Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 15405 

34 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As defined in Rule 1.5(cc)[sic]. 4As defined in Rule 11.5(c)(7). 

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 rulecomments@sec.gov. Please include File 

Number SR–Phlx–2012–27 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–Phlx–2012–27. 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 

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–Phlx– 

2012–27 and should be submitted on or 

before April 5, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.34

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6229 Filed 3–14–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66557; File No. SR–EDGA– 

2012–06] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

11.9 

March 9, 2012. 

Pursuant to Section 19(b)(2) [sic] of 

the Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

24, 2012, 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 introduce 

an additional routing option to Rule 

11.9 to provide Users 3 with increased 

access to multiple sources of liquidity 

and greater flexibility in routing orders. 

The text of the proposed rule change is 

attached as Exhibit 5 and is available on 

the Exchange’s 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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange’s current list of routing 

options are codified in Rule 11.9(b)(3). 

In this filing, the Exchange proposes to 

amend Rule 11.9(b)(3) to add an 

additional routing strategy. In 

connection with the introduction of the 

subject routing strategy, the Exchange 

also proposes to amend Rule 11.5(c)(7) 

so that the definition of a Mid-Point Peg 

Order is consistent with the 

functionality of this new routing 

strategy. 

In particular, the Exchange proposes 

to add the RMPT routing strategy in 

Rule 11.9(b)(3)(t) to allow an order to 

access additional sources of liquidity. 

RMPT is a routing option under which 

a Mid-Point Peg Order 4 checks the 

System for available shares and any 

shares that remain unexecuted are then 

sent sequentially to destinations on the 

System routing table that support 

midpoint eligible orders. This allows 

orders sent through the RMPT strategy 

to interact with such midpoint eligible 

orders. If any shares remain unexecuted 

after routing, they are posted on the 

EDGA book as a Mid-Point Peg Order, 

unless otherwise instructed by the User. 

Consequently, the Exchange also 

seeks to amend the definition of a MidPoint Peg Order to allow for order 

routing pursuant to the RMPT routing 

strategy. Rule 11.5(c)(7) currently states 

that ‘‘Mid-Point Peg Orders are not 

eligible for routing pursuant to Rule 

11.9(b)(2) and are not displayed on the 

Exchange’’. The Exchange proposes to 

carve out an exception to allow Users to 

elect to route the Mid-Point Peg Order 

pursuant to the RMPT routing strategy, 

as defined in Rule 11.9(b)(3)(t), to 

account for this new routing option. 

This revised definition allows for 

greater clarity and consistency between 

the behavior of the Exchange’s order 

types and routing options, resulting in 

increased transparency for the User. 

The Exchange believes that the 

proposed introduction of the routing 

option described above will provide 

Users with increased access to multiple 

sources of liquidity and greater 

flexibility in routing orders without 

having to develop their own 

complicated routing strategies. 


srobinson on DSK4SPTVN1PROD with NOTICES
15406 Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 

5 15 U.S.C. 78f(b)(5). 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). 

8 17 CFR 240.19b–4(f)(6)(iii). 

9See BATS Rule 11.9(c)(9) (‘‘Mid-Point Peg 

Orders’’); see also, NASDAQ Rule 4751(f)(4) 

(‘‘Midpoint Peg’’ orders); NYSE Arca Equities Rule 

7.31(h)(5) (‘‘Mid-Point Passive Liquidity Orders’’); 

EDGX Rule 11.5(c)(7) (‘‘Mid-Point Match Orders’’). 

The Exchange will notify its Members 

in an information circular of the exact 

implementation date of this rule change, 

which will be no later than May 31, 

2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(5) of the Act,5 which 

requires the rules of an exchange to 

promote just and equitable principles of 

trade, 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. The 

Exchange believes that the proposed 

introduction of the routing option 

described above will provide Users with 

increased access to multiple sources of 

liquidity and greater flexibility in 

routing orders without having to 

develop their own complicated routing 

strategies. As such, the User benefits 

from more options, potentially 

improved execution prices at midpoint 

prices, and a more efficient marketplace. 

In addition, the Exchange believes that 

the proposed rule change is designed to 

promote just and equitable principles of 

trade and protect investors and the 

public interest in that it promotes 

transparency to investors through the 

codification of the addition of the new 

routing strategy and its amendment to 

an existing order type, the Mid-Point 

Peg Order, in the Exchange’s rulebook. 

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)(A) 6 of the Act and Rule 19b– 

4(f)(6) 7 thereunder. The proposed rule 

change effects a change that (A) does not 

significantly affect the protection of 

investors or the public interest; (B) does 

not impose any significant burden on 

competition; and (C) by its terms, does 

not become operative for 30 days after 

the date of the filing, or such shorter 

time as the Commission may designate 

if consistent with the protection of 

investors and the public interest; 

provided that the self-regulatory 

organization has given the Commission 

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 provided 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.8

The rule change is designed to 

provide market participants with a 

wider variety of options when availing 

themselves of EDGA’s order routing and 

execution services. By offering 

additional routing options, EDGA hopes 

to benefit market participants and their 

customers by allowing them greater 

flexibility in their efforts to fill orders 

and minimize trading costs. EDGA 

provides these services in a highly 

competitive market in which 

participants may avail themselves of a 

wide variety of routing options offered 

by self-regulatory organizations, 

alternative trading systems, other 

broker-dealers, market participants’ own 

proprietary routing systems, and service 

bureaus. In such an environment, the 

changes proposed in this rule filing do 

not burden competition, because the 

Exchange can only succeed in attracting 

order flow if it offers investors higher 

quality and better value than services 

offered by others. Encouraging 

competitors to provide higher quality 

and better value is the essence of a wellfunctioning marketplace. 

