Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Operation of MidPoint Peg Orders Under Rule 11.8(d), 50053-50055 [2015-20282]
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Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices
POSTAL REGULATORY COMMISSION
[Docket No. CP2015–124; Order No. 2659]
New Postal Product
Postal Regulatory Commission.
ACTION: Notice.
AGENCY:
The Commission is noticing a
recent Postal Service filing concerning
an additional Global Expedited Package
Services 3 negotiated service agreement.
This notice informs the public of the
filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: August 19,
2015.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015–20247 Filed 8–17–15; 8:45 am]
[Release No. 34–75685; File No. SR–EDGA–
2015–30]
I. Introduction
On August 11, 2015, the Postal
Service filed notice that it has entered
into an additional Global Expedited
Package Services 3 (GEPS 3) negotiated
service agreement (Agreement).1
To support its Notice, the Postal
Service filed a copy of the Agreement,
a copy of the Governors’ Decision
authorizing the product, a certification
of compliance with 39 U.S.C. 3633(a),
and an application for non-public
treatment of certain materials. It also
filed supporting financial workpapers.
II. Notice of Commission Action
asabaliauskas on DSK5VPTVN1PROD with NOTICES
It is ordered:
1. The Commission establishes Docket
No. CP2015–124 for consideration of the
matters raised by the Postal Service’s
Notice.
2. Pursuant to 39 U.S.C. 505, Kenneth
R. Moeller is appointed to serve as an
officer of the Commission to represent
the interests of the general public in this
proceeding (Public Representative).
3. Comments are due no later than
August 19, 2015.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
SECURITIES AND EXCHANGE
COMMISSION
Table of Contents
I. Introduction
II. Notice of Commission Action
III. Ordering Paragraphs
The Commission establishes Docket
No. CP2015–124 for consideration of
matters raised by the Notice.
The Commission invites comments on
whether the Postal Service’s filing is
consistent with 39 U.S.C. 3632, 3633, or
3642, 39 CFR part 3015, and 39 CFR
part 3020, subpart B. Comments are due
no later than August 19, 2015. The
public portions of the filing can be
1 Notice of United States Postal Service of Filing
a Functionally Equivalent Global Expedited
Package Services 3 Negotiated Service Agreement
and Application for Non-Public Treatment of
Materials Filed Under Seal, August 11, 2015
(Notice).
17:02 Aug 17, 2015
III. Ordering Paragraphs
BILLING CODE 7710–FW–P
FOR FURTHER INFORMATION CONTACT:
VerDate Sep<11>2014
accessed via the Commission’s Web site
(https://www.prc.gov).
The Commission appoints Kenneth R.
Moeller to serve as Public
Representative in this docket.
Jkt 235001
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Operation
of MidPoint Peg Orders Under Rule
11.8(d)
August 12, 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 August 7,
2015, EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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50053
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the operation of MidPoint Peg
Orders under Rule 11.8(d) when a
Locking Quotation exists.5 The
proposed amendment is based on the
operation of Mid-Point Peg Orders on
EDGX, Exchange, Inc. (‘‘EDGX’’), BATS
Exchange, Inc. (‘‘BZX’’) and BATS YExchange, Inc. (‘‘BYX’’).6 The Exchange
has designated the proposed rule change
as non-controversial and provided the
Commission with the notice required by
Rule 19b–4(f)(6)(iii) under the Act.7
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
In early 2014, the Exchange and its
affiliate, EDGX, received approval to
effect a merger (the ‘‘Merger’’) of the
Exchange’s parent company, Direct Edge
Holdings LLC, with BATS Global
Markets, Inc., the parent of BZX and
BYX (together with BZX, EDGA and
EDGX, the ‘‘BGM Affiliated
5 The term ‘‘Locking Quotation’’ is defined as
‘‘[t]he display of a bid for an NMS stock at a price
that equals the price of an offer for such NMS stock
previously disseminated pursuant to an effective
national market system plan, or the display of an
offer for an NMS stock at a price that equals the
price of a bid for such NMS stock previously
disseminated pursuant to an effective national
market system plan in violation of Rule 610(d) of
Regulation NMS.’’ See Exchange Rule 11.6(g).
