Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc., 28742-28745 [2015-12027]

Download as PDF 28742 Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices 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–FINRA– 2015–011 and should be submitted on or before June 9, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–12030 Filed 5–18–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74950; File No. SR–EDGX– 2015–22] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGX Exchange, Inc. May 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 30, 2015, EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposed rule change 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 to amend its fees and rebates applicable to Members 5 of tkelley on DSK3SPTVN1PROD with NOTICES 13 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)(ii). 4 17 CFR 240.19b–4(f)(2). 5 The term ‘‘Member’’ is defined as ‘‘any registered broker or dealer, or any person associated with a registered broker or dealer [sic], that has been admitted to membership in the Exchange. A Member will have the status of a ‘‘member’’ of the 1 15 VerDate Sep<11>2014 16:53 May 18, 2015 Jkt 235001 the Exchange pursuant to EDGX Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to: (i) decrease the rebate for orders yielding fee code BY, which routes to the BATS Y-Exchange, Inc. (‘‘BYX’’) and removes liquidity using routing strategies Destination Specific (‘‘DIRC’’), ROUC, or ROUE; 6 (ii) decrease the standard rate charged for removing liquidity from the Exchange from $0.0030 per share to $0.0029 per share; and (iii) make a few non-substantive clarifying changes. Changes to the fee schedule pursuant to this proposal are effective upon filing. 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. fee code BY to $0.00150 per share in securities priced at or above $1.00.7 The proposed change represents a pass through of the rate BATS Trading, Inc. (‘‘BATS Trading’’), the Exchange’s affiliated routing broker-dealer, is provided for routing orders to BYX that remove liquidity. The proposed change is in response to BYX’s May 2015 fee change where BYX decreased its rebate from $0.00160 per share to $0.00150 per share for orders in securities priced at or above $1.00.8 When BATS Trading routes to and removes liquidity from BYX, it will now receive a standard rebate of $0.00150 per share. BATS Trading will pass through the rebate provided by BYX to the Exchange and the Exchange, in turn, will pass through this rate to its Members. 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. Standard Removal Rate Change (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to: (i) Decrease the rebate for orders yielding fee code BY, which routes to BYX and removes liquidity using routing strategies DIRC, ROUC, or ROUE; (ii) decrease the standard rate charged for removing liquidity from the Exchange from $0.0030 per share to $0.0029 per share; and (iii) make a few nonsubstantive clarifying changes. Fee Code BY In securities priced at or above $1.00, the Exchange currently provides a rebate of $0.00160 per share for Members’ orders that yield fee code BY, which routes to BYX and removes liquidity using routing strategies DIRC, ROUC, or ROUE. The Exchange proposes to amend its Fee Schedule to decrease the rebate for orders that yield Exchange as that term is defined in Section 3(a)(3) of the Act.’’ See Exchange Rule 1.5(n). 6 The DIRC, ROUC, and ROUE routing strategies are set forth in Exchange Rule 11.11(g). PO 00000 Frm 00164 Fmt 4703 Sfmt 4703 In securities priced at or above $1.00, the Exchange currently charges a fee or $0.0030 per share when removing liquidity. The Exchange now proposes to decrease the standard rate charged for removing liquidity from the Exchange from $0.0030 per share to $0.0029 per share in securities priced at or above $1.00.9 The standard removal rate applies unless a Member’s transaction is assigned a fee code other than a standard fee code. If a Member’s transaction is assigned a fee code other than a standard fee code, the rates listed in the Fee Codes table of the Fee Schedule will apply. The standard rate for removing liquidity from the Exchange will be $0.0029 per share and no lower fees will be available if a Member qualifies for a tier included in footnote 1 of the Fee Schedule. Therefore, the Exchange proposes to make a series of changes to the Fee Schedule as a result of decreasing the standard rate to $0.0029 per share. First, the Exchange proposes to amend footnote 1 to remove references to reduced fees for removing or routing liquidity from the Exchange. Under footnote 1, if a Member satisfies the respective tier’s criteria, they would be charged a reduced fee of: (i) $0.0029 per share under Mega Tier 1; (ii) $0.0029 per share under Mega Tier 2; or (iii) $$0.00295 per share under Mega 7 The Exchange does not propose to amend its fee for orders that yield fee code BY in securities priced below $1.00. 8 See BYX Exchange Fee Schedule Changes Effective May 1, 2015 available at https:// cdn.batstrading.com/resources/fee_schedule/2015/ BATS-BYX-Exchange-BZX-Exchange-EDGAExchange-and-EDGX-Exchange-Fee-ScheduleChanges-Effective-May-1-2015.pdf. 9 The Exchange does not propose to amend its standard rate for orders in securities priced below $1.00. E:\FR\FM\19MYN1.SGM 19MYN1 Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices tkelley on DSK3SPTVN1PROD with NOTICES Tier 3.10 Going forward, Members will be charged the standard removal rate of $0.0029 per share regardless of whether they satisfy the criteria for Mega Tier 1 or Mega Tier 2. Members will also be charged the reduced standard removal rate of $0.0029 per share, rather than $0.00295 per share, if they satisfy the criteria for Mega Tier 3. Therefore, the Exchange proposes to delete the references under footnote 1 to reduced fees for removing of routing liquidity from the Exchange as Members will be charged the reduced standard removal rate regardless of whether they meet any of the above referenced tiers’ criteria. As a result of the above changes, the Exchange also proposes to remove language from footnote 1 listing the fee codes eligible for reduced removal fees provided by the add volume tiers included in footnote 1 as this language would be no longer necessary. Second, the Exchange proposes to delete references to footnote 1 from: (i) the standard rate for removing liquidity in securities priced above $1.00; and (ii) standard fee codes 6, 7, BB, N, RT, and W. These fee codes provide for the standard removal rate when removing liquidity from the Exchange. Footnote 1 references reduced fees charged for removing liquidity if the criteria included in the tiers within footnote 1 are satisfied. The Exchange believes references to footnote 1 discussed above are no longer necessary as the standard rate for removing liquidity from the Exchange will be $0.0029 per share and no lower fees will be available if a Member qualifies for a tier included in footnote 1. Lastly, as a result of reducing the standard rate, the Exchange proposes to amend fee codes 5, EA, and ER to reduce the fee charged for internalized trades executed on the Exchange from $0.0005 per share to $0.00045 per share. For customer internalization, which occurs when two orders presented to the Exchange from the same Member (i.e., MPID) are presented separately and not in a paired manner, but nonetheless inadvertently match with one another,11 the Exchange currently charges $0.00050 per share per side of an execution (for adding liquidity and for removing liquidity) for fee codes 5, EA, and ER.12 This charge occurs in lieu of 10 The Exchange does not propose to amend the rebates provide by or the criteria necessary to satisfy Mega Tier 1, Mega Tier 2, or Mega Tier 3. 11 Members are advised to consult Exchange Rule 12.2 respecting fictitious trading. 