Furthermore, the Exchange believes 

that this rule filing is non-controversial 

because it codifies the use of a voluntary 

routing strategy that is offered to all 

Members equally. In addition, the 

potential midpoint executions are 

widely available through analogous 

order types on other exchanges 9 and 

result in more efficient, improved 

executions for potential investors. 

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 rulecomments@sec.gov. Please include File 

Number SR–EDGA–2012–06 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–2012–06. 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 

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 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Notices 15407 

10 17 CFR 200.30–3(a)(12). 

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. 

4See Securities and Exchange Act Release No. 

65225 (August 30, 2011), 76 FR 55148 (September 

6, 2011) (SR–BATS–2011–018). 

5See EDGA Exchange Rule 11.9(b)(3)(n). 6See SR–EDGA–2012–06 (February 24, 2012). 

available publicly. All submissions 

should refer to File Number SR–EDGA– 

2012–06 and should be submitted on or 

before April 5, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6235 Filed 3–14–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66559; File No. SR–EDGA– 

2012–07] 

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 9, 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 February 

29, 2012 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, 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 make a 

technical amendment to the description 

of Footnote 9 and Flag CL to reflect the 

Commission’s approval of the BATS 

BZX Exchange (‘‘BATS BZX’’) as a 

primary listing exchange.4 Therefore, 

Footnote 9 will state that Flag O will be 

yielded and a fee of $0.0005 per share 

will be assessed if an order is routed to 

NYSE Arca & BATS BZX’s closing 

process. This fee in footnote 9 ($0.0005 

per share) gives a flat rate for the NYSE 

Arca & BATS BZX’s closing processes, 

which is lower than other primary 

listing markets. Flag CL will apply to 

orders routed to a primary listing 

market’s closing process except NYSE 

Arca and BATS BZX. In addition, the 

Exchange proposes to revise the 

descriptions on Flags CL, 8, and 9 to 

broaden their applicability to several 

routing strategies rather than just 

ROOC.5 Therefore, the Exchange 

proposes that Flag CL state ‘‘Routed to 

listing market closing process except 

NYSE Arca & BATS BZX.’’ The 

Exchange proposes conforming 

amendments to Flags 8 and 9 to delete 

the ROOC routing strategy from the 

descriptions of these flags. 

The Exchange proposes to delete Flag 

H, which represents all non-displayed 

orders that add or remove liquidity, and 

bifurcate it by replacing it with Flags 

HA and HR. Flag HA will identify all 

non-displayed orders that add liquidity 

to EDGA and the Exchange will assess 

a fee of $0.0010 per share. Flag HR will 

identify all non-displayed orders that 

remove liquidity from EDGA and the 

Exchange will assess a fee of $0.0010 

per share. Additionally, footnote 2 is 

proposed to be revised to read ‘‘rate 

contingent upon Member adding or 

removing (emphasis added) greater than 

1,000,000 shares hidden on a daily basis 

* * * ’’ as both Flags HA and HR count 

toward this tier since they are both 

forms of hidden liquidity. This change 

allows Members who utilize both forms 

of hidden liquidity (add and remove) to 

satisfy this tier. Footnote 4 is proposed 

to be clarified that only non-displayed 

orders that add liquidity count toward 

the following tier listed there: ‘‘If a 

Member, on a daily basis, measured 

monthly, posts more than 1% of the 

Total Consolidated Volume (‘‘TCV’’) in 

average daily volume on EDGA, 

including all non-displayed orders (H 

Flag), then the Member will receive a 

rebate of $0.0005 per share. TCV is 

defined 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. If a Member, on 

a daily basis, measured monthly, posts 

more than .25% of the TCV on EDGA, 

including all non-displayed orders (H 

Flag), and removes more than .25% of 

TCV in average daily volume, then the 

Member will receive a rebate of $0.0005 

per share.’’ To correspond with these 

changes, footnotes 2 and 4 are proposed 

to be appended to Flag HA and footnote 

2 is proposed to be appended to Flag 

HR. Finally, the references to the 

yielded flags (B, H, V, Y, 3–4) in text of 

footnotes 2 and 4 [sic] are duplicative of 

the footnotes next to the applicable 

Flags in the fee schedule and are 

therefore proposed to be deleted to 

simplify the schedule. 

The Exchange proposes to amend Flag 

9 and add new Flag 10 to its fee 

schedule. At this time, NYSE Arca offers 

its Members a rebate of $0.0021 for 

orders that add liquidity on Tapes A or 

C and a rebate of $0.0022 for orders that 

add liquidity on Tape B. The Exchange 

proposes to amend Flag 9 to account for 

the pass-through of the NYSE Arca 

rebate for adding liquidity through 

Tapes A or C and to create Flag 10 to 

account for the pass-through of the 

NYSE Arca rebate for adding liquidity 

on Tape B. Finally, the Exchange 

proposes to make technical amendments 

to Flags N, 3, and 9 to replace the ‘‘and’’ 

connector with ‘‘or’’ (i.e., ‘‘Tapes A or 

C’’ instead of ‘‘Tapes A and C’’) to make 

these references accurate. 

The Exchange proposes to add Flag 

PA for orders that utilize the midpoint 

routing strategy RMPT6 and add 


srobinson on DSK4SPTVN1PROD with NOTICES