Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trading Centers, 73009-73011 [2015-29710]

Download as PDF Federal Register / Vol. 80, No. 225 / Monday, November 23, 2015 / Notices wgreen on DSK2VPTVN1PROD with NOTICES Members are responsible for all trading activity by its Sponsored Participant. In order to obtain connectivity to the Exchange, members are required to contact BX Subscriber Services and request a connection to the market. Such connection requires approval by the Exchange, testing and other security features as well as information sharing with the Exchange by the member. Only members are permitted to request connectivity to the Exchange. The requirement to also complete and submit an Exchange Agreement, User Agreement and a Notice of Consent with our BX Membership Department is viewed as unnecessarily burdensome by members, who must update their customer relationships internally. Additionally, the Exchange examines for compliance with BX Rule 4615 and may request information about any customer relationship which concerns the Exchange. The Sponsoring Member remains responsible for customer activity conducted on the Exchange through the Customer Agreement, among other obligations. Additionally, Sponsored Participants that obtain access to the Exchange’s System are required to take reasonable security precautions and prevent unauthorized use or access to the BX Market, including unauthorized entry of information into the BX Market,18 pursuant to the Customer Agreement. Further, the Sponsored Participants is responsible to establish adequate procedures and controls that permit it to effectively monitor its employees’, agents’ and customers’ use and access to the BX Market for compliance with the terms of this agreement.19 In addition, the Exchange, through its Regulatory Services Agreement with FINRA conducts reviews of members for compliance with BX Rule 4615 and the Market Access Rule. The Exchange has the ability to remove access to the port 20 at any time if the activity of the Sponsored Participant would warrant such removal. Finally, BX Rule 4615 is currently applicable to all BX members that desire to sponsor access for its customers and applies to trading in all securities on the Exchange. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. BX Rule 4615(b)(ii)(G). BX Rule 4615(b)(ii)(H). 20 See note 9. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest; does not impose any significant burden on competition; and by its terms does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 21 of the Act and Rule 19b–4(f)(6) thereunder.22 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 rulecomments@sec.gov. Please include File Number SR–BX–2015–067 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–BX–2015–067. 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 18 See 19 See VerDate Sep<11>2014 14:25 Nov 20, 2015 21 15 22 17 Jkt 238001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00065 Fmt 4703 Sfmt 4703 73009 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 also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BX– 2015–067 and should be submitted on or December 14, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.23 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29709 Filed 11–20–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76455; File No. SR–EDGA– 2015–42] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.11, Routing to Away Trading Centers November 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 November 9, 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 23 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6)(iii). 1 15 E:\FR\FM\23NON1.SGM 23NON1 73010 Federal Register / Vol. 80, No. 225 / Monday, November 23, 2015 / Notices solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule 11.11, Routing to Away Trading Centers, to adopt a new routing option to be known as ALLB. 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 wgreen on DSK2VPTVN1PROD with NOTICES The Exchange proposes to amend Rule 11.11, Routing to Away Trading Centers, to adopt a new routing option to be known as ALLB. As proposed, ALLB would be a routing option under which the order checks the System 5 for available shares and is then sent to the BATS Exchange, Inc. (‘‘BZX’’), BATS YExchange, Inc. (‘‘BYX’’), and the EDGX Exchange, Inc. (‘‘EDGX’’ collectively with the Exchange, BZX, and BYX, the ‘‘BGM Affiliated Exchanges’’). Specifically, an order subject to the ALLB routing option would execute first against contra-side displayed and nondisplayed liquidity on the EDGA Book 6 at the National Best Bid or Offer (‘‘NBBO’’) or better. Any remainder, would then be routed to BZX, BYX, and/or EDGX in accordance with the 5 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). 6 The term ‘‘EDGA Book’’ is defined as ‘‘the System’s electronic file of orders.’’ See Exchange Rule 1.5(d). VerDate Sep<11>2014 14:25 Nov 20, 2015 Jkt 238001 System routing table.7 If shares remain unexecuted after routing, they are posted to the EDGA Book, unless otherwise instructed by the User.8 In such case, the User may instruct the Exchange to cancel the remaining shares. ALLB is designed to comply with Rule 611 and all other provisions of Regulation NMS.9 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 10 in general, and furthers the objectives of Section 6(b)(5) of the Act 11 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The proposed rule change promotes just and equitable principles of trade because it would provide Users with greater flexibility in routing orders consistent with Regulation NMS without developing complicated order routing strategies on their own. The Exchange believes that the proposed routing option will also accomplish those ends by providing market participants with an additional voluntary routing option that will enable them to easily access liquidity available on all of the national securities exchanges operated by BGM Affiliated Exchanges. The Exchange expects the routing strategy will benefit firms that do not employ routing or trading strategies under which the firm itself would rapidly access liquidity provided on the multiple venues. ALLB would not provide any advantage to Users when routing to the EDGX, BZX, or BYX as compared to other methods of routing or connectivity available to Users by the Exchange. Lastly, the Exchange also notes that routing options enabling the routing of orders between affiliated exchanges is not unique and that the ALLB routing option is similar to routing options offered by other exchange groups that permit routing between affiliates. Specifically, the Nasdaq Stock Market 7 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. See Exchange Rule 11.11(g). 