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, 70204-70206 [2011-29105]
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70204
Federal Register / Vol. 76, No. 218 / Thursday, November 10, 2011 / Notices
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 11 and Rule 19b–4(f)(2) 12
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:
jlentini on DSK4TPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–EDGA–2011–36 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–2011–36. This file
number should be included on the
subject line if email 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, 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–
2011–36 and should be submitted on or
before December 1, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–29107 Filed 11–9–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65683; File No. SR–EDGX–
2011–34]
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
November 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 October
31, 2011, 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 15
U.S.C. 78s(b)(3)(A).
12 17 CFR 19b–4(f)(2).
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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
Purpose
The Exchange proposes to decrease
the charge assessed for a Directed
Intermarket Sweep Order 4 (‘‘Directed
ISO’’) from $0.0033 per share to $0.0032
per share, which is reflected in Flag S
of the Exchange’s fee schedule.
The Exchange proposes to correct an
administrative error by appending
footnote 1 to the H Flag on the
Exchange’s fee schedule. The H flag was
added on October 1, 2011,5 and is
another flag that adds liquidity on
EDGX. Currently, the flags that add
liquidity on EDGX and count towards
the tiers identified in footnote 1 are B,
V, Y, 3, 4, and MM.
The Exchange proposes to implement
these amendments to its fee schedule on
November 1, 2011.
Basis
The Exchange believes that the
proposed rule changes are consistent
with the objectives of Section 6 of the
Exchange Act,6 in general, and furthers
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 See Exchange Rule 11.5(d)(2).
5 See Securities Exchange Act Release No. 65541
(October 12, 2011), 76 FR 64409 (October 18, 2011)
(SR–EDGX–2011–31).
6 15 U.S.C. 78f.
E:\FR\FM\10NON1.SGM
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Federal Register / Vol. 76, No. 218 / Thursday, November 10, 2011 / Notices
the objectives of Section 6(b)(4),7 in
particular, as it is designed to provide
for the equitable allocation of reasonable
dues, fees and other charges among its
members and other persons using its
facilities.
The Exchange believes that the
proposed decrease in the rate for
Directed ISOs from $0.0033 per share to
$0.0032 per share represents an
equitable allocation of reasonable dues,
fees, and other charges. The Exchange
believes that this decreased fee to
Members would provide an incentive
for Members to provide liquidity that
supports the quality of price discovery
and promotes market transparency.
Such increased volume also increases
potential revenue to the Exchange, and
would allow the Exchange to spread its
administrative and infrastructure costs
over a greater number of shares, leading
to lower per share costs. These lower
per share costs would allow the
Exchange to pass on the savings to
Members in the form of a lower fee. The
fee is reasonable when compared to
other market centers’ fees for Directed
ISOs, including, BATS that charges a fee
of $0.0033 per share and NASDAQ that
charges a fee of $0.0035 per share for
routing Directed ISOs.8 The Exchange
believes that the proposed rate is nondiscriminatory in that it applies
uniformly to all Members.
The Exchange proposes to correct an
administrative error by appending
footnote 1 to the H Flag on the
Exchange’s fee schedule. The H flag was
added on October 1, 2011, and is
another flag that adds liquidity on
EDGX and counts towards the tiers
identified in footnote 1. The Exchange
believes that providing discounts for
adding liquidity to the Exchange would
incent liquidity. In addition, such
increased volume increases potential
revenue to the Exchange, and would
allow the Exchange to spread its
administrative and infrastructure costs
over a greater number of shares, leading
to lower per share costs. These lower
per share costs would allow the
Exchange to pass on the savings to
Members in the form of a higher rebate.
The increased liquidity also benefits all
investors by deepening EDGX’s liquidity
pool, offering additional flexibility for
all investors to enjoy cost savings,
supporting the quality of price
discovery, promoting market
transparency and improving investor
protection. Volume-based rebates such
7 15
U.S.C. 78f(b)(4).
https://www.batstrading.com/resources/
regulation/rule_book/BZX_FeeSchedule.pdf. See
also https://www.nasdaqtrader.com/
Trader.aspx?id=PriceListTrading2.
8 See
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Jkt 226001
as the ones proposed herein have been
widely adopted in the cash equities
markets, and are equitable because they
are open to all members on an equal
basis and provide discounts that are
reasonably related to the value to an
exchange’s market quality associated
with higher levels of market activity,
such as higher levels of liquidity
provision and introduction of higher
volumes of orders into the price and
volume discovery processes. In
addition, by correcting this
administrative error, the Exchange adds
additional transparency to its fee
schedule for Members.
The Exchange also 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 and nondiscriminatory 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 19b–4(f)(2).
