for inspection and
                                              confusion through the clarification as to                  the self-regulatory organization on any               copying at the principal offices of the
                                              what is a charge or credit, the                            person, whether or not the person is a                Exchange. All comments received will
                                              clarification that there is no charge for                  member of the self-regulatory                         be posted without change; the
                                              certain orders executed at BX, as well as                  organization, which renders the                       Commission does not edit personal
                                              to clarify through the removal of                          proposed rule change effective upon                   identifying information from
                                              unnecessary language that may add                          filing.                                               submissions. You should submit only
                                              confusion to the Pricing Schedule. The                        At any time within 60 days of the                  information that you wish to make
                                              Exchange also believes that these                          filing of the proposed rule change, the               available publicly. All submissions
                                              changes are consistent with an equitable                   Commission summarily may                              should refer to File Number SR–Phlx–
                                              allocation of fees and are not unfairly                    temporarily suspend such rule change if               2015–14, and should be submitted on or
                                              discriminatory because they do not                         it appears to the Commission that such                before March 17, 2015.
                                              impact fees and serve only to clarify and                  action is necessary or appropriate in the               For the Commission, by the Division of
                                              reduce possible confusion.                                 public interest, for the protection of                Trading and Markets, pursuant to delegated
                                                                                                         investors, or otherwise in furtherance of             authority.7
                                              B. Self-Regulatory Organization’s                          the purposes of the Act. If the
                                              Statement on Burden on Competition                                                                               Brent J. Fields,
                                                                                                         Commission takes such action, the                     Secretary.
                                                 The Exchange does not believe that                      Commission shall institute proceedings                [FR Doc. 2015–03663 Filed 2–23–15; 8:45 am]
                                              the proposed rule change will impose                       to determine whether the proposed rule
                                                                                                                                                               BILLING CODE 8011–01–P
                                              any burden on competition not                              should be approved or disapproved.
                                              necessary or appropriate in furtherance
                                              of the purposes of the Act, as amended.5                   IV. Solicitation of Comments
                                                                                                                                                               SECURITIES AND EXCHANGE
                                              The Exchange notes that it operates in                       Interested persons are invited to
                                                                                                                                                               COMMISSION
                                              a highly competitive market in which                       submit written data, views, and
                                              market participants can readily favor                      arguments concerning the foregoing,                   [Release No. 34–74283; File No. SR–EDGA–
                                              competing venues if they deem fee                          including whether the proposed rule                   2015–09]
                                              levels at a particular venue to be                         change is consistent with the Act.
                                                                                                         Comments may be submitted by any of                   Self-Regulatory Organizations; EDGA
                                              excessive, or rebate opportunities
                                                                                                         the following methods:                                Exchange, Inc.; Notice of Filing and
                                              available at other venues to be more
                                                                                                                                                               Immediate Effectiveness of a Proposed
                                              favorable. In such an environment, the                     Electronic Comments                                   Rule Change To Establish Fees for
                                              Exchange must continually adjust its
                                              fees to remain competitive with other                        • Use the Commission’s Internet                     EDGA Top, EDGA Last Sale, and the
                                                                                                         comment form (http://www.sec.gov/                     BATS One Feed
                                              exchanges and with alternative trading
                                              systems that have been exempted from                       rules/sro.shtml); or                                  February 18, 2015.
                                              compliance with the statutory standards                      • Send an email to rule-comments@
                                                                                                                                                                  Pursuant to Section 19(b)(1) of the
                                              applicable to exchanges. Because                           sec.gov. Please include File Number SR–
                                                                                                                                                               Securities Exchange Act of 1934 (the
                                              competitors are free to modify their own                   Phlx–2015–14 on the subject line.
                                                                                                                                                               ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              fees in response, and because market                       Paper Comments                                        notice is hereby given that on February
                                              participants may readily adjust their                        • Send paper comments in triplicate                 3, 2015, EDGA Exchange, Inc. (‘‘EDGA’’
                                              order routing practices, the Exchange                      to Brent J. Fields, Secretary, Securities             or the ‘‘Exchange’’) filed with the
                                              believes that the degree to which fee                      and Exchange Commission, 100 F Street                 Securities and Exchange Commission
                                              changes in this market may impose any                      NE., Washington, DC 20549–1090.                       (‘‘Commission’’) the proposed rule
                                              burden on competition is extremely                                                                               change as described in Items I and II
                                                                                                         All submissions should refer to File
                                              limited. In this instance, the modest                                                                            below, which Items have been prepared
                                                                                                         Number SR–Phlx–2015–14. This file
                                              increases to the charges assessed are                                                                            by the Exchange. The Exchange has
                                                                                                         number should be included on the
                                              intended to allow the Exchange to help                                                                           designated the proposed rule change as
                                                                                                         subject line if email is used.
                                              offset its costs in providing rebates to                     To help the Commission process and                  one establishing or changing a member
                                              members. Because there are numerous                        review your comments more efficiently,                due, fee, or other charge imposed by the
                                              competitive alternatives to PSX, it is                     please use only one method. The                       Exchange under Section 19(b)(3)(A)(ii)
                                              likely the Exchange would lose market                      Commission will post all comments on                  of the Act 3 and Rule 19b–4(f)(2)
                                              share and money as a result of changes                     the Commission’s Internet Web site                    thereunder,4 which renders the
                                              if they do not reflect costs.                              (http://www.sec.gov/rules/sro.shtml).                 proposed rule change effective upon
                                              C. Self-Regulatory Organization’s                          Copies of the submission, all subsequent              filing with the Commission. The
                                              Statement on Comments on the                               amendments, all written statements                    Commission is publishing this notice to
                                              Proposed Rule Change Received From                         with respect to the proposed rule                     solicit comments on the proposed rule
                                              Members, Participants, or Others                           change that are filed with the                        change from interested persons.
                                                No written comments were either                          Commission, and all written                           I. Self-Regulatory Organization’s
                                              solicited or received.                                     communications relating to the                        Statement of the Terms of Substance of
                                                                                                         proposed rule change between the                      the Proposed Rule Change
                                              III. Date of Effectiveness of the                          Commission and any person, other than
                                              Proposed Rule Change and Timing for                                                                                 The Exchange filed a proposal to
                                                                                                         those that may be withheld from the
                                              Commission Action                                                                                                amend the fee schedule to establish fees
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                         public in accordance with the
                                                                                                                                                               for EDGA Top, EDGA Last Sale, and the
                                                 Pursuant to Section 19(b)(3)(A)(ii) of                  provisions of 5 U.S.C. 552, will be
                                              the Act,6 the Exchange has designated                      available for Web site viewing and                      7 17 CFR 200.30–3(a)(12).
                                              this proposal as establishing or changing                  printing in the Commission’s Public                     1 15 U.S.C. 78s(b)(1).
                                                                                                         Reference Room on official business                     2 17 CFR 240.19b–4.
                                                5 15   U.S.C. 78f(b)(8).                                 days between the hours of 10:00 a.m.                    3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                6 15   U.S.C. 78s(b)(3)(A)(ii).                          and 3:00 p.m. Copies of such filing also                4 17 CFR 240.19b–4(f)(2).




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Document Created: 2015-12-18 13:23:37
Document Modified: 2015-12-18 13:23:37
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 9807 

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