73942 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

13 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). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer, or any person associated 

with a registered broker or dealer, that has been 

admitted to membership in the Exchange. A 

Member will have the status of a ‘‘member’’ of the 

Exchange as that term is defined in Section 3(a)(3) 

of the Act.’’ See Exchange Rule 1.5(n). 

6The Exchange’s affiliated exchanges are EDGA 

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

(‘‘BATS’’), and BATS Y-Exchange, Inc. (‘‘BYX’’). 

7This service is an alternative to a service that the 

Exchange already provides to its Members—current 

order-sending Members route orders through access 

provided by the Exchange to the Exchange that 

either check the Exchange for available liquidity 

and then route to other destinations or, in certain 

circumstances, bypass the Exchange and route to 

other destinations. See Exchange Rule 11.9(b)(2) 

(setting forth routing options whereby Members 

may select their orders be routed to other market 

centers). 

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

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

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29180 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73780; File No. SR–EDGX– 

2014–28] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Rule 13.9 of EDGX 

Exchange, Inc. Related to 

Communication and Routing Service 

Known as ConnectEdge 

December 8, 2014. 

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 November 

25, 2014, 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 13.9 related to a 

communication and routing service 

known as ConnectEdge. The Exchange 

also proposes to add fees related to 

ConnectEdge to its fee schedule. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.directedge.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 13.9 related to a communication 

and routing service known as 

ConnectEdge. The Exchange also 

proposes to add fees related to 

ConnectEdge to its fee schedule. The 

Exchange currently offers and proposes 

to continue offering ConnectEdge on a 

voluntary basis in a capacity similar to 

a vendor. ConnectEdge is a 

communication service that provides 

Members 5 an additional means to 

receive market data from and route 

orders to any destination connected to 

Exchange’s network. ConnectEdge does 

not provide any advantage to 

subscribers for connecting to the 

Exchange’s affiliates 6 as compared to 

other method of connectivity available 

to subscribers. The servers of the 

Member need not be located in the same 

facilities as the Exchange in order to 

subscribe to ConnectEdge. Members 

may also seek to utilize ConnectEdge in 

the event of a market disruption where 

other alternative connection methods 

become unavailable. 

Specifically, this service allows 

Members to route orders to other 

exchanges and market centers that are 

connected to the Exchange’s network. 

This communications or routing service 

would not effect trade executions and 

would not report trades to the relevant 

Securities Information Processor. An 

order sent via the service does not pass 

through the Exchange’s matching engine 

before going to a market center outside 

of the Exchange (i.e., a participant could 

choose to route an order directly to any 

market center on the Exchange’s 

network). A participant would be 

responsible for identifying the 

appropriate destination for any orders 

sent through the service and for 

ensuring that it had authority to access 

the selected destination; the Exchange 

would merely provide the connectivity 

by which orders (and associated 

messages) could be routed by a 

participant to a destination and from the 

destination back to the participant.7

The Exchange will charge a monthly 

connectivity fee to Members utilizing 

ConnectEdge to route orders to other 

exchanges and broker-dealers that are 

connected to the Exchange’s network. 

The amount of the connectivity fee 

varies based solely on the bandwidth 

selected by the Member. Specifically, 

the Exchange proposes to charge $350 

for 1 Mb, $700 for 5 Mb, $950 for 10 Mb, 

$1,500 for 25 Mb, $2,500 for 50 Mb, and 

$3,500 for 100 Mb. 

ConnectEdge would also allow 

participants to receive market data feeds 

from the exchanges connected to the 

Exchange’s network. In such case, the 

Member would pay the Exchange a 

connectivity fee, which varies and is 

based solely on the amount of 

bandwidth required to transmit the 

selected data product to the Member. 

The proposed connectivity fees are set 

forth in the Exhibit 5 attached hereto 

and range from $100 to $3,500 based on 

the market data product the vendor 

selects. The Members would pay any 

fees charged by the exchange providing 

the market data feed directly to that 

exchange. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of Section 6(b) of the Act,8

in general, and Section 6(b)(5) of the 

Act,9 in particular, in that it promotes 

just and equitable principles of trade, 

removes impediments to, and perfect 

the mechanism of, a free and open 

market and a national market system, 

and, in general, protects investors and 

the public interest. Specifically, the 

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Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 73943 

10 Id. 

11See Securities Exchange Act Release No. 54846 

(November 30, 2006), 71 FR 71003 (December 7, 

2006) (SR–CHX–2006–34) (Notice of Filing and 

Immediate Effectiveness of Proposed Rule Change 

Regarding the Implementation of a Communication 

and Routing Service). 