10 17
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70205
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 email to rulecomments@sec.gov. Please include File
Number SR–EDGX–2011–34 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–2011–34. This file
number should be included on the
subject line if email 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, 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–
2011–34 and should be submitted on or
before December 1, 2011.
E:\FR\FM\10NON1.SGM
10NON1
70206
Federal Register / Vol. 76, No. 218 / Thursday, November 10, 2011 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–29105 Filed 11–9–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65699; File No. SR–ICC–
2011–03]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change to Adopt ICC’s
Enhanced Margin Methodology (the
‘‘Decomp Model’’)
November 7, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that on November
4, 2011, ICE Clear Credit LLC (‘‘ICC’’)
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 primarily by ICC.
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 ICC Decomp Model includes the
following enhancements to the ICC
margin methodology for Credit Default
Swap (‘‘CDS’’) Indices: replacing
standard deviation with Mean Absolute
deviation (‘‘MAD’’) as a measure of
spread volatility, use of an auto
regressive process to obtain multihorizon risk measures, expansion of
spread response scenarios, introduction
of liquidity requirements, and base
concentration charges.
jlentini on DSK4TPTVN1PROD 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, ICC
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. ICC has prepared
summaries, set forth in sections (A), (B),
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The enhancements effected by this
proposed rule change have been
reviewed and/or recommended by the
ICC Risk Working Group, ICC Risk
Committee, ICC Board of Managers, an
independent third-party risk expert
(Finance Concepts), the Federal Reserve
Bank of New York and the New York
State Banking Department.
Implementation of these enhancements
to the ICC risk methodology will result
in a better measurement of the risk
associated with clearing CDS Indices.
A fundamental aspect of the Decomp
Model is the recognition that the CDS
Indices cleared by ICC are essentially a
composition of specific Single Name
CDS instruments. As a result of the
decomposition of the CDS Indices, ICC
will be able to (1) incorporate jump-todefault risk as a component of the risk
margin associated with CDS Indices and
(2) provide appropriate portfolio margin
treatment between CDS Indices and
offsetting CDS Single Name positions.
Incorporating jump-to-default risk as a
component of the Decomp Model will
result in a better measurement of the
risk associated with clearing CDS
Indices.
Recognizing the highly correlated
relationship between long-short
positions in CDS Indices and the
underlying CDS Single Name
constituents of the CDS Indices will
provide for fundamental and
appropriate portfolio margin treatment.
To date, ICC has not offered such
fundamental and appropriate portfolio
treatment strictly for operational
reasons. However, on or about
December 12, 2011, ICC will be
operationally ready to offer such
portfolio margining treatment with
respect to its clearing participants’
proprietary positions.
As noted above, the proposed change
in the ICC margin methodology will
provide appropriate portfolio margining
treatment only with respect to ICC
clearing participants’ proprietary
positions. The portfolio margining
treatment will only be available to ICC
clearing participants’ proprietary
positions because ICC does not
currently clear CDS Single Names for
customer-related transactions.
Accordingly, currently, there are no
customer-related positions that would
11 17
1 15
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16:38 Nov 09, 2011
3 The Commission has modified the text of the
summaries prepared by ICC.
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qualify for portfolio margining
treatment. ICC does not believe that the
fact that the portfolio margining element
of the proposed Decomp Model will
apply only to a Clearing Participant’s
proprietary account raises an issue of
unfair discrimination. Importantly, the
portfolio margining aspect of the
Decomp Model does not unfairly
discriminate with respect to similarly
situated participants because it is
available to any participant for whom
ICC is currently able to provide portfolio
margin treatment. Again, ICC does not
currently offer clearing in CDS Single
Names for customer-related
transactions. In the event that ICC
makes CDS Single Name clearing
available for customer-related
transactions and provided that the SEC
and CFTC grant the requisite approval
as discussed below, ICC will offer
portfolio margining with respect to
customer-related transactions. The
proposed rule amendments are not
designed to permit unfair
discrimination among participants in
the use of ICC’s clearing services. ICC is
not discriminating among proprietary
participants or among customers.
Proprietary accounts are not subject to
the SEC’s customer protection rules and
thus are not subject to the same
restrictions that the SEC has imposed on
customer accounts. Specifically, ICC
clears proprietary CDS Index and CDS
Single Name positions in the same
commingled house account origin.
Whereas, as customer-related positions
in CDS Indices and CDS Single Names
must be maintained, as a matter of law,
in separate accounts. Thus, ICC is
unable to commingle and portfolio
margin customer-related CDS Index and
CDS Single Name positions without the
SEC’s and CFTC’s approval of ICC’s
pending petitions.
