Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 2989 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Member is defined as ‘‘any registered broker 

or dealer that has been admitted to membership in 

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

4See Securities Exchange Act Release No. 61885 

(April 9, 2010), 75 FR 20018 (April 16, 2010) (SR– 

BATS–2010–002). 

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–BATS– 

2015–02 and should be submitted on or 

before February 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00837 Filed 1–20–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74050; File No. SR–BYX– 

2015–01] 

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. 

January 14, 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 2, 

2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 

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 3 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 http://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 

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 modify its 

fee schedule effective immediately in 

order to: (1) adopt pricing for the 

Exchange’s historical market data; (2) 

adopt physical connection fees; and (3) 

add Membership Fees. 

Historical Market Data 

The Exchange proposes to begin 

charging a fee for providing historical 

data to data recipients upon request. 

The Exchange currently provides 

historical data upon request on an ad 

hoc basis, but proposes to begin 

charging a fee due to the infrastructure 

costs of storing and providing such data. 

As proposed, the Exchange will begin to 

charge for the following three products 

through either of these distribution 

methods: (1) Historical top of book data 

from the Exchange’s TOP data feed 

(‘‘Historical TOP Data’’), (2) historical 

data from the Exchange’s PITCH data 

feed (‘‘Historical PITCH Data’’), and (3) 

historical transaction data from the 

Exchange’s Last Sale Feed (‘‘Historical 

Last Sale Data’’), which are described in 

Exchange Rule 11.22(h). The Exchange 

notes that the same historical data 

products are offered for a fee by other 

market centers, including BATS 

Exchange, Inc. (‘‘BZX’’), which are 

offered for the same prices as those 

proposed herein.4

The proposed cost of user-accessible 

BYX Historical TOP Data, BYX 

Historical PITCH Data or BYX Historical 

Last Sale Data is $500 per month of data 

accessed by any individual user. The 

Exchange’s databases will contain up to 

90 days of data at any point in time. For 

data that the Exchange provides on an 

external hard drive to a market 

participant the proposed cost is $2,500 

per 1 terabyte (TB) drive generated by 

the Exchange. Each of the proposed 

costs set forth above applies per data 

product. For instance, an individual 

user that obtained access to BYX 

Historical Top Data would pay $500 for 

access to a particular month’s data, and 

if that user also wanted access to BYX 

Historical Last Sale Data, the individual 

user would need to pay another $500 for 

such access. Similarly, a market 

participant would pay $2,500 for an 

external hard drive containing BYX 

Historical TOP Data that fits on a 1 TB 

drive (internal use only); such 

participant would have to pay 

separately for a 1 TB drive containing 

BYX Historical Last Sale Data or BYX 

Historical PITCH Data. 

Membership Fees 

The Exchange is also proposing to 

charge an Annual Membership Fee for 

Members of the Exchange of $2,500, 

which will support their Exchange 

membership for the calendar year. The 

fee will be charged per Member firm. 

Beginning in January 2015, the 

Exchange plans to charge an Annual 

Membership Fee which will be assessed 

on all Members as of a date determined 

by the Exchange 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 Annual Membership Fee 

will be pro-rated beginning on the date 

on which membership is approved and 

based on the number of remaining 

trading days in that year. The fee will 

be assessed in the month following 

membership approval. For example, if a 

firm applies and is accepted for 

membership with the Exchange on 

February 15, 2015, the new Member will 

be assessed a pro-rated Annual 

Membership Fee for the period 

beginning on February 15 through the 

end of 2015. The fee will be assessed in 

the next month’s billing cycle, which in 

this case, would be March 2015. Such 

fees will be non-refundable. However, 

where a Member is pending a voluntary 

termination of rights as a Member 

pursuant to Rule 2.8 prior to the date 

any Annual Membership Fee for a given 

year will be assessed (i.e., January 1, 

2015) and the Member does not utilize 

the facilities of the Exchange while such 

voluntary termination of rights is 

pending, then the Member will not be 

obligated to pay the Annual 

Membership Fee. The Exchange believes 

this to be appropriate because there is 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
2990 Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(4) and (5). 

7See, e.g., NASDAQ Rule 7001(a) (assessing an 

[sic] $3,000 annual membership fee); see also New 

York Stock Exchange Price List 2015, 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). 

8See BZX Fee Schedule. 

ordinarily a 30 day waiting period 

before such resignation shall take effect. 

Physical Connection Fees 

The Exchange is also proposing to 

adopt fees for physical connections that 

are identical to those charged by BZX. 

The Exchange currently maintains a 

presence in two third-party data centers: 

(i) The primary data center where the 

Exchange’s business is primarily 

conducted on a daily basis, and (ii) a 

secondary data center, which is 

predominantly maintained for business 

continuity purposes. The Exchange does 

not currently charge any fees for 

physical connections to the Exchange. 

The Exchange currently offers both 1G 

and 10G connections and both are 

available at the primary and secondary 

data centers as well as through points of 

presence (‘‘PoPs’’). 

