Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Content of the BATS One Feed Under Rule 13.8(b) To Include Consolidated Volume for All Listed Equity Securities, 21286-21288 [2015-08794]
Download as PDF
21286
Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.1
Brent J. Fields,
Secretary.
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2015–24 and should be
submitted on or before May 8, 2015.
[FR Doc. 2015–08791 Filed 4–16–15; 8:45 am]
BILLING CODE 8011–01–P
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2015–08792 Filed 4–16–15; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74559A; File No. SR–
NYSEArca–2014–100]
April 13, 2015.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change, as Modified by
Amendment No. 1 Thereto, Relating To
Listing and Trading of Shares of the
SPDR SSgA Global Managed Volatility
ETF Under NYSE Arca Equities Rule
8.600; Correction
April 13, 2015.
Securities and Exchange
Commission.
ACTION: Notice; correction.
AGENCY:
The Securities and Exchange
Commission published a document in
the Federal Register of March 26, 2015,
concerning a Notice of Designation of a
Longer Period for Commission Action
on Proceedings to Determine Whether
To Approve or Disapprove a Proposed
Rule Change, as Modified by
Amendment No. 1 Thereto, Relating To
Listing and Trading of Shares of the
SPDR SSgA Global Managed Volatility
ETF Under NYSE Arca Equities Rule
8.600 by NYSE Arca, Inc.; the document
contained an incorrect date.
FOR FURTHER INFORMATION CONTACT:
Leigh Duffy, Division of Trading and
Markets, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549, (202) 551–5928.
SUMMARY:
tkelley on DSK3SPTVN1PROD with NOTICES
Correction
In the Federal Register of March 26,
2015, in FR Doc. 2015–06892, on page
16047, in the thirty-first line of the third
column, correct the date May 7, 2015 to
read May 22, 2015.
CFR 200.30–3(a)(12).
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Jkt 235001
[Release No. 34–74717; File No. SR–EDGA–
2015–17]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Content of
the BATS One Feed Under Rule 13.8(b)
To Include Consolidated Volume for All
Listed Equity Securities
BILLING CODE 8011–01–P
12 17
SECURITIES AND EXCHANGE
COMMISSION
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 1,
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 the Substance
of the Proposed Rule Change
The Exchange amend [sic] the content
of the BATS One Feed under Rule
13.8(b) to include consolidated volume
for all listed equity securities. 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
1 17
CFR 200.30–3(a)(57).
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).
1 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
content of the BATS One Feed under
Rule 13.8(b) to include consolidated
volume for all listed equity securities.
The Commission recently approved a
proposed rule change by the Exchange
to establish a new market data product
called the BATS One Feed.5 The BATS
One Feed is a data feed that
disseminates, on a real-time basis, the
aggregate best bid and offer (‘‘BBO’’) of
all displayed orders for securities traded
on EDGA and its affiliated exchanges 6
and for which the BATS Exchanges
reports quotes under the Consolidated
Tape Association (‘‘CTA’’) Plan or the
Nasdaq/UTP Plan.7
The last sale information
disseminated as part of the BATS One
Feed includes the price, size, time of
execution, and individual BATS
Exchange on which the trade was
executed. The last sale information also
includes the cumulative number of
shares executed on all BATS Exchanges
5 See Securities Exchange Act Release No. 73918
(December 23, 2014), 79 FR 78920 (December 31,
2014) (File Nos. SR–EDGX–2014–25; SR–EDGA–
2014–25; SR–BATS–2014–055; SR–BYX–2014–030)
(Notice of Amendments No. 2 and Order Granting
Accelerated Approval to Proposed Rule Changes, as
Modified by Amendments Nos. 1 and 2, to Establish
a New Market Data Product called the BATS One
Feed) (‘‘BATS One Approval Order’’).
6 EDGA’s affiliated exchanges are the BATS
Exchange, Inc. (‘‘BZX’’), the BATS Y-Exchange, Inc.
(‘‘BYX’’), and the EDGX Exchange, Inc. (‘‘EDGX’’,
together with EDGA, BZX, and BYX, the ‘‘BATS
Exchanges’’). On January 31, 2014, Direct Edge
Holdings LLC (‘‘DE Holdings’’), the former parent
company of the Exchange and EDGX, completed its
business combination with BATS Global Markets,
Inc., the parent company of BATS and BYX. See
Securities Exchange Act Release No. 71449 (January
30, 2014), 79 FR 6961 (February 5, 2014) (SR–
EDGX–2013–43, SR–EDGA–2013–34). Upon
completion of the business combination, DE
Holdings and BATS Global Markets, Inc. each
became intermediate holding companies, held
under a single new holding company. The new
holding company, formerly named ‘‘BATS Global
Markets Holdings, Inc.,’’ changed its name to
‘‘BATS Global Markets, Inc.’’
