[Federal Register Volume 78, Number 20 (Wednesday, January 30, 2013)]
[Notices]
[Pages 6394-6398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01983]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68714; File No. SR-EDGA-2013-01]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Fees for EdgeBook Attributed\SM\
January 23, 2012.
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 January 15, 2013 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 self-regulatory
organization. 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (i) charge Members \3\ and non-Members
fees for internal and external distribution of EdgeBook Attributed\SM\,
the Exchange's attributed book feed, and (ii) offer a new incentive
program for Members that choose to attribute orders on the Exchange
(the ``Edge Attribution Incentive Program''). All of the changes
described herein are applicable to EDGA Members and non-Members, except
for the Edge Attribution Incentive Program, which is applicable only to
EDGA Members. The text of the proposed rule change is available on the
Exchange's Internet Web site at www.directedge.com, at the Exchange's
principal office, and at the Public Reference Room of the Commission.
---------------------------------------------------------------------------
\3\ As defined in Rule 1.5(n).
---------------------------------------------------------------------------
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 self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
In SR-EDGA-2011-19,\4\ the Exchange made available the EDGA Book
Feed (``EdgeBook Depth A\SM\'') to Members and non-Members. EdgeBook
Depth A\SM\ is a data feed that contains all orders for securities
trading on the Exchange, including all displayed orders for listed
securities trading on EDGA, order executions, order cancellations,
order modifications, order identification numbers and administrative
messages. EdgeBook Depth A\SM\ offers real-time data, thereby allowing
Member firms to more accurately price their orders based on EDGA's view
of the depth of book information. It also provides Members the ability
to track their own orders from order entry to execution. It is
[[Page 6395]]
available in both unicast and multicast formats.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 64792 (July 1,
2011), 76 FR 39959 (July 7, 2011) (SR-EDGA-2011-19).
---------------------------------------------------------------------------
In SR-EDGA-2012-15,\5\ the Exchange modified the EDGA fee schedule
by codifying the fees associated with the receipt of EdgeBook Depth
A\SM\. In SR-EDGA-2012-34,\6\ the Exchange amended Rule 11.5, entitled
``Orders and Modifiers'', to allow for the use of Attributable Orders
\7\ submitted to the Exchange on EdgeBook Depth A\SM\, namely EdgeBook
Attributed\SM\, without charge. EdgeBook Attributed\SM\ allows Members
and non-Members of the Exchange (collectively referred to as
``Recipients'') the option to view the market participant identifier
(``MPID'') of Members of the Exchange who choose to display their
MPID(s) on EdgeBook Depth A\SM\ on an order-by-order basis through the
use of Attributable Orders.
---------------------------------------------------------------------------
\5\ See Securities and Exchange Release No. 66863 (Apr. 26,
2012), 77 FR 26059 (May 2, 2012) (SR-EDGA-2012-15). The current fees
for EDGA Book Feed (now called EdgeBook Depth A\SM\) are $500/month
for internal distribution and $2,500/month for external
distribution. The proposed rule filing does not impact the current
EdgeBook Depth A\SM\ fees with regard to the non-attributed book
feed.
\6\ See Securities Exchange Act Release No. 67553 (Aug. 1,
2012), 77 FR 47150 (Aug. 7, 2012) (SR-EDGA-2012-34).
\7\ See EDGA Rule 11.5(c)(18).
---------------------------------------------------------------------------
Upon the Exchange's initial offering of EdgeBook Attributed\SM\,
such service was provided at no cost. In SR-EDGA-2012-34, the Exchange
stated that ``[s]hould EDGA determine to charge fees associated with
EdgeBook Attributed\SM\, EDGA will submit a proposed rule change to the
[Securities and Exchange] Commission in order to implement those
fees.'' \8\ This proposal is designed to implement fees for the receipt
of EdgeBook Attributed\SM\ and introduce the Edge Attribution Incentive
Program.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 67553 (Aug. 1,
2012), 77 FR 47150, 47151 (Aug. 7, 2012) (SR-EDGA-2012-34).
