[Federal Register Volume 77, Number 136 (Monday, July 16, 2012)]
[Notices]
[Pages 41864-41868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17197]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67379; File No. SR-EDGX-2012-26]


 Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
Amendments to the EDGX Exchange, Inc. Fee Schedule

July 10, 2012.
    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 June 29, 2012, EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its fees and rebates applicable to 
Members \3\ of the Exchange pursuant to EDGX Rule 15.1(a) and (c). All 
of the changes described herein are applicable to EDGX Members. The 
text of the proposed rule change is available on the Exchange's 
Internet Web site at http://www.directedge.com, at the Exchange's 
principal office, and at the Public Reference Room of the Commission.
---------------------------------------------------------------------------

    \3\ A Member is any registered broker or dealer, or any person 
associated with a registered broker or dealer, that has been 
admitted to membership in the Exchange.
---------------------------------------------------------------------------

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 self-regulatory organization 
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 self-regulatory organization 
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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to add Flag PR to its fee schedule. Flag PR 
will be yielded when a Member removes liquidity from the EDGX book 
using the ROUQ \4\ routing strategy. The Exchange proposes to assess a 
charge of $0.0027 per share. In addition, a technical amendment is 
proposed to be made to Footnote 13 to include it as an additional 
removal flag in clause (ii) of that footnote.
---------------------------------------------------------------------------

    \4\ See Exchange Rule 11.9(b)(3)(c)(iv).
---------------------------------------------------------------------------

    In order to provide additional transparency to Members on the 
Exchange's fee schedule by distinguishing between orders that are 
routed using the ROUQ strategy and orders that are routed using the 
ROUC \5\ routing strategy, the Exchange proposes to add Flag RQ to the 
Exchange's fee schedule. Flag RQ will be yielded when a Member routes 
an order using the ROUQ routing strategy. The Exchange proposes to 
assess a charge of $0.0027 per share instead of the current charge of 
$0.0020 per share. In addition, the Exchange proposes to make 
conforming changes to Flag Q to delete the reference to the ROUQ 
routing strategy.
---------------------------------------------------------------------------

    \5\ See Exchange Rule 11.9(b)(3)(a).
---------------------------------------------------------------------------

    The Exchange proposes to amend Footnote 1 of the fee schedule to 
state that Members can qualify for the Market Depth tier and receive a 
rebate of $0.0033 per share for displayed liquidity added on EDGX if 
they post greater than or equal to 0.50% of the Total Consolidated 
Volume in Average Daily Volume on EDGX in total, where at least 2 
million shares are Non-Displayed Orders that yield Flag HA.
    The Exchange also proposes to amend Flag K to only apply to 
Members' orders

[[Page 41865]]

routed to NASDAQ OMX PSX (``PSX'') using the ROUC or ROUE routing 
strategy as defined in Rule 11.9(b)(3). The Exchange proposes to reduce 
the rate from $0.0025 per share to $0.0005 per share, which represents 
a pass-through of the Exchange's rate for routing orders to PSX, in 
response to the proposed pricing changes in PSX's pending filing with 
the Commission.\6\ Accordingly, where Members' orders are routed to the 
BATS BZX Exchange (``BATS BZX'') using the ROBA routing strategy (EDGX 
+ BATS), the Exchange proposes to apply Flag X, which is yielded when 
Members route orders through EDGX and the Exchange assesses a charge of 
$0.0029 per share.
---------------------------------------------------------------------------

    \6\ See PSX's Equity Trader Alert 2012-28 at http://www.nasdaqtrader.com/TraderNews.aspx?id=ETA2012-28 (discussing PSX's 
pending fee changes effective July 2, 2012).
---------------------------------------------------------------------------

    Similarly, the Exchange also proposes to amend the rate for Flag 
RS, which is yielded when Members route orders to PSX that add 
liquidity. The Exchange proposes to amend the pricing for Flag RS from 
a rebate of $0.0024 per share to a charge of $0.0005 per share (in 
response to PSX's pending filing), which represents a pass-through of 
the Exchange's rate for routing orders to PSX.
    The Exchange proposes to implement these amendments to its fee 
schedule on July 1, 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with the objectives of Section 6 of the Act,\7\ in general, and 
furthers the objectives of Section 6(b)(4),\8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Exchange Rule 11.9(b)(3) defines the ``System routing table'' as 
the proprietary process for determining the specific trading venues to 
which the System \9\ routes orders and the order in which the System 
routes them. Specifically, the Exchange reserves the right to maintain 
a different System routing table for different routing options and to 
modify the System routing table at any time without notice. ROUQ is one 
of the routing strategies that checks the System for available shares 
before sending the order to other destinations on the System routing 
table, and if shares remain unexecuted after routing, then the shares 
are posted on the EDGX book unless the Member instructs otherwise. The 
Exchange proposes to reduce the number of destinations in the System 
routing table for the ROUQ routing strategy, and the Exchange proposes 
to make conforming changes to the fee schedule to reflect this change.
---------------------------------------------------------------------------

    \9\ See Exchange Rule 1.5(cc).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rate of $0.0027 per share 
for Flag PR for orders that remove liquidity from the EDGX book using 
the ROUQ routing strategy is an equitable allocation of reasonable 
dues, fees, and other charges in comparison to the standard removal 
rate of $0.0029 per share because the Exchange is able to pass back the 
savings it receives from routing to other destinations on the Systems 
routing table to the Exchange's Members. The more destinations that an 
order is routed to can lead to a potentially lower average rate for 
Direct Edge ECN LLC d/b/a DE Route (``DE Route''), the Exchange's 
affiliated routing broker/dealer, as there is more of a likelihood of 
an execution at a ``low'' cost destination with higher rebates/lower 
fees. Conversely, the less destinations that an order is routed to can 
lead to a potentially higher average rate for DE Route as there is a 
greater chance that it is executed at a higher cost destination with 
lower rebates/higher fees. This rate is also consistent with the 
processing of similar routing strategies by BATS where BATS takes into 
account the rates that it is charged or rebated when routing to other 
destinations.\10\ In addition, the reduced fee of $0.0027 per share is 
designed to incentivize Members to route through EDGX first before 
going to other destinations on the System routing table, and thereby 
potentially increases volume on EDGX to the extent the order executes 
on EDGX. The Exchange also believes that the proposed rate is non-
discriminatory in that it applies uniformly to all Members.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 66335 (February 6, 
2012), 77 FR 7225 (February 10, 2012) (SR-EDGA-2012-03) (citing to 
the proposition that Members of the EDGA Exchange, Inc. (``EDGA'') 
are able to share in cost savings realized by EDGA when routing 
orders to other destinations). The concept is also seen generally in 
the BATS BZX fee schedule, describing Discounted Destination 
Specific Routing (``One Under'') to NYSE, NYSE ARCA and NASDAQ. See 
Securities Exchange Act Release No. 62858 (September 7, 2010), 75 FR 
55838 (September 14, 2010) (SR-BATS-2010-023) (modifying the BATS 
fee schedule in order to amend the fees for its BATS + NYSE Arca 
destination specific routing option to continue to offer a ``one 
under'' pricing model).
---------------------------------------------------------------------------

    Currently, the Exchange assesses a rate of $0.0020 per share for 
Flag Q for routing strategies ROUQ or ROUC. As discussed above, the 
Exchange modified its System routing table so that routing strategy 
ROUQ will route to a lower number of destinations than routing strategy 
ROUC. Therefore, the Exchange proposes adding Flag RQ to reflect orders 
routed using ROUQ and amending Flag Q to apply only for orders routed 
using the ROUC routing strategy. The Exchange believes increasing the 
rate charged for routing strategy ROUQ from $0.0020 per share to 
$0.0027 (Flag RQ) per share represents an equitable allocation of 
reasonable dues, fees, and other charges. The more destinations that an 
order is routed to can lead to a potentially lower average rate for DE 
Route as there is more of a likelihood of an execution at a ``low'' 
cost destination with higher rebates/lower fees. Conversely, the less 
destinations that an order is routed to can lead to a potentially 
higher average rate for DE Route as there is a greater chance that it 
is executed at a higher cost destination with lower rebates/higher 
fees. Accordingly, the lower number of destinations associated with the 
ROUQ routing strategy on the revised System routing table affords the 
Member less likelihood of execution at an away destination because 
there are fewer available liquidity venues.
    Currently, the standard rate for routing on EDGX is $0.0029 per 
share and yields Flag X. The Exchange believes that assessing a rate of 
$0.0027 for Flag RQ for orders that route to destinations using the 
routing strategy ROUQ represents an equitable allocation of reasonable 
dues, fees, and other charges because the Exchange can pass back the 
savings it receives from routing to other destinations to its Members, 
as described in more detail above.\11\ In addition, the Exchange 
believes that the proposed rate is non-discriminatory because the rate 
applies uniformly to all Members.
---------------------------------------------------------------------------

    \11\ Id.
---------------------------------------------------------------------------

    The Exchange believes that adding the Market Depth Tier to achieve 
a rebate of $0.0033 per share represents an equitable allocation of 
reasonable dues, fees, and other charges since it encourages Members to 
add displayed liquidity to EDGX book each month as only the displayed 
liquidity in this tier is awarded the rebate of $0.0033 per share.\12\ 
This tier also recognizes the contribution that non-displayed liquidity 
provides to the marketplace, including: (i) Adding needed depth to the 
EDGX market; (ii) providing price support/depth of liquidity; and (iii) 
increasing diversity of liquidity to EDGX. Furthermore, such increased 
displayed volume increases potential

[[Page 41866]]

revenue to the Exchange, and would allow the Exchange to spread its 
administrative and infrastructure costs over a greater number of 
shares, leading to lower per share costs. These lower per share costs 
would allow the Exchange to pass on the savings to Members in the form 
of higher rebates. The increased liquidity also benefits all investors 
by deepening EDGX's liquidity pool, offering additional flexibility for 
all investors to enjoy cost savings, supporting the quality of price 
discovery, promoting market transparency and improving investor 
protection. Volume-based rebates such as the one proposed herein have 
been widely adopted in the cash equities markets, and are equitable 
because they are open to all Members on an equal basis and provide 
discounts that are reasonably related to the value to an exchange's 
market quality associated with higher levels of market activity, such 
as higher levels of liquidity provision and introduction of higher 
volumes of orders into the price and volume discovery processes. The 
Exchange believes that such Market Depth Tier is reasonable based on 
examples from the Nasdaq OMX's fee schedule, which offers rebates that 
are tied to achieving tiers by posting non-displayed liquidity.\13\ In 
addition, the Exchange also believes that the proposed Market Depth 
tier is non-discriminatory because it applies uniformly to all Members.
---------------------------------------------------------------------------

    \12\ The Exchange notes that there is no change to the rebate of 
$0.0015 per share for adding non-displayed liquidity.
    \13\ http://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2 (where Nasdaq offers rebates to add 
non-displayed midpoint liquidity, supplemental liquidity, non-
displayed liquidity).
---------------------------------------------------------------------------

    The Exchange believes that the rebate of $0.0033 per share also 
represent an equitable allocation of reasonable dues, fees, and other 
charges since higher rebates are directly correlated with more 
stringent criteria.
    Currently, the Mega Tier rebates of $0.0034/$0.0032 per share have 
the most stringent criteria associated with them, and are $0.0003/
$0.0001 greater than the Ultra Tier rebate ($0.0031 per share) and 
$0.0006/$0.0004 greater than the Super Tier rebate ($0.0028 per share).
    For example, in order for a Member to qualify for the Mega Tier 
rebate of $0.0034, the Member would have to add or route at least 4 
million shares of ADV during pre- and post-trading hours and add a 
minimum of 20 million shares of ADV on EDGX in total, including during 
both market hours and pre- and post-trading hours. The criteria for 
this tier is the most stringent as fewer Members generally trade during 
pre- and post-trading hours because of the limited time parameters 
associated with these trading sessions. The Exchange believes that this 
higher rebate awarded to Members would incent liquidity during these 
trading sessions.
    In order to qualify for an equivalent rebate of $0.0034 per share 
(Mega Tape B tier), a Member would have to (i) post greater than or 
equal to .10% of the TCV in ADV more than their January 2012 ADV added 
to EDGX; and (ii) post greater than or equal to .10% of the TCV in ADV 
in Tape B securities more than their January 2012 ADV (baseline) added 
to EDGX. Assuming a TCV for June 2012 of 8.0 billion and a January 2012 
ADV of 1 million shares, the Member would have to post greater than or 
equal to 9 million shares (8 million shares more than their January 
2012 baseline of 1 million shares in ADV added to EDGX), and post 
greater than or equal to 9 million shares in Tape B securities to 
EDGX).
    In order to qualify for the new Market Depth tier, a Member would 
receive a rebate of $0.0033 per share for displayed liquidity added on 
EDGX if they post greater than or equal to 0.50% of the TCV in ADV on 
EDGX, at least 2 million shares of which are Non-Displayed Orders that 
yield Flag HA on EDGX in total. Assuming a TCV of 8.0 billion shares 
for June 2012, this would amount to 40 million shares, at least 2 
million shares of which are Non-Displayed Orders. The criteria for the 
Market Depth Tier, which includes the requirement to post 2 million 
shares of Non-Displayed Orders, is more stringent than criteria for the 
Mega Tier of posting 0.75% of TCV, as described below, because Non-
Displayed Orders do not have the same ability to attract contra-side 
orders to the marketplace because they are hidden on the EDGX book, are 
less commonplace than displayed liquidity, and Members are not eligible 
for the same rebates that displayed liquidity qualify for.\14\ In 
addition, because of the hierarchy of priority in Rule 11.8(a)(2), for 
equally priced trading interest, Non-Displayed Orders always have a 
lower priority than displayed orders. As a result, a Member has a 
priority disadvantage when using such order type and therefore, the 
criteria to satisfy this tier are more restrictive than those outlined 
in other tiers, below.
---------------------------------------------------------------------------

