Self-Regulatory Organizations; EDGX Exchange, Inc.; Order Approving Proposed Rule Change to Amend the EDGX Fee Schedule to Impose Fees for Physical Ports Used To Connect To EDGX Exchange, 50019-50020 [2010-20103]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
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–EDGA–
2010–09 and should be submitted on or
before September 7, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–20105 Filed 8–13–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62680; File No. SR–EDGX–
2010–06]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Order Approving
Proposed Rule Change to Amend the
EDGX Fee Schedule to Impose Fees
for Physical Ports Used To Connect To
EDGX Exchange
sroberts on DSKD5P82C1PROD with NOTICES
August 10, 2010.
I. Introduction
On July 1, 2010, the EDGX Exchange,
Inc. (‘‘EDGX’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
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 EDGA, and at the
Commission’s Public Reference Room.
11 17 CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:51 Aug 13, 2010
Jkt 220001
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend its fee schedule to
begin charging an annual fee to
Members and non-members for certain
physical ports used to connect to the
Exchange’s systems. The proposed rule
change was published for comment in
the Federal Register on July 9, 2010.3
The Commission received no comment
letters regarding the proposal. This
order approves the proposed rule
change.
50019
other market centers provide similar
services to their Members and nonmembers.5
The Exchange believes that the
proposal will offer market participants
additional EDGX connectivity choices,
providing for greater access to EDGX
while allowing each market participant
to choose the method of connectivity
based on its specific needs.
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
II. Description of the Proposal
applicable to a national securities
exchange.6 Specifically, the
The Exchange proposes to begin
Commission finds that the proposal is
charging an annual fee to Members and
non-members for physical ports used to consistent with Section 6(b)(4) of the
Act,7 which requires the equitable
connect to the Exchange’s systems for
allocation of reasonable dues, fees and
purposes that include order entry and
the receipt of Exchange data. A physical other charges among its members and
other persons using its facilities, and
port is a port used by a Member or nonmember to connect into the Exchange at Section 6(b)(5) of the Act,8 which
the data centers where Exchange servers requires, among other things, that the
rules of a national securities exchange
are located.4 Physical port connections
be designed to promote just and
can occur either through an external
equitable principles of trade, to remove
telecommunication circuit or a crossimpediments to and perfect the
connection. Currently, Members and
mechanism of a free and open market
non-members have a number of
and a national market system and, in
alternative methods available to them
general, to protect investors and the
for connecting to the Exchange without
public interest, and not be designed to
the need to obtain an independent
permit unfair discrimination between
physical connection, including the use
of financial extranets or service bureaus. customers, issuers, brokers, or dealers.
The Commission also finds that the
The Exchange believes that some
Members and non-members may wish to proposed rule change is consistent with
Section 6(b)(8) of the Act,9 which
connect directly to the Exchange’s
requires that the rules of an exchange
systems with their own dedicated
not impose a burden on competition not
circuit connection. To support their
necessary or appropriate in furtherance
requirements and the associated
of the purpose of the Act. Finally, the
infrastructure costs related to direct
Commission finds that the proposed
circuit connectivity, EDGX proposes to
rule change is consistent with Rule
charge Members and non-members the
603(a) of Regulation NMS,10 which
following annual fees based on the
requires an exclusive processor that
connectivity service type:
distributes information with respect to
Connection
Annual fee per quotations for or transactions in an NMS
service type
physical port
stock to do so on terms that are fair and
reasonable and not unreasonably
1 Gb Copper .........................
5,000
1 Gb Fiber ............................
7,500 discriminatory.
The Commission believes that the
10 Gb Fiber ..........................
10,000
proposed physical port fees are
equitably allocated among Members and
Only one physical port is required to
non-members and do not unfairly or
access all services for EDGX. However,
Members and non-members may choose
5 See Securities Exchange Act Release No. 61545
more than one physical port and
8769 (February 25, 2010)
different connection service types based (February 19, 2010), 75 FRSR–BATS–2009–032). See
(order approving File No.
on their needs. The Exchange notes that also Securities Exchange Act Release No. 62392
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 62437
(July 1, 2010), 75 FR 39599.
4 Non-members may include non-member service
bureaus that act as a conduit for orders entered by
Exchange Members that are their customers, as well
as sponsored participants and market data
recipients.
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
(June 28, 2010), 75 FR 38857 (July 6, 2010) (notice
of filing of File No. SR–Nasdaq–2010–077).
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f(b)(8).
10 17 CFR 242.603(a).
