80_FR_9875 80 FR 9839 - Self-Regulatory Organizations; EDGX 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 9839 - Self-Regulatory Organizations; EDGX 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 Range9839-9841
FR Document2015-03667

Federal Register, Volume 80 Issue 36 (Tuesday, February 24, 2015)
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9839-9841]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03667]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74296; File No. SR-EDGX-2015-10]


Self-Regulatory Organizations; EDGX 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, EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \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

[[Page 9840]]

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.

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 EDGA 
Exchange, Inc. (``EDGA'') 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, EDGA and EDGX, 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 EDGA.\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 EDGA 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.
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    \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.
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    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. The Exchange is also 
proposing to add a period to each of the sentences in proposed 
paragraphs (f) and (g) of Interpretation and Policy .01 to Rule 8.15.
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).
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    Further, as mentioned above, the proposed rule changes, combined 
with the planned filings for BATS, BYX, and EDGA,\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 EDGA. 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.
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    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

[[Page 9841]]

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 EDGA 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.

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\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4.
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    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 EDGA, 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\
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    \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-EDGX-2015-10 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-EDGX-2015-10. 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-EDGX-2015-10 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).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03667 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                          Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                                     9839

                                              quality and increased transaction                       III. Date of Effectiveness of the                        Washington, DC 20549, on official
                                              volume that results from the anticipated                Proposed Rule Change and Timing for                      business days between the hours of
                                              increase in order flow directed to the                  Commission Action                                        10:00 a.m. and 3:00 p.m. Copies of such
                                              Exchange will benefit all market                           The foregoing rule change has become                  filing also will be available for
                                              participants and improve competition                    effective pursuant to Section                            inspection and copying at the principal
                                              on the Exchange in such select symbols.                 19(b)(3)(A)(ii) of the Act.13 At any time                office of the Exchange. All comments
                                              The Exchange notes that it operates in                  within 60 days of the filing of the                      received will be posted without change;
                                              a highly competitive market in which                    proposed rule change, the Commission                     the Commission does not edit personal
                                              market participants can readily favor                   summarily may temporarily suspend                        identifying information from
                                              competing venues if they deem fee                       such rule change if it appears to the                    submissions. You should submit only
                                              levels at a particular venue to be                      Commission that such action is                           information that you wish to make
                                              excessive. In such an environment, the                  necessary or appropriate in the public                   available publicly. All submissions
                                              Exchange must continually adjust its                    interest, for the protection of investors,               should refer to File Number SR–MIAX–
                                              fees to remain competitive with other                   or otherwise in furtherance of the                       2015–08 and should be submitted on or
                                              exchanges and to attract order flow to                  purposes of the Act. If the Commission                   before March 17, 2015.
                                              the Exchange. The Exchange believes                     takes such action, the Commission shall                    For the Commission, by the Division of
                                              that the proposed rule change reflects                  institute proceedings to determine                       Trading and Markets, pursuant to delegated
                                              this competitive environment because it                 whether the proposed rule should be                      authority.14
                                              reduces the Exchange’s fees in a manner                 approved or disapproved.                                 Brent J. Fields,
                                              that encourages market participants to                                                                           Secretary.
                                              direct their customer order flow, to                    IV. Solicitation of Comments                             [FR Doc. 2015–03659 Filed 2–23–15; 8:45 am]
                                              provide liquidity, and to attract                         Interested persons are invited to                      BILLING CODE 8011–01–P
                                              additional transaction volume to the                    submit written data, views and
                                              Exchange. Given the robust competition                  arguments concerning the foregoing,
                                              for volume among options markets,                       including whether the proposed rule                      SECURITIES AND EXCHANGE
                                              many of which offer the same products,                  change is consistent with the Act.                       COMMISSION
