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, 27021-27023 [2014-10773]

Download as PDF Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 for 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 8 and Rule 19b–4(f)(6) thereunder.9 A proposed rule change filed under Rule 19b–4(f)(6) 10 normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b–4(f)(6)(iii) 11 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will help to ensure that market participants are properly informed as to the underlying securities eligible for trading of mini options contracts on the Exchange. For this reason, the Commission designates the proposed rule change to be operative upon filing.12 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views and 8 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. 10 17 CFR 240.19b–4(f)(6). 11 17 CFR 240.19b–4(f)(6)(iii). 12 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). emcdonald on DSK67QTVN1PROD with NOTICES 9 17 VerDate Mar<15>2010 18:00 May 09, 2014 Jkt 232001 27021 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: SECURITIES AND EXCHANGE COMMISSION 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– NYSEARCA–2014–50 on the subject line. 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 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–NYSEARCA–2014–50. 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– NYSEARCA–2014–50 and should be submitted on or before June 2, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–10775 Filed 5–9–14; 8:45 am] BILLING CODE 8011–01–P 13 17 PO 00000 CFR 200.30–3(a)(12). Frm 00089 Fmt 4703 Sfmt 4703 [Release No. 34–72100; File No. SR–EDGA– 2014–13] May 6, 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 May 1, 2014, EDGA Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its fees and rebates applicable to Members 3 of the Exchange pursuant to EDGA Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to: (i) Amend Flag RC, which routes to the National Stock Exchange, Inc. (‘‘NSX’’) and adds liquidity; and (ii) delete Flag RW, which routes to the CBOE Stock Exchange, LLC (‘‘CBSX’’) and adds liquidity. 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 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 E:\FR\FM\12MYN1.SGM 12MYN1 27022 Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Notices 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: (i) Amend Flag RC, which routes to the NSX and adds liquidity; and (ii) delete Flag RW, which routes to the CBSX and adds liquidity. Flag RC In securities priced at or above $1.00, the Exchange currently charges a fee of $0.0018 per share for Members’ orders that yield Flag RC, which routes to the NSX and adds liquidity. The Exchange proposes to amend its Fee Schedule to decrease the fee to $0.0001 per share for Members’ orders that yield Flag RC. The proposed change is in response to NSX’s May 2014 fee change where the NSX decreased its fee to $0.0001 per share for orders that add liquidity on the NSX.4 The fee for orders that yield Flag RC represents a pass through of the rate that Direct Edge ECN LLC (d/b/a DE Route) (‘‘DE Route’’), the Exchange’s affiliated routing broker-dealer, is charged for routing orders that add liquidity to NSX when it does not qualify for a volume tiered reduced fee. When DE Route routes to and adds liquidity on the NSX, it will be charged a standard rate of $0.0001 per share.5 DE Route will pass through this rate on NSX to the Exchange and the Exchange, in turn, will pass through this rate to its Members. emcdonald on DSK67QTVN1PROD with NOTICES Flag RW The Exchange proposes to amend its Fee Schedule to delete Flag RW in response to CBSX’s announcement that it will cease market operations and its last day of trading will be Wednesday, April 30, 2014.6 In securities priced at or above $1.00, the Exchange currently charges a fee of $0.0030 per share in securities priced at or above $1.00 and 0.30% of the trade’s dollar value in securities priced below $1.00 for Members’ orders that yield Flag RW, which routes to the CBSX and adds liquidity. The fee for orders that yield 4 See NSX, Information Circular 14–043 dated April 25, 2014, available at https://www.nsx.com/ resources/content/7/documents/ InformationCircular14-043.pdf. 5 The Exchange notes that to the extent DE Route does or does not achieve any volume tiered reduced fee on NSX, its rate for Flag RC will not change. 6 See CBSX, Regulatory Circular RG14–046 dated April 2, 2014, available at https://www.cbsx.com/ publish/RegCir/RG14-046.pdf. VerDate Mar<15>2010 18:00 May 09, 2014 Jkt 232001 Flag RW represents a pass through of the rate that DE Route, the Exchange’s affiliated routing broker-dealer, is charged for routing orders that add liquidity to CBSX. As of May 1, 2014, the Exchange, via DE Route, will no longer be able to route orders to CBSX because it ceased operations, and, therefore, proposes to remove Flag RW from its Fee Schedule. Implementation Date The Exchange proposes to implement these amendments to its Fee Schedule on May 1, 2014. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,7 in general, and furthers the objectives of Section 6(b)(4),8 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. Flag RC The Exchange believes that its proposal to decrease the fee to $0.0001 per share for Members’ orders that yield Flag RC 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 NSX through DE Route. In May 2014, NSX decreased its fee to $0.0001 per share for Members’ orders that add liquidity.9 Therefore, the Exchange believes that the proposed change to Flag RC to decrease its fee to $0.0001 per share for orders that yield Flag RC is equitable and reasonable because it accounts for the pricing change on the NSX. In addition, the proposal allows the Exchange to charge its Members a pass-through rate for orders that are routed to the NSX and add liquidity. Furthermore, 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. Flag RW The Exchange believes that its proposal to delete Flag RW in its Fee Schedule represents an equitable allocation of reasonable dues, fees, and 7 15 U.S.C. 78f. U.S.C. 78f(b)(4). 