Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the EDGX Exchange, Inc. Fee Schedule, 48734-48736 [2010-19760]
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48734
Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Notices
therefore continue to be reasonable and
equitably allocated to those members
that opt to direct orders to the Exchange
rather than competing venues.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 6 and Rule 19b–4(f)(2) 7
thereunder. At any time within 60 days
of the filing of such 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 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–EDGA–2010–10 on the
subject line.
sroberts on DSKD5P82C1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–EDGA–2010–10. This file
number should be included on the
6 15
7 17
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
VerDate Mar<15>2010
16:52 Aug 10, 2010
Jkt 220001
subject line if e-mail 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission,8 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGA–
2010–10 and should be submitted on or
before September 1, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19759 Filed 8–10–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62640; File No. SR–EDGX–
2010–10]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the EDGX Exchange, Inc. Fee
Schedule
August 4, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
8 The
text of the proposed rule change is available
on Exchange’s Web site at https://
www.directedge.com, on the Commission’s Web site
at https://www.sec.gov, at EDGA, and at the
Commission’s Public Reference Room.
9 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
notice is hereby given that on July 30,
2010, the EDGX Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
fees and rebates applicable to Members 3
of the Exchange pursuant to EDGX Rule
15.1(a) and (c) to (i) establish a rebate;
(ii) charge for legacy International
Securities Exchange (‘‘ISE’’) FIX session
fees; and (iii) make other technical
amendments to the fee schedule.
All of the changes described herein
are applicable to EDGX Members. The
text of the proposed rule change is
available on the Exchange’s Internet
Web site at https://www.directedge.com.
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
self-regulatory organization 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 self-regulatory organization 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
(i) ISE FIX Session Fees
The Exchange proposes to charge for
legacy ISE 4 Financial Information
Exchange (‘‘FIX’’) sessions (‘‘Sessions’’)
used to connect to EDGX and thereby,
3 A Member is any registered broker or dealer that
has been admitted to membership in the Exchange.
4 A wholly-owned subsidiary of Direct Edge
Holdings, LLC (prior to July 16, 2010) previously
operated the ISE Stock Exchange as a facility of ISE.
These Session fees are identical to the fees filed
previously filed by and billed for by the ISE. See
Securities Exchange Act Release No. 56379
(September 10, 2007), 72 FR 52591 (September 14,
2007) (SR–ISE–2007–79).
E:\FR\FM\11AUN1.SGM
11AUN1
Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Notices
amend its fee schedule accordingly.5
These are logical ports used to enter
orders into the Exchange’s trading
system and to receive order messages
from the Exchange. The Sessions are
currently being used to send orders to
EDGX by certain legacy Members of the
ISE who became Members of EDGX. The
amendment to the fee schedule enables
the Exchange to continue to bill
Members for these Sessions until they
are terminated. Members will be
charged $250/month for the first two
Sessions and $50/month for each
Session thereafter. The Exchange
believes that the fees obtained will
enable it to cover certain costs. First, the
fees would enable the Exchange to
charge for existing infrastructure costs
for a legacy system that the Exchange is
planning to discontinue using.
Secondly, the fees would cover those
costs associated with allowing Members
to continue to use this legacy
infrastructure until they have
successfully transitioned to EDGX
Sessions (which are currently provided
at no charge). Finally, switching over to
the EDGX Sessions involves no
additional costs nor software changes by
Members.
(ii) Other Technical Amendments
The Exchange proposes to make
several technical amendments to its fee
schedule. The Exchange proposes to
move the text in footnote 1 that states
that ‘‘upon a Member’s request, EDGX
will aggregate share volume calculations
for wholly owned affiliates on a
prospective basis’’ to new footnote ‘‘a.’’
Then, the Exchange proposes adding a
reference to footnote ‘‘a’’ next to all
numbered footnotes (except footnotes 2
and 4 since these say ‘‘intentionally
omitted.’’) This amendment clarifies that
the ability of Members to request
aggregation and the Exchange to
aggregate share volume calculations for
wholly owned affiliates on a prospective
basis applies across all fee and volume
threshold calculations and not just to
the language found in footnote 1.
