58002 Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices 

17 15 U.S.C. 78q(d)(1). 

18 17 CFR 240.17d–2. 

19 17 CFR 200.30–3(a)(34). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62683 

(August 10, 2010), 75 FR 50017. 

4The time that elapses from an order message’s 

receipt by an Exchange device until the time that 

a matching engine acknowledgement with respect 

to such order message is transmitted from the 

Exchange device back to the user. For market data, 

the time measurement will be from the time that the 

market data engine receives a market data update 

until the time that the market data update is 

transmitted from the Exchange device back to the 

user. 

5 In addition to the boundary-level Exchange 

latency information, match level information will 

also provide further elapsed time detail for 

messaging between Exchange internal systems. 

6According to EDGA, the product measures 

latency of orders regardless of whether the orders 

are rejected, executed, or partially executed. 

III. Date of Effectiveness of the 

Proposed Plan and Timing for 

Commission Action 

Pursuant to Section 17(d)(1) of the 

Act 17 and Rule 17d–2 thereunder,18

after October 8, 2010, the Commission 

may, by written notice, declare the plan 

submitted by BYX and FINRA, File No. 

4–613, to be effective if the Commission 

finds that the plan is necessary or 

appropriate in the public interest and 

for the protection of investors, to foster 

cooperation and coordination among 

self-regulatory organizations, or to 

remove impediments to and foster the 

development of the national market 

system and a national system for the 

clearance and settlement of securities 

transactions and in conformity with the 

factors set forth in Section 17(d) of the 

Act. 

IV. Solicitation of Comments 

In order to assist the Commission in 

determining whether to approve the 

proposed 17d–2 Plan and to relieve BYX 

of the responsibilities which would be 

assigned to FINRA, interested persons 

are invited to submit written data, 

views, and arguments concerning the 

foregoing. Comments may be submitted 

by any of the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/other.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number 4–613 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number 4–613. This file number should 

be included on the subject line if e-mail 

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/ 

other.shtml). Copies of the submission, 

all subsequent amendments, all written 

statements with respect to the proposed 

plan that are filed with the Commission, 

and all written communications relating 

to the proposed plan 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 am and 3 

pm. Copies of the plan also will be 

available for inspection and copying at 

the principal offices of BYX and FINRA. 

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 4–613 and should be submitted 

on or before October 8, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23772 Filed 9–22–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62928; File No.SR–EDGA– 

2010–09] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Order Approving a 

Proposed Rule Change Relating to a 

Revenue Sharing Program With 

Correlix, Inc. 

September 17, 2010. 

On July 28, 2010, EDGA Exchange, 

Inc. (the ‘‘Exchange’’ or ‘‘EDGA’’) 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 establish a revenue sharing 

program with Correlix, Inc. (‘‘Correlix’’). 

The proposed rule change was 

published for comment in the Federal 

Register on August 13, 2010.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

In its proposal, EDGA described realtime analytical tools offered by Correlix 

to measure the latency of orders to and 

from the System, and also described the 

terms of the pricing and the revenue 

sharing agreement between Correlix and 

the Exchange. In addition, the Exchange 

represented that under the agreement, 

EDGA will receive 30% of the total 

monthly subscription fees received by 

Correlix from parties who have 

contracted directly with Correlix to use 

their RaceTeam latency measurement 

service for the Exchange. According to 

the Exchange, EDGA will not bill or 

contract with any Correlix RaceTeam 

customer directly. 

Pricing for the Correlix RaceTeam 

product for the Exchange varies 

depending on the depth of latency 

information requested, the number of 

unique MPIDs subscribed by the 

customer, and the number of ports 

available for monitoring by Correlix. For 

boundary-level Exchange latency 

information,4 the fee will be an initial 

$1,500 monthly base fee for the first 25 

ports associated in aggregate with any of 

the MPIDs selected by the Member for 

latency monitoring. For each additional 

25 ports associated in aggregate with 

any of the MPIDs selected by the 

Member for latency monitoring, an 

additional monthly charge of $750 will 

be assessed. For match-level Exchange 

latency information,5 the fee will be an 

initial $2,000 monthly base fee for the 

first 25 ports associated in aggregate 

with any of the MPIDs selected for 

latency monitoring, and an additional 

$1,000 per month for each additional 25 

ports associated in aggregate with any of 

the MPIDs selected for latency 

monitoring. 

According to the Exchange, Correlix 

will see an individualized unique 

Exchange-generated identifier that will 

allow Correlix RaceTeam to determine 

round-trip order time,6 from the time 

the order reaches the Exchange extranet, 

through the Exchange matching engine, 

and back out of the Exchange extranet. 

In its proposal, the Exchange 

represented that the RaceTeam product 

offering does not measure latency 

outside of the Exchange extranet. 

Further, EDGA stated that the unique 

identifier serves as a technological 

information barrier so that the 

RaceTeam data collector will only be 

able to view data for Correlix RaceTeam 

subscriber firms related to latency. 

