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, 49588-49592 [2013-19668]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 157 (Wednesday, August 14, 2013)]
[Notices]
[Pages 49588-49592]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19668]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70144; File No. SR-EDGA-2013-23]


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

August 8, 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 August 5, 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.
---------------------------------------------------------------------------

    \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\ pursuant to EDGA Rule 15.1(a) and (c) (``Fee Schedule'') 
to: (1) Increase the fee charged from $0.0029 per share to $0.0030 per 
share for orders that yield Flag U, which routes to LavaFlow, Inc. 
(``LavaFlow''); (2) eliminate underutilized pricing tiers from its Fee 
Schedule; and (3) make a number of non-substantive amendments and 
clarifications. 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.
---------------------------------------------------------------------------

    \3\ ``Member'' is defined as ``any registered broker or dealer, 
or any person associated with a registered broker or dealer, that 
has been admitted to membership in the Exchange. A Member will have 
the status of a ``member'' of the Exchange as that term is defined 
in Section 3(a)(3) of the Act.'' EDGA 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
    The Exchange proposes to amend its Fee Schedule to: (1) Increase 
the fee charged from $0.0029 per share to $0.0030 per share for orders 
that yield Flag U, which routes to LavaFlow; (2) eliminate 
underutilized pricing tiers from its Fee Schedule; and (3) make a 
number of non-substantive amendments and clarifications.
Fee Change for Flag U
    In securities priced at or above $1.00, the Exchange currently 
assesses a fee of $0.0029 per share for Members' orders that yield Flag 
U, which routes to LavaFlow. The Exchange proposes to amend its Fee 
Schedule to increase this fee to $0.0030 per share for Members' orders 
that yield Flag U. 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 charged for routing 
orders to LavaFlow and do not qualify for a volume tiered discount. 
When DE Route routes to LavaFlow, it is charged a default fee of 
$0.0030 per share.\4\ DE Route will pass through this rate on LavaFlow 
to the Exchange and the Exchange, in turn, will pass through this rate 
to its Members. The Exchange notes that the proposed change is in 
response to LavaFlow's July 2013 fee change where LavaFlow increased 
the rate it charges its customers, such as DE Route, from a charge of 
$0.0029 per share to a charge of $0.0030 per share for orders that are 
routed to LavaFlow and add liquidity.\5\
---------------------------------------------------------------------------

    \4\ The Exchange notes that to the extent DE Route does or does 
not achieve any volume tiered discount on LavaFlow, its rate for 
Flag U will not change.
    \5\ See LavaFlow Pricing, available at https://www.lavatrading.com/solutions/pricing.php (July 1, 2013) (charging a 
fee of $0.0030 per share for removing liquidity in shares priced at 
or above $1.00) (last visited July 19, 2013).
---------------------------------------------------------------------------

Elimination of the Tier Under Footnote 6 \6\
---------------------------------------------------------------------------

    \6\ References herein to ``footnotes'' refer only to footnotes 
on the Exchange's Fee Schedule and not to footnotes within the 
current filing.
---------------------------------------------------------------------------

    Currently, under Footnote 6, Members can qualify for a decreased 
fee of $0.0023 per share for orders yielding Flag U where they post an 
average of 100,000 shares or more per day using routing strategy ROLF 
(yielding Flag M). The Exchange proposes to amend its Fee Schedule to 
remove this pricing tier under Footnote 6. This pricing tier 
represented a pass through of the rate that DE Route was charged for 
routing orders to LavaFlow that qualify for an identical volume tiered 
discount provided by LavaFlow. When DE Route routed to LavaFlow and 
satisfied its tier, it was charged a reduced fee of $0.0023 per share. 
DE Route passed through this rate on LavaFlow to the Exchange and the 
Exchange, in turn, passed through this rate to its Members. The 
Exchange notes that the proposed change is in response to LavaFlow's 
recent fee change where LavaFlow eliminated its equivalent pricing tier 
from its fee schedule.\7\ The Exchange also proposes to remove 
references to Footnote 6 from Flag U in the list of ``Liquidity 
Flags.'' Lastly, the Exchange notes that with the deletion of this 
tier, Members will continue to be subject to the other fees and tiers 
listed on the Exchange's Fee Schedule.
---------------------------------------------------------------------------

    \7\ See LavaFlow Pricing, available at https://www.lavatrading.com/solutions/pricing.php (July 1, 2013) (no longer 
charging a fee of $0.0023 per share for members that post an average 
of 100,000 shares or more per day) (last visited July 19, 2013).
---------------------------------------------------------------------------

