20520 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73362 

(October 15, 2014), 79 FR 62983 (‘‘Notice’’). 

4See Securities Exchange Act Release No. 73720 

(December 2, 2014), 79 FR 72747 (December 8, 

2014). 

5See Securities Exchange Act Release No. 74088 

(January 16, 2015), 80 FR 3687 (January 23, 2015) 

(‘‘Order Instituting Proceedings’’). 

6See letters to Elizabeth M. Murphy, Secretary, 

Commission, from Elizabeth King, Secretary & 

General Counsel, Exchange, dated January 8, 2015 

and February 27, 2015. 

7 15 U.S.C. 78s(b)(2). 

8 15 U.S.C. 78s(b)(2)(B)(ii)(I). 

9 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(57). 

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 that has been admitted 

to membership in the Exchange.’’ See Exchange 

Rule 1.5(n). 

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– 

2015–16, and should be submitted on or 

before May 7, 2015 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08701 Filed 4–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74705; File No. SR– 

NYSEArca–2014–117] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Designation of 

Longer Period for Commission Action 

on Proceedings To Determine Whether 

To Approve or Disapprove Proposed 

Rule Change To Remove the 

Exchange’s Quote Mitigation Plan as 

Provided by Commentary .03 to 

Exchange Rule 6.86 

April 10, 2015. 

I. Introduction 

On October 2, 2014, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to remove the Exchange’s quote 

mitigation plan as provided by 

Commentary .03 to NYSE Arca Rule 

6.86. The proposed rule change was 

published for comment in the Federal 

Register on October 21, 2014.3 On 

December 2, 2014, the Commission 

extended the time period in which to 

either approve the proposal, disapprove 

the proposal, or to institute proceedings 

to determine whether to approve or 

disapprove the proposal, to January 19, 

2015.4 On January 16, 2015, the 

Commission instituted proceedings to 

determine whether to approve or 

disapprove the proposal.5 The 

Commission received 2 comment letters 

in further support of the proposal from 

NYSE Arca.6

Section 19(b)(2) of the Act 7 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change.8 The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change, however, by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination.9 The proposed rule 

change was published for notice and 

comment in the Federal Register on 

October 21, 2014. April 19, 2015, is 180 

days from that date, and June 18, 2015, 

is 240 days from that date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

the proposal, and the issues raised in 

NYSE Arca’s comment letters. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates June 18, 2015 as the 

date by which the Commission shall 

either approve or disapprove the 

proposed rule change (File No. SR– 

NYSEArca–2014–117). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08699 Filed 4–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74703; File No. SR–BYX– 

2015–21] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Y-Exchange, Inc. 

April 10, 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 April 1, 

2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 

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 applicable to 

Members 5 and non-members of the 

Exchange pursuant to BYX Rules 15.1(a) 

and (c). Changes to the fee schedule 

pursuant to this proposal are effective 

upon filing. 

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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 20521 

6A logical port is commonly referred to as a TCP/ 

IP port, and represents a port established by the 

Exchange within the Exchange’s system for trading 

and billing purposes. Each logical port established 

is specific to a Member or non-member and grants 

that Member or non-member the ability to operate 

a specific application, such as FIX order entry or 

Multicast PITCH data receipt. 

7FIX and BOE ports are the only ports that may 

be used to send orders and related instructions to 

the Exchange. All other port types, including the 

Multicast PITCH Spin Server Port and GRP Port, 

permit Members and non-members to receive 

information from the Exchange. 

8The Exchange’s primary Multicast PITCH data 

feeds are identified as the ‘‘A feed’’ and the ‘‘C 

feed’’ and contain the same information. The A feed 

and the C feed differ only in the way such feeds 

are received. The Exchange also offers two 

redundant feeds, identified as the ‘‘B feed’’ and the 

‘‘D feed’’. 

9See Securities Exchange Act Release No. 71375 

(January 23, 2014), 79 FR 4771 (January 29, 2014) 

(SR–BATS–2013–059; SR–BYX–2013–039). 

10The Exchange notes that BZX intends to file a 

proposal very similar to this proposal that will align 

its logical port fees across each of the BGM 

Affiliated Exchanges. The Exchange also notes that 

EDGA and EDGX also intend to file a proposal to 

charge $500 per month for all types of logical ports 

as well as to change the descriptions used for 

logical port fees to mirror the descriptions used by 

the Exchange and BZX. 

