Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Eliminate Reference to the EdgeRisk Gateway in Rule 13.10 of EDGA Exchange, Inc., 73653-73655 [2014-29007]
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Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices
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 No. SR–ISE
Gemini–2014–29 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–ISE Gemini–2014–29. 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 Commissions
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 Topaz. 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–ISE
Gemini–2014–29 and should be
submitted by January 2, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Brent J. Fields,
Secretary.
[FR Doc. 2014–29011 Filed 12–10–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73761; File No. SR–EDGA–
2014–29]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Eliminate Reference to
the EdgeRisk Gateway in Rule 13.10 of
EDGA Exchange, Inc.
December 5, 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 November
25, 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 and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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 proposing to
eliminate reference in Rule 13.10 to the
EdgeRisk GatewaySM, which is a risk
management tool that is to be
discontinued by the Exchange. The
Exchange also proposes to delete the
fees related to EdgeRisk GatewaySM
from its fee schedule.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.directedge.com/, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
6 17
CFR 200.30–3(a)(12).
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Fmt 4703
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73653
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts 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 delete
reference to the EdgeRisk GatewaySM in
Rule 13.10 as well as its related fees
from the Exchange’s fee schedule. In
sum, the EdgeRisk GatewaySM is an
optional fee-based risk management tool
that provides Members and nonMembers the option to obtain dedicated
primary and backup access gateways 5
in addition to, or in place of, a shared
access gateway.6 The tool was intended
to assist subscribers’ efforts to mitigate
the risks associated with disruptions
caused by excessive message traffic or
programming mistakes experienced via
a shared access gateway because the
subscriber’s order flow on its dedicated
access gateways would be insulated
from such external disruptions.
Earlier this year, the Exchange and its
affiliate EDGX Exchange, Inc. (‘‘EDGX’’)
received approval to effect a merger (the
‘‘Merger’’) of the Exchange’s parent
company, Direct Edge Holdings LLC,
with BATS Global Markets, Inc., the
parent of BATS Exchange, Inc.
(‘‘BATS’’) and BATS Y-Exchange, Inc.
(‘‘BYX’’, together with BATS, BYX,
EDGA and EDGX, the ‘‘BGM Affiliated
Exchanges’’).7 In the context of the
Merger, the BGM Affiliated Exchanges
are assessing certain system
functionality, retaining only intended
5 The Exchange currently offers logical ports
through which order are submitted to the Exchange,
receive drop copies of orders and execution
messages, and receive transmission of depth of book
data (‘‘Logical Ports’’). Each Logical Port is assigned
an access gateway that performs order validations
and manages the cycle of a submitted order’s flow
of information back to the Member. The access
gateway performs functions such as message
validation, acknowledgement messaging, risk
checks, matching engine routing and execution
messaging. The Exchange currently assigns
Members’ and non-Members’ Logical Ports to the
access gateways through a standard method that
accounts for the relative message traffic expected
over the Logical Port as well as redundancy
requirements, where an access gateway contains
assigned Logical Ports for a number of firms. The
Exchange assigns Member and non-Member
sessions to multiple access gateways so that the
failure of one gateway may not result in the loss of
access.
6 See Securities Exchange Act Release No. 69856
(June 25, 2013), 78 FR 39395 (SR–EDGA–2013–16)
(Notice of Filing and Immediate Effectiveness of
Proposed Rule Change to Offer and Establish Fees
for a New Exchange Service, EdgeRisk Gateways).
7 See Securities Exchange Act Release No. 71449
(January 30, 2014), 79 FR 6961 (February 5, 2014)
(SR–EDGX–2013–43; SR–EDGA–2013–34).
E:\FR\FM\11DEN1.SGM
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73654
Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
differences between the BGM Affiliated
Exchanges. As part of this effort, the
Exchange proposes to: Delete reference
to EdgeRisk GatewaySM in Rule 13.10 as
well as its related fees from the
Exchange’s fee schedule because it
intends to discontinue offering this
product. Therefore, reference to the
product within Exchange’s rules and
applicable fees in its fee schedule would
no longer serve any legitimate purpose
upon the product being retired by the
Exchange. The Exchange has few
subscribers to the EdgeRisk GatewaySM
and has determined that the current
customer demand does not warrant the
infrastructure and ongoing maintenance
expense required to support the product
within the new Exchange environment.
