Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 8.15 Entitled “Imposition of Fines for Minor Violation(s) of Rules”, 9801-9803 [2015-03668]
Download as PDF
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices
of last sale information similar to the
BATS One Feed.57 The existence of
these competing data products
demonstrates that there is ample,
existing competition for products such
as the BATS One Feed and the fees
associated by such products is
constrained by competition.
In establishing the proposed fees, the
Exchange considered the
competitiveness of the market for
proprietary data and all of the
implications of that competition. The
Exchange believes that it has considered
all relevant factors and has not
considered irrelevant factors in order to
establish fair, reasonable, and not
unreasonably discriminatory fees and an
equitable allocation of fees among all
users. The existence of alternatives to
the BATS One Feed, including the
existing underlying feeds, consolidated
data, and proprietary data from other
sources, ensures that the Exchange
cannot set unreasonable fees, or fees
that are unreasonably discriminatory,
when vendors and subscribers can elect
these alternatives or choose not to
purchase a specific proprietary data
product if its cost to purchase is not
justified by the returns any particular
vendor or subscriber would achieve
through the purchase.
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.
tkelley on DSK3SPTVN1PROD with NOTICES
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)(ii) of the Act 58 and
paragraph (f)(2) of Rule 19b–4
thereunder.59 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
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
59 17
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–
BYX–2015–09 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–BYX–2015–09. 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 BYX. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BYX–
2015–09 and should be submitted on or
before March 17, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.60
Brent J. Fields,
Secretary.
[FR Doc. 2015–03655 Filed 2–23–15; 8:45 am]
BILLING CODE 8011–01–P
57 Id.
58 15
Comments may be submitted by any of
the following methods:
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
17:31 Feb 23, 2015
60 17
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PO 00000
Frm 00114
Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74295; File No. SR–EDGA–
2015–11]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 8.15
Entitled ‘‘Imposition of Fines for Minor
Violation(s) of Rules’’
February 18, 2015.
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 February
5, 2015, 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 filed a proposal to
amend Rule 8.15 entitled ‘‘Imposition of
Fines for Minor Violation(s) of Rules.’’
The text of the proposed rule change is
available at the Exchange’s Web site at
www.batstrading.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.
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
CFR 200.30–3(a)(12).
Sfmt 4703
9801
E:\FR\FM\24FEN1.SGM
24FEN1
9802
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 8.15 in order to make it
substantively identical to the
corresponding rules on BATS Exchange,
Inc. (‘‘BATS’’) and BATS Y-Exchange,
Inc. (‘‘BYX’’), as further described
below. Last 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 and BYX (together with
BATS, BYX, EDGX and EDGA, the
‘‘BGM Affiliated Exchanges’’).5 In the
context of the Merger, the BGM
Affiliated Exchanges are working to
align certain rules, retaining only
intended differences between the BGM
Affiliated Exchanges. Thus, the proposal
set forth below is intended to amend
Rule 8.15 in order to make it
substantively identical to corresponding
rules on BATS, BYX, and EDGX.6
Currently, paragraph (d) of
Interpretation and Policy to Rule 8.15
includes Rule 2.5 Interpretation .04:
Firm Element of Continuing Education
Requirement (the ‘‘CE Rule’’) under the
list of Exchange rule violations and
recommended fine schedule pursuant to
Rule 8.15 related to the imposition of
fines for minor violations of rules (the
‘‘MRVP’’). The Exchange, however, has
no specific reference to the firm element
of the continuing education
requirements under the CE Rule.
Further, BATS and BYX are proposing
to adopt rules that are substantively
identical to the Exchange’s MRVP,
except that BATS and BYX are not
proposing to add a provision covering
the CE Rule.7 As such, the Exchange is
proposing to eliminate paragraph (d) of
Interpretation and Policy .01 to Rule
8.15.
The Exchange is also proposing to
amend Rule 8.15(a). Currently, Rule
8.15(a) provides that, for the purposes of
imposing fines pursuant to
Interpretation .02 of Rule 4.2, the
Exchange may aggregate individual
violations of particular rules and treat
tkelley on DSK3SPTVN1PROD with NOTICES
5 See
Securities Exchange Act Release No. 71449
(January 30, 2014), 79 FR 6961 (February 5, 2014)
(SR–EDGX–2013–43; SR–EDGA–2013–34).