9 See NSX, Information Circular 14–043 dated April 25, 2014, available at https://www.nsx.com/ resources/content/7/documents/ InformationCircular14-043.pdf. 8 15 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 other charges among Members and other persons using its facilities. The proposed change is in response to CBSX’s announcement that it will cease market operations and its last day of trading will Wednesday, April 30, 2014.10 As of May 1, 2014, the Exchange, via DE Route, will no longer be able to route orders to CBSX and, therefore, proposes to remove Flag RW from its Fee Schedule. The Exchange believes that the proposed amendment is intended to make the Fee Schedule clearer and less confusing for investors and eliminate potential investor confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes its proposed amendments to its Fee Schedule would 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 the proposed change represents 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 change will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. Flag RC The Exchange believes that its proposal to pass through a fee of $0.0001 per share for Members’ orders that yield Flag RC would increase intermarket competition because it offers customers an alternative means to route to NSX for the same price as entering orders on NSX directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. Flag RW The Exchange believes that its proposal to delete Flag RW in its Fee Schedule would not affect intermarket nor intramarket competition because this change is not designed to amend any fee or rebate or alter the manner in 10 See CBSX, Regulatory Circular RG14–046 dated April 2, 2014, available at https://www.cbsx.com/ publish/RegCir/RG14-046.pdf. E:\FR\FM\12MYN1.SGM 12MYN1 Federal Register / Vol. 79, No. 91 / Monday, May 12, 2014 / Notices which the Exchange assesses fees or calculates rebates. It is simply proposed in response to CBSX ceasing market operations trading on May 1, 2014. 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 11 and Rule 19b–4(f)(2) 12 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: 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– 2014–13, and should be submitted on or before June 2, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–10773 Filed 5–9–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–2014–13 on the subject line. [Release No. 34–72099; File No. SR–BATS– 2014–007] 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–2014–13. 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 May 6, 2014. Self-Regulatory Organizations; BATS Exchange, Inc.; Order Granting Approval of a Proposed Rule Change To List and Trade Shares of Certain Funds of the ProShares Trust I. Introduction On March 13, 2014, BATS Exchange, Inc. (‘‘Exchange’’ or ‘‘BATS’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares (‘‘Shares’’) of certain funds of the ProShares Trust (‘‘Trust’’) under BATS Rule 14.11(i). The proposed rule change was published for comment in the Federal 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4 (f)(2). VerDate Mar<15>2010 18:00 May 09, 2014 1 15 Jkt 232001 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 27023 Register on March 24, 2014.3 The Commission received no comments on the proposal. This order grants approval of the proposed rule change. II. Description of the Proposal The Exchange proposes to list and trade the Shares of the ProShares CDS North American HY Credit ETF, ProShares CDS Short North American HY Credit ETF, ProShares CDS North American IG Credit ETF, ProShares CDS Short North American IG Credit ETF, ProShares CDS European HY Credit ETF, ProShares CDS Short European HY Credit ETF, ProShares CDS European IG Credit ETF, and the ProShares CDS Short European IG Credit ETF (individually, ‘‘Fund,’’ and collectively, ‘‘Funds’’) under BATS Rule 14.11(i), which governs the listing and trading of Managed Fund Shares on the Exchange. The Shares will be offered by the Trust, which was established as a Delaware statutory trust on May 29, 2002. The Trust is registered with the Commission as an open-end investment company and has filed a registration statement on behalf of the Funds on Form N–1A (‘‘Registration Statement’’) with the Commission.4 ProShare Advisors LLC is the investment adviser (‘‘Adviser’’) to the Funds. JPMorgan Chase Bank, National Association is the administrator, custodian, fund account agent, index receipt agent, and transfer agent for the Trust. SEI Investments Distribution Co. serves as the distributor for the Trust. The Exchange represents that the Adviser is not a registered broker-dealer, but is currently affiliated with a broker-dealer, and that Adviser personnel who make decisions regarding the Funds’ portfolios are subject to procedures designed to prevent the use and dissemination of material, non-public information regarding the Funds’ portfolios.5 The Exchange has made the following representations and statements in describing the Funds and their 3 See Securities Exchange Act Release No. 71736 (March 18, 2014), 79 FR 16073 (‘‘Notice’’). 4 See Registration Statement on Form N–1A for the Trust, dated May 31, 2013 (File Nos. 333–89822 and 811–21114). See also Investment Company Act Release No. 30562 (June 18, 2013) (File No. 812– 14041). 5 See BATS Rule 14.11(i)(7). The Exchange further represents that in the event that (a) the Adviser becomes a broker-dealer or newly affiliated with a broker-dealer, or (b) any new adviser or subadviser is a broker-dealer or becomes affiliated with a broker-dealer, it will implement a fire wall with respect to its relevant personnel or such brokerdealer affiliate, as applicable, regarding access to information concerning the composition and changes to the portfolio, and will be subject to procedures designed to prevent the use and dissemination of material, non-public information regarding such portfolio. E:\FR\FM\12MYN1.SGM 12MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 91 (Monday, May 12, 2014)]
[Notices]
[Pages 27021-27023]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10773]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72100; File No. SR-EDGA-2014-13]

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

May 6, 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 May 1, 2014, 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: (i) Amend Flag RC, which routes to the National
Stock Exchange, Inc. (``NSX'') and adds liquidity; and (ii) delete Flag
RW, which routes to the CBOE Stock Exchange, LLC (``CBSX'') and adds
liquidity. 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

[[Page 27022]]

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: (i) Amend Flag
RC, which routes to the NSX and adds liquidity; and (ii) delete Flag
RW, which routes to the CBSX and adds liquidity.
Flag RC
In securities priced at or above $1.00, the Exchange currently
charges a fee of $0.0018 per share for Members' orders that yield Flag
RC, which routes to the NSX and adds liquidity. The Exchange proposes
to amend its Fee Schedule to decrease the fee to $0.0001 per share for
Members' orders that yield Flag RC. The proposed change is in response
to NSX's May 2014 fee change where the NSX decreased its fee to $0.0001
per share for orders that add liquidity on the NSX.\4\ The fee for
orders that yield Flag RC represents a pass through of the rate that
Direct Edge ECN LLC (d/b/a DE Route) (``DE Route''), the Exchange's
affiliated routing broker-dealer, is charged for routing orders that
add liquidity to NSX when it does not qualify for a volume tiered
reduced fee. When DE Route routes to and adds liquidity on the NSX, it
will be charged a standard rate of $0.0001 per share.\5\ DE Route will
pass through this rate on NSX to the Exchange and the Exchange, in
turn, will pass through this rate to its Members.
---------------------------------------------------------------------------

\4\ See NSX, Information Circular 14-043 dated April 25, 2014,
available at https://www.nsx.com/resources/content/7/documents/InformationCircular14-043.pdf.
\5\ The Exchange notes that to the extent DE Route does or does
not achieve any volume tiered reduced fee on NSX, its rate for Flag
RC will not change.
---------------------------------------------------------------------------

Flag RW
The Exchange proposes to amend its Fee Schedule to delete Flag RW
in response to CBSX's announcement that it will cease market operations
and its last day of trading will be Wednesday, April 30, 2014.\6\ In
securities priced at or above $1.00, the Exchange currently charges a
fee of $0.0030 per share in securities priced at or above $1.00 and
0.30% of the trade's dollar value in securities priced below $1.00 for
Members' orders that yield Flag RW, which routes to the CBSX and adds
liquidity. The fee for orders that yield Flag RW represents a pass
through of the rate that DE Route, the Exchange's affiliated routing
broker-dealer, is charged for routing orders that add liquidity to
CBSX. As of May 1, 2014, the Exchange, via DE Route, will no longer be
able to route orders to CBSX because it ceased operations, and,
therefore, proposes to remove Flag RW from its Fee Schedule.
---------------------------------------------------------------------------

\6\ See CBSX, Regulatory Circular RG14-046 dated April 2, 2014,
available at https://www.cbsx.com/publish/RegCir/RG14-046.pdf.
---------------------------------------------------------------------------

Implementation Date
The Exchange proposes to implement these amendments to its Fee
Schedule on May 1, 2014.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\7\ in general, and
furthers the objectives of Section 6(b)(4),\8\ 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.
---------------------------------------------------------------------------

\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Flag RC
The Exchange believes that its proposal to decrease the fee to
$0.0001 per share for Members' orders that yield Flag RC 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 NSX through DE Route. In May 2014, NSX decreased its
fee to $0.0001 per share for Members' orders that add liquidity.\9\
Therefore, the Exchange believes that the proposed change to Flag RC to
decrease its fee to $0.0001 per share for orders that yield Flag RC is
equitable and reasonable because it accounts for the pricing change on
the NSX. In addition, the proposal allows the Exchange to charge its
Members a pass-through rate for orders that are routed to the NSX and
add liquidity. Furthermore, 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.
---------------------------------------------------------------------------

\9\ See NSX, Information Circular 14-043 dated April 25, 2014,
available at https://www.nsx.com/resources/content/7/documents/InformationCircular14-043.pdf.
---------------------------------------------------------------------------

Flag RW
The Exchange believes that its proposal to delete Flag RW in its
Fee Schedule represents an equitable allocation of reasonable dues,
fees, and other charges among Members and other persons using its
facilities. The proposed change is in response to CBSX's announcement
that it will cease market operations and its last day of trading will
Wednesday, April 30, 2014.\10\ As of May 1, 2014, the Exchange, via DE
Route, will no longer be able to route orders to CBSX and, therefore,
proposes to remove Flag RW from its Fee Schedule. The Exchange believes
that the proposed amendment is intended to make the Fee Schedule
clearer and less confusing for investors and eliminate potential
investor confusion, thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
---------------------------------------------------------------------------

\10\ See CBSX, Regulatory Circular RG14-046 dated April 2, 2014,
available at https://www.cbsx.com/publish/RegCir/RG14-046.pdf.
---------------------------------------------------------------------------

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

The Exchange believes its proposed amendments to its Fee Schedule
would 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 the proposed change represents 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 change will impair the ability of Members or competing venues
to maintain their competitive standing in the financial markets.
Flag RC
The Exchange believes that its proposal to pass through a fee of
$0.0001 per share for Members' orders that yield Flag RC would increase
intermarket competition because it offers customers an alternative
means to route to NSX for the same price as entering orders on NSX
directly. The Exchange believes that its proposal would not burden
intramarket competition because the proposed rate would apply uniformly
to all Members.
Flag RW
The Exchange believes that its proposal to delete Flag RW in its
Fee Schedule would not affect intermarket nor intramarket competition
because this change is not designed to amend any fee or rebate or alter
the manner in

[[Page 27023]]

which the Exchange assesses fees or calculates rebates. It is simply
proposed in response to CBSX ceasing market operations trading on May
1, 2014.

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 \11\ and Rule 19b-4(f)(2) \12\ 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.
---------------------------------------------------------------------------

\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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-2014-13 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-2014-13. 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-2014-13, and should be
submitted on or before June 2, 2014.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10773 Filed 5-9-14; 8:45 am]
BILLING CODE 8011-01-P

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