Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the EDGA Exchange, Inc. Fee Schedule, 27265-27267 [2013-11018]

Download as PDF Federal Register / Vol. 78, No. 90 / Thursday, May 9, 2013 / Notices Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–BOX–2013–23 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. mstockstill on DSK4VPTVN1PROD with NOTICES All submissions should refer to File Number SR–BOX–2013–23. 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 on official business days between the hours of 10:00 a.m. and 3:00 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–BOX– 2013–23, and should be submitted on or before May 30, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69505; File No. SR–EDGA– 2013–12] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the EDGA Exchange, Inc. Fee Schedule May 3, 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 May 1, 2013, EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) 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 of the Exchange pursuant to EDGA Rule 15.1(a) and (c). All of the changes described herein are applicable to EDGA 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. 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. [FR Doc. 2013–11003 Filed 5–8–13; 8:45 am] BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 As defined in Exchange Rule 1.5(n). 2 17 15 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:18 May 08, 2013 Jkt 229001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 27265 A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose In securities priced at or above $1.00, the Exchange currently provides a rebate of $0.0002 per share for Members’ orders that yield Flag BY, which routes to BATS BYX (‘‘BYX’’) and removes liquidity using routing strategies ROUC, ROUE, ROBY, ROBB or ROCO.4 The Exchange proposes to amend its fee schedule to increase the rebate it provides Members from $0.0002 per share to $0.0005 per share for Flag BY. The proposed change represents a pass through of the rate that Direct Edge ECN LLC (d/b/a DE Route) (‘‘DE Route’’), the Exchange’s affiliated routing brokerdealer, is rebated for adding an average volume of 50,000 shares per day on BYX.5 DE Route passes through the rebate to the Exchange and the Exchange, in turn, passes through the rebate to its Members. The Exchange notes that the proposed change is in response to BYX’s April 2013 fee filing with the Commission, wherein BYX increased the rate it rebates its customers, such as DE Route, from $0.0002 per share to a rebate of $0.0005 per share for orders that are routed to BYX and add a daily volume of at least 50,000 shares and remove liquidity.6 In securities priced at $1.00 or above, the Exchange currently assesses a charge of $0.0005 per share for Members’ orders that yield Flag RY, which routes to BYX and adds liquidity. The Exchange proposes to amend its fee schedule to increase the rate it charges Members from $0.0005 per share to $0.0007 per share for Flag RY. The proposed change represents a pass through of the rate that DE Route is charged for routing orders to BYX that do not qualify for additional volume tiered discounts.7 DE Route passes through the charge to the Exchange and the Exchange, in turn, passes through the charge to its Members. The Exchange notes that the proposed change is in response to BYX’s April 2013 fee filing with the Commission, 4 As defined in Exchange Rule 11.9(b)(2). Exchange notes that to the extent DE Route does or does not achieve any volume tiered rebate on BYX, its rate for Flag BY will not change. 6 See Securities Exchange Act Release No. 69317 (April 5, 2013), 78 FR 21651 (April 11, 2013) (SR– BYX–2013–012) (amending the rebate BYX provides for removing liquidity from the BYX order book for executions by members that add a daily average volume of at least 50,000 shares from $0.0002 per share to $0.0005 per share). 7 The Exchange notes that to the extent DE Route does or does not achieve any volume tiered rebate on BYX, its rate for Flag RY will not change. 5 The E:\FR\FM\09MYN1.SGM 09MYN1 27266 Federal Register / Vol. 78, No. 90 / Thursday, May 9, 2013 / Notices wherein BYX increased the rate it charges its customers, such as DE Route, from a charge of $0.0005 per share to a charge of $0.0007 per share for orders that are routed to BYX and add liquidity.8 The Exchange proposes to implement these amendments to its fee schedule on May 1, 2013. mstockstill on DSK4VPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,9 in general, and furthers the objectives of Section 6(b)(4),10 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 its proposal to pass through the increased rebate of $0.0005 per share for Members’ orders that yield Flag BY represents an equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities because the Exchange does not levy additional fees or offer additional rebates for orders that it routes to BYX through DE Route. Prior to BYX’s April 2013 fee filing, BYX provided DE Route a rebate of $ 0.0002 per share for orders yielding Flag BY, which DE Route passed through to the Exchange and the Exchange passed through to its Members. In BYX’s April 2013 fee filing, BYX increased the rebate it provides its customers, such as DE Route, from $0.0002 per share to a rebate of $0.0005 per share for orders that are routed to BYX and remove liquidity.11 Therefore, the Exchange’s proposal allows the Exchange to continue to provide its Members a pass-through rate for orders that are routed to BYX and remove liquidity through DE Route. The Exchange notes that routing through DE Route is voluntary. Lastly, the Exchange also believes that the proposed amendment is non-discriminatory because it applies uniformly to all Members. The Exchange believes that its proposal to pass through a charge of 8 See Securities Exchange Act Release No. 69317 (April 5, 2013), 78 FR 21651 (April 11, 2013) (SR– BYX–2013–012) (amending the rate BYX charges for adding displayed liquidity to the BYX order book for executions by members that do not qualify for a reduced charge from $0.0005 per share to $0.0007 per share). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(4). 11 See Securities Exchange Act Release No. 69317 (April 5, 2013), 78 FR 21651 (April 11, 2013) (SR– BYX–2013–012) (amending the rebate BYX provides for removing liquidity from the BYX order book for executions by members that add a daily average volume of at least 50,000 shares from $0.0002 per share to $0.0005 per share). VerDate Mar<15>2010 17:18 May 08, 2013 Jkt 229001 $0.0007 for Members’ orders that yield Flag RY represents an equitable allocation of reasonable dues, fees, and other charges among Members of the Exchange and other persons using its facilities because the Exchange does not levy additional fees or offer additional rebates for orders that it routes to BYX through DE Route. Prior to BYX’s April 2013 fee filing, BYX charged DE Route a fee of $ 0.0005 per share for orders yielding Flag RY, which DE Route passed through to the Exchange and the Exchange passed through to its Members. In BYX’s April 2013 fee filing, BYX increased the rate it charges its customers, such as DE Route, from $0.0005 per share to a charge of $0.0007 per share for orders that are routed to BYX and add liquidity. Therefore, the Exchange believes that the proposed change in Flag RY from a fee of $0.0005 per share to a fee of $0.0007 per share is equitable and reasonable because it accounts for the pricing changes on BYX. In addition, the proposal allows the Exchange to continue to charge its Members a pass-through rate for orders that are routed to BYX and add liquidity using DE Route. The Exchange notes that routing through DE Route is voluntary. Lastly, the Exchange also believes that the proposed amendment is non-discriminatory because it applies uniformly to all Members. The Exchange believes that its proposal to pass through a charge of $0.0007 per share for Members’ orders that yield Flag RY would increase intermarket competition because it offers customers an alternative means to route to BYX and add liquidity for the same price as entering orders on BYX directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. The Exchange believes that its proposal would increase competition for routing services because the market for order execution is competitive and the Exchange’s proposal provides customers with another alternative to route their orders. The Exchange notes that routing through DE Route is voluntary. B. Self-Regulatory Organization’s Statement on Burden on Competition The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b–4(f)(2) 13 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. These proposed rule changes do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that any of these changes represent a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange’s competitors. Additionally, Members may opt to disfavor the Exchange’s pricing if they believe that alternatives offer them better value. Accordingly, the Exchange believes that the proposed changes would not impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal to pass through a rebate of $0.0005 per share for Members’ orders that yield Flag BY would increase intermarket competition because it offers customers an alternative means to route to BYX and remove liquidity for the same price as entering orders on BYX directly. The Exchange believes its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 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 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–2013–12 on the subject line. 12 15 13 17 E:\FR\FM\09MYN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 09MYN1 Federal Register / Vol. 78, No. 90 / Thursday, May 9, 2013 / 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–2013–12. 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– 2013–12 and should be submitted on or before May 30, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–11018 Filed 5–8–13; 8:45 am] mstockstill on DSK4VPTVN1PROD with NOTICES BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69508; File No. SR– NYSEArca–2013–34] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Implement a One-Year Pilot Program for Issuers of Certain ExchangeTraded Products (‘‘ETPs’’) Listed on the Exchange May 3, 2013. On March 21, 2013, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to implement a one-year pilot program for issuers of certain exchange-traded products (‘‘ETPs’’) listed on the Exchange. On April 5, 2013, the Exchange submitted Amendment No. 1 to the proposed rule change, which replaced and superseded the proposed rule change in its entirety. The proposed rule change, as modified by Amendment No. 1, was published for comment in the Federal Register on April 11, 2013.3 The Commission received two comment letters on the proposal.4 Section 19(b)(2) of the Act 5 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change, the comments received, 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 69335 (Apr. 5, 2013), 78 FR 21681. 4 See Letter from John T. Hyland, Chief Investment Officer, United States Commodity Funds LLC, dated Apr. 10, 2013, and Letter from Stanislav Dolgopolov, Assistant Adjunct Professor, UCLA School of Law, dated Apr. 26, 2013. 5 15 U.S.C. 78s(b)(2). 2 17 14 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:18 May 08, 2013 Jkt 229001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 27267 and any response to the comments submitted by the Exchange. The proposed rule change would, among other things, create a one-year pilot program, the NYSE Arca ETP Incentive Program, for issuers of certain ETPs listed on the Exchange. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,6 designates June 17, 2013, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR–NYSEArca–2013–34). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–11019 Filed 5–8–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69509; File No. SR–Phlx– 2013–44] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Remote Streaming Quote Trader Fees and Reference a Remote Streaming Quote Trader Organization May 3, 2013. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 2 thereunder, notice is hereby given that on April 29, 2013, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or ‘‘Exchange’’) 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 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 The Exchange proposes to amend the Exchange’s Pricing Schedule to update the Preface section of the Pricing Schedule and Section VI, Part C to update references to Remote Streaming Quote Traders or RSQTs. The text of the proposed rule change is available on the Exchange’s Web site 6 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(31). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 7 17 E:\FR\FM\09MYN1.SGM 09MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 90 (Thursday, May 9, 2013)]
[Notices]
[Pages 27265-27267]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11018]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69505; File No. SR-EDGA-2013-12]

Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Amendments to the EDGA Exchange, Inc. Fee Schedule

May 3, 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 May 1, 2013, EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'')
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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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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 EDGA Rule 15.1(a) and (c). All
of the changes described herein are applicable to EDGA 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.
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\3\ As defined in Exchange Rule 1.5(n).
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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 securities priced at or above $1.00, the Exchange currently
provides a rebate of $0.0002 per share for Members' orders that yield
Flag BY, which routes to BATS BYX (``BYX'') and removes liquidity using
routing strategies ROUC, ROUE, ROBY, ROBB or ROCO.\4\ The Exchange
proposes to amend its fee schedule to increase the rebate it provides
Members from $0.0002 per share to $0.0005 per share for Flag BY. The
proposed change represents a pass through of the rate that Direct Edge
ECN LLC (d/b/a DE Route) (``DE Route''), the Exchange's affiliated
routing broker-dealer, is rebated for adding an average volume of
50,000 shares per day on BYX.\5\ DE Route passes through the rebate to
the Exchange and the Exchange, in turn, passes through the rebate to
its Members. The Exchange notes that the proposed change is in response
to BYX's April 2013 fee filing with the Commission, wherein BYX
increased the rate it rebates its customers, such as DE Route, from
$0.0002 per share to a rebate of $0.0005 per share for orders that are
routed to BYX and add a daily volume of at least 50,000 shares and
remove liquidity.\6\
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\4\ As defined in Exchange Rule 11.9(b)(2).
\5\ The Exchange notes that to the extent DE Route does or does
not achieve any volume tiered rebate on BYX, its rate for Flag BY
will not change.
\6\ See Securities Exchange Act Release No. 69317 (April 5,
2013), 78 FR 21651 (April 11, 2013) (SR-BYX-2013-012) (amending the
rebate BYX provides for removing liquidity from the BYX order book
for executions by members that add a daily average volume of at
least 50,000 shares from $0.0002 per share to $0.0005 per share).
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In securities priced at $1.00 or above, the Exchange currently
assesses a charge of $0.0005 per share for Members' orders that yield
Flag RY, which routes to BYX and adds liquidity. The Exchange proposes
to amend its fee schedule to increase the rate it charges Members from
$0.0005 per share to $0.0007 per share for Flag RY. The proposed change
represents a pass through of the rate that DE Route is charged for
routing orders to BYX that do not qualify for additional volume tiered
discounts.\7\ DE Route passes through the charge to the Exchange and
the Exchange, in turn, passes through the charge to its Members. The
Exchange notes that the proposed change is in response to BYX's April
2013 fee filing with the Commission,

