Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the EDGX Exchange, Inc. Fee Schedule, 62778-62780 [2013-24661]
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62778
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
all securities traded on the Exchange are
traded pursuant to unlisted trading
privileges and that the Exchange will
not list any securities before first filing
and obtaining Commission approval of
rules that incorporate qualitative listing
criteria and comply with Rule 10A–3
under the Act.11 To make clear the
Exchange’s intention to comply with the
requirements of Rule 10C–1, the
Exchange proposes to amend Rule 14.1
to state that no equity securities will be
listed on the Exchange until Exchange
Rules have been amended to also
comply with Rule 10C–1. Because the
Exchange does not presently list any
equity securities, the Exchange does not
believe it is necessary to make any
further amendments in response Section
952 of the Dodd-Frank Act at this time.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the
Act.12 Specifically, the proposal is
consistent with Section 6(b)(5) of the
Act,13 which requires exchange rules to
promote just and equitable principles of
trade, remove impediments to, and
perfect the mechanism of, a free and
open market and a national market
system, and, in general, protect
investors and the public interest. The
Exchange believes the proposed rule
change fulfills these requirements
because it will add language to Rule
14.1 that clarifies the fact that the
Exchange will not list equity securities
without first ensuring that its rules
comply with Rule 10C–1, which
implements Section 10C of the Act.14
sroberts on DSK5SPTVN1PROD with FRONT MATTER
BYX believes the proposal is
consistent with Section 6(b)(8) of the
Act 15 in that it does not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes that the proposed rule
change will merely clarify the fact that
Exchange Rules must comply with Rule
10C–1 under the Act before any listing
of equity securities on the Exchange
becomes effective. Thus, the rule change
CFR 240.10A–3.
U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
14 15 U.S.C. 78j–3.
15 15 U.S.C. 78f(b)(8).
12 15
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21:08 Oct 21, 2013
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 16 and Rule 19b–
4(f)(6)(iii) thereunder.17
At any time within 60 days of the
filing of the 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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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
B. Self-Regulatory Organization’s
Statement on Burden on Competition
11 17
will not impose any burden on
intermarket or intramarket competition.
• 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–
BYX–2013–037 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–BYX–2013–037. 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 20549–1090, 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
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–BYX–
2013–037, and should be submitted on
or before November 12, 2013
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24632 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70669; File No. SR–EDGX–
2013–38]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the EDGX Exchange, Inc. Fee
Schedule
October 11, 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 October
2, 2013, EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
18 17
16 15
U.S.C. 78s(b)(3)(A).
17 17 CFR 240.19b–4(f)(6).
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
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 EDGX Rule
15.1(a) and (c) (‘‘Fee Schedule’’) to add
orders yielding Flag AA to the
calculation of the average daily trading
(‘‘ADV’’) threshold required to meet the
MidPoint Match Volume Tier. 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
sroberts on DSK5SPTVN1PROD with FRONT MATTER
1. Purpose
The Exchange proposes to amend its
Fee Schedule to add orders yielding
Flag AA to the calculation of the ADV
threshold required to meet the MidPoint
Match Volume Tier. Footnote 3 of the
Fee Schedule currently provides that
Members may qualify for the MidPoint
Match Volume Tier and not be charged
a fee for orders that yield Flag MM on
EDGX if they add and/or remove an
ADV of at least 2,500,000 shares on a
daily basis, measured monthly, on
EDGX, yielding flags MM (adds
liquidity to MidPoint Match using the
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).
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21:08 Oct 21, 2013
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Midpoint Match order type 4) and/or MT
(removes liquidity from MidPoint Match
using MidPoint Match order type). The
Exchange proposes to add orders
yielding Flag AA (MidPoint Match
Cross (same MPID)) to the calculation of
the ADV threshold required to meet the
MidPoint Match Volume Tier. The
Exchange appends Flag AA to buy and
sell MidPoint Match Orders that
inadvertently match against each other
and share the same MPID (Member
shares both sides of the trade). MidPoint
Match Orders yielding Flag AA would
continue to be charged a rate of $0.0012
per share. The remainder of the criteria
required to meet the tier as well as the
rate offered by the tier would remain
unchanged.
The Exchange proposes to implement
these amendments to its Fee Schedule
on October 2, 2013.
