8378 Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices 

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

16 17 CFR 240.19b–4(f). 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer, or any person associated 

with a registered broker or dealer, that has been 

admitted to membership in the Exchange. A 

Member will have the status of a ‘‘member’’ of the 

Exchange as that term is defined in Section 3(a)(3) 

of the Act.’’ See Exchange Rule 1.5(n). 

its last day of trading will be Friday, 

January 30, 2015. 

Non-Substantive and Organizational 

Changes to Fee Code and Associated 

Fees 

The Exchange believes that nonsubstantive and organizational changes 

to the Fee Schedule would not affect 

intermarket nor intramarket competition 

because none of these changes are 

designed to amend any fee or alter the 

manner in which the Exchange assesses 

fees or calculates rebates. These changes 

are intended to provide greater clarity to 

Members with regard to how the 

Exchange access fees and calculates 

rebate. 

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) 

of the Act 15 and paragraph (f) of Rule 

19b–4 thereunder.16 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 rule-comments@

sec.gov. Please include File Number SR– 

EDGX–2015–07 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–EDGX–2015–07. 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–EDGX– 

2015–07, and should be submitted on or 

before March 10, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03076 Filed 2–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74237; File No. SR–EDGA– 

2015–05] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule To Increase the Fee for 

Orders Yielding Fee Code K 

February 10, 2015. 

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 

28, 2015, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘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 Exchange. The Exchange has 

designated the proposed rule change as 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 filed a proposal to 

amend its fees and rebates applicable to 

Members 5 of the Exchange pursuant to 

EDGA Rule 15.1(a) and (c) (‘‘Fee 

Schedule’’) to increase the fee for orders 

yielding fee code K, which routes to 

NASDAQ OMX PSX (‘‘PSX’’) using 

ROUC or ROUE routing strategy. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.batstrading.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant parts of such 

statements. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices 8379 

6See PSX, Equity Trader Alert 2014–95, Updates 

to PSX and BX Pricing for November 2014, dated 

October 27, 2014 [sic], available at http://

www.nasdaqtrader.com/

MicroNews.aspx?id=ETA2014–95. 

7The Exchange notes that to the extent BATS 

Trading does or does not achieve any volume tiered 

reduced fee on PSX, its rate for fee code K will not 

change. 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 10See supra note 6. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f). 

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 increase 

the fee for orders yielding fee code K, 

which routes to PSX using ROUC or 

ROUE routing strategy. In securities 

priced at or above $1.00, the Exchange 

currently assesses a fee of $0.0024 per 

share for Members’ orders that yield fee 

code K. The Exchange proposes to 

amend its Fee Schedule to increase this 

fee to $0.0026 per share. The proposed 

change represents a pass through of the 

rate that BATS Trading, Inc. (‘‘BATS 

Trading’’), the Exchange’s affiliated 

routing broker-dealer, is charged for 

routing orders to PSX when it does not 

qualify for a volume tiered reduced fee. 

The proposed change is in response to 

PSX’s February 2015 fee change where 

PSX increased the fee to remove 

liquidity via routable order types it 

charges its customers, from a fee of 

$0.0024 per share to a fee of $0.0025 per 

share for Tape A securities and $0.0026 

per share for Tapes B and C securities.6

When BATS Trading routes to PSX, it 

will now be charged a standard rate of 

$0.0025 per share for Tape A securities 

and $0.0026 per share for Tapes B and 

C securities.7 BATS Trading will pass 

through this rate to the Exchange and 

the Exchange, in turn, will pass through 

of a rate of $0.0026 per share to its 

Members. The proposed increase to the 

fee under fee code K would enable the 

Exchange to equitably allocate its costs 

among all Members utilizing fee code K. 

The Exchange proposes to implement 

these amendments to its Fee Schedule 

on February 2, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,8

in general, and furthers the objectives of 

Section 6(b)(4),9 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 its proposal to 

increase the pass through fee for 

Members’ orders that yield Flag K from 

$0.0024 per share to $0.0026 per share 

represents an equitable allocation of 

reasonable dues, fees, and other charges 

among Members and other persons 

using its facilities because the Exchange 

does not levy additional fees or offer 

additional rebates for orders that it 

routes to PSX through BATS Trading. 

Prior to PSX’s February 2015 fee change, 

PSX charged its members, which 

includes BATS Trading, a fee of $0.0024 

per share to remove liquidity using nonroutable order types, which BATS 

Trading passed through to the Exchange 

and the Exchange charged to its 

Members. In February 2015, PSX 

increased the fee to remove liquidity via 

routable order types it charges its 

customers, from a fee of $0.0024 per 

share to a fee of $0.0025 per share for 

Tape A securities and $0.0026 per share 

for Tapes B and C securities.10

Therefore, the Exchange believes that its 

proposal to pass through a fee of 

$0.0026 per share for orders that yield 

Flag K is equitable and reasonable 

because it accounts for the pricing 

changes on PSX. In addition, the 

proposal allows the Exchange to charge 

its Members a pass-through rate for 

orders that are routed to PSX. 

Furthermore, the Exchange notes that 

routing through BATS Trading is 

voluntary. Lastly, the Exchange also 

believes that the proposed amendment 

is non-discriminatory because it applies 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

These proposed rule changes do not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange does not believe that any 

of these changes represent a significant 

departure from previous pricing offered 

by the Exchange or pricing offered by 

the Exchange’s competitors. 

