2154 Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 

37 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). 

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). 

6See Securities Exchange Act Release No. 71449 

(January 30, 2014), 79 FR 6961 (February 5, 2014) 

(SR–EDGX–2013–43; SR–EDGA–2013–34). 

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– 

NYSE–2014–76 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–NYSE–2014–76. 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 will also be available for Web site 

viewing and printing at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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–NYSE– 

2014–76 and should be submitted on or 

before February 5, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00530 Filed 1–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74025; File No. SR–EDGA– 

2014–36] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Related to Fees for 

Use of EDGA Exchange, Inc. 

January 9, 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 December 

30, 2014, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) filed with the 

Securities and Exchange Commission 

(‘‘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 its fees and rebates applicable to 

Members 5 of the Exchange pursuant to 

EDGA Rule 15.1(a) and (c) (‘‘Fee 

Schedule’’) to amend: (i) The definitions 

of Average Daily Trading Volume 

(‘‘ADV’’) and Total Consolidated 

Volume (‘‘TCV’’) to exclude shares on 

each day from January 12, 2015 up to 

and including January 16, 2015; (ii) 

increase the annual Membership fee 

from $2,000 to $2,500; (iii) eliminate the 

Trading Rights Fee and Market 

Participant Identifier (‘‘MPID’’) Fee; and 

(iv) make a number of non-substantive 

amendments and clarifications. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

Fee Schedule to amend: (i) The 

definitions of ADV and TCV to exclude 

shares on each day from January 12, 

2015 up to and including January 16, 

2015; (ii) increase the annual 

Membership fee from $2,000 to $2,500; 

(iii) eliminate the Trading Rights Fee 

and MPID Fee; and (iv) make a number 

of non-substantive amendments and 

clarifications. 

ADV and TCV Definitions 

Earlier this year, the Exchange and its 

affiliate, EDGX Exchange, Inc. (‘‘EDGX’’) 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, Direct Edge Holdings LLC, 

with BATS Global Markets, Inc., the 

parent of BATS (together with BATS, 

EDGA and EDGX, the ‘‘BGM Affiliated 

Exchanges’’).6 In the context of the 

Merger, the BGM Affiliated Exchanges 

are working to migrate EDGX and EDGA 

onto the BATS technology platform, and 

align certain system functionality, 

retaining only intended differences 

between the BGM Affiliated Exchanges. 

The migration is currently scheduled for 

the week of January 12, 2015. 

Currently, the Exchange determines 

the tiered pricing that it will provide to 

Members based on the Exchange’s tiered 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 2155 

7As provided in the Fee Schedule, ‘‘ADV’’ is 

currently defined as ‘‘the average daily volume of 

shares that a Member executed on the Exchange for 

the month in which the fees are calculated. ADV 

is calculated on a monthly basis, excluding shares 

on any day that the Exchange’s system experiences 

a disruption that lasts for more than 60 minutes 

during Regular Trading Hours ‘‘Exchange System 

Disruption’’, days with a scheduled early market 

close, and on the last Friday in June (the ‘‘Russell 

Reconstitution Day’’).’’ 

8As provided in the Fee Schedule, ‘‘TCV’’ is 

currently defined as ‘‘the volume reported by all 

exchanges and trade reporting facilities to the 

consolidated transaction reporting plans for Tapes 

A, B and C securities for the month in which the 

fees are calculated, excluding volume on any day 

that the Exchange experiences an ‘‘Exchange 

System Disruption’’, days with a scheduled early 

market close, or the Russell Reconstitution Day.’’ 

9 ‘‘Regular Trading Hours’’ is defined as ‘‘the time 

between 9:30 a.m. and 4:00 p.m. Eastern Time.’’ See 

Exchange Rule 1.5(y). 

10See Securities Exchange Act Release Nos. 

73759 (December 5, 2014), 79 FR 73677 (December 

11, 2014); and 73758 (December 5, 2014), 79 FR 

73679 (December 11, 2014) (SR–EDGX–2014–30; 

SR–EDGA–2014–30). 

11 15 U.S.C. 78f. 

