Self-Regulatory Organizations; EDGX Exchange, Inc.; Order Approving Proposed Rule Change To Amend Footnote 4 of the Exchange's Fee Schedule To Permit Members To Designate Their Retail Orders To Be Identified as Retail on the EDGX Book Feed, 32798-32799 [2014-13108]
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32798
Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices
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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 6 and Rule 19b–4(f)(6) 7
thereunder.
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
• 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–
MIAX–2014–20 on the subject line.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
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–MIAX–2014–20. 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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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. The Exchange has satisfied this
requirement.
7 17
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13:59 Jun 05, 2014
Jkt 232001
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–MIAX–
2014–20 and should be submitted on or
before June 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–13107 Filed 6–5–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72292; File No. SR–EDGX–
2014–13]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Order Approving
Proposed Rule Change To Amend
Footnote 4 of the Exchange’s Fee
Schedule To Permit Members To
Designate Their Retail Orders To Be
Identified as Retail on the EDGX Book
Feed
June 2, 2014.
I. Introduction
On April 17, 2014, EDGX Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to permit EDGX Members 3 to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 A Member is defined as ‘‘any registered broker
or dealer, or any person associated with a registered
1 15
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Frm 00108
Fmt 4703
Sfmt 4703
identify their retail orders as ‘‘retail’’ on
the EDGX Book Feed (the ‘‘Proposal’’).
The Proposal was published for
comment in the Federal Register on
April 30, 2014.4 The Commission
received no comments on the Proposal.
This order approves the Proposal.
II. Description of the Proposal
Currently, EDGX Members may
submit their Orders as Non-Attributable
Orders 5 or Attributable Orders.6 If a
Member choses to submit an order as
Attributable, the Exchange includes the
Member’s market participant identifier
(‘‘MPID’’) with that Member’s published
quotations on the EDGX Book Feed.
In the Proposal, the Exchange
proposes to amend Footnote 4 of its Fee
Schedule to permit Members to
designate that their Attributable Retail
Orders be identified as ‘‘Retail’’ 7 on the
EDGX Book Feed, rather than by their
MPID.8 Under the Proposal, a Member
may elect that their Retail Orders be
identified as Retail on an order-by-order
basis or instruct the Exchange to
identify all of the Member’s Retail
Orders as Retail on a port-by-port basis
where that port is also designated as a
Retail Order Port.9 The Exchange will
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
EDGX Rule 1.5(n).
4 See Securities Exchange Act Release No. 72016
(April 24, 2014), 79 FR 24463 (‘‘Notice’’).
5 A Non-Attributable Order is defined as ‘‘[a]n
order that is designated for display (price and size)
on an anonymous basis by the Exchange. See EDGX
Rule 11.5(c)(19).
6 An Attributable Order is defined as, ‘‘[a]n order
that is designated for display (price and size)
including the Member’s market participant
identifier (‘MPID’).’’ See EDGX Rule 11.5(c)(18).
7 Footnote 4 of the Exchange’s Fee Schedule
defines a ‘‘Retail Order’’ as (i) an agency order or
riskless principal order that meets the criteria of
FINRA Rule 5320.03 that originates from a natural
person; (ii) is submitted to EDGX by a Member,
provided that no change is made to the terms of the
order; and (iii) the order does not originate from a
trading algorithm or any other computerized
methodology. Footnote 4 of the Exchange’s Fee
Schedule also provides that Members may
designate orders as Retail Orders on an order-byorder basis or a port level basis by designating
particular FIX ports as Retail Order Ports. Members
must submit a signed written attestation, in a form
prescribed by the Exchange, that they have
implemented policies and procedures that are
reasonably designed to ensure that substantially all
orders designated by the Member as a ‘‘Retail
Order’’ comply with the above requirements. See
Footnote 4 of the Exchange’s Fee Schedule available
at https://www.directedge.com/Trading/
EDGXFeeSchedule.aspx.
8 If a Member instructs the Exchange to identify
all its orders on a Retail Order Port as Retail, the
Member will not be able to designate any Retail
Order from that port instead as an Attributable
Order or as a Non-Attributable Order. See Notice,
79 FR at 24464.
9 A Member’s decision on whether to identify
their Retail Order as Retail under the proposed rule
E:\FR\FM\06JNN1.SGM
06JNN1
Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices
thereby potentially increasing the level
of competition around retail executions,
resulting in better prices for retail
investors.
announce the effective date of the
Proposal in a Trading Notice to be
published no later than 30 days
following approval of the Proposal by
the Commission.10
wreier-aviles on DSK5TPTVN1PROD with NOTICES
III. Discussion
After careful review, the Commission
finds that the Proposal is consistent
with the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange and, in particular, with
Section 6(b) of the Act.11 In particular,
the Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,12 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest; and not be designed to
permit unfair discrimination between
customers, issuers, brokers or dealers.