12 Fee codes 5 provides for a fee of $0.0005 per share per each side of an internalized trade executed on the Exchange during the Pre-Market Trading Session and Post-Market Trading Session. Fee code EA also provides for a fee of $0.0005 per VerDate Sep<11>2014 16:53 May 18, 2015 Jkt 235001 28743 the standard or tiered rebate/removal rates. Therefore, Members currently incur a total transaction cost of $0.0010 per share for both sides of an execution for customer internalization. Prior to the proposed reduction of the standard removal rate proposed herein, the Exchange charged a standard rate of $0.0030 per share for orders that remove liquidity and a standard rebate of $0.0020 per share for orders that add liquidity resulting in a maker/taker spread of $0.0010 per share, equal to the total transaction cost of $0.0010 per share for both sides of an execution for customer internalization. Going forward, the Exchange proposes to charge a standard rate of $0.0029 per share for orders that remove liquidity and will continue to provide a standard rebate of $0.0020 per share for orders that add liquidity resulting in a maker/ taker spread of $0.0009 per share. In order to ensure that the internalization fee is in line with the proposed maker/taker spread of $0.0009 for the standard add rate (rebate of $0.0020) and standard removal rate (proposed $0.0029 fee per share), the Exchange proposes to reduce the fee charged for internalized trades executed on the Exchange from $0.00050 per share to $0.00045 per share under fee codes 5, EA, and ER. The amended fee of $0.00045 per share for fee codes 5, EA, and ER would result in total transaction cost of $0.0009 per share for both sides of an execution for customer internalization, equal to the maker/taker spread of $0.0009 for the standard add and removal rates discussed above. For both tiered and standard rates, the charge for Members inadvertently matching with themselves will continue to be no more favorable than each maker/taker spread.13 The applicable rate for customer internalization thus allows the Exchange to continue to discourage potential wash sales. share for an internalized trade executed on the Exchange that adds liquidity during Regular Trading Hours. Fee code ER provides for a fee of $0.0005 per share for an internalized trade executed on the Exchange that removes liquidity during Regular Trading Hours. 13 In addition, the Exchange notes that under footnote 7 of the Fee Schedule, a Member that adds 10,000,000 shares or more of average daily volume (‘‘ADV’’) would be charged a rate of $0.0001 per share per side for customer internalization. The Exchange has a variety of tiered rebates ranging from $0.0025–$0.0034 per share, which makes its maker/taker spreads range from $0.0006 (standard removal rate—Mega Tier 1 rebate), $0.00035 (standard removal rate—Market Depth Tier 1 rebate), $0.0003 (standard removal rate—Mega Tier 2, Mega Tier 3, Mega-Step-Up Tier 1,and Investor Tier rebate),), $0.0002 (standard removal rate—Ultra Tier rebate), $0.0001 (standard removal rate—Mega Step-Up Tier 2 rebate), $0 (standard removal rate— Market Depth Tier 2 rebate), ¥$0.0001 (standard removal rate—Mega Step-Up Tier 3 and Super Tier), ¥$0.0002 (standard removal rate—Tape B Step Up Tier), and ¥$0.0004 (standard removal rate— Growth Tier rebate). As a result of the customer internalization charge, Members who internalized Implementation Date PO 00000 Frm 00165 Fmt 4703 Sfmt 4703 Non-Substantive Changes The Exchange also proposes to make the below non-substantive clarifying changes to its Fee Schedule. First, the Exchange proposes to remove ‘‘, Inc.’’ from the reference to the Exchange in the heading of the Fee Schedule. This non-substantive change is intended to make the reference to the Exchange in the heading of the Fee Schedule consistent with the manner in which its affiliated exchanges 14 are referenced in their respective fee schedules. Second, the Exchange proposes to remove an incorrect reference to footnote 4 under the standard removal rate as footnote 4 provides for a rebate of $0.0034 per share for Members meeting criteria under the Exchange’s Retail Order tier. Footnote 4 is, therefore, inapplicable to the standard removal rate. Third, the Exchange proposes to remove a reference to fee code PI from the Standard Rates table as fee code PI was previously removed from the Fee Codes and Associated Fees section of the Fee Schedule on January 16, 2015 and is no longer available.15 Lastly, the Exchange proposes to add a reference to footnote 1 to fee code ZA, which provides for a rebate of $0.0032 per share for Retail Orders 16 that add liquidity. Footnote 1 states that the rebates to add liquidity provided by the add volume tiers listed in the footnote are applicable to various fee codes, including fee code ZA. Therefore, the Exchange believes that adding a reference to footnote 1 following fee code ZA will improve the understandability of the Exchange’s Fee Schedule because footnote 1 does expressly apply to that fee code. The Exchange proposes to implement these amendments to its Fee Schedule immediately. would be charged $0.0001 per share per side of an execution (total of $0.0002 per share) or $0.0045 per share per side (total of $0.0009 per share) instead of capturing the maker/taker spreads resulting from achieving the tiered rebates. 14 The Exchange’s affiliated exchanges are BATS Exchange, Inc., BATS Y-Exchange, Inc., and EDGA Exchange, Inc. (‘‘EDGA’’). The Exchange understands that EDGX also intends to file a proposed rule change with the Commission making a similar change to how EDGA is referenced in the heading of its fee schedule. 15 See Securities Exchange Act Release No. 74165 (January 28, 2015), 80 FR 5854 (February 3, 2015) (SR–EDGX–2015–04) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Make Non-Substantive Amendments and Clarifications to the Fee Schedule). 16 ‘‘Retail Order’’ is defined under Exchange Rule 11.21(a). E:\FR\FM\19MYN1.SGM 19MYN1 28744 Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,17 in general, and furthers the objectives of Section 6(b)(4),18 in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange also notes that it operates in a highly-competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. The proposed rule change reflects a competitive pricing structure designed to incent [sic] market participants to direct their order flow to the Exchange. The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members. The Exchange believes the fees and credits remain competitive with those charged by other venues and therefore continue to be reasonable and equitably allocated to Members. tkelley on DSK3SPTVN1PROD with NOTICES Fee Code BY The Exchange believes that its proposal to decrease the rebate for orders that yield fee code BY represents an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities. Prior to the BYX’s May 2015 fee change, BYX provided BATS Trading a rebate of $0.00160 per share to remove liquidity in securities priced at or above $1.00, which BATS Trading passed through to the Exchange and the Exchange provided its Members. When BATS Trading routes to BYX, it will now be provided a rebate of $0.00150 per share. The Exchange does not levy additional fees or offer additional rebates for orders that it routes to BYX through BATS Trading. Therefore, the Exchange believes that the proposed change to fee code BY is equitable and reasonable because it accounts for the pricing changes on BYX, which enables the Exchange to provide its Members the applicable pass-through rebate. Lastly, the Exchange notes that routing through BATS Trading is voluntary and believes that the proposed change is non-discriminatory because it applies uniformly to all Members. Standard Removal Rate Change The Exchange believes that its proposal to lower the standard removal rate from $0.0030 per share to $0.0029 per share, as well as related changes 17 15 18 15 U.S.C. 78f. U.S.C. 78f(b)(4). VerDate