11254 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The addition of the language concerning price 

improvement to BX Rule 7018 merely reflects how 

the system for credits and fees already currently 

operates, which is why this new language does not 

change the overall current rates for such credits. 

4See BX Rule 4758(a)(v). 

5See BX Rule 4758(a)(vii). 

6See NASDAQ OMX PHLX LLC Pricing 

Schedule, Section VIII(a)(1). 

2015–01 and should be submitted on or 

before March 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04181 Filed 2–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74363; File No. SR–BX– 

2015–013] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Fee Schedule Under Exchange Rule 

7018(a) and (e) With Respect to 

Transactions in Securities Priced at $1 

per Share or More 

February 24, 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 

11, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 

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 

fee schedule under Exchange Rule 7018 

with respect to transactions in securities 

priced at $1 or more per share. 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site at http://

nasdaqomxbx.cchwallstreet.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 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 Exchange is proposing to amend 

BX Rule 7018(a) and (e) to modify the 

fees and rebates assessed under the rule 

applicable to transactions in securities 

priced at $1 or more. Specifically, the 

Exchange proposes to clarify and make 

uniform throughout BX Rule 7018(a) the 

term ‘‘Midpoint pegging’’, as well as in 

BX Rule 7018(e) regarding credits for 

retail orders. The Exchange also 

proposes to include within BX Rule 

7018(a) a specific line item for a credit 

for an ‘‘Order with Midpoint pegging 

that removes liquidity’’ of $0.0005 per 

share executed. The Exchange believes 

that these proposed changes increase 

transparency as to how a member’s 

credit is determined, clarify the fee 

schedule, and do not change the overall 

current rate for such credits except for 

the one minor change noted above.3

Changing the language for nondisplayed orders entered by a member 

that provides an average daily volume of 

3.5 million or more shares (but less than 

5 million shares) of non-displayed 

liquidity to include ‘‘other than orders 

with Midpoint pegging’’ instead of 

‘‘including those pegged to the 

midpoint’’ results in no actual change. 

Currently, a member would never 

receive the $0.0024 per share executed 

charge for an order with Midpoint 

pegging because instead the member 

would have qualified for the $0.0005 

per share executed charge for an order 

with Midpoint pegging entered by a 

member that provides an average daily 

volume of 2 million or more shares of 

non-displayed liquidity during the 

month. 

Additionally, the Exchange proposes 

to define ‘‘price improvement’’ to mean 

instances when the accepted price of an 

order differs from the executed price of 

an order and incorporate it where 

applicable in BX Rule 7018(a) and (e). 

The accepted price is the price the 

matching engine assigns an order based 

on the instructions submitted by the 

member. It may differ from a customer’s 

limit price because of the order type 

(e.g., pegging and post only orders) or 

for regulatory reasons (e.g., Reg SHO, 

Reg NMS compliance or other 

regulatory restrictions). The accepted 

price of an order will not be more 

aggressive than the customer’s limit 

price, and is often the same as the 

customer’s submitted limit price. An 

order can execute up to its accepted 

price and this is the least advantageous 

price at which an order can execute. 

Any execution price that is different 

than the accepted price must be more 

advantageous than the accepted price. 

Thus, executions where the accepted 

price does not equal the execution price 

are situations when the order is 

receiving price improvement versus its 

accepted price. 

The Exchange also proposes to change 

the fee assessed for BTFY and BCRT 

orders in securities listed on The 

NASDAQ Stock Market LLC 

(‘‘NASDAQ’’) (‘‘Tape C’’), the New York 

Stock Exchange (‘‘NYSE’’) (‘‘Tape A’’) 

and on exchanges other than NASDAQ 

and the NYSE (‘‘Tape B’’) (collectively, 

the ‘‘Tapes’’). 

BTFY 4 is a routing option under 

which orders check the order execution 

and trade reporting system owned and 

operated by BX (the ‘‘System’’) for 

available shares only if so instructed by 

the entering firm and are thereafter 

routed to destinations on the System 

routing table. If shares remain 

unexecuted after routing, they are 

posted to the System book. Once on the 

System book, should the order 

subsequently be locked or crossed by 

another market center, the System will 

not route the order to the locking or 

crossing market center. 

BCRT 5 is a routing option under 

which orders check the System and then 

route to PSX and NASDAQ. If shares 

remain unexecuted, they are posted to 

the System book or cancelled. Once on 

the System book, should the order 

subsequently be locked or crossed by 

another market center, the System will 

not route the order to the locking or 

crossing market center. 

For BTFY and BCRT orders, the 

Exchange currently passes through all 

fees and rebates for orders that execute 

on PSX or NASDAQ. BTFY and BCRT 

orders executed on BX result in a pass 

through charge of $0.0025 or $0.0026 

per share executed on PSX 6 and 

$0.0030 per share executed on 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 11255 

7See NASDAQ Rule 7018(a). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4) and (5). 