                                              implementing a volume based customer                    Comments may be submitted by any of                      [Release No. 34–74296; File No. SR–EDGX–
                                              rebate program to attract order flow like               the following methods:                                   2015–10]
                                              the one being proposed in this filing is
                                              consistent with the above-mentioned                     Electronic Comments
                                                                                                                                                               Self-Regulatory Organizations; EDGX
                                              goals of the Act. This is especially true                 • Use the Commission’s Internet                        Exchange, Inc.; Notice of Filing and
                                              for the smaller options markets, such as                comment form (http://www.sec.gov/                        Immediate Effectiveness of a Proposed
                                              MIAX, which is competing for volume                     rules/sro.shtml); or                                     Rule Change To Amend Rule 8.15
                                              with much larger exchanges that                           • Send an email to rule-comments@                      Entitled ‘‘Imposition of Fines for Minor
                                              dominate the options trading industry.                  sec.gov. Please include File Number SR–                  Violation(s) of Rules’’
                                              MIAX has a nominal percentage of the                    MIAX–2015–08 on the subject line.
                                              average daily trading volume in options,                                                                         February 18, 2015.
                                              so it is unlikely that the customer rebate              Paper Comments                                              Pursuant to Section 19(b)(1) of the
                                              program could cause any competitive                       • Send paper comments in triplicate                    Securities Exchange Act of 1934 (the
                                              harm to the options market or to market                 to Brent J. Fields, Secretary, Securities                ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              participants. Rather, the customer rebate               and Exchange Commission, 100 F Street                    notice is hereby given that on February
                                              program is a modest attempt by a small                  NE., Washington, DC 20549.                               5, 2015, EDGX Exchange, Inc. (the
                                              options market to attract order volume                  All submissions should refer to File                     ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
                                              away from larger competitors by                         Number SR–MIAX–2015–08. This file                        Securities and Exchange Commission
                                              adopting an innovative pricing strategy.                number should be included on the                         (‘‘Commission’’) the proposed rule
                                              The Exchange notes that if the rebate                   subject line if email is used. To help the               change as described in Items I and II
                                              program resulted in a modest percentage                 Commission process and review your                       below, which Items have been prepared
                                              increase in the average daily trading                   comments more efficiently, please use                    by the Exchange. The Exchange has
                                              volume in options executing on MIAX,                    only one method. The Commission will                     designated this proposal as a ‘‘non-
                                              while such percentage would represent                   post all comments on the Commission’s                    controversial’’ proposed rule change
                                              a large volume increase for MIAX, it                    Internet Web site (http://www.sec.gov/                   pursuant to Section 19(b)(3)(A) of the
                                              would represent a minimal reduction in                  rules/sro.shtml). Copies of the                          Act 3 and Rule 19b–4(f)(6)(iii)
                                              volume of its larger competitors in the                 submission, all subsequent                               thereunder,4 which renders it effective
                                              industry. The Exchange believes that the                amendments, all written statements                       upon filing with the Commission. The
                                              proposal will help further competition,                 with respect to the proposed rule                        Commission is publishing this notice to
                                              because market participants will have                   change that are filed with the                           solicit comments on the proposed rule
                                              yet another additional option in                        Commission, and all written                              change from interested persons.
                                              determining where to execute orders                     communications relating to the                           I. Self-Regulatory Organization’s
                                              and post liquidity if they factor the                   proposed rule change between the                         Statement of the Terms of Substance of
                                              benefits of a customer rebate program                   Commission and any person, other than                    the Proposed Rule Change
                                              into the determination.                                 those that may be withheld from the                         The Exchange filed a proposal to
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                                              C. Self-Regulatory Organization’s                       public in accordance with the                            amend Rule 8.15 entitled ‘‘Imposition of
                                              Statement on Comments on the                            provisions of 5 U.S.C. 552, will be
                                              Proposed Rule Change Received From                      available for Web site viewing and                         14 17 CFR 200.30–3(a)(12).
                                              Members, Participants or Others                         printing in the Commission’s Public                        1 15 U.S.C. 78s(b)(1).
                                                                                                      Reference Room, 100 F Street NE.,                          2 17 CFR 240.19b–4.

                                                Written comments were neither                                                                                    3 15 U.S.C. 78s(b)(3)(A).

