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, 20750-20752 [2011-8910]
Download as PDF
20750
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
changes, NASD Rule 2370 regarding
borrowing from or lending to customers
into the FINRA consolidated rulebook
as FINRA Rule 3240, and added record
retention requirements. FINRA Rule
3240, like former NASD Rules 2370,
focuses in general on the
appropriateness of particular lending
arrangements between FINRA member
broker-dealers and their registered
persons and customers (to the extent
permitted by the member) and the
potential for conflicts of interests
between both the registered person and
his or her customer and the registered
person and the member with which he
or she is associated.
Additionally, in SR–FINRA–2009–
005,7 FINRA renumbered crossreferences in its rules from NYSE Rule
80A to NYSE Rule 132B on the basis of
a New York Stock Exchange (‘‘NYSE’’ or
NYSE Euronext’’) rule proposal.8 In that
proposal, NYSE rescinded its Rule 80A
regarding index arbitration [sic]
restrictions and repositioned the
definitions of ‘‘index arbitrage’’ and
‘‘program trading’’ into NYSE Rule 132B.
Because BX Rule 6951 refers in its
definitions of index arbitrage and
program trading to Rule 80A, BX is, by
this filing, updating the references in its
Rule 6951 from NYSE Rule 80A to 132B.
2. Statutory Basis
mstockstill on DSKH9S0YB1PROD with NOTICES
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,9
in general, and with Sections 6(b)(5) of
the Act,10 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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. The
proposed changes will conform BX
Rules 2360, 2361, 2370, and 6951 to
recent changes made to several
corresponding FINRA rules, to promote
among other things, adoption of NASD Rule 2370
as FINRA Rule 3240).
7 See Securities Exchange Release No. 59432
(February 23, 2009), 74 FR 9121 (March 2,
2009)(SR–FINRA–2009–005)(notice of filing and
immediate effectiveness).
8 See Securities Exchange Release No. 56726
(October 31, 2007), 72 FR 62719 (November 6,
2007)(SR–NYSE–2007–96)(notice of filing and
immediate effectiveness).
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
application of consistent regulatory
standards.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
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 Rule 19b–
4 (f)(6) thereunder.12
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 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–BX–2011–021 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–BX–2011–021. 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, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal offices of the Exchange.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–BX–2011–021, and should
be submitted on or before May 4, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8911 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64253; File No. SR–EDGX–
2011–09]
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
April 7, 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 April 6,
2011, the EDGX Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘EDGX’’) filed with
13 17
11 15
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4 (f)(6).
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
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 selfregulatory 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). 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
The Exchange proposes to reduce the
rate on Flag T from $0.0020 per share
to $0.0012 per share for routing using
the ROUD/ROUE routing strategies, as
defined in Rules 11.9(b)(3)(b) and
11.9(b)(3)(c)(i).
EDGX Exchange proposes to
implement this amendment to the
Exchange fee schedule on April 6, 2011.
mstockstill on DSKH9S0YB1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the
Exchange Act,4 in general, and furthers
the objectives of Section 6(b)(4),5 in
particular, as it is designed to provide
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.
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
for the equitable allocation of reasonable
dues, fees and other charges among its
members and other persons using its
facilities.
The Exchange believes that the
proposed reduced rate for Flag T
(routing using ROUD/ROUE routing
strategies) of $0.0012 per share is an
equitable allocation of reasonable dues,
fees, and other charges. Lower fees are
directly correlated with a higher number
of intermediate low cost destinations as
the more intermediate low cost
destinations that there are, there is a
greater potential for an execution at a
lower cost destination before reaching a
higher cost destination. For example,
the ROUQ routing strategy, as defined in
Rule 11.9(b)(3)(c)(iv),6 routes to the
lowest number of low cost destinations
compared to the ROUD/ROUE 7 and
ROUZ 8 routing strategies. As a result,
the Exchange charges a higher fee for
such strategy of $0.0020 per share (flag
Q). The ROUD/ROUE routing strategies
route to a medium number of low cost
destinations and the ROUZ routing
strategy routes to the highest number of
low costs destinations amongst these
routing strategies. As a result, the
Exchange will assess a proposed fee of
$0.0012 per share for the ROUD/ROUE
routing strategies and assesses the
lowest fee for the ROUZ routing strategy
of $0.0010 per share. The more low cost
destinations that an order routes to
allows the Exchange to pass on the
savings it receives from such
destinations to its members in lower
fees. Therefore, it is equitable that
ROUQ has the highest fee of $0.0020 per
share, while ROUD/ROUE has an
intermediate fee of $0.0012 per share,
and ROUZ has the lowest fee of the
three strategies of $0.0010 per share.