E:\FR\FM\16AUN1.SGM
16AUN1
50020
Federal Register / Vol. 75, No. 157 / Monday, August 16, 2010 / Notices
unreasonably discriminate between
customers, issuers, brokers, or dealers
because the proposed physical port fees
do not distinguish among the type of
participant but rather are the same for
all Members and non-members. The
Commission also believes that EDGX
was subject to significant competitive
pressure to act equitably, fairly, and
reasonably in setting the physical port
fees, in light of the highly competitive
nature of the market for execution and
routing services.11
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–EDGX–2010–
06) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–20103 Filed 8–13–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62681; File No. SR–EDGA–
2010–06]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Order Approving
Proposed Rule Change To Amend the
EDGA Fee Schedule To Impose Fees
for Physical Ports Used To Connect to
EDGA Exchange
August 10, 2010.
I. Introduction
sroberts on DSKD5P82C1PROD with NOTICES
On July 1, 2010, the EDGA Exchange,
Inc. (‘‘EDGA’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend its fee schedule to
begin charging an annual fee to
Members and non-members for certain
physical ports used to connect to the
Exchange’s systems. The proposed rule
change was published for comment in
the Federal Register on July 9, 2010.3
The Commission received no comment
letters regarding the proposal. This
11 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (File No. SR–NYSEArca–2006–21).
12 15 U.S.C. 78s(b)(2).
13 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 62436
(July 1, 2010), 75 FR 39600.
VerDate Mar<15>2010
18:51 Aug 13, 2010
Jkt 220001
III. Discussion
The Commission finds that the
proposed rule change is consistent with
II. Description of the Proposal
the requirements of the Act and the
The Exchange proposes to begin
rules and regulations thereunder
charging an annual fee to Members and
applicable to a national securities
non-members for physical ports used to exchange.6 Specifically, the
connect to the Exchange’s systems for
Commission finds that the proposal is
purposes that include order entry and
consistent with Section 6(b)(4) of the
the receipt of Exchange data. A physical Act,7 which requires the equitable
port is a port used by a Member or nonallocation of reasonable dues, fees and
member to connect into the Exchange at other charges among its members and
the data centers where Exchange servers other persons using its facilities, and
are located.4 Physical port connections
Section 6(b)(5) of the Act,8 which
requires, among other things, that the
can occur either through an external
rules of a national securities exchange
telecommunication circuit or a crossbe designed to promote just and
connection. Currently, Members and
equitable principles of trade, to remove
non-members have a number of
impediments to and perfect the
alternative methods available to them
mechanism of a free and open market
for connecting to the Exchange without
and a national market system and, in
the need to obtain an independent
general, to protect investors and the
physical connection, including the use
of financial extranets or service bureaus. public interest, and not be designed to
permit unfair discrimination between
The Exchange believes that some
Members and non-members may wish to customers, issuers, brokers, or dealers.
The Commission also finds that the
connect directly to the Exchange’s
proposed rule change is consistent with
systems with their own dedicated
Section 6(b)(8) of the Act,9 which
circuit connection. To support their
requires that the rules of an exchange
requirements and the associated
not impose a burden on competition not
infrastructure costs related to direct
necessary or appropriate in furtherance
circuit connectivity, EDGA proposes to
of the purpose of the Act. Finally, the
charge Members and non-members the
Commission finds that the proposed
following annual fees based on the
rule change is consistent with Rule
connectivity service type:
603(a) of Regulation NMS,10 which
Annual fee per requires an exclusive processor that
Connection service type
physical port
distributes information with respect to
quotations for or transactions in an NMS
1 Gb Copper .........................
$5,000 stock to do so on terms that are fair and
1 Gb Fiber ............................
7,500
reasonable and not unreasonably
10 Gb Fiber ..........................
10,000
discriminatory.
The Commission believes that the
Only one physical port is required to
proposed physical port fees are
access all services for EDGA. However,
equitably allocated among Members and
Members and non-members may choose non-members and do not unfairly or
more than one physical port and
unreasonably discriminate between
different connection service types based customers, issuers, brokers, or dealers
on their needs. The Exchange notes that because the proposed physical port fees
other market centers provide similar
do not distinguish among the type of
services to their Members and nonparticipant but rather are the same for
members.5
all Members and non-members. The
Commission also believes that EDGA
The Exchange believes that the
was subject to significant competitive
proposal will offer market participants
pressure to act equitably, fairly, and
additional EDGA connectivity choices,
reasonably in setting the physical port
providing for greater access to EDGA
fees, in light of the highly competitive
while allowing each market participant
nature of the market for execution and
to choose the method of connectivity
routing services.11
based on its specific needs.
order approves the proposed rule
change.
4 Non-members may include non-member service
bureaus that act as a conduit for orders entered by
Exchange Members that are their customers, as well
as sponsored participants and market data
recipients.
5 See Securities Exchange Act Release No. 61545
(February 19, 2010), 75 FR 8769 (February 25, 2010)
(order approving File No. SR–BATS–2009–032). See
also Securities Exchange Act Release No. 62392
(June 28, 2010), 75 FR 38857 (July 6, 2010) (notice
of filing of File No. SR–Nasdaq–2010–077).