Therefore, the Exchange will terminate
the product on January 12, 2015.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of Section 6(b) of the Act,8
in general, and Section 6(b)(5) of the
Act,9 in particular, in that is promotes
just and equitable principles of trade,
removes impediments to, and perfect
the mechanism of, a free and open
market and a national market system,
and, in general, protects investors and
the public interest. The Exchange also
believes that its proposal is consistent
with Section 6(b)(4) of the Act,10 in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among members and other
persons using its facilities.
Specifically, the proposal is
consistent with Section 6(b)(5) of the
Act,11 in that it eliminates any investor
confusion by deleting references to a
product, and its related fees, that is to
be discontinued by the Exchange,
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. In
addition, the Exchange has very few
subscribers to EdgeRisk GatewaySM and
has determined that the current
customer demand does not warrant the
infrastructure and ongoing maintenance
expense required to support the product
within the new Exchange environment.
In addition, EdgeRisk GatewaySM is not
a core product offering by the Exchange,
nor is the Exchange required by the Act
to offer such a product. The proposed
rule change will not permit unfair
discrimination among customers,
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
9 15
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19:07 Dec 10, 2014
Jkt 235001
brokers, or dealers because the EdgeRisk
GatewaySM will no longer be offered by
the Exchange.
In addition, the Exchange believes
that the proposed removal of the fees for
the EdgeRisk GatewaySM from its fee
schedule is consistent with Section
6(b)(4) of the Act 12 because it would
delete fees for a product that is to be
discontinued by the Exchange, thereby
eliminating investor confusion. Lastly,
the Exchange also believes that the
proposed amendment to its fee schedule
is reasonable and non-discriminatory
because it will apply uniformly to all
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes the proposal is
consistent with Section 6(b)(8) of the
Act 13 in that it does not impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change will discontinue
ConenctEdge [sic] by removing
references to the service from its rules,
and its related fees from the fee
schedule, and is not designed to have a
competitive impact. Therefore, the
Exchange does not believe the proposed
rule change will have any effect on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) by its
terms does not become operative for 30
days after the date of this filing, 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 14 and Rule 19b–
4(f)(6) thereunder.15
12 15
U.S.C. 78f(b)(4).
U.S.C. 78f(b)(8).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
13 15
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
At any time within 60 days of the
filing of the proposed rule change, the
Commission may summarily
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:
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–2014–29 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–2014–29. 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
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has met this requirement.
E:\FR\FM\11DEN1.SGM
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Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGA–
2014–29 and should be submitted on or
before January 2, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–29007 Filed 12–10–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73752; File No. SR–CME–
2014–55]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Fee Schedule
Applicable to Its OTC Credit Default
Swap Clearing Offering
December 5, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that, on December
1, 2014, Chicago Mercantile Exchange
Inc. (‘‘CME’’) 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
primarily by CME. CME filed the
proposal pursuant to Section
19(b)(3)(A)(ii) of the Act,3 and Rule
19b–4(f)(2) 4 thereunder, so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME is proposing to amend the fee
schedule that currently applies to its
OTC Credit Default Swap (‘‘CDS’’) index
clearing offering. The text of the
proposed rule change is available on
CME’s Web site at https://
www.cmegroup.com, at the principal
office of CME, and at the Commission’s
Public Reference Room.
16 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
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19:07 Dec 10, 2014
Jkt 235001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CME 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. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
CME is registered as a derivatives
clearing organization with the
Commodity Futures Trading
Commission (‘‘CFTC’’) and currently
offers clearing services for many
different futures and swaps products.
With this filing, CME proposes to make
certain amendments to the current fee
schedule that applies to its OTC CDS
index clearing offering. The changes
described in this filing are limited to
products that fall under the exclusive
jurisdiction of the CFTC.
The first set of proposed
modifications specifies the fees that will
apply to iTraxx Index Products that will
be cleared by CME once the product is
made available for clearing. This is
scheduled to occur on December 8, 2014
or whenever applicable regulatory
approvals are obtained. In general,
iTraxx products will have the same fee
schedule as the similar North American
CDX products that CME currently
clears, but will be charged in Euros as
opposed to U.S. Dollars. Additionally,
the proposed modifications will also
feature a temporary discount on these
products to all clients.
