[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)]
[Notices]
[Pages 9570-9571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03950]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77190; File No. SR-EDGA-2016-03]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
11.6, Definitions, To Amend the Operation of Orders With a Non-
Displayed Instruction and Orders With Reserve Quantity

February 19, 2016.
    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 February 10, 2016, EDGA Exchange, Inc. (the ``Exchange'' or 
``EDGA'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the Exchange. The Exchange has 
designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \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)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to amend the operation of orders with a 
Non-Displayed \5\ instruction and orders with Reserve Quantity \6\ 
under Rule 11.6, Definitions, when they are to be routed away from the 
Exchange pursuant to the Post to Away routing option set forth in Rule 
11.11(g)(15).
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    \5\ See Exchange Rule 11.6(e)(2).
    \6\ See Exchange Rule 11.6(m).
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    The text of the proposed rule change is available at the Exchange's 
Web site at 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
    Non-Displayed is an instruction the User may attach to an order 
stating that the order is not to be displayed by the System on the EDGA 
Book.\7\ A Reserve Quantity is the portion of an order that includes a 
Non-Displayed instruction in which a portion of that order is also 
displayed on the EDGA Book.\8\ Both the portion of the order with a 
Displayed instruction and the Reserve Quantity are available for 
execution against incoming orders. Under the Post to Away routing 
option, the remainder of an order that was previously routed away and 
returned to the Exchange may be re-routed to and post on the order book 
of a destination on the System routing table \9\ as specified by the 
User.\10\
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    \7\ See Exchange Rule 11.6(e)(2). The term ``EDGA Book'' is 
defined as ``the System's electronic file of orders.'' See Exchange 
Rule 1.5(d).
    \8\ See Exchange Rule 11.6(m).
    \9\ The term ``System routing table'' refers to the proprietary 
process for determining the specific trading venues to which the 
System routes orders and the order in which it routes them. See 
Exchange Rule 11.11(g).
    \10\ See Exchange Rule 11.11(g)(15). The Post to Away routing 
option can be combined with the following routing strategies: ROUT, 
ROUX, ROUE, ROUD, ROUZ, ROUQ, RDOT, RDOX, ROBB, ROCO, INET, IOCM and 
ICMT. Id. The User may elect that the order be cancelled or post to 
the EDGA Book upon its initial return to the Exchange. Id. An order 
subject to the ROUT, ROUX, ROUE, ROUD, ROUZ, ROUQ, RDOT, RDOX, ROBB, 
ROCO, INET, IOCM and ICMT routing options will not be posted to the 
order book of the Trading Center to which it is routed. 
Alternatively, if the User had selected the Post to Away routing 
option, the order would be currently routed to the away Trading 
Center as an order with a Displayed instruction.
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    Currently, orders with a Non-Displayed instruction or Reserve 
Quantity that are routed to an away Trading Center pursuant to the Post 
to Away routing option are routed as fully displayed orders. The 
Exchange proposes to include a Non-Displayed instruction or to include 
a Reserve Quantity on orders routed to an away Trading Center. The 
Exchange believes doing so is consistent with the original intent of 
the order, to be Non-Displayed or to include a Reserve Quantity.\11\
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    \11\ Orders to be routed with a Non-Displayed instruction or a 
Reserve Quantity would be handled in accordance with the rules of 
the Trading Center to which they are routed.
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    The Exchange, therefore, proposes to amend the definition of Non-
Displayed under Exchange Rule 11.6(d)(2) to state that an order with a 
Non-Displayed instruction that is to be re-routed pursuant to the Post 
to Away routing option set forth in Rule 11.11(g)(15) will be 
identified as Non-Displayed when routed to an away Trading Center. 
Similarly, the Exchange proposes to amend the definition of Reserve 
Quantity under Exchange Rule 11.6(m) to state that the Reserve Quantity 
of an order that is to be re-routed pursuant to the Post to Away 
routing option set forth in Rule 11.11(g)(15) will be identified as an 
order with a Reserve Quantity when routed to an away Trading Center.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\12\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\13\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, and to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system. The proposal promotes just and equitable 
principles of trade because by enabling Members to continue to identify 
their order as an order with a Non-Displayed instruction or an order 
with Reserve Quantity when they are re-routed to an away Trading 
Center. The proposal also removes impediments to and perfects the 
mechanism of a free and open market and a national market

[[Page 9571]]

system by providing Users the flexibility with regard to the handling 
of their orders by ensuring that the order is not altered and retains 
its original instructions from order entry when it is routed to an away 
Trading Center. Doing so ensures that such orders that are routed 
pursuant to the Post to Away routing option may be posted to the away 
Trading Center's order book consistent with the order's original 
instructions.
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    \12\ 15 U.S.C. 78f.
    \13\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes its proposed rule change would not impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes the 
proposal would enhance competition by attracting additional order flow 
to the Exchange because it allows Users to ensure that their order is 
not altered and retains its original instructions from order entry when 
it is routed to an away Trading Center.

(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

    Because the foregoing proposed rule change does not: (A) 
Significantly affect the protection of investors or the public 
interest; (B) impose any significant burden on competition; and (C) 
become operative for 30 days from the date on which it was filed or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and paragraph 
(f)(6) of Rule 19b-4 thereunder.\15\ The Exchange has given the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change at least five business days prior to the date of filing of the 
proposed rule change, or such shorter time as designated by the 
Commission.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4.
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    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: (1) 
Necessary or appropriate in the public interest; (2) for the protection 
of investors; or (3) otherwise in furtherance of the purposes of the 
Act. If the Commission takes such action, the Commission shall 
institute proceedings to determine whether the proposed rule should be 
approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposal 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 Number SR-EDGA-2016-03 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-2016-03. 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 will also 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-2016-03 and should be 
submitted on or before March 17, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-03950 Filed 2-24-16; 8:45 am]
 BILLING CODE 8011-01-P