6 See EDGX Rule 11.8(d)(6); BZX and BYX Rule
11.9(c)(9).
7 17 CFR 240.19b–4(f)(6)(iii).
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Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Exchanges’’).8 In order to provide
consistent rules and system
functionality amongst the BGM
Affiliated Exchanges, the Exchange
proposes to amend the operation of
MidPoint Peg Orders under EDGA Rule
11.8(d) when a Locking Quotation exists
to align with the operation of Mid-Point
Peg orders on EDGX, BZX and BYX.9
In sum, a MidPoint Peg Order is a
non-displayed Market Order or Limit
Order with an instruction to execute at
the midpoint of the NBBO, or,
alternatively, be pegged to the less
aggressive of the midpoint of the NBBO
or one minimum price variation inside
the same side of the NBBO as the
order.10 Currently, a MidPoint Peg
Order is not eligible for execution when
a Locking Quotation or Crossing
Quotation 11 exists. In such cases, a
MidPoint Peg Order rests on the EDGX
Book and is not be eligible for execution
in the System until the Locking
Quotation or Crossing Quotation is
cleared.
The Exchange now proposes to amend
the operation of MidPoint Peg Orders to
provide Users 12 the ability to elect that
their MidPoint Peg Orders be eligible for
execution when a Locking Quotation
exists. As amended, Rule 11.8(d)(6)
would state that, unless otherwise
instructed by the User, a MidPoint Peg
Order would not be eligible for
execution when a Locking Quotation
exists. Where a User does not instruct
the Exchange to execute its MidPoint
Peg Order in such cases, the order
would be treated as it is today, and
would rest on the EDGA Book and not
be eligible for execution until the
Locking Quotation is cleared.13 Like the
operation of MidPoint Peg Orders when
a Crossing Quotation exists, once the
Locking Quotation is cleared, a new
midpoint of the NBBO is established,
and the MidPoint Peg Order becomes
eligible for execution receiving a new
8 See Securities Exchange Act Release No. 71449
(January 30, 2014), 79 FR 6961 (February 5, 2014)
(SR–EDGX–2013–43; SR–EDGA–2013–34).
9 See EDGX Rule 11.8(d); BZX and BYX Rule
11.9(c)(9).
10 See Exchange Rule 11.8(d) for a complete
description of the MidPoint Peg Orders.
11 The term ‘‘Crossing Quotation’’ is defined as
‘‘[t]he display of a bid (offer) for an NMS stock at
a price that is higher (lower) than the price of an
offer (bid) for such NMS stock previously
disseminated pursuant to an effective national
market system plan in violation of Rule 610(d) of
Regulation NMS.’’ See Exchange Rule 11.6(c).
12 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).
13 Under Rule 11.8(d), a MidPoint Peg Order will
receive a new time stamp when the Locking
Quotation is cleared and a new midpoint of the
NBBO is established.
VerDate Sep<11>2014
17:02 Aug 17, 2015
Jkt 235001
time stamp. In such case, pursuant to
Exchange Rule 11.9, all MidPoint Peg
Orders that are ranked at the midpoint
of the NBBO will retain their priority as
compared to each other based upon the
time such orders were initially received
by the System,14 including MidPoint
Peg Order received when a Locking
Quotation exists. This behavior is
consistent with operation of Mid-Point
Peg orders under EDGX Rule 11.8(d)(6)
and BYX and BZX Rules 11.9(c)(9). The
Exchange is not proposing to amend the
operation of Midpoint Peg Orders when
a Crossing Quotation exists.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 15 and furthers
the objectives of Section 6(b)(5) of the
Act 16 because it is designed to promote
just and equitable principles of trade, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and, in
general, to protect investors and the
public interest. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) 17 of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets.
