Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Available Without Charge the EDGA Book Feed and To Add a Description of the EDGA Book Feed to New Rule 13.8, 39959-39960 [2011-17034]
Download as PDF
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64792; File No. SR–EDGA–
2011–19]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Make Available
Without Charge the EDGA Book Feed
and To Add a Description of the EDGA
Book Feed to New Rule 13.8
July 1, 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 June 29,
2011, EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which items have been prepared
by the Exchange. The 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 the Substance
of the Proposed Rule Change
The Exchange proposes to make
available without charge the EDGA book
feed (‘‘EDGA Book Feed’’), an EDGA
data feed that displays depth of book
information. The Exchange also
proposes to add a description of the
EDGA Book Feed to new Rule 13.8. The
text of the proposed rule change is
attached as Exhibit 5 and is available on
the Exchange’s Web site at https://
www.directedge.com, at the Exchange’s
principal office, and at the Public
Reference Room of the Commission.
sroberts on DSK5SPTVN1PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
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
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to describe the availability of
the EDGA Book Feed, a data feed that
contains all orders for securities trading
on the Exchange. The EDGA Book Feed
is available to all EDGA members
equally at no charge, and offers all firms
real-time data concerning EDGA’s depth
of book. EDGA makes the EDGA Book
Feed available to all market participants
via subscription through an established
connection to EDGA through extranets,
direct connection, and service bureaus.
The EDGA Book Feed is available in
multicast and unicast formats.
The EDGA Book Feed contains the
following data elements: all displayed
orders for listed securities trading on
EDGA, order executions, order
cancellations, order modifications, order
identification numbers, and
administrative messages.
By making the EDGA Book Feed data
available, EDGA enhances market
transparency and fosters competition
among orders and markets. Member
firms may use the EDGA Book Feed to
more accurately price their orders based
on EDGA’s view of the depth of book
information, such as all displayed limit
orders at any point in time.
Additionally, Members can track their
own orders from order entry to
execution.
The Exchange proposes to add the
definition of EDGA Book Feed to new
Rule 13.8(a). In addition, the Exchange
proposes to add to Rule 13.8(b) the
process by which a Member can
obfuscate their unique order
identification number on the EDGA
Book Feed for subsequent
replenishments of reserve orders per
Market Participant Identifier (‘‘MPID’’)
for all logical ports or specific logical
ports, as designated by the Member. In
order to do so, and have a randomly
generated order identification number
applied to the replenishment of
Member’s reserve orders, the Member
would contact Member Services via
email or phone. Such feature would be
enabled the next trading day by the
Exchange for the Member-selected MPID
for all logical ports or specific logical
ports until further instructions are
received by Member Services from the
Member. The Exchange believes that the
random order identification number
would help deter other market
participants from being able to trace the
life of a specific order, including short-
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
39959
term price movements and trading
patterns.
At this time, EDGA does not have
plans to charge an additional fee
associated with the receipt of the EDGA
Book Feed. Should EDGA determine to
charge fees associated with the EDGA
Book Feed, EDGA will submit a
proposed rule change to the
Commission in order to implement
those fees.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,3
in general, and furthers the objectives of
Section 6(b)(5),4 in particular, as it 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. EDGA believes that this
proposal is in keeping with those
principles by promoting increased
transparency through the dissemination
of the EDGA Book Feed and by
codifying its availability.
In addition, EDGA is making a
voluntary decision to make this data
available. EDGA is not required by the
Act in the first instance to make the data
available, unlike the best bid and offer
which must be made available under the
Act. EDGA chooses to make the data
available as proposed in order to
improve market quality, to attract order
flow, and to increase transparency.
Once this filing becomes effective,
EDGA will be required to continue
making the data available until such
time as EDGA changes its rule.
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
3 15
4 15
E:\FR\FM\07JYN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(5).
07JYN1
39960
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
IV. Solicitation of Comments
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
sroberts on DSK5SPTVN1PROD with NOTICES
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 5 and Rule 19b–
4(f)(6)(iii) thereunder.6
A proposed rule change filed under
Rule 19b–4(f)(6) 7 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),8 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked that the
Commission waive the 30-day preoperative waiting period contained in
Rule 19b-4(f)(6)(iii).9 The Exchange has
requested such waiver because it
believes that such waiver is consistent
with the protection of investors and the
public interest because it would permit
EDGA to immediately provide the
information regarding the EDGA Book
Feed access requirements to market
participants. Specifically, the Exchange
believes that, because the EDGA Book
Feed is already available, strictly
voluntary, and free to receive, waiver is
consistent with the protection of
investors and the public interest. For
these reasons, the Commission sees no
reason to delay implementation of the
proposed rule change. The Commission
believes it is consistent with the
protection of investors and the public
interest to waive the 30-day operative
delay, and hereby grants such waiver.10
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.
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
7 17 CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6)(iii).
9 Id.
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
6 17
VerDate Mar<15>2010
16:26 Jul 06, 2011
Jkt 223001
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:
• 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–2011–19 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–EDGA–2011–19. 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 website 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–EDGA–2011–19, and
should be submitted on or before July
28, 2011.
Frm 00150
Fmt 4703
Sfmt 4703
[FR Doc. 2011–17034 Filed 7–6–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
PO 00000
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Cathy H. Ahn,
Deputy Secretary.
