Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend EDGA Rule 11.5 Regarding the Route Peg Order, 26493-26495 [2014-10542]
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Federal Register / Vol. 79, No. 89 / Thursday, May 8, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
written communications relating to the
proposed rules 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 such filing will also
be available for inspection and copying
at the principal office of the PCAOB. All
comments received will be posted
without charge; we do 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 No. PCAOB–2013–
03 and should be submitted on or before
May 29, 2014.
VI. Conclusion
The Commission has carefully
reviewed and considered the Proposed
Rules, as modified by Amendment No.
1, and the information submitted
therewith by the PCAOB, including the
PCAOB’s EGC analysis. In connection
with the PCAOB’s filing and the
Commission’s review,
A. The Commission finds that the
Proposed Rules, as modified by
Amendment No. 1, are consistent with
the requirements of the Sarbanes-Oxley
Act and the securities laws and are
necessary or appropriate in the public
interest or for the protection of
investors; and
B. Separately, the Commission finds
that the application of the Proposed
Rules, as modified by Amendment No.
1, to EGC audits as applicable is
necessary or appropriate in the public
interest, after considering the protection
of investors and whether the action will
promote efficiency, competition, and
capital formation.
Additionally, the Commission finds
good cause to approve the filing, as
modified by Amendment No. 1 to the
Proposed Rules, prior to the thirtieth
day after the date of the publication of
notice of the filing thereof in the
Federal Register. The content of
Amendment No. 1, which does not raise
any novel issues, makes one technical
amendment to the proposed rule to
correct an inadvertent omission and one
technical amendment to update a crossreference in a Form that would become
outdated if the proposed rules in the
original rule filing are approved by the
Commission. Accelerated approval
would allow the PCAOB to update its
rules immediately, thus providing users
with greater clarity and certainty.
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Accordingly, the Commission finds that
good cause exists to approve the filing,
as modified by Amendment No. 1, on an
accelerated basis.
It is therefore ordered, pursuant to
Section 107 of the Act and Section
19(b)(2) of the Exchange Act, that the
Proposed Rules (File No. PCAOB–2013–
03), as modified by amendment No. 1,
be and hereby are approved on an
accelerated basis.
By the Commission.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10543 Filed 5–7–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72089; File No. SR–EDGA–
2014–12]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend EDGA Rule
11.5 Regarding the Route Peg Order
May 2, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 29,
2014, EDGA Exchange, Inc. (‘‘EDGX’’ or
‘‘Exchange’’) 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 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
Route Peg Order under Rule 11.5(c)(14)
to permit: (i) Executions against routable
orders that are equal to or less than the
aggregate size of the Route Peg Order
interest available at that price; and (ii)
Users 3 to add a minimum execution
quantity instruction. 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
1 15
U.S.C.78s(b)(1).
CFR 240.19b–4.
3 The term ‘‘User’’ is defined as ‘‘any Member or
Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3.’’ See
Exchange Rule 1.5(ee).
2 17
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26493
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Route Peg Order under Rule 11.5(c)(14)
to permit: (i) Executions against routable
orders that are equal to or less than the
aggregate size of the Route Peg Order
interest available at that price, which
would replace the current requirement
that routable orders be equal to or less
than the size of an individual Route Peg
Order; and (ii) Users to add a minimum
execution quantity instruction.
A Route Peg Order is a non-displayed
limit order that posts to the EDGA Book,
and thereafter is eligible for execution at
the national best bid (‘‘NBB’’) for buy
orders and national best offer (‘‘NBO’’)
for sell orders against routable orders
that are equal to or less than the size of
the Route Peg Order.4 Route Peg Orders
are passive, resting orders on the EDGA
Book 5 and do not take liquidity. Route
Peg Orders may be entered, cancelled,
and cancelled/replaced prior to and
during Regular Trading Hours.6 Route
Peg Orders are eligible for execution in
a given security during Regular Trading
Hours, except that, even after the
commencement of Regular Trading
Hours, Route Peg Orders are not eligible
for execution (1) in the opening cross,
and (2) until such time that regular
session orders in that security can be
posted to the EDGA Book. A Route Peg
Order does not execute at a price that
is inferior to a Protected Quotation, and
is not be permitted to execute if the
4 See Securities Exchange Act Release No. 67726
(August 24, 2012), 77 FR 52771 (August 30, 2012)
(Order Approving the Route Peg Order).