The proposed rule change is intended
to align the operation of MidPoint Peg
Orders when a Locking Quotation exists
with that of MidPoint Peg Orders under
EDGX Rule 11.8(d) and BYX and BZX
Rules 11.9(c)(9) in order to provide a
consistent functionality across the BGM
Affiliated Exchanges. Consistent
functionality between the exchanges
will reduce complexity and streamline
functionality, thereby resulting in
simpler technology implementation,
changes and maintenance by Users of
the Exchange that are also participants
on EDGX, BZX and BYX. The Exchange
also believes the proposed rule change
would provide Users with increased
flexibility over their MidPoint Peg
Orders when a Locking Quotation
exists. For the reasons set forth above,
the Exchange believes the proposal
would promote just and equitable
principles of trade, remove
impediments to, and perfect the
14 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.’’ See
Exchange Rule 1.5(cc).
15 15 U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
17 15 U.S.C. 78k–1(a)(1).
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mechanism of, a free and open market
and a national market system.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes that the proposal will
provide consistent functionality across
the BGM Affiliated Exchanges, thereby
reducing complexity and streamlining
duplicative functionality, resulting in
simpler technology implementation,
changes and maintenance by Users of
the Exchange that are also participants
on EDGX, BZX and BYX. Thus, the
Exchange believes this proposed rule
change is necessary to permit fair
competition among national securities
exchanges. In addition, the Exchange
believes the proposed rule change will
benefit Exchange participants in that it
is designed to achieve a consistent
technology offering by the BGM
Affiliated Exchanges.
(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.18
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act normally does not become operative
for 30 days after the date of its filing.
However, Rule 19b–4(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
18 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.
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Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices
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
harmonize its rules across BGM
Affiliated Exchanges in a timely
manner, thereby simplifying the rules
available to Members of the Exchange
that are also participants on EDGX, BZX
and BYX. Based on the foregoing, the
Commission believes the waiver of the
operative delay is consistent with the
protection of investors and the public
interest.19 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
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:
asabaliauskas on DSK5VPTVN1PROD with NOTICES
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–2015–30 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–2015–30. 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
19 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
17:02 Aug 17, 2015
Jkt 235001
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–
2015–30 and should be submitted on or
before September 8, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Brent J. Fields,
Secretary.
[FR Doc. 2015–20282 Filed 8–17–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
31746; 812–14496]
Principal ETMF Trust, et al.; Notice of
Application
August 11, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) for an exemption from sections
2(a)(32), 5(a)(1), 22(d) and 22(e) of the
Act and rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
(a)(2) of the Act, and under section
12(d)(1)(J) of the Act for an exemption
from sections 12(d)(1)(A) and (B) of the
Act.
AGENCY:
Applicants: Principal ETMF Trust
(the ‘‘Trust’’), Principal Management
Corporation (the ‘‘Manager’’), and
Principal Funds Distributor, Inc. (the
‘‘Distributor’’).
20 17
PO 00000
CFR 200.30–3(a)(12).
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50055
Summary of Application:
Applicants request an order (‘‘Order’’)
that permits: (a) Actively managed
series of certain open-end management
investment companies to issue shares
(‘‘Shares’’) redeemable in large
aggregations only (‘‘Creation Units’’); (b)
secondary market transactions in Shares
to occur at the next-determined net asset
value plus or minus a marketdetermined premium or discount that
may vary during the trading day; (c)
certain series to pay redemption
proceeds, under certain circumstances,
more than seven days from the tender of
Shares for redemption; (d) certain
affiliated persons of the series to deposit
securities into, and receive securities
from, the series in connection with the
purchase and redemption of Creation
Units; (e) certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
series to acquire Shares; and (f) certain
series to create and redeem Shares in
kind in a master-feeder structure. The
Order would incorporate by reference
terms and conditions of a previous order
granting the same relief sought by
applicants, as that order may be
amended from time to time (‘‘Reference
Order’’).1
DATES: Filing Date: The application was
filed on June 26, 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 September 8, 2015, and
should be accompanied by proof of
service on 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 the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: The Commission: Brent J.
