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, 2168-2170 [2011-430]

Download as PDF 2168 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices implications of that competition. NASDAQ believes that it has considered all relevant factors and has not considered irrelevant factors in order to establish a fair, reasonable, and not unreasonably discriminatory fees and an equitable allocation of fees among all users. The existence of numerous alternatives to NLS, including real-time consolidated data, free delayed consolidated data, and proprietary data from other sources ensures that NASDAQ cannot set unreasonable fees, or fees that are unreasonably discriminatory, without losing business to these alternatives. Accordingly, NASDAQ believes that the acceptance of the NLS product in the marketplace demonstrates the consistency of these fees with applicable statutory standards. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Three comment letters were filed regarding the proposed rule change as originally published for comment NASDAQ responded to these comments in a letter dated December 13, 2007. Both the comment letters and NASDAQ’s response are available on the SEC Web site at https://www.sec.gov/ comments/sr-nasdaq-2006–060/ nasdaq2006060.shtml. 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)(A)(ii) of the Act.9 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. mstockstill on DSKH9S0YB1PROD with NOTICES 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: 9 15 U.S.C. 78s(b)(3)(a)(ii). VerDate Mar<15>2010 17:25 Jan 11, 2011 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–NASDAQ–2010–172 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. [Release No. 34–63638; File No. SR–EDGX– 2010–25] 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 January 4, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 All submissions should refer to File notice is hereby given that on December Number SR–NASDAQ–2010–172. This 28, 2010, the EDGX Exchange, Inc. (the file number should be included on the ‘‘Exchange’’ or the ‘‘EDGX’’) filed with subject line if e-mail is used. To help the the Securities and Exchange Commission process and review your Commission (‘‘Commission’’) the comments more efficiently, please use proposed rule change as described in only one method. The Commission will Items I, II, and III below, which items post all comments on the Commission’s have been prepared by the selfInternet Web site (https://www.sec.gov/ regulatory organization. The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent solicit comments on the proposed rule amendments, all written statements change from interested persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the The Exchange proposes to amend its Commission and any person, other than fees and rebates applicable to Members 3 those that may be withheld from the of the Exchange pursuant to EDGX Rule public in accordance with the 15.1(a) and (c). provisions of 5 U.S.C. 552, will be All of the changes described herein available for Web site viewing and are applicable to EDGX Members. The printing in the Commission’s Public text of the proposed rule change is Reference Room, on official business available on the Exchange’s Internet days between the hours of 10 a.m. and Web site at https://www.directedge.com. 3 p.m. Copies of the filing also will be available for inspection and copying at II. Self-Regulatory Organization’s the principal office of the Exchange. All Statement of the Purpose of, and comments received will be posted Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying information from submissions. You In its filing with the Commission, the should submit only information that self-regulatory organization included you wish to make available publicly. All statements concerning the purpose of, submissions should refer to File and basis for, the proposed rule change Number SR–NASDAQ–2010–172 and and discussed any comments it received should be submitted on or before on the proposed rule change. The text February 2, 2011. of these statements may be examined at the places specified in Item IV below. For the Commission, by the Division of The self-regulatory organization has Trading and Markets, pursuant to delegated prepared summaries, set forth in authority.10 sections A, B and C below, of the most Elizabeth M. Murphy, significant aspects of such statements. Secretary. [FR Doc. 2011–431 Filed 1–11–11; 8:45 am] BILLING CODE 8011–01–P 10 17 Jkt 223001 SECURITIES AND EXCHANGE COMMISSION PO 00000 Fmt 4703 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 A Member is any registered broker or dealer, or any person associated with a registered broker or dealer, that has been admitted to membership in the Exchange. 