5 The ‘‘EDGA Book’’ is defined as ‘‘the System’s
electronic file of orders.’’ See Exchange Rule 1.5(d).
6 ‘‘Regular Trading Hours’’ is defined as ‘‘the time
between 9:30 a.m. and 4:00 p.m. Eastern Time.’’ See
Exchange Rule 1.5(y).
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Federal Register / Vol. 79, No. 89 / Thursday, May 8, 2014 / Notices
NBBO is locked or crossed. Any and all
remaining, unexecuted Route Peg
Orders are cancelled at the conclusion
of Regular Trading Hours.
Aggregate Size
As noted above, Route Peg Orders will
currently only trade with routable
orders that are equal to or smaller in
quantity than the order quantity of an
individual Route Peg Order. The
Exchange proposes to amend the
operation of the Route Peg Order to
permit it to execute against routable
orders that are equal to or less than the
aggregate size of the Route Peg Order
interest available at that price. The
Exchange believes this change would
incentivize Users seeking large size
executions to route orders to the
Exchange by increasing opportunities
for executions against Route Peg Orders.
This proposed change to the Route Peg
Order is similar to the operation of the
Nasdaq Stock Market LLC’s (‘‘Nasdaq’’)
Supplemental Order and NYSE Arca,
Inc.’s (‘‘NYSE Arca’’) Tracking Order,
which both only execute if the size of
the incoming order is less than or equal
to the aggregate size of Supplemental
Order or Tracking Order interest
available at that price.7
emcdonald on DSK67QTVN1PROD with NOTICES
Minimum Execution Quantity
The Exchange also proposes to amend
the Route Peg Order under Rule 11.5 to
add optional functionality to allow
Users to designate a minimum
execution quantity. As proposed, a
minimum execution quantity on a Route
Peg order will no longer apply where
the number of shares remaining after a
partial execution are less than the
minimum execution quantity. This
proposed change is similar to the
operation of NYSE Arca, Inc.’s Tracking
Order, which permits Tracking Orders
to include a minimum size
requirement.8 The Exchange believes
that providing Users with the option to
designate a minimum quantity for Route
Peg Orders will promote the entry of
liquidity at the Exchange because Users
entering such orders will be assured of
obtaining a larger sized execution. The
Exchange believes that the proposed
7 See Nasdaq Rules 4751(f)(14), 4751(g) and
4757(a)(1)(D); see also NYSE Arca Rule 7.31(f).
8 On NYSE Arca, if the Tracking Order with a
minimum size requirement is executed but not
exhausted and the remaining portion of the
Tracking Order is less than the minimum size
requirement, NYSE Arca would cancel the Tracking
Order. See NYSE Arca Rule 7.31(f). See also
Securities Exchange Act Release No. 71366 (January
22, 2014), 79 FR 4515 (January 28, 2014) (SR–
NYSEArca–2014–01) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Amending NYSE Arca Equities Rule 7.31 to Add a
Minimum Execution Size Designation for Tracking
Orders).
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rule change could attract Users that are
seeking larger executions to enter Route
Peg Orders because by designating a
minimum quantity, the submitting User
would be assured that they are not
traded against by smaller-sized interest.
Implementation Date
The Exchange will announce the
effective date of the proposed rule
change in a Trading Notice to be
published no later than 30 days
following publication of the proposed
rule change by the Commission.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act 10
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
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.
Aggregate Size
The Exchange believes that the
proposal to permit executions against
routable orders that are equal to or less
than the aggregate size of the Route Peg
Order interest available at that price
would remove impediments to and
perfect the mechanism of a free and
open market and protect investors and
the public interest because it would
incentivize Users seeking large size
executions to route orders to the
Exchange by increasing opportunities
for executions against Route Peg Orders
in a manner similar to existing
functionality available on Nasdaq and
NYSE Arca.11 The proposed rule change
also encourages market participants to
post liquidity at the NBBO on the
Exchange through the use of Route Peg
Orders, thereby promoting just and
equitable principles of trade and
removing impediments to and
perfecting the mechanism of a free and
open market and national market
system. Moreover, the proposed rule
changes would protect investors and the
public interest by increasing the
probability of an execution on the
Exchange at the NBBO in the event that
the order would otherwise be shipped to
an external destination and potentially
miss an execution at the NBBO while in
transit. Lastly, the Exchange does not
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
11 See supra note 8 and accompanying text.
10 15
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Fmt 4703
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believe that this will permit unfair
discrimination among customers,
brokers, or dealers because it will be
available to all Users.