7 The Exchange understands that each of the
BATS Exchanges will separately file substantially
similar proposed rule changes with the Commission
to implement fees for the BATS One Feed.
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Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices
for that trading day.8 The Exchange now
proposes to expand the last sale
information to include consolidated
volume for all listed equity securities
regardless of where the transaction was
executed. The Exchange would obtain
the consolidated volume directly from
the securities information processors
and then distribute in a manner
consistent with the requirements for
redistributing such data as set forth in
the CTA Plan and Nasdaq UTP Plan.9
tkelley on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 10 in general, and furthers the
objectives of Section 6(b)(5) of the Act 11
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange also
believes that the proposed rule change
is consistent with Section 11(A) of the
Act 12 in that it supports (i) fair
competition among brokers and dealers,
among exchange markets, and between
exchange markets and markets other
than exchange markets and (ii) the
availability to brokers, dealers, and
investors of information with respect to
quotations for and transactions in
securities. Furthermore, the proposed
rule change is consistent with Rule 603
of Regulation NMS,13 which provides
that any national securities exchange
that distributes information with respect
8 The BATS One Feed also contains optional
functionality which enables recipients to receive
aggregated two-sided quotations from the BATS
Exchanges for up to five (5) price levels for all
securities that are traded on the BATS Exchanges
in addition to the BATS One Summary Feed
(‘‘BATS One Premium Feed’’). For each price level
on one of the BATS Exchanges, the BATS One
Premium Feed includes a two-sided quote and the
number of shares available to buy and sell at that
particular price level.
9 See CTA Consolidated Volume Display Policy
available at https://www.ctaplan.com (dated March
2015). The CTA Consolidated Volume Display
Policy requires that, ‘‘[i]f a Customer calculates the
CTA Consolidated Volume and displays that
alongside last sale prices or bid-asked quotes that
are not consolidated prices or quotes under the CTA
Plan or the CQ Plan, then the Customer must
incorporate into its display the following statement:
‘‘Realtime quote and/or trade prices are not sourced
from all markets.’’ Customer must also assure that
any person included in the redistribution chain
starting with the Customer conspicuously places
such a statement in any such display that it
provides.’’ Id.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 15 U.S.C. 78k–1.
13 See 17 CFR 242.603.
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19:08 Apr 16, 2015
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to quotations for or transactions in an
NMS stock do so on terms that are not
unreasonably discriminatory. In
adopting Regulation NMS, the
Commission granted self-regulatory
organizations and broker-dealers
increased authority and flexibility to
offer new and unique market data
products to the public. It was believed
that this authority would expand the
amount of data available to consumers,
and also spur innovation and
competition for the provision of market
data.
The proposed rule change is designed
to promote just and equitable principles
of trade and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by providing for the broader
dissemination of consolidated volume
to investors. The Exchange also believes
this proposal is consistent with Section
6(b)(5) of the Act because it protects
investors and the public interest and
promotes just and equitable principles
of trade by providing investors with
new options for receiving consolidated
volume. The Exchange also believes that
the proposed rule change is reasonable
because consolidated volume is
currently included in a competing
market data products offered by the
NYSE and Nasdaq.14 Therefore, the
Exchange believes the proposed rule
change removes impediments to and
perfects the mechanism of a free and
open market and a national market
system, and, in general, protects
investors and the public interest.