2 17 CFR 200.30–3(a)(12). Frm 00088 1 15 Sfmt 4703 E:\FR\FM\12JAN1.SGM 12JAN1 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices mstockstill on DSKH9S0YB1PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Currently, for orders routed to Nasdaq BX that remove liquidity, a rebate of $0.0002 per share is provided to Members (yielding Flag ‘‘C’’). The Exchange proposes to increase this rebate to $0.0014 per share to reflect an increase in rebate provided by Nasdaq BX, effective January 3, 2011. In addition, for orders routed or rerouted to NYSE that remove liquidity, a fee of $0.0021 is charged to Members (yielding Flag ‘‘D’’). The Exchange proposes to increase this fee to $0.0023 to reflect an increase in fee assessed by NYSE, effective January 3, 2011. Similarly, for orders routed to NYSE that add liquidity, a rebate of $0.0013 per share is provided to Members (yielding Flag ‘‘F’’). The Exchange proposes to increase this rebate to $0.0015 per share to reflect an increase in rebate provided by NYSE, effective January 3, 2011. Currently, Members can qualify for the Mega Tier and be provided 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 a.m. or after 4 p.m. (includes all flags except 6) and add a minimum of 25,000,000 shares of average daily volume on EDGX in total, including during both market hours and pre and post-trading hours. The Exchange proposes to increase this rebate to $0.0033 per share to incent Members to add liquidity to EDGX during both market hours and pre and post-trading hours. As fewer Members generally trade during pre and posttrading hours because of the time parameters associated with these trading sessions, the Exchanges believes that this proposed increase in rebate would incent liquidity during these trading sessions. The rebate associated with the other method to qualify for the Mega Tier (if the Member posts on a daily basis, measured monthly, 0.75% of the Total Consolidated Volume in average daily volume) remains unchanged at $0.0032 per share. The Exchange believes that the above pricing is appropriate since higher rebates are directly correlated with more stringent criteria. The Mega Tier rebate (proposed at $0.0033 per share, otherwise set at $0.0032 per share) has the most stringent criteria, and is $0.0002/$0.0001 greater than the Ultra Tier rebate ($0.0031 per share) and $0.0003/$0.0002 greater than the Super Tier rebate ($0.0030 per share). For VerDate Mar<15>2010 17:25 Jan 11, 2011 Jkt 223001 example, based on average TCV for November 2010 (8.0 billion), in order for a Member to qualify for the proposed Mega Tier rebate of $0.0033, the Member would have to add or route at least 5,000,000 shares of average daily volume prior to 9:30 a.m. or after 4 p.m. (includes all flags except 6) AND add a minimum of 25,000,000 shares of average daily volume on EDGX in total, including during both market hours and pre and post-trading hours. Another way a Member can qualify for the Mega Tier (with a rebate of $0.0032 per share) would be to post 60 million shares on EDGX. In order to qualify for the Ultra Tier, which has less stringent criteria than the Mega Tier, the Member would have to post 40 million shares on EDGX. Finally, the Super Tier has the least stringent criteria. In order for a Member to qualify for this rebate, the Member would have to post 10 million shares on EDGX. In addition, these rebates also result, in part, from lower administrative costs associated with higher volume. EDGX Exchange proposes to implement these amendments to the Exchange fee schedule on January 1, 2011. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,4 in general, and furthers the objectives of Section 6(b)(4),5 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 proposed rates are equitable in that they apply uniformly to all Members. In addition, the rebates provided result, in part, from lower administrative costs associated with higher volume. 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 Members. 4 15 5 15 PO 00000 U.S.C. 78f. U.S.C. 78f(b)(4). Frm 00089 Fmt 4703 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–EDGX–2010–25 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–2010–25. 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 6 15 7 17 Sfmt 4703 2169 E:\FR\FM\12JAN1.SGM U.S.C. 78s(b)(3)(A). CFR 19b–4(f)(2). 12JAN1 2170 Federal Register / Vol. 76, No. 8 / Wednesday, January 12, 2011 / Notices 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–EDGX– 2010–25 and should be submitted on or before February 2, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–430 Filed 1–11–11; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–63664; File No. SR–ISE– 2010–120] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Fees and Rebates for Adding and Removing Liquidity mstockstill on DSKH9S0YB1PROD with NOTICES January 6, 2011. 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 December 23, 2010, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and 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 EDGX, 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. 