[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39959-39960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17034]
[[Page 39959]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64792; File No. SR-EDGA-2011-19]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Make
Available Without Charge the EDGA Book Feed and To Add a Description of
the EDGA Book Feed to New Rule 13.8
July 1, 2011.
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 June 29, 2011, 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
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to make available without charge the EDGA
book feed (``EDGA Book Feed''), an EDGA data feed that displays depth
of book information. The Exchange also proposes to add a description of
the EDGA Book Feed to new Rule 13.8. The text of the proposed rule
change is attached as Exhibit 5 and is available on the Exchange's Web
site at http://www.directedge.com, at the Exchange's principal office,
and at the Public Reference Room of the Commission.
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 self-regulatory organization has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to describe the
availability of the EDGA Book Feed, a data feed that contains all
orders for securities trading on the Exchange. The EDGA Book Feed is
available to all EDGA members equally at no charge, and offers all
firms real-time data concerning EDGA's depth of book. EDGA makes the
EDGA Book Feed available to all market participants via subscription
through an established connection to EDGA through extranets, direct
connection, and service bureaus. The EDGA Book Feed is available in
multicast and unicast formats.
The EDGA Book Feed contains the following data elements: all
displayed orders for listed securities trading on EDGA, order
executions, order cancellations, order modifications, order
identification numbers, and administrative messages.
By making the EDGA Book Feed data available, EDGA enhances market
transparency and fosters competition among orders and markets. Member
firms may use the EDGA Book Feed to more accurately price their orders
based on EDGA's view of the depth of book information, such as all
displayed limit orders at any point in time. Additionally, Members can
track their own orders from order entry to execution.
The Exchange proposes to add the definition of EDGA Book Feed to
new Rule 13.8(a). In addition, the Exchange proposes to add to Rule
13.8(b) the process by which a Member can obfuscate their unique order
identification number on the EDGA Book Feed for subsequent
replenishments of reserve orders per Market Participant Identifier
(``MPID'') for all logical ports or specific logical ports, as
designated by the Member. In order to do so, and have a randomly
generated order identification number applied to the replenishment of
Member's reserve orders, the Member would contact Member Services via
email or phone. Such feature would be enabled the next trading day by
the Exchange for the Member-selected MPID for all logical ports or
specific logical ports until further instructions are received by
Member Services from the Member. The Exchange believes that the random
order identification number would help deter other market participants
from being able to trace the life of a specific order, including short-
term price movements and trading patterns.
At this time, EDGA does not have plans to charge an additional fee
associated with the receipt of the EDGA Book Feed. Should EDGA
determine to charge fees associated with the EDGA Book Feed, EDGA will
submit a proposed rule change to the Commission in order to implement
those fees.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\3\ in general, and
furthers the objectives of Section 6(b)(5),\4\ in particular, as it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and 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. EDGA believes
that this proposal is in keeping with those principles by promoting
increased transparency through the dissemination of the EDGA Book Feed
and by codifying its availability.
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\3\ 15 U.S.C. 78f.
\4\ 15 U.S.C. 78f(b)(5).
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In addition, EDGA is making a voluntary decision to make this data
available. EDGA is not required by the Act in the first instance to
make the data available, unlike the best bid and offer which must be
made available under the Act. EDGA chooses to make the data available
as proposed in order to improve market quality, to attract order flow,
and to increase transparency. Once this filing becomes effective, EDGA
will be required to continue making the data available until such time
as EDGA changes its rule.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any
[[Page 39960]]
unsolicited written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6)(iii) thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) \7\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\8\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
that the Commission waive the 30-day pre-operative waiting period
contained in Rule 19b-4(f)(6)(iii).\9\ The Exchange has requested such
waiver because it believes that such waiver is consistent with the
protection of investors and the public interest because it would permit
EDGA to immediately provide the information regarding the EDGA Book
Feed access requirements to market participants. Specifically, the
Exchange believes that, because the EDGA Book Feed is already
available, strictly voluntary, and free to receive, waiver is
consistent with the protection of investors and the public interest.
For these reasons, the Commission sees no reason to delay
implementation of the proposed rule change. The Commission believes it
is consistent with the protection of investors and the public interest
to waive the 30-day operative delay, and hereby grants such waiver.\10\
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\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ Id.
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. 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.
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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-EDGA-2011-19 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-EDGA-2011-19. This file
number should be included on the subject line if e-mail 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 (http://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 website
viewing and printing in the Commission's Public Reference Room on
official business days between the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for inspection and copying at the
principal offices 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-2011-19, and should be submitted on or before July
28, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17034 Filed 7-6-11; 8:45 am]
BILLING CODE 8011-01-P