Elimination of Tiers Under Footnote 16
    The Exchange proposes to eliminate the pricing tiers included under 
Footnote 16 because they are underutilized by Members. Currently, the 
Exchange offers the following pricing tiers for Flag Q under Footnote 
16:
     $0.0015 per share where the Member posts greater than or 
equal to 0.30% of the total consolidated volume (``TCV'') \8\ in 
average daily volume (``ADV'') \9\ on the Exchange and routes

[[Page 49589]]

2.5 million shares through the use of Flag Q;
---------------------------------------------------------------------------

    \8\ TCV is defined as the volume reported by all exchanges and 
the trade reporting facilities to the consolidated transaction 
reporting plans for Tapes A, B, and C securities for the month in 
which fees are calculated.
    \9\ ADV is defined as the average daily trading volume of shares 
that a Member executed on the Exchange.
---------------------------------------------------------------------------

     $0.0015 per share where the Member executes greater than 
or equal to an ADV of 12 million shares using the ROUC routing strategy 
and yielding Flags C, D, I, K, Q, X, BY, CR and MT; and
     $0.0010 per share where the Member posts greater than or 
equal to 0.30% of the TCV in ADV on EDGA and routes 5 million shares 
through the use of Flag Q.
    The Exchange notes that no Member has qualified for these tiers 
during the previous three months, nor does the Exchange anticipate a 
Member to qualify for these tiers in the near future. Therefore, the 
Exchange proposes to remove these tiers from its Fee Schedule. The 
Exchange also proposes to remove references to Footnote 16 from the 
list of ``Liquidity Flags.'' Lastly, the Exchange notes that with the 
deletion of these tiers, Members will continue to be subject to the 
other fees and tiers listed on the Exchange's Fee Schedule.
Non-Substantive Clarifying Changes
    The Exchange also proposes to make a number of clarifying, non-
substantive changes to its Fee Schedule to provide greater transparency 
to Members on how the Exchange assesses fees and calculates rebates. 
The Exchange notes that none of these changes substantively amend any 
fee or rebate, nor alter the manner in which it assesses fees or 
calculates rebates. These proposed changes are outlined below:
     Amend ``EDGA Exchange'' at the top of the Fee Schedule to 
read ``EDGA Exchange, Inc.'' and make a similar change to the last 
sentence of the ``EdgeBook AttributedSM Fees'' section.
     Amend the sentence at the top of the Fee Schedule from 
``Rebates & Charges for Adding, Removing or Routing Liquidity per Share 
for Tape A, B, & C Securities'' to ``Rebates & Charges for Adding, 
Removing or Routing Liquidity per share for Tape A, B, & C securities.
     Add language to the beginning of the Fee Schedule to 
clarify that the rates listed in the ``Standard Rates'' table apply 
unless a Member is assigned a liquidity flag other than a standard 
flag. If a Member is assigned a liquidity flag other than a standard 
flag, the rates listed in the ``Liquidity Flags'' table will apply.
     Title the first section of the Fee Schedule as ``Standard 
Rates'' and the second section ``Liquidity Flags'' by deleting current 
text ``Liquidity Flags and Associated Fees.''
     Add a row to the ``Standard Rates'' section of the Fee 
Schedule specifying to which flags the standard rates apply. These 
flags are B, V, Y, 3 and 4 for adding liquidity, N, W, 6, BB, CR, PR 
and XR for removing liquidity, and X for routing and removing 
liquidity. The Exchange notes that the flags listed in this row are 
also listed as ``Liquidity Flags'' indicating a rate equal to the 
standard rate. The Exchange believes adding a row indicating which 
flags provide the standard rate would add clarity to its Fee Schedule.
     Make grammatical changes to the ``Liquidity Flags'' 
section. These proposed changes are the following: (i) Replacing 
``Add'' with ``Adds'' under flags B, V, Y, 3 and 4; (ii) replacing 
``Remove'' with ``Removes'' under flags N, W, 6, BB and CR; (iii) 
replace ``primary'' with ``listing'' under Flag O; (iv) delete 
``order'' from Flag S as it is repetitive; (v) replace ``MPM'' with 
``MidPoint Match'' under Flag MT; (vi) replace ``Mid Point'' with 
``Midpoint'' under Flags PA and PX; (vii) add the word ``away'' to Flag 
R to clarify that the flag is referring to an away exchange and not the 
Exchange; and (viii) remove instances of ``book'' from footnotes B, N, 
V, W, Y and BB.
     Add a section titled ``Definitions,'' which would consist 
of terms that are currently defined within the footnotes of the Fee 
Schedule. This section would consist of definitions for ``Added 
Flags,'' ``Removal Flags,'' ``Routed Flags,'' ``Average Daily Volume'' 
and ``Total Consolidated Volume.'' ``Added Flags'' would be defined as 
the following flags that are counted towards tiers, where applicable: 
B, V, Y, DM, HA, PA, RP, 3, and 4. ``Removal Flags'' would be defined 
as the following flags that are counted towards tiers, where 
applicable: BB, N, W, CR, DT, HR, PR, PT, XR and 6. ``Routed Flags'' 
would be defined as the following flags that are counted towards tiers, 
where applicable: A, C, D, F, G, I, J, K, L, M, O, P, Q, R, S, T, U, X, 
Z, 2, 7, 8, 9, 10, BY, CL, PX, RA, RB, RC, RM, RR, RS, RT, RW, RX, RY, 
RZ, and SW. ADV would be defined as the average daily volume of shares 
that a Member executed on the Exchange for the month in which the fees 
are calculated. TCV would be defined as the volume reported by all 
exchanges and trade reporting facilities to the consolidated 
transaction reporting plans for Tapes A, B and C securities for the 
month in which the fees are calculated. Where these terms appear in the 
footnotes, such terms would be abbreviated to match the ``Definitions'' 
section. The Exchange notes that these terms were previously defined 
within the footnotes. The Exchange does not propose any substantive 
changes to the definitions; it is simply moving the definitions from 
the footnotes and consolidating them under the ``Definitions'' section.
     Add a section entitled ``General Notes'' to help clarify 
the application of the footnotes. First, the ``General Notes'' section 
would clarify that, to the extent a Member: (i) does not qualify for 
any of the tiers included in the footnotes, the rates listed in the 
``Liquidity Flags'' section will apply; or (ii) qualifies for higher 
rebates and/or lower fees than those provided by a tier for which such 
Member qualifies, the higher rebates and/or lower fees shall apply.\10\ 
Second, the section will incorporate text currently located in 
footnotes ``a'' and ``b'' that (i) trading activity on days when the 
market closes early does not count toward volume tiers and (ii) upon a 
Member's request, EDGA will aggregate share volume calculations for 
wholly owned affiliates on a prospective basis. Lastly, the section 
will clarify that variable rates provided by tiers apply only to 
executions in securities priced at or above $1.00.
---------------------------------------------------------------------------

