13254 Federal Register / Vol. 76, No. 47 / Thursday, March 10, 2011 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3A Member is any registered broker or dealer, or 

any person associated with a registered broker or 

dealer, that has been admitted to membership in the 

Exchange. 

4The Commission notes that the Exchange’s 

proposed tier became effective with respect to 

trading activity taking place on or after the filing of 

the proposed rule change. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4). 

7See BATS fee schedule: Discounted Destination 

Specific Routing (‘‘One Under’’) to NYSE, NYSE 

ARCA and NASDAQ. See Securities Exchange Act 

Release No. 62858, 75 FR 55838 (September 14, 

2010) (SR–BATS–2010–023) (modifying the BATS 

fee schedule in order to amend the fees for its BATS 

+ NYSE Arca destination specific routing option to 

continue to offer a ‘‘one under’’ pricing model). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64037; File No. SR–EDGA– 

2011–06] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Amendments 

to the EDGA Exchange, Inc. Fee 

Schedule 

March 4, 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 March 1, 

2011, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘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 selfregulatory organization. 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 proposes to amend its 

fees and rebates applicable to Members 3

of the Exchange pursuant to EDGA Rule 

15.1(a) and (c). All of the changes 

described herein are applicable to EDGA 

Members. The text of the proposed rule 

change is available on the Exchange’s 

Internet Web site at http:// 

www.directedge.com. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

New Tier Rate for Adding Liquidity 

The fee for adding liquidity on EDGA 

is currently $0.00025 per share for 

securities at or above $1.00. The 

Exchange proposes to create a tier 

(indicated in footnote 11) to state that if 

members, on a daily basis, measured 

monthly, post 0.9% of the Total 

Consolidated Volume (‘‘TCV’’) in 

average daily volume to EDGA, they 

will be charged $0.00005 per share. TCV 

is defined (in proposed footnote 11) as 

volume reported by all exchanges and 

trade reporting facilities to the 

consolidated transaction reporting plans 

for Tapes A, B, and C securities for the 

month prior to the month in which the 

fees are calculated. So, when the 

calculation of TCV is done for March 

2011 billing for February 2011 trading 

activity, the appropriate TCV is based 

on February 2011 figures.4

Proposed Changes Associated With 

Routing to BATS BYX Exchange 

Currently, the BY flag is yielded when 

an order is routed to BATS BYX 

Exchange and removes liquidity using 

order types ROUC and ROBY, as 

defined in Exchange Rules 11.9(b)(3)(a) 

and (g). The Exchange proposes to add 

footnote 12 to the fee schedule to 

describe that stocks priced below $1.00 

will be charged $0.0010 per share. In 

addition, the Exchange proposes to 

increase the rebate from $0.0003 to 

$0.0004 when an order is routed to 

BATS BYX Exchange and removes 

liquidity. 

EDGA Exchange proposes to 

implement these amendments to the 

Exchange fee schedule on March 1, 

2011. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,5

in general, and furthers the objectives of 

Section 6(b)(4),6 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 the fee 

associated with the BY flag ($0.0010 per 

share) for stocks priced below $1 

represents an equitable allocation of 

reasonable dues, fees, and other charges 

since it reflects a pass through of the 

BATS fee for removing liquidity. EDGA 

believes that it is reasonable and 

equitable to pass on these fees to its 

members. 

The proposed increased rebate when 

an order is routed to BATS BYX 

Exchange and removes liquidity (from 

$0.0003 to $0.0004 per share) is 

designed to incentivize Members to use 

this routing strategy to increase volume 

on EDGA. Such increased volume 

increases potential revenue to the 

Exchange, and would allow the 

Exchange to spread its administrative 

and infrastructure costs over a greater 

number of shares, leading to lower per 

share costs. These lower per share costs 

would allow the Exchange to pass on 

the savings to Members in the form an 

increased rebate. The increased 

liquidity also benefits all investors by 

deepening EDGA’s liquidity pool, 

supporting the quality of price 

discovery, promoting market 

transparency and improving investor 

protection. 