Sep<11>2014 16:53 May 18, 2015 Jkt 235001 made throughout the Fee Schedule, represent an equitable allocation of reasonable dues, fees and other charges as it will enable the Exchange to decrease trading cost for Members who remove liquidity from the Exchange. Decreasing the standard removal rate is designed to attract additional liquidity to the Exchange, thereby increasing depth of the Exchange’s order book, resulting in improved price discovery for all investors. The rate is also equitable and reasonable as compared to the fees for removing liquidity charged by The Nasdaq Stock Market LLC (‘‘Nasdaq’’) (removal rate of $0.0030 per share) and NYSE Arca, Inc. (‘‘NYSE Arca’’) (removal rate of $0.0030 per share for Tape A and Tape C securities).19 The Exchange believes references to footnote 1 as well as removing the fees to remove liquidity from Mega Tier 1, Mega Tier 2, and Mega Tier 3, as referenced above, are also equitable and reasonable because such provisions are no longer necessary as the standard rate for removing all liquidity from the Exchange will be $0.0029 per share, which is equal to or lower than the current removal rated provided for in those tiers. The proposed standard removal rate is also non-discriminatory in that it applies uniformly to all Members. The Exchange believes that decreasing the fee for customer internalization from $0.00050 to $0.00045 per share per side of an execution for fee codes EA, ER, and 5 represents an equitable allocation of reasonable dues, fees, and other charges as it is designed to discourage Members from inadvertently matching with one another and potential wash sales. The revised fee also allows the Exchange to offset its administrative, clearing, and other operating costs incurred in executing such trades. Finally, the fee is equitable and reasonable because it total transaction cost of for both sides of an execution for customer internalization will continue to be equal to the maker/taker spread of $0.0009 for the standard add and removal rates discussed above.20 The Exchange believes that the proposed 19 See Nasdaq, Price List—Trading & Connectivity, available at https:// www.nasdaqtrader.com/ Trader.aspx?id=PriceListTrading2. See also the NYSE Arca Schedule of Fees and Charges for Exchange Services, dated April 20, 2015 available at https://www.nyse.com/publicdocs/nyse/markets/ nyse-arca/NYSE_Arca_Marketplace_Fees.pdf. 20 In each case, the internalization fee is no more favorable to the Member than each prevailing maker/taker spread. The Exchange will continue to ensure that the internalization fee is no more favorable than each prevailing maker/taker spread. PO 00000 Frm 00166 Fmt 4703 Sfmt 4703 rate is non-discriminatory in that it applies uniformly to all Members. Non-Substantive Changes The Exchange believes that the nonsubstantive clarifying changes to its Fee Schedule are reasonable because they are not designed to amend any fee, nor alter the manner in which it assesses fees or calculates rebates. These proposed changes to the Fee Schedule are intended to make the reference to the Exchange in the heading of the Fee Schedule consistent with the manner in which its affiliated exchanges are referenced in their respective fee schedules, while the clarifying changes to remove reference to footnote 4 under the standard removal rate and add a reference to footnote 1 to fee code ZA are intended to add clarity to the Fee Schedule and avoid investor confusion. Therefore, the Exchange believes these changes will 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. (B) Self-Regulatory Organization’s Statement on Burden on Competition The Exchange believes its proposed amendments to its Fee Schedule would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed change represents a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange’s competitors. Additionally, Members may opt to disfavor the Exchange’s pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. Fee Code BY The Exchange believes that its proposal to pass through the amended rebate for orders that yield fee code BY would increase intermarket competition because it offers customers an alternative means to route to BYX for the same rebate that they would be provided if they entered orders on that trading center directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rebate would apply uniformly to all Members. Standard Removal Rate Change The Exchange believes that its proposal to lower the standard removal E:\FR\FM\19MYN1.SGM 19MYN1 Federal Register / Vol. 80, No. 96 / Tuesday, May 19, 2015 / Notices rate from $0.0030 per share to $0.0029 per share will also assist in increasing competition in that its proposed rebate is lower than the standard fees for removing liquidity offered by Nasdaq (removal rate of $0.0030 per share) and NYSE Arca (removal rate of $0.0030 per share for Tape A and Tape C securities).21 The Exchange believes that its internalization rates for securities priced $1.00 and above will also not burden intermarket or intramarket competition as the proposed rates are no more favorable than Members achieving the maker/taker spreads between the standard add and remove rates on the Exchange. Non-Substantive Changes The Exchange believes that the proposed non-substantive clarifying changes to the Fee Schedule will not affect intermarket nor intramarket competition because these changes are not designed to amend any fee or alter the manner in which the Exchange assesses fees or calculates rebates. (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 22 and paragraph (f) of Rule 19b–4 thereunder.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 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 proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: supra note 19. U.S.C. 78s(b)(3)(A). 23 17 CFR 240.19b–4(f). 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– EDGX–2015–22 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–EDGX–2015–22. 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 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 Number SR–EDGX– 2015–22 and should be submitted on or before June 9, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.24 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–12027 Filed 5–18–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74949; File No. SR–EDGX– 2015–18] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing of Proposed Rule Change To Establish Rules Governing the Trading of Options on the EDGX Options Exchange May 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 30, 2015, EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) 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 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 adopt rules to govern the trading of options on the Exchange (referred to herein as ‘‘EDGX Options Exchange’’ or ‘‘EDGX Options’’). As described more fully below, the EDGX Options Exchange will operate a fully automated, Customer priority/pro rata allocation model. The fundamental premise of the proposal is that the Exchange will operate its options market in a similar manner to the options exchange operated by the Exchange’s affiliate, BATS Exchange, Inc. (‘‘BZX Options’’), with the exception of the proposed priority model and certain other limited differences. 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 21 See 22 15 VerDate Sep<11>2014 16:53 May 18, 2015 1 15 24 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00167 Fmt 4703 Sfmt 4703 28745 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\19MYN1.SGM 19MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 80, Number 96 (Tuesday, May 19, 2015)]
[Notices]
[Pages 28742-28745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12027]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74950; File No. SR-EDGX-2015-22]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use of EDGX Exchange, Inc.

