Document ID: SEC-2014-2204-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed RuleChanges: BATS Exchange, Inc.; BATS Y-Exchange, Inc.; EDGA Exchange, Inc.; EDGX Exchange, Inc.
Posted Date: 2014-12-31T05:00Z

[Federal Register Volume 79, Number 250 (Wednesday, December 31, 2014)]
[Notices]
[Pages 78920-78924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30586]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73918; File Nos. SR-BATS-2014-055; SR-BYX-2014-030; SR-
EDGA-2014-25; SR-EDGX-2014-25]

Self-Regulatory Organizations; BATS Exchange, Inc.; BATS Y-
Exchange, Inc.; EDGA Exchange, Inc.; EDGX Exchange, Inc.; Notice of 
Amendments No. 2 and Order Granting Accelerated Approval to Proposed 
Rule Changes, as Modified by Amendments Nos. 1 and 2, To Establish a 
New Market Data Product Called the BATS One Feed

December 23, 2014

I. Introduction

    On October 30, 2014, BATS Exchange, Inc. (``BATS''), BATS Y-
Exchange, Inc. (``BYX''), EDGA Exchange, Inc. (``EDGA''), and EDGX 
Exchange, Inc.; (``EDGX'') (collectively, the ``Exchanges'') 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\ proposed rule changes to establish a new 
market data product called the ``BATS One Feed.'' On November 13, 2014, 
each of the Exchanges filed an Amendment No. 1 to its proposed rule 
change. The proposed rule changes, each as amended by an Amendment No. 
1, were published for comment in the Federal Register on November 20, 
2014.\3\ On December 15, 2014, each of the Exchanges filed an Amendment 
No. 2 to its proposed rule change. On December 15, 2014, each of the 
Exchanges submitted a comment letter on its proposed rule change, each 
of which included a redline showing the changes made by their 
Amendments No. 2.\4\ No other comments on the proposed rule changes 
have been received. However, similar proposed rule changes were filed 
with the Commission by the Exchanges earlier this year and subsequently 
withdrawn; \5\ three

[[Page 78921]]

comment letters were received in response to two of those proposed rule 
changes.\6\ The Commission is publishing this Notice and Order to 
solicit comment on the Amendments No. 2 and to approve each of the 
proposed rule changes, as modified by Amendments Nos. 1 and 2, on an 
accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release Nos. 73594 (Nov. 14, 
2014), 79 FR 69142 (SR-BATS-2014-055); 73595 (Nov. 14, 2014) 79 FR 
69160 (SR-BYX-2014-030); 73596 (Nov. 14, 2014), 79 FR 69148 (SR-
EDGA-2014-25); and 73597 (Nov. 14, 2014), 79 FR 69180 (SR-EDGX-2014-
25).
    \4\ See Letter from Chris Solgan, Assistant General Counsel, 
DirectEdge, dated December 12, 2014 (SR-BATS-2014-055); Letter from 
Chris Solgan, Assistant General Counsel, DirectEdge, dated December 
12, 2014 (SR-BYX-2014-030); Letter from Chris Solgan, Assistant 
General Counsel, DirectEdge, dated December 12, 2014 (SR-EDGA-2014-
25); and Letter from Chris Solgan, Assistant General Counsel, 
DirectEdge, dated December 12, 2014 (SR-EDGX-2014-25).
    \5\ Those proposed rule changes were published for comment in 
the Federal Register on August 1, 2014. See Securities Exchange Act 
Release Nos. 72688 (July 28, 2014), 79 FR 44941 (SR-BATS-2014-028); 
72690 (July 28, 2014), 79 FR 44929 (SR-BYX-2014-011); 72689 (July 
28, 2014), 79 FR 44917 (SR-EDGA-2014-16); and 56415 (July 28, 2014), 
79 FR 44892 (SR-EDGX-2014-19). On September 15, 2014, the Commission 
extended its review period until October 30, 2014. See Securities 
Exchange Act Release Nos. 73099, 79 FR 56418 (Sept. 19, 2014) (SR-
BATS-2014-028); 73102, 79 FR 56419 (Sept. 19, 2014) (SR-BYX-2014-
011); 73098, 79 FR 56415 (Sept. 19, 2014) (SR-EDGA-2014-16); and 
73099, 79 FR 56418 (Sept. 19, 2014) (SR-EDGX-2014-19). On October 
29, 2014, the Exchanges withdrew these proposed rule changes.
    \6\ See Letter from Sal Arnuk and Joe Saluzzi, Themis Trading 
LLC, to Elizabeth M. Murphy, Secretary, Commission, dated August 21, 
2014 (SR-BATS-2014-028) (``Themis Letter''); Letter from Ira D. 
Hammerman, General Counsel, SIFMA, to Kevin O'Neill, Deputy 
Secretary, Commission, dated August 22, 2014 (SR-BATS-2014-028) 
(``SIFMA Letter''); and Letter from Suzanne Hamlet Shatto to the 
Commission, dated August 19, 2014 (SR-EDGA-2014-16) (``Shatto 
Letter'').
---------------------------------------------------------------------------