[[Page 27266]]

wherein BYX increased the rate it charges its customers, such as DE
Route, from a charge of $0.0005 per share to a charge of $0.0007 per
share for orders that are routed to BYX and add liquidity.\8\
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\7\ The Exchange notes that to the extent DE Route does or does
not achieve any volume tiered rebate on BYX, its rate for Flag RY
will not change.
\8\ See Securities Exchange Act Release No. 69317 (April 5,
2013), 78 FR 21651 (April 11, 2013) (SR-BYX-2013-012) (amending the
rate BYX charges for adding displayed liquidity to the BYX order
book for executions by members that do not qualify for a reduced
charge from $0.0005 per share to $0.0007 per share).
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The Exchange proposes to implement these amendments to its fee
schedule on May 1, 2013.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(4),\10\ 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.
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\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that its proposal to pass through the
increased rebate of $0.0005 per share for Members' orders that yield
Flag BY represents an equitable allocation of reasonable dues, fees and
other charges among its Members and other persons using its facilities
because the Exchange does not levy additional fees or offer additional
rebates for orders that it routes to BYX through DE Route. Prior to
BYX's April 2013 fee filing, BYX provided DE Route a rebate of $ 0.0002
per share for orders yielding Flag BY, which DE Route passed through to
the Exchange and the Exchange passed through to its Members. In BYX's
April 2013 fee filing, BYX increased the rebate it provides its
customers, such as DE Route, from $0.0002 per share to a rebate of
$0.0005 per share for orders that are routed to BYX and remove
liquidity.\11\ Therefore, the Exchange's proposal allows the Exchange
to continue to provide its Members a pass-through rate for orders that
are routed to BYX and remove liquidity through DE Route. The Exchange
notes that routing through DE Route is voluntary. Lastly, the Exchange
also believes that the proposed amendment is non-discriminatory because
it applies uniformly to all Members.
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\11\ See Securities Exchange Act Release No. 69317 (April 5,
2013), 78 FR 21651 (April 11, 2013) (SR-BYX-2013-012) (amending the
rebate BYX provides for removing liquidity from the BYX order book
for executions by members that add a daily average volume of at
least 50,000 shares from $0.0002 per share to $0.0005 per share).
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The Exchange believes that its proposal to pass through a charge of
$0.0007 for Members' orders that yield Flag RY represents an equitable
allocation of reasonable dues, fees, and other charges among Members of
the Exchange and other persons using its facilities because the
Exchange does not levy additional fees or offer additional rebates for
orders that it routes to BYX through DE Route. Prior to BYX's April
2013 fee filing, BYX charged DE Route a fee of $ 0.0005 per share for
orders yielding Flag RY, which DE Route passed through to the Exchange
and the Exchange passed through to its Members. In BYX's April 2013 fee
filing, BYX increased the rate it charges its customers, such as DE
Route, from $0.0005 per share to a charge of $0.0007 per share for
orders that are routed to BYX and add liquidity. Therefore, the
Exchange believes that the proposed change in Flag RY from a fee of
$0.0005 per share to a fee of $0.0007 per share is equitable and
reasonable because it accounts for the pricing changes on BYX. In
addition, the proposal allows the Exchange to continue to charge its
Members a pass-through rate for orders that are routed to BYX and add
liquidity using DE Route. The Exchange notes that routing through DE
Route is voluntary. Lastly, the Exchange also believes that the
proposed amendment is non-discriminatory because it applies uniformly
to all Members.

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

These proposed rule changes do not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe that any of these changes
represent a significant departure from previous pricing offered by the
Exchange or pricing offered by the Exchange's competitors.
Additionally, Members may opt to disfavor the Exchange's pricing if
they believe that alternatives offer them better value. Accordingly,
the Exchange believes that the proposed changes would not impair the
ability of Members or competing venues to maintain their competitive
standing in the financial markets.
The Exchange believes that its proposal to pass through a rebate of
$0.0005 per share for Members' orders that yield Flag BY would increase
intermarket competition because it offers customers an alternative
means to route to BYX and remove liquidity for the same price as
entering orders on BYX directly. The Exchange believes its proposal
would not burden intramarket competition because the proposed rate
would apply uniformly to all Members.
The Exchange believes that its proposal to pass through a charge of
$0.0007 per share for Members' orders that yield Flag RY would increase
intermarket competition because it offers customers an alternative
means to route to BYX and add liquidity for the same price as entering
orders on BYX directly. The Exchange believes that its proposal would
not burden intramarket competition because the proposed rate would
apply uniformly to all Members.
The Exchange believes that its proposal would increase competition
for routing services because the market for order execution is
competitive and the Exchange's proposal provides customers with another
alternative to route their orders. The Exchange notes that routing
through DE Route is voluntary.

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 \12\ and Rule 19b-4(f)(2) \13\ 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.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-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-EDGA-2013-12 on the subject line.

[[Page 27267]]

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-2013-12. 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-2013-12 and should be
submitted on or before May 30, 2013.
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\14\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-11018 Filed 5-8-13; 8:45 am]
BILLING CODE 8011-01-P

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