The Commission believes that the
Proposal is consistent with the Act
because it is reasonably designed to
promote market transparency and to
encourage increased liquidity.
Specifically, the Commission notes that,
according to the Exchange, members
who may otherwise choose to designate
their order as Non-Attributable, and
thereby not include their MPID with
their published quote on the EDGX
Book Feed, would choose to designate
their orders as Retail. Identifying
additional orders as Retail Orders may
encourage Members who wish to
execute against Retail Orders to send
additional Orders to the Exchange,13
change will not impact that Member’s eligibility to
qualify for a rebate under the Retail Order Tier
included in Footnote 4 of the Exchange’s Fee
Schedule. See Notice, 79 FR at 24464.
10 See Notice, 79 FR at 24464.
11 15 U.S.C. 78f(b). In approving this proposed
rule change, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
13 The Exchange notes that it conducted a study
of its execution data from January 1, 2014 to March
31, 2014, which indicated that Members who
represent Retail Orders and utilize Attributable
Orders to include their MPID with their published
quote on the EDGX Book Feed received an 18%
higher execution rate than Members who represent
Retail Orders that elected not to include their MPID
on the EDGX Book Feed via the use of a NonAttributable Order. See Notice, 79 FR at 24464.
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13:59 Jun 05, 2014
Jkt 232001
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,14 that the
proposed rule change (SR–EDGX–2014–
13), is hereby approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–13108 Filed 6–5–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72288; File No. SR–MIAX–
2014–17]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Exchange Rules
515, 519 and 529
June 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 May 20,
2014, Miami International Securities
Exchange LLC (‘‘MIAX’’ 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 is filing a proposal to
amend Exchange Rules 515, 519 and
529.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/filter/
wotitle/rule_filing, at MIAX’s principal
office, and at the Commission’s Public
Reference Room.
14 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
15 17
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
32799
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
Exchange 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
Exchange 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 recently amended
Rules 515 and 529 to establish a new
price protection for market participants
and to allow for immediate routing in an
additional situation.3 The Exchange has
identified several additional
enhancements to the price protections
that the Exchange believes should be
included in the rules prior to
deployment of the new price protection
functionality. The Exchange proposes to
amend Exchange Rules 515, 519 and
529 accordingly.
The Exchange proposes to amend
Rule 515(c)(2) to provide that at the end
of a liquidity refresh pause timer the
initiating order and any same side
joiners received during the timer will
trade against the opposite side interest
in the order in which they were
received at multiple price points up to
the current NBBO. Currently, Rule
515(c) provides that at the end of a
liquidity refresh timer that all orders
and quotes that were not completely
filled or cancelled would be reevaluated
for execution pursuant to Rule 515. The
current language does not contemplate
executions at the end of the liquidity
refresh pause at multiple price points
but only at the original NBBO price
provided that it does not trade inferior
to the current NBBO. Under the current
language, executions at multiple price
points would only be possible through
the iterative reevaluation process
described in Rule 515. The Exchange
believes that the current language is
unnecessarily restrictive for executions
at the end of a liquidity refresh pause
given that Rule 515 now provides for
executions at multiple price points. The
3 See Securities Exchange Act Release Nos. 71634
(February 28, 2014), 79 FR 12713 (March 6, 2014)
(SR–MIAX–2014–08); 71968 (April 17, 2014), 79 FR
22749 (April 23, 2014) (SR–MIAX–2014–08).
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 79, Number 109 (Friday, June 6, 2014)]
[Notices]
[Pages 32798-32799]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13108]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72292; File No. SR-EDGX-2014-13]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Order
Approving Proposed Rule Change To Amend Footnote 4 of the Exchange's
Fee Schedule To Permit Members To Designate Their Retail Orders To Be
Identified as Retail on the EDGX Book Feed
June 2, 2014.
I. Introduction
On April 17, 2014, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to permit EDGX Members \3\ to identify their
retail orders as ``retail'' on the EDGX Book Feed (the ``Proposal'').
The Proposal was published for comment in the Federal Register on April
30, 2014.\4\ The Commission received no comments on the Proposal. This
order approves the Proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ A 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 EDGX Rule 1.5(n).