11See BATS Global Markets Access Fee Changes 

for 2015, available at http://cdn.batstrading.com/

resources/fee_schedule/2015/BATS-GlobalMarkets-Access-Services-Fee-Changes-for-2015.pdf 

(issued October 7, 2014). 

12 15 U.S.C. 78f. 

13 15 U.S.C. 78f(b)(4). 

14 15 U.S.C. 78f(b)(4). 

15See supra note 10. 

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 the 

fees charged for and description of the 

logical ports 6 offered by the Exchange. 

Currently, the Exchange maintains 

logical ports for order entry, drop copies 

and the receipt of market data for which 

it currently charges $400 per month per 

port with the exception of Multicast 

PITCH Spin Server Ports and GRP 

Ports.7 Multicast PITCH Spin Server 

Ports and GRP Ports are used to request 

and receive a retransmission of data 

from the Exchange’s Multicast PITCH 

data feed. The Exchange does charge 

$400 per month for such ports, however, 

the Exchange separately delineates such 

fees because of various details related to 

the use of such ports. Specifically, 

Multicast PITCH Spin Server Ports are 

offered as a complete set, including one 

logical port for each channel of the 

Exchange’s Multicast PITCH data feed, 

and can be taken for either of the 

Exchange’s primary Multicast PITCH 

data feeds.8 Similarly, Multicast PITCH 

GRP Ports can be taken for either of the 

Exchange’s primary Multicast PITCH 

data feeds. The Exchange offers 

Multicast PITCH Spin Server Ports for a 

fee of $400 per month for a set of 

primary ports (A or C feed) and 

Multicast PITCH GRP Ports for a fee of 

$400 per month per primary port (A or 

C feed). The Exchange offers and will 

continue to offer for free the ports 

necessary to receive the Exchange’s 

redundant Multicast ‘‘B feed’’ and ‘‘D 

feed’’, as well as all ports made 

available in the Exchange’s secondary 

data center. 

In early 2014, the Exchange and its 

affiliate, BATS Exchange, Inc. (‘‘BZX’’), 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, BATS Global Markets, Inc., 

with Direct Edge Holdings LLC, the 

indirect parent of EDGX and EDGA 

(together with the Exchange, BZX and 

EDGX, the ‘‘BGM Affiliated 

Exchanges’’).9 In the context of the 

Merger, the BGM Affiliated Exchanges 

are working to align certain system and 

regulatory functionality, retaining only 

intended differences between the BGM 

Affiliated Exchanges. This includes 

migrating the BGM Affiliated 

Exchanges, which are currently located 

in different data centers, into a single 

data center. As part of the data center 

migration and the integration of the 

BGM Affiliated Exchanges, the 

Exchange is proposing to increase the 

fees charged from $400 per month to 

$500 per month for all categories of 

logical ports, including sets of Multicast 

PITCH Spin Server Ports for the A feed 

and the C feed, individual GRP Ports for 

the A feed and the C feed, and all other 

logical ports. The Exchange notes that 

EDGA and EDGX currently charge $500 

per month for most logical ports.10 The 

Exchange communicated to Members 

and non-Members regarding these 

changes via a trading notice issued on 

October 7, 2014.11

In addition to increasing the port fees 

charged by the Exchange, the Exchange 

proposes to add the words ‘‘Multicast 

PITCH’’ before GRP Ports to mirror the 

description of fees for Multicast PITCH 

Spin Server Ports. As noted above, the 

separate fees for Spin Server Ports and 

GRP Ports both relate to the Exchange’s 

Multicast PITCH data feed. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,12

in general, and furthers the objectives of 

Section 6(b)(4),13 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 also notes that it operates in 

a highly-competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The Exchange believes 

that the proposed rates are equitable and 

non-discriminatory in that they apply 

uniformly to all Members. 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(4) of the Act,14 in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and other persons 

using any facility or system which the 

Exchange operates or controls. The 

Exchange notes that its proposed 

changes, combined with the planned 

filings for EDGA, EDGX and BZX,15

would allow the BGM Affiliated 

Exchanges to provide consistent logical 

port offerings across each of the BGM 

Affiliated Exchanges. Consistent 

offerings, in turn, will simplify the 

connectivity requirements for Members 

of the Exchange that are also 

participants on EDGA, BZX and/or BYX 

[sic]. The proposed rule change would 

result in greater uniformity and less 

burdensome and more efficient 

understanding of Exchange connectivity 

requirements. 