The Exchange also notes that a
difference between ROUQ and ROUZ
routing strategies is that the additional
routing destinations in the ROUZ
routing strategy are intermediate
between the routing destinations in
ROUQ. This also accounts for the
differences in fees. Therefore, for each
additional intermediate low cost
destination that an order routes to, the
prices of the strategies mentioned above
(ROUQ, ROUD/ROUE, ROUZ) decrease
accordingly.
The Exchange believes that the rate is
reasonable when compared to other
market centers using similar routing
strategies. The comparable routing
strategy to the ROUD/ROUE routing
6 See
SR–EDGX–2011–08 (April 1, 2011).
Exchange notes that ROUD/ROUE routing
strategies route to the identical number of low cost
destinations.
8 See SR–EDGX–2011–08 (April 1, 2011). See
Rule 11.9(b)(3)(c)(v).
7 The
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
20751
strategies is Parallel D or Parallel 2D
with the DRT (Dark routing technique)
option on BATS BZX Exchange
(‘‘BATS’’). BATS charges $0.0020 per
share for its DRT option. The Exchange
believes that the proposed rebate is nondiscriminatory in that it applies
uniformly to all Members.
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.
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.
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 9 and Rule 19b–4(f)(2) 10
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.
9 15
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
10 17
E:\FR\FM\13APN1.SGM
13APN1
20752
Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices
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–2011–09 on the
subject line.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–8910 Filed 4–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64269; File No. SR–ISE–
2011–21]
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
mstockstill on DSKH9S0YB1PROD with NOTICES
Paper Comments
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to API Fees
All submissions should refer to File
Number SR–EDGX–2011–09. 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,11 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–
2011–09 and should be submitted on or
before May 4, 2011.
11 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.
12 17 CFR 200.30–3(a)(12).
VerDate Mar<15>2010
18:37 Apr 12, 2011
Jkt 223001
April 8, 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 April 6,
2011, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees regarding the
Exchange’s API or login fees. 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.
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00130
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The ISE is proposing to amend its
Schedule of Fees regarding the
Exchange’s API or login fees. ISE
currently charges its members a fee for
each login that a Member utilizes for
quoting or order entry, with a lesser
charge for logins used for the limited
purpose of ‘‘listening’’ to broadcast
messages.3 The Exchange currently has
the following categories of authorized
logins: (1) Quoting, order entry and
listening (allowing the user to enter
quotes, orders, and perform all other
miscellaneous functions, such as setting
parameters and pulling quotes); (2)
order entry and listening (allowing the
user to enter orders and perform all
other miscellaneous functions, such as
setting parameters and pulling quotes
(but not quoting)); and (3) listening
(allowing the user only to query the
system and to respond to broadcast
messages).4 The Exchange notes that
quoting, order entry and listening are
functionalities available only to
Exchange market makers, i.e., Primary
Market Makers and Competitive Market
Makers, while order entry and listening
are functionalities available only to nonmarket makers, i.e., Electronic Access
Members.
ISE market makers currently receive
an allocation of 1,300,000 quotes per
day per user.5 If a market maker submits
more quotes than those allocated, i.e.,
1,300,000 quotes per day per user as
measured on average in a single month,
the market maker is charged for
additional users depending upon the
number of quotes submitted. Each
month, the total number of quotes
submitted by a market maker across all
bins (i.e., group of options to which the
market maker is appointed), is divided
by the number of trading days, resulting
in the average quotes per day. This
number is then divided by 1,300,000
and rounded up to the nearest whole
number, resulting in an implied number
of users based on quotes. Market makers
are invoiced on a monthly basis for the
greater of (a) the greatest number of
users that logged into the system, or (b)
the number of implied users based on
quotes.