62779
midpoint of the NBBO may receive the
benefit of price improvement, and
including orders that yield Flag AA to
the calculation of the ADV threshold of
the MidPoint Match Volume Tier would
be a reasonable means by which to
further encourage the use of such
orders. In addition, the Exchange
believes that by encouraging the use of
MidPoint Match Orders, Members
seeking price improvement would be
more motivated to direct their orders to
EDGX because they would have a
heightened expectation of the
availability of liquidity at the midpoint
of the NBBO. In addition, the Exchange
also believes that the proposed
amendment to the MidPoint Match
Volume Tier is non-discriminatory
because it applies uniformly to all
Members.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,5
in general, and furthers the objectives of
Section 6(b)(4),6 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 adding
orders yielding Flag AA to the
calculation of the ADV threshold
required to meet the MidPoint Match
Volume Tier represents an equitable
allocation of reasonable dues, fees, and
other charges because adding orders
yielding Flag AA, like Flags MM and
MT, are designed to encourage Members
to add liquidity at the midpoint of the
national best bid or offer (‘‘NBBO’’) to
the EDGX Book 7 each month. The
Exchange appends Flag AA to buy and
sell MidPoint Match Orders that
inadvertently match against each other
and share the same MPID (Member
shares both sides of the trade). MidPoint
Match Orders yielding Flag AA would
continue to be charged a rate of $0.0012
per share and only the liquidity added
at the midpoint of the NBBO (Flag MM)
in this tier is not charged a fee. Both
added and removed liquidity in Flags
AA, MM and MT would be counted
towards achieving the tier’s ADV
threshold. The Exchange believes that
Members utilizing MidPoint Match
Orders that add liquidity at the
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 EDGX’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 adding
orders yielding Flag AA to the
calculation of the ADV threshold
required to meet the MidPoint Match
Volume Tier would increase intermarket
competition because it would lead to
more competition for orders that seek
liquidity at the midpoint of the NBBO.
The Exchange believes that its proposal
would neither increase nor decrease
intramarket competition because the
MidPoint Match Volume Tier would
continue to apply uniformly to all
Members and the ability of some
Members to meet the tier would only
benefit other Members by contributing
to increased liquidity at the midpoint of
the NBBO and better market quality at
the Exchange.
4 As defined in Exchange Rule 11.5(c)(7), the
Midpoint Match Order is an order with an
instruction to execute it at the midpoint of the
NBBO.
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(4).
7 The ‘‘EDGX Book’’ is defined as ‘‘the System’s
electronic file of orders.’’ See Exchange Rule 1.5(d).
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
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E:\FR\FM\22OCN1.SGM
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62780
Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Notices
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 8 and Rule 19b–4(f)(2) 9
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–
EDGX–2013–38 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–EDGX–2013–38. 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
8 15
9 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4 (f)(2).
VerDate Mar<15>2010
21:08 Oct 21, 2013
Jkt 232001
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGX–
2013–38 and should be submitted on or
before November 12, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24661 Filed 10–21–13; 8:45 am]
6, 2013, pursuant to Section 19(b)(2) of
the Act,5 the MSRB granted an
extension of time for the Commission to
act on the filing until October 22, 2013.
The MSRB submitted a response to
comments on September 6, 2013.6 On
October 4, 2013, the Exchange withdrew
the proposed rule change (SR–MSRB–
2013–06).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24629 Filed 10–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70673; File No. SR–Phlx–
2013–99]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70617; File No. SR–MSRB–
2013–06]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Withdrawal of
Proposed Rule Change to Amend
MSRB Rule A–3, on Membership on
the Board, To Modify the Standard of
Independence for Public Board
Members
October 7, 2013.
On July 3, 2013, the Municipal
Securities Rulemaking Board (‘‘MSRB’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ‘‘Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change consisting of amendments to
MSRB Rule A–3 to modify the standard
of independence for public Board
members. The proposed rule change
was published for comment in the
Federal Register on July 24, 2013.3 The
Commission received nine comment
letters on the proposal.4 On September
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 70004 (July
18, 2013), 78 FR 44607.
4 See letters to Elizabeth M. Murphy, Secretary,
Commission, from Jeanine Rodgers Caruso, CIPFA,
President, National Association of Independent
Public Finance Advisors, dated August 14, 2013;
Barbara Roper, Director of Investor Protection,
Consumer Federation of America, dated August 14,
2013; Kerry Korpi, Director of Research and
Collective Bargaining, American Federation of
State, County and Municipal Employees, dated
August 14, 2013; Dustin T. McDonald, Director,
1 15
PO 00000
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Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Clarifying
Rule 1014 Regarding Daily Quoting
Obligations
October 11, 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 October
2, 2013, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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 is filing with the
Commission a proposal to clarify that
Rule 1014 (Obligations and Restrictions
Federal Liaison Center, Government Finance
Officers Association, dated August 14, 2013;
Americans for Financial Reform, dated August 14,
2013; Lisa S. Good, Executive Director, National
Federation of Municipal Analysts, dated August 26,
2013; Gerald Gold, dated September 4, 2013;
Jeanine Rodgers Caruso, CIPFA, President, National
Association of Independent Public Finance
Advisors, dated September 12, 2013; and Dorothy
Donohue, Deputy General Counsel—Securities
Regulation, Investment Company Institute, dated
September 18, 2013.