6 The Exchange understands that BATS, BYX, and
EDGX intend to file proposed rule changes with the
Commission to adopt substantively identical rules.
7 The Exchange notes that BATS and BYX do not
currently and are not going to propose to include
a provision to cover the CE Rule currently included
in the Exchange’s MRVP.
VerDate Sep<11>2014
17:31 Feb 23, 2015
Jkt 235001
such violations as a single offense,
provided that such aggregation is based
upon a comprehensive automated
surveillance program. The Exchange has
never aggregated violations under this
provision and does not anticipate doing
so in the future due to the content of
Interpretation .02 of Rule 4.2, which
could not, because of its nature, be
based on a comprehensive automated
surveillance program. Interpretation and
Policy .02 of Rule 4.2 is related to the
requirement to furnish Exchange-related
order, market and transaction data. As
the Exchange does not currently require
Members to provide such information
and because compliance with a
requirement to provide data would not
likely be reviewed based on an
automated surveillance (though
surveillance would likely be performed
on such data), the Exchange believes the
reference to this provision in Rule 8.15
is no longer necessary. Based on the
foregoing, and in order to conform rules
across each of the BGM Affiliated
Exchanges, the Exchange is proposing to
remove this provision from Rule 8.15(a).
Finally, the Exchange is proposing to
make several non-substantive changes to
Rule 8.15. Specifically, in coordination
with the elimination of paragraph (d) of
Interpretation and Policy .01 to Rule
8.15, the Exchange is proposing to make
several corresponding and nonsubstantive changes to the numbering of
the rule.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 8 and furthers the
objectives of Section 6(b)(5) of the Act,9
in that it is designed promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest. Specifically, the Exchange
believes that the proposed changes to
Rule 8.15(a) and the deletion of
paragraph (d) of Interpretation and
Policy .01 to Rule 8.15 contribute to the
protection of investors and the public
interest by removing unnecessary
language from Exchange Rules and
correcting certain cross-references
therein. The Exchange believes that
these changes will help to make
Exchange Rules clearer and avoid
confusion for all participants on the
Exchange.
Further, as mentioned above, the
proposed rule changes, combined with
the planned filings for BATS, BYX, and
8 15
9 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00115
Fmt 4703
EDGX,10 would allow the BGM
Affiliated Exchanges to provide a
consistent set of rules as it relates to the
imposition of fines for minor violations
of rules across each of the exchanges.
Consistent rules, in turn, will simplify
the application of the Exchange’s
regulatory program for Members of the
Exchange that are also participants on
BATS, BYX, and/or EDGX. The
proposed rule change would provide
greater harmonization between rules of
similar purpose on the BGM Affiliated
Exchanges, resulting in greater
uniformity and less burdensome and
more efficient regulatory compliance.
As such, the proposed rule change
would foster cooperation and
coordination with persons engaged in
facilitating transactions in securities and
would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
Finally, the Exchange believes that
the non-substantive changes described
above will contribute to the protection
of investors and the public interest by
helping to avoid confusion with respect
to Exchange rules by creating a
consistent numbering system in its
Rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the act. To the
contrary, allowing the Exchange to
implement substantively identical rules
related to the imposition of fines for
minor violations of rules across each of
the BGM Affiliated Exchanges does not
present any competitive issues, but
rather is designed to provide greater
harmonization among Exchange, BATS,
BYX, and EDGX rules of similar
purpose, resulting in less burdensome
and more efficient regulatory
compliance for common members of the
BGM Affiliated Exchanges and an
enhanced ability of the BGM Affiliated
Exchanges to fairly and efficiently
regulate members, which will further
enhance 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.
10 See
Sfmt 4703
E:\FR\FM\24FEN1.SGM
supra notes 6 and 7.