On or about November 7, 2011, ICC
formally filed with the SEC a petition to
provide portfolio margining treatment
for customer-related positions (the
‘‘Customer-related Portfolio Margining
Request’’) in anticipation of ICC offering
clearing of CDS Single Names for
customer-related transactions in the
future. The Customer-related Portfolio
Margining Request is posted on the ICC
Web site and will be posted on the
SEC’s Web site.4 In short, the Customerrelated Portfolio Margining Request, if
granted by the SEC, would provide all
customers with the same portfolio
margining treatment that is being
4 Available at: https://www.theice.com/
publicdocs/globalmarketfacts/docs/
legislativecomments/ICC_Commingling_
PortfolioMargining_Petitions.pdf. The petition also
will be available on the Commission’s public Web
site at: https://www.sec.gov/rules/petitions.shtml.
E:\FR\FM\10NON1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 218 (Thursday, November 10, 2011)]
[Notices]
[Pages 70204-70206]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29105]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65683; File No. SR-EDGX-2011-34]
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
November 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 October 31, 2011, 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). 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
Purpose
The Exchange proposes to decrease the charge assessed for a
Directed Intermarket Sweep Order \4\ (``Directed ISO'') from $0.0033
per share to $0.0032 per share, which is reflected in Flag S of the
Exchange's fee schedule.
---------------------------------------------------------------------------
\4\ See Exchange Rule 11.5(d)(2).
---------------------------------------------------------------------------
The Exchange proposes to correct an administrative error by
appending footnote 1 to the H Flag on the Exchange's fee schedule. The
H flag was added on October 1, 2011,\5\ and is another flag that adds
liquidity on EDGX. Currently, the flags that add liquidity on EDGX and
count towards the tiers identified in footnote 1 are B, V, Y, 3, 4, and
MM.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 65541 (October 12,
2011), 76 FR 64409 (October 18, 2011) (SR-EDGX-2011-31).
---------------------------------------------------------------------------
The Exchange proposes to implement these amendments to its fee
schedule on November 1, 2011.
Basis
The Exchange believes that the proposed rule changes are consistent
with the objectives of Section 6 of the Exchange Act,\6\ in general,
and furthers
[[Page 70205]]
the objectives of Section 6(b)(4),\7\ in particular, as it is designed
to provide for the equitable allocation of reasonable dues, fees and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed decrease in the rate for
Directed ISOs from $0.0033 per share to $0.0032 per share represents an
equitable allocation of reasonable dues, fees, and other charges. The
Exchange believes that this decreased fee to Members would provide an
incentive for Members to provide liquidity that supports the quality of
price discovery and promotes market transparency. Such increased volume
also increases potential revenue to the Exchange, and would allow the
Exchange to spread its administrative and infrastructure costs over a
greater number of shares, leading to lower per share costs. These lower
per share costs would allow the Exchange to pass on the savings to
Members in the form of a lower fee. The fee is reasonable when compared
to other market centers' fees for Directed ISOs, including, BATS that
charges a fee of $0.0033 per share and NASDAQ that charges a fee of
$0.0035 per share for routing Directed ISOs.\8\ The Exchange believes
that the proposed rate is non-discriminatory in that it applies
uniformly to all Members.
---------------------------------------------------------------------------
\8\ See https://www.batstrading.com/resources/regulation/rule_book/BZX_FeeSchedule.pdf. See also https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
---------------------------------------------------------------------------
The Exchange proposes to correct an administrative error by
appending footnote 1 to the H Flag on the Exchange's fee schedule. The
H flag was added on October 1, 2011, and is another flag that adds
liquidity on EDGX and counts towards the tiers identified in footnote
1. The Exchange believes that providing discounts for adding liquidity
to the Exchange would incent liquidity. In addition, such increased
volume increases potential revenue to the Exchange, and would allow the
Exchange to spread its administrative and infrastructure costs over a
greater number of shares, leading to lower per share costs. These lower
per share costs would allow the Exchange to pass on the savings to
Members in the form of a higher rebate. The increased liquidity also
benefits all investors by deepening EDGX's liquidity pool, offering
additional flexibility for all investors to enjoy cost savings,
supporting the quality of price discovery, promoting market
transparency and improving investor protection. Volume-based rebates
such as the ones proposed herein have been widely adopted in the cash
equities markets, and are equitable because they are open to all
members on an equal basis and provide discounts that are reasonably
related to the value to an exchange's market quality associated with
higher levels of market activity, such as higher levels of liquidity
provision and introduction of higher volumes of orders into the price
and volume discovery processes. In addition, by correcting this
administrative error, the Exchange adds additional transparency to its
fee schedule for Members.
The Exchange also 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 and non-discriminatory 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).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-EDGX-2011-34 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-2011-34. This file
number should be included on the subject line if email 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, 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-2011-34 and should be
submitted on or before December 1, 2011.
[[Page 70206]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-29105 Filed 11-9-11; 8:45 am]
BILLING CODE 8011-01-P
