Document ID: SEC-2012-0152-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: EDGA Exchange, Inc.
Posted Date: 2012-01-30T05:00Z

[Federal Register Volume 77, Number 19 (Monday, January 30, 2012)]
[Notices]
[Pages 4605-4606]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1918]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66231; File No. SR-EDGA-2011-40]

Self-Regulatory Organizations; EDGA Exchange, Inc.; Order 
Granting Approval of Proposed Rule Change Amending EDGA Rule 11.9

January 24, 2012.
    On December 2, 2011, EDGA Exchange, Inc. (``Exchange'' or ``EDGA'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
amend certain existing routing options contained in Rule 11.9. The 
proposed rule change was published for comment in the Federal Register 
on December 14, 2011.\3\ The Commission has received no comments on the 
proposed rule change. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 65911 (December 8, 
2011), 76 FR 77877 (``Notice'').
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    The Exchange proposes to amend several routing options contained in 
Rule 11.9(b)(3) to allow Users more discretion if shares remain 
unexecuted after routing. In particular, Rule 11.9(b)(3) will provide 
that Users may elect that any remainder of an order be posted to the 
EDGX Exchange, Inc. (``EDGX'') for any of the routing options listed in 
the rule, except those in paragraphs (a) and (n)-(q).\4\ The

[[Page 4606]]

Exchange believes the proposed modification of the routing options will 
provide market participants with greater flexibility in routing orders 
without having to develop their own complicated routing strategies. In 
addition, the varied routing options allow Users to take primary 
advantage of EDGA's low cost fee structure to remove liquidity on EDGA 
and if applicable, other destinations, while retaining the option of 
posting the remainder of the order to EDGX.
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    \4\ Routing options listed in Rules 11.9(b)(3)(a) and (n)-(q) 
are not altered as a result of this proposed rule change. The 
routing option in Rule 11.9(b)(3)(a) already posts to EDGX and no 
modification to the rule is needed as no discretion is provided to 
the User. The routing options in Rules 11.9(b)(3)(n)-(q) do not have 
the option to post the remainder of an order to EDGX. For a more 
detailed discussion of the specific proposed changes to the text of 
EDGA Rule 11.9 allowing Users to elect that any remainder of an 
order be posted to EDGX for any of the routing options listed in the 
rule, except those in paragraphs (a) and (n)-(q), see the Notice, 
supra note 3.
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    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of Section 6 of the Act \5\ 
and the rules and regulations thereunder applicable to a national 
securities exchange.\6\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\ 
which requires, among other things, that the Exchange's rules be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest. The Commission notes that 
the proposed change is intended to provide market participants with 
greater flexibility in routing orders, to provide additional clarity 
and specificity to the Exchange's rulebook regarding routing 
strategies, and to further enhance transparency with respect to 
Exchange routing offerings.
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    \5\ 15 U.S.C. 78f.
    \6\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-EDGA-2011-40), be, and hereby 
is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).
    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1918 Filed 1-27-12; 8:45 am]
BILLING CODE 8011-01-P