May 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 30, 2015, EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange filed a to amend its fees and rebates applicable to
Members \5\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c)
(``Fee Schedule'') to: (i) decrease the rebate for orders yielding fee
code BY, which routes to the BATS Y-Exchange, Inc. (``BYX'') and
removes liquidity using routing strategies Destination Specific
(``DIRC''), ROUC, or ROUE; \6\ (ii) decrease the standard rate charged
for removing liquidity from the Exchange from $0.0030 per share to
$0.0029 per share; and (iii) make a few non-substantive clarifying
changes. Changes to the fee schedule pursuant to this proposal are
effective upon filing.
---------------------------------------------------------------------------

\5\ The term ``Member'' is defined as ``any registered broker or
dealer, or any person associated with a registered broker or dealer
[sic], that has been admitted to membership in the Exchange. A
Member will have the status of a ``member'' of the Exchange as that
term is defined in Section 3(a)(3) of the Act.'' See Exchange Rule
1.5(n).
\6\ The DIRC, ROUC, and ROUE routing strategies are set forth in
Exchange Rule 11.11(g).
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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: (i) Decrease the rebate for orders
yielding fee code BY, which routes to BYX and removes liquidity using
routing strategies DIRC, ROUC, or ROUE; (ii) decrease the standard rate
charged for removing liquidity from the Exchange from $0.0030 per share
to $0.0029 per share; and (iii) make a few non-substantive clarifying
changes.
Fee Code BY
In securities priced at or above $1.00, the Exchange currently
provides a rebate of $0.00160 per share for Members' orders that yield
fee code BY, which routes to BYX and removes liquidity using routing
strategies DIRC, ROUC, or ROUE. The Exchange proposes to amend its Fee
Schedule to decrease the rebate for orders that yield fee code BY to
$0.00150 per share in securities priced at or above $1.00.\7\ The
proposed change represents a pass through of the rate BATS Trading,
Inc. (``BATS Trading''), the Exchange's affiliated routing broker-
dealer, is provided for routing orders to BYX that remove liquidity.
The proposed change is in response to BYX's May 2015 fee change where
BYX decreased its rebate from $0.00160 per share to $0.00150 per share
for orders in securities priced at or above $1.00.\8\ When BATS Trading
routes to and removes liquidity from BYX, it will now receive a
standard rebate of $0.00150 per share. BATS Trading will pass through
the rebate provided by BYX to the Exchange and the Exchange, in turn,
will pass through this rate to its Members.
---------------------------------------------------------------------------