    \14\ Non-Displayed Orders that add liquidity (Flag HA) are 
eligible for a $0.0015 per share rebate instead of the default 
rebate rate for displayed liquidity of $0.0023 per share.
---------------------------------------------------------------------------

    Non-Displayed Orders also represent valuable liquidity to the 
Exchange as they add needed depth to the EDGX market and provide price 
support/depth of liquidity and diversity of liquidity to EDGX. In 
addition, Non-Displayed Orders are included in the Market Depth Tier to 
incentivize Members to add displayed liquidity. Because of the higher 
margin that the Exchange earns on Non-Displayed Orders vs. displayed 
orders (non-displayed orders are charged $0.0029 per share and earn a 
$0.0015 per share rebate, as provided in Flag HA, which is a margin of 
$0.0014 per share),\15\ the Exchange is able to provide a higher rebate 
to displayed orders. The Exchange believes the higher rebate will 
attract increased liquidity to EDGX.
---------------------------------------------------------------------------

    \15\ By contrast, displayed liquidity only allows the Exchange 
to earn a margin of as much as $0.0006 per share assuming no volume 
tiers are met (charged $0.0029 per share-$0.0023 per share rebate).
---------------------------------------------------------------------------

    In addition, increased volume from the use of this tier increases 
potential revenue to the Exchange, and would allow the Exchange to 
spread its administrative and infrastructure costs over a greater 
number of shares, leading to lower per share costs. These lower per 
share costs would allow the Exchange to pass on the savings to Members 
in the form of higher rebates. The increased liquidity also benefits 
all investors by deepening EDGX's liquidity pool, offering additional 
flexibility for all investors to enjoy cost savings, supporting, in 
part, the qualities of price discovery and market transparency, and 
improving investor protection. Volume-based rebates such as the one 
proposed herein have been widely adopted in the cash equities markets, 
and are equitable because they are open to all Members on an equal 
basis and provide discounts that are reasonably related to the value to 
an exchange's market quality associated with higher levels of market 
activity, such as higher levels of liquidity provision and introduction 
of higher volumes of orders into the price and volume discovery 
processes.
    Another way a Member can qualify for the Mega Tier (with a rebate 
of $0.0032 per share) would be to post 0.75% of TCV. Assuming an 
average TCV for June 2012 (8.0 billion), this would be 60 million 
shares on EDGX. A second method to qualify for the rebate of $0.0032 
per share would be to post 0.12% of the TCV (9.6 million shares) more 
than the Member's February 2011 or December 2011 ADV added to EDGX. 
Assuming the Member's February 2011/December 2011 ADVs are 1 million 
shares, the Exchange believes that requiring Members to post 10.6 
million more shares than a February or December 2011 baseline ADV 
encourages Members to add increasing

[[Page 41867]]

