[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Notices]
[Pages 44479-44480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17988]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72675; File No. SR-EDGA-2014-18]
Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Retire
the EDGE Routed Liquidity Report
July 25, 2014.
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 July 18, 2014, 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.
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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 Substance
of the Proposed Rule Change
The Exchange proposes to eliminate reference in Rule 13.9 to the
EDGE Routed Liquidity Report, which is a data product that is to be
discontinued by the Exchange. The Exchange also proposes to delete the
fees related to the EDGE Routed Liquidity Report from its fee schedule.
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.
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
The Exchange proposes to delete reference to the EDGE Routed
Liquidity Report in Rule 13.9 as well as its related fees from the
Exchange's fee schedule. In sum, the EDGE Routed Liquidity Report is a
data feed that contains historical order information for orders routed
to away destinations by the Exchange. The EDGE Routed Liquidity Report
provides routed order information to subscribers on the morning of the
following trading day that includes: Limit price, routed quantity,
symbol, side (bid/offer), time of routing, and the National Best Bid
and Offer at the time of routing. The Exchange now proposes to delete
reference to EDGE Routed Liquidity Report in Rule 13.9 as well as its
related fees from the Exchange's fee schedule because it intends to
discontinue offering this data feed. Therefore, reference to the
product within Exchange's rules and applicable fees in its fee schedule
would no longer serve any legitimate purpose upon the product being
retired by the Exchange. The Exchange has no subscribers to the EDGE
Routed Liquidity Report and will terminate the data feed upon the
operative date of this proposed rule change.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of Section 6(b) of the Act,\3\ in general, and Section
6(b)(5) of the Act,\4\ in particular, in that is promotes just and
equitable principles of trade, removes impediments to, and perfect the
mechanism of, a free and open market and a national market system, and,
in general, protects investors and the public interest. The Exchange
also believes that its proposal is consistent with Section 6(b)(4) of
the Act,\5\ in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and other persons
using its facilities.
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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ 15 U.S.C. 78f(b)(4).
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Specifically, the proposal is consistent with Section 6(b)(5) of
the Act,\6\ in that it eliminates any investor confusion by deleting
references to a data product, and its related fees, that is to be
discontinued by the Exchange, thereby removing impediments to and
perfecting the mechanism of a free and open market and a national
market system, and, in general, protecting investors and the public
interest. In addition, the Exchange has no subscribers to the EDGE
Routed Liquidity Report, the EDGE Routed Liquidity Report is not a core
product offering by the Exchange, nor is the Exchange required by the
Act to offer such a product. The proposed rule change will not permit
unfair discrimination among customers, brokers, or dealers because the
EDGE Routed Liquidity Report will no longer be offered by the Exchange.
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\6\ 15 U.S.C. 78f(b)(5).
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In addition, the Exchange believes that the proposed removal of the
fees for the EDGE Routed Liquidity Report from its fee schedule is
consistent with Section 6(b)(4) of the Act \7\ because it would delete
fees for a data product that is to be discontinued by the Exchange,
thereby eliminating investor confusion. Lastly, the Exchange also
believes that the proposed amendment to its fee schedule is reasonable
and non-discriminatory because it will apply uniformly to all members.
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\7\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposal is consistent with Section
6(b)(8) of the Act \8\ in that it does not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change will remove references to
a data product, and its related fees, that is to be retired by the
Exchange and is not designed to have a competitive impact. Therefore,
the Exchange does not believe the proposed rule change will have any
effect on competition.
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\8\ 15 U.S.C. 78f(b)(8).
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[[Page 44480]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (1)
Significantly affect the protection of investors or the public
interest; (2) impose any significant burden on competition; and (3) by
its terms does not become operative for 30 days after the date of this
filing, 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with 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 satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange has asked the Commission to waive the
30-day operative delay so that the proposal may become operative
immediately upon filing. Waiver of the 30-day operative delay would
enable the Exchange to avoid enlisting new subscribers during the
operative delay period only to retire the product shortly thereafter
once the proposed rule change becomes operative. In addition, the
Exchange notes it has no subscribers to the EDGE Routed Liquidity
Report. Based on the foregoing, the Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest.\11\ The Commission hereby grants the
Exchange's request and designates the proposal operative upon filing.
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\11\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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-2014-18 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-EDGA-2014-18. 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-2014-18, and should be
submitted on or before August 21, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17988 Filed 7-30-14; 8:45 am]
BILLING CODE 8011-01-P