\7\ The Exchange does not propose to amend its fee for orders
that yield fee code BY in securities priced below $1.00.
\8\ See BYX Exchange Fee Schedule Changes Effective May 1, 2015
available at https://cdn.batstrading.com/resources/fee_schedule/2015/BATS-BYX-Exchange-BZX-Exchange-EDGA-Exchange-and-EDGX-Exchange-Fee-Schedule-Changes-Effective-May-1-2015.pdf.
---------------------------------------------------------------------------

Standard Removal Rate Change
In securities priced at or above $1.00, the Exchange currently
charges a fee or $0.0030 per share when removing liquidity. The
Exchange now proposes to decrease the standard rate charged for
removing liquidity from the Exchange from $0.0030 per share to $0.0029
per share in securities priced at or above $1.00.\9\ The standard
removal rate applies unless a Member's transaction is assigned a fee
code other than a standard fee code. If a Member's transaction is
assigned a fee code other than a standard fee code, the rates listed in
the Fee Codes table of the Fee Schedule will apply.
---------------------------------------------------------------------------

\9\ The Exchange does not propose to amend its standard rate for
orders in securities priced below $1.00.
---------------------------------------------------------------------------

The standard rate for removing liquidity from the Exchange will be
$0.0029 per share and no lower fees will be available if a Member
qualifies for a tier included in footnote 1 of the Fee Schedule.
Therefore, the Exchange proposes to make a series of changes to the Fee
Schedule as a result of decreasing the standard rate to $0.0029 per
share. First, the Exchange proposes to amend footnote 1 to remove
references to reduced fees for removing or routing liquidity from the
Exchange. Under footnote 1, if a Member satisfies the respective tier's
criteria, they would be charged a reduced fee of: (i) $0.0029 per share
under Mega Tier 1; (ii) $0.0029 per share under Mega Tier 2; or (iii)
$$0.00295 per share under Mega

[[Page 28743]]

