Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of EDGA Exchange, Inc., 129-131 [2015-32987]
Download as PDF
Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices
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 Number SR–BATS–
2015–105, and should be submitted on
or before January 25, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.37
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–32986 Filed 12–31–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
In the Matter of China Domestica BioTechnology Holdings, Inc., Order of
Suspension of Trading
tkelley on DSK3SPTVN1PROD with NOTICES
December 30, 2015.
It appears to the Securities and
Exchange Commission (‘‘Commission’’)
that there is a lack of current and
accurate information concerning the
securities of Changda International
Holdings, Inc. (‘‘CDBH 1’’) (CIK No.
1380706), a defaulted Nevada
corporation whose principal place of
business is listed as LungFung District,
Shenzhen, China because it is
delinquent in its periodic filings with
the Commission, having not filed any
periodic reports since it filed a Form
10–K for the period ended March 31,
2012. As of December 15, CDBH’s
common stock was quoted on OTC Link
(previously ‘‘Pink Sheets’’) operated by
OTC Markets Group Inc. On April 28,
2015, the Commission’s Division of
Corporation Finance sent a delinquency
letter to CDBH at the address shown in
its then-most recent filing in the
Commission’s EDGAR system
requesting compliance with its periodic
filing requirements. To date, CDBH has
failed to cure its delinquencies.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
CFR 200.30–3(a)(12).
short form of the issuer’s name is also its
ticker symbol.
1 The
VerDate Sep<11>2014
16:43 Dec 31, 2015
Jkt 238001
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–33139 Filed 12–30–15; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76777; File No. SR–EDGA–
2015–45]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees for Use
of EDGA Exchange, Inc.
December 28, 2015.
[File No. 500–1]
37 17
in the securities of the above-listed
company. Therefore, it is ordered,
pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that
trading in the securities of the abovelisted company is suspended for the
period from 9:30 a.m. EST on December
30, 2015, through 11:59 p.m. EST on
January 13, 2016.
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 December
15, 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, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange has designated the proposed
rule change as one establishing or
changing a member due, fee, or other
charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 which
renders the proposed rule change
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the fee schedule applicable to
Members 5 and non-members of the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer, or any person associated
with a registered broker or dealer, that has been
admitted to membership in the Exchange. A
Member will have the status of a ‘‘member’’ of the
Exchange as that term is defined in Section 3(a)(3)
of the Act.’’ See Exchange Rule 1.5(n).
2 17
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
129
Exchange pursuant to EDGA Rules
15.1(a) and (c) (‘‘Fee Schedule’’) to
adopt fees for the recently adopted
ALLB routing strategy.
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 adopt fees
for the ALLB routing strategy. In sum,
ALLB is a routing option under which
the order checks the System 6 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’’).7
Specifically, an order subject to the
ALLB routing option would execute first
against liquidity on the EDGA Book.8
Any remainder would then be routed to
BZX, BYX, and/or EDGX in accordance
with the System routing table.9
The Exchange now proposes to adopt
three new fee codes, AX, AY, and AZ
and related fees for the ALLB routing
strategy. These fee codes would enable
6 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).
7 See Exchange Rule 11.11(g)(7). See also
Securities Exchange Act Release No. 76455
(November 17, 2015), 80 FR 73009 (November 23,
2015) (SR–EDGA–2015–42).
8 The term ‘‘EDGA Book’’ is defined as ‘‘the
System’s electronic file of orders.’’ See Exchange
Rule 1.5(d).
9 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).
E:\FR\FM\04JAN1.SGM
04JAN1
130
Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices
the Exchange to pass through the rate
that BATS Trading, Inc. (‘‘BATS
Trading’’), the Exchange’s affiliated
routing broker-dealer, would be charged
for routing orders to BZX, BYX, and
EDGA.10 Each of the proposed fee codes
are described as follows:
• Fee Code AX. Order routed to
EDGX using the ALLB routing strategy
would yield fee code AY and be charged
a fee of $0.00290 per share in securities
priced at or above $1.00. Orders
yielding fee code AX in securities
priced below $1.00 would be charged a
fee of 0.30% of the transaction’s dollar
value.
• Fee Code AY. Order routed to BYX
using the ALLB routing strategy would
yield fee code AY and receive a rebate
of $0.00150 per share in securities
priced at or above $1.00. Orders
yielding fee code AY in securities
priced below $1.00 would be charged a
fee of 0.10% of the transaction’s dollar
value.
• Fee Code AZ. Order routed to BZX
using the ALLB routing strategy would
yield fee code AZ and be charged a fee
of $0.00300 per share in securities
priced at or above $1.00. Orders
yielding fee code AZ in securities priced
below $1.00 would be charged a fee of
0.30% of the transaction’s dollar value.