                                              solicited nor received.                                   13 15   U.S.C. 78s(b)(3)(A)(ii).                         4 17 CFR 240.19b–4(f)(6)(iii).




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                                              9840                        Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices

                                              Fines for Minor Violation(s) of Rules.’’                ‘‘MRVP’’). The Exchange, however, has                 2. Statutory Basis
                                              The text of the proposed rule change is                 no specific reference to the firm element                The Exchange believes that the
                                              available at the Exchange’s Web site at                 of the continuing education                           proposed rule change is consistent with
                                              www.batstrading.com, at the principal                   requirements under the CE Rule.                       Section 6(b) of the Act 8 and furthers the
                                              office of the Exchange, and at the                      Further, BATS and BYX are proposing                   objectives of Section 6(b)(5) of the Act,9
                                              Commission’s Public Reference Room.                     to adopt rules that are substantively                 in that it is designed promote just and
                                              II. Self-Regulatory Organization’s                      identical to the Exchange’s MRVP,                     equitable principles of trade, remove
                                              Statement of the Purpose of, and                        except that BATS and BYX are not                      impediments to, and perfect the
                                              Statutory Basis for, the Proposed Rule                  proposing to add a provision covering                 mechanism of, a free and open market
                                              Change                                                  the CE Rule.7 As such, the Exchange is                and a national market system, and, in
                                                                                                      proposing to eliminate paragraph (d) of               general, protect investors and the public
                                                 In its filing with the Commission, the                                                                     interest. Specifically, the Exchange
                                              Exchange included statements                            Interpretation and Policy .01 to Rule
                                                                                                      8.15.                                                 believes that the proposed changes to
                                              concerning the purpose of and basis for                                                                       Rule 8.15(a) and the deletion of
                                              the proposed rule change and discussed                     The Exchange is also proposing to                  paragraph (d) of Interpretation and
                                              any comments it received on the                         amend Rule 8.15(a). Currently, Rule                   Policy .01 to Rule 8.15 contribute to the
                                              proposed rule change. The text of these                 8.15(a) provides that, for the purposes of            protection of investors and the public
                                              statements may be examined at the                       imposing fines pursuant to                            interest by removing unnecessary
                                              places specified in Item IV below. The                  Interpretation .02 of Rule 4.2, the                   language from Exchange Rules and
                                              Exchange has prepared summaries, set                    Exchange may aggregate individual                     correcting certain cross-references
                                              forth in Sections A, B, and C below, of                 violations of particular rules and treat              therein. The Exchange believes that
                                              the most significant parts of such                      such violations as a single offense,                  these changes will help to make
                                              statements.                                             provided that such aggregation is based               Exchange Rules clearer and avoid
                                              A. Self-Regulatory Organization’s                       upon a comprehensive automated                        confusion for all participants on the
                                              Statement of the Purpose of, and                        surveillance program. The Exchange has                Exchange.
                                              Statutory Basis for, the Proposed Rule                  never aggregated violations under this                   Further, as mentioned above, the
                                              Change                                                  provision and does not anticipate doing               proposed rule changes, combined with
                                                                                                      so in the future due to the content of                the planned filings for BATS, BYX, and
                                              1. Purpose                                                                                                    EDGA,10 would allow the BGM
                                                                                                      Interpretation .02 of Rule 4.2, which
                                                 The Exchange proposes to amend                       could not, because of its nature, be                  Affiliated Exchanges to provide a
                                              Rule 8.15 in order to make it                                                                                 consistent set of rules as it relates to the
                                                                                                      based on a comprehensive automated
                                              substantively identical to the                                                                                imposition of fines for minor violations
                                                                                                      surveillance program. Interpretation and