8 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). 9 17 CFR 242.611. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 LLC (‘‘Nasdaq’’), the Nasdaq OMX BX (‘‘BX’’), Nasdaq OMX PSX (‘‘PSX’’) offer routing options that enable an order, whether sent to Nasdaq, BX, or PSX, to check the Nasdaq, BX, and PSX books for liquidity before optionally posting to the Nasdaq, BX, or PSX book.12 In addition, BZX previously offered a variation of a Destination Specific Order 13 which routed to and executed by its affiliate, BYX, known as the B2B routing.14 Therefore, the Exchange believes the proposal removes impediments to and perfects the mechanism of a free and open market and a national market system, and, in general, protects investors and the public interest. 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, as amended. The Exchange provides routing services in a highly competitive market in which participants may avail themselves of a wide variety of routing options offered by self-regulatory organizations, alternative trading systems, other broker-dealers, market participants’ own proprietary routing systems, and service bureaus. In such an environment, system enhancements such as the changes proposed in this rule filing do not burden competition, because they can succeed in attracting order flow to the Exchange only if they offer investors higher quality and better value than services offered by others. Encouraging competitors to provide higher quality and better value is the essence of a wellfunctioning competitive marketplace. Lastly, ALLB would not provide any advantage to Users when routing to the BZX, EDGX, or BYX as compared to other methods of routing or connectivity available to Users by the Exchange. Therefore, the Exchange does not believe the proposed rule change will 12 See Securities Exchange Act Release Nos. 63900 (February 14, 2011), 76 FR 9397 (February 17, 2011) (SR-Nasdaq-2011–026); 65470 (October 3, 2011), 76 FR 62489 (October 7, 2011) (SR–BX– 2011–048); and 65469 (October 3, 2011), 76 FR 62486 (October 7, 2011) (SR–Phlx–2011–108) (Notices of Filing and Immediate Effectiveness to adopt the CART, BCRT, and PCRT routing options on Nasdaq, BX, and PSX respectively). See also Nasdaq Rule 4758(a)(1)(A)(xi); BX Rule 4758(a)(1)(A)(vii); and PSX Rule 3315(a)(1)(A)(vii). 13 See Exchange Rule 11.11(g)(14). 14 See Securities Exchange Act Release No. 63146 (October 21, 2010), 75 FR 66170 (October 27, 2010) (SR–BATS–2010–030). The Exchange notes that BYX offered similar routing capabilities to BZX. See Securities Exchange Act Release No. 63299 (November 10, 2010), 75 FR 70325 (November 17, 2010) (SR–BYX–2010–005). E:\FR\FM\23NON1.SGM 23NON1 Federal Register / Vol. 80, No. 225 / Monday, November 23, 2015 / Notices 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. result in any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. wgreen on DSK2VPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No comments were solicited or received 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 if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 15 and paragraph (f)(6) of Rule 19b–4 thereunder.16 The Exchange has given the Commission written notice of its 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 asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that having this additional voluntary routing option will give market participants greater flexibility in routing orders and allow them to more easily access liquidity on BGM Affiliated exchanges. In addition, the Exchange states that the proposed rule change is similar to a routing option offered by other exchanges and does not propose any new or unique functionality. Based on the foregoing, the Commission believes that the waiver of the operative delay is consistent with the protection of investors and the public interest.17 Therefore, the Commission hereby waives the operative delay 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 15 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4. 17 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). 16 17 VerDate Sep<11>2014 14:25 Nov 20, 2015 Jkt 238001 73011 should refer to File No. SR–EDGA– 2015–42, and should be submitted on or December 14, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–29710 Filed 11–20–15; 8:45 am] 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: BILLING CODE 8011–01–P 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 No. SR– EDGA–2015–42 on the subject line. Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Sponsored Access Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–EDGA–2015–42. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76449; File No. SR– NASDAQ–2015–140] November 17, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 4, 2015, The NASDAQ Stock Market LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by NASDAQ. 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 NASDAQ proposes to amend Nasdaq Rule 4615 entitled, ‘‘Sponsored Participants’’ to: (1) Define the term ‘‘Sponsored Access’’ and ‘‘Customer Agreement;’’ (2) specify the requirements to comply with Rule 15c3–5 under the Securities Exchange Act of 1934 (‘‘Market Access Rule’’); and (3) remove the requirement that each Sponsored Participant and each Sponsoring Member must enter into certain agreements with the Exchange. The text of the proposed rule change is available on the Exchange’s Web site at https:// www.nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 80, Number 225 (Monday, November 23, 2015)]
[Notices]
[Pages 73009-73011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29710]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76455; File No. SR-EDGA-2015-42]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 11.11, Routing to Away Trading Centers