24FEN1
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / 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 from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and paragraph
of Rule 19b–4(f)(6) thereunder.12
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange stated that waiver
of this requirement is consistent with
the protection of investors and the
public interest because it will allow the
Exchange to have consistent rules
related to minor violations across each
of the BGM Affiliated Exchanges, which
it believes will both more consistently
and effectively regulate members of the
BGM Affiliated Exchanges as well as
reduce the regulatory burden on
Members of the Exchange that are also
members of EDGX, BYX and/or BZX.
The Commission believes that the
proposed rule change presents no novel
issues and that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Therefore, the Commission
designates the proposed rule change to
be operative upon filing.13
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.
tkelley on DSK3SPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
EDGA–2015–11 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.
All submissions should refer to File No.
SR–EDGA–2015–11. This file number
should be included on the subject line
if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing will also 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 No. SR–EDGA–
2015–11 and should be submitted on or
before March 17, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2015–03668 Filed 2–23–15; 8:45 am]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
12 17
17:31 Feb 23, 2015
Jkt 235001
[Release No. 34–74313; File No. SR–C2–
2015–003]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Exchange Rule
6.15
February 19, 2015.
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 February
19, 2015, C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
filed with the Securities and Exchange
Commission (the ‘‘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 the Substance
of the Proposed Rule Change
The Exchange proposes to extend a
pilot program related to Rule 6.15
(Obvious Error and Catastrophic Errors).
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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 aspects of such
statements.
1. Purpose
The purpose of this filing is to extend
the effectiveness of the Exchange’s
11 15
VerDate Sep<11>2014
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4.
13 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).
9803
1 15
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00116
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\24FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
24FEN1
Agencies
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9801-9803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-03668]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74295; File No. SR-EDGA-2015-11]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 8.15 Entitled ``Imposition of Fines for Minor Violation(s) of
Rules''
February 18, 2015.
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 February 5, 2015, 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 filed a proposal to amend Rule 8.15 entitled
``Imposition of Fines for Minor Violation(s) of Rules.'' The text of
the proposed rule change is available at the Exchange's Web site at
www.batstrading.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.
[[Page 9802]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 8.15 in order to make it
substantively identical to the corresponding rules on BATS Exchange,
Inc. (``BATS'') and BATS Y-Exchange, Inc. (``BYX''), as further
described below. Last 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 and BYX (together
with BATS, BYX, EDGX and EDGA, the ``BGM Affiliated Exchanges'').\5\ In
the context of the Merger, the BGM Affiliated Exchanges are working to
align certain rules, retaining only intended differences between the
BGM Affiliated Exchanges. Thus, the proposal set forth below is
intended to amend Rule 8.15 in order to make it substantively identical
to corresponding rules on BATS, BYX, and EDGX.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 71449 (January 30,
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
\6\ The Exchange understands that BATS, BYX, and EDGX intend to
file proposed rule changes with the Commission to adopt
substantively identical rules.
---------------------------------------------------------------------------
Currently, paragraph (d) of Interpretation and Policy to Rule 8.15
includes Rule 2.5 Interpretation .04: Firm Element of Continuing
Education Requirement (the ``CE Rule'') under the list of Exchange rule
violations and recommended fine schedule pursuant to Rule 8.15 related
to the imposition of fines for minor violations of rules (the
``MRVP''). The Exchange, however, has no specific reference to the firm
element of the continuing education requirements under the CE Rule.
Further, BATS and BYX are proposing to adopt rules that are
substantively identical to the Exchange's MRVP, except that BATS and
BYX are not proposing to add a provision covering the CE Rule.\7\ As
such, the Exchange is proposing to eliminate paragraph (d) of
Interpretation and Policy .01 to Rule 8.15.
---------------------------------------------------------------------------
\7\ The Exchange notes that BATS and BYX do not currently and
are not going to propose to include a provision to cover the CE Rule
currently included in the Exchange's MRVP.