The second set of proposed
modifications relate to the volumebased tiers that are currently offered in
connection with CME’s North American
CDX index product offering. These
proposed modifications would lower
certain of the current tier thresholds.
These changes would become
operational on January 1, 2015.
The proposed fee changes are limited
to CME’s business as a derivatives
clearing organization clearing products
and do not impact security-based swaps
in any way. CME has also certified the
proposed rule changes that are the
subject of this filing to the CFTC in
CFTC Submission 14–441.
CME believes the proposed rule
change is consistent with the
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
73655
requirements of the Act including
Section 17A of the Act.5 More
specifically, the proposed rule change
establishes or changes a member due,
fee or other charge imposed by CME
under Section 19(b)(3)(A)(ii) 6 of the Act
and Rule 19b–4(f)(2) 7 thereunder. CME
believes that the proposed fee change is
consistent with the requirements of the
Act and the rules and regulations
thereunder and, in particular, to Section
17A(b)(3)(D) of the Act,8 because the
proposed fee changes apply equally to
all market participants clearing covered
products and therefore the proposed
changes provide for the equitable
allocation of reasonable dues, fees and
other charges among participants. CME
also notes that it operates in a highly
competitive market in which market
participants can readily direct business
to competing venues. As such, the
proposed changes are appropriately
filed pursuant to Section 19(b)(3)(A)(ii) 9
of the Act and Rule 19b–4(f)(2) 10
thereunder.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CME does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition. The proposed
modifications will introduce pricing for
a new OTC CDS index swap offering
and will make minor modifications to
the pricing schedules for current OTC
CDS index clearing offerings. These
products are swaps under the exclusive
jurisdiction of the CFTC, and, as such,
these proposed changes do not affect the
security-based swap clearing activities
of CME in any way and therefore do not
impose any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
CME has not solicited, and does not
intend to solicit, comments regarding
this proposed rule change. CME has not
received any unsolicited written
comments from interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
5 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(ii).
7 17 CFR 240.19b–4(f)(2).
8 15 U.S.C. 78q–1(b)(3)(D).
9 15 U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
6 15
E:\FR\FM\11DEN1.SGM
11DEN1
]]>Agencies
[Federal Register Volume 79, Number 238 (Thursday, December 11, 2014)]
[Notices]
[Pages 73653-73655]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29007]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73761; File No. SR-EDGA-2014-29]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Eliminate Reference to the EdgeRisk Gateway in Rule 13.10 of EDGA
Exchange, Inc.
December 5, 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 November 25, 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 and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to eliminate reference in Rule 13.10 to
the EdgeRisk Gateway\SM\, which is a risk management tool that is to be
discontinued by the Exchange. The Exchange also proposes to delete the
fees related to EdgeRisk Gateway\SM\ from its fee schedule.
The text of the proposed rule change is available at the Exchange's
Web site at https://www.directedge.com/, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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 parts 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 delete reference to the EdgeRisk
Gateway\SM\ in Rule 13.10 as well as its related fees from the
Exchange's fee schedule. In sum, the EdgeRisk Gateway\SM\ is an
optional fee-based risk management tool that provides Members and non-
Members the option to obtain dedicated primary and backup access
gateways \5\ in addition to, or in place of, a shared access
gateway.\6\ The tool was intended to assist subscribers' efforts to
mitigate the risks associated with disruptions caused by excessive
message traffic or programming mistakes experienced via a shared access
gateway because the subscriber's order flow on its dedicated access
gateways would be insulated from such external disruptions.
---------------------------------------------------------------------------
\5\ The Exchange currently offers logical ports through which
order are submitted to the Exchange, receive drop copies of orders
and execution messages, and receive transmission of depth of book
data (``Logical Ports''). Each Logical Port is assigned an access
gateway that performs order validations and manages the cycle of a
submitted order's flow of information back to the Member. The access
gateway performs functions such as message validation,
acknowledgement messaging, risk checks, matching engine routing and
execution messaging. The Exchange currently assigns Members' and
non-Members' Logical Ports to the access gateways through a standard
method that accounts for the relative message traffic expected over
the Logical Port as well as redundancy requirements, where an access
gateway contains assigned Logical Ports for a number of firms. The
Exchange assigns Member and non-Member sessions to multiple access
gateways so that the failure of one gateway may not result in the
loss of access.