    \10\ These clarifications are similar to text included in 
footnotes 2 and 4 of the EDGX Exchange, Inc. Fee Schedule. See EDGX 
Exchange, Inc., Fee Schedule, available at https://www.directedge.com/Membership/FeeSchedule/EDGXFeeSchedule.aspx (July 
1, 2013).
---------------------------------------------------------------------------

     Add text to Footnote 2 to clarify that both displayed and 
non-displayed liquidity count towards the 8,000,000 share posting 
requirement to qualify for the rates for flags HA and HR listed in the 
``Liquidity Flags'' table.
     Delete the language ``Intentionally omitted'' from 
Footnote 3 and replace it with the content from Footnote 17, which 
would be provided in table format. The Exchange does not propose to 
alter the fees or rebates offered under this tier or the requirements 
of the tier; it simply seeks to reformat the tier as a table to make it 
easier to read and understand. The Exchange also proposes to name the 
tier as the ``RPMT Tier.'' Conforming changes are proposed to be made 
to references to the footnotes in the ``Liquidity Flags'' section.
     Convert the tiers in Footnote 4 into table format and 
provide a name for each tier. The Exchange does not propose to alter 
the fees or rebates offered under these tiers or the requirements of 
the tiers; it simply seeks to reformat the tiers as a table to make 
them easier to read and understand. The Exchange also proposes to name 
the tiers under Footnote 4 as the ``Add Volume Tiers.'' In addition, 
the Exchange proposes to clarify that the fee to add for meeting any of 
these tiers is applicable to flags B, V, Y, 3 and 4.

