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., 43806-43807 [2015-18035]

Download as PDF 43806 Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75478; File No. SR–EDGX– 2015–34] 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. July 17, 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 July 14, 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. mstockstill on DSK4VPTVN1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend its schedule of fees and rebates applicable to Members 5 and nonMembers of the Exchange pursuant to EDGX Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to correct a typographical error on the Fee Schedule and to make additional changes intended to improve the Fee Schedule. 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 15 U.S.C. 78s(b)(1). 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 that has been admitted to membership in the Exchange.’’ See Exchange Rule 1.5(n). 2 17 VerDate Sep<11>2014 18:39 Jul 22, 2015 Jkt 235001 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 submitted a proposed rule change with the Commission, for effectiveness on July 6, 2015, to modify the Exchange’s Fee Schedule.6 Pursuant to the filing, the Exchange removed various footnotes, including footnotes 11 and 12 from the prior Fee Schedule, and also added back in a new footnote 11. In connection with this change, the Exchange erroneously appended footnote 12 to a new fee code, fee code HI, even though there is no longer a footnote 12. The Exchange proposes to eliminate the reference to footnote 12 with respect to fee code HI. In addition to deleting the reference to footnote 12, the Exchange proposes to append footnote 11 to fee code HA. Fee code HA is appended to orders with a Non-Displayed 7 instruction that add liquidity. New footnote 11 that was added as of July 6, 2015, provides additional information to readers of the Fee Schedule regarding the application of the liquidity code to the Reserve Quantity 8 of orders as well as orders with a Discretionary Range 9 instruction, making clear that pricing applicable to added non-displayed liquidity does not apply to such orders. The Exchange proposes to also append this new footnote to fee code HA, which also relates to orders with a Non-Displayed instruction. The Exchange also proposes to modify footnote 11, which, as noted above, was recently added by the Exchange. The current footnote states that the ‘‘fee’’ for adding non-displayed liquidity does not apply to the Reserve Quantity of an order or an order with a Discretionary Range instruction. In this case, the Exchange intended the term ‘‘fee’’ to mean ‘‘pricing.’’ However, to avoid confusion, given that the current pricing for adding non-displayed liquidity yielding either fee code HA or HI is 6 See Securities Exchange Act Release No. 75435 (July 13, 2015) (SR–EDGX–2015–32). 7 See Exchange Rule 11.6(e)(2). 8 See Exchange Rule 11.6(m). 9 See Exchange Rule 11.6(d). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 either without fee or results in a rebate, the Exchange proposes to amend the footnote to read that the ‘‘fee or rebate’’ for adding non-displayed liquidity does not apply to the Reserve Quantity of an order or an order with a Discretionary Range instruction. Finally, the Exchange notes that each of the above proposed changes do not amend the amount or application of any fee or rebate. Implementation Date The Exchange proposes to implement these amendments to its Fee Schedule immediately. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,10 in general, and furthers the objectives of Section 6(b)(4),11 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. Specifically, the Exchange believes it is equitable, reasonable and nondiscriminatory to delete fee reference to footnote 12, append footnote 11 to fee code HA, and modify footnote 11 as described above because each of these changes are designed to avoid investor confusion and improve the Exchange’s Fee Schedule. (B) Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition. The proposed rule change corrects a typographical error recently introduced to the Fee Schedule and also provides additional information to readers of the Fee Schedule by appending footnote 11 to fee code HA and modifying footnote 11 as described above. The proposed changes do not amend the amount or application of any fee or rebate. (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. 10 15 11 15 E:\FR\FM\23JYN1.SGM U.S.C. 78f. U.S.C. 78f(b)(4). 23JYN1 Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and paragraph (f) of Rule 19b–4 thereunder.13 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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: mstockstill on DSK4VPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–EDGX–2015–34 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–2015–34. 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– 2015–34 and should be submitted on or before August 13, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–18035 Filed 7–22–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–75482; File No. SR–ISE– 2015–23] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Price Improvement Mechanism Pilot Program July 17, 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 July 16, 2015, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) 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 selfregulatory organization. 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 ISE proposes to extend two pilot programs related to its Price Improvement Mechanism (‘‘PIM’’). The text of the proposed rule change is available on the Exchange’s Web site www.ise.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f). VerDate Sep<11>2014 18:39 Jul 22, 2015 1 15 Jkt 235001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 43807 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange currently has two pilot programs related to its PIM (collectively, the ‘‘PIM Pilot Programs’’ or ‘‘Pilot Programs’’).3 The current Pilot Period provided in paragraphs .03 and .05 of the Supplementary Material to Rule 723 is set to expire on July 17, 2015.4 Paragraph .03 provides that there is no minimum size requirement for orders to be eligible for the Price Improvement Mechanism. Paragraph .05 concerns the termination of the exposure period by unrelated orders. In accordance with the Approval Order, the Exchange has continually submitted certain data in support of extending the current Pilot Programs. The Exchange proposes to extend these Pilot Programs in their present form, through July 18, 2016, to give the Exchange and the Commission additional time to evaluate the effects of these Pilot Programs before the Exchange requests permanent approval of the rules. To aid the Commission in its evaluation of the PIM Functionality, ISE represents that it will provide 3 See Securities Exchange Act Release Nos. 50819 (December 8, 2004), 69 FR 75093 (December 15, 2004) (SR–ISE–2003–06) (Approving the PIM pilot (the ‘‘Approval Order’’)); 52027 (July 13, 2005), 70 FR 41804 (July 20, 2005) (SR–ISE–2005–30); 54146 (July 14, 2006), 71 FR 41490 (July 21, 2006) (SR– ISE–2006–39); 56106 (July 19, 2007), 72 FR 40914 (July 25, 2007) (SR–ISE–2007–62); 56156 (July 27, 2007), 72 FR 43305 (August 3, 2007) (SR–ISE–2007– 66); 58197 (July 18, 2008), 73 FR 43810 (July 28, 2008) (SR–ISE–2008–60); 60333 (July 17, 2009), 74 FR 36792 (July 24, 2009) (SR–ISE–2009–52); 62513 (July 16, 2010), 75 FR 43221 (July 23, 2010) (SR– ISE–2010–75); 64931 (July 20, 2011), 76 FR 44642 (July 26, 2011) (SR–ISE–2011–41); 67202 (June 14, 2012), 77 FR 36589 (June 19, 2012) (SR–ISE–2012– 54); 69853 (June 25, 2013), 78 FR 39390 (July 1, 2013) (SR–ISE–2013–41); and 72467 (June 25, 2014), 79 FR 37377 (July 1, 2014) (SR–ISE–2014– 33). 4 See Securities Exchange Act Release No. 34– 72467 (June 25, 2014), 79 FR 37377 (July 1, 2014) (SR–ISE–2014–33). E:\FR\FM\23JYN1.SGM 23JYN1