November 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 November 9, 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

[[Page 73010]]

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 the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.11, Routing to Away 
Trading Centers, to adopt a new routing option to be known as ALLB.
    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 adopt a new routing option to be known as ALLB. As 
proposed, ALLB would be a routing option under which the order checks 
the System \5\ for available shares and is then sent to the BATS 
Exchange, Inc. (``BZX''), BATS Y-Exchange, Inc. (``BYX''), and the EDGX 
Exchange, Inc. (``EDGX'' collectively with the Exchange, BZX, and BYX, 
the ``BGM Affiliated Exchanges''). Specifically, an order subject to 
the ALLB routing option would execute first against contra-side 
displayed and non-displayed liquidity on the EDGA Book \6\ at the 
National Best Bid or Offer (``NBBO'') or better. Any remainder, would 
then be routed to BZX, BYX, and/or EDGX in accordance with the System 
routing table.\7\ If shares remain unexecuted after routing, they are 
posted to the EDGA Book, unless otherwise instructed by the User.\8\ In 
such case, the User may instruct the Exchange to cancel the remaining 
shares. ALLB is designed to comply with Rule 611 and all other 
provisions of Regulation NMS.\9\
---------------------------------------------------------------------------

    \5\ 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).
    \6\ The term ``EDGA Book'' is defined as ``the System's 
electronic file of orders.'' See Exchange Rule 1.5(d).
    \7\ 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. See 
Exchange Rule 11.11(g).
    \8\ 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).
    \9\ 17 CFR 242.611.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \11\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. The proposed rule change 
promotes just and equitable principles of trade because it would 
provide Users with greater flexibility in routing orders consistent 
with Regulation NMS without developing complicated order routing 
strategies on their own. The Exchange believes that the proposed 
routing option will also accomplish those ends by providing market 
participants with an additional voluntary routing option that will 
enable them to easily access liquidity available on all of the national 
securities exchanges operated by BGM Affiliated Exchanges. The Exchange 
expects the routing strategy will benefit firms that do not employ 
routing or trading strategies under which the firm itself would rapidly 
access liquidity provided on the multiple venues. ALLB would not 
provide any advantage to Users when routing to the EDGX, BZX, or BYX as 
compared to other methods of routing or connectivity available to Users 
by the Exchange.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Lastly, the Exchange also notes that routing options enabling the 
routing of orders between affiliated exchanges is not unique and that 
the ALLB routing option is similar to routing options offered by other 
exchange groups that permit routing between affiliates. Specifically, 
the Nasdaq Stock Market LLC (``Nasdaq''), the Nasdaq OMX BX (``BX''), 
Nasdaq OMX PSX (``PSX'') offer routing options that enable an order, 
whether sent to Nasdaq, BX, or PSX, to check the Nasdaq, BX, and PSX 
books for liquidity before optionally posting to the Nasdaq, BX, or PSX 
book.\12\ In addition, BZX previously offered a variation of a 
Destination Specific Order \13\ which routed to and executed by its 
affiliate, BYX, known as the B2B routing.\14\ Therefore, the Exchange 
believes the proposal removes impediments to and perfects the mechanism 
of a free and open market and a national market system, and, in 