Minimum Execution Quantity
The Exchange also believes its
proposal to amend the Route Peg Order
under Rule 11.5 to add optional
functionality to allow Users to designate
a minimum execution quantity removes
impediments to and perfects the
mechanism of a free and open market
and protects investors and the public
interest because it would provide an
incentive for Members seeking largersized executions both to post liquidity
at the Exchange using this feature and
to route larger-sized orders to the
Exchange because of the potential for an
execution against such liquidity. The
Exchange further believes that adding
an optional minimum quantity would
remove impediments to and perfect the
mechanism of a free and open market
system because the proposed
functionality is similar to functionality
available at the NYSE Arca.12 The
Exchange believes it is appropriate to
provide an option for Users seeking to
provide such liquidity to not only
designate a minimum execution
quantity, but for a minimum execution
quantity on a Route Peg order to no
longer apply where the number of
shares remaining after a partial
execution are less than the minimum
execution quantity. Doing so would
permit Users to continue to have their
Route Peg Orders eligible for execution
in such circumstances. In such case,
Users will have the option to cancel
their Route Peg Order if they wish.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes that the
proposal will promote competition by
enhancing the value of the Exchange’s
Route Peg Order by mirroring the
function of similar order types offered
by Nasdaq and NYSE Arca.13
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.
12 See
supra note 9 [sic] and accompanying text.
supra notes 8 [sic] and 9 [sic] and
accompanying text.
13 See
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Federal Register / Vol. 79, No. 89 / Thursday, May 8, 2014 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 14 and Rule
19b–4(f)(6) thereunder.15 Because the
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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
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. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 16 of the Act to
determine whether the proposed rule
change 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:
emcdonald on DSK67QTVN1PROD with NOTICES
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–2014–12 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–EDGA–2014–12. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
14 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
16 15 U.S.C. 78s(b)(2)(B).
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 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
publicly available. All submissions
should refer to File Number SR–EDGA–
2014–12 and should be submitted on or
before May 29, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–10542 Filed 5–7–14; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #13959 and #13960]
Mississippi Disaster #MS–00072
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the State of Mississippi
(FEMA—4175—DR), dated 04/30/2014.
Incident: Severe storms, tornadoes,
and flooding.
Incident Period: 04/28/2014 and
continuing.
Effective Date: 04/30/2014.
Physical Loan Application Deadline
Date: 06/30/2014.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/30/2015.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
SUMMARY:
17:50 May 07, 2014
Administration, Processing And
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
04/30/2014, applications for disaster
loans may be filed at the address listed
above or other locally announced
locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties (Physical Damage and
Economic Injury Loans): Itawamba,
Lee, Lowndes, Madison, Rankin,
Wayne, Winston.
Contiguous Counties (Economic Injury
Loans Only):
Mississippi: Attala, Chickasaw,
Choctaw, Clarke, Clay, Copiah,
Greene, Hinds, Holmes, Jasper,
Jones, Kemper, Leake, Monroe,
Neshoba, Noxubee, Oktibbeha,
Perry, Pontotoc, Prentiss, Scott,
Simpson, Smith, Tishomingo,
Union Yazoo.
Alabama: Choctaw, Franklin, Lamar,
Marion, Pickens, Washington.
The Interest Rates are:
Percent
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
17 17
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CFR 200.30–3(a)(12).
