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, 62854-62855 [2013-24554]
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62854
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70600; File No. SR–EDGA–
2013–30]
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
October 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
September 30, 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 selfregulatory 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) (‘‘Fee Schedule’’) to
decrease the rebate for orders yielding
Flag RZ. 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.
sroberts on DSK5SPTVN1PROD with FRONT MATTER
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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The term ‘‘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.’’ See Exchange Rule 1.5(n).
2 17
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21:08 Oct 21, 2013
Jkt 232001
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 decrease the rebate for
orders yielding Flag RZ. In securities
priced at or above $1.00, the Exchange
currently provides a rebate of $0.0025
per share for Members’ orders that yield
Flag RZ, which routes to the BATS
Exchange Inc. (‘‘BATS’’) and adds
liquidity. The Exchange proposes to
amend its Fee Schedule to decrease this
rebate to $0.0020 per share for Members’
orders that yield Flag RZ. 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 routing orders to BATS
when it does not qualify for a volume
tiered rebate. When DE Route routes to
BATS, it is rebated a standard rate of
$0.0020 per share.4 DE Route will pass
through this rate on BATS 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
BATS’s October 2013 fee change where
BATS decreased the rebate it provides
its customers, such as DE Route, from a
rebate of $0.0025 per share to a rebate
of $0.0020 per share that are routed to
BATS.5
Implementation Date
The Exchange proposes to implement
these amendments to its Fee Schedule
on October 1, 2013.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities.
The Exchange believes that its
proposal to decrease the pass through
rebate for Members’ orders that yield
Flag RZ from $0.0025 to $0.0020 per
share represents an equitable allocation
4 The Exchange notes that to the extent DE Route
does or does not achieve any volume tiered
discount on BATS, its rate for Flag RZ will not
change.
5 See BATS Exchange Pricing Effective October 1,
2013, https://cdn.batstrading.com/resources/fee_
schedule/2013/BATS-BZX-Exchange-PricingEffective-October-1-2013.pdf (offering a standard,
non-tiered rebate of $0.0020 per share).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00272
Fmt 4703
Sfmt 4703
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 BATS through DE Route.
Prior to BATS’s October 2013 fee
change, BATS provided DE Route a
rebate of $0.0025 per share for orders
yielding Flag RZ, which DE Route
passed through to the Exchange and the
Exchange passed through to its
Members. In October 2013, BATS
decreased the standard rebate it
provides its customers, such as DE
Route, from a rebate of $0.0025 per
share to a rebate of $0.0020 per share for
orders that are routed to BATS.8
Therefore, the Exchange believes that
the proposed change in Flag RZ from a
rebate of $0.0025 per share to a rebate
of $0.0020 per share is equitable and
reasonable because it accounts for the
pricing changes on BATS. In addition,
the proposal allows the Exchange to
continue to charge its Members a passthrough rate for orders that are routed to
BATS. The Exchange notes that routing
through DE Route is voluntary. Lastly,
the Exchange also believes that the
proposed amendment is nondiscriminatory 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 EDGA’s pricing if they believe
that alternatives offer them better value.
Accordingly, the Exchange does not
believe that the proposed changes will
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
$0.0020 per share for Members’ orders
that yield Flag RZ would increase
intermarket competition because it
offers customers an alternative means to
route to BATS for the same price as
entering orders on BATS directly. The
Exchange believes that its proposal
would not burden intramarket
8 See BATS Exchange Pricing Effective October 1,
2013, https://cdn.batstrading.com/resources/fee_
schedule/2013/BATS-BZX-Exchange-PricingEffective-October-1-2013.pdf (offering a standard,
non-tiered rebate of $0.0020 per share).
E:\FR\FM\22OCN1.SGM
22OCN1
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
competition because the proposed rate
would apply uniformly to all 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 9 and Rule 19b–4(f)(2) 10
thereunder. At any time within 60 days
of the filing of such proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
sroberts on DSK5SPTVN1PROD with FRONT MATTER
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–2013–30 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–2013–30. 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–
2013–30 and should be submitted on or
before November 12, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24554 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70626; File No. SR–EDGX–
2013–36]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend EDGX Rules
3.2, 13.3, and Adopt Rule 12.14, Front
Running of Block Transactions To
Conform With the Rules of Other SelfRegulatory Organizations
October 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
September 26, 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 and II below, which items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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: (i) Amend
Rule 3.22, Proxy Voting; (ii) amend Rule
13.3, Forwarding of Issuer Materials;
and (iii) adopt new Rule 12.14, Front
Running of Block Transactions, to
conform with the rules of the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) for purposes of an agreement
between the Exchange and FINRA
pursuant to Rule 17d-2 under the Act.3
All of the changes described herein are
applicable to EDGX Members. The text
of the proposed rule change is available
on the Exchange’s Internet Web site at
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
Pursuant to Rule 17d–2 under the
Act,4 the Exchange and FINRA entered
into an agreement to allocate regulatory
responsibility for common rules (the
‘‘17d–2 Agreement’’). The 17d–2
Agreement covers common members of
the Exchange and FINRA and allocates
to FINRA regulatory responsibility, with
respect to common members, for the
following: (i) examination of common
members of the Exchange and FINRA
for compliance with federal securities
laws, rules and regulations and rules of
the Exchange that the Exchange has
certified as identical or substantially
similar to FINRA rules; (ii) investigation
of common members of EDGX and
FINRA for violations of federal
securities laws, rules or regulations, or
Exchange rules that the Exchange has
11 17
9 15
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
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21:08 Oct 21, 2013
1 15
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Sfmt 4703
62855
3 17
4 17
E:\FR\FM\22OCN1.SGM
CFR 240.17d–2.