PO 00000
Frm 00135
Fmt 4703
Sfmt 4703
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
9 15 U.S.C. 78f(b)(8).
10 17 CFR 242.603(a).
11 See Securities Exchange Act Release No. 59039
(December 2, 2008), 73 FR 74770 (December 9,
2008) (File No. SR–NYSEArca–2006–21).
E:\FR\FM\16AUN1.SGM
16AUN1
]]>Agencies
[Federal Register Volume 75, Number 157 (Monday, August 16, 2010)]
[Notices]
[Pages 50019-50020]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20103]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62680; File No. SR-EDGX-2010-06]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Order
Approving Proposed Rule Change to Amend the EDGX Fee Schedule to Impose
Fees for Physical Ports Used To Connect To EDGX Exchange
August 10, 2010.
I. Introduction
On July 1, 2010, the EDGX Exchange, Inc. (``EDGX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
amend its fee schedule to begin charging an annual fee to Members and
non-members for certain physical ports used to connect to the
Exchange's systems. The proposed rule change was published for comment
in the Federal Register on July 9, 2010.\3\ The Commission received no
comment letters regarding the proposal. This order approves the
proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62437 (July 1,
2010), 75 FR 39599.
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to begin charging an annual fee to Members
and non-members for physical ports used to connect to the Exchange's
systems for purposes that include order entry and the receipt of
Exchange data. A physical port is a port used by a Member or non-member
to connect into the Exchange at the data centers where Exchange servers
are located.\4\ Physical port connections can occur either through an
external telecommunication circuit or a cross-connection. Currently,
Members and non-members have a number of alternative methods available
to them for connecting to the Exchange without the need to obtain an
independent physical connection, including the use of financial
extranets or service bureaus. The Exchange believes that some Members
and non-members may wish to connect directly to the Exchange's systems
with their own dedicated circuit connection. To support their
requirements and the associated infrastructure costs related to direct
circuit connectivity, EDGX proposes to charge Members and non-members
the following annual fees based on the connectivity service type:
---------------------------------------------------------------------------
\4\ Non-members may include non-member service bureaus that act
as a conduit for orders entered by Exchange Members that are their
customers, as well as sponsored participants and market data
recipients.
------------------------------------------------------------------------
Annual fee per
Connection service type physical port
------------------------------------------------------------------------
1 Gb Copper............................................. 5,000
1 Gb Fiber.............................................. 7,500
10 Gb Fiber............................................. 10,000
------------------------------------------------------------------------
Only one physical port is required to access all services for EDGX.
However, Members and non-members may choose more than one physical port
and different connection service types based on their needs. The
Exchange notes that other market centers provide similar services to
their Members and non-members.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 61545 (February 19,
2010), 75 FR 8769 (February 25, 2010) (order approving File No. SR-
BATS-2009-032). See also Securities Exchange Act Release No. 62392
(June 28, 2010), 75 FR 38857 (July 6, 2010) (notice of filing of
File No. SR-Nasdaq-2010-077).
---------------------------------------------------------------------------
The Exchange believes that the proposal will offer market
participants additional EDGX connectivity choices, providing for
greater access to EDGX while allowing each market participant to choose
the method of connectivity based on its specific needs.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\6\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(4) of the Act,\7\ which requires the equitable allocation
of reasonable dues, fees and other charges among its members and other
persons using its facilities, and Section 6(b)(5) of the Act,\8\ which
requires, among other things, that the rules of a national securities
exchange be designed to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest, and not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers. The
Commission also finds that the proposed rule change is consistent with
Section 6(b)(8) of the Act,\9\ which requires that the rules of an
exchange not impose a burden on competition not necessary or
appropriate in furtherance of the purpose of the Act. Finally, the
Commission finds that the proposed rule change is consistent with Rule
603(a) of Regulation NMS,\10\ which requires an exclusive processor
that distributes information with respect to quotations for or
transactions in an NMS stock to do so on terms that are fair and
reasonable and not unreasonably discriminatory.
---------------------------------------------------------------------------
\6\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(8).
\10\ 17 CFR 242.603(a).
---------------------------------------------------------------------------
The Commission believes that the proposed physical port fees are
equitably allocated among Members and non-members and do not unfairly
or
[[Page 50020]]
unreasonably discriminate between customers, issuers, brokers, or
dealers because the proposed physical port fees do not distinguish
among the type of participant but rather are the same for all Members
and non-members. The Commission also believes that EDGX was subject to
significant competitive pressure to act equitably, fairly, and
reasonably in setting the physical port fees, in light of the highly
competitive nature of the market for execution and routing
services.\11\
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770 (December 9, 2008) (File No. SR-NYSEArca-2006-
21).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-EDGX-2010-06) be, and hereby
is, approved.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-20103 Filed 8-13-10; 8:45 am]
BILLING CODE 8010-01-P