general, protects investors and the public interest.
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release Nos. 63900 (February 
14, 2011), 76 FR 9397 (February 17, 2011) (SR-Nasdaq-2011-026); 
65470 (October 3, 2011), 76 FR 62489 (October 7, 2011) (SR-BX-2011-
048); and 65469 (October 3, 2011), 76 FR 62486 (October 7, 2011) 
(SR-Phlx-2011-108) (Notices of Filing and Immediate Effectiveness to 
adopt the CART, BCRT, and PCRT routing options on Nasdaq, BX, and 
PSX respectively). See also Nasdaq Rule 4758(a)(1)(A)(xi); BX Rule 
4758(a)(1)(A)(vii); and PSX Rule 3315(a)(1)(A)(vii).
    \13\ See Exchange Rule 11.11(g)(14).
    \14\ See Securities Exchange Act Release No. 63146 (October 21, 
2010), 75 FR 66170 (October 27, 2010) (SR-BATS-2010-030). The 
Exchange notes that BYX offered similar routing capabilities to BZX. 
See Securities Exchange Act Release No. 63299 (November 10, 2010), 
75 FR 70325 (November 17, 2010) (SR-BYX-2010-005).
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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, as amended. The 
Exchange provides routing services in a highly competitive market in 
which participants may avail themselves of a wide variety of routing 
options offered by self-regulatory organizations, alternative trading 
systems, other broker-dealers, market participants' own proprietary 
routing systems, and service bureaus. In such an environment, system 
enhancements such as the changes proposed in this rule filing do not 
burden competition, because they can succeed in attracting order flow 
to the Exchange only if they offer investors higher quality and better 
value than services offered by others. Encouraging competitors to 
provide higher quality and better value is the essence of a well-
functioning competitive marketplace.
    Lastly, ALLB would not provide any advantage to Users when routing 
to the BZX, EDGX, or BYX as compared to other methods of routing or 
connectivity available to Users by the Exchange. Therefore, the 
Exchange does not believe the proposed rule change will

[[Page 73011]]

result in any burden on intermarket competition that is not necessary 
or appropriate in furtherance of the purposes of the Act.

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

    No comments were solicited or received 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 if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \15\ and paragraph (f)(6) of 
Rule 19b-4 thereunder.\16\ The Exchange has given the Commission 
written notice of its 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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative immediately upon 
filing. The Exchange states that having this additional voluntary 
routing option will give market participants greater flexibility in 
routing orders and allow them to more easily access liquidity on BGM 
Affiliated exchanges. In addition, the Exchange states that the 
proposed rule change is similar to a routing option offered by other 
exchanges and does not propose any new or unique functionality. Based 
on the foregoing, the Commission believes that the waiver of the 
operative delay is consistent with the protection of investors and the 
public interest.\17\ Therefore, the Commission hereby waives the 
operative delay and designates the proposal operative upon filing.
---------------------------------------------------------------------------

    \17\ 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 No. SR-EDGA-2015-42 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-EDGA-2015-42. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-EDGA-2015-42, and should be 
submitted on or December 14, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29710 Filed 11-20-15; 8:45 am]
 BILLING CODE 8011-01-P
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