[[Page 49590]]

     As discussed above, the Exchange proposes to delete the 
content of Footnote 6. In its place, the Exchange proposes to move the 
text, unchanged, from Footnote 15. Conforming changes are proposed to 
be made to references to the footnotes in the ``Liquidity Flags'' 
section.
     Delete the language ``Intentionally omitted'' from 
Footnote 7 and replace it with the exact content from Footnote 14. 
Conforming changes are proposed to be made to references to the 
footnotes in the ``Liquidity Flags'' section.
     Amend footnotes 8, 9, 10, and 11 to include similar 
language when stating which flag would be yielded when an order is 
routed using a particular routing strategy or to a specific trading 
center as contained in each footnote. In addition, pricing information 
in the footnotes would also be removed because such information is 
redundant and its removal would simplify the Fee Schedule.
     Delete the language ``Intentionally omitted'' from 
Footnote 12 and replace it with the exact content from Footnote 13. 
Conforming changes are proposed to be made to references to the 
footnotes in the ``Liquidity Flags'' section.
     Delete footnotes 13--17 and ``a''--``c'' as well as 
references to the footnotes in the ``Liquidity Flags'' section.
     Delete Footnote ``d'' and rename it as a new section 
entitled, ``Late Fees.'' The Exchange does not propose to amend the 
text of Footnote ``d,'' which will now be included under the new ``Late 
Fees'' section. References to Footnote ``d'' would be removed from the 
``Liquidity Flags'' section.
     Amend the section ``Port Fees'' to replace the word 
``Edge'' with ``EDGE'' and add the word ``Ports'' after ``EdgeRisk.''
     Remove references to the effective date of a rule filing 
where such filing has become effective (i.e., Port Fees, EdgeRisk 
Gateway, Physical Connectivity Fees, Membership Fees, EdgeBook 
Attributed Fees, Edge Attribution Incentive Program and Edge Routed 
Liquidity Report).
     Conform titles of products in the sections following the 
footnotes to read first as product name followed by ``Fees'' rather 
than ``Pricing,'' where applicable. Furthermore, the titles of columns 
would be amended to conform to a common format.
     Insert and remove trademark symbols where applicable 
throughout the Fee Schedule (i.e., EDGA[supreg], EDGX[supreg], EDGE 
XPRS[supreg], EdgeRisk PortsSM, EdgeRisk GatewaySM, EdgeBook DepthSM, 
EdgeBook AttributedSM, Edge Routed Liquidity ReportSM, and EdgeBook 
Cloud[supreg]).
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule on August 5, 2013.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\11\ in general, and 
furthers the objectives of Section 6(b)(4),\12\ 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 also believes the proposed rule change is 
consistent with the Section 6(b)(5) \13\ requirements that the rules of 
an exchange be designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Fee Change for Flag U
    The Exchange believes that its proposal to increase the pass 
through charge for Members' orders that yield Flag U from $0.0029 to 
$0.0030 per share represents an equitable allocation of reasonable 
dues, fees, and other charges among 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 LavaFlow through DE 
Route. Prior to LavaFlow's July 2013 fee change, LavaFlow charged DE 
Route a fee of $0.0029 per share for orders yielding Flag U, which DE 
Route passed through to the Exchange and the Exchange passed through to 
its Members. In July 2013, LavaFlow increased the rate it charges its 
customers, such as DE Route, from a charge of $0.0029 per share to a 
charge of $0.0030 per share for orders that are routed to LavaFlow.\14\ 
Therefore, the Exchange believes that the proposed change in Flag U 
from a fee of $0.0029 per share to a fee of $0.0030 per share is 
equitable and reasonable because it accounts for the pricing changes on 
LavaFlow. In addition, the proposal allows the Exchange to continue to 
charge its Members a pass-through rate for orders that are routed to 
LavaFlow and remove 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.
---------------------------------------------------------------------------

    \14\ See LavaFlow Pricing, available at https://www.lavatrading.com/solutions/pricing.php (July 1, 2013) (charging a 
fee of $0.0030 per share for removing liquidity in shares priced at 
or above $1.00).
---------------------------------------------------------------------------

Elimination of the Tier Under Footnote 6
    The Exchange believes that its proposal to eliminate the pricing 
tier under Footnote 6 represents an equitable allocation of reasonable 
dues, fees, and other charges among 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 LavaFlow through DE 
Route. Prior to LavaFlow's recent fee change, LavaFlow charged DE Route 
a fee of $ 0.0023 per share when volume criteria identical to that 
contained in Footnote 6 were met. DE Route, in turn, passed through 
this rate to the Exchange and the Exchange passed it through to its 
Members. Recently, LavaFlow eliminated this pricing tier from its fee 
schedule.\15\ Therefore, the Exchange believes that removing the 
related pricing tier under Footnote 6 is equitable and reasonable 
because it accounts for the pricing changes on LavaFlow. The Exchange 
notes that routing through DE Route is voluntary. The Exchange also 
believes the elimination of unnecessary and obsolete tiers simplifies 
its Fee Schedule. Removal of the tiers under Footnote 6 is also 
equitable and not unfairly discriminatory because those tiers would be 
eliminated and no longer be available to any Member. Lastly, the 
Exchange notes that with the deletion of this tier, Members would 
continue to be subject to the other fees and tiers listed on the 
Exchange's Fee Schedule.
---------------------------------------------------------------------------