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

pricing structure based on the 

calculation of ADV,7 and/or average 

daily TCV.8 The Exchange currently 

excludes from is calculation of ADV and 

TCV days where its system experiences 

a disruption that lasts for more than 60 

minutes during Regular Trading Hours,9

days with a scheduled early market 

close, and the last Friday in June (the 

‘‘Russell Reconstitution Day’’). The 

Exchange proposes to modify the 

definitions of ADV and TCV to also 

exclude shares on each day from 

January 12, 2015 up to and including 

January 16, 2015. The Exchange notes 

that it is not proposing to modify any of 

the existing fees or the percentage 

thresholds at which a Member may 

qualify for certain fees pursuant to the 

tiered pricing structure. 

The Exchange believes that this 

modification is reasonable because it 

avoids penalizing Members that might 

otherwise qualify for certain tiered 

pricing but that, because of the 

technology migration scheduled to 

occur during the week of January 12, 

2015, did not participate on the 

Exchange during that week to the extent 

that they might have otherwise 

participated. Therefore, the Exchange is 

proposing to modify its Fee Schedule to 

exclude trading activity occurring on 

each day from January 12, 2015 up to 

and including January 16, 2015. The 

proposal to exclude these trading days 

from the calculation of ADV and TCV is 

designed to provide Members additional 

time to monitor the migration of the 

Exchange onto BATS technology. 

Membership Fees 

The Exchange’s current Membership 

Fees include an annual Membership 

Fee, a Trading Rights Fee, and an MPID 

Fee. The annual Membership Fee is 

currently $2,000 per Member and is 

assessed in January of each year. For 

any month in which a firm is approved 

for membership with the Exchange after 

the January renewal period, the Firm 

Membership Fee will continue to be 

pro-rated beginning on the date on 

which membership is approved. The 

pro-rated fee is calculated based on the 

remaining trading days in that year, and 

assessed in the month following 

membership approval. The fee will 

continue to be non-refundable in the 

event that the firm ceases to be a 

Member following the date on which 

fees are assessed. However, if a Member 

is pending a voluntary termination of 

rights as a Member pursuant to 

Exchange Rule 2.8 prior to the date any 

Membership Fee for a given year will be 

assessed, and the Member does not 

utilize the facilities of Exchange during 

such time, then the Member is not 

obligated to pay the annual Membership 

Fee. 

Currently, the Exchange charges 

Members a monthly Trading Rights Fee 

of $300 for the ability to trade on the 

Exchange, regardless of the volume of 

shares traded. The Exchange also 

currently charges no fee for a Member’s 

first five MPIDs approved for use on the 

Exchange and $250 per month to 

Members who have more than 5 MPIDs 

approved for use on the Exchange. 

The Exchange proposes to increase 

the annual Membership Fee from $2,000 

to $2,500 and eliminate the Trading 

Rights Fee and MPID Fee. Therefore, as 

of January 2, 2015, Members will only 

be subject to the increased annual 

Membership Fee as part of their 

Membership Fee obligations. 

Non-Substantive Clarifying Changes 

The Exchange also proposes to make 

a number of clarifying, non-substantive 

changes to its Fee Schedule to provide 

greater clarity to Members on how the 

Exchange assesses fees and calculates 

rebates. The Exchange notes that none 

of these changes amend any fee or 

rebate, nor alter the manner in which it 

assesses fees or calculates rebates. First, 

the Exchange proposes to remove a 

reference to the EdgeBook Cloud Pricing 

as it was recently replaced by EDGA 

Historical Depth Data.10 Lastly, the 

Exchange propose to remove a reference 

to the effective date for Licensing and 

Continuing Education pricing as those 

fees effective [sic] have been effective 

since September 2013. 

Implementation Date 

The Exchange proposes to implement 

these amendments to its Fee Schedule 

on January 2, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,11

in general, and furthers the objectives of 

Section 6(b)(4),12 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 proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. The Exchange believes that 

the proposed rates are equitable and 

non-discriminatory in that they apply 

uniformly to all Members. The 

Exchange believes the fees and credits 

remain competitive with those charged 

by other venues and therefore continue 

to be reasonable and equitably allocated 

to Members. 