This proposed rate represents a 

discount over the pass through rate of 

$0.0003 per share currently provided. 

The Exchange also believes that this fee 

structure is an equitable allocation of 

reasonable dues, fees, and other charges 

in that it applies uniformly to all 

Members and the increased rebate for 

removing liquidity from BATS is 

consistent with the processing of similar 

routing strategies by EDGA’s 

competitors.7

The Exchange believes that the new 

tier rate of $0.00005 per share for 

Members who on a daily basis, 

measured monthly, post 0.9% of the 

Total Consolidated Volume (‘‘TCV’’) in 

average daily volume to EDGA 

represents a fair and equitable allocation 

of reasonable dues, fees, and other 

charges as it is aimed at incentivizing 

liquidity for high volume providers, 

which results in increased volume on 

EDGA. Such increased volume increases 

potential revenue to the Exchange, and 

would allow the Exchange to spread its 

administrative and infrastructure costs 

over a greater number of shares, leading 

to lower per share costs. The decreased 

per share costs allows the Exchange to 

share its savings with its Members in 


jdjones on DSK8KYBLC1PROD with NOTICES
Federal Register / Vol. 76, No. 47 / Thursday, March 10, 2011 / Notices 13255 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 19b–4(f)(2). 

10The text of the proposed rule change is 

available on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGA, and at the 

Commission’s Public Reference Room. 11 17 CFR 200.30–3(a)(12). 

the form of such lower tier rate. The 

increased liquidity also benefits all 

investors by deepening EDGA’s 

liquidity pool, supporting the quality of 

price discovery, promoting market 

transparency and improving investor 

protection. Volume-based discounts 

such as the reduced execution fee 

proposed here have been widely 

adopted in the cash equities markets, 

and are equitable because they are open 

to all members on an equal basis and 

provide discounts that are reasonably 

related to the value to 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. 

In addition, the new tier rate is 

equitable in that higher fees on the 

Exchange are directly correlated with 

less stringent criteria. For example, the 

INET tiered fee, as indicated in footnote 

7/flag 2, of $0.0030 per share has less 

stringent criteria, and is a higher fee 

than the new proposed fee. For 

example, based on average TCV for 

January 2011 (8.0 billion), in order for 

a Member to qualify for the INET fee of 

$0.0030, the Member would have to 

route to Nasdaq less than 5,000,000 

shares of average daily volume. In order 

to qualify for the proposed lower fee of 

$0.00005 per share, which has more 

stringent criteria than the INET fee, the 

Member would have to post 72 million 

shares on EDGA (0.9% of TCV in 

average daily volume). 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. The Exchange believes that 

the proposed rates are equitable in that 

they apply uniformly to all Members. 

The Exchange believes the fees and 

credits remain competitive with those 

charged by other venues and therefore 

continue to be reasonable and equitably 

allocated to Members. 

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 

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) of 

the Act 8 and Rule 19b–4(f)(2) 9

thereunder. At any time within 60 days 

of the filing of such 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 rulecomments@sec.gov. Please include File 

Number SR–EDGA–2011–06 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–2011–06. 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,10 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 

a.m. and 3 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– 

2011–06 and should be submitted on or 

before March 31, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–5443 Filed 3–9–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7361] 

Office of Directives Management 

(A/GIS/DIR); Agency Information 

Collection Activities: Proposed 

Collection; Comment Request; Generic 

Clearance for the Collection of 

Qualitative Feedback on Agency 

Service Delivery 

AGENCY: Department of State. 

ACTION: 30-Day notice of submission of 

information collection approval from 

the Office of Management and Budget 

and request for comments. 

SUMMARY: As part of a Federal 

Government-wide effort to streamline 

the process to seek feedback from the 

public on service delivery, The 

Department of State has submitted a 

Generic Information Collection Request 

(Generic ICR): ‘‘Generic Clearance for 

the Collection of Qualitative Feedback 

on Agency Service Delivery ’’ to OMB 

for approval under the Paperwork 

Reduction Act (PRA) (44 U.S.C. 3501 et 

seq.). 


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