BATS Trading will pass through the
above rates to the Exchange and the
Exchange, in turn, will pass through
that exact rate to its Members. The
proposed rates would enable the
Exchange to equitably allocate its costs
among all Members utilizing the ALLB
routing strategy.
Implementation Date
The Exchange proposes to implement
this amendment to its Fee Schedule on
January 4, 2016, but the proposed fee
codes and their associated rates will not
be available until January 7, 2016, the
date upon which it announced to
Members that it would implement the
ALLB routing strategy.11
tkelley on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,12
in general, and furthers the objectives of
10 Orders using the ALLB routing option that
execute on the Exchange would be subject to the
Exchange’s standard fees and rebates, unless the
Member achieves a volume tiered reduced fee or
enhanced rebate.
11 See BATS Announces ALLB Routing Option,
available at https://cdn.batstrading.com/resources/
release_notes/2015/BATS-ALL-BATS-RoutingStrategy-Release-Schedule-Updated.pdf. The
Exchange notes that the Fee Schedule’s date was
amended to January 4, 2016 in file no. SR–EDGA–
2015–46 (December 8, 2015).
12 15 U.S.C. 78f.
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16:43 Dec 31, 2015
Jkt 238001
Section 6(b)(4),13 in particular, as it is
designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its Members and
other persons using its facilities. The
Exchange believes that its proposed
rates represent an equitable allocation of
reasonable dues, fees, and other charges
among Members and other persons
using its facilities because the Exchange
does not levy additional fees or offer
additional rebates for orders that it
routes to BZX, BYX, and EDGX through
BATS Trading. The Exchange believes
that its proposed pass through rate for
orders that yield fee codes AX, AY or
AZ is equitable and reasonable because
it accounts for the rate that BATS
Trading would be subject to for orders
it routes and are executed on EDGX,
BYX, and BZX. In addition, the proposal
allows the Exchange to pass-through to
its Members the rate for orders that are
routed to EDGX, BYX, and BZX using
the ALLB routing strategy. Furthermore,
the Exchange notes that routing through
BATS Trading is voluntary. Lastly, the
Exchange also believes that the
proposed amendment is nondiscriminatory because it applies
uniformly to all Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that this
change represents a significant
departure from previous pricing offered
by the Exchange or pricing offered by
the Exchange’s competitors.
Additionally, Members may opt to
disfavor the Exchange’s pricing if they
believe that alternatives offer them
better value. Accordingly, the Exchange
does not believe that the proposed
changes will impair the ability of
Members or competing venues to
maintain their competitive standing in
the financial markets. The Exchange
believes that its proposal to pass
through the rates that BATS Trading
would be subject to for orders routing to
EDGX, BYX, and BZX using the ALLB
routing strategy to Members would
increase intermarket competition
because it offers customers an
alternative means to route orders to
those venues. In addition, the proposed
pricing would not provide any
advantage to Users when routing to
EDGX, BYX or BYX as compared to
other methods of routing or connectivity
available to Users by the Exchange
because the proposed rates are identical
to what the Member would be subject to
if it routed to those venues directly. The
Exchange believes that its proposal
would not burden intramarket
competition because the proposed rate
would apply uniformly to all Members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
Members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and paragraph (f) of Rule
19b–4 thereunder.15 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–2015–45 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–2015–45. 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
14 15
13 15
PO 00000
U.S.C. 78f(b)(4).
Frm 00070
Fmt 4703
15 17
Sfmt 4703
E:\FR\FM\04JAN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
04JAN1
Federal Register / Vol. 81, No. 1 / Monday, January 4, 2016 / Notices
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 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 No. SR–EDGA–
2015–45 and should be submitted on or
before January 25, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Jill M. Peterson,
Assistant Secretary.
BILLING CODE 8011–01–P
[Release No. 34–76779; File No. SR–
NASDAQ–2015–157]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify the
Professional Subscriber Fee for NonDisplay Usage via Direct Access
tkelley on DSK3SPTVN1PROD with NOTICES
December 28, 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 December
18, 2015, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
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
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate Sep<11>2014
16:43 Dec 31, 2015
Jkt 238001
NASDAQ proposes to modify the fee
structure applicable to Professional
Subscribers (‘‘Subscribers’’) for NonDisplay Usage via Direct Access. While
the changes proposed herein are
effective upon filing, the Exchange has
designated that the amendments be
operative on January 1, 2016.
The text of the proposed rule change
is below. Proposed new language is
italicized; proposed deletions are
bracketed.
NASDAQ Stock Market Rules
Equity Rules
*
*
*
*
*
7023. NASDAQ Depth-of-Book Data
(a) No change.