II. Description of the Proposals

    The Exchanges propose to establish a new market data product called 
the BATS One Feed, which would be offered by each of the Exchanges. The 
BATS One Feed would be a consolidated data feed based on market data 
derived from underlying data feeds offered by each of the Exchanges. 
Specifically, the Exchanges would use the following data feeds, which 
are also available to other vendors, to create the proposed BATS One 
Feed: the EdgeBook Depth feed for EDGX, the EdgeBook Depth feed for 
EDGA, the BYX PITCH Feed, and the BATS PITCH Feed. The Exchanges have 
represented that they will continue to make these individual underlying 
feeds available and that, as a result, the source of the market data 
they would use to create the proposed BATS One Feed would be the same 
as the source available to other vendors. As described more fully 
below, the BATS One Feed would be a data feed that disseminates, on a 
real-time basis, the aggregate best bid and offer (``BBO'') of all 
displayed orders for securities traded on the Exchanges and for which 
the Exchanges report quotes under the Consolidated Tape Association 
(``CTA'') Plan or the Nasdaq/UTP Plan. The BATS One Feed would also 
contain the individual last sale information for each of the Exchanges. 
In addition, the BATS One Feed would include messages from the 
Exchanges about trading on their markets. Finally, the BATS One Feed 
would contain an optional functionality that would enable recipients to 
elect to receive aggregated two-sided quotations from the Exchanges for 
up to five (5) price levels.
Description of the BATS One Feed
    The BATS One Feed would contain the aggregate BBO of the Exchanges 
for all securities that are traded on the Exchanges and for which the 
Exchanges report quotes under the CTA Plan or the Nasdaq/UTP Plan. The 
aggregate BBO would include the total size of all orders at the BBO 
available on all Exchanges.\7\ The BATS One Feed would also disseminate 
last sale information for each of the individual Exchanges. The last 
sale information would include the price, size, time of execution, and 
the individual Exchange on which the trade was executed. The last sale 
message would also include the cumulative number of shares executed on 
all Exchanges for that trading day. The Exchanges have represented that 
they would disseminate the aggregate BBO of the Exchanges and last sale 
information through the BATS One Feed no earlier than each individual 
Exchange provides its BBO and last sale information to the processors 
under the CTA Plan or the Nasdaq/UTP Plan.
---------------------------------------------------------------------------

    \7\ The Exchanges have stated that quotations of odd lot size, 
which is generally less than 100 shares, would be included in the 
total size of all orders at a particular price level in the BATS One 
Feed but are currently not reported by the Exchanges to the 
consolidated tape.
---------------------------------------------------------------------------

    The BATS One Feed would also include Symbol Summary, Market Status, 
Retail Liquidity Identifier on behalf of BYX, Trading Status, and Trade 
Break messages. The Symbol Summary message would include the total 
executed volume across all of the Exchanges. The Market Status message 
would be disseminated to reflect a change in the status of one of the 
Exchanges. For example, the Market Status message would indicate 
whether one of the Exchanges is experiencing a systems issue or 
disruption and quotation or trade information from that market is not 
currently being disseminated via the BATS One Feed as part of the 
aggregated BBO. The Market Status message would also indicate when an 
Exchange is no longer experiencing a systems issue or disruption to 
properly reflect the status of the aggregated BBO.
    The Retail Liquidity Identifier indicator message would be 
disseminated via the BATS One Feed on behalf of the BYX only pursuant 
to BYX's Retail Price Improvement (``RPI'') Program.\8\ The Retail 
Liquidity Identifier indicates when RPI interest priced at least $0.001 
better than BYX's Protected Bid or Protected Offer for a particular 
security is available in the System. The Exchanges propose to 
disseminate the Retail Liquidity Indicator via the BATS One Feed in the 
same manner as it is currently disseminated through consolidated data 
streams (i.e., pursuant to the Consolidated Tape Association Plan/
Consolidated Quotation Plan, or CTA/CQ, for Tape A and Tape B 
securities, and the Nasdaq UTP Plan for Tape C securities) as well as 
through proprietary BYX data feeds. The Retail Liquidity Identifier 
reflects the symbol and the side (buy or sell) of the RPI interest, but 
does not include the price or size of the RPI interest. In particular, 
like CQ and UTP quoting outputs, the BATS One Feed would include a 
field for codes related to the Retail Price Improvement Identifier. The 
codes indicate RPI interest that is priced better than BYX's Protected 
Bid or Protected Offer by at least the minimum level of price 
improvement as required by the Program.
---------------------------------------------------------------------------