The Exchange proposes to charge 

physical connection fees on a monthly 

basis as follows: $1,000/month for any 

1G physical port to connect to the 

Exchange in the primary or secondary 

data center; $2,000/month for any 1G 

physical port to connect to the Exchange 

in any data center where the Exchange 

maintains a PoP other than the 

Exchange’s primary or secondary data 

center; $2,500/month for any 10G 

physical port to connect to the Exchange 

in the primary or secondary data center; 

and $5,000/month for any 10G physical 

port to connect to the Exchange in any 

data center where the Exchange 

maintains a PoP other than the 

Exchange’s primary or secondary data 

center. The proposed fees for PoP 

connectivity is [sic] higher than the fees 

for connectivity in the Exchange’s 

primary and secondary data centers due 

to the increased infrastructure costs of 

maintaining the PoP, including the 

necessary connectivity maintained by 

the Exchange from such PoP to the 

Exchange’s data centers. Similarly, the 

proposed fees for 10G connectivity is 

[sic] higher than the fees for 1G 

connectivity due to the further 

infrastructure costs associated with 

providing the additional bandwidth for 

10G physical ports. The Exchange is 

also proposing to pass through in full 

any fees or costs in excess of $1,000 

incurred by the Exchange to complete a 

cross-connect. The Exchange does not 

anticipate that passing through these 

expenses will affect many of the 

Exchange’s constituents, because the 

majority of cross-connect completions 

cost less than $1,000. For this reason, 

the Exchange proposes to pass-through 

the charges associated with crossconnect completions that cost more than 

$1,000 rather than to subsidize these 

expensive completions by charging an 

installation fee for all completions 

regardless of their cost. 

The Exchange proposes to implement 

the amendments to its fee schedule 

effective January 2, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.5

Specifically, the Exchange believes that 

the proposed rule change is consistent 

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

6(b)(5) of the Act,6 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 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 charging 

fees for providing historical data is 

reasonable and equitable because these 

products are completely optional in that 

no consumer is required to purchase 

any of them and only those consumers 

that deem such products to be of 

sufficient overall value and usefulness 

will purchase them. To the extent that 

customers do purchase the data 

products, the revenue generated will 

offset the Exchange’s fixed costs of 

operating and regulating a highly 

efficient and reliable platform for the 

trading of U.S. equities. It will also help 

the Exchange cover its costs in 

developing and running that platform, 

as well as ongoing infrastructure costs. 

The Exchange believes that these fees 

are non-discriminatory in that they are 

optional and apply uniformly to all data 

recipients irrespective of each 

recipient’s relationship to the Exchange 

(e.g., Member, non-Member data 

recipient, etc.). 

The Exchange also believes that 

assessing an Annual Membership Fee 

provides an equitable allocation of 

reasonable dues, fees and other charges 

among its Members and other persons 

using its facilities. The Exchange makes 

all services and products subject to 

these fees available on a nondiscriminatory basis to similarly 

situated recipients. The Exchange 

believes that the Annual Membership 

Fee is a reasonable and equitable 

method of ensuring that its fees fund a 

greater portion of the cost of regulating 

activity on the Exchange, and that even 

after assessing these fees, the overall 

cost of Exchange membership is 

reasonable as compared with the costs 

of membership in other SROs.7 The 

Exchange believes that the proposed 

addition of an Annual Membership Fee 

is non-discriminatory in that it applies 

uniformly to all Members. 

Finally, the Exchange believes that 

the proposed changes to adopt fees for 

physical connections are reasonable and 

equitable in that the proposal will help 

the Exchange to cover increasing 

infrastructure costs associated with 

maintaining the primary and secondary 

data centers as well as the PoPs. 

Further, such proposed pricing is 

identical to those fees charged by BZX.8

To that end, the Exchange believes that 

the proposed fees for physical 

connections to the Exchange are 

reasonable and equitable in that they are 

in the same range as analogous fees 

charged by other such exchanges. In 

addition, maintaining similar pricing to 

that of BZX is reasonable because it will 

be easy to understand for all Members 

of the Exchange that are also members 

of BZX. The Exchange believes that the 

proposed addition of physical 

connection fees is non-discriminatory in 

that it applies uniformly to all market 

participants that seek physical access to 

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, as amended. 

To the contrary, the Exchange believes 

that the proposed changes will allow the 

Exchange to compete more ably with 

other execution venues by charging 

competitive prices for both physical 

connectivity and historical data, which 

will allow the Exchange to more 

effectively operate and update the 

infrastructure associated with such 

offerings, which the Exchange believes 

will, in the long term, allow the 

Exchange to provide more desirable 

offerings to its customers in 

connectivity, historical data, and 

otherwise. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 13 / Wednesday, January 21, 2015 / Notices 2991 

9See supra note 7. 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f). 12 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)(4)(ii). 

The Exchange’s proposed 

membership fees will be lower than the 

cost of membership on other 

exchanges,9 and therefore, may 

stimulate intramarket 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 competition because it will 

apply to all Members equally. As stated 

above, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if the [sic] deem fee structures, 

including Annual Membership Fees, to 

be unreasonable or excessive. 

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 Act10 and paragraph (f) of Rule 

19b–4 thereunder.11 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–2015–01 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–2015–01. 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– 

2015–01, and should be submitted on or 

before February 11, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–00835 Filed 1–20–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74055; File No. SR–CME– 

2015–001] 

Self-Regulatory Organizations; 

Chicago Mercantile Exchange Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Related to Clearing of Certain 

iTraxx Europe Index Untranched CDS 

Contracts on Indices Administered by 

Markit 

January 14, 2015. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on January 5, 2015, Chicago Mercantile 

Exchange Inc. (‘‘CME’’) 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 

primarily by CME. CME filed the 

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

of the Act,3 and Rule 19b–4(f)(4)(ii) 4

thereunder, so that the proposal was 

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 purpose of the proposed changes 

to CME’s clearing rules (the ‘‘CDS 

Product Rules’’) is to enable CME to 

offer clearing of certain iTraxx Europe 

index untranched CDS contracts on 

indices administered by Markit (‘‘iTraxx 

Contracts’’). All capitalized terms not 

defined herein shall have the meaning 

given to them in the CDS Product Rules. 

CME is submitting the proposed 

amendments to the iTraxx Chapters (as 

defined in Item II.A. below) to become 

effective immediately, subject to 

receiving all regulatory approvals. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CME included statements concerning 

the purpose 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES