Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.11, Routing to Away Trading Centers, 46363-46365 [2015-19015]
Download as PDF
tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 17Ad–4(b) & (c) (17 CFR
240.17Ad–4) is used to document when
transfer agents are exempt, or no longer
exempt, from the minimum
performance standards and certain
recordkeeping provisions of the
Commission’s transfer agent rules.
Pursuant to Rule 17Ad–4(b), if the
Commission or the Office of the
Comptroller of the Currency (‘‘OCC’’) is
the appropriate regulatory authority
(‘‘ARA’’) for an exempt transfer agent,
that transfer agent is required to prepare
and maintain in its possession a notice
certifying that it is exempt from certain
performance standards and
recordkeeping and record retention
provisions of the Commission’s transfer
agent rules. This notice need not be
filed with the Commission or OCC. If
the Board of Governors of the Federal
Reserve System (‘‘Fed’’) or the Federal
Deposit Insurance Corporation (‘‘FDIC’’)
is the transfer agent’s ARA, that transfer
agent must prepare a notice and file it
with the Fed or FDIC.
Rule 17Ad–4(c) sets forth the
conditions under which a registered
transfer agent loses its exempt status.
Once the conditions for exemption no
longer exist, the transfer agent, to keep
the appropriate regulatory authority
(‘‘ARA’’) apprised of its current status,
must prepare, and file if the ARA for the
transfer agent is the Board of Governors
of the Federal Reserve System
(‘‘BGFRS’’) or the Federal Deposit
Insurance Corporation (‘‘FDIC’’), a
notice of loss of exempt status under
paragraph (c). The transfer agent then
cannot claim exempt status under Rule
17Ad–4(b) again until it remains subject
to the minimum performance standards
for non-exempt transfer agents for six
consecutive months.
ARAs use the information contained
in the notices required by Rules 17Ad–
4(b) and 17Ad–4(c) to determine
whether a registered transfer agent
qualifies for the exemption, to
determine when a registered transfer
agent no longer qualifies for the
exemption, and to determine the extent
to which that transfer agent is subject to
regulation.
The Commission estimates that
approximately 10 registered transfer
agents each year prepare or file notices
in compliance with Rules 17Ad–4(b)
and 17Ad–4(c). The Commission
estimates that each such registered
transfer agent spends approximately 1.5
hours to prepare or file such notices for
an aggregate total annual burden of 15
hours (1.5 hours times 10 transfer
agents).
VerDate Sep<11>2014
18:45 Aug 03, 2015
Jkt 235001
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid Office of Management and
Budget control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: July 28, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–19013 Filed 8–3–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75550; File No. SR–EDGA–
2015–28]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to Rule 11.11, Routing to
Away Trading Centers
July 29, 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 21,
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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00130
Fmt 4703
Sfmt 4703
46363
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend Rule 11.11, Routing to Away
Trading Centers, to: (i) Delete references
to the ROOC routing option; and (ii)
update routing options IOCM and ICMT
to reflect a recent proposed rule change
by EDGX Exchange, Inc. (‘‘EDGX’’) in
which EDGX replaced the MidPoint
Match Order with the MidPoint Peg
Order.5
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
Rule 11.11, Routing to Away Trading
Centers, to: (i) Delete references to the
ROOC routing option; and (ii) update
routing options IOCM and ICMT to
reflect a recent proposed rule change by
EDGX in which EDGX replaced the
MidPoint Match Order with the
MidPoint Peg Order.6
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii).
5 See Securities Exchange Act Release No. 75479
(July 17, 2015) (SR–EDGX–2015–33).
6 See supra note 5.
4 17
E:\FR\FM\04AUN1.SGM
04AUN1
46364
Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices
ROOC Routing Option
Under Rule 11.11(g)(8), an order
utilizing the ROOC routing option is
designated by the User 7 to participate in
the opening, re-opening (following a
halt, suspension, or pause), or closing
process of a primary listing market
(BATS, NYSE, Nasdaq, NYSE MKT, or
NYSE Arca) if received before the
opening/re-opening/closing time of such
market. If shares remain unexecuted
after attempting to execute in the
opening, re-opening, or closing process,
they are either posted to the EDGA
Book,8 executed, or routed to
destinations on the System 9 routing
table.10
Because few Users elect the ROOC
routing option, the Exchange has
determined that the current demand
does not warrant the infrastructure and
ongoing maintenance expenses required
to support the product. Therefore, the
Exchange proposes to delete the ROOC
routing option under Rule 11.11(g)(8) as
well as a reference to the ROOC routing
option under Rule 11.11(g)(16). Users
seeking to route orders to participate in
the opening, re-opening, or closing
process of a primary listing market may
use alternative methods, such as
connecting to those markets directly or
through a third party service provider,
or electing another routing option
offered by the Exchange that enables a
User to post an order to certain primary
listing markets.11
tkelley on DSK3SPTVN1PROD with NOTICES
7 The
term ‘‘User’’ is defined as ‘‘any Member or
Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3.’’ See
Exchange Rule 1.5(ee).
8 The term ‘‘EDGA Book is defined as ‘‘the
System’s electronic file of orders.’’ Rule 1.5(d).
9 The term ‘‘System’’ is defined as ‘‘the electronic
communications and trading facility designated by
the Board through which securities orders of Users
are consolidated for ranking, execution and, when
applicable, routing away.’’ Rule 1.5(cc).
10 The term ‘‘System routing table’’ refers to the
proprietary process for determining the specific
trading venues to which the System routes orders
and the order in which it routes them. Rule
11.11(g). Orders in BATS listed securities
designated for participation in the re-opening
process on BATS following a halt, suspension, or
pause remain on the EDGA Book and be eligible for
execution once the halt, suspension, or pause has
been lifted. Rule 11.11(g)(8).
11 See e.g., Rule 11.11(g)(4) (describing the INET
routing option under which an order checks the
System for available shares and then is sent to
Nasdaq. If shares remain unexecuted after routing,
they are posted on the Nasdaq book, unless
otherwise instructed by the User), Rule 11.11(g)(5)
(describing the RDOT routing option under which
an order checks the System for available shares and
then is sent to destinations on the System routing
table. If shares remain unexecuted after routing,
they are sent to the NYSE and can be re-routed by
the NYSE. Any remainder will be posted to the
NYSE, unless otherwise instructed by the User),
and Rule 11.11(g)(6) (describing the RDOX routing
option under which an order checks the System for
available shares, is then sent to the NYSE and can
VerDate Sep<11>2014
18:45 Aug 03, 2015
Jkt 235001
IOCM and ICMT Routing Options
The Exchange also proposes to amend
Rules 11.11(g)(11) and (12) to update
routing options IOCM and ICMT to
reflect a recent rule change by EDGX in
which EDGX replaced the MidPoint
Match Order with the MidPoint Peg
Order.12 Rule 11.11(g)(11) describes
IOCM as a routing option under which
an order checks the System for available
shares and then is sent, as a MidPoint
Match Order with a Time-in-Force of
IOC,13 to EDGX. Similarly, Rule
11.11(g)(12) describes ICMT as a routing
option under which an order checks the
System for available shares, then is sent
to destinations on the System routing
table and then is sent, as a MidPoint
Match Order with a Time-in-Force of
IOC, to EDGX. Under both IOCM and
ICMT, if shares remain unexecuted after
routing, they are posted to the EDGA
Book, unless otherwise instructed by the
User.
On July 8, 2015, EDGX filed a
proposed rule change with the
Commission for immediate effectiveness
to, among other things, replace the
MidPoint Match Order with the
MidPoint Peg Order.14 Therefore, the
Exchange proposes to update the
description of the IOCM and ICMT
routing options to replace references to
the MidPoint Match Order with the
MidPoint Peg Order.
Implementation Date
The Exchange intends to implement
the proposed changes to the
descriptions of the IOCM and ICMT
routing option immediately.15 The
Exchange will alert Users via a Trading
Notice of the date upon which it will
discontinue the ROOC routing option.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 16 in general, and furthers the
objectives of Section 6(b)(5) of the Act 17
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
be re-routed by the NYSE. If shares remain
unexecuted after routing, they are posted on the
NYSE book, unless otherwise instructed by the
User).
12 See supra note 5.
13 See Rule 11.6(q)(1).
14 See supra note 5.
15 Implementation of the proposed rule change
immediately upon filing is contingent upon the
Commission granting a waiver of the 30-day
operative delay. 17 CFR 240.19b–4(f)(6)(iii).
16 15 U.S.C. 78f(b).