Agencies

[Federal Register Volume 80, Number 141 (Thursday, July 23, 2015)]
[Notices]
[Pages 43806-43807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18035]



[[Page 43806]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75478; File No. SR-EDGX-2015-34]


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.

July 17, 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 July 14, 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.


---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend its schedule of fees and 
rebates applicable to Members \5\ and non-Members of the Exchange 
pursuant to EDGX Rule 15.1(a) and (c) (``Fee Schedule'') to correct a 
typographical error on the Fee Schedule and to make additional changes 
intended to improve the Fee Schedule.
---------------------------------------------------------------------------

    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
---------------------------------------------------------------------------

    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 submitted a proposed rule change with the Commission, 
for effectiveness on July 6, 2015, to modify the Exchange's Fee 
Schedule.\6\ Pursuant to the filing, the Exchange removed various 
footnotes, including footnotes 11 and 12 from the prior Fee Schedule, 
and also added back in a new footnote 11. In connection with this 
change, the Exchange erroneously appended footnote 12 to a new fee 
code, fee code HI, even though there is no longer a footnote 12. The 
Exchange proposes to eliminate the reference to footnote 12 with 
respect to fee code HI.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 75435 (July 13, 
2015) (SR-EDGX-2015-32).
---------------------------------------------------------------------------

    In addition to deleting the reference to footnote 12, the Exchange 
proposes to append footnote 11 to fee code HA. Fee code HA is appended 
to orders with a Non-Displayed \7\ instruction that add liquidity. New 
footnote 11 that was added as of July 6, 2015, provides additional 
information to readers of the Fee Schedule regarding the application of 
the liquidity code to the Reserve Quantity \8\ of orders as well as 
orders with a Discretionary Range \9\ instruction, making clear that 
pricing applicable to added non-displayed liquidity does not apply to 
such orders. The Exchange proposes to also append this new footnote to 
fee code HA, which also relates to orders with a Non-Displayed 
instruction.
---------------------------------------------------------------------------

    \7\ See Exchange Rule 11.6(e)(2).
    \8\ See Exchange Rule 11.6(m).
    \9\ See Exchange Rule 11.6(d).
---------------------------------------------------------------------------

    The Exchange also proposes to modify footnote 11, which, as noted 
above, was recently added by the Exchange. The current footnote states 
that the ``fee'' for adding non-displayed liquidity does not apply to 
the Reserve Quantity of an order or an order with a Discretionary Range 
instruction. In this case, the Exchange intended the term ``fee'' to 
mean ``pricing.'' However, to avoid confusion, given that the current 
pricing for adding non-displayed liquidity yielding either fee code HA 
or HI is either without fee or results in a rebate, the Exchange 
proposes to amend the footnote to read that the ``fee or rebate'' for 
adding non-displayed liquidity does not apply to the Reserve Quantity 
of an order or an order with a Discretionary Range instruction.
    Finally, the Exchange notes that each of the above proposed changes 
do not amend the amount or application of any fee or rebate.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\10\ in general, and 
furthers the objectives of Section 6(b)(4),\11\ 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. Specifically, the Exchange believes it is equitable, 
reasonable and non-discriminatory to delete fee reference to footnote 
12, append footnote 11 to fee code HA, and modify footnote 11 as 
described above because each of these changes are designed to avoid 
investor confusion and improve the Exchange's Fee Schedule.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition. The proposed rule change corrects a 
typographical error recently introduced to the Fee Schedule and also 
provides additional information to readers of the Fee Schedule by 
appending footnote 11 to fee code HA and modifying footnote 11 as 
described above. The proposed changes do not amend the amount or 
application of any fee or rebate.

(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.

[[Page 43807]]

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 \12\ and paragraph (f) of Rule 19b-4 
thereunder.\13\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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-2015-34 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-2015-34. 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-2015-34 and should be 
submitted on or before August 13, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18035 Filed 7-22-15; 8:45 am]
BILLING CODE 8011-01-P
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