Fields, Secretary, U.S. Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090.
Applicants: Principal ETMF Trust,
Principal Management Corporation, and
Principal Funds Distributor, Inc., c/o
Adam U. Shaikh, Esq., The Principal
SUMMARY:
1 Eaton Vance Management, et al., Investment
Company Act Rel. Nos. 31333 (Nov. 6, 2014)
(notice) and 31361 (Dec. 2, 2014) (order).
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]]>Agencies
[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Notices]
[Pages 50053-50055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20282]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75685; File No. SR-EDGA-2015-30]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the Operation of MidPoint Peg Orders Under Rule 11.8(d)
August 12, 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 August 7, 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the operation of MidPoint
Peg Orders under Rule 11.8(d) when a Locking Quotation exists.\5\ The
proposed amendment is based on the operation of Mid-Point Peg Orders on
EDGX, Exchange, Inc. (``EDGX''), BATS Exchange, Inc. (``BZX'') and BATS
Y-Exchange, Inc. (``BYX'').\6\ The Exchange has designated the proposed
rule change as non-controversial and provided the Commission with the
notice required by Rule 19b-4(f)(6)(iii) under the Act.\7\
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\5\ The term ``Locking Quotation'' is defined as ``[t]he display
of a bid for an NMS stock at a price that equals the price of an
offer for such NMS stock previously disseminated pursuant to an
effective national market system plan, or the display of an offer
for an NMS stock at a price that equals the price of a bid for such
NMS stock previously disseminated pursuant to an effective national
market system plan in violation of Rule 610(d) of Regulation NMS.''
See Exchange Rule 11.6(g).
\6\ See EDGX Rule 11.8(d)(6); BZX and BYX Rule 11.9(c)(9).
\7\ 17 CFR 240.19b-4(f)(6)(iii).
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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
In early 2014, the Exchange and its affiliate, EDGX, received
approval to effect a merger (the ``Merger'') of the Exchange's parent
company, Direct Edge Holdings LLC, with BATS Global Markets, Inc., the
parent of BZX and BYX (together with BZX, EDGA and EDGX, the ``BGM
Affiliated
[[Page 50054]]
Exchanges'').\8\ In order to provide consistent rules and system
functionality amongst the BGM Affiliated Exchanges, the Exchange
proposes to amend the operation of MidPoint Peg Orders under EDGA Rule
11.8(d) when a Locking Quotation exists to align with the operation of
Mid-Point Peg orders on EDGX, BZX and BYX.\9\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 71449 (January 30,
2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013-
34).
\9\ See EDGX Rule 11.8(d); BZX and BYX Rule 11.9(c)(9).
---------------------------------------------------------------------------
In sum, a MidPoint Peg Order is a non-displayed Market Order or
Limit Order with an instruction to execute at the midpoint of the NBBO,
or, alternatively, be pegged to the less aggressive of the midpoint of
the NBBO or one minimum price variation inside the same side of the
NBBO as the order.\10\ Currently, a MidPoint Peg Order is not eligible
for execution when a Locking Quotation or Crossing Quotation \11\
exists. In such cases, a MidPoint Peg Order rests on the EDGX Book and
is not be eligible for execution in the System until the Locking
Quotation or Crossing Quotation is cleared.
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\10\ See Exchange Rule 11.8(d) for a complete description of the
MidPoint Peg Orders.
\11\ The term ``Crossing Quotation'' is defined as ``[t]he
display of a bid (offer) for an NMS stock at a price that is higher
(lower) than the price of an offer (bid) for such NMS stock
previously disseminated pursuant to an effective national market
system plan in violation of Rule 610(d) of Regulation NMS.'' See
Exchange Rule 11.6(c).
---------------------------------------------------------------------------
The Exchange now proposes to amend the operation of MidPoint Peg
Orders to provide Users \12\ the ability to elect that their MidPoint
Peg Orders be eligible for execution when a Locking Quotation exists.