    \15\ See LavaFlow Pricing, available at https://www.lavatrading.com/solutions/pricing.php (July 1, 2013) 
(eliminating a fee of $0.0023 per share for orders yielding Flag U 
where they post an average of 100,000 shares or more per day).
---------------------------------------------------------------------------

Elimination of Tiers Under Footnote 16
    The Exchange believes that the proposal to eliminate the tiers 
under Footnote 16 from its Fee Schedule is reasonable because these 
tiers are underutilized and have generally not incentivized Members to 
add liquidity to the Exchange. The Exchange notes that no Member has 
qualified for these tiers during the past three months, nor does the 
Exchange anticipate a Member to qualify for these tiers in the near

[[Page 49591]]

future. Therefore, the Exchange believes eliminating the tiers under 
Footnote 16 would clarify its Fee Schedule. The Exchange also believes 
the elimination of unnecessary and obsolete tiers simplifies its Fee 
Schedule. Removal of the tiers under Footnote 16 is also equitable and 
not unfairly discriminatory because those tiers would be eliminated and 
no longer be available to any Member. Lastly, the Exchange notes that 
with the deletion of these tiers, Members would continue to be subject 
to the other fees and tiers listed on the Exchange's Fee Schedule.
Non-Substantive Clarifying Changes
    The Exchange believes that the non-substantive clarifying changes 
to its Fee Schedule are reasonable because they are designed to provide 
greater transparency to Members with regard to how the Exchange 
assesses fees and provides rebates. The Exchange notes that none of the 
proposed non-substantive clarifying changes are designed to amend any 
fee or rebate, nor alter the manner in which it assesses fees or 
calculates rebates. The Exchange believes that Members would benefit 
from clear guidance in its Fee Schedule that describes the manner in 
which the Exchange would assess fees and calculate rebates. These non-
substantive, technical changes to the Fee Schedule as intended to make 
the Fee Schedule clearer and less confusing for investors and eliminate 
potential investor confusion, thereby removing impediments to and 
perfecting the mechanism of a free and open market and a national 
market system, and, in general, protecting investors and the public 
interest.

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 any of 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.
Fee Change for Flag U
    The Exchange believes that its proposal to pass through a charge of 
$0.0030 per share for Members' orders that yield Flag U would increase 
intermarket competition because it offers customers an alternative 
means to route to LavaFlow for the same price as entering orders on 
LavaFlow directly. The Exchange believes that its proposal would not 
burden intramarket competition because the proposed rate would apply 
uniformly to all Members.
Elimination of the Tier Under Footnote 6
    The Exchange believes that its proposal to eliminate the pricing 
tier under Footnote 6 would not impact intermarket competition because 
the change is in response to LavaFlow removing an identical 
corresponding tier from its fee schedule. The Exchange believes that 
its proposal would not burden intramarket competition because the 
pricing tier would no longer be available to any Members.
Elimination of Tiers Under Footnote 16
    The Exchange believes that elimination of the tiers under Footnote 
16 would not affect intermarket nor intramarket competition because the 
tiers have generally not incentivized Members to add liquidity to the 
Exchange.
Non-Substantive Clarifying Changes
    The Exchange believes that non-substantive, clarifying changes to 
the Fee Schedule would not affect intermarket nor intramarket 
competition because none of these changes are designed to amend any fee 
or rebate or alter the manner in which the Exchange assesses fees or 
calculates rebates. These changes are intended to provide greater 
transparency to Members with regard to how the Exchange access fees and 
provides rebates.

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\16\ and Rule 19b-4(f)(2)\17\ 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 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 Number SR-EDGA-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.

All submissions should refer to File Number SR-EDGA-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, 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

[[Page 49592]]

should refer to File Number SR-EDGA-2013-23 and should be submitted on 
or before September 4, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\

Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2013-19668 Filed 8-13-13; 8:45 am]
BILLING CODE 8011-01-P