10For a description of BSTG and BSCN routing 

strategies, see BX Rules 4758(a)(1)(A)(iii) and (iv). 11 15 U.S.C. 78f(b)(8). 

NASDAQ.7 The Exchange is proposing 

to now assess a set charge of $0.0030 per 

share executed for BTFY orders that 

execute on NYSE, NASDAQ or PSX and 

$0.0007 per share executed for BTFY 

orders executed on any other venue. 

The Exchange is also proposing to now 

assess a set charge of $0.0030 per share 

executed for BCRT orders that executes 

on PSX or NASDAQ in lieu of passing 

through credits and rebates. 

BX is proposing to eliminate pass 

through fees and assess a set fee of 

$0.0030 per share executed for both 

BTFY and BCRT. The Exchange 

currently passes through any routing 

fees charged and rebates to NASDAQ or 

PSX for these orders, which currently is 

$0.0030 per share executed on NASDAQ 

and varies by tape on PSX but also may 

vary based on changes to those 

exchange’s respective fee schedules. 

2. Statutory Basis 

BX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act,8 in general, and 

with Sections 6(b)(4) and 6(b)(5) of the 

Act,9 in particular, in that it provides for 

the equitable allocation of reasonable 

dues, fees and other charges among 

members and issuers and other persons 

using any facility or system which the 

Exchange operates or controls, and is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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; and are not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the 

proposed changes (i) to make the term 

‘‘Midpoint pegging’’ uniform throughout 

BX Rule 7018(a) and (e), to define ‘‘price 

improvement’ to mean instances when 

the accepted price of an order differs 

from the executed price of an order and 

incorporate it where applicable in BX 

Rule 7018(a) and (e), (ii) to include 

within BX Rule 7018(a) a specific line 

item for a credit for an ‘‘Order with 

Midpoint pegging that removes 

liquidity’’ of $0.0005 per share 

executed, and (iii) to change the 

language for non-displayed orders 

entered by a member that provides an 

average daily volume of 3.5 million or 

more shares (but less than 5 million 

shares) of non-displayed liquidity to 

include ‘‘other than orders with 

Midpoint pegging’’ instead of 

‘‘including those pegged to the 

midpoint’’ are reasonable because they 

increase transparency as to how a 

member’s charges and credits are 

determined. The Exchange also believes 

that these changes are consistent with 

an equitable allocation of fees and are 

not unfairly discriminatory because the 

overall current rate for such credits will 

not change except for the one minor 

change noted above and they apply 

uniformly to all market participants to 

whom the fee schedule is applicable. 

Additionally, the Exchange believes 

that the proposed changes to the charges 

assessed for BTFY and BCRT orders in 

securities of any Tape that execute on 

PSX are reasonable because they more 

closely align the fee received with the 

costs associated with providing routing 

services. The Exchange incurs costs in 

operating and supporting the routing 

function, which are in addition to the 

fees of other exchanges that it incurs 

when a routed order executes on 

another venue. To cover such costs, the 

Exchange assesses the proposed fee for 

other routed orders, such as BSTG and 

BSCN orders, which are assessed a 

charge of $0.0030 per share executed.10

Thus, the current pass through fee 

results in a discount to the fee assessed 

for use of the routing function for other 

routed orders. 

The Exchange also believes that the 

proposed changes are reasonable 

because they remove complexity from 

the fee schedule and assess a fee that is 

not dependent on knowing what the 

current liquidity removal rates are on 

PSX and NASDAQ. The Exchange 

believes that the proposed changes to 

BTFY and BCRT order fees are equitably 

allocated because all member firms that 

receive an execution on PSX and 

NASDAQ will be assessed a fee that is 

more closely aligned with the costs 

incurred by the Exchange, as noted 

above. Also, the Exchange believes that 

the proposed changes to BTFY and 

BCRT order fees as to PSX do not 

discriminate unfairly because they 

eliminate a distinction in the fees 

whereby discounted fees are charged for 

use of the Exchange’s routing 

functionality. Moreover, the proposed 

changes do not discriminate unfairly 

because they eliminate a distinction in 

the routing fees whereby some fees are 

fixed and others are based on fee 

assessed by other markets. As noted 

above, most routing fees are based on a 

set fee, and are not tied to the fees of 

other markets. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule changes will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as 

amended.11 BX notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

over 40 different competing exchanges 

and alternative trading systems 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, BX 

must continually adjust its fees to 

remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

and because market participants may 

readily adjust their order routing 

practices, BX believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

extremely limited. 