Frm 00094
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4.375
2.188
6.000
4.000
2.625
2.625
4.000
2.625
The number assigned to this disaster
for physical damage is 13959C and for
economic injury is 139600.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2014–10557 Filed 5–7–14; 8:45 am]
15 17
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BILLING CODE 8025–01–P
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]]>Agencies
[Federal Register Volume 79, Number 89 (Thursday, May 8, 2014)]
[Notices]
[Pages 26493-26495]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10542]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72089; File No. SR-EDGA-2014-12]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
EDGA Rule 11.5 Regarding the Route Peg Order
May 2, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 29, 2014, EDGA Exchange, Inc. (``EDGX'' or ``Exchange'')
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 Exchange. 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.down
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Route Peg Order under Rule
11.5(c)(14) to permit: (i) Executions against routable orders that are
equal to or less than the aggregate size of the Route Peg Order
interest available at that price; and (ii) Users \3\ to add a minimum
execution quantity instruction. All of the changes described herein are
applicable to EDGA Members.
---------------------------------------------------------------------------
\3\ The term ``User'' is defined as ``any Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
---------------------------------------------------------------------------
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Route Peg Order under Rule
11.5(c)(14) to permit: (i) Executions against routable orders that are
equal to or less than the aggregate size of the Route Peg Order
interest available at that price, which would replace the current
requirement that routable orders be equal to or less than the size of
an individual Route Peg Order; and (ii) Users to add a minimum
execution quantity instruction.
A Route Peg Order is a non-displayed limit order that posts to the
EDGA Book, and thereafter is eligible for execution at the national
best bid (``NBB'') for buy orders and national best offer (``NBO'') for
sell orders against routable orders that are equal to or less than the
size of the Route Peg Order.\4\ Route Peg Orders are passive, resting
orders on the EDGA Book \5\ and do not take liquidity. Route Peg Orders
may be entered, cancelled, and cancelled/replaced prior to and during
Regular Trading Hours.\6\ Route Peg Orders are eligible for execution
in a given security during Regular Trading Hours, except that, even
after the commencement of Regular Trading Hours, Route Peg Orders are
not eligible for execution (1) in the opening cross, and (2) until such
time that regular session orders in that security can be posted to the
EDGA Book. A Route Peg Order does not execute at a price that is
inferior to a Protected Quotation, and is not be permitted to execute
if the
[[Page 26494]]
NBBO is locked or crossed. Any and all remaining, unexecuted Route Peg
Orders are cancelled at the conclusion of Regular Trading Hours.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 67726 (August 24,
2012), 77 FR 52771 (August 30, 2012) (Order Approving the Route Peg
Order).
\5\ The ``EDGA Book'' is defined as ``the System's electronic
file of orders.'' See Exchange Rule 1.5(d).
\6\ ``Regular Trading Hours'' is defined as ``the time between
9:30 a.m. and 4:00 p.m. Eastern Time.'' See Exchange Rule 1.5(y).
---------------------------------------------------------------------------
Aggregate Size
As noted above, Route Peg Orders will currently only trade with
routable orders that are equal to or smaller in quantity than the order
quantity of an individual Route Peg Order. The Exchange proposes to
amend the operation of the Route Peg Order to permit it to execute
against routable orders that are equal to or less than the aggregate
size of the Route Peg Order interest available at that price. The
Exchange believes this change would incentivize Users seeking large
size executions to route orders to the Exchange by increasing
opportunities for executions against Route Peg Orders. This proposed
change to the Route Peg Order is similar to the operation of the Nasdaq
Stock Market LLC's (``Nasdaq'') Supplemental Order and NYSE Arca,
Inc.'s (``NYSE Arca'') Tracking Order, which both only execute if the
size of the incoming order is less than or equal to the aggregate size
of Supplemental Order or Tracking Order interest available at that
price.\7\
---------------------------------------------------------------------------
\7\ See Nasdaq Rules 4751(f)(14), 4751(g) and 4757(a)(1)(D); see
also NYSE Arca Rule 7.31(f).
---------------------------------------------------------------------------
Minimum Execution Quantity
The Exchange also proposes to amend the Route Peg Order under Rule
11.5 to add optional functionality to allow Users to designate a
minimum execution quantity. As proposed, a minimum execution quantity
on a Route Peg order will no longer apply where the number of shares
remaining after a partial execution are less than the minimum execution
quantity. This proposed change is similar to the operation of NYSE
Arca, Inc.'s Tracking Order, which permits Tracking Orders to include a
minimum size requirement.\8\ The Exchange believes that providing Users
with the option to designate a minimum quantity for Route Peg Orders
will promote the entry of liquidity at the Exchange because Users
entering such orders will be assured of obtaining a larger sized
execution. The Exchange believes that the proposed rule change could
attract Users that are seeking larger executions to enter Route Peg
Orders because by designating a minimum quantity, the submitting User
would be assured that they are not traded against by smaller-sized
interest.
---------------------------------------------------------------------------
\8\ On NYSE Arca, if the Tracking Order with a minimum size
requirement is executed but not exhausted and the remaining portion
of the Tracking Order is less than the minimum size requirement,
NYSE Arca would cancel the Tracking Order. See NYSE Arca Rule
7.31(f). See also Securities Exchange Act Release No. 71366 (January
22, 2014), 79 FR 4515 (January 28, 2014) (SR-NYSEArca-2014-01)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Amending NYSE Arca Equities Rule 7.31 to Add a Minimum
Execution Size Designation for Tracking Orders).
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Implementation Date
The Exchange will announce the effective date of the proposed rule
change in a Trading Notice to be published no later than 30 days
following publication of the proposed rule change by the Commission.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \9\ in general, and furthers the objectives of Section
6(b)(5) of the Act \10\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in 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.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
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Aggregate Size
The Exchange believes that the proposal to permit executions
against routable orders that are equal to or less than the aggregate
size of the Route Peg Order interest available at that price would
remove impediments to and perfect the mechanism of a free and open
market and protect investors and the public interest because it would
incentivize Users seeking large size executions to route orders to the
Exchange by increasing opportunities for executions against Route Peg
Orders in a manner similar to existing functionality available on
Nasdaq and NYSE Arca.\11\ The proposed rule change also encourages
market participants to post liquidity at the NBBO on the Exchange
through the use of Route Peg Orders, thereby promoting just and
equitable principles of trade and removing impediments to and
perfecting the mechanism of a free and open market and national market
system. Moreover, the proposed rule changes would protect investors and
the public interest by increasing the probability of an execution on
the Exchange at the NBBO in the event that the order would otherwise be
shipped to an external destination and potentially miss an execution at
the NBBO while in transit. Lastly, the Exchange does not believe that
this will permit unfair discrimination among customers, brokers, or
dealers because it will be available to all Users.
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\11\ See supra note 8 and accompanying text.
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Minimum Execution Quantity
The Exchange also believes its proposal to amend the Route Peg
Order under Rule 11.5 to add optional functionality to allow Users to
designate a minimum execution quantity removes impediments to and
perfects the mechanism of a free and open market and protects investors
and the public interest because it would provide an incentive for
Members seeking larger-sized executions both to post liquidity at the
Exchange using this feature and to route larger-sized orders to the
Exchange because of the potential for an execution against such
liquidity. The Exchange further believes that adding an optional
minimum quantity would remove impediments to and perfect the mechanism
of a free and open market system because the proposed functionality is
similar to functionality available at the NYSE Arca.\12\ The Exchange
believes it is appropriate to provide an option for Users seeking to
provide such liquidity to not only designate a minimum execution
quantity, but for a minimum execution quantity on a Route Peg order to
no longer apply where the number of shares remaining after a partial
execution are less than the minimum execution quantity. Doing so would
permit Users to continue to have their Route Peg Orders eligible for
execution in such circumstances. In such case, Users will have the
option to cancel their Route Peg Order if they wish.
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\12\ See supra note 9 [sic] and accompanying text.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the Exchange
believes that the proposal will promote competition by enhancing the
value of the Exchange's Route Peg Order by mirroring the function of
similar order types offered by Nasdaq and NYSE Arca.\13\
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\13\ See supra notes 8 [sic] and 9 [sic] and accompanying text.
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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.
[[Page 26495]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
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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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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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-2014-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-EDGA-2014-12. 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 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 publicly available. All
submissions should refer to File Number SR-EDGA-2014-12 and should be
submitted on or before May 29, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10542 Filed 5-7-14; 8:45 am]
BILLING CODE 8011-01-P