Lastly, the proposal would not permit
unfair discrimination because the
consolidated volume will be available to
all of the Exchange’s customers and
market data vendors on an equivalent
basis. In addition, any customer that
wishes to receive consolidated volume
14 See Securities Exchange Act Release No. 73553
(November 6, 2014), 79 FR 67491 (November 13,
2014) (SR–NYSE–2014–40) (Notice of Amendment
No. 1 and Order Granting Accelerated Approval to
a Proposed Rule Change, as Modified by
Amendment No. 1, To Establish the NYSE Best
Quote & Trades (‘‘BQT’’) Data Feed); https://
www.nyxdata.com/Data-Products/NYSE-BestQuote-and-Trades (last visited May 27, 2014) (data
feed providing unified view of BBO and last sale
information for the NYSE, NYSE Arca, and NYSE
MKT) (‘‘NYSE BQT Approval Order’’). See also
Nasdaq Basic, https://www.nasdaqtrader.com/
Trader.aspx?id=nasdaqbasic (last visited March 26,
2015) (data feed offering the BBO and Last Sale
information for all U.S. exchange-listed securities
based on liquidity within the Nasdaq market center,
as well as trades reported to the FINRA/Nasdaq
Trade Reporting Facility (‘‘TRF’’)); and Nasdaq NLS
Plus, https://www.nasdaqtrader.com/
Trader.aspx?id=NLSplus (last visited July 8, 2014)
(data feed providing last sale data as well as
consolidated volume from the following Nasdaq
OMX markets for U.S. exchange-listed securities:
Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and
Nasdaq OMX PSX).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
21287
via a different source will be able to do
so.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposal will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The Exchange
believes that the proposed rule change
will enhance competition because it
would enable the Exchange to include
consolidated volume as part of the
BATS One Feed, thereby enabling it to
better compete with similar market data
products currently offered by the NYSE
and Nasdaq that include such volume.15
Finally, although the BATS
Exchanges are the exclusive distributors
of the individual data feeds from which
certain data elements would be taken to
create the BATS One Feed, the
Exchange is not the exclusive
distributor of the consolidated volume
that would be included in the BATS
One Feed. A vendor seeking to offer a
similar product and include
consolidated volume would be able to
do so on the same terms as the Exchange
from a cost perspective. As discussed in
in the BATS One Approval Order,16 any
entity may separately purchase the
individual underlying products, and if
they so choose, perform a similar
aggregation and consolidation function
that the Exchange performs in creating
the BATS One Feed, and offer a data
feed with the same information
included in the BATS One Feed to sell
and distribute it to its clients with no
greater cost than the Exchange.
Likewise, a competing vendor could
also receive consolidated volume from
the securities information processors
and include it as part of their product
to be disseminated to their customers
under the same terms and policies
provided to the Exchange.17 Therefore,
the Exchange believes the inclusion of
consolidated volume in the BATS One
Feed would not impose any burden on
competition not necessary or
appropriate 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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
15 See id. (noting that NYSE BQT and NLS Plus
carry consolidated volume for all listed equities).
16 See BATS One Approval Order, supra note 5.
17 See CTA Consolidated Volume Display Policy,
supra note 9.
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Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 18 and Rule 19b–4(f)(6)(iii)
thereunder.19
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 20 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 21
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it would allow the Exchange to
timely offer investors a new option for
receiving consolidated volume
information. The Exchange further notes
that other exchanges currently offer
similar data products that include
consolidated volume.22 The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.23
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
18 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
20 17 CFR 240.19b–4(f)(6).
21 17 CFR 240.19b–4(f)(6)(iii).
22 See supra note 14 (noting that NYSE BQT and
NLS Plus carry consolidated volume for all listed
equities).
23 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
tkelley on DSK3SPTVN1PROD with NOTICES
19 17
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19:08 Apr 16, 2015
Jkt 235001
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–
EDGA–2015–17 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
Number SR–EDGA–2015–17. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–EDGA–
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
2015–17, and should be submitted on or
before May 8, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Brent J. Fields,
Secretary.
[FR Doc. 2015–08794 Filed 4–16–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74719; File No. SR–C2–
2015–008]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Change the Close of
Trading Hours on the Last Day of
Trading in Expiring Quarterly Index
Expirations
April 13, 2015.
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 April 9,
2015 C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by the Exchange.
The Exchange filed the proposal as a
‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend C2
Rule 6.1 (Days and Hours of Business)
to change the close of trading hours
from 3:15 p.m. (Chicago time) to 3:00
p.m. (Chicago time) on the last day of
trading in expiring Quarterly Index
Expirations (‘‘QIXs’’). The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.c2exchange.com/Legal/), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\17APN1.SGM
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Agencies
[Federal Register Volume 80, Number 74 (Friday, April 17, 2015)]
[Notices]
[Pages 21286-21288]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08794]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74717; File No. SR-EDGA-2015-17]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Content of the BATS One Feed Under Rule 13.8(b) To Include
Consolidated Volume for All Listed Equity Securities
April 13, 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 April 1, 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 the
Substance of the Proposed Rule Change
The Exchange amend [sic] the content of the BATS One Feed under
Rule 13.8(b) to include consolidated volume for all listed equity
securities. 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the content of the BATS One Feed
under Rule 13.8(b) to include consolidated volume for all listed equity
securities. The Commission recently approved a proposed rule change by
the Exchange to establish a new market data product called the BATS One
Feed.\5\ The BATS One Feed is a data feed that disseminates, on a real-
time basis, the aggregate best bid and offer (``BBO'') of all displayed
orders for securities traded on EDGA and its affiliated exchanges \6\
and for which the BATS Exchanges reports quotes under the Consolidated
Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 73918 (December 23,
2014), 79 FR 78920 (December 31, 2014) (File Nos. SR-EDGX-2014-25;
SR-EDGA-2014-25; SR-BATS-2014-055; SR-BYX-2014-030) (Notice of
Amendments No. 2 and Order Granting Accelerated Approval to Proposed
Rule Changes, as Modified by Amendments Nos. 1 and 2, to Establish a
New Market Data Product called the BATS One Feed) (``BATS One
Approval Order'').