Tier 3.\10\ Going forward, Members will be charged the standard removal
rate of $0.0029 per share regardless of whether they satisfy the
criteria for Mega Tier 1 or Mega Tier 2. Members will also be charged
the reduced standard removal rate of $0.0029 per share, rather than
$0.00295 per share, if they satisfy the criteria for Mega Tier 3.
Therefore, the Exchange proposes to delete the references under
footnote 1 to reduced fees for removing of routing liquidity from the
Exchange as Members will be charged the reduced standard removal rate
regardless of whether they meet any of the above referenced tiers'
criteria. As a result of the above changes, the Exchange also proposes
to remove language from footnote 1 listing the fee codes eligible for
reduced removal fees provided by the add volume tiers included in
footnote 1 as this language would be no longer necessary.
---------------------------------------------------------------------------

\10\ The Exchange does not propose to amend the rebates provide
by or the criteria necessary to satisfy Mega Tier 1, Mega Tier 2, or
Mega Tier 3.
---------------------------------------------------------------------------

Second, the Exchange proposes to delete references to footnote 1
from: (i) the standard rate for removing liquidity in securities priced
above $1.00; and (ii) standard fee codes 6, 7, BB, N, RT, and W. These
fee codes provide for the standard removal rate when removing liquidity
from the Exchange. Footnote 1 references reduced fees charged for
removing liquidity if the criteria included in the tiers within
footnote 1 are satisfied. The Exchange believes references to footnote
1 discussed above are no longer necessary as the standard rate for
removing liquidity from the Exchange will be $0.0029 per share and no
lower fees will be available if a Member qualifies for a tier included
in footnote 1.
Lastly, as a result of reducing the standard rate, the Exchange
proposes to amend fee codes 5, EA, and ER to reduce the fee charged for
internalized trades executed on the Exchange from $0.0005 per share to
$0.00045 per share. For customer internalization, which occurs when two
orders presented to the Exchange from the same Member (i.e., MPID) are
presented separately and not in a paired manner, but nonetheless
inadvertently match with one another,\11\ the Exchange currently
charges $0.00050 per share per side of an execution (for adding
liquidity and for removing liquidity) for fee codes 5, EA, and ER.\12\
This charge occurs in lieu of the standard or tiered rebate/removal
rates. Therefore, Members currently incur a total transaction cost of
$0.0010 per share for both sides of an execution for customer
internalization.
---------------------------------------------------------------------------

\11\ Members are advised to consult Exchange Rule 12.2
respecting fictitious trading.
\12\ Fee codes 5 provides for a fee of $0.0005 per share per
each side of an internalized trade executed on the Exchange during
the Pre-Market Trading Session and Post-Market Trading Session. Fee
code EA also provides for a fee of $0.0005 per share for an
internalized trade executed on the Exchange that adds liquidity
during Regular Trading Hours. Fee code ER provides for a fee of
$0.0005 per share for an internalized trade executed on the Exchange
that removes liquidity during Regular Trading Hours.
---------------------------------------------------------------------------

Prior to the proposed reduction of the standard removal rate
proposed herein, the Exchange charged a standard rate of $0.0030 per
share for orders that remove liquidity and a standard rebate of $0.0020
per share for orders that add liquidity resulting in a maker/taker
spread of $0.0010 per share, equal to the total transaction cost of
$0.0010 per share for both sides of an execution for customer
internalization. Going forward, the Exchange proposes to charge a
standard rate of $0.0029 per share for orders that remove liquidity and
will continue to provide a standard rebate of $0.0020 per share for
orders that add liquidity resulting in a maker/taker spread of $0.0009
per share.
In order to ensure that the internalization fee is in line with the
proposed maker/taker spread of $0.0009 for the standard add rate
(rebate of $0.0020) and standard removal rate (proposed $0.0029 fee per
share), the Exchange proposes to reduce the fee charged for
internalized trades executed on the Exchange from $0.00050 per share to
$0.00045 per share under fee codes 5, EA, and ER. The amended fee of
$0.00045 per share for fee codes 5, EA, and ER would result in total
transaction cost of $0.0009 per share for both sides of an execution
for customer internalization, equal to the maker/taker spread of
$0.0009 for the standard add and removal rates discussed above. For
both tiered and standard rates, the charge for Members inadvertently
matching with themselves will continue to be no more favorable than
each maker/taker spread.\13\ The applicable rate for customer
internalization thus allows the Exchange to continue to discourage
potential wash sales.
---------------------------------------------------------------------------

\13\ In addition, the Exchange notes that under footnote 7 of
the Fee Schedule, a Member that adds 10,000,000 shares or more of
average daily volume (``ADV'') would be charged a rate of $0.0001
per share per side for customer internalization. The Exchange has a
variety of tiered rebates ranging from $0.0025-$0.0034 per share,
which makes its maker/taker spreads range from $0.0006 (standard
removal rate--Mega Tier 1 rebate), $0.00035 (standard removal rate--
Market Depth Tier 1 rebate), $0.0003 (standard removal rate--Mega
Tier 2, Mega Tier 3, Mega-Step-Up Tier 1,and Investor Tier
rebate),), $0.0002 (standard removal rate--Ultra Tier rebate),
$0.0001 (standard removal rate--Mega Step-Up Tier 2 rebate), $0
(standard removal rate--Market Depth Tier 2 rebate), -$0.0001
(standard removal rate--Mega Step-Up Tier 3 and Super Tier), -
$0.0002 (standard removal rate--Tape B Step Up Tier), and -$0.0004
(standard removal rate--Growth Tier rebate). As a result of the
customer internalization charge, Members who internalized would be
charged $0.0001 per share per side of an execution (total of $0.0002
per share) or $0.0045 per share per side (total of $0.0009 per
share) instead of capturing the maker/taker spreads resulting from
achieving the tiered rebates.
---------------------------------------------------------------------------