The Exchange proposes to delete the
reference to footnote 4 found on Flags
E and 5 since footnote 4 is ‘‘intentionally
omitted’’ and leaving the reference intact
leads to confusion by Members.
sroberts on DSKD5P82C1PROD with NOTICES
5 As
stated in SR–ISE–2007–79, the ISE used the
Financial Information Exchange (FIX) protocol,
which Members program to in order to develop
applications that send trading commands and/or
queries to and receive broadcasts and/or
transactions from the trading system. The protocol
processes quotes, receives orders from Members,
tracks activity in the underlying markets, when
applicable, executes trades in the matching engine,
and broadcasts trade details to participating
Members.
VerDate Mar<15>2010
16:52 Aug 10, 2010
Jkt 220001
(iii) Proposed Rebate
Currently, Members can qualify for a
rebate of $0.0032 per share for all
liquidity posted on EDGX if they add or
route at least 5,000,000 shares of average
daily volume prior to 9:30 AM or after
4:00 PM (includes all flags except 6)
AND add a minimum of 50,000,000
shares of average daily volume on EDGX
in total, including during both market
hours and pre and post-trading hours.
The Exchange proposes to add an
additional rebate to footnote 1 of its fee
schedule which will provide Members a
$0.0031 rebate per share for liquidity
added on EDGX if the Member on a
daily basis, measured monthly posts
0.75% of the Total Consolidated
Volume (‘‘TCV’’) in average daily
volume. TCV is defined as volume
reported by all exchanges and trade
reporting facilities to the consolidated
transaction reporting plans for Tapes A,
B and C securities. The Exchange
believes that this pricing is appropriate
since this rebate ($ 0.0031 per share),
which is $0.0001 lower than the $0.0032
per share rebate mentioned above, is
also easier to meet. For example, 0.75%
of the average TCV for June 2010 (9.3
billion) was approximately 70 million
shares, but this volume need not be
posted (like that required for the
$0.0032 rebate per share) only during
pre and post-trading hours, a more
limited time period. Therefore, this
threshold is not as restrictive as the
criteria to qualify for the $0.0032 rebate.
In addition, the rebate also results in
part from lower administrative costs
associated with higher volume.
EDGX Exchange proposes to
implement these amendments to the
Exchange fee schedule on August 1,
2010.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities. The
Exchange notes that it operates in a
highly competitive market in which
market participants can readily direct
order flow to competing venues if they
deem fee levels at a particular venue to
be excessive. The proposed rule change
reflects a competitive pricing structure
designed to incent market participants
to direct their order flow to the
Exchange. The Exchange believes that
6 15
7 15
PO 00000
Frm 00094
Fmt 4703
the fees obtained from legacy ISE
Sessions will enable it to cover its
infrastructure costs associated with
allowing Members to continue to use
this legacy infrastructure until they have
successfully transitioned to EDGX
Sessions. Finally, the Exchange believes
that the proposed rates are equitable in
that they apply uniformly to all
Members and provide higher rebates for
higher volume thresholds, resulting
from lower administrative costs. The
Exchange believes the fees and credits
remain competitive with those charged
by other venues and therefore continue
to be reasonable and equitably allocated
to those members that opt to direct
orders to the Exchange rather than
competing venues.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 8 and Rule 19b–4(f)(2) 9
thereunder. At any time within 60 days
of the filing of such 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 proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
8 15
U.S.C. 78f.
U.S.C. 78f(b)(4).
9 17
Sfmt 4703
48735
E:\FR\FM\11AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
11AUN1
48736
Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
Fifth Floor, Washington, DC 20522–
0505.
Dated: August 3, 2010.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–EDGX–2010–10 on the
subject line.
[FR Doc. 2010–19760 Filed 8–10–10; 8:45 am]
Paper Comments
DEPARTMENT OF STATE
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
[Public Notice 7117]
[Public Notice 7118]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Kurt
Schwitters: Color and Collage’’
Culturally Significant Objects Imported
´
for Exhibition Determinations: ‘‘Miro:
The Dutch Interiors’’
sroberts on DSKD5P82C1PROD with NOTICES
All submissions should refer to File
Number SR–EDGX–2010–10. This file
number should be included on the
subject line if e-mail 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission,10 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGX–
2010–10 and should be submitted on or
before September 1, 2010.
10 The text of the proposed rule change is
available on Exchange’s Web site at https://
www.directedge.com, on the Commission’s Web site
at https://www.sec.gov, at EDGX, and at the
Commission’s Public Reference Room.