3 See Exchange Act Release No. 53522 (March 20,
2006), 71 FR 14975 (March 24, 2006) (SR–ISE–
2006–09).
4 Id.
5 See Exchange Act Release No. 56721 (October
30, 2007), 72 FR 62502 (November 5, 2007) (SR–
ISE–2007–91).
E:\FR\FM\13APN1.SGM
13APN1
Agencies
[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Notices]
[Pages 20750-20752]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8910]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64253; File No. SR-EDGX-2011-09]
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
April 7, 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 April 6, 2011, the EDGX Exchange, Inc. (the ``Exchange'' or the
``EDGX'') filed with
[[Page 20751]]
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). 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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
The Exchange proposes to reduce the rate on Flag T from $0.0020 per
share to $0.0012 per share for routing using the ROUD/ROUE routing
strategies, as defined in Rules 11.9(b)(3)(b) and 11.9(b)(3)(c)(i).
EDGX Exchange proposes to implement this amendment to the Exchange
fee schedule on April 6, 2011.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Exchange 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed reduced rate for Flag T
(routing using ROUD/ROUE routing strategies) of $0.0012 per share is an
equitable allocation of reasonable dues, fees, and other charges. Lower
fees are directly correlated with a higher number of intermediate low
cost destinations as the more intermediate low cost destinations that
there are, there is a greater potential for an execution at a lower
cost destination before reaching a higher cost destination. For
example, the ROUQ routing strategy, as defined in Rule
11.9(b)(3)(c)(iv),\6\ routes to the lowest number of low cost
destinations compared to the ROUD/ROUE \7\ and ROUZ \8\ routing
strategies. As a result, the Exchange charges a higher fee for such
strategy of $0.0020 per share (flag Q). The ROUD/ROUE routing
strategies route to a medium number of low cost destinations and the
ROUZ routing strategy routes to the highest number of low costs
destinations amongst these routing strategies. As a result, the
Exchange will assess a proposed fee of $0.0012 per share for the ROUD/
ROUE routing strategies and assesses the lowest fee for the ROUZ
routing strategy of $0.0010 per share. The more low cost destinations
that an order routes to allows the Exchange to pass on the savings it
receives from such destinations to its members in lower fees.
Therefore, it is equitable that ROUQ has the highest fee of $0.0020 per
share, while ROUD/ROUE has an intermediate fee of $0.0012 per share,
and ROUZ has the lowest fee of the three strategies of $0.0010 per
share. The Exchange also notes that a difference between ROUQ and ROUZ
routing strategies is that the additional routing destinations in the
ROUZ routing strategy are intermediate between the routing destinations
in ROUQ. This also accounts for the differences in fees. Therefore, for
each additional intermediate low cost destination that an order routes
to, the prices of the strategies mentioned above (ROUQ, ROUD/ROUE,
ROUZ) decrease accordingly.
---------------------------------------------------------------------------
\6\ See SR-EDGX-2011-08 (April 1, 2011).
\7\ The Exchange notes that ROUD/ROUE routing strategies route
to the identical number of low cost destinations.
\8\ See SR-EDGX-2011-08 (April 1, 2011). See Rule
11.9(b)(3)(c)(v).
---------------------------------------------------------------------------
The Exchange believes that the rate is reasonable when compared to
other market centers using similar routing strategies. The comparable
routing strategy to the ROUD/ROUE routing strategies is Parallel D or
Parallel 2D with the DRT (Dark routing technique) option on BATS BZX
Exchange (``BATS''). BATS charges $0.0020 per share for its DRT option.
The Exchange believes that the proposed rebate is non-discriminatory in
that it applies uniformly to all Members.
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. 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.
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 \9\ and Rule 19b-4(f)(2) \10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
[[Page 20752]]
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-2011-09 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-2011-09. 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,\11\ 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-2011-09 and should be submitted on or before May 4, 2011.
---------------------------------------------------------------------------
\11\ 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.
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8910 Filed 4-12-11; 8:45 am]
BILLING CODE 8011-01-P