\6\ EDGA's affiliated exchanges are the BATS Exchange, Inc.
(``BZX''), the BATS Y-Exchange, Inc. (``BYX''), and the EDGX
Exchange, Inc. (``EDGX'', together with EDGA, BZX, and BYX, the
``BATS Exchanges''). On January 31, 2014, Direct Edge Holdings LLC
(``DE Holdings''), the former parent company of the Exchange and
EDGX, completed its business combination with BATS Global Markets,
Inc., the parent company of BATS and BYX. See Securities Exchange
Act Release No. 71449 (January 30, 2014), 79 FR 6961 (February 5,
2014) (SR-EDGX-2013-43, SR-EDGA-2013-34). Upon completion of the
business combination, DE Holdings and BATS Global Markets, Inc. each
became intermediate holding companies, held under a single new
holding company. The new holding company, formerly named ``BATS
Global Markets Holdings, Inc.,'' changed its name to ``BATS Global
Markets, Inc.''
\7\ The Exchange understands that each of the BATS Exchanges
will separately file substantially similar proposed rule changes
with the Commission to implement fees for the BATS One Feed.
---------------------------------------------------------------------------
The last sale information disseminated as part of the BATS One Feed
includes the price, size, time of execution, and individual BATS
Exchange on which the trade was executed. The last sale information
also includes the cumulative number of shares executed on all BATS
Exchanges
[[Page 21287]]
for that trading day.\8\ The Exchange now proposes to expand the last
sale information to include consolidated volume for all listed equity
securities regardless of where the transaction was executed. The
Exchange would obtain the consolidated volume directly from the
securities information processors and then distribute in a manner
consistent with the requirements for redistributing such data as set
forth in the CTA Plan and Nasdaq UTP Plan.\9\
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\8\ The BATS One Feed also contains optional functionality which
enables recipients to receive aggregated two-sided quotations from
the BATS Exchanges for up to five (5) price levels for all
securities that are traded on the BATS Exchanges in addition to the
BATS One Summary Feed (``BATS One Premium Feed''). For each price
level on one of the BATS Exchanges, the BATS One Premium Feed
includes a two-sided quote and the number of shares available to buy
and sell at that particular price level.
\9\ See CTA Consolidated Volume Display Policy available at
https://www.ctaplan.com (dated March 2015). The CTA Consolidated
Volume Display Policy requires that, ``[i]f a Customer calculates
the CTA Consolidated Volume and displays that alongside last sale
prices or bid-asked quotes that are not consolidated prices or
quotes under the CTA Plan or the CQ Plan, then the Customer must
incorporate into its display the following statement: ``Realtime
quote and/or trade prices are not sourced from all markets.''
Customer must also assure that any person included in the
redistribution chain starting with the Customer conspicuously places
such a statement in any such display that it provides.'' Id.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \10\ in general, and furthers the objectives of Section
6(b)(5) of the Act \11\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest. The Exchange also believes
that the proposed rule change is consistent with Section 11(A) of the
Act \12\ in that it supports (i) fair competition among brokers and
dealers, among exchange markets, and between exchange markets and
markets other than exchange markets and (ii) the availability to
brokers, dealers, and investors of information with respect to
quotations for and transactions in securities. Furthermore, the
proposed rule change is consistent with Rule 603 of Regulation NMS,\13\
which provides that any national securities exchange that distributes
information with respect to quotations for or transactions in an NMS
stock do so on terms that are not unreasonably discriminatory. In
adopting Regulation NMS, the Commission granted self-regulatory
organizations and broker-dealers increased authority and flexibility to
offer new and unique market data products to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition for the
provision of market data.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 15 U.S.C. 78k-1.
\13\ See 17 CFR 242.603.