The Exchange believes that the 

increase of fees for logical ports 

represents an equitable allocation of 

reasonable dues, fees and other charges. 

The Exchange operates in a highly 

competitive market in which exchanges 

offer connectivity services as a means to 

facilitate the trading activities of 

members and other participants. 

Accordingly, fees charged for 

connectivity are constrained by the 

active competition for the order flow of 

such participants as well as demand for 

market data from the Exchange. If a 

particular exchange charges excessive 

fees for connectivity, affected members 

will opt to terminate their connectivity 

arrangements with that exchange, and 

adopt a possible range of alternative 

strategies, including routing to the 

applicable exchange through another 

participant or market center or taking 

that exchange’s data indirectly. 

Accordingly, the exchange charging 

excessive fees would stand to lose not 

only connectivity revenues but also 


tkelley on DSK3SPTVN1PROD with NOTICES
20522 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 

16See Nasdaq Rule 7015 (providing no FIX or 

non-Trading FIX ports free of charge) and the NYSE 

Arca fee schedule available at https://

www.nyse.com/publicdocs/nyse/markets/nyse-arca/

NYSE_Arca_Marketplace_Fees.pdf (dated February 

26, 2015). The Exchange recognizes that some 

participants may be charged the lower rate of $200 

per month to the extent such participants maintain 

a low number of ports with NYSE Arca. The 

Exchange nonetheless believes that its proposed 

fees are comparable despite the fact that it does not 

proposed [sic] a lower fee for such participants. 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

revenues associated with the execution 

of orders routed to it by affected 

members, and, to the extent applicable, 

market data revenues. The Exchange 

believes that this competitive dynamic 

imposes powerful restraints on the 

ability of any exchange to charge 

unreasonable fees for connectivity. 

Lastly, the Exchange believe [sic] its 

proposed fees are reasonable because 

the Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) and the NYSE Arca, Inc. 

(‘‘NYSE Arca’’) charge comparable rates 

for logical ports to access such 

markets.16 As noted above, EDGA and 

EDGX also charge the same rate for 

access to most logical ports. 

The Exchange believes that its 

proposed changes to logical port fees are 

reasonable in light of the benefits to 

Exchange participants of direct market 

access and receipt of data. In addition, 

the Exchange believes that its fees are 

equitably allocated among Exchange 

constituents based upon the number of 

access ports that they require to access 

and receive data from the Exchange. The 

Exchange also believes that its fees for 

access services will enable it to better 

cover its infrastructure costs and to 

improve its market technology and 

services. 

Lastly, the Exchange also believes that 

the proposed amendments to its fee 

schedule are non-discriminatory 

because they will apply uniformly to all 

Members. All Members that voluntarily 

select various service options will be 

charged the same amount for the same 

services. All Members have the option 

to select any connectivity option, and 

there is no differentiation among 

Members with regard to the fees charged 

for the services offered by the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe its 

proposed amendments to its fee 

schedule would 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 the proposed change to 

logical port fees represents a significant 

departure from previous pricing offered 

by the Exchange or pricing offered by 

the Exchange’s competitors. 

Additionally, Members may opt to 

disfavor the Exchange’s pricing if they 

believe that alternatives offer them 

better value. Accordingly, the Exchange 

does not believe that the proposed 

change will impair the ability of 

Members or competing 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 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 17 and paragraph (f) of Rule 

19b–4 thereunder.18 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– 

BYX–2015–21 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–BYX–2015–21. 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 

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–BYX– 

2015–21, and should be submitted on or 

before May 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08697 Filed 4–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74706; File No. SR–ISE– 

2015–11] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Schedule of 

Fees 

April 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 March 26, 

2015, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, as described in Items I, II, 

and III below, which items have been 

prepared by the self-regulatory 


tkelley on DSK3SPTVN1PROD with NOTICES