Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9807 

11 15 U.S.C. 78f(b)(1) and 78f(b)(6). 

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4. 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

6(b)(1) and 6(b)(6) of the Act 11 which 

require that the rules of an exchange 

enforce compliance with, and provide 

appropriate discipline for, violations of 

the Commission and Exchange rules. 

The Exchange also believes that the 

proposal is consistent with the public 

interest, the protection of investors, or 

otherwise in furtherance of the purposes 

of the Act because the proposal helps to 

strengthen the Exchange’s ability to 

carry out its oversight and enforcement 

responsibilities as a self-regulatory 

organization in cases where full 

disciplinary proceedings are unsuitable 

in view of the minor nature of a 

particular violation. 

Finally, the Exchange believes that 

the non-substantive changes discussed 

above will contribute to the protection 

of investors and the public interest by 

helping to avoid confusion with respect 

to Exchange rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

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, BYX, 

EDGA, and EDGX 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 12 and paragraph 

of Rule 19b–4(f)(6) thereunder.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– 

BATS–2015–12 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–BATS–2015–12. 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–BATS– 

2015–12 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. 2015–03664 Filed 2–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74292; File No. SR–Phlx– 

2015–14] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange’s Pricing Schedule Under 

Section VIII With Respect to Execution 

and Routing of Orders in Securities 

Priced at $1 or More per Share 

February 18, 2015. 

Pursuant to 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 

3, 2015, NASDAQ OMX PHLX LLC 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the 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 proposes to amend the 

Exchange’s Pricing Schedule under 

Section VIII, entitled ‘‘NASDAQ OMX 

PSX FEES,’’ with respect to execution 

and routing of orders in securities 

priced at $1 or more per share. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxphlx.cchwallstreet.com/, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 


tkelley on DSK3SPTVN1PROD with NOTICES
9808 Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(4) and (5). 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend certain fees for order 

execution and routing applicable to the 

use of the order execution and routing 

services of the NASDAQ OMX PSX 

System (‘‘PSX’’) by member 

organizations for all securities traded at 

$1 or more per share, as well as clarify 

that consolidated volume does not 

include the date of the annual 

reconstitution of the Russell 

Investments Indexes. 

Specifically, the charge to a member 

organization entering an order that 

executes in PSX will increase from: (i) 

$0.0024 to $0.0026 per share executed 

for shares executed in The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’)-listed 

securities; (ii) $0.0024 to $0.0025 per 

share executed for shares executed in 

New York Stock Exchange (‘‘NYSE’’)- 

listed securities; and (iii) $0.0024 to 

$0.0026 per share executed for shares in 

securities listed on exchanges other than 

Nasdaq or NYSE. The Exchange believes 

that these increases better reflect the 

costs in providing rebates to members. 

Additionally, the Exchange proposes 

to clarify that for purposes of calculating 

consolidated volume and the extent of 

a member’s trading activity, expressed 

as a percentage of, or ratio to, 

consolidated volume, the date of the 

annual reconstitution of the Russell 

Investments Indexes (‘‘Russell 

Reconstitution’’) will be excluded from 

both total consolidated volume and the 

member’s trading activity. This change 

is consistent with the practices of both 

Nasdaq and the NASDAQ OMX BX, Inc. 

(‘‘BX’’) exchanges. 

Also, the Exchange proposes to make 

a few clarifications in the Exchange’s 

Pricing Schedule. Specifically, in 

section (a)(2) of ‘‘Order Execution and 

Routing in All Securities’’ under ‘‘VIII. 

NASDAQ OMX PSX FEES’’, the 

Exchange proposes to replace the word 

‘‘None’’ with ‘‘$0.0000 per share 

executed at NASDAQ OMX BX’’. The 

Exchange believes this proposed change 

will serve to enhance market 

participant’s understanding that there is 

no charge for shares executed at BX and 

reduce any possible confusion in these 

instances. Additionally, in this same 

section for both XDRK and XCST orders, 

the first column will clarify that the 

amounts in the accompanying column 

are charges for executions on a venue 

other than the NASDAQ OMX PSX 

System, rather than the current practice 

of simply indicating that they are a 

‘‘charge or credit’’ to a member 

organization entering such orders. 

Finally, the description of the charge to 

members entering an XDRK order is 

changed to ‘‘$0.0007 per share 

executed’’; and the reference to ‘‘shares 

executed at a venue other than 

NASDAQ OMX BX’’ is deleted since an 

XDRK order cannot execute at BX. 

