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, 26669-26671 [2013-10704]

Download as PDF Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices In addition, the proposed rule change does not impose any burden on intramarket competition as the fees are uniform for all Members and nonMembers. The Exchange notes that Members and non-Members also have the ability to obtain access to these services without the need for an independent physical port connection, such as through alternative means of financial extranets and service bureaus that act as a conduit for orders entered by Members and non-Members. 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)(A) of the Act 13 and Rule 19b–4(f)(2) 14 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 email to rulecomments@sec.gov. Please include File Number SR–EDGA–2013–11 on the subject line. tkelley on DSK3SPTVN1PROD with NOTICES 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–2013–11. 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 10:00 a.m. and 3:00 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– 2013–11 and should be submitted on or before May 28, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–10703 Filed 5–6–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69482; File No. SR–EDGX– 2013–14] 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 30, 2013. 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 23, CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 13 15 U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b–4(f)(2). VerDate Mar<15>2010 15:24 May 06, 2013 1 15 Jkt 229001 2013, EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘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. 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 and non-Members of the Exchange pursuant to EDGX Rule 15.1(a) and (c). All of the changes described herein are applicable to EDGX Members and nonMembers. The text of the proposed rule change is available on the Exchange’s Internet Web site at 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 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose In SR–EDGX–2010–06,4 the Exchange adopted an annual fee per physical port utilized by Members and non-Members to connect to the Exchange’s System 5 for order entry and the receipt of Exchange data, among other reasons. A physical port is a port used by a Member or non-Member to connect into the Exchange at the data centers where Exchange servers are located. Physical port connections can occur either through an external telecommunication circuit or a cross-connection. The Exchange noted at the time of filing that 3 As defined in Exchange Rule 1.5(n). Securities Exchange Act Release No. 62437 (July 1, 2010), 75 FR 39599 (July 9, 2010) (SR– EDGX–2010–06). 5 As defined in Exchange Rule 1.5(cc). 4 See 15 17 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 26669 E:\FR\FM\07MYN1.SGM 07MYN1 26670 Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices other market centers provided similar services.6 In SR–EDGX–2013–03,7 the Exchange amended its fee schedule, effective February 1, 2013, to eliminate the option for Members and nonMembers to pay for physical ports on an annual basis. The Exchange currently assesses the following physical port fees for Members and non-Members on a monthly basis: $500 per physical port that connects to the System via a 1 gigabyte Copper circuit; $750 per physical port that connects to the System via a 1 gigabyte Fiber circuit; and $1,000 per physical port that connects to the System via a 10 gigabyte Fiber circuit. The Exchange proposes to amend its fee schedule to account for increased infrastructure costs associated with providing physical ports. As such, the Exchange proposes to amend its fee schedule, effective May 1, 2013, to assess the following physical port fees for Members and non-Members: (i) Increase the monthly fee per physical port that connects to the System via a 1 gigabyte Fiber circuit from $750 to $1,000; (ii) increase the monthly fee per 10 gigabyte Fiber circuit from $1,000 to $2,000. The Exchange notes that the fee charged per 1 gigabyte Copper circuit will remain unchanged. tkelley on DSK3SPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,8 in general, and furthers the objectives of Section 6(b)(4),9 in particular, as it provides 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 proposal represents an equitable allocation of reasonable dues, fees, and other charges as its billing for port fees is reasonably constrained by competitive alternatives.10 If a particular exchange charges excessive 6 See Securities Exchange Act Release No. 62437 (July 1, 2010), 75 FR 39599 (July 9, 2010) (SR– EDGX–2010–06) (citing Securities Exchange Act Release No. 61545 (February 19, 2010), 75 FR 8769 (February 25, 2010) (SR–BATS–2009–032) and Securities Exchange Act Release No. 62392 (June 28, 2010), 75 FR 38857 (July 6, 2010) (SR– NASDAQ–2010–077)). 7 See Securities Exchange Act Release No. 68831 (February 5, 2013), 78 FR 9763 (February 11, 2013) (SR–EDGX–2013–03). 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). 10 See Securities Exchange Act Release No. 69226 (March 25, 2013), 78 FR 19350 (March 29, 2013) (SR–BATS–2013–018). See, e.g., Nasdaq Rule 7034(b); BATS BZX & BYX Exchange Fee Schedules,https://cdn.batstrading.com/resources/ regulation/rule_book/BATSExchanges_Fee_Schedules.pdf. VerDate Mar<15>2010 15:24 May 06, 2013 Jkt 229001 fees for connectivity, affected Members and non-Members will opt to terminate their connectivity arrangements with that exchange, and adopt a possible range of alternative strategies, including routing to the applicable exchange through another participant or market center or taking that exchange’s data indirectly. Accordingly, if the Exchange charges excessive fees, it would stand to lose not only connectivity revenues but also revenues associated with the execution of orders routed to it, and, to the extent applicable, market data revenues. The Exchange believes that this competitive dynamic imposes powerful restraints on the ability of any exchange to charge unreasonable fees for connectivity. Furthermore, the proposed rule change is also an equitable allocation of reasonable dues, fees, and other charges as the Exchange believes that the increased fees obtained will enable it to cover its increased infrastructure costs associated with establishing physical ports to connect to the Exchange’s systems at the Exchange’s primary and secondary data centers. The additional revenue from the increased fees will also enable the Exchange to continue to maintain and improve its market technology and services. The Exchange believes that the proposed fees for 1 gigabyte Fiber circuit of $1,000 per month and for 10 gigabyte Fiber circuit of $2,000 per month are reasonable in that they are in the same range as analogous fees charged by other exchanges, which are $1000 per month for 1 gigabyte connectivity and range from $2,500–$5,000 per month for 10 gigabyte circuits.11 Finally, the Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members and nonMembers. Members and non-Members will continue to choose whether they want more than one physical port and choose the method of connectivity based on their specific needs. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. As discussed above, the Exchange believes that fees for connectivity are constrained by the robust competition for order flow among exchanges and non-exchange markets. 11 See, e.g., Nasdaq Rule 7034(b); BATS BZX & BYX Exchange Fee Schedules, https:// cdn.batstrading.com/resources/regulation/ rule_book/BATS-Exchanges_Fee_Schedules.pdf. PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 Further, excessive fees for connectivity, including port fee access, would serve to impair an exchange’s ability to compete for order flow rather than burdening competition. The proposal to increase the fees for physical connectivity would bring the fees charged by the Exchange closer to similar fees charged for physical connectivity by other exchanges.12 In addition, the proposed rule change does not impose any burden on intramarket competition as the fees are uniform for all Members and nonMembers. The Exchange notes that Members and non-Members also have the ability to obtain access to these services without the need for an independent physical port connection, such as through alternative means of financial extranets and service bureaus that act as a conduit for orders entered by Members and non-Members. 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)(A) of the Act 13 and Rule 19b–4(f)(2) 14 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 email to rulecomments@sec.gov. Please include File 12 Id. 13 15 14 17 E:\FR\FM\07MYN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 07MYN1 Federal Register / Vol. 78, No. 88 / Tuesday, May 7, 2013 / Notices Number SR–EDGX–2013–14 on the subject line. SECURITIES AND EXCHANGE COMMISSION 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–2013–14. 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 10:00 a.m. and 3:00 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– 2013–14 and should be submitted on or before May 28, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–10704 Filed 5–6–13; 8:45 am] tkelley on DSK3SPTVN1PROD with NOTICES BILLING CODE 8011–01–P [Release No. 34–69496; File No. SR–CBOE– 2013–044] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to FingerprintBased Background Checks of Exchange Directors, Officers, Employees and Others May 2, 2013. 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 18, 2013, Chicago Board Options Exchange, Incorporated filed with the Securities and Exchange Commission (the ‘‘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 Substance of the Proposed Rule Change Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) proposes to adopt a rule codifying CBOE’s current practice of conducting fingerprint checks of directors, officers, employees, temporary personnel, independent contractors, consultants, vendors and service providers of the Exchange. Under the proposed rule, CBOE would conduct these fingerprint checks by submitting the fingerprints taken to the Attorney General of the United States or his or her designee for identification and processing. In conducting these fingerprint checks, CBOE would receive criminal history record information from the Attorney General of the United States or his or her designee for evaluation and use, in accordance with applicable law, in enhancing the security of the Exchange’s facilities, systems, data, and/or records (collectively, ‘‘facilities and records’’). The text of the proposed rule change is available on the Exchange’s Web site (https://www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 1 15 15 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 15:24 May 06, 2013 2 17 Jkt 229001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00061 Fmt 4703 Sfmt 4703 26671 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 Exchange 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 adopt a rule that would codify the Exchange’s current practice of conducting fingerprint-based criminal records checks of (i) directors, officers and employees of the Exchange, and (ii) temporary personnel, independent contractors, consultants, vendors and service providers (collectively, ‘‘contractors’’) who have or are anticipated to have access to facilities and records. A number of securities markets have filed with the Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’) rules to obtain fingerprints from certain enumerated parties.3 The rule proposed by CBOE in this proposed rule change is consistent with these rules. Access to the Federal Bureau of Investigation’s (‘‘FBI’’) database of fingerprint based criminal records is permitted only when authorized by law. Numerous federal and state laws authorize employers to conduct fingerprint-based background checks that make use of the FBI’s database. Notably, Section 17(f)(2) of the Securities Exchange Act of 1934, as amended (‘‘Act’’), and SEC Rule 17f–2 require partners, directors, officers and employees of members of national securities exchanges, brokers, dealers, transfer agents, and clearing agencies to be fingerprinted and authorize SROs to maintain facilities for processing and storing fingerprint cards and criminal 3 See Rule 1408 of the International Securities Exchange (‘‘ISE’’), Rule 28 of the New York Stock Exchange (‘‘NYSE’’), Rule 0140 of the Nasdaq Stock Market, Inc. (‘‘Nasdaq’’) and Securities Exchange Act Release No. 50157 (August 5, 2004), 69 FR 49924 (August 12, 2004) (policy adopted by the National Association of Securities Dealers, Inc. (‘‘NASD’’) (now FINRA) to conduct fingerprintbased background checks of NASD employees and independent contractors). E:\FR\FM\07MYN1.SGM 07MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 88 (Tuesday, May 7, 2013)]
[Notices]
[Pages 26669-26671]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10704]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69482; File No. SR-EDGX-2013-14]