[Release No. 34–64780; File No. SR–
NYSEArca–2011–40]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Certain Rules
and Adding New Rules so That They
Remain Substantially Similar to
Corresponding Financial Industry
Regulatory Authority Rules in
Accordance With a Rule 17d–2
Agreement
June 30, 2011.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on June 20,
2011, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) 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
certain rules and add new rules so that
they remain substantially similar to
corresponding Financial Industry
Regulatory Authority (‘‘FINRA’’) rules
in accordance with a Rule 17d–2
agreement between the two selfregulatory organizations. The text of the
proposed rule change is available at the
Exchange, the Commission’s Public
Reference Room, and https://
www.nyse.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,
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
E:\FR\FM\07JYN1.SGM
07JYN1
Agencies
[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39959-39960]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17034]
[[Page 39959]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64792; File No. SR-EDGA-2011-19]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Make
Available Without Charge the EDGA Book Feed and To Add a Description of
the EDGA Book Feed to New Rule 13.8
July 1, 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 June 29, 2011, EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which items have been prepared by the Exchange. The
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 the
Substance of the Proposed Rule Change
The Exchange proposes to make available without charge the EDGA
book feed (``EDGA Book Feed''), an EDGA data feed that displays depth
of book information. The Exchange also proposes to add a description of
the EDGA Book Feed to new Rule 13.8. The text of the proposed rule
change is attached as Exhibit 5 and is available on the Exchange's Web
site at https://www.directedge.com, at the Exchange's principal office,
and at the Public Reference Room of the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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 purpose of the proposed rule change is to describe the
availability of the EDGA Book Feed, a data feed that contains all
orders for securities trading on the Exchange. The EDGA Book Feed is
available to all EDGA members equally at no charge, and offers all
firms real-time data concerning EDGA's depth of book. EDGA makes the
EDGA Book Feed available to all market participants via subscription
through an established connection to EDGA through extranets, direct
connection, and service bureaus. The EDGA Book Feed is available in
multicast and unicast formats.
The EDGA Book Feed contains the following data elements: all
displayed orders for listed securities trading on EDGA, order
executions, order cancellations, order modifications, order
identification numbers, and administrative messages.
By making the EDGA Book Feed data available, EDGA enhances market
transparency and fosters competition among orders and markets. Member
firms may use the EDGA Book Feed to more accurately price their orders
based on EDGA's view of the depth of book information, such as all
displayed limit orders at any point in time. Additionally, Members can
track their own orders from order entry to execution.
The Exchange proposes to add the definition of EDGA Book Feed to
new Rule 13.8(a). In addition, the Exchange proposes to add to Rule
13.8(b) the process by which a Member can obfuscate their unique order
identification number on the EDGA Book Feed for subsequent
replenishments of reserve orders per Market Participant Identifier
(``MPID'') for all logical ports or specific logical ports, as
designated by the Member. In order to do so, and have a randomly
generated order identification number applied to the replenishment of
Member's reserve orders, the Member would contact Member Services via
email or phone. Such feature would be enabled the next trading day by
the Exchange for the Member-selected MPID for all logical ports or
specific logical ports until further instructions are received by
Member Services from the Member. The Exchange believes that the random
order identification number would help deter other market participants
from being able to trace the life of a specific order, including short-
term price movements and trading patterns.
At this time, EDGA does not have plans to charge an additional fee
associated with the receipt of the EDGA Book Feed. Should EDGA
determine to charge fees associated with the EDGA Book Feed, EDGA will
submit a proposed rule change to the Commission in order to implement
those fees.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\3\ in general, and
furthers the objectives of Section 6(b)(5),\4\ in particular, as it 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. EDGA believes
that this proposal is in keeping with those principles by promoting
increased transparency through the dissemination of the EDGA Book Feed
and by codifying its availability.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In addition, EDGA is making a voluntary decision to make this data
available. EDGA is not required by the Act in the first instance to
make the data available, unlike the best bid and offer which must be
made available under the Act. EDGA chooses to make the data available
as proposed in order to improve market quality, to attract order flow,
and to increase transparency. Once this filing becomes effective, EDGA
will be required to continue making the data available until such time
as EDGA changes its rule.
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
[[Page 39960]]
unsolicited written comments from members or other interested parties.
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 \5\ and Rule 19b-
4(f)(6)(iii) thereunder.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \7\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\8\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
that the Commission waive the 30-day pre-operative waiting period
contained in Rule 19b-4(f)(6)(iii).\9\ The Exchange has requested such
waiver because it believes that such waiver is consistent with the
protection of investors and the public interest because it would permit
EDGA to immediately provide the information regarding the EDGA Book
Feed access requirements to market participants. Specifically, the
Exchange believes that, because the EDGA Book Feed is already
available, strictly voluntary, and free to receive, waiver is
consistent with the protection of investors and the public interest.
For these reasons, the Commission sees no reason to delay
implementation of the proposed rule change. The Commission believes it
is consistent with the protection of investors and the public interest
to waive the 30-day operative delay, and hereby grants such waiver.\10\
---------------------------------------------------------------------------
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ Id.
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the 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-EDGA-2011-19 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-EDGA-2011-19. 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 website
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-EDGA-2011-19, and should be submitted on or before July
28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17034 Filed 7-6-11; 8:45 am]
BILLING CODE 8011-01-P