\6\ See Securities Exchange Act Release No. 69856 (June 25,
2013), 78 FR 39395 (SR-EDGA-2013-16) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change to Offer and Establish Fees
for a New Exchange Service, EdgeRisk Gateways).
---------------------------------------------------------------------------
Earlier this year, the Exchange and its affiliate EDGX Exchange,
Inc. (``EDGX'') received approval to effect a merger (the ``Merger'')
of the Exchange's parent company, Direct Edge Holdings LLC, with BATS
Global Markets, Inc., the parent of BATS Exchange, Inc. (``BATS'') and
BATS Y-Exchange, Inc. (``BYX'', together with BATS, BYX, EDGA and EDGX,
the ``BGM Affiliated Exchanges'').\7\ In the context of the Merger, the
BGM Affiliated Exchanges are assessing certain system functionality,
retaining only intended
[[Page 73654]]
differences between the BGM Affiliated Exchanges. As part of this
effort, the Exchange proposes to: Delete reference to EdgeRisk
Gateway\SM\ in Rule 13.10 as well as its related fees from the
Exchange's fee schedule because it intends to discontinue offering this
product. Therefore, reference to the product within Exchange's rules
and applicable fees in its fee schedule would no longer serve any
legitimate purpose upon the product being retired by the Exchange. The
Exchange has few subscribers to the EdgeRisk Gateway\SM\ and has
determined that the current customer demand does not warrant the
infrastructure and ongoing maintenance expense required to support the
product within the new Exchange environment. Therefore, the Exchange
will terminate the product on January 12, 2015.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 71449 (January 30,
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of Section 6(b) of the Act,\8\ in general, and Section
6(b)(5) of the Act,\9\ in particular, in that is promotes just and
equitable principles of trade, removes impediments to, and perfect the
mechanism of, a free and open market and a national market system, and,
in general, protects investors and the public interest. The Exchange
also believes that its proposal is consistent with Section 6(b)(4) of
the Act,\10\ in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and other persons
using its facilities.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78f(b)(4).
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Specifically, the proposal is consistent with Section 6(b)(5) of
the Act,\11\ in that it eliminates any investor confusion by deleting
references to a product, and its related fees, that is to be
discontinued by the Exchange, 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. In addition, the Exchange has very few subscribers to
EdgeRisk GatewaySM and has determined that the current customer demand
does not warrant the infrastructure and ongoing maintenance expense
required to support the product within the new Exchange environment. In
addition, EdgeRisk GatewaySM is not a core product offering by the
Exchange, nor is the Exchange required by the Act to offer such a
product. The proposed rule change will not permit unfair discrimination
among customers, brokers, or dealers because the EdgeRisk GatewaySM
will no longer be offered by the Exchange.
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\11\ 15 U.S.C. 78f(b)(5).
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In addition, the Exchange believes that the proposed removal of the
fees for the EdgeRisk Gateway\SM\ from its fee schedule is consistent
with Section 6(b)(4) of the Act \12\ because it would delete fees for a
product that is to be discontinued by the Exchange, thereby eliminating
investor confusion. Lastly, the Exchange also believes that the
proposed amendment to its fee schedule is reasonable and non-
discriminatory because it will apply uniformly to all members.
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\12\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposal is consistent with Section
6(b)(8) of the Act \13\ in that it does not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change will discontinue
ConenctEdge [sic] by removing references to the service from its rules,
and its related fees from the fee schedule, and is not designed to have
a competitive impact. Therefore, the Exchange does not believe the
proposed rule change will have any effect on competition.
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\13\ 15 U.S.C. 78f(b)(8).
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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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (1) Significantly affect
the protection of investors or the public interest; (2) impose any
significant burden on competition; and (3) by its terms does not become
operative for 30 days after the date of this filing, 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 \14\ and
Rule 19b-4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and 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. The Exchange has met this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily 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:
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-2014-29 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-2014-29. 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
[[Page 73655]]
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
EDGA-2014-29 and should be submitted on or before January 2, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29007 Filed 12-10-14; 8:45 am]
BILLING CODE 8011-01-P