ADV and TCV Definitions 

The Exchange believes that its 

proposed amendments to the definitions 

of ADV and TCV to exclude shares 

during the week the Exchange is 

migrated onto BATS technology is 

reasonable because, as explained above, 

it will avoid penalizing Members that 

might otherwise qualify for certain 

tiered pricing but that, because of the 

technology migration, did not 

participate on the Exchange to the 

extent that they might have otherwise 

participated. The Exchange is not 

proposing to amend the thresholds a 

Member must achieve to become 

eligible for, or the dollar value 

associated with, the tiered rebates or 

fees. The proposal to exclude these 

trading days from the calculation of 

ADV and TCV is reasonable in that it is 

designed to provide Members additional 

time to monitor the migration of the 

Exchange onto BATS technology. In 

addition, the Exchange believes that the 

proposed changes to its Fee Schedule 

are equitably allocated among Exchange 

constituents and not unfairly 

discriminatory as the methodology for 

calculating ADV and TCV will apply 

equally to all Members. 


rljohnson on DSK3VPTVN1PROD with NOTICES
2156 Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 

13See, e.g., NASDAQ Rule 7001(a) (assessing a 

$3,000 annual membership fee); New York Stock 

Exchange Price List 2011, at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf 

(assessing a $40,000 annual trading license fee for 

the first two licenses held by a member 

organization). 

14See, e.g., NASDAQ Rule 7001(a) (assessing an 

$3,000 annual membership fee); New York Stock 

Exchange Price List 2011, at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf 

(assessing a $40,000 annual trading license fee for 

the first two licenses held by a member 

organization). 

Membership Fees 

The Exchange believes that increasing 

the annual Membership Fee and 

removing the Trading Rights Fee and 

MPID Fee provides an equitable 

allocation of reasonable dues, fees and 

other charges among its Members and 

other persons using its facilities. The 

Exchange also believes these changes 

will not permit unfair discrimination 

because the proposed fee changes will 

apply to all Members equally. Any firm 

that is granted membership to the 

Exchange will be charged the same fee, 

subject only to it being pro-rated based 

on the date upon which they become a 

Member, as described above. The 

Exchange also believes that increasing 

the annual Membership Fee from $2,000 

[sic] $2,500 is an equitable allocation of 

reasonable dues, fees, and other charges 

because the cost of Exchange 

membership will continue to be lower 

than the cost of membership on other 

exchanges.13 The Exchange notes that it 

has not increased the annual 

Membership Fee since its inception in 

September 2011. The Exchange believes 

eliminating the Trading Rights Fee and 

MPID Fee is reasonable because it 

would help simplify and streamline the 

Exchange’s membership fees and ease 

Members’ overall membership fee 

related obligations. 

In addition, the increase in the annual 

Membership Fee, coupled with the 

elimination of the Trading Rights and 

MPID fees, amounts to a fee reduction 

in a Member’s annual fee costs. 

Currently, Members are charged an 

annual Membership Fee of $2,000 and 

an additional Trading Rights Fee of 

$300 per month, resulting in a total 

charge of $5,600 for a full calendar year. 

That Member may be charged an 

additional $250 per month where it has 

more than 5 MPIDs approved for trading 

on the Exchange. As proposed, Members 

would only be subject to the proposed 

annual Membership Fee of $2,500. 

These reduced overall fees may attract 

additional firms to become Members on 

the Exchange, thereby, potentially 

increasing liquidity on the Exchange. 

Such increased liquidity benefits all 

investors by deepening the Exchange’s 

liquidity pool and offers additional 

flexibility for all investors to enjoy cost 

savings and improving investor 

protection. Furthermore, such increased 

volume would increase potential 

revenue to the Exchange and would 

allow the Exchange to spread its 

administrative and infrastructure costs 

over a greater number of shares, 

potentially leading to lower per share 

costs. Therefore, the Exchange believes 

that the proposed rule change provides 

for an equitable allocation of reasonable 

dues, fees and other charges among its 

members and other persons using its 

facilities. 

Non-Substantive Clarifying Changes 

The Exchange believes that the nonsubstantive clarifying changes to its Fee 

Schedule are reasonable because they 

are designed to provide greater 

transparency to Members with regard to 

how the Exchange assesses fees and 

provides rebates. The Exchange notes 

that none of the proposed nonsubstantive clarifying changes are 

designed to amend any fee or rebate, nor 

alter the manner in which it assesses 

fees or calculates rebates. The Exchange 

believes that Members would benefit 

from clear guidance in its Fee Schedule 

that describes the manner in which the 

Exchange would assess fees and 

calculate rebates. These nonsubstantive, technical changes to the 

Fee Schedule as intended to make the 

Fee Schedule clearer and less confusing 

for investors and eliminate potential 

investor confusion, 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes its proposed 

amendments to its Fee Schedule would 

not 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 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. 