amounts of liquidity to EDGX each month.
    A Member can also qualify for the Mega Tier rebate of $0.0032 per 
share by adding or routing at least 4,000,000 shares of ADV prior to 
9:30 a.m. or after 4:00 p.m. (includes all flags except 6) and adding a 
minimum of .20% of the TCV on a daily basis measured monthly, including 
during both market hours and/or pre- and post-trading hours. Based on 
an average TCV for June 2012 (8.0 billion shares), a Member would 
qualify by adding 16 million shares during both market hours and/or 
pre- and post-trading hours and adding or routing at least 4,000,000 
shares of ADV during pre- and post trading hours. The Exchange notes 
that fewer Members generally trade during pre- and post-trading hours 
because of the limited time parameters associated with these trading 
sessions. Therefore, the amount of shares that the Exchange requires to 
be added or routed to satisfy this tier is less than for the Ultra 
Tier, for example, which is based on posting liquidity to EDGX during 
regular trading hours.
    In order to qualify for the Ultra Tier, which has less stringent 
criteria than the Mega Tier and Mega Tape B Tier, and be provided a 
rebate of $0.0031 per share, the Member would have to post 0.50% of 
TCV. Based on average TCV for June 2012 (8.0 billion shares), this 
would be 40 million shares on EDGX.
    Members can qualify for the Mini Tape B Tier and be provided a 
$0.0030 rebate per share for liquidity added on EDGX if the Member on a 
daily basis, measured monthly: (i) posts greater than or equal to .05% 
of the TCV in ADV more than their January 2012 ADV added to EDGX; and 
(ii) posts greater than or equal to .05% of the TCV in ADV in Tape B 
securities more than their January 2012 ADV added to EDGX. Based on a 
TCV of 8.0 billion shares for June 2012 and a Member's ADV for January 
2012 of 1 million shares (baseline), this would amount to (i) posting 
greater than or equal to 5 million shares to EDGX; and (ii) posting 
greater than or equal to 5 million shares in Tape B securities to EDGX.
    The Super Tier has the least stringent criteria of the tiers 
mentioned above. In order for a Member to qualify for this rebate, the 
Member would have to post at least 10 million shares on EDGX and would 
qualify for a rebate of $0.0028 per share.
    Another way a Member can qualify for a rebate of $0.0028 per share 
is to post 0.065% of the TCV in ADV more than their February 2011 ADV 
added to EDGX. This tier allows Members even greater flexibility with 
respect to achieving an additional rebate and rewards growth patterns 
in volume by Members as this rebate's conditions encourage Members to 
add increasing amounts of liquidity to EDGX each month. Based on an ADV 
in February 2011 (baseline) of 1,000,000 shares, the Member would have 
to add 6.2 million shares total to qualify for such rebate.
    The rates and rebates associated with routing orders to PSX on the 
Exchange's fee schedule are pass-through rates. Currently, PSX charges 
the Exchange $0.0025 per share for Members' orders that are routed to 
PSX using the ROUC or ROUE routing strategy and the Exchange charges 
its Members $0.0025 per share as a pass-through. Therefore, the 
Exchange believes that the proposed reduction from $0.0025 per share to 
$0.0005 per share is equitable and reasonable because PSX is reducing 
the rate it charges the Exchange for routing to PSX to $0.0005. 
Currently, PSX provides the Exchange a rebate of $0.0024 per share for 
Members' orders that are routed to PSX and add liquidity and the 
Exchange rebates Members $0.0024 per share as a pass-through (Flag RS). 
Therefore, the Exchange believes that the proposed reduction from a 
rebate of $0.0024 per share to a charge of $0.0005 per share is 
equitable and reasonable because PSX is increasing the rate it charges 
the Exchange for routing to PSX to $0.0005 per share. In addition, the 
Exchange also believes that the proposed pass-through of this rate is 
non-discriminatory because it applies uniformly to all Members.
    The Exchange believes that increasing the charge assessed for 
Members' orders that are routed to BATS BZX using the ROBA routing 
strategy (EDGX + BATS) from $0.0025 per share to $0.0029 per share 
(yielding Flag X) is equitable and reasonable because the Exchange is 
removing the $0.0004 per share incentive it previously associated with 
this routing strategy and replacing it with a straight pass-through of 
the charge BATS BZX assesses the Exchange for removing liquidity from 
the BZX Exchange order book.\16\ Accordingly, the Exchange will assess 
a charge of $0.0029 per share for Members' orders that route to BATS 
BZX using the ROBA routing strategy as well as other routed orders that 
yield Flag X. In addition, the Exchange also believes that the proposed 
pass-through of this rate is non-discriminatory because it applies 
uniformly to all Members.
---------------------------------------------------------------------------

    \16\ See BATS BZX fee schedule at http://batstrading.com/FeeSchedule/.
---------------------------------------------------------------------------

    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.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.

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) of the Act \17\ and Rule 19b-4(f)(2) \18\ thereunder. At any 
time within 60 days of the filing of such 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.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 [email protected]. Please include 
File

[[Page 41868]]

Number SR-EDGX-2012-26 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-EDGX-2012-26. 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 
a.m. and 3 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-2012-26 and should be 
submitted on or before August 6, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-17197 Filed 7-13-12; 8:45 am]
BILLING CODE 8011-01-P