---------------------------------------------------------------------------
The proposed rule change to the EDGA fee schedule codifies such a
fee associated with the receipt of EdgeBook Attributed\SM\. Such fees
are in addition to the current fees assessed for EdgeBook Depth A\SM\
for both Internal and External Distributors.\9\ The amount of the
monthly fees for EdgeBook Attributed\SM\ would depend on whether the
distributor is an ``Internal Distributor'' or ``External Distributor.''
Internal Distributors are proposed to be charged $2,500 per month for
EdgeBook Attributed\SM\ and External Distributors are proposed to be
charged $5,000 per month for EdgeBook Attributed\SM\. The fee paid by
an External Distributor includes the Internal Distributor Fee and thus
allows an External Distributor to provide data both internally (i.e.,
to users within their own organization) and externally (to users
outside their own organization). Additionally, Distributors will only
pay one distributor fee, regardless of the number of locations or users
to which the feed is received or distributed. Finally, Distributors
will not be charged user fees for receiving EdgeBook Attributed\SM\.
---------------------------------------------------------------------------
\9\ A ``Distributor'' of Exchange data is any entity that
receives EdgeBook Depth A\SM\ directly from the Exchange or
indirectly through another entity and then distributes such data
either internally (within that entity) (``Internal Distributor'') or
externally (outside that entity) (``External Distributor'').
---------------------------------------------------------------------------
The Exchange also proposes to adopt an Edge Attribution Incentive
Program to encourage Members to utilize Attributable Orders to convey
their identity on EdgeBook Attributed\SM\ by providing Members with an
opportunity to be rewarded for providing their valuable data to the
Exchange. In particular, the Edge Attribution Incentive Program would
provide a payment to Members who enter Attributable Orders into the
Exchange's System \10\ in at least 100 symbols over 10 consecutive
trading days over the course of a month. Each month the Exchange would
set aside 25% of the revenue generated in connection with fees received
from EdgeBook Attributed\SM\, as described above (the ``Revenue
Allotment''). From the Revenue Allotment, the Exchange would provide a
payment to eligible Members who qualified for the Edge Attribution
Incentive Program based on the percentage of executed share volume from
their Attributable Orders entered into the Exchange's System. For
example, if a Member qualifies for the Edge Attribution Incentive
Program and that Member's Attributable Orders accounted for 10% of all
executed shares from Attributable Orders entered into the Exchange's
System for that month, such Member would receive 10% of the Revenue
Allotment. The remaining 90% of the funds in the Revenue Allotment
would be distributed as payments to other Members that met the
requirements of the Edge Attribution Incentive Program based on their
respective executed share of volume from Attributable Orders entered
into the Exchange's System. In addition, a Member is not required to
purchase EdgeBook Attributed\SM\ in order to receive payment under the
Edge Attribution Incentive Program.
---------------------------------------------------------------------------
\10\ As defined in Rule 1.5(cc).
---------------------------------------------------------------------------
The Exchange intends to implement the proposed rule change on or
about February 1, 2013.
2. Statutory Basis
The Exchange believes that the proposed rule change to the EDGA fee
schedule for EdgeBook Attributed\SM\ is consistent with the objectives
of Section 6 of the Securities Exchange Act of 1934 (the ``Act''),\11\
in general, and furthers the objectives of Section 6(b)(4) \12\ in
particular, as it is designed to provide for the equitable allocation
of reasonable dues, fees and other charges among its members and
issuers and other persons using any facility or system which the
Exchange operates or controls. The fees are not unreasonably
discriminatory and are equitably allocated. The fees for Members and
non-Members are uniform except with respect to reasonable distinctions
with respect to internal and external distribution.\13\ The Exchange
proposes charging External Distributors more than Internal Distributors
because of higher administrative costs associated with monitoring
External Distributors ongoing reporting, as provided in the Direct Edge
Data Vendor Agreement and market data requirements referenced therein.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(1)
\12\ 15 U.S.C. 78f(b)(4).