17:25 Jan 11, 2011 Jkt 223001 I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The ISE is proposing to amend its transaction fees and rebates for adding and removing liquidity. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.ise.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 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 SECURITIES AND EXCHANGE COMMISSION VerDate Mar<15>2010 Exchange Commission the proposed rule change, and on January 5, 2011, filed Amendment No. 1 to 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, as amended, from interested persons. 1. Purpose The Exchange currently assesses a per contract transaction charge to market participants that add or remove liquidity from the Exchange (‘‘maker/ taker fees’’) in 100 options classes (the ‘‘Select Symbols’’).3 The Exchange currently charges a take fee of: (i) $0.25 3 Options classes subject to maker/taker fees are identified by their ticker symbol on the Exchange’s Schedule of Fees. See Securities Exchange Act Release Nos. 61869 (April 7, 2010), 75 FR 19449 (April 14, 2010) (SR–ISE–2010–25), 62048 (May 6, 2010), 75 FR 26830 (May 12, 2010) (SR–ISE–2010– 43), 62282 (June 11, 2010), 75 FR 34499 (June 17, 2010) (SR–ISE–2010–54), 62319 (June 17, 2010), 75 FR 36134 (June 24, 2010) (SR–ISE–2010–57), 62508 (July 15, 2010), 75 FR 42809 (July 22, 2010) (SR– ISE–2010–65), 62507 (July 15, 2010), 75 FR 42802 (July 22, 2010) (SR–ISE–2010–68), 62665 (August 9, 2010), 75 FR 50015 (August 16, 2010) (SR–ISE– 2010–82), 62805 (August 31, 2010), 75 FR 54682 (September 8, 2010) (SR–ISE–2010–90), 63283 (November 9, 2010), 75 FR 70059 (November 16, 2010) (SR–ISE–2010–106) and 63534 (December 13, 2010), 75 FR 79433 (December 20, 2010) (SR–ISE– 2010–114). PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 per contract for Market Maker, Market Maker Plus,4 Firm Proprietary and Customer (Professional) 5 orders; (ii) $0.35 per contract for Non-ISE Market Maker 6 orders; (iii) $0.20 per contract for Priority Customer 7 orders for 100 or more contracts. Priority Customer orders for less than 100 contracts are not assessed a fee for removing liquidity. The Exchange now proposes to increase the take fee for Firm Proprietary and Customer (Professional) orders from $0.25 per contract to $0.28 per contract. Additionally, in the interest of standardizing the take fee charged for Priority Customer orders, the Exchange proposes to lower the take fee for Priority Customer orders of 100 or more contracts from $0.20 per contract to $0.12 per contract while increasing the take fee for Priority Customer orders of less than 100 contracts from $0.00 per contract to $0.12 per contract. As a result, all Priority Customer orders, regardless of size, will be assessed a take fee of $0.12 per contract. For Complex Orders, the Exchange currently charges a take fee of: (i) $0.27 per contract for Market Maker, Market Maker Plus, Firm Proprietary and Customer (Professional) orders; and (ii) $0.35 per contract for Non-ISE Market Maker orders. Priority Customer orders, regardless of size, are not assessed a fee 4 A Market Maker Plus is a market maker who is on the National Best Bid or National Best Offer 80% of the time for series trading between $0.03 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was less than or equal to $100) and between $0.10 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was greater than $100) in premium in each of the front two expiration months and 80% of the time for series trading between $0.03 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was less than or equal to $100) and between $0.10 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was greater than $100) in premium across all expiration months in order to receive the rebate. The Exchange determines whether a market maker qualifies as a Market Maker Plus at the end of each month by looking back at each market maker’s quoting statistics during that month. If at the end of the month, a market maker meets the Exchange’s stated criteria, the Exchange rebates $0.10 per contract for transactions executed by that market maker during that month. The Exchange provides market makers a report on a daily basis with quoting statistics so that market makers can determine whether or not they are meeting the Exchange’s stated criteria. 5 A Customer (Professional) is a person who is not a broker/dealer and is not a Priority Customer. 6 A Non-ISE Market Maker, or Far Away Market Maker (‘‘FARMM’’), is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended (‘‘Exchange Act’’), registered in the same options class on another options exchange. 7 A Priority Customer is defined in ISE Rule 100(a)(37A) as a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). E:\FR\FM\12JAN1.SGM 12JAN1