(b) Subscriber Fees.
(1)–(3) No change.
(4) Professional Subscribers pay a
monthly fee for Non-Display Usage
based upon Direct Access to NASDAQ
Level 2, NASDAQ TotalView, or
NASDAQ OpenView:
1–[10]39 .........
[11–29] ...........
[30–49] ...........
[5]40–99 .........
100–249 .........
250+ ...............
SECURITIES AND EXCHANGE
COMMISSION
1 15
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Subscribers
[FR Doc. 2015–32987 Filed 12–31–15; 8:45 am]
16 17
solicit comments on the proposed rule
change from interested persons.
Monthly fee
$3[00]75 per Subscriber
[$3,300.00]
[$9,000.00]
$15,000.00 per firm
$30,000.00 per firm
$75,000.00 per firm
The Professional Subscriber fee for
Non-Display Usage via Direct
Access[ed] applies to any Subscriber
that accesses any data elements
included in any Depth-of-Book data
feed.
(c)–(f) No change.
*
*
*
*
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NASDAQ 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.
NASDAQ has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
131
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to modify and simplify the fee
structure applicable to Professional
Subscribers for Non-Display Usage via
Direct Access. Specifically, the
Exchange proposes to remove the 11–29
Subscriber and 30–49 Subscriber pricing
tiers and replace the 1–10 Subscriber
tier priced at $300 per Subscriber with
a 1–39 Subscriber tier priced at $375 per
Subscriber. The 50–99 Subscriber tier
priced at $15,000 per firm is
subsequently being adjusted to apply
between [sic] 40–99 Subscribers. Minor
clarificatory and typographical changes
are also being included in the proposed
rule change. This proposed rule change
will not affect the pricing of the
NASDAQ Level 2, NASDAQ TotalView
or NASDAQ OpenView NonProfessional Subscriber fees.
This represents the first price revision
since the 2012 introduction of the
current tiered Non-Display fee model.
Notwithstanding this, NASDAQ has
invested in its systems, networks and
operational controls to ensure that its
depth offering meet [sic] the same high
level of performance and resiliency that
customers have come to expect. The
Exchange has also upgraded and
refreshed its disaster recovery
capabilities, adding to the increased
focus on redundancy and resiliency.
NASDAQ has also invested in, and
continues to make enhancements to, the
Net Order Imbalance Indicator (‘‘NOII’’).
The NOII is a vital imbalance data tool,
and is included as a part of Nasdaq
TotalView. It is designed to specifically
increase the value of auction
information, and provide a greater level
of transparency around these events.
One enhancement result is that shares
indicated in the imbalance will now
represent the excess shares to buy or sell
at the reference price, inclusive of
hidden, reserve and immediate or
cancel (‘‘IOC’’) orders.
The new fee structure also represents
a realization of the actual usage by
Subscribers, as the tiers being removed
were experiencing limited use.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,3
in general, and with Sections 6(b)(4) and
3 15
E:\FR\FM\04JAN1.SGM
U.S.C. 78f.
04JAN1
Agencies
[Federal Register Volume 81, Number 1 (Monday, January 4, 2016)]
[Notices]
[Pages 129-131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32987]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76777; File No. SR-EDGA-2015-45]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change Related to
Fees for Use of EDGA Exchange, Inc.
December 28, 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 December 15, 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, II,
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to EDGA Rules
15.1(a) and (c) (``Fee Schedule'') to adopt fees for the recently
adopted ALLB routing strategy.
---------------------------------------------------------------------------
\5\ The term ``Member'' is defined as ``any registered broker or
dealer, or any person associated with a registered broker or dealer,
that has been admitted to membership in the Exchange. A Member will
have the status of a ``member'' of the Exchange as that term is
defined in Section 3(a)(3) of the Act.'' See Exchange Rule 1.5(n).
---------------------------------------------------------------------------
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 adopt fees for the ALLB routing strategy.
In sum, ALLB is a routing option under which the order checks the
System \6\ 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'').\7\ Specifically, an order subject to the ALLB
routing option would execute first against liquidity on the EDGA
Book.\8\ Any remainder would then be routed to BZX, BYX, and/or EDGX in
accordance with the System routing table.\9\
---------------------------------------------------------------------------
\6\ 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).
\7\ See Exchange Rule 11.11(g)(7). See also Securities Exchange
Act Release No. 76455 (November 17, 2015), 80 FR 73009 (November 23,
2015) (SR-EDGA-2015-42).
\8\ The term ``EDGA Book'' is defined as ``the System's
electronic file of orders.'' See Exchange Rule 1.5(d).
\9\ 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).
---------------------------------------------------------------------------
The Exchange now proposes to adopt three new fee codes, AX, AY, and
AZ and related fees for the ALLB routing strategy. These fee codes
would enable
[[Page 130]]
the Exchange to pass through the rate that BATS Trading, Inc. (``BATS
Trading''), the Exchange's affiliated routing broker-dealer, would be
charged for routing orders to BZX, BYX, and EDGA.\10\ Each of the
proposed fee codes are described as follows:
---------------------------------------------------------------------------
\10\ Orders using the ALLB routing option that execute on the
Exchange would be subject to the Exchange's standard fees and
rebates, unless the Member achieves a volume tiered reduced fee or
enhanced rebate.
---------------------------------------------------------------------------
Fee Code AX. Order routed to EDGX using the ALLB routing
strategy would yield fee code AY and be charged a fee of $0.00290 per
share in securities priced at or above $1.00. Orders yielding fee code
AX in securities priced below $1.00 would be charged a fee of 0.30% of
the transaction's dollar value.
Fee Code AY. Order routed to BYX using the ALLB routing
strategy would yield fee code AY and receive a rebate of $0.00150 per
share in securities priced at or above $1.00. Orders yielding fee code
AY in securities priced below $1.00 would be charged a fee of 0.10% of
the transaction's dollar value.
Fee Code AZ. Order routed to BZX using the ALLB routing
strategy would yield fee code AZ and be charged a fee of $0.00300 per
share in securities priced at or above $1.00. Orders yielding fee code
AZ in securities priced below $1.00 would be charged a fee of 0.30% of
the transaction's dollar value.
BATS Trading will pass through the above rates to the Exchange and
the Exchange, in turn, will pass through that exact rate to its
Members. The proposed rates would enable the Exchange to equitably
allocate its costs among all Members utilizing the ALLB routing
strategy.
Implementation Date
The Exchange proposes to implement this amendment to its Fee
Schedule on January 4, 2016, but the proposed fee codes and their
associated rates will not be available until January 7, 2016, the date
upon which it announced to Members that it would implement the ALLB
routing strategy.\11\
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\11\ See BATS Announces ALLB Routing Option, available at https://cdn.batstrading.com/resources/release_notes/2015/BATS-ALL-BATS-Routing-Strategy-Release-Schedule-Updated.pdf. The Exchange notes
that the Fee Schedule's date was amended to January 4, 2016 in file
no. SR-EDGA-2015-46 (December 8, 2015).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\12\ in general, and
furthers the objectives of Section 6(b)(4),\13\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange believes that its proposed rates represent an
equitable allocation of reasonable dues, fees, and other charges among
Members and other persons using its facilities because the Exchange
does not levy additional fees or offer additional rebates for orders
that it routes to BZX, BYX, and EDGX through BATS Trading. The Exchange
believes that its proposed pass through rate for orders that yield fee
codes AX, AY or AZ is equitable and reasonable because it accounts for
the rate that BATS Trading would be subject to for orders it routes and
are executed on EDGX, BYX, and BZX. In addition, the proposal allows
the Exchange to pass-through to its Members the rate for orders that
are routed to EDGX, BYX, and BZX using the ALLB routing strategy.
Furthermore, the Exchange notes that routing through BATS Trading is
voluntary. Lastly, the Exchange also believes that the proposed
amendment is non-discriminatory because it applies uniformly to all
Members.
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\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe that this change represents a
significant departure from previous pricing offered by the Exchange or
pricing offered by the Exchange's competitors. Additionally, Members
may opt to disfavor the Exchange's pricing if they believe that
alternatives offer them better value. Accordingly, the Exchange does
not believe that the proposed changes will impair the ability of
Members or competing venues to maintain their competitive standing in
the financial markets. The Exchange believes that its proposal to pass
through the rates that BATS Trading would be subject to for orders
routing to EDGX, BYX, and BZX using the ALLB routing strategy to
Members would increase intermarket competition because it offers
customers an alternative means to route orders to those venues. In
addition, the proposed pricing would not provide any advantage to Users
when routing to EDGX, BYX or BYX as compared to other methods of
routing or connectivity available to Users by the Exchange because the
proposed rates are identical to what the Member would be subject to if
it routed to those venues directly. The Exchange believes that its
proposal would not burden intramarket competition because the proposed
rate would apply uniformly to all Members.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from Members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4
thereunder.\15\ 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.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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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-2015-45 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-2015-45. 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
[[Page 131]]
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 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 No. SR-EDGA-2015-45 and should be
submitted on or before January 25, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-32987 Filed 12-31-15; 8:45 am]
BILLING CODE 8011-01-P