    \8\ For a description of BYX's RPI Program, see BYX Rule 11.24. 
See also Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (SR-BYX-2012-019) (Order 
Granting Approval of Proposed Rule Change, as Modified by Amendment 
No. 2, to Adopt a Retail Price Improvement Program); Securities 
Exchange Act Release No. 67734 (August 27, 2012), 77 FR 53242 
(August 31, 2012) (SR-BYX-2019-019) (Notice of Filing of Proposed 
Rule Change to Adopt a Retail Price Improvement Program).
---------------------------------------------------------------------------

    The Trade Break message would indicate when an execution on one of 
the Exchanges has been broken in accordance with the individual 
Exchange's rules.\9\ The Trading Status message would indicate the 
current trading status of a security on each individual Exchange. For 
example, a Trading Status message would be sent when a short sale price 
restriction is in effect pursuant to Rule 201 of Regulation SHO 
(``Short Sale Circuit Breaker''),\10\ or the security is subject to a 
trading halt, suspension or pause declared by the listing market. A 
Trading Status message would be sent whenever a security's trading 
status changes.
---------------------------------------------------------------------------

    \9\ See, e.g., Exchange and EDGA Rule 11.13 (Clearly Erroneous 
Executions) and BATS and BYX Rule 11.17 (Clearly Erroneous 
Executions).
    \10\ 17 CFR 242.200(g); 17 CFR 242.201.
---------------------------------------------------------------------------

    Optional Functionality for Aggregate Depth of Book. The BATS One 
Feed would also offer an additional, optional functionality that would 
enable recipients to receive two-sided quotations from the Exchanges 
for five (5) price levels for all securities that are traded on the 
Exchanges. The option for

[[Page 78922]]

receiving the BATS One Feed with this depth of book functionality is 
referred to as the ``BATS One Premium Feed;'' the option for receiving 
the BATS One Feed without this functionality is referred to as the 
``BATS One Summary Feed.'' For each price level on one of the 
Exchanges, the BATS One Premium Feed option of the BATS One Feed would 
include a two-sided quote and the number of shares available to buy and 
sell at that particular price level.\11\
---------------------------------------------------------------------------

    \11\ Recipients who do not elect to receive the BATS One Premium 
Feed would receive the aggregate BBO of the Exchanges under the BATS 
Summary Feed, which, unlike the BATS Premium Feed, would not 
delineate the size available at the BBO on each individual Exchange.
---------------------------------------------------------------------------