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 30, 2013.
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 23, 2013, EDGX Exchange, Inc. (the ``Exchange'' or
``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\ and non-Members of the Exchange pursuant to EDGX Rule
15.1(a) and (c). All of the changes described herein are applicable to
EDGX Members and non-Members. The text of the proposed rule change is
available on the Exchange's Internet Web site at www.directedge.com, at
the Exchange's principal office, and at the Public Reference Room of
the Commission.
---------------------------------------------------------------------------

\3\ As defined in Exchange Rule 1.5(n).
---------------------------------------------------------------------------

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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
In SR-EDGX-2010-06,\4\ the Exchange adopted an annual fee per
physical port utilized by Members and non-Members to connect to the
Exchange's System \5\ for order entry and the receipt of Exchange data,
among other reasons. A physical port is a port used by a Member or non-
Member to connect into the Exchange at the data centers where Exchange
servers are located. Physical port connections can occur either through
an external telecommunication circuit or a cross-connection. The
Exchange noted at the time of filing that

[[Page 26670]]

other market centers provided similar services.\6\ In SR-EDGX-2013-
03,\7\ the Exchange amended its fee schedule, effective February 1,
2013, to eliminate the option for Members and non-Members to pay for
physical ports on an annual basis.
---------------------------------------------------------------------------

\4\ See Securities Exchange Act Release No. 62437 (July 1,
2010), 75 FR 39599 (July 9, 2010) (SR-EDGX-2010-06).
\5\ As defined in Exchange Rule 1.5(cc).
\6\ See Securities Exchange Act Release No. 62437 (July 1,
2010), 75 FR 39599 (July 9, 2010) (SR-EDGX-2010-06) (citing
Securities Exchange Act Release No. 61545 (February 19, 2010), 75 FR
8769 (February 25, 2010) (SR-BATS-2009-032) and Securities Exchange
Act Release No. 62392 (June 28, 2010), 75 FR 38857 (July 6, 2010)
(SR-NASDAQ-2010-077)).
\7\ See Securities Exchange Act Release No. 68831 (February 5,
2013), 78 FR 9763 (February 11, 2013) (SR-EDGX-2013-03).
---------------------------------------------------------------------------

The Exchange currently assesses the following physical port fees
for Members and non-Members on a monthly basis: $500 per physical port
that connects to the System via a 1 gigabyte Copper circuit; $750 per
physical port that connects to the System via a 1 gigabyte Fiber
circuit; and $1,000 per physical port that connects to the System via a
10 gigabyte Fiber circuit.
The Exchange proposes to amend its fee schedule to account for
increased infrastructure costs associated with providing physical
ports. As such, the Exchange proposes to amend its fee schedule,
effective May 1, 2013, to assess the following physical port fees for
Members and non-Members: (i) Increase the monthly fee per physical port
that connects to the System via a 1 gigabyte Fiber circuit from $750 to
$1,000; (ii) increase the monthly fee per 10 gigabyte Fiber circuit
from $1,000 to $2,000. The Exchange notes that the fee charged per 1
gigabyte Copper circuit will remain unchanged.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\8\ in general, and
furthers the objectives of Section 6(b)(4),\9\ in particular, as it
provides 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 proposal represents an equitable
allocation of reasonable dues, fees, and other charges as its billing
for port fees is reasonably constrained by competitive
alternatives.\10\ If a particular exchange charges excessive fees for
connectivity, affected Members and non-Members will opt to terminate
their connectivity arrangements with that exchange, and adopt a
possible range of alternative strategies, including routing to the
applicable exchange through another participant or market center or
taking that exchange's data indirectly. Accordingly, if the Exchange
charges excessive fees, it would stand to lose not only connectivity
revenues but also revenues associated with the execution of orders
routed to it, and, to the extent applicable, market data revenues. The
Exchange believes that this competitive dynamic imposes powerful
restraints on the ability of any exchange to charge unreasonable fees
for connectivity.
---------------------------------------------------------------------------

\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
\10\ See Securities Exchange Act Release No. 69226 (March 25,
2013), 78 FR 19350 (March 29, 2013) (SR-BATS-2013-018). See, e.g.,
Nasdaq Rule 7034(b); BATS BZX & BYX Exchange Fee Schedules,https://cdn.batstrading.com/resources/regulation/rule_book/BATS-Exchanges_Fee_Schedules.pdf.
---------------------------------------------------------------------------

Furthermore, the proposed rule change is also an equitable
allocation of reasonable dues, fees, and other charges as the Exchange
believes that the increased fees obtained will enable it to cover its
increased infrastructure costs associated with establishing physical
ports to connect to the Exchange's systems at the Exchange's primary
and secondary data centers. The additional revenue from the increased
fees will also enable the Exchange to continue to maintain and improve
its market technology and services. The Exchange believes that the
proposed fees for 1 gigabyte Fiber circuit of $1,000 per month and for
10 gigabyte Fiber circuit of $2,000 per month are reasonable in that
they are in the same range as analogous fees charged by other
exchanges, which are $1000 per month for 1 gigabyte connectivity and
range from $2,500-$5,000 per month for 10 gigabyte circuits.\11\
---------------------------------------------------------------------------

\11\ See, e.g., Nasdaq Rule 7034(b); BATS BZX & BYX Exchange Fee
Schedules, https://cdn.batstrading.com/resources/regulation/rule_book/BATS-Exchanges_Fee_Schedules.pdf.
---------------------------------------------------------------------------

Finally, the Exchange believes that the proposed rates are
equitable and non-discriminatory in that they apply uniformly to all
Members and non-Members. Members and non-Members will continue to
choose whether they want more than one physical port and choose the
method of connectivity based on their specific needs.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. As discussed above, the
Exchange believes that fees for connectivity are constrained by the
robust competition for order flow among exchanges and non-exchange
markets. Further, excessive fees for connectivity, including port fee
access, would serve to impair an exchange's ability to compete for
order flow rather than burdening competition. The proposal to increase
the fees for physical connectivity would bring the fees charged by the
Exchange closer to similar fees charged for physical connectivity by
other exchanges.\12\
---------------------------------------------------------------------------

\12\ Id.
---------------------------------------------------------------------------

In addition, the proposed rule change does not impose any burden on
intramarket competition as the fees are uniform for all Members and
non-Members. The Exchange notes that Members and non-Members also have
the ability to obtain access to these services without the need for an
independent physical port connection, such as through alternative means
of financial extranets and service bureaus that act as a conduit for
orders entered by Members and non-Members.

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)(A) of the Act \13\ and Rule 19b-4(f)(2) \14\ 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.
---------------------------------------------------------------------------

\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-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 email to rule-comments@sec.gov. Please
include File

[[Page 26671]]

Number SR-EDGX-2013-14 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-2013-14. 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
10:00 a.m. and 3:00 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-2013-14 and should be
submitted on or before May 28, 2013.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10704 Filed 5-6-13; 8:45 am]
BILLING CODE 8011-01-P

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