---------------------------------------------------------------------------
The Exchange is also proposing to amend Rule 8.15(a). Currently,
Rule 8.15(a) provides that, for the purposes of imposing fines pursuant
to Interpretation .02 of Rule 4.2, the Exchange may aggregate
individual violations of particular rules and treat such violations as
a single offense, provided that such aggregation is based upon a
comprehensive automated surveillance program. The Exchange has never
aggregated violations under this provision and does not anticipate
doing so in the future due to the content of Interpretation .02 of Rule
4.2, which could not, because of its nature, be based on a
comprehensive automated surveillance program. Interpretation and Policy
.02 of Rule 4.2 is related to the requirement to furnish Exchange-
related order, market and transaction data. As the Exchange does not
currently require Members to provide such information and because
compliance with a requirement to provide data would not likely be
reviewed based on an automated surveillance (though surveillance would
likely be performed on such data), the Exchange believes the reference
to this provision in Rule 8.15 is no longer necessary. Based on the
foregoing, and in order to conform rules across each of the BGM
Affiliated Exchanges, the Exchange is proposing to remove this
provision from Rule 8.15(a).
Finally, the Exchange is proposing to make several non-substantive
changes to Rule 8.15. Specifically, in coordination with the
elimination of paragraph (d) of Interpretation and Policy .01 to Rule
8.15, the Exchange is proposing to make several corresponding and non-
substantive changes to the numbering of the rule.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \8\ and furthers the objectives of Section
6(b)(5) of the Act,\9\ in that it is designed promote just and
equitable principles of trade, remove impediments to, and perfect the
mechanism of, a free and open market and a national market system, and,
in general, protect investors and the public interest. Specifically,
the Exchange believes that the proposed changes to Rule 8.15(a) and the
deletion of paragraph (d) of Interpretation and Policy .01 to Rule 8.15
contribute to the protection of investors and the public interest by
removing unnecessary language from Exchange Rules and correcting
certain cross-references therein. The Exchange believes that these
changes will help to make Exchange Rules clearer and avoid confusion
for all participants on the Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Further, as mentioned above, the proposed rule changes, combined
with the planned filings for BATS, BYX, and EDGX,\10\ would allow the
BGM Affiliated Exchanges to provide a consistent set of rules as it
relates to the imposition of fines for minor violations of rules across
each of the exchanges. Consistent rules, in turn, will simplify the
application of the Exchange's regulatory program for Members of the
Exchange that are also participants on BATS, BYX, and/or EDGX. The
proposed rule change would provide greater harmonization between rules
of similar purpose on the BGM Affiliated Exchanges, resulting in
greater uniformity and less burdensome and more efficient regulatory
compliance. As such, the proposed rule change would foster cooperation
and coordination with persons engaged in facilitating transactions in
securities and would remove impediments to and perfect the mechanism of
a free and open market and a national market system.
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\10\ See supra notes 6 and 7.
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Finally, the Exchange believes that the non-substantive changes
described above will contribute to the protection of investors and the
public interest by helping to avoid confusion with respect to Exchange
rules by creating a consistent numbering system in its Rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the act. To the contrary, allowing the
Exchange to implement substantively identical rules related to the
imposition of fines for minor violations of rules across each of the
BGM Affiliated Exchanges does not present any competitive issues, but
rather is designed to provide greater harmonization among Exchange,
BATS, BYX, and EDGX rules of similar purpose, resulting in less
burdensome and more efficient regulatory compliance for common members
of the BGM Affiliated Exchanges and an enhanced ability of the BGM
Affiliated Exchanges to fairly and efficiently regulate members, which
will further enhance 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.
[[Page 9803]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and paragraph
of Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange stated that waiver of this requirement is
consistent with the protection of investors and the public interest
because it will allow the Exchange to have consistent rules related to
minor violations across each of the BGM Affiliated Exchanges, which it
believes will both more consistently and effectively regulate members
of the BGM Affiliated Exchanges as well as reduce the regulatory burden
on Members of the Exchange that are also members of EDGX, BYX and/or
BZX. The Commission believes that the proposed rule change presents no
novel issues and that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission designates the proposed rule change to be
operative upon filing.\13\
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\13\ 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).
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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
arguments concerning the foregoing, including whether the proposal 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 No. SR-EDGA-2015-11 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.
All submissions should refer to File No. SR-EDGA-2015-11. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing will also 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 No. SR-EDGA-2015-11 and should be
submitted on or before March 17, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03668 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P