\13\ The Exchange notes that distinctions based on external
versus internal distribution have been previously filed with the
Commission by the Exchange, NASDAQ Exchange, NASDAQ OMX BX, and
NASDAQ OMX PSX. See Securities and Exchange Act Release No. 66863
(Apr. 26, 2012), 77 FR 26059 (May 2, 2012) (SR-EDGA-2012-15). See
also Nasdaq Rule 7019(b). See also Securities Exchange Act Release
No. 62876 (September 9, 2010), 75 FR 56624 (September 16, 2010) (SR-
Phlx-2010-120). See also Securities Exchange Act Release No. 62907
(September 14, 2010), 75 FR 57314 (September 20, 2010) (SR-NASDAQ-
2010-110). See also Securities Exchange Act Release No. 63442
(December 6, 2010), 75 FR 77029 (December 10, 2010) (SR-BX-2010-
081).
---------------------------------------------------------------------------
The fees are fair and reasonable because they compare favorably to
fees that other markets charge for similar products.\14\ For example,
NASDAQ's depth of book data feed, the NASDAQ TotalView ITCH
(``TotalView''), features all displayed quotes and orders attributed to
specific market participants.\15\ TotalView provides
[[Page 6396]]
market participants with multiple and varied services in a single
feed.\16\ While the cost of TotalView varies by number of subscribers
and the specific type of access, each fee provides the entire TotalView
book feed, inclusive of all services and features, including
attribution of orders. Conversely, EdgeBook Attributed\SM\ is unlike
other market data products such as TotalView. Members and non-Members
who subscribe to EdgeBook Attributed\SM\ must also subscribe to
EdgeBook Depth. However, Members and non-Members who subscribe to
EdgeBook Depth A\SM\ are not obligated to purchase or subscribe to
EdgeBook Attributed\SM\. Thus, the Exchange differentiates its pricing
accordingly. The Exchange intends to charge a single, flat rate for
EdgeBook Attributed\SM\ as it views it as an optional, a la carte
feature which enhances the value and scope of information on EdgeBook
Depth A\SM\. Therefore, the pricing of EdgeBook Attributed\SM\ will
necessarily and understandably differ from market data products such as
TotalView, which offer bundled pricing for the entire book feed,
instead of a la carte pricing for specific features.\17\ In addition,
the fees are fair and reasonable because competition provides an
effective constraint on the market data fees that the Exchange has the
ability and incentive to charge for its market data products.
---------------------------------------------------------------------------
\14\ Other exchanges offer a version of their book feed with
member order attribution. See, e.g., BATS, Market Data Products,
Multicast PITCH, http://www.batstrading.com/market_data/products/
(describing BATS Multicast PITCH, which provides depth of book
quotations and execution information while providing optional
attribution functionality); Securities Exchange Act Release No.
63291 (Nov. 9, 2010), 75 FR 70311 (Nov. 17, 2010) (SR-NYSEArca-2010-
97) (describing NYSE Arcabook, which includes, among other things,
displays of attributed orders by market makers and ETP holders);
Securities Exchange Act Release No. 46521 (Sept. 20, 2002), 76 FR
61179 (Sept. 27, 2002) (SR-NASD-2002-33) (describing NASDAQ
TotalView data feed, which includes, among other things, displays of
attributed quotes and orders).
\15\ TotalView features both attributed and non-attributed
feeds. See Securities Exchange Act Release No. 46521 (Sept. 20,
2002), 76 FR 61179 (Sept. 27, 2002) (SR-NASD-2002-33). NYSE ArcaBook
features an attributed feed at a fee of $750 per month, in addition
to separate fees for professional and non-professional subscribers
ranging from $0-15 per month. See NYSE Technologies, Market Data,
NYSE ArcaBook, http://www.nyxdata.com/arcabook.
\16\ See NASADAQ, NASDAQ TotalView-ITCH, http://www.nasdaqtrader.com/trader.aspx?id=totalview (describing services
and fees for TotalView).
\17\ For example, TotalView is priced at a monthly fee of $70
per professional or corporate subscriber and $14 per non-
professional subscriber for coverage of NASDAQ issued securities,
and $6 per professional or corporate subscriber and $1 per non-
professional subscriber for coverage of NYSE and Amex issued
securities. See NASDAQ, NASDAQ TotalView-ITCH, http://www.nasdaqtrader.com/trader.aspx?id=totalview.
---------------------------------------------------------------------------
The revenue generated from purchases of EdgeBook Attributed\SM\
will pay for the development, marketing, technical infrastructure and
operating costs of an important tool for Recipients to use for purposes
such as analysis and intake of additional information to assist them in
their ultimate trading decisions. Profits generated above these costs
will help offset the costs that the Exchange incurs in operating and
regulating a highly efficient and reliable platform for the trading of
U.S. equities. Furthermore, the increased revenue stream from EdgeBook
Attributed\SM\ will allow the Exchange to continue to offer it at a
reasonable rate, consistent with fees that other markets charge for
similar products.
The Exchange believes that Members will recognize the value of
EdgeBook Attributed\SM\ and that the increased transparency of
liquidity on EdgeBook Attributed\SM\ will beget additional liquidity.
As a result, the Exchange believes that increased value in the data
disseminated helps Exchange members hone in on trading opportunities by
better understanding the quality and transparency of the Exchange's
quote quality. This will, in turn, help to enhance the overall
execution quality on the Exchange.
The Exchange also believes that the proposed fees for EdgeBook
Attributed\SM\ are consistent with Section 6(b)(5) of the Act,\18\
which requires, among other things, that the Exchange's rules not be
designed to unfairly discriminate between customers, issuers, brokers
or dealers. The Exchange makes all services and products subject to
these fees available on a non-discriminatory basis to similarly
situated Recipients because the service is purely optional and fees
charged for EdgeBook Attributed\SM\ will apply uniformly to all
Recipients, irrespective of whether the Recipient is a Member of the
Exchange. Purchase of the Service is not a prerequisite for
participation on the Exchange, nor is membership to the Exchange a
prerequisite to purchase the Service. Only those Recipients that deem
the product to be of sufficient overall value and usefulness will
purchase it.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In addition, the proposed fees are also consistent with Section
6(b)(5) of the Act \19\ 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 as it will benefit all
Recipients by: (i) promoting transparency through the codification of
uniform fees for EdgeBook Attributed\SM\; and (ii) providing additional
information regarding quotations displayed on the Exchange by various
Members, which may aid Recipients in their trading decisions.
Specifically, any Member that wishes to publicly disclose their
identity (through their MPID) by using Attributable Orders will be
permitted to do so, and such Attributable Orders will be analogous to
the orders or quotations that these same Members provide in other
contexts (e.g., on the floor of a floor-based stock exchange or in the
over-the-counter market through direct interaction). In addition, the
Exchange believes that EdgeBook Attributed\SM\ furthers the objectives
of Section 6(b)(5) of the Act \20\ by promoting increased quote
transparency as Members are encouraged to utilize Attributable Orders
through the Edge Attribution Incentive Program. The increased use of
Attributable Orders by Members would provide additional, useful
information regarding orders/quotations displayed on the Exchange,
including information on the identity of contra-parties to
transactions. The Exchange believes that this enhanced information
would aid Recipients of EdgeBook Attributed\SM\ in their trading
decisions. In addition, EDGA has made a voluntary decision to make
EdgeBook Attributed\SM\ available. EDGA is not required by the Act in
the first instance to make the data available. EDGA has chosen to make
EdgeBook Attributed\SM\ available to improve market quality, attract
order flow, and increase transparency. It will continue to make such
data available until such time as it changes its rule.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78f(b)(5).
\20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange also believes that the proposal is consistent with the
goals of Regulation NMS.\21\ In adopting Regulation NMS, the Commission
granted self-regulatory organizations and broker-dealers increased
authority and flexibility to offer new and unique market data services
to the public. The Commission believed this authority would expand the
amount of data available to market participants, and also spur
innovation and competition for the provision of market data. EdgeBook
Attributed\SM\ appears to be precisely the sort of market data service
that the Commission envisioned when it adopted Regulation NMS.\22\
EdgeBook
[[Page 6397]]
Attributed\SM\ will allow Recipients to purchase a service that will
provide them a means to view the MPID of certain Members who choose to
use Attributable Orders while at the same time enabling the Exchange to
better cover its infrastructure costs and to improve its market
technology and services. Efficiency is promoted when Members who do not
need the EDGA Book Feed data are not required to receive (and pay for)
such data. The Exchange also believes that efficiency is promoted when
Members may choose to receive (and pay for) additional market data
based on their own internal analysis of the need for such data.
Competition is promoted as the Exchange cannot set unreasonable fees
without losing business to its competitors.\23\
---------------------------------------------------------------------------
\21\ See Securities Exchange Act Release No. 51808 (June 9,
2006), 70 FR 37496 (June 29, 2005) (sic).
\22\ See Securities and Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37597 (June 29, 2005) (``[E]fficiency is
promoted when broker-dealers who do not need the data beyond the
prices, sizes, market center identifications of the NBBO and
consolidated last sale information are not required to receive (and
pay for) such data. The Commission also believes that efficiency is
promoted when broker-dealers may choose to receive (and pay for)
additional market data based on their own internal analysis of the
need for such data.'').
\23\ See infra discussion in section on ``Self-Regulatory
Organization's Statement on Burden on Competition.''
---------------------------------------------------------------------------
Additionally, the Exchange believes that the Edge Attribution
Incentive Program furthers the objectives of Section 6(b)(4) \24\ in
particular, as it is designed to provide for the equitable allocation
of reasonable dues, fees and other charges among members and issuers
and other persons using any facility or system which the Exchange
operates or controls. The Edge Attribution Incentive Program encourages
Members to utilize Attributable Orders to convey their identity on
EdgeBook Attributed\SM\. It represents a reasonable and equitable
approach in that it financially rewards those Members that provide
their valuable data to the Exchange and thereby help to contribute to
the overall quality of EdgeBook Attributed\SM\ as a data feed.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the Edge Attribution Incentive Program
is also equitable and reasonable because it will attract additional
order flow from Members motivated to receive the incentive offered,
thereby enhancing the quality of the data on EdgeBook Depth A\SM\.
Attributable Orders, similar to all market data, provide Members with
valuable trading information and provide increased transparency to
investors. The Exchange believes that such increased transparency will
lead to additional order flow and increased opportunities for price
discovery by Members. Specifically, the Exchange believes that the Edge
Attribution Incentive Program will also increase order flow as Members
will be motivated to receive the incentive offered under the Edge
Attribution Incentive Program, and contra-side parties will look to
execute against Members that are attributing their orders. For example,
Market Makers \25\ may want to utilize Attributable Orders to advertise
the names of the securities they trade in to attract potential issuers
or to advertise to the market that they maintain an inventory in
particular securities. Similarly, retail brokerage firms may desire to
utilize Attributable Orders to advertise their firm names with the
intent to draw in contra-parties to trade against and thus bolster
execution quality, price discovery, and resulting speed of execution
for their clients. The associated potential rise in order volume would
increase the potential revenue to the Exchange, allowing the Exchange
to spread its administrative and infrastructure costs over a greater
number of shares. These lower per share costs in turn would allow the
Exchange to pass on such savings to Members in the form of such an
incentive. The increased liquidity would also benefit investors by
deepening EDGA's liquidity pool, allowing investors to enjoy cost
savings as a result of obtaining better execution quality, supporting
the quality of price discovery, promoting market transparency and
improving investor protection.
---------------------------------------------------------------------------
\25\ As defined in Rule 1.5(l).
---------------------------------------------------------------------------
The incentive is similar to other volume-based rebates on the
Exchange, which have been widely adopted in the cash equities
markets.\26\ The Exchange believes the Edge Attribution Incentive
Program, which is similar to other volume-based rebates on the
Exchange's fee schedule, is equitable because it is available and
uniformly applied to all Members. The Edge Attribution Incentive
Program also provides discounts that are reasonably related to the
value of an exchange's market quality associated with higher levels of
market activity, such as higher levels of liquidity provision and
introduction of higher volumes of orders into the price and volume
discovery processes.
---------------------------------------------------------------------------
\26\ EDGA allows Members to utilize volume-based tiers, as
described in Footnotes 2 and 4, among others, to the EDGA Fee
Schedule. See, e.g., EDGA Fee Schedule, https://www.directedge.com/Membership/FeeSchedule/EDGAFeeSchedule.aspx.