12 15 U.S.C. 78f(b)(4). 

13See NYSE’s SFTI Americas Product and Service 

List available at http://www.nyxdata.com/docs/

connectivity. 

14See Nasdaq Rule 7034 (setting forth Nasdaq’s 

connectivity fees for receipt of third party market 

data products). 

15The Exchange’s rules and fees would not 

address the fees or manner of operation of any 

destination to which the participant asked that an 

order be routed. 

16 15 U.S.C. 78s(b)(3)(A)(iii). 

17 17 CFR 240.19b–4(f)(6). 

proposal is consistent with Section 

6(b)(5) of the Act,10 in that it provides 

Members an alternative means to 

receive market data from and route 

orders to any destination connected to 

the Exchange’s network, thereby 

removing impediments to and 

perfecting the mechanism of a free and 

open market and a national market 

system, and, in general, protecting 

investors and the public interest. In 

addition, ConnectEdge removes 

impediments to and perfects the 

mechanism of a free and open market 

and a national market system because, 

in the event of a market disruption, 

Members would be able to utilize 

ConnectEdge to connect to other market 

centers where other alternative 

connection methods become 

unavailable. The proposed rule change 

is also similar to a communication and 

routing service implemented by the 

Chicago Stock Exchange, Inc. 

(‘‘CHX’’).11 The proposed rule change 

will also not permit unfair 

discrimination among customers, 

brokers, or dealers because ConnectEdge 

will be available to all of the Exchange’s 

customers on an equivalent basis 

regardless of whether the servers of the 

Member are located in the same 

facilities as the Exchange. 

The Exchange also believes that its 

proposal is consistent with Section 

6(b)(4) of the Act,12 in that it provides 

for the equitable allocation of reasonable 

dues, fees and other charges among 

members and other persons using its 

facilities. First, the Exchange will charge 

a connectivity fee to Members utilizing 

ConnectEdge to route orders to other 

exchanges and market centers that are 

connected to the Exchange’s network, 

which varies based solely on the 

amount of bandwidth selected by the 

Member. The amounts of the 

connectivity fees are also reasonable as 

compared to similar fees charged by 

other exchanges. For purposes of order 

routing, the Exchange proposes to 

charge $350 for 1 Mb, $700 for 5 Mb, 

$950 for 10 Mb, $1,500 for 25 Mb, 

$2,500 for 50 Mb, and $3,500 for 100 

Mb. The New York Stock Exchange, Inc. 

(‘‘NYSE’’) currently charges $300 for 1 

Mb, $700 for 5 Mb, $900 for 10 Mb, 

$1,500 for 25 Mb, $2,000 for 50 Mb, and 

$2,600 for 100 Mb.13 The Exchange 

notes that, overall, the connectivity fee 

for routing of orders to other market 

centers proposed by the Exchange is 

either similar to or less than that 

charged by the NYSE. 

Second, with regard to utilizing 

ConnectEdge to receive market data 

products from other exchanges, the 

Exchange would only charge 

participants a connectivity fee, the 

amount of which is based solely on the 

amount of bandwidth required to 

transmit that specific data product to 

the Member. The amounts of the 

connectivity fees are also reasonable as 

compared to similar fees charged by 

other exchanges. For example, for 

market data connectivity, the Nasdaq 

Stock Market LLC (‘‘Nasdaq’’) charges 

$1,412 per month for CQS/CTS data 

feed, and the Exchange proposes to 

charge $1,000 per month connectivity 

for CQS/CTS data feed.14 The Exchange 

notes that, overall, the connectivity fee 

for receipt of other market centers’ data 

feed proposed by the Exchange is either 

similar to or less than that charged by 

Nasdaq. 

The participants would pay any fees: 

(i) Charged by the exchange providing 

the market data feed directly to that 

exchange (ii) charged by a market center 

to which they routed an order and an 

execution occurred directly to that 

market center. The Exchange itself 

would not charge any additional fees.15

ConnectEdge is offered and purchased 

on a voluntary basis, in that neither the 

Exchange nor Members are required by 

any rule or regulation to make this 

product available. Accordingly, 

Members can discontinue use at any 

time and for any reason, including due 

to an assessment of the reasonableness 

of fees charged. 