Additionally, Members may opt to 

disfavor EDGA’s pricing if they believe 

that alternatives offer them better value. 

Accordingly, the Exchange does not 

believe that the proposed changes will 

impair the ability of Members or 

competing venues to maintain their 

competitive standing in the financial 

markets. The Exchange believes that its 

proposal to pass through a fee of 

$0.0026 per share for Members’ orders 

that yield Flag K would increase 

intermarket competition because it 

offers customers an alternative means to 

route to PSX. The Exchange believes 

that its proposal would not burden 

intramarket competition because the 

proposed rate would apply uniformly to 

all Members. 

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) 

of the Act 11 and paragraph (f) of Rule 

19b–4 thereunder.12 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 rule-comments@

sec.gov. Please include File Number SR– 

EDGA–2015–05 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–2015–05. 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 


tkelley on DSK3SPTVN1PROD with NOTICES
8380 Federal Register / Vol. 80, No. 31 / Tuesday, February 17, 2015 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer, or any person associated 

with a registered broker or dealer, that has been 

admitted to membership in the Exchange. A 

Member will have the status of a ‘‘member’’ of the 

Exchange as that term is defined in Section 3(a)(3) 

of the Act.’’ See Exchange Rule 1.5(n). 

6See Securities Exchange Act Release No. 71449 

(January 30, 2014), 79 FR 6961 (February 5, 2014) 

(SR–EDGX–2013–43; SR–EDGA–2013–34). 

7As provided in the Fee Schedule, ‘‘ADV’’ is 

currently defined as ‘‘average daily volume 

calculated as the number of shares added to, 

removed from, or routed by, the Exchange, or any 

combination or subset thereof, per day. ADV is 

calculated on a monthly basis.’’ 

8As provided in the Fee Schedule, ‘‘TCV’’ is 

currently defined as ‘‘total consolidated volume 

calculated as the volume reported by all exchanges 

and trade reporting facilities to a consolidated 

transaction reporting plan for the month for which 

the fees apply.’’ 

9See Securities Exchange Act Release Nos. 74025 

(January 9, 2015), 80 FR 2154 (January 15, 2015) 

(SR–EDGA–2014–36); and 74021 [sic] (January 9, 

2015), 80 FR 2142 (January 15, 2015) (SR–EDGX– 

2014–37). 

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– 

2015–05, and should be submitted on or 

before March 10, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03077 Filed 2–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74238; File No. SR–EDGA– 

2015–07] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of the Exchange 

February 10, 2015. 

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 

30, 2015, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘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 Exchange. The Exchange has 

designated the proposed rule change as 

one establishing or changing a member 

due, fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. 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 filed a proposal to 

amend its fees and rebates applicable to 

Members 5 of the Exchange pursuant to 

EDGA Rule 15.1(a) and (c) (‘‘Fee 

Schedule’’) to: (i) Amend the definitions 

of ADV and TCV to remove a provision 

to exclude shares on each day from 

January 12, 2015 up to and including 

January 16, 2015; (ii) update the 

description of fee code D to include 

routing using the RDOT routing strategy; 

(iii) delete fee codes M and U, as well 

as remove the ROLF routing strategy 

from Footnote 7, all of which route to 

LavaFlow; and (iv) make a number of 

non-substantive and organizational 

amendments. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.batstrading.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant parts 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: (i) Amend 

the definitions of ADV and TCV to 

remove a provision to exclude shares on 

each day from January 12, 2015 up to 

and including January 16, 2015; (ii) 

update the description of fee code D to 

include routing using the RDOT routing 

strategy; (iii) delete fee codes M and U, 

as well as remove the ROLF routing 

strategy from Footnote 7, all of which 

route to LavaFlow; and (iv) make a 

number of non-substantive and 

organizational amendments. 

ADV and TCV Definitions 

Earlier this year, the Exchange and its 

affiliate, EDGX Exchange, Inc. (‘‘EDGX’’) 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, Direct Edge Holdings LLC, 

with BATS Global Markets, Inc., the 

parent of BATS (together with BATS, 

EDGA and EDGX, the ‘‘BGM Affiliated 

Exchanges’’).6 In the context of the 

Merger, the BGM Affiliated Exchanges 

worked to migrate EDGX and EDGA 

onto the BATS technology platform, and 

align certain system functionality, 

retaining only intended differences 

between the BGM Affiliated Exchanges. 

The migration of EDGX and EDGA onto 

the BATS technology platform occurred 

during the week of January 12, 2015. 

Currently, the Exchange determines 

the tiered pricing that it will provide to 

Members according to the Exchange’s 

tiered pricing structure, which is based 

on the calculation of ADV 7 and/or 

average daily TCV.8 The Exchange 

currently excludes from its calculation 

of ADV and TCV those shares traded on 

each day from January 12, 2015 up to 

and including January 16, 2015 in order 

to avoid penalizing Members that, 

because of the technology migration that 

occurred during the week of January 12, 

2015, did not participate on the 

Exchange during that week to the extent 

that they might have otherwise 

participated.9 As described above, such 

exclusion only applied to tier 

calculations in January, meaning that 

the language has no effect moving 

forward. As such, the Exchange 

proposes to remove the provisions from 

the definitions of ADV and TCV that 

exclude trading activity that occurred 

on each day from January 12, 2015 up 


tkelley on DSK3SPTVN1PROD with NOTICES