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by providing for
the broader dissemination of consolidated volume to investors. The
Exchange also believes this proposal is consistent with Section 6(b)(5)
of the Act because it protects investors and the public interest and
promotes just and equitable principles of trade by providing investors
with new options for receiving consolidated volume. The Exchange also
believes that the proposed rule change is reasonable because
consolidated volume is currently included in a competing market data
products offered by the NYSE and Nasdaq.\14\ Therefore, the Exchange
believes the proposed rule change removes impediments to and perfects
the mechanism of a free and open market and a national market system,
and, in general, protects investors and the public interest.
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\14\ See Securities Exchange Act Release No. 73553 (November 6,
2014), 79 FR 67491 (November 13, 2014) (SR-NYSE-2014-40) (Notice of
Amendment No. 1 and Order Granting Accelerated Approval to a
Proposed Rule Change, as Modified by Amendment No. 1, To Establish
the NYSE Best Quote & Trades (``BQT'') Data Feed); https://www.nyxdata.com/Data-Products/NYSE-Best-Quote-and-Trades (last
visited May 27, 2014) (data feed providing unified view of BBO and
last sale information for the NYSE, NYSE Arca, and NYSE MKT) (``NYSE
BQT Approval Order''). See also Nasdaq Basic, https://www.nasdaqtrader.com/Trader.aspx?id=nasdaqbasic (last visited March
26, 2015) (data feed offering the BBO and Last Sale information for
all U.S. exchange-listed securities based on liquidity within the
Nasdaq market center, as well as trades reported to the FINRA/Nasdaq
Trade Reporting Facility (``TRF'')); and Nasdaq NLS Plus, https://www.nasdaqtrader.com/Trader.aspx?id=NLSplus (last visited July 8,
2014) (data feed providing last sale data as well as consolidated
volume from the following Nasdaq OMX markets for U.S. exchange-
listed securities: Nasdaq, FINRA/Nasdaq TRF, Nasdaq OMX BX, and
Nasdaq OMX PSX).
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Lastly, the proposal would not permit unfair discrimination because
the consolidated volume will be available to all of the Exchange's
customers and market data vendors on an equivalent basis. In addition,
any customer that wishes to receive consolidated volume via a different
source will be able to do so.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes that the proposed rule
change will enhance competition because it would enable the Exchange to
include consolidated volume as part of the BATS One Feed, thereby
enabling it to better compete with similar market data products
currently offered by the NYSE and Nasdaq that include such volume.\15\
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\15\ See id. (noting that NYSE BQT and NLS Plus carry
consolidated volume for all listed equities).
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Finally, although the BATS Exchanges are the exclusive distributors
of the individual data feeds from which certain data elements would be
taken to create the BATS One Feed, the Exchange is not the exclusive
distributor of the consolidated volume that would be included in the
BATS One Feed. A vendor seeking to offer a similar product and include
consolidated volume would be able to do so on the same terms as the
Exchange from a cost perspective. As discussed in in the BATS One
Approval Order,\16\ any entity may separately purchase the individual
underlying products, and if they so choose, perform a similar
aggregation and consolidation function that the Exchange performs in
creating the BATS One Feed, and offer a data feed with the same
information included in the BATS One Feed to sell and distribute it to
its clients with no greater cost than the Exchange. Likewise, a
competing vendor could also receive consolidated volume from the
securities information processors and include it as part of their
product to be disseminated to their customers under the same terms and
policies provided to the Exchange.\17\ Therefore, the Exchange believes
the inclusion of consolidated volume in the BATS One Feed would not
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
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\16\ See BATS One Approval Order, supra note 5.
\17\ See CTA Consolidated Volume Display Policy, supra note 9.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
[[Page 21288]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \18\ and Rule 19b-
4(f)(6)(iii) thereunder.\19\
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \20\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \21\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest because it would allow
the Exchange to timely offer investors a new option for receiving
consolidated volume information. The Exchange further notes that other
exchanges currently offer similar data products that include
consolidated volume.\22\ The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposed rule change operative upon
filing.\23\
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\20\ 17 CFR 240.19b-4(f)(6).
\21\ 17 CFR 240.19b-4(f)(6)(iii).
\22\ See supra note 14 (noting that NYSE BQT and NLS Plus carry
consolidated volume for all listed equities).
\23\ For purposes only of waiving the 30-day operative delay,
the Commission has 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. 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-EDGA-2015-17 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 Number SR-EDGA-2015-17. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-EDGA-2015-17, and should be
submitted on or before May 8, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
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\24\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-08794 Filed 4-16-15; 8:45 am]
BILLING CODE 8011-01-P