                                              corresponding rules on BATS Exchange,                                                                         of rules across each of the exchanges.
                                                                                                      Policy .02 of Rule 4.2 is related to the              Consistent rules, in turn, will simplify
                                              Inc. (‘‘BATS’’) and BATS Y-Exchange,                    requirement to furnish Exchange-related
                                              Inc. (‘‘BYX’’), as further described                                                                          the application of the Exchange’s
                                                                                                      order, market and transaction data. As                regulatory program for Members of the
                                              below. Last year, the Exchange and its                  the Exchange does not currently require
                                              affiliate EDGA Exchange, Inc. (‘‘EDGA’’)                                                                      Exchange that are also participants on
                                                                                                      Members to provide such information                   BATS, BYX, and/or EDGA. The
                                              received approval to effect a merger (the
                                                                                                      and because compliance with a                         proposed rule change would provide
                                              ‘‘Merger’’) of the Exchange’s parent
                                                                                                      requirement to provide data would not                 greater harmonization between rules of
                                              company, Direct Edge Holdings LLC,
                                              with BATS Global Markets, Inc., the                     likely be reviewed based on an                        similar purpose on the BGM Affiliated
                                              parent of BATS and BYX (together with                   automated surveillance (though                        Exchanges, resulting in greater
                                              BATS, BYX, EDGA and EDGX, the                           surveillance would likely be performed                uniformity and less burdensome and
                                              ‘‘BGM Affiliated Exchanges’’).5 In the                  on such data), the Exchange believes the              more efficient regulatory compliance.
                                              context of the Merger, the BGM                          reference to this provision in Rule 8.15              As such, the proposed rule change
                                              Affiliated Exchanges are working to                     is no longer necessary. Based on the                  would foster cooperation and
                                              align certain rules, retaining only                     foregoing, and in order to conform rules              coordination with persons engaged in
                                              intended differences between the BGM                    across each of the BGM Affiliated                     facilitating transactions in securities and
                                              Affiliated Exchanges. Thus, the proposal                Exchanges, the Exchange is proposing to               would remove impediments to and
                                              set forth below is intended to amend                    remove this provision from Rule 8.15(a).              perfect the mechanism of a free and
                                              Rule 8.15 in order to make it                                                                                 open market and a national market
                                                                                                         Finally, the Exchange is proposing to              system.
                                              substantively identical to corresponding                make several non-substantive changes to                  Finally, the Exchange believes that
                                              rules on BATS, BYX, and EDGA.6                          Rule 8.15. Specifically, in coordination              the non-substantive changes described
                                                 Currently, paragraph (d) of                          with the elimination of paragraph (d) of              above will contribute to the protection
                                              Interpretation and Policy to Rule 8.15                  Interpretation and Policy .01 to Rule                 of investors and the public interest by
                                              includes Rule 2.5 Interpretation .04:                   8.15, the Exchange is proposing to make               helping to avoid confusion with respect
                                              Firm Element of Continuing Education                    several corresponding and non-                        to Exchange rules by creating a
                                              Requirement (the ‘‘CE Rule’’) under the                 substantive changes to the numbering of               consistent numbering system in its
                                              list of Exchange rule violations and                    the rule. The Exchange is also proposing              Rules.
                                              recommended fine schedule pursuant to
                                                                                                      to add a period to each of the sentences
                                              Rule 8.15 related to the imposition of                                                                        B. Self-Regulatory Organization’s
                                                                                                      in proposed paragraphs (f) and (g) of
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                                              fines for minor violations of rules (the                                                                      Statement on Burden on Competition
                                                                                                      Interpretation and Policy .01 to Rule
                                                                                                      8.15.                                                   The Exchange does not believe that
                                                 5 See Securities Exchange Act Release No. 71449