17 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00131
Fmt 4703
Sfmt 4703
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange does not believe that
this proposal will permit unfair
discrimination among customers,
brokers, or dealers because the ROOC
routing option will no longer be
available and the updates to the IOCM
and ICMT routing options would apply
to all Users equally. The Exchange has
few Users electing the ROOC routing
option and has determined that the
current demand does not warrant the
infrastructure and ongoing maintenance
expense required to support the
product. Routing through the Exchange
is voluntary and alternative routing
options offered by the Exchange as well
as other methods remain available to
Users that wish to route orders to
participate in the opening, re-opening,
or closing process of the primary listing
market.18 In addition, the ROOC routing
option is not a core product offering by
the Exchange, nor is the Exchange
required by the Act to offer such a
product. The proposed updates to
routing options IOCM and ICMT are in
response to a recent rule change by
EDGX in which EDGX replaced the
MidPoint Match Order with the
MidPoint Peg Order.19 The proposal is
intended to accurately describe how
orders utilizing the IOCM or ICMT
routing options are to be handled by the
Exchange in light of the EDGX proposed
rule change mentioned above.
Therefore, the Exchange believes the
proposed rule change would make its
rules clearer and less confusing for
investors; thereby removing
impediments to and perfecting the
mechanism of a free and open market
and a national market system, and, in
general, protecting investors and the
public interest.
(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 proposed rule
change is not designed to address any
competitive issues but rather avoid
investor confusion by eliminating the
ROOC routing option that is to be
discontinued by the Exchange as well as
update the IOCM and ICMT routing
options in response to a recent proposed
rule change by EDGX.20
18 See
19 See
supra note 11 and accompanying text.
supra note 5.
20 Id.
E:\FR\FM\04AUN1.SGM
04AUN1
Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
tkelley on DSK3SPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)
thereunder.21
A proposed rule change filed
pursuant to Rule 19b–44(f)(6) under the
Act normally does not become operative
for 30 days after the date of its filing.
However, Rule 19b–44(f)(6)(iii) 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. Waiver of the 30-day operative
delay would allow the Exchange to
modify its rules in a timely manner by:
(i) Eliminating a rule that accounts for
a service the Exchange intends to
discontinue; and (ii) updating its rules
to accurately describe how orders
utilizing those routing options function
in light of the recent proposed rule
change by EDGX, thereby avoiding
potential investor confusion during the
operative delay period. Based on the
foregoing, the Commission believes the
waiver of the operative delay is
consistent with the protection of
investors and the public interest.22 The
Commission hereby grants the waiver
and designates the proposal operative
upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
21 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s intent to file the proposed rule
change, along with a brief description and text of
the proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
22 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:45 Aug 03, 2015
Jkt 235001
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–2015–28 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–2015–28. 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
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
46365
available publicly. All submissions
should refer to File Number SR–EDGA–
2015–28 and should be submitted on or
before August 25, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–19015 Filed 8–3–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
31728; 812–14337]
AMG Pantheon Private Equity Fund,
LLC, et al.; Notice of Application
July 29, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (the ‘‘Act’’) for an
exemption from sections 18(c) and 18(i)
of the Act and for an order pursuant to
section 17(d) of the Act and rule 17d–
1 under the Act.
AGENCY:
Applicants
request an order to permit certain
registered closed-end management
investment companies to issue multiple
classes of units of beneficial interest
(‘‘Units’’) with varying sales loads and
to impose asset-based distribution and/
or service fees, and contingent deferred
sales loads (‘‘CDSCs’’).
APPLICANTS: AMG Pantheon Private
Equity Fund, LLC (the ‘‘Feeder Fund’’),
AMG Pantheon Private Equity Master
Fund, LLC (the ‘‘Master Fund’’),
Pantheon Ventures (US) LP (the
‘‘Adviser’’) and AMG Distributors, Inc.
(the ‘‘Placement Agent’’).
FILING DATES: The application was filed
on July 25, 2014, and amended on
December 30, 2014 and May 13, 2015.
HEARING OR NOTIFICATION OF HEARING:
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on August 21, 2015, and
should be accompanied by proof of
service on the applicants, in the form of
an affidavit, or, for lawyers, a certificate
of service. Pursuant to rule 0–5 under
the Act, hearing requests should state
SUMMARY OF APPLICATION:
23 17
E:\FR\FM\04AUN1.SGM
CFR 200.30–3(a)(12).