---------------------------------------------------------------------------
The Exchange believes that the Edge Attribution Incentive Program
is consistent with Section 6(b)(5) of the Act,\27\ which requires,
among other things, that the Exchange's rules not be designed to
unfairly discriminate between customers, issuers, brokers or dealers.
The Exchange believes that the Edge Attribution Incentive Program is
equitable because participation in the Edge Attribution Incentive
Program is purely optional. Only those Members that deem the Edge
Attribution Incentive Program to be of sufficient overall value and
usefulness will participate. Moreover, the requirements necessary to
qualify for payments received under the Edge Attribution Incentive
Program (at least 100 symbols over 10 consecutive trading days over the
course of a month) are equitable and do not unfairly discriminate
between Members who choose to attribute, as the payments will be
offered uniformly to all Members who meet such requirements. Such
requirements provide a clear benchmark by identifying a threshold that
is not unreasonably difficult for a meaningful and consistent
attributor to achieve. As Attributable Orders contain valuable trading
information to the Exchange, the Edge Attribution Incentive Program is
not unfairly discriminatory in its design to allocate the Revenue
Allotment to Members who attribute in proportion to the executed share
volume from such Member's Attributable Orders entered into the
Exchange's System. Such data is also valuable to Members and non-
Members who use the additional information for various purposes. For
example, certain Recipient broker-dealers may use the data to aid their
trading decisions, while Recipient smart routers may use the data to
aid in building their own consolidated ticker plant. Such information
enhances a Recipient's trading decisions as the transparency of knowing
the identity of the potential counterparty may provide a Recipient with
additional information regarding the reliability and quality of the
attributed quote.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Lastly, the Exchange believes that the Edge Attribution Incentive
Program furthers the objectives of Section 6(b)(5) of the Act \28\ by
promoting increased quote transparency on EdgeBook Attributed\SM\ as
Members are encouraged to utilize Attributable Orders. The increased
use of Attributable Orders by Members would increase transparency by
providing additional, useful information regarding orders/quotations
displayed on the Exchange, including information on the identity of
contra-parties to transactions. The Exchange believes that this
enhanced information would aid Recipients of EdgeBook Attributed \SM\
in their trading decisions.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in
[[Page 6398]]
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.
There is significant competition for the provision of market data
to market participants, as well as competition for the orders that
generate that data. In introducing the proposed fees for EdgeBook
Attributed \SM\, the Exchange would be providing a service similar to
those already offered by other market centers.\29\ The existence of
such alternatives ensures that the Exchange cannot set unreasonable
fees, or fees that are unreasonably discriminatory, without losing
business to these alternatives. Thus, as the fees are consistent with
those charged by the Exchange's competitors, EdgeBook Attributed \SM\
would promote competition if it succeeds in providing market
participants with viable and cost-effective alternatives which drive
the market to continually improve products and services to cater to
customers' data needs. Accordingly, the Exchange does not believe that
the fees for EdgeBook Attributed \SM\ will result in any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
---------------------------------------------------------------------------
\29\ See, e.g., BATS, Market Data Products, Multicast PITCH,
http://www.batstrading.com/market_data/products/; Securities
Exchange Act Release No. 63291 (Nov. 9, 2010), 75 FR 70311 (Nov. 17,
2010) (SR-NYSEArca-2010-97) (describing NYSE Arcabook); Securities
Exchange Act Release No. 46521 (Sept. 20, 2002), 76 FR 61179 (Sept.
27, 2002) (SR-NASD-2002-33) (describing NASDAQ TotalView).
---------------------------------------------------------------------------
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 its 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 \30\ and paragraph (f) of Rule 19b-4
thereunder.\31\ 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.
---------------------------------------------------------------------------
\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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 email to [email protected]. Please
include File Number SR-EDGA-2013-01 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-2013-01. 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 (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 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-EDGA-2013-01 and should be
submitted on or before February 20, 2013.
---------------------------------------------------------------------------
\32\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01983 Filed 1-29-13; 8:45 am]
BILLING CODE 8011-01-P