Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9839 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 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). 

4 17 CFR 240.19b–4(f)(6)(iii). 

quality and increased transaction 

volume that results from the anticipated 

increase in order flow directed to the 

Exchange will benefit all market 

participants and improve competition 

on the Exchange in such select symbols. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. The Exchange believes 

that the proposed rule change reflects 

this competitive environment because it 

reduces the Exchange’s fees in a manner 

that encourages market participants to 

direct their customer order flow, to 

provide liquidity, and to attract 

additional transaction volume to the 

Exchange. Given the robust competition 

for volume among options markets, 

many of which offer the same products, 

implementing a volume based customer 

rebate program to attract order flow like 

the one being proposed in this filing is 

consistent with the above-mentioned 

goals of the Act. This is especially true 

for the smaller options markets, such as 

MIAX, which is competing for volume 

with much larger exchanges that 

dominate the options trading industry. 

MIAX has a nominal percentage of the 

average daily trading volume in options, 

so it is unlikely that the customer rebate 

program could cause any competitive 

harm to the options market or to market 

participants. Rather, the customer rebate 

program is a modest attempt by a small 

options market to attract order volume 

away from larger competitors by 

adopting an innovative pricing strategy. 

The Exchange notes that if the rebate 

program resulted in a modest percentage 

increase in the average daily trading 

volume in options executing on MIAX, 

while such percentage would represent 

a large volume increase for MIAX, it 

would represent a minimal reduction in 

volume of its larger competitors in the 

industry. The Exchange believes that the 

proposal will help further competition, 

because market participants will have 

yet another additional option in 

determining where to execute orders 

and post liquidity if they factor the 

benefits of a customer rebate program 

into the determination. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

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)(ii) of the Act.13 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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or disapproved. 

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– 

MIAX–2015–08 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–MIAX–2015–08. 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 such 

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–MIAX– 

2015–08 and should be submitted on or 

before March 17, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03659 Filed 2–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74296; File No. SR–EDGX– 

2015–10] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rule 8.15 

Entitled ‘‘Imposition of Fines for Minor 

Violation(s) of Rules’’ 

February 18, 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 February 

5, 2015, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 Rule 8.15 entitled ‘‘Imposition of 


tkelley on DSK3SPTVN1PROD with NOTICES
9840 Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 

5See Securities Exchange Act Release No. 71449 

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

(SR–EDGX–2013–43; SR–EDGA–2013–34). 

6The Exchange understands that BATS, BYX, and 

EDGA intend to file proposed rule changes with the 

Commission to adopt substantively identical rules. 

7The Exchange notes that BATS and BYX do not 

currently and are not going to propose to include 

a provision to cover the CE Rule currently included 

in the Exchange’s MRVP. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10See supra notes 6 and 7. 

Fines for Minor Violation(s) of Rules.’’ 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 8.15 in order to make it 

substantively identical to the 

corresponding rules on BATS Exchange, 

Inc. (‘‘BATS’’) and BATS Y-Exchange, 

Inc. (‘‘BYX’’), as further described 

below. Last year, the Exchange and its 

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

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 and BYX (together with 

BATS, BYX, EDGA and EDGX, the 

‘‘BGM Affiliated Exchanges’’).5 In the 

context of the Merger, the BGM 

Affiliated Exchanges are working to 

align certain rules, retaining only 

intended differences between the BGM 

Affiliated Exchanges. Thus, the proposal 

set forth below is intended to amend 

Rule 8.15 in order to make it 

substantively identical to corresponding 

rules on BATS, BYX, and EDGA.6

Currently, paragraph (d) of 

Interpretation and Policy to Rule 8.15 

includes Rule 2.5 Interpretation .04: 

Firm Element of Continuing Education 

Requirement (the ‘‘CE Rule’’) under the 

list of Exchange rule violations and 

recommended fine schedule pursuant to 

Rule 8.15 related to the imposition of 

fines for minor violations of rules (the 

‘‘MRVP’’). The Exchange, however, has 

no specific reference to the firm element 

of the continuing education 

requirements under the CE Rule. 

Further, BATS and BYX are proposing 

to adopt rules that are substantively 

identical to the Exchange’s MRVP, 

except that BATS and BYX are not 

proposing to add a provision covering 

the CE Rule.7 As such, the Exchange is 

proposing to eliminate paragraph (d) of 

Interpretation and Policy .01 to Rule 

8.15. 

The Exchange is also proposing to 

amend Rule 8.15(a). Currently, Rule 

8.15(a) provides that, for the purposes of 

imposing fines pursuant to 

Interpretation .02 of Rule 4.2, the 

Exchange may aggregate individual 

violations of particular rules and treat 

such violations as a single offense, 

provided that such aggregation is based 

upon a comprehensive automated 

surveillance program. The Exchange has 

never aggregated violations under this 

provision and does not anticipate doing 

so in the future due to the content of 

Interpretation .02 of Rule 4.2, which 

could not, because of its nature, be 

based on a comprehensive automated 

surveillance program. Interpretation and 

Policy .02 of Rule 4.2 is related to the 

requirement to furnish Exchange-related 

order, market and transaction data. As 

the Exchange does not currently require 

Members to provide such information 

and because compliance with a 

requirement to provide data would not 

likely be reviewed based on an 

automated surveillance (though 

surveillance would likely be performed 

on such data), the Exchange believes the 

reference to this provision in Rule 8.15 

is no longer necessary. Based on the 

foregoing, and in order to conform rules 

across each of the BGM Affiliated 

Exchanges, the Exchange is proposing to 

remove this provision from Rule 8.15(a). 

Finally, the Exchange is proposing to 

make several non-substantive changes to 

Rule 8.15. Specifically, in coordination 

with the elimination of paragraph (d) of 

Interpretation and Policy .01 to Rule 

8.15, the Exchange is proposing to make 

several corresponding and nonsubstantive changes to the numbering of 

the rule. The Exchange is also proposing 

to add a period to each of the sentences 

in proposed paragraphs (f) and (g) of 

Interpretation and Policy .01 to Rule 

8.15. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 8 and furthers the 

objectives of Section 6(b)(5) of the Act,9

in that it is designed promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. Specifically, the Exchange 

believes that the proposed changes to 

Rule 8.15(a) and the deletion of 

paragraph (d) of Interpretation and 

Policy .01 to Rule 8.15 contribute to the 

protection of investors and the public 

interest by removing unnecessary 

language from Exchange Rules and 

correcting certain cross-references 

therein. The Exchange believes that 

these changes will help to make 

Exchange Rules clearer and avoid 

confusion for all participants on the 

Exchange. 

Further, as mentioned above, the 

proposed rule changes, combined with 

the planned filings for BATS, BYX, and 

EDGA,10 would allow the BGM 

Affiliated Exchanges to provide a 

consistent set of rules as it relates to the 

imposition of fines for minor violations 

of rules across each of the exchanges. 

Consistent rules, in turn, will simplify 

the application of the Exchange’s 

regulatory program for Members of the 

Exchange that are also participants on 

BATS, BYX, and/or EDGA. The 

proposed rule change would provide 

greater harmonization between rules of 

similar purpose on the BGM Affiliated 

Exchanges, resulting in greater 

uniformity and less burdensome and 

more efficient regulatory compliance. 

As such, the proposed rule change 

would foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities and 

would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

Finally, the Exchange believes that 

the non-substantive changes described 

above will contribute to the protection 

of investors and the public interest by 

helping to avoid confusion with respect 

to Exchange rules by creating a 

consistent numbering system in its 

Rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9841 

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

12 17 CFR 240.19b–4. 

13For 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). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the act. To the 

contrary, allowing the Exchange to 

implement substantively identical rules 

related to the imposition of fines for 

minor violations of rules across each of 

the BGM Affiliated Exchanges does not 

present any competitive issues, but 

rather is designed to provide greater 

harmonization among Exchange, BATS, 

BYX, and EDGA rules of similar 

purpose, resulting in less burdensome 

and more efficient regulatory 

compliance for common members of the 

BGM Affiliated Exchanges and an 

enhanced ability of the BGM Affiliated 

Exchanges to fairly and efficiently 

regulate members, which will further 

enhance competition. 

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: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and paragraph 

of Rule 19b–4(f)(6) thereunder.12

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange stated that waiver 

of this requirement is consistent with 

the protection of investors and the 

public interest because it will allow the 

Exchange to have consistent rules 

related to minor violations across each 

of the BGM Affiliated Exchanges, which 

it believes will both more consistently 

and effectively regulate members of the 

BGM Affiliated Exchanges as well as 

reduce the regulatory burden on 

Members of the Exchange that are also 

members of EDGA, BYX and/or BZX. 

The Commission believes that the 

proposed rule change presents no novel 

issues and that waiver of the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Therefore, the Commission 

designates the proposed rule change to 

be operative upon filing.13

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 proposal 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 No. SR– 

EDGX–2015–10 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File No. 

SR–EDGX–2015–10. 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 such 

filing will also 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 No. SR–EDGX– 

2015–10 and should be submitted on or 

before March 17, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03667 Filed 2–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74291; File No. SR–MIAX– 

2015–09] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule 

February 18, 2015. 

Pursuant to the provisions of Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on February 5, 2015, Miami 

International Securities Exchange LLC 

(‘‘MIAX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I, II, and III below, 

which Items have been prepared by the 

Exchange. 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 is filing a proposal to 

amend the MIAX Options Fee Schedule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/

wotitle/rule_filing, at MIAX’s principal 

office, 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 


tkelley on DSK3SPTVN1PROD with NOTICES