Non-Substantive Changes
The Exchange also proposes to make the below non-substantive
clarifying changes to its Fee Schedule. First, the Exchange proposes to
remove ``, Inc.'' from the reference to the Exchange in the heading of
the Fee Schedule. This non-substantive change is intended to make the
reference to the Exchange in the heading of the Fee Schedule consistent
with the manner in which its affiliated exchanges \14\ are referenced
in their respective fee schedules. Second, the Exchange proposes to
remove an incorrect reference to footnote 4 under the standard removal
rate as footnote 4 provides for a rebate of $0.0034 per share for
Members meeting criteria under the Exchange's Retail Order tier.
Footnote 4 is, therefore, inapplicable to the standard removal rate.
Third, the Exchange proposes to remove a reference to fee code PI from
the Standard Rates table as fee code PI was previously removed from the
Fee Codes and Associated Fees section of the Fee Schedule on January
16, 2015 and is no longer available.\15\ Lastly, the Exchange proposes
to add a reference to footnote 1 to fee code ZA, which provides for a
rebate of $0.0032 per share for Retail Orders \16\ that add liquidity.
Footnote 1 states that the rebates to add liquidity provided by the add
volume tiers listed in the footnote are applicable to various fee
codes, including fee code ZA. Therefore, the Exchange believes that
adding a reference to footnote 1 following fee code ZA will improve the
understandability of the Exchange's Fee Schedule because footnote 1
does expressly apply to that fee code.
---------------------------------------------------------------------------

\14\ The Exchange's affiliated exchanges are BATS Exchange,
Inc., BATS Y-Exchange, Inc., and EDGA Exchange, Inc. (``EDGA''). The
Exchange understands that EDGX also intends to file a proposed rule
change with the Commission making a similar change to how EDGA is
referenced in the heading of its fee schedule.
\15\ See Securities Exchange Act Release No. 74165 (January 28,
2015), 80 FR 5854 (February 3, 2015) (SR-EDGX-2015-04) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Make
Non-Substantive Amendments and Clarifications to the Fee Schedule).
\16\ ``Retail Order'' is defined under Exchange Rule 11.21(a).
---------------------------------------------------------------------------

Implementation Date
The Exchange proposes to implement these amendments to its Fee
Schedule immediately.

[[Page 28744]]

2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\17\ in general, and
furthers the objectives of Section 6(b)(4),\18\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also notes that it operates in a highly-
competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be excessive. The proposed rule change reflects a competitive
pricing structure designed to incent [sic] market participants to
direct their order flow to the Exchange. The Exchange believes that the
proposed rates are equitable and non-discriminatory in that they apply
uniformly to all Members. The Exchange believes the fees and credits
remain competitive with those charged by other venues and therefore
continue to be reasonable and equitably allocated to Members.
---------------------------------------------------------------------------

\17\ 15 U.S.C. 78f.
\18\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

Fee Code BY
The Exchange believes that its proposal to decrease the rebate for
orders that yield fee code BY represents an equitable allocation of
reasonable dues, fees, and other charges among Members and other
persons using its facilities. Prior to the BYX's May 2015 fee change,
BYX provided BATS Trading a rebate of $0.00160 per share to remove
liquidity in securities priced at or above $1.00, which BATS Trading
passed through to the Exchange and the Exchange provided its Members.
When BATS Trading routes to BYX, it will now be provided a rebate of
$0.00150 per share. The Exchange does not levy additional fees or offer
additional rebates for orders that it routes to BYX through BATS
Trading. Therefore, the Exchange believes that the proposed change to
fee code BY is equitable and reasonable because it accounts for the
pricing changes on BYX, which enables the Exchange to provide its
Members the applicable pass-through rebate. Lastly, the Exchange notes
that routing through BATS Trading is voluntary and believes that the
proposed change is non-discriminatory because it applies uniformly to
all Members.
Standard Removal Rate Change
The Exchange believes that its proposal to lower the standard
removal rate from $0.0030 per share to $0.0029 per share, as well as
related changes made throughout the Fee Schedule, represent an
equitable allocation of reasonable dues, fees and other charges as it
will enable the Exchange to decrease trading cost for Members who
remove liquidity from the Exchange. Decreasing the standard removal
rate is designed to attract additional liquidity to the Exchange,
thereby increasing depth of the Exchange's order book, resulting in
improved price discovery for all investors. The rate is also equitable
and reasonable as compared to the fees for removing liquidity charged
by The Nasdaq Stock Market LLC (``Nasdaq'') (removal rate of $0.0030
per share) and NYSE Arca, Inc. (``NYSE Arca'') (removal rate of $0.0030
per share for Tape A and Tape C securities).\19\ The Exchange believes
references to footnote 1 as well as removing the fees to remove
liquidity from Mega Tier 1, Mega Tier 2, and Mega Tier 3, as referenced
above, are also equitable and reasonable because such provisions are no
longer necessary as the standard rate for removing all liquidity from
the Exchange will be $0.0029 per share, which is equal to or lower than
the current removal rated provided for in those tiers. The proposed
standard removal rate is also non-discriminatory in that it applies
uniformly to all Members.
---------------------------------------------------------------------------