These clarifications are all intended to 

reduce confusion and make the fee 

schedule easier to understand. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Pricing Schedule 

is consistent with Section 6(b) of the 

Act 3 in general, and furthers the 

objectives of Sections 6(b)(4) and (b)(5) 

of the Act 4 in particular, in that it is an 

equitable allocation of reasonable fees 

and other charges among Exchange 

members and other persons using its 

facilities, and it does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange is proposing modest 

increases to the charges that a member 

organization entering an order that 

executes in PSX from: (i) $0.0024 to 

$0.0026 per share executed for shares 

executed in Nasdaq-listed securities; (ii) 

$0.0024 to $0.0025 per share executed 

for shares executed in NYSE-listed 

securities; and (iii) $0.0024 to $0.0026 

per share executed for shares in 

securities listed on exchanges other than 

Nasdaq or NYSE. The Exchange believes 

that these modest increases are 

reasonable because they reflect the 

Exchange’s need to adjust its credits and 

fees in response to the costs and benefits 

provided by the Exchange. Additionally, 

these modest increases are reasonable 

since by staggering increases, the 

Exchange is able to offer reduced rates 

in some tapes while balancing the need 

to fund rebates and operational costs. 

The Exchange believes that the 

proposed changes are consistent with an 

equitable allocation of fees and are not 

unfairly discriminatory because they 

apply to all member organizations that 

enter orders that execute in PSX. The 

Exchange also believes that they are 

consistent with equitable allocation of 

fees and are not unfairly discriminatory 

because they apply to all member 

organizations that enter orders that 

execute in PSX. 

The Exchange is also proposing to 

clarify that for purposes of calculating 

consolidated volume and the extent of 

a member’s trading activity, expressed 

as a percentage of, or ratio to, 

consolidated volume, the date of the 

Russell Reconstitution will be excluded 

from both total consolidated volume 

and the member’s trading activity. The 

Exchange believes that this clarification 

is reasonable because it is consistent 

with the practices at both Nasdaq and 

the BX exchanges and will reduce 

confusion concerning the Russell 

Reconstitution. 

The Exchange believes that the 

proposed changes are consistent with an 

equitable allocation of fees and are not 

unfairly discriminatory because trading 

volumes on the date of the Russell 

Reconstitution are generally far in 

excess of volumes on other days during 

the month. As a result, the trading 

activity of members that are regular 

daily participants in PSX, expressed as 

a percentage of consolidated volume, is 

likely to be lower than their percentage 

of consolidated volume on other days 

during the month. Therefore, including 

the date of the Russell Reconstitution in 

calculations of consolidated volume 

would likely make it more difficult for 

members to achieve particular volume 

levels during the month. Accordingly, 

excluding the date of the Russell 

Reconstitution from these calculations 

will diminish the likelihood of a de 

facto price increase from occurring 

because a member is not able to reach 

a volume percentage on that date that it 

typically reaches on other trading days 

during the month. Moreover, excluding 

the date is very unlikely to result in a 

price increase for any members, since a 

member that was not, on other days 

during the month, trading in PSX at 

volume levels that would allow it to 

qualify for rebate tiers, would be 

unlikely to achieve percentage volume 

levels on the date of the Russell 

Reconstitution that would increase its 

overall monthly percentage to the 

required levels, even if it was very 

active on that date. 

Finally, the Exchange believes that 

the remaining changes to the Pricing 

Schedule are reasonable because they 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9809 

5 15 U.S.C. 78f(b)(8). 

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

7 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). 

are intended to clarify and reduce 

confusion through the clarification as to 

what is a charge or credit, the 

clarification that there is no charge for 

certain orders executed at BX, as well as 

to clarify through the removal of 

unnecessary language that may add 

confusion to the Pricing Schedule. The 

Exchange also believes that these 

changes are consistent with an equitable 

allocation of fees and are not unfairly 

discriminatory because they do not 

impact fees and serve only to clarify and 

reduce possible confusion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended.5

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, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. Because 

competitors are free to modify their own 

fees in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. In this instance, the modest 

increases to the charges assessed are 

intended to allow the Exchange to help 

offset its costs in providing rebates to 

members. Because there are numerous 

competitive alternatives to PSX, it is 

likely the Exchange would lose market 

share and money as a result of changes 

if they do not reflect costs. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act,6 the Exchange has designated 

this proposal as establishing or changing 

a due, fee, or other charge imposed by 

the self-regulatory organization on any 

person, whether or not the person is a 

member of the self-regulatory 

organization, which renders the 

proposed rule change effective upon 

filing. 

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– 

Phlx–2015–14 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 

Number SR–Phlx–2015–14. 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 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 offices 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– 

2015–14, and should be submitted on or 

before March 17, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03663 Filed 2–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74283; File No. SR–EDGA– 

2015–09] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Establish Fees for 

EDGA Top, EDGA Last Sale, and the 

BATS One Feed 

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 

3, 2015, EDGA Exchange, Inc. (‘‘EDGA’’ 

or the ‘‘Exchange’’) 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 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 the fee schedule to establish fees 

for EDGA Top, EDGA Last Sale, and the 


tkelley on DSK3SPTVN1PROD with NOTICES