                                              (January 30, 2014), 79 FR 6961 (February 5, 2014)
                                                                                                                                                            the proposed rule change will impose
                                              (SR–EDGX–2013–43; SR–EDGA–2013–34).                       7 The Exchange notes that BATS and BYX do not
                                                 6 The Exchange understands that BATS, BYX, and                                                               8 15 U.S.C. 78f(b).
                                                                                                      currently and are not going to propose to include
                                                                                                                                                              9 15 U.S.C. 78f(b)(5).
                                              EDGA intend to file proposed rule changes with the      a provision to cover the CE Rule currently included
                                              Commission to adopt substantively identical rules.      in the Exchange’s MRVP.                                 10 See supra notes 6 and 7.




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                                                                             Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices                                               9841

                                              any burden on competition not                           designates the proposed rule change to                received will be posted without change;
                                              necessary or appropriate in furtherance                 be operative upon filing.13                           the Commission does not edit personal
                                              of the purposes of the act. To the                         At any time within 60 days of the                  identifying information from
                                              contrary, allowing the Exchange to                      filing of the proposed rule change, the               submissions. You should submit only
                                              implement substantively identical rules                 Commission summarily may                              information that you wish to make
                                              related to the imposition of fines for                  temporarily suspend such rule change if               available publicly. All submissions
                                              minor violations of rules across each of                it appears to the Commission that such                should refer to File No. SR–EDGX–
                                              the BGM Affiliated Exchanges does not                   action is necessary or appropriate in the             2015–10 and should be submitted on or
                                              present any competitive issues, but                     public interest, for the protection of                before March 17, 2015.
                                              rather is designed to provide greater                   investors, or otherwise in furtherance of               For the Commission, by the Division of
                                              harmonization among Exchange, BATS,                     the purposes of the Act.                              Trading and Markets, pursuant to delegated
                                              BYX, and EDGA rules of similar                          IV. Solicitation of Comments                          authority.14
                                              purpose, resulting in less burdensome                                                                         Brent J. Fields,
                                              and more efficient regulatory                             Interested persons are invited to
                                                                                                                                                            Secretary.
                                              compliance for common members of the                    submit written data, views and
                                                                                                      arguments concerning the foregoing,                   [FR Doc. 2015–03667 Filed 2–23–15; 8:45 am]
                                              BGM Affiliated Exchanges and an
                                              enhanced ability of the BGM Affiliated                  including whether the proposal is                     BILLING CODE 8011–01–P