Accordingly, Correlix will not see 

subscriber’s individual order detail such 

as security, price or size; individual 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 184 / Thursday, September 23, 2010 / Notices 58003 

7 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

8 15 U.S.C. 78f(b)(4). 

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

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

11 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. 62682 

(August 10, 2010), 75 FR 50029. 

4The time that elapses from an order message’s 

receipt by an Exchange device until the time that 

a matching engine acknowledgement with respect 

to such order message is transmitted from the 

Exchange device back to the user. For market data, 

the time measurement will be from the time that the 

market data engine receives a market data update 

until the time that the market data update is 

transmitted from the Exchange device back to the 

user. 

5 In addition to the boundary-level Exchange 

latency information, match level information will 

also provide further elapsed time detail for 

messaging between Exchange internal systems. 

6According to EDGX, the product measures 

latency of orders regardless of whether the orders 

are rejected, executed, or partially executed. 

7 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

RaceTeam subscribers’ logins will 

restrict access to only their own latency 

data; and Correlix will not see specific 

information regarding the trading 

activity of non-subscribers. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(4) of the Act,8 which requires that 

the rules of a national securities 

exchange provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

issuers and other persons using its 

facilities, and with Section 6(b)(5) of the 

Act,9 which requires, among other 

things, that that the rules of a national 

securities exchange be designed to 

promote just and equitable principles of 

trade, 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 

not be designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

Pursuant to the arrangement, EDGA 

makes the RaceTeam product uniformly 

available to all customers who 

voluntarily request it and pay the fees 

as detailed in the proposal, pursuant to 

a standard non-discriminatory pricing 

schedule. In addition, the Commission 

believes that the proposal will further 

the protection of investors and the 

public interest because: (1) Correlix will 

only be able to view data related to 

latency for Correlix RaceTeam 

subscriber firms; (2) Correlix will not 

see a subscriber’s individual order detail 

such as security, price or size; (3) 

individual RaceTeam subscribers’ logins 

will restrict access to only their own 

latency data; and (4) Correlix will not 

see specific information regarding the 

trading activity of non-subscribers. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,10 that the 

proposed rule change (SR–EDGA–2010– 

09) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–23753 Filed 9–22–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62929; File No. SR–EDGX– 

2010–09] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Order Approving a 

Proposed Rule Change Relating to a 

Revenue Sharing Program With 

Correlix, Inc. 

September 17, 2010. 

On July 28, 2010, EDGX Exchange, 

Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) 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 establish a revenue sharing 

program with Correlix, Inc. (‘‘Correlix’’). 

The proposed rule change was 

published for comment in the Federal 

Register on August 13, 2010.3 The 

Commission received no comment 

letters on the proposal. This order 

approves the proposed rule change. 

In its proposal, EDGX described realtime analytical tools offered by Correlix 

to measure the latency of orders to and 

from the System, and also described the 

terms of the pricing and the revenue 

sharing agreement between Correlix and 

the Exchange. In addition, the Exchange 

represented that under the agreement, 

EDGX will receive 30% of the total 

monthly subscription fees received by 

Correlix from parties who have 

contracted directly with Correlix to use 

their RaceTeam latency measurement 

service for the Exchange. According to 

the Exchange, EDGX will not bill or 

contract with any Correlix RaceTeam 

customer directly. 

Pricing for the Correlix RaceTeam 

product for the Exchange varies 

depending on the depth of latency 

information requested, the number of 

unique MPIDs subscribed by the 

customer, and the number of ports 

available for monitoring by Correlix. For 

boundary-level Exchange latency 

information,4 the fee will be an initial 

$1,500 monthly base fee for the first 25 

ports associated in aggregate with any of 

the MPIDs selected by the Member for 

latency monitoring. For each additional 

25 ports associated in aggregate with 

any of the MPIDs selected by the 

Member for latency monitoring, an 

additional monthly charge of $750 will 

be assessed. For match-level Exchange 

latency information,5 the fee will be an 

initial $2,000 monthly base fee for the 

first 25 ports associated in aggregate 

with any of the MPIDs selected for 

latency monitoring, and an additional 

$1000 per month for each additional 25 

ports associated in aggregate with any of 

the MPIDs selected for latency 

monitoring. 

According to the Exchange, Correlix 

will see an individualized unique 

Exchange-generated identifier that will 

allow Correlix RaceTeam to determine 

round-trip order time,6 from the time 

the order reaches the Exchange extranet, 

through the Exchange matching engine, 

and back out of the Exchange extranet. 

In its proposal, the Exchange 

represented that the RaceTeam product 

offering does not measure latency 

outside of the Exchange extranet. 

Further, EDGX stated that the unique 

identifier serves as a technological 

information barrier so that the 

RaceTeam data collector will only be 

able to view data for Correlix RaceTeam 

subscriber firms related to latency. 

Accordingly, Correlix will not see 

subscriber’s individual order detail such 

as security, price or size; individual 

RaceTeam subscribers’ logins will 

restrict access to only their own latency 

data; and Correlix will not see specific 

information regarding the trading 

activity of non-subscribers. 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.7 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 


srobinson on DSKHWCL6B1PROD with NOTICES