In this instance, the changes to 

routing fees and credits do not impose 

a burden on competition because the 

Exchange’s routing services are optional 

and are the subject of competition from 

other exchanges and broker-dealers that 

offer routing services, as well as the 

ability of members to develop their own 

routing capabilities. The standardization 

of fees for execution of BTFY and BCRT 

orders that route from BX to PSX or 

NASDAQ are reflective of a need to 

better align the fees received with the 

costs incurred in operating and 

supporting the routing function. It 

removes an unnecessarily complex 

process to determine the fee assessed 

with a set fee, which is consistent with 

other BX routing fees. Under the current 

fees, a member firm must know what 

the fee schedule is on PSX and 

NASDAQ at any given time. Thus, the 

changes will simplify the fee schedule 

by providing certainty to the fee 

assessed. For these reasons, the 

Exchange does not believe that any of 

the proposed changes will impair the 

ability of members or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets. Moreover, because there are 

numerous competitive alternatives to 

the use of the Exchange, it is likely that 

BX will lose market share as a result of 

the changes if they are unattractive to 

market participants. Finally, the 

changes relating to Midpoint pegging 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
11256 Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices 

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

13 17 CFR 240.19b–4(f). 14 17 CFR 200.30–3(a)(12). 

also will not result in any burden on 

competition because they serve to 

clarify and enhance the understanding 

of members as to how rates are assigned. 

Accordingly, BX does not believe that 

the proposed rule changes will impair 

the ability of members or competing 

order execution venues to maintain 

their competitive standing in the 

financial markets. 

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 

The foregoing change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 12 and paragraph (f) of Rule 

19b–4 13 thereunder. 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– 

BX–2015–013 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–BX–2015–013. 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–BX– 

2015–013, and should be submitted on 

or before March 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–04189 Filed 2–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Government/Industry Aeronautical 

Charting Forum Meeting 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of public meeting. 

SUMMARY: This notice announces the biannual meeting of the Federal Aviation 

Administration (FAA) Aeronautical 

Charting Forum (ACF) to discuss 

informational content and design of 

aeronautical charts and related 

products, as well as instrument flight 

procedures development policy and 

design criteria. 

DATES: The ACF is separated into two 

distinct groups. The Instrument 

Procedures Group (IPG) will meet April 

28, 2015 from 8:30 a.m. to 5:00 p.m. The 

Charting Group will meet April 29 and 

30, 2015 from 8:30 a.m. to 5:00 p.m. 

ADDRESSES: The meeting will be hosted 

by Pragmatics, Inc. Company at 1761 

Business Center Drive, Reston, VA 

20190. 

FOR FURTHER INFORMATION CONTACT: For 

information relating to the Instrument 

Procedures Group, contact Thomas E. 

Schneider, FAA, Flight Procedures 

Standards Branch, AFS–420, 6500 

South MacArthur Blvd., P.O. Box 25082, 

Oklahoma City, OK 73125; telephone: 

(405) 954–5852. 

For information relating to the 

Charting Group, contact Valerie S. 

Watson, FAA, National Aeronautical 

Navigation Products (AeroNav 

Products), Quality Assurance & 

Standards, AJV–344, 1305 East-West 

Highway, SSMC4, Station 3409, Silver 

Spring, MD 20910; telephone: (301) 

427–5155. 

SUPPLEMENTARY INFORMATION: Pursuant 

to § 10(a)(2) of the Federal Advisory 

Committee Act (Pub. L. 92–463; 5 U.S.C. 

App. II), notice is hereby given of a 

meeting of the FAA Aeronautical 

Charting Forum to be held from April 28 

through April 30, 2015, from 8:30 a.m. 

to 5:00 p.m. at Pragmatics Inc. 

Company, at their offices at 1761 

Business Center Drive, Reston, VA 

20190. 

The Instrument Procedures Group 

agenda will include briefings and 

discussions on recommendations 

regarding pilot procedures for 

instrument flight, as well as criteria, 

design, and developmental policy for 

instrument approach and departure 

procedures. 

The Charting Group agenda will 

include briefings and discussions on 

recommendations regarding 

aeronautical charting specifications, 

flight information products, and new 

aeronautical charting and air traffic 

control initiatives. Attendance is open 

to the interested public, but will be 

limited to the space available. 

Please note the following special 

security requirements for access to the 

Pragmatics, Inc. Corporation 

Headquarters. A picture I.D. is required 

of all U.S. citizens. All foreign national 

participants are required to have a 

passport. Additionally, not later than 

March 30, 2015, foreign national 

attendees must provide their name, 

country of citizenship, company/

organization representing, and country 

of the company/organization. Send the 

information to: Steve VanCamp, 

Pragmatics Inc., FAA, Aviation Safety— 

Flight Standards Service, AFS–420, 

6500 South MacArthur Blvd., P.O. Box 

25082, Oklahoma City, OK, 73125 or via 

Email (preferred) to: steve.ctr.vancamp@

faa.gov. Foreign nationals who do not 

provide the required information will 


asabaliauskas on DSK5VPTVN1PROD with NOTICES