As amended, Rule 11.8(d)(6) would state that, unless otherwise
instructed by the User, a MidPoint Peg Order would not be eligible for
execution when a Locking Quotation exists. Where a User does not
instruct the Exchange to execute its MidPoint Peg Order in such cases,
the order would be treated as it is today, and would rest on the EDGA
Book and not be eligible for execution until the Locking Quotation is
cleared.\13\ Like the operation of MidPoint Peg Orders when a Crossing
Quotation exists, once the Locking Quotation is cleared, a new midpoint
of the NBBO is established, and the MidPoint Peg Order becomes eligible
for execution receiving a new time stamp. In such case, pursuant to
Exchange Rule 11.9, all MidPoint Peg Orders that are ranked at the
midpoint of the NBBO will retain their priority as compared to each
other based upon the time such orders were initially received by the
System,\14\ including MidPoint Peg Order received when a Locking
Quotation exists. This behavior is consistent with operation of Mid-
Point Peg orders under EDGX Rule 11.8(d)(6) and BYX and BZX Rules
11.9(c)(9). The Exchange is not proposing to amend the operation of
Midpoint Peg Orders when a Crossing Quotation exists.
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\12\ 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).
\13\ Under Rule 11.8(d), a MidPoint Peg Order will receive a new
time stamp when the Locking Quotation is cleared and a new midpoint
of the NBBO is established.
\14\ 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.'' See Exchange Rule
1.5(cc).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \15\ and furthers the objectives of
Section 6(b)(5) of the Act \16\ because it is designed to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
to foster cooperation and coordination with persons engaged in
facilitating transactions in securities, and, in general, to protect
investors and the public interest. The proposed rule change also is
designed to support the principles of Section 11A(a)(1) \17\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets.
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\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
\17\ 15 U.S.C. 78k-1(a)(1).
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The proposed rule change is intended to align the operation of
MidPoint Peg Orders when a Locking Quotation exists with that of
MidPoint Peg Orders under EDGX Rule 11.8(d) and BYX and BZX Rules
11.9(c)(9) in order to provide a consistent functionality across the
BGM Affiliated Exchanges. Consistent functionality between the
exchanges will reduce complexity and streamline functionality, thereby
resulting in simpler technology implementation, changes and maintenance
by Users of the Exchange that are also participants on EDGX, BZX and
BYX. The Exchange also believes the proposed rule change would provide
Users with increased flexibility over their MidPoint Peg Orders when a
Locking Quotation exists. For the reasons set forth above, the Exchange
believes the proposal would promote just and equitable principles of
trade, remove impediments to, and perfect the mechanism of, a free and
open market and a national market system.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The Exchange
notes that the proposal will provide consistent functionality across
the BGM Affiliated Exchanges, thereby reducing complexity and
streamlining duplicative functionality, resulting in simpler technology
implementation, changes and maintenance by Users of the Exchange that
are also participants on EDGX, BZX and BYX. Thus, the Exchange believes
this proposed rule change is necessary to permit fair competition among
national securities exchanges. In addition, the Exchange believes the
proposed rule change will benefit Exchange participants in that it is
designed to achieve a consistent technology offering by the BGM
Affiliated Exchanges.
(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.\18\
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\18\ 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(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
[[Page 50055]]
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 harmonize its rules across
BGM Affiliated Exchanges in a timely manner, thereby simplifying the
rules available to Members of the Exchange that are also participants
on EDGX, BZX and BYX. Based on the foregoing, the Commission believes
the waiver of the operative delay is consistent with the protection of
investors and the public interest.\19\ The Commission hereby grants the
waiver and designates the proposal operative upon filing.
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\19\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. 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-2015-30 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-2015-30. 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-2015-30 and should be
submitted on or before September 8, 2015.
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\20\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
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pursuant to delegated authority.\20\
Brent J. Fields,
Secretary.
[FR Doc. 2015-20282 Filed 8-17-15; 8:45 am]
BILLING CODE 8011-01-P