CFR 240.17d–2.
22OCN1
Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62854-62855]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24554]
[[Page 62854]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70600; File No. SR-EDGA-2013-30]
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
October 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 September 30, 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\ of the Exchange pursuant to EDGA Rule 15.1(a) and (c)
(``Fee Schedule'') to decrease the rebate for orders yielding Flag RZ.
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\ The term ``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.'' See 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
The Exchange proposes to amend its Fee Schedule to decrease the
rebate for orders yielding Flag RZ. In securities priced at or above
$1.00, the Exchange currently provides a rebate of $0.0025 per share
for Members' orders that yield Flag RZ, which routes to the BATS
Exchange Inc. (``BATS'') and adds liquidity. The Exchange proposes to
amend its Fee Schedule to decrease this rebate to $0.0020 per share for
Members' orders that yield Flag RZ. 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 routing orders to BATS when it does not qualify for a
volume tiered rebate. When DE Route routes to BATS, it is rebated a
standard rate of $0.0020 per share.\4\ DE Route will pass through this
rate on BATS 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 BATS's October 2013 fee change where BATS
decreased the rebate it provides its customers, such as DE Route, from
a rebate of $0.0025 per share to a rebate of $0.0020 per share that are
routed to BATS.\5\
---------------------------------------------------------------------------
\4\ The Exchange notes that to the extent DE Route does or does
not achieve any volume tiered discount on BATS, its rate for Flag RZ
will not change.
\5\ See BATS Exchange Pricing Effective October 1, 2013, https://cdn.batstrading.com/resources/fee_schedule/2013/BATS-BZX-Exchange-Pricing-Effective-October-1-2013.pdf (offering a standard, non-
tiered rebate of $0.0020 per share).
---------------------------------------------------------------------------
Implementation Date
The Exchange proposes to implement these amendments to its Fee
Schedule on October 1, 2013.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\6\ in general, and
furthers the objectives of Section 6(b)(4),\7\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that its proposal to decrease the pass
through rebate for Members' orders that yield Flag RZ from $0.0025 to
$0.0020 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 BATS through DE Route.
Prior to BATS's October 2013 fee change, BATS provided DE Route a
rebate of $0.0025 per share for orders yielding Flag RZ, which DE Route
passed through to the Exchange and the Exchange passed through to its
Members. In October 2013, BATS decreased the standard rebate it
provides its customers, such as DE Route, from a rebate of $0.0025 per
share to a rebate of $0.0020 per share for orders that are routed to
BATS.\8\ Therefore, the Exchange believes that the proposed change in
Flag RZ from a rebate of $0.0025 per share to a rebate of $0.0020 per
share is equitable and reasonable because it accounts for the pricing
changes on BATS. In addition, the proposal allows the Exchange to
continue to charge its Members a pass-through rate for orders that are
routed to BATS. 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.
---------------------------------------------------------------------------
\8\ See BATS Exchange Pricing Effective October 1, 2013, https://cdn.batstrading.com/resources/fee_schedule/2013/BATS-BZX-Exchange-Pricing-Effective-October-1-2013.pdf (offering a standard, non-
tiered rebate of $0.0020 per share).
---------------------------------------------------------------------------
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 EDGA's pricing if they
believe that alternatives offer them better value. Accordingly, the
Exchange does not believe that the proposed changes will 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
$0.0020 per share for Members' orders that yield Flag RZ would increase
intermarket competition because it offers customers an alternative
means to route to BATS for the same price as entering orders on BATS
directly. The Exchange believes that its proposal would not burden
intramarket
[[Page 62855]]
competition because the proposed rate would apply uniformly to all
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 \9\ and Rule 19b-4(f)(2) \10\ thereunder. At any
time within 60 days of the filing of such proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 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-2013-30 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-2013-30. 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-2013-30 and should be
submitted on or before November 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24554 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P