04AUN1
Agencies
[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46363-46365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19015]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75550; File No. SR-EDGA-2015-28]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule
11.11, Routing to Away Trading Centers
July 29, 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 21, 2015, EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend Rule 11.11, Routing to Away
Trading Centers, to: (i) Delete references to the ROOC routing option;
and (ii) update routing options IOCM and ICMT to reflect a recent
proposed rule change by EDGX Exchange, Inc. (``EDGX'') in which EDGX
replaced the MidPoint Match Order with the MidPoint Peg Order.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 75479 (July 17,
2015) (SR-EDGX-2015-33).
---------------------------------------------------------------------------
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 Rule 11.11, Routing to Away Trading
Centers, to: (i) Delete references to the ROOC routing option; and (ii)
update routing options IOCM and ICMT to reflect a recent proposed rule
change by EDGX in which EDGX replaced the MidPoint Match Order with the
MidPoint Peg Order.\6\
---------------------------------------------------------------------------
\6\ See supra note 5.
---------------------------------------------------------------------------
[[Page 46364]]
ROOC Routing Option
Under Rule 11.11(g)(8), an order utilizing the ROOC routing option
is designated by the User \7\ to participate in the opening, re-opening
(following a halt, suspension, or pause), or closing process of a
primary listing market (BATS, NYSE, Nasdaq, NYSE MKT, or NYSE Arca) if
received before the opening/re-opening/closing time of such market. If
shares remain unexecuted after attempting to execute in the opening,
re-opening, or closing process, they are either posted to the EDGA
Book,\8\ executed, or routed to destinations on the System \9\ routing
table.\10\
---------------------------------------------------------------------------
\7\ The term ``User'' is defined as ``any Member or Sponsored
Participant who is authorized to obtain access to the System
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
\8\ The term ``EDGA Book is defined as ``the System's electronic
file of orders.'' Rule 1.5(d).
\9\ The term ``System'' is defined as ``the electronic
communications and trading facility designated by the Board through
which securities orders of Users are consolidated for ranking,
execution and, when applicable, routing away.'' Rule 1.5(cc).
\10\ The term ``System routing table'' refers to the proprietary
process for determining the specific trading venues to which the
System routes orders and the order in which it routes them. Rule
11.11(g). Orders in BATS listed securities designated for
participation in the re-opening process on BATS following a halt,
suspension, or pause remain on the EDGA Book and be eligible for
execution once the halt, suspension, or pause has been lifted. Rule
11.11(g)(8).
---------------------------------------------------------------------------
Because few Users elect the ROOC routing option, the Exchange has
determined that the current demand does not warrant the infrastructure
and ongoing maintenance expenses required to support the product.
Therefore, the Exchange proposes to delete the ROOC routing option
under Rule 11.11(g)(8) as well as a reference to the ROOC routing
option under Rule 11.11(g)(16). Users seeking to route orders to
participate in the opening, re-opening, or closing process of a primary
listing market may use alternative methods, such as connecting to those
markets directly or through a third party service provider, or electing
another routing option offered by the Exchange that enables a User to
post an order to certain primary listing markets.\11\
---------------------------------------------------------------------------
\11\ See e.g., Rule 11.11(g)(4) (describing the INET routing
option under which an order checks the System for available shares
and then is sent to Nasdaq. If shares remain unexecuted after
routing, they are posted on the Nasdaq book, unless otherwise
instructed by the User), Rule 11.11(g)(5) (describing the RDOT
routing option under which an order checks the System for available
shares and then is sent to destinations on the System routing table.
If shares remain unexecuted after routing, they are sent to the NYSE
and can be re-routed by the NYSE. Any remainder will be posted to
the NYSE, unless otherwise instructed by the User), and Rule
11.11(g)(6) (describing the RDOX routing option under which an order
checks the System for available shares, is then sent to the NYSE and
can be re-routed by the NYSE. If shares remain unexecuted after
routing, they are posted on the NYSE book, unless otherwise
instructed by the User).