    Distribution of the BATS One Feed. The Exchanges represent that 
they have taken into consideration their affiliated relationships in 
the design of the BATS One Feed to assure that vendors would be able to 
offer a similar product on the same terms as the Exchanges, both from 
the perspective of latency and cost. The Exchanges have stated that 
they propose to offer the BATS One Feed voluntarily in response to 
demand from vendors and subscribers that are interested in receiving 
the aggregate BBO and last sale information from the Exchanges as part 
of a single data feed. The Exchanges assert that the BATS One Feed can 
be used by industry professionals and retail investors looking for a 
cost effective, easy-to-administer, high quality market data product 
with the characteristics of the BATS One Feed. The Exchanges also 
assert that the BATS One Feed would help protect a free and open market 
by providing vendors and subscribers additional choices in receiving 
this type of market data, thus promoting competition and innovation.
    With respect to latency, the Exchanges have represented that the 
path for distribution by the Exchanges of BATS One Feed would not be 
faster than the path for distribution that would be used by a vendor to 
distribute an independently created a BATS One-like product. 
Accordingly, the Exchanges have stated, the proposed BATS One data feed 
is a data product that a competing vendor could create and sell without 
being in a disadvantaged position relative to the Exchange. In 
recognition that the Exchanges are the source of their own market data 
and affiliated with one another, the Exchanges have represented that 
the source of the market data they would use to create the proposed 
BATS One Feed is available to other vendors. Specifically, the 
Exchanges have represented that they would use the following data feeds 
to create the proposed BATS One Feed, each of which is available to 
other vendors: the EdgeBook Depth feed for EDGX, the EdgeBook Depth 
feed for EDGA, the BYX PITCH Feed, and the BATS PITCH Feed. The 
Exchanges have also represented that they will continue to make 
available these individual underlying feeds and that, as a result, the 
source of the market data they would use to create the proposed BATS 
One Feed is the same as the source available to competing vendors.
    The Exchanges have also made the following representations 
regarding the latency of the BATS One Feed and any consolidated feed to 
be offered by a competing vendor. In order to create the BATS One Feed, 
the system creating and supporting the BATS One Feed would need to 
receive the individual data feeds from each Exchange and, in turn, 
aggregate and summarize that data to create the BATS One Feed and then 
distribute it to end users. This is the same process a competing vendor 
would undergo should it create a market data product similar to the 
BATS One Feed to distribute to its end users. In addition, a competing 
vendor could locate its servers in the same facilities as the system 
creating and supporting the BATS One Feed and could therefore receive 
the individual data feeds from each Exchange at the same time as the 
system creating and supporting the BATS One Feed. Thus, the Exchanges 
have stated that they would not have any unfair advantage over 
competing vendors with respect to obtaining data from the individual 
Exchanges, because the technology supporting the BATS One Feed would 
similarly need to obtain the underlying data feeds and because this 
connection would be on a level playing field with a competing vendor 
located at the same facility as the Exchanges. Likewise, the BATS One 
data feed would not have a speed advantage vis-[agrave]-vis competing 
vendors with respect to access to end user customers, whether those end 
users are also located in the same data center or not.
    With regard to cost, the Exchanges have represented that they will 
file a separate rule filing with the Commission to establish fees for 
BATS One Feed and that these fees would be designed to ensure that 
vendors could compete with the Exchanges by creating a similar product. 
To ensure a vendor can compete with the Exchanges by creating the same 
product as the BATS One Feed and selling it to their clients, the 
Exchanges have also represented that they would charge their clients 
for the BATS One Feed an amount that is no less than the cost to a 
market data vendor to obtain all the underlying feeds, plus an amount 
to be determined that would reflect the value of the aggregation and 
consolidation function. Thus, the pricing for the BATS One Feed would 
enable a vendor to receive the underlying data feeds and offer a 
similar product on a competitive basis and with no pricing disadvantage 
relative to the Exchanges.
Implementation Date
    The Exchanges have represented that they anticipate making the BATS 
One Feed available as soon as practicable after approval of the 
proposed rule changes by the Commission and the effectiveness of rule 
filings to establish the fees for the BATS One Feed.\12\
---------------------------------------------------------------------------

    \12\ Each of the Exchanges intend to file a separate proposal 
establishing the fees for the BATS One Feed.
---------------------------------------------------------------------------

III. Summary of Comments

    As noted above, the Commission received three comment letters on 
previous versions of the proposed changes filed by some of the 
Exchanges.\13\ In their current proposals, the Exchanges have responded 
to the points raised by these commenters.
---------------------------------------------------------------------------

    \13\ See SIFMA Letter, Shatto Letter, and Themis Letter, supra 
note 6.
---------------------------------------------------------------------------

    The three commenters generally oppose the proposed BATS One Feed. 
The Shatto Letter expressed general concerns about the transparency of 
order flow information to regulators. The Themis Letter expressed 
objections to the proposed BATS One Feed on the grounds that it would 
introduce a new proprietary data feed and expressed concerns generally 
about the complexity arising from the proliferation of new data 
technologies. In their response to the commenters, the Exchanges argued 
that the Themis Letter and Shatto Letter are not responsive to the 
issues raised in the proposal or are aimed at existing elements of U.S. 
market structure that have been previously approved by the Commission.
    The SIFMA Letter primarily argues that the fees for the proposed 
BATS One Feed do not meet the requirements of the Act, including the 
requirement that such fees be ``fair and reasonable'' under section 
11A(c)(1)(C) of the Act. SIFMA also contends that BATS has circumvented 
the requirement to receive Commission approval for this product by 
offering and marketing the BATS One Feed since August 1, 2014. In their 
response to the SIFMA Letter, the Exchanges noted that the thrust of 
the SIFMA Letter is aimed at the initially proposed fees, which have 
now been removed from the proposed rule changes and are to be filed 
with the Commission via separate rule filings.