VerDate Mar<15>2010
18:05 Aug 10, 2010
Jkt 220001
BILLING CODE 8010–01–P
[FR Doc. 2010–19836 Filed 8–10–10; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘Kurt
Schwitters: Color and Collage,’’
imported from abroad for temporary
exhibition within the United States, are
of cultural significance. The objects are
imported pursuant to loan agreements
with the foreign owners or custodians.
I also determine that the exhibition or
display of the exhibit objects at the
Menil Collection, Houston, TX, from on
or about October 22, 2010, until on or
about January 22, 2011; the Princeton
University Art Museum, Princeton, NJ,
from on or about March 26, 2011, until
on or about June 26, 2011; the UC
Berkeley Art Museum and Pacific Film
Archive, Berkeley, CA, from on or about
August 3, 2011, until on or about
November 27, 2011, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Carol B.
Epstein, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: 202/632–6473). The address
is U.S. Department of State, SA–5, L/PD,
SUMMARY:
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
´
included in the exhibition ‘‘Miro: The
Dutch Interiors,’’ imported from abroad
for temporary exhibition within the
United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the exhibit objects at The
Metropolitan Museum of Art, New York,
NY, from on or about October 4, 2010,
until on or about January 17, 2011, and
at possible additional exhibitions or
venues yet to be determined, is in the
national interest. I have ordered that
Public Notice of these Determinations
be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Julie
Simpson, Attorney-Adviser, Office of
the Legal Adviser, U.S. Department of
State (telephone: 202–632–6467). The
mailing address is U.S. Department of
State, SA–5, L/PD, Fifth Floor (Suite
5H03), Washington, DC 20522–0505.
SUMMARY:
Dated: August 5, 2010.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2010–19837 Filed 8–10–10; 8:45 am]
11 17
PO 00000
CFR 200.30–3(a)(12).
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BILLING CODE 4710–05–P
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]]>Agencies
[Federal Register Volume 75, Number 154 (Wednesday, August 11, 2010)]
[Notices]
[Pages 48734-48736]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19760]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62640; File No. SR-EDGX-2010-10]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Amendments to the EDGX Exchange, Inc. Fee Schedule
August 4, 2010.
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 July 30, 2010, the EDGX Exchange, Inc. (the ``Exchange'' or the
``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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its fees and rebates applicable to
Members \3\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c) to
(i) establish a rebate; (ii) charge for legacy International Securities
Exchange (``ISE'') FIX session fees; and (iii) make other technical
amendments to the fee schedule.
---------------------------------------------------------------------------
\3\ A Member is any registered broker or dealer that has been
admitted to membership in the Exchange.
---------------------------------------------------------------------------
All of the changes described herein are applicable to EDGX Members.
The text of the proposed rule change is available on the Exchange's
Internet Web site at https://www.directedge.com.
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 self-regulatory organization
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 self-regulatory organization
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
(i) ISE FIX Session Fees
The Exchange proposes to charge for legacy ISE \4\ Financial
Information Exchange (``FIX'') sessions (``Sessions'') used to connect
to EDGX and thereby,
[[Page 48735]]
amend its fee schedule accordingly.\5\ These are logical ports used to
enter orders into the Exchange's trading system and to receive order
messages from the Exchange. The Sessions are currently being used to
send orders to EDGX by certain legacy Members of the ISE who became
Members of EDGX. The amendment to the fee schedule enables the Exchange
to continue to bill Members for these Sessions until they are
terminated. Members will be charged $250/month for the first two
Sessions and $50/month for each Session thereafter. The Exchange
believes that the fees obtained will enable it to cover certain costs.
First, the fees would enable the Exchange to charge for existing
infrastructure costs for a legacy system that the Exchange is planning
to discontinue using. Secondly, the fees would cover those costs
associated with allowing Members to continue to use this legacy
infrastructure until they have successfully transitioned to EDGX
Sessions (which are currently provided at no charge). Finally,
switching over to the EDGX Sessions involves no additional costs nor
software changes by Members.
---------------------------------------------------------------------------
\4\ A wholly-owned subsidiary of Direct Edge Holdings, LLC
(prior to July 16, 2010) previously operated the ISE Stock Exchange
as a facility of ISE. These Session fees are identical to the fees
filed previously filed by and billed for by the ISE. See Securities
Exchange Act Release No. 56379 (September 10, 2007), 72 FR 52591
(September 14, 2007) (SR-ISE-2007-79).