---------------------------------------------------------------------------
IOCM and ICMT Routing Options
The Exchange also proposes to amend Rules 11.11(g)(11) and (12) to
update routing options IOCM and ICMT to reflect a recent rule change by
EDGX in which EDGX replaced the MidPoint Match Order with the MidPoint
Peg Order.\12\ Rule 11.11(g)(11) describes IOCM as a routing option
under which an order checks the System for available shares and then is
sent, as a MidPoint Match Order with a Time-in-Force of IOC,\13\ to
EDGX. Similarly, Rule 11.11(g)(12) describes ICMT as a routing option
under which an order checks the System for available shares, then is
sent to destinations on the System routing table and then is sent, as a
MidPoint Match Order with a Time-in-Force of IOC, to EDGX. Under both
IOCM and ICMT, if shares remain unexecuted after routing, they are
posted to the EDGA Book, unless otherwise instructed by the User.
---------------------------------------------------------------------------
\12\ See supra note 5.
\13\ See Rule 11.6(q)(1).
---------------------------------------------------------------------------
On July 8, 2015, EDGX filed a proposed rule change with the
Commission for immediate effectiveness to, among other things, replace
the MidPoint Match Order with the MidPoint Peg Order.\14\ Therefore,
the Exchange proposes to update the description of the IOCM and ICMT
routing options to replace references to the MidPoint Match Order with
the MidPoint Peg Order.
---------------------------------------------------------------------------
\14\ See supra note 5.
---------------------------------------------------------------------------
Implementation Date
The Exchange intends to implement the proposed changes to the
descriptions of the IOCM and ICMT routing option immediately.\15\ The
Exchange will alert Users via a Trading Notice of the date upon which
it will discontinue the ROOC routing option.
---------------------------------------------------------------------------
\15\ Implementation of the proposed rule change immediately upon
filing is contingent upon the Commission granting a waiver of the
30-day operative delay. 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \16\ in general, and furthers the objectives of Section
6(b)(5) of the Act \17\ 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.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange does not believe that this proposal will permit unfair
discrimination among customers, brokers, or dealers because the ROOC
routing option will no longer be available and the updates to the IOCM
and ICMT routing options would apply to all Users equally. The Exchange
has few Users electing the ROOC routing option and has determined that
the current demand does not warrant the infrastructure and ongoing
maintenance expense required to support the product. Routing through
the Exchange is voluntary and alternative routing options offered by
the Exchange as well as other methods remain available to Users that
wish to route orders to participate in the opening, re-opening, or
closing process of the primary listing market.\18\ In addition, the
ROOC routing option is not a core product offering by the Exchange, nor
is the Exchange required by the Act to offer such a product. The
proposed updates to routing options IOCM and ICMT are in response to a
recent rule change by EDGX in which EDGX replaced the MidPoint Match
Order with the MidPoint Peg Order.\19\ The proposal is intended to
accurately describe how orders utilizing the IOCM or ICMT routing
options are to be handled by the Exchange in light of the EDGX proposed
rule change mentioned above. Therefore, the Exchange believes the
proposed rule change would make its rules clearer and less confusing
for investors; thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
---------------------------------------------------------------------------
\18\ See supra note 11 and accompanying text.
\19\ See supra note 5.
---------------------------------------------------------------------------
(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 proposed rule change is not designed to
address any competitive issues but rather avoid investor confusion by
eliminating the ROOC routing option that is to be discontinued by the
Exchange as well as update the IOCM and ICMT routing options in
response to a recent proposed rule change by EDGX.\20\
---------------------------------------------------------------------------
\20\ Id.
---------------------------------------------------------------------------
[[Page 46365]]
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not (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, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6)
thereunder.\21\
---------------------------------------------------------------------------
\21\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-44(f)(6) under
the Act normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-44(f)(6)(iii) 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. Waiver of the 30-day
operative delay would allow the Exchange to modify its rules in a
timely manner by: (i) Eliminating a rule that accounts for a service
the Exchange intends to discontinue; and (ii) updating its rules to
accurately describe how orders utilizing those routing options function
in light of the recent proposed rule change by EDGX, thereby avoiding
potential investor confusion during the operative delay period. Based
on the foregoing, the Commission believes the waiver of the operative
delay is consistent with the protection of investors and the public
interest.\22\ The Commission hereby grants the waiver and designates
the proposal operative upon filing.
---------------------------------------------------------------------------
\22\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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-2015-28 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-2015-28. 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-EDGA-2015-28 and should be
submitted on or before August 25, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------
\23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19015 Filed 8-3-15; 8:45 am]
BILLING CODE 8011-01-P