Moreover, the Exchange believes the 

proposed fees are reasonable and 

equitable because they are based on the 

Exchange’s costs to cover hardware, 

installation, testing and connection, as 

well expenses involved in maintaining 

and managing the service. The proposed 

fees allow the Exchange to recoup these 

costs, while providing Members with an 

alternative means to connect to other 

exchange and market centers. The 

Exchange believes that the proposed 

fees are reasonable and equitable in that 

they reflect the costs and the benefit of 

providing alternative connectivity. 

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 service. Further, the benefits of 

selecting such services are the same for 

all Members, irrespective of whether 

their servers are located in the same 

facility as the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. To the 

contrary, the Exchange believes that the 

proposal will promote competition by 

the Exchange offering a service similar 

to those offered by the CHX, Nasdaq and 

NYSE. Thus, the Exchange believes this 

proposed rule change is necessary to 

permit fair competition among national 

securities exchanges. In addition, the 

proposed rule change is designed to 

provide Members with an alternative 

means to access other market centers if 

they chose or in the event of a market 

disruption where other alternative 

connection methods become 

unavailable. Therefore, the Exchange 

does not believe the proposed rule 

change will have any effect on 

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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 16 and Rule 

19b–4(f)(6) thereunder.17 Because the 

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 

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73944 Federal Register / Vol. 79, No. 239 / Friday, December 12, 2014 / Notices 

18 In addition, Rule 19b–4(f)(6)(iii) requires the 

Exchange to give the Commission written notice of 

the Exchange’s intent to file the proposed rule 

change, along with a brief description and text of 

the proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

19See supra note 6. 

20For 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). 21 17 CFR 200.30–3(a)(12). 

was filed, or such shorter time as the 

Commission may designate, the 

proposed rule change has become 

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

of the Act and Rule 19b–4(f)(6) 

thereunder.18

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. Waiver of the 

30-day operative delay would permit 

the Exchange to provide Members with 

an alternative means to access other 

market centers particularly in the event 

of a market disruption. In addition, the 

Exchange represents that ConnectEdge 

does not provide any advantage to 

subscribers for connecting to the 

Exchange’s affiliates 19 as compared to 

other methods of connectivity available 

to subscribers. Based on the foregoing, 

the Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest.20 The Commission 

hereby grants the Exchange’s request 

and designates the proposal operative 

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– 

EDGX–2014–28 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–EDGX–2014–28. 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 the 

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–EDGX– 

2014–28 and should be submitted on or 

before January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29106 Filed 12–11–14; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 8966] 

Notice of Proposal To Extend the 

Agreement Between the Government 

of United States of America and the 

Government of the Republic of 

Nicaragua Concerning the Imposition 

of Import Restrictions on 

Archaeological Material From the PreHispanic Cultures of the Republic of 

Nicaragua 

The Government of the Republic of 

Nicaragua has informed the Government 

of the United States of America of its 

interest in an extension of the 

Agreement Between the Government of 

United States of America and the 

Government of the Republic of 

Nicaragua Concerning the Imposition of 

Import Restrictions on Archaeological 

Material from the Pre-Hispanic Cultures 

of the Republic of Nicaragua 

(‘‘Agreement’’). 

Pursuant to the authority vested in the 

Assistant Secretary of State for 

Educational and Cultural Affairs, and 

pursuant to the requirement under 19 

U.S.C. 2602(f)(1), an extension of this 

Agreement is hereby proposed. 

Pursuant to 19 U.S.C. 2602(f)(2), the 

views and recommendations of the 

Cultural Property Advisory Committee 

regarding this proposal will be 

requested. 

A copy of the Agreement, the 

Designated List of restricted categories 

of material, and related information can 

be found at the following Web site: 

http://culturalheritage.state.gov. 

Dated: November 25, 2014. 

Evan Ryan, 

Assistant Secretary, Bureau of Educational 

and Cultural Affairs, U.S. Department of 

State. 

[FR Doc. 2014–29213 Filed 12–11–14; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 8967; Docket No. DOS–2014– 

0027] 

Notice of Meeting of the Cultural 

Property Advisory Committee 

There will be a meeting of the 

Cultural Property Advisory Committee 

January 21–23, 2015 at the U.S. 

Department of State, Annex 5, 2200 C 

Street NW., Washington, DC. Portions of 

this meeting will be closed to the 

public, as discussed below. 

During the closed portion of the 

meeting, the Committee will review the 

proposal to extend the Agreement 

Between the Government of United 

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