\19\ See Nasdaq, Price List--Trading & Connectivity, available
at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2. See
also the NYSE Arca Schedule of Fees and Charges for Exchange
Services, dated April 20, 2015 available at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf.
---------------------------------------------------------------------------

The Exchange believes that decreasing the fee for customer
internalization from $0.00050 to $0.00045 per share per side of an
execution for fee codes EA, ER, and 5 represents an equitable
allocation of reasonable dues, fees, and other charges as it is
designed to discourage Members from inadvertently matching with one
another and potential wash sales. The revised fee also allows the
Exchange to offset its administrative, clearing, and other operating
costs incurred in executing such trades. Finally, the fee is equitable
and reasonable because it total transaction cost of for both sides of
an execution for customer internalization will continue to be equal to
the maker/taker spread of $0.0009 for the standard add and removal
rates discussed above.\20\ The Exchange believes that the proposed rate
is non-discriminatory in that it applies uniformly to all Members.
---------------------------------------------------------------------------

\20\ In each case, the internalization fee is no more favorable
to the Member than each prevailing maker/taker spread. The Exchange
will continue to ensure that the internalization fee is no more
favorable than each prevailing maker/taker spread.
---------------------------------------------------------------------------

Non-Substantive Changes
The Exchange believes that the non-substantive clarifying changes
to its Fee Schedule are reasonable because they are not designed to
amend any fee, nor alter the manner in which it assesses fees or
calculates rebates. These proposed changes to the Fee Schedule are
intended to make the reference to the Exchange in the heading of the
Fee Schedule consistent with the manner in which its affiliated
exchanges are referenced in their respective fee schedules, while the
clarifying changes to remove reference to footnote 4 under the standard
removal rate and add a reference to footnote 1 to fee code ZA are
intended to add clarity to the Fee Schedule and avoid investor
confusion. Therefore, the Exchange believes these changes will 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.

(B) Self-Regulatory Organization's Statement on Burden on Competition

The Exchange believes its proposed amendments to its Fee Schedule
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
does not believe that the proposed change represents a significant
departure from previous pricing offered by the Exchange or pricing
offered by the Exchange's competitors. Additionally, Members may opt to
disfavor the Exchange's pricing if they believe that alternatives offer
them better value. Accordingly, the Exchange does not believe that the
proposed change will impair the ability of Members or competing venues
to maintain their competitive standing in the financial markets.
Fee Code BY
The Exchange believes that its proposal to pass through the amended
rebate for orders that yield fee code BY would increase intermarket
competition because it offers customers an alternative means to route
to BYX for the same rebate that they would be provided if they entered
orders on that trading center directly. The Exchange believes that its
proposal would not burden intramarket competition because the proposed
rebate would apply uniformly to all Members.
Standard Removal Rate Change
The Exchange believes that its proposal to lower the standard
removal

[[Page 28745]]

rate from $0.0030 per share to $0.0029 per share will also assist in
increasing competition in that its proposed rebate is lower than the
standard fees for removing liquidity offered by Nasdaq (removal rate of
$0.0030 per share) and NYSE Arca (removal rate of $0.0030 per share for
Tape A and Tape C securities).\21\
---------------------------------------------------------------------------

\21\ See supra note 19.
---------------------------------------------------------------------------

The Exchange believes that its internalization rates for securities
priced $1.00 and above will also not burden intermarket or intramarket
competition as the proposed rates are no more favorable than Members
achieving the maker/taker spreads between the standard add and remove
rates on the Exchange.
Non-Substantive Changes
The Exchange believes that the proposed non-substantive clarifying
changes to the Fee Schedule will not affect intermarket nor intramarket
competition because these changes are not designed to amend any fee or
alter the manner in which the Exchange assesses fees or calculates
rebates.

(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others

The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \22\ and paragraph (f) of Rule 19b-4
thereunder.\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 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.
---------------------------------------------------------------------------

\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-EDGX-2015-22 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-EDGX-2015-22. 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 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 Number SR-EDGX-2015-22 and should be
submitted on or before June 9, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

\24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12027 Filed 5-18-15; 8:45 am]
BILLING CODE 8011-01-P

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