[[Page 78923]]

The Exchanges also noted that, while the SIFMA Letter correctly states 
that BATS has marketed the BATS One Feed since August 1, 2014, the 
SIFMA Letter incorrectly asserts that BATS has offered the BATS One 
Feed since that same date. The Exchanges have represented that all of 
their marketing materials have included statements that the BATS One 
Feed's implementation was pending to Commission approval, and at no 
point have the Exchanges offered the BATS One product for any use other 
than for testing and certification.

IV. Discussion and Commission Findings

    After carefully considering the proposals and the comments 
submitted, the Commission finds that the proposed rule changes, as 
modified by Amendments Nos. 1 and 2, are consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to national securities exchanges.\14\ In particular, the 
Commission finds that the proposed rule changes are consistent with the 
requirements of section 11A(c)(1)(C) of the Act \15\ and with Rule 
603(a)(2) of Regulation NMS thereunder,\16\ which requires that any 
national securities exchange, national securities association, broker, 
or dealer that distributes information with respect to quotations for 
or transactions in an NMS stock to a securities information processor, 
broker, dealer, or other persons shall do so on terms that are not 
unreasonably discriminatory. The Commission also finds that the 
proposed rule changes are consistent with section 6(b)(5) of the Act, 
which requires that the rules of an exchange be designed to promote 
just and equitable principles of trade, remove impediments to and 
perfect the mechanisms of a free and open market and a national market 
system and, in general, to protect investors and the public interest, 
and section 6(b)(8) of the Act, which requires that the rules of an 
exchange not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act.\17\
---------------------------------------------------------------------------

    \14\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
    \15\ Section 11A(c)(1)(C) of the Act requires, among other 
things, that no self-regulatory organization, member thereof, 
securities information processor, broker or dealer make use of the 
mails or any means or instrumentality of interstate commerce to 
collect, process, distribute, publish or prepare for distribution or 
publication any information with respect to quotations for or 
transactions in any security other than an exempted security in 
contravention of such rules and regulations as the Commission shall 
prescribe as necessary or appropriate in the public interest, for 
the protection of investors, or otherwise in furtherance of the 
purposes of the Act to assure that all securities information 
processors may, for purposes of distribution and publication, obtain 
on fair and reasonable terms such information with respect to 
quotations for and transactions in such securities as is collected, 
processed, or prepared for distribution or publication by an 
exclusive processor of such information acting in such capacity. 15 
U.S.C. 78k-1(c)(1)(C).
    \16\ 17 CFR 242.603(a)(2).
    \17\ 15 U.S.C. 78f(b)(5) and (b)(8).
---------------------------------------------------------------------------

    The Commission notes that, to create the BATS One Feed, the 
Exchanges would use underlying data feeds that belong to the Exchanges: 
the EdgeBook Depth feed for EDGX, the EdgeBook Depth feed for EDGA, the 
BYX PITCH Feed, and the BATS PITCH Feed. Accordingly, the Commission's 
review of the Exchanges' proposals has focused, in particular, on 
whether the proposals would result in affiliated exchanges--which are 
separate self-regulatory organizations under the Act--making their data 
products or services available to one another at terms (e.g., content, 
pricing, or latency) that are more favorable than those available to 
unaffiliated market participants.
    The Exchanges have represented that the BATS One Feed would be 
created using underlying data feeds that are available for subscription 
by vendors. In recognition that the Exchanges are the source of their 
own market data and that they are affiliated with one another, the 
Exchanges have also represented that they will continue to make 
available all of the individual underlying feeds and that the source of 
the market data they would use to create the proposed BATS One Feed is 
the same as the source available to competing vendors.
    With respect to latency, the Exchanges have represented that 
competing vendors could locate their servers in the same facilities as 
the system creating and supporting the BATS One Feed, and, therefore, 
could receive the underlying data feeds at the same time as the system 
creating and supporting the BATS One Feed. Therefore, the Exchanges 
have contended that, a competing vendor could obtain the underlying 
data feeds from the Exchanges on the same latency basis as the system 
that would be performing the aggregation and consolidation of the 
proposed BATS One Feed and could provide the same kind of product to 
its customers with the same latency they could achieve by purchasing 
the BATS One Feed from the Exchanges.\18\ The Exchanges have also 
represented that they have designed the BATS One Feed so that they 
would have no advantages over a competing vendor with respect to the 
speed of access to the underlying feeds.
---------------------------------------------------------------------------