\5\ As stated in SR-ISE-2007-79, the ISE used the Financial
Information Exchange (FIX) protocol, which Members program to in
order to develop applications that send trading commands and/or
queries to and receive broadcasts and/or transactions from the
trading system. The protocol processes quotes, receives orders from
Members, tracks activity in the underlying markets, when applicable,
executes trades in the matching engine, and broadcasts trade details
to participating Members.
---------------------------------------------------------------------------
(ii) Other Technical Amendments
The Exchange proposes to make several technical amendments to its
fee schedule. The Exchange proposes to move the text in footnote 1 that
states that ``upon a Member's request, EDGX will aggregate share volume
calculations for wholly owned affiliates on a prospective basis'' to
new footnote ``a.'' Then, the Exchange proposes adding a reference to
footnote ``a'' next to all numbered footnotes (except footnotes 2 and 4
since these say ``intentionally omitted.'') This amendment clarifies
that the ability of Members to request aggregation and the Exchange to
aggregate share volume calculations for wholly owned affiliates on a
prospective basis applies across all fee and volume threshold
calculations and not just to the language found in footnote 1.
The Exchange proposes to delete the reference to footnote 4 found
on Flags E and 5 since footnote 4 is ``intentionally omitted'' and
leaving the reference intact leads to confusion by Members.
(iii) Proposed Rebate
Currently, Members can qualify for a rebate of $0.0032 per share
for all liquidity posted on EDGX if they add or route at least
5,000,000 shares of average daily volume prior to 9:30 AM or after 4:00
PM (includes all flags except 6) AND add a minimum of 50,000,000 shares
of average daily volume on EDGX in total, including during both market
hours and pre and post-trading hours.
The Exchange proposes to add an additional rebate to footnote 1 of
its fee schedule which will provide Members a $0.0031 rebate per share
for liquidity added on EDGX if the Member on a daily basis, measured
monthly posts 0.75% of the Total Consolidated Volume (``TCV'') in
average daily volume. TCV is defined as volume reported by all
exchanges and trade reporting facilities to the consolidated
transaction reporting plans for Tapes A, B and C securities. The
Exchange believes that this pricing is appropriate since this rebate ($
0.0031 per share), which is $0.0001 lower than the $0.0032 per share
rebate mentioned above, is also easier to meet. For example, 0.75% of
the average TCV for June 2010 (9.3 billion) was approximately 70
million shares, but this volume need not be posted (like that required
for the $0.0032 rebate per share) only during pre and post-trading
hours, a more limited time period. Therefore, this threshold is not as
restrictive as the criteria to qualify for the $0.0032 rebate. In
addition, the rebate also results in part from lower administrative
costs associated with higher volume.
EDGX Exchange proposes to implement these amendments to the
Exchange fee schedule on August 1, 2010.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its members and other persons using its
facilities. The Exchange notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive. The proposed rule change reflects a competitive pricing
structure designed to incent market participants to direct their order
flow to the Exchange. The Exchange believes that the fees obtained from
legacy ISE Sessions will enable it to cover its infrastructure costs
associated with allowing Members to continue to use this legacy
infrastructure until they have successfully transitioned to EDGX
Sessions. Finally, the Exchange believes that the proposed rates are
equitable in that they apply uniformly to all Members and provide
higher rebates for higher volume thresholds, resulting from lower
administrative costs. The Exchange believes the fees and credits remain
competitive with those charged by other venues and therefore continue
to be reasonable and equitably allocated to those members that opt to
direct orders to the Exchange rather than competing venues.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \8\ and Rule 19b-4(f)(2) \9\ thereunder. At any
time within 60 days of the filing of such proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 19b-4(f)(2).
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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:
[[Page 48736]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-EDGX-2010-10 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-EDGX-2010-10. This file
number should be included on the subject line if e-mail 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission,\10\ 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 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
EDGX-2010-10 and should be submitted on or before September 1, 2010.
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\10\ The text of the proposed rule change is available on
Exchange's Web site at https://www.directedge.com, on the
Commission's Web site at https://www.sec.gov, at EDGX, and at the
Commission's Public Reference Room.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19760 Filed 8-10-10; 8:45 am]
BILLING CODE 8010-01-P