5 15 U.S.C. 78s(b)(2).
6 See letter to Elizabeth M. Murphy, Secretary,
Commission, from Gary L. Goldsholle, General
Counsel, MSRB, dated September 6, 2013.
7 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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]]>Agencies
[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62778-62780]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24661]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70669; File No. SR-EDGX-2013-38]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Amendments to the EDGX Exchange, Inc. Fee Schedule
October 11, 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 October 2, 2013, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule
[[Page 62779]]
change as described in Items I, II and III below, which items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its fees and rebates applicable to
Members \3\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c)
(``Fee Schedule'') to add orders yielding Flag AA to the calculation of
the average daily trading (``ADV'') threshold required to meet the
MidPoint Match Volume Tier. 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 add orders
yielding Flag AA to the calculation of the ADV threshold required to
meet the MidPoint Match Volume Tier. Footnote 3 of the Fee Schedule
currently provides that Members may qualify for the MidPoint Match
Volume Tier and not be charged a fee for orders that yield Flag MM on
EDGX if they add and/or remove an ADV of at least 2,500,000 shares on a
daily basis, measured monthly, on EDGX, yielding flags MM (adds
liquidity to MidPoint Match using the Midpoint Match order type \4\)
and/or MT (removes liquidity from MidPoint Match using MidPoint Match
order type). The Exchange proposes to add orders yielding Flag AA
(MidPoint Match Cross (same MPID)) to the calculation of the ADV
threshold required to meet the MidPoint Match Volume Tier. The Exchange
appends Flag AA to buy and sell MidPoint Match Orders that
inadvertently match against each other and share the same MPID (Member
shares both sides of the trade). MidPoint Match Orders yielding Flag AA
would continue to be charged a rate of $0.0012 per share. The remainder
of the criteria required to meet the tier as well as the rate offered
by the tier would remain unchanged.
---------------------------------------------------------------------------
\4\ As defined in Exchange Rule 11.5(c)(7), the Midpoint Match
Order is an order with an instruction to execute it at the midpoint
of the NBBO.
---------------------------------------------------------------------------
The Exchange proposes to implement these amendments to its Fee
Schedule on October 2, 2013.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\5\ in general, and
furthers the objectives of Section 6(b)(4),\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that adding orders yielding Flag AA to the
calculation of the ADV threshold required to meet the MidPoint Match
Volume Tier represents an equitable allocation of reasonable dues,
fees, and other charges because adding orders yielding Flag AA, like
Flags MM and MT, are designed to encourage Members to add liquidity at
the midpoint of the national best bid or offer (``NBBO'') to the EDGX
Book \7\ each month. The Exchange appends Flag AA to buy and sell
MidPoint Match Orders that inadvertently match against each other and
share the same MPID (Member shares both sides of the trade). MidPoint
Match Orders yielding Flag AA would continue to be charged a rate of
$0.0012 per share and only the liquidity added at the midpoint of the
NBBO (Flag MM) in this tier is not charged a fee. Both added and
removed liquidity in Flags AA, MM and MT would be counted towards
achieving the tier's ADV threshold. The Exchange believes that Members
utilizing MidPoint Match Orders that add liquidity at the midpoint of
the NBBO may receive the benefit of price improvement, and including
orders that yield Flag AA to the calculation of the ADV threshold of
the MidPoint Match Volume Tier would be a reasonable means by which to
further encourage the use of such orders. In addition, the Exchange
believes that by encouraging the use of MidPoint Match Orders, Members
seeking price improvement would be more motivated to direct their
orders to EDGX because they would have a heightened expectation of the
availability of liquidity at the midpoint of the NBBO. In addition, the
Exchange also believes that the proposed amendment to the MidPoint
Match Volume Tier is non-discriminatory because it applies uniformly to
all Members.
---------------------------------------------------------------------------
\7\ The ``EDGX Book'' is defined as ``the System's electronic
file of orders.'' See Exchange Rule 1.5(d).
---------------------------------------------------------------------------
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 EDGX'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 adding orders yielding Flag AA to the
calculation of the ADV threshold required to meet the MidPoint Match
Volume Tier would increase intermarket competition because it would
lead to more competition for orders that seek liquidity at the midpoint
of the NBBO. The Exchange believes that its proposal would neither
increase nor decrease intramarket competition because the MidPoint
Match Volume Tier would continue to apply uniformly to all Members and
the ability of some Members to meet the tier would only benefit other
Members by contributing to increased liquidity at the midpoint of the
NBBO and better market quality at the Exchange.
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
[[Page 62780]]
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 \8\ and Rule 19b-4(f)(2) \9\ 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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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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-EDGX-2013-38 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-EDGX-2013-38. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-EDGX-2013-38 and should be
submitted on or before November 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24661 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P