    \18\ The Exchanges have represented that, in order to create the 
BATS One Feed, the system creating and supporting the BATS One Feed 
would need to receive the underlying data feeds from each Exchange 
and, in turn, aggregate and summarize that data to create the BATS 
One Feed and then distribute it to end users. The Exchanges have 
stated that this is the same process a competing vendor would 
undergo should it create a market data product similar to the BATS 
One Feed to distribute to its end users.
---------------------------------------------------------------------------

    With respect to pricing, although specific fees to be charged for 
the BATS One Feed are not part of the proposed rule changes, the 
Exchanges have represented that they will assess a fee that is at least 
equal to the aggregate cost of the underlying feeds (i.e., at least as 
much as the cost to a vendor of subscribing to each of the underlying 
data feeds), plus an additional amount (to be determined) that would 
reflect the value of the aggregation and consolidation function 
performed to create the BATS One Feed.\19\
---------------------------------------------------------------------------

    \19\ SIFMA has objected to the BATS One Feed primarily over 
concerns about fees for this product being ``fair and reasonable,'' 
consistent with section 11A(c)(1)(C) of the Act. The Commission 
notes, however, that the proposed rule changes do not contain 
proposed fees and that Exchanges have represented that they will not 
offer the BATS One Feed until the requisite fee filings under 
section 19(b) of the Act have been filed and are effective. The 
Commission will review any such filings when they have been 
submitted.
     SIFMA has also argued that BATS has circumvented the process of 
receiving Commission approval and has been actively offering and 
marketing the BATS One Feed for months. The Commission notes, 
however, that the Exchanges have represented that, although they 
have been marketing the BATS One Feed, all of their marketing 
materials have included statements that the BATS One Feed's 
implementation was pending to Commission approval and at no point 
have the Exchanges offered the BATS One product for any use other 
than for testing and certification.
---------------------------------------------------------------------------

    Based on the Exchange's representations with respect to the 
content, latency, and pricing of the BATS One Feed--which are central 
to the Commission's analysis of the proposal--the Commission finds that 
the Exchanges' proposals are consistent with the Act and the rules and 
regulations thereunder applicable to national securities exchanges. The 
Commission believes that these representations are designed to ensure 
that BATS, BYX, EDGA, and EDGX, which are separate self-regulatory 
organizations, do not, because of their relationship as affiliates, 
offer one another products or services on a more favorable basis than 
that available to other competing market participants.
    For the foregoing reasons, the Commission finds that the proposed 
rule changes, as amended, are consistent with section 11A(c)(1)(C) of 
the Act and Rule 603(a)(2) of Regulation NMS

[[Page 78924]]

thereunder,\20\ and sections 6(b)(5) and (b)(8) of the Act.\21\
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78k-1(c)(1)(C) and 17 CFR 242.603(a)(2).
    \21\ 15 U.S.C. 78f(b)(5) and (b)(8).
---------------------------------------------------------------------------

V. Accelerated Approval of Proposed Rule Changes, as Modified by 
Amendments No. 2

    The Amendments No. 2 revised the proposed rule changes to: (i) 
Clarify how the BATS One Feed would be created, (ii) make additional 
clarifying statements with respect to the latency and cost of the BATS 
One Feed, and (iii) bring together the discussion of key aspects of the 
description of the proposal in the same section. Accordingly, the 
Commission does not believe that the Amendments No. 2 raises any novel 
regulatory issues and therefore finds that good cause exists to approve 
the proposals, as modified by Amendments Nos. 1 and 2, on an 
accelerated basis.

VI. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether Amendments No. 2 
to the proposed rule changes are 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 Numbers SR-BATS-2014-055; SR-BYX-2014-030; SR-EDGA-2014-25; or SR-
EDGX-2014-25 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 Numbers SR-BATS-2014-055; SR-BYX-
2014-030; SR-EDGA-2014-25; or SR-EDGX-2014-25. 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 Numbers SR-BATS-2014-055; SR-BYX-2014-
030; SR-EDGA-2014-25; or SR-EDGX-2014-25 and should be submitted on or 
before January 21, 2015.

VII. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\22\ that the proposed rule changes, as modified by Amendments Nos. 
1 and 2, (SR-BATS-2014-055; SR-BYX-2014-030; SR-EDGA-2014-25; SR-EDGX-
2014-25) be, and hereby are, approved on an accelerated basis.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-30586 Filed 12-30-14; 8:45 am]
BILLING CODE 8011-01-P