\4\ See Securities Exchange Act Release No. 72016 (April 24,
2014), 79 FR 24463 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
Currently, EDGX Members may submit their Orders as Non-Attributable
Orders \5\ or Attributable Orders.\6\ If a Member choses to submit an
order as Attributable, the Exchange includes the Member's market
participant identifier (``MPID'') with that Member's published
quotations on the EDGX Book Feed.
---------------------------------------------------------------------------
\5\ A Non-Attributable Order is defined as ``[a]n order that is
designated for display (price and size) on an anonymous basis by the
Exchange. See EDGX Rule 11.5(c)(19).
\6\ An Attributable Order is defined as, ``[a]n order that is
designated for display (price and size) including the Member's
market participant identifier (`MPID').'' See EDGX Rule 11.5(c)(18).
---------------------------------------------------------------------------
In the Proposal, the Exchange proposes to amend Footnote 4 of its
Fee Schedule to permit Members to designate that their Attributable
Retail Orders be identified as ``Retail'' \7\ on the EDGX Book Feed,
rather than by their MPID.\8\ Under the Proposal, a Member may elect
that their Retail Orders be identified as Retail on an order-by-order
basis or instruct the Exchange to identify all of the Member's Retail
Orders as Retail on a port-by-port basis where that port is also
designated as a Retail Order Port.\9\ The Exchange will
[[Page 32799]]
announce the effective date of the Proposal in a Trading Notice to be
published no later than 30 days following approval of the Proposal by
the Commission.\10\
---------------------------------------------------------------------------
\7\ Footnote 4 of the Exchange's Fee Schedule defines a ``Retail
Order'' as (i) an agency order or riskless principal order that
meets the criteria of FINRA Rule 5320.03 that originates from a
natural person; (ii) is submitted to EDGX by a Member, provided that
no change is made to the terms of the order; and (iii) the order
does not originate from a trading algorithm or any other
computerized methodology. Footnote 4 of the Exchange's Fee Schedule
also provides that Members may designate orders as Retail Orders on
an order-by-order basis or a port level basis by designating
particular FIX ports as Retail Order Ports. Members must submit a
signed written attestation, in a form prescribed by the Exchange,
that they have implemented policies and procedures that are
reasonably designed to ensure that substantially all orders
designated by the Member as a ``Retail Order'' comply with the above
requirements. See Footnote 4 of the Exchange's Fee Schedule
available at https://www.directedge.com/Trading/EDGXFeeSchedule.aspx.
\8\ If a Member instructs the Exchange to identify all its
orders on a Retail Order Port as Retail, the Member will not be able
to designate any Retail Order from that port instead as an
Attributable Order or as a Non-Attributable Order. See Notice, 79 FR
at 24464.
\9\ A Member's decision on whether to identify their Retail
Order as Retail under the proposed rule change will not impact that
Member's eligibility to qualify for a rebate under the Retail Order
Tier included in Footnote 4 of the Exchange's Fee Schedule. See
Notice, 79 FR at 24464.
\10\ See Notice, 79 FR at 24464.
---------------------------------------------------------------------------
III. Discussion
After careful review, the Commission finds that the Proposal is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange
and, in particular, with Section 6(b) of the Act.\11\ In particular,
the Commission finds that the proposed rule change is consistent with
Section 6(b)(5) of the Act,\12\ which requires, among other things,
that the rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest; and not be designed to
permit unfair discrimination between customers, issuers, brokers or
dealers.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b). In approving this proposed rule change,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission believes that the Proposal is consistent with the
Act because it is reasonably designed to promote market transparency
and to encourage increased liquidity. Specifically, the Commission
notes that, according to the Exchange, members who may otherwise choose
to designate their order as Non-Attributable, and thereby not include
their MPID with their published quote on the EDGX Book Feed, would
choose to designate their orders as Retail. Identifying additional
orders as Retail Orders may encourage Members who wish to execute
against Retail Orders to send additional Orders to the Exchange,\13\
thereby potentially increasing the level of competition around retail
executions, resulting in better prices for retail investors.
---------------------------------------------------------------------------
\13\ The Exchange notes that it conducted a study of its
execution data from January 1, 2014 to March 31, 2014, which
indicated that Members who represent Retail Orders and utilize
Attributable Orders to include their MPID with their published quote
on the EDGX Book Feed received an 18% higher execution rate than
Members who represent Retail Orders that elected not to include
their MPID on the EDGX Book Feed via the use of a Non-Attributable
Order. See Notice, 79 FR at 24464.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change (SR-EDGX-2014-13), is hereby
approved.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13108 Filed 6-5-14; 8:45 am]
BILLING CODE 8011-01-P