                                              Exchanges to fairly and efficiently                     consistent with the Act. Comments may
                                              regulate members, which will further                    be submitted by any of the following
                                                                                                      methods:                                              SECURITIES AND EXCHANGE
                                              enhance competition.                                                                                          COMMISSION
                                              C. Self-Regulatory Organization’s                       Electronic Comments
                                                                                                                                                            [Release No. 34–74291; File No. SR–MIAX–
                                              Statement on Comments on the                              • Use the Commission’s Internet                     2015–09]
                                              Proposed Rule Change Received From                      comment form (http://www.sec.gov/
                                              Members, Participants or Others                         rules/sro.shtml); or                                  Self-Regulatory Organizations; Miami
                                                The Exchange has neither solicited                      • Send an email to rule-comments@                   International Securities Exchange LLC;
                                              nor received written comments on the                    sec.gov. Please include File No. SR–                  Notice of Filing and Immediate
                                              proposed rule change.                                   EDGX–2015–10 on the subject line.                     Effectiveness of a Proposed Rule
                                                                                                      Paper Comments                                        Change To Amend Its Fee Schedule
                                              III. Date of Effectiveness of the
                                              Proposed Rule Change and Timing for                        • Send paper comments in triplicate                February 18, 2015.
                                              Commission Action                                       to Brent J. Fields, Secretary, Securities                Pursuant to the provisions of Section
                                                                                                      and Exchange Commission, 100 F Street                 19(b)(1) of the Securities Exchange Act
                                                 Because the foregoing proposed rule
                                                                                                      NE., Washington, DC 20549–1090.                       of 1934 (‘‘Act’’) 1 and Rule 19b–4
                                              change does not: (i) Significantly affect
                                                                                                      All submissions should refer to File No.              thereunder,2 notice is hereby given that
                                              the protection of investors or the public
                                                                                                      SR–EDGX–2015–10. This file number                     on February 5, 2015, Miami
                                              interest; (ii) impose any significant
                                                                                                      should be included on the subject line                International Securities Exchange LLC
                                              burden on competition; and (iii) become
                                                                                                      if email is used. To help the                         (‘‘MIAX’’ or ‘‘Exchange’’) filed with the
                                              operative for 30 days from the date on
                                                                                                      Commission process and review your                    Securities and Exchange Commission
                                              which it was filed, or such shorter time
                                                                                                      comments more efficiently, please use                 (‘‘Commission’’) a proposed rule change
                                              as the Commission may designate, it has
                                                                                                      only one method. The Commission will                  as described in Items I, II, and III below,
                                              become effective pursuant to Section
                                                                                                      post all comments on the Commission’s                 which Items have been prepared by the
                                              19(b)(3)(A) of the Act 11 and paragraph
                                                                                                      Internet Web site (http://www.sec.gov/                Exchange. The Commission is
                                              of Rule 19b–4(f)(6) thereunder.12
                                                 The Exchange has asked the                           rules/sro.shtml). Copies of the                       publishing this notice to solicit
                                              Commission to waive the 30-day                          submission, all subsequent                            comments on the proposed rule change
                                              operative delay so that the proposal may                amendments, all written statements                    from interested persons.
                                              become operative immediately upon                       with respect to the proposed rule                     I. Self-Regulatory Organization’s
                                              filing. The Exchange stated that waiver                 change that are filed with the                        Statement of the Terms of Substance of
                                              of this requirement is consistent with                  Commission, and all written                           the Proposed Rule Change
                                              the protection of investors and the                     communications relating to the
                                                                                                      proposed rule change between the                         The Exchange is filing a proposal to
                                              public interest because it will allow the                                                                     amend the MIAX Options Fee Schedule.
                                              Exchange to have consistent rules                       Commission and any person, other than
                                                                                                      those that may be withheld from the                      The text of the proposed rule change
                                              related to minor violations across each                                                                       is available on the Exchange’s Web site
                                              of the BGM Affiliated Exchanges, which                  public in accordance with the
                                                                                                      provisions of 5 U.S.C. 552, will be                   at http://www.miaxoptions.com/filter/
                                              it believes will both more consistently                                                                       wotitle/rule_filing, at MIAX’s principal
                                              and effectively regulate members of the                 available for Web site viewing and
                                                                                                      printing in the Commission’s Public                   office, and at the Commission’s Public
                                              BGM Affiliated Exchanges as well as                                                                           Reference Room.
                                              reduce the regulatory burden on                         Reference Room, 100 F Street NE.,
                                              Members of the Exchange that are also                   Washington, DC 20549, on official                     II. Self-Regulatory Organization’s
                                              members of EDGA, BYX and/or BZX.                        business days between the hours of                    Statement of the Purpose of, and
                                              The Commission believes that the                        10:00 a.m. and 3:00 p.m. Copies of such               Statutory Basis for, the Proposed Rule
                                              proposed rule change presents no novel                  filing will also be available for                     Change
tkelley on DSK3SPTVN1PROD with NOTICES




                                              issues and that waiver of the 30-day                    inspection and copying at the principal                  In its filing with the Commission, the
                                              operative delay is consistent with the                  office of the Exchange. All comments                  Exchange included statements
                                              protection of investors and the public                                                                        concerning the purpose of and basis for
                                                                                                         13 For purposes only of waiving the 30-day
                                              interest. Therefore, the Commission                     operative delay, the Commission has also
                                                                                                                                                              14 17 CFR 200.30–3(a)(12).
                                                                                                      considered the proposed rule’s impact on
                                                11 15 U.S.C. 78s(b)(3)(A).                                                                                    1 15 U.S.C. 78s(b)(1).
                                                                                                      efficiency, competition, and capital formation. See
                                                12 17 CFR 240.19b–4.                                  15 U.S.C. 78c(f).                                       2 17 CFR 240.19b–4.




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Document Created: 2015-12-18 13:22:40
Document Modified: 2015-12-18 13:22:40
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 9839 

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