Agencies

[Federal Register Volume 76, Number 8 (Wednesday, January 12, 2011)]
[Notices]
[Pages 2168-2170]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-430]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63638; File No. SR-EDGX-2010-25]


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

January 4, 2011.
    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 December 28, 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, II, 
and III 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).
---------------------------------------------------------------------------

    \3\ A Member is any registered broker or dealer, or any person 
associated with a 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.

[[Page 2169]]

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

1. Purpose
    Currently, for orders routed to Nasdaq BX that remove liquidity, a 
rebate of $0.0002 per share is provided to Members (yielding Flag 
``C''). The Exchange proposes to increase this rebate to $0.0014 per 
share to reflect an increase in rebate provided by Nasdaq BX, effective 
January 3, 2011.
    In addition, for orders routed or re-routed to NYSE that remove 
liquidity, a fee of $0.0021 is charged to Members (yielding Flag 
``D''). The Exchange proposes to increase this fee to $0.0023 to 
reflect an increase in fee assessed by NYSE, effective January 3, 2011. 
Similarly, for orders routed to NYSE that add liquidity, a rebate of 
$0.0013 per share is provided to Members (yielding Flag ``F''). The 
Exchange proposes to increase this rebate to $0.0015 per share to 
reflect an increase in rebate provided by NYSE, effective January 3, 
2011.
    Currently, Members can qualify for the Mega Tier and be provided 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 a.m. or after 4 p.m. (includes all flags except 6) and add a 
minimum of 25,000,000 shares of average daily volume on EDGX in total, 
including during both market hours and pre and post-trading hours. The 
Exchange proposes to increase this rebate to $0.0033 per share to 
incent Members to add liquidity to EDGX during both market hours and 
pre and post-trading hours. As fewer Members generally trade during pre 
and post-trading hours because of the time parameters associated with 
these trading sessions, the Exchanges believes that this proposed 
increase in rebate would incent liquidity during these trading 
sessions. The rebate associated with the other method to qualify for 
the Mega Tier (if the Member posts on a daily basis, measured monthly, 
0.75% of the Total Consolidated Volume in average daily volume) remains 
unchanged at $0.0032 per share.
    The Exchange believes that the above pricing is appropriate since 
higher rebates are directly correlated with more stringent criteria. 
The Mega Tier rebate (proposed at $0.0033 per share, otherwise set at 
$0.0032 per share) has the most stringent criteria, and is $0.0002/
$0.0001 greater than the Ultra Tier rebate ($0.0031 per share) and 
$0.0003/$0.0002 greater than the Super Tier rebate ($0.0030 per share). 
For example, based on average TCV for November 2010 (8.0 billion), in 
order for a Member to qualify for the proposed Mega Tier rebate of 
$0.0033, the Member would have to add or route at least 5,000,000 
shares of average daily volume prior to 9:30 a.m. or after 4 p.m. 
(includes all flags except 6) AND add a minimum of 25,000,000 shares of 
average daily volume on EDGX in total, including during both market 
hours and pre and post-trading hours. Another way a Member can qualify 
for the Mega Tier (with a rebate of $0.0032 per share) would be to post 
60 million shares on EDGX. In order to qualify for the Ultra Tier, 
which has less stringent criteria than the Mega Tier, the Member would 
have to post 40 million shares on EDGX. Finally, the Super Tier has the 
least stringent criteria. In order for a Member to qualify for this 
rebate, the Member would have to post 10 million shares on EDGX. In 
addition, these rebates also result, in part, from lower administrative 
costs associated with higher volume.
    EDGX Exchange proposes to implement these amendments to the 
Exchange fee schedule on January 1, 2011.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\4\ in general, and 
furthers the objectives of Section 6(b)(4),\5\ 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 proposed rates are 
equitable in that they apply uniformly to all Members. In addition, the 
rebates provided result, in part, from lower administrative costs 
associated with higher volume. 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 Members.
---------------------------------------------------------------------------

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

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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

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 rule-comments@sec.gov. Please include 
File Number SR-EDGX-2010-25 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-2010-25. 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

[[Page 2170]]

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-EDGX-2010-25 and should be submitted on 
or before February 2, 2011.
---------------------------------------------------------------------------

    \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 EDGX, and at the 
Commission's Public Reference Room.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-430 Filed 1-11-11; 8:45 am]
BILLING CODE 8011-01-P
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