ADV and TCV Definitions 

The proposal to exclude shares from 

January 12, 2015 up to and including 

January 16, 2015 from the ADV and TCV 

calculations is intended to allow 

Members additional time to monitor the 

migration of the Exchange onto BATS 

technology. 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. The proposed 

change will help to promote intramarket 

competition by avoiding a penalty 

Members that might otherwise qualify 

for certain tiered pricing but that, 

because of the technology migration, did 

not participate on the Exchange to the 

extent that they might have otherwise 

participated. The proposed rule change 

will not have an impact on intermarket 

[sic] competition as it will apply to all 

Members equally. 

Membership Fees 

The Exchange believes that increasing 

the annual Membership Fee and 

removing the Trading Rights Fee and 

MPID Fee would not impose any burden 

on competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The Exchange’s 

membership fees continue to be lower 

than the cost of membership on other 

exchanges,14 and therefore, may 

stimulate intramarket [sic] competition 

by attracting additional firms to become 

Members on the Exchange. In addition, 

membership fees are subject to 

competition from other exchanges. 

Accordingly, if the changes proposed 

herein are unattractive to market 

participants, it is likely the Exchange 

will see a decline in membership and/ 

or trading activity as a result. The 

proposed fee change will not impact 

intermarket [sic] competition because it 

will apply to all Members equally. 

Non-Substantive Clarifying Changes 

The Exchange believes that nonsubstantive, clarifying changes to the 

Fee Schedule would not affect 

intermarket nor intramarket competition 

because none of these changes are 

designed to amend any fee or rebate or 

alter the manner in which the Exchange 

assesses fees or calculates rebates. These 

changes are intended to provide greater 

transparency to Members with regard to 

how the Exchange access fees and 

provides rebates. 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 10 / Thursday, January 15, 2015 / Notices 2157 

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

16 17 CFR 240.19b–4(f). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange, NASDAQ OMX BX, Inc. (‘‘BX’’), 

and The NASDAQ Stock Market (‘‘LLC’’) are selfregulatory organizations (‘‘SROs’’) that are wholly 

owned subsidiaries of The NASDAQ OMX Group, 

Inc. (‘‘NASDAQ OMX’’). The Exchange, NOM (a 

facility of the Exchange [sic]), BX, BX Options (a 

facility of BX), and PSX (a facility of Phlx) (together 

with the Exchange known as the ‘‘NASDAQ 

Markets’’), are independently filing proposals to 

conform their respective Extranet Access Fee rules 

to NASDAQ Rule 7025. 

4Proposed Section XIII is listed in the Table of 

Contents (Preface). 

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 

unsolicited 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 15 and paragraph (f) of Rule 

19b–4 thereunder.16 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– 

EDGA–2014–36 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–EDGA–2014–36. 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–EDGA– 

2014–36, and should be submitted on or 

before February 5, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00527 Filed 1–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74022; File No. SR–Phlx– 

2015–04] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding the 

Extranet Access Fee 

January 9, 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 January 5, 

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 add new 

Section XIII (Extranet Access Fee) to the 

NASDAQ OMX PHLX LLC Pricing 

Schedule (‘‘Pricing Schedule’’), which 

includes description about the 

applicability of the Extranet Access Fee. 

This will conform the Exchange’s 

Pricing Schedule to that of other 

markets. 

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. 

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 proposal is to add 

new Section XIII (Extranet Access Fee) 

to the Pricing Schedule, which includes 

description about the applicability of 

the Extranet Access Fee. This will 

conform the Exchange’s Pricing 

Schedule to that of other markets.3

Specifically, the Exchange proposes to 

establish the Extranet Access Fee in 

proposed new Section XIII of the Pricing 

Schedule and indicate that certain nonExchange Customer Premises 

Equipment (‘‘CPE’’) Products shall be 

assessed a monthly access fee of $1,000 

per CPE.4 The Exchange also proposes 

to conform the Extranet Access Fee to 

that of another market, specifically 

NASDAQ Rule 7025, by also indicating 

that if an extranet provider uses 


rljohnson on DSK3VPTVN1PROD with NOTICES