[Federal Register Volume 78, Number 134 (Friday, July 12, 2013)]
[Notices]
[Pages 41974-41975]
[FR Doc No: 2013-16789]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST-2013-0131]

Agency Information Collection Activities: Requests for Comments;
Clearance of a Renewed Approval of Information Collection(s):
Procedures for Transportation Workplace Drug and Alcohol Testing
Programs

AGENCY: Office of the Secretary (OST), DOT.

ACTION: Notice and request for comments.

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

SUMMARY: The Department of Transportation (DOT) invites public comments
about our intention to request the Office of Management and Budget
(OMB) approval to renew an information collection. The collection
involves Transportation Drug and Alcohol Testing. The information to be
collected will be used to document tests conducted and actions taken to
ensure safety in the workplace and/or is necessary because under the
Omnibus Transportation Employee Testing Act of 1991, DOT is required to
implement a drug and alcohol testing program in various transportation-
related industries. DOT is required to publish this notice in the
Federal Register in accordance with the Paperwork Reduction Act of
1995, Public Law 104-13.

DATES: Comments to this notice must be received by September 10, 2013.

ADDRESSES: You may submit comments by any of the following methods:
     Web site: http://www.regulations.gov Follow the
instructions for submitting comments on the DOT electronic docket site.
     Federal eRulemaking Portal: http://www.regulations.gov
Follow the instructions for submitting comments.
     Fax: 1-202-493-2251.
     Mail or Hand Delivery: Docket Management Facility, U.S.
Department of Transportation, 1200 New Jersey Avenue SE., West
Building, Room W12-140, Washington, DC 20590, between 9 a.m. and 5
p.m., Monday through Friday, except on Federal holidays.
    Instructions: You must include the agency name and docket number
[DOT-OST-2013-0131] of this notice at the beginning of your comment.
Note that all comments received will be posted without change to http://www.regulations.gov including any personal information provided.
Please see the Privacy Act section of this document.
    Docket: You may view the public docket through the Internet at
http://www.regulations.gov or in person at the Docket Management System
office at the above address.

FOR FURTHER INFORMATION CONTACT: Bohdan Baczara, Office of Drug and
Alcohol Policy and Compliance, Office of the Secretary, U.S. Department
of Transportation, 1200 New Jersey Avenue SE., Room W62-300,
Washington, DC 20590;<PHONE_NUMBER> (voice),<PHONE_NUMBER> (fax), or
<EMAIL_ADDRESS>(email).

SUPPLEMENTARY INFORMATION:
    OMB Control Number: 2105-0529.
    Title: Procedures for Transportation Workplace Drug and Alcohol
Testing Programs.
    Form Numbers: DOT F 1385; DOT F 1380.
    Type of Review: Clearance of a renewal of an information
collection.
    Background: Under the Omnibus Transportation Employee Testing Act
of 1991, DOT is required to implement a drug and alcohol testing
program in various transportation-related industries. This specific
requirement is elaborated in 49 CFR Part 40, Procedures for
Transportation Workplace Drug and Alcohol Testing Programs. This
request for a renewal of the information collection for the program
includes 43 burden items among which are the U.S. Department of
Transportation Alcohol Testing Form (ATF) [DOT F 1380] and the DOT Drug
and Alcohol Testing Management Information System (MIS) Data Collection
Form [DOT F 1385]. The ATF includes the employee's name, the type of
test taken, the date of the test, and the name of the employer. Custody
and control is essential to the basic purpose of the alcohol testing
program. Data on each test conducted, including test results, are
necessary to document tests conducted and actions taken to ensure
safety in the workplace.
    The MIS form includes employer specific drug and alcohol testing
information such as the reason for the test and the cumulative number
of positive, negative and refusal test results. The MIS data is used by
each of the affected DOT Agencies (i.e., Federal Aviation
Administration, Federal Transit Administration, Federal Railroad
Administration, Federal Motor Carrier Safety Administration, and the
Pipeline and Hazardous Materials Safety Administration) and the United
States Coast Guard when calculating their random testing rates.
    Respondents: The information will be used by transportation
employers, Department representatives, and a variety of service agents.
Estimated total number of respondents is 2,639,331.

    Frequency: The information will be collected annually.
    Estimated Total Number Burden Hours: 678,986.
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for DOT's performance; (b) the
accuracy of the estimated burden; (c) ways for the DOT to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.

    Authority:  The Paperwork Reduction Act of 1995; 44 U.S.C.
Chapter 35, as amended; and 49 CFR 1:48.

    Issued in Washington, DC, on July 8, 2013.

    Dated: July 8, 2013.
Patrice M. Kelly,
Deputy Director, Office of Drug and Alcohol Policy and Compliance.
[FR Doc. 2013-16789 Filed 7-11-13; 8:45 am]
BILLING CODE 4910-9X-P


[Federal Register Volume 79, Number 57 (Tuesday, March 25, 2014)]
[Notices]
[Pages 16401-16411]
[FR Doc No: 2014-06461]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71747; File No. SR-EDGX-2014-05]

Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing of Proposed Rule Change To Adopt a New Order Type Called the
Mid-Point Discretionary Order

March 19, 2014.
    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 March 7, 2014, 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 the
Substance of the Proposed Rule Change

    The Exchange proposes to proposes to [sic] amend: (i) Rule 11.5(c)
to add a new order type called the Mid-Point Discretionary Order; and
(ii) Rule 11.8(a)(2)(D) to reflect the priority of Mid-Point
Discretionary Orders.
    The text of the proposed rule change is available on the Exchange's
Internet Web site at www.directedge.com, at the Exchange's principal
office, and at the Public Reference Room of the Commission.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend: (i) Rule 11.5(c) to add a new order
type called the Mid-Point Discretionary Order; and (ii) Rule
11.8(a)(2)(D) to reflect the priority of Mid-Point Discretionary
Orders. The proposed Mid-Point Discretionary Order is designed to
increase displayed liquidity on the Exchange while also providing
Members the opportunity to achieve price-improvement by enabling the
order to execute at prices up to and including the mid-point of the
National Best Bid or Offer (``NBBO'').\3\
---------------------------------------------------------------------------

    \3\ Exchange Rule 1.5(o) defines ``NBBO'' as ``the national best
bid or offer.'' See also Rule 600(b)(42) of Regulation NMS under the
Securities Exchange Act of 1934.
---------------------------------------------------------------------------

Proposed Mid-Point Discretionary Order, Rule 11.5(c)(14)

    The Exchange proposes to amend Rule 11.5(c) to add a new order type
called the Mid-Point Discretionary Order, which is based on and would
operate similarly to the Mid-Point Discretionary Order on the EDGA
Exchange, Inc. (``EDGA'').\4\ Like the EDGA Mid-Point Discretionary
Order, the proposed EDGX Mid-Point Discretionary Order would be a limit
order that is displayed and pegged to the NBBO with discretion to
execute at prices to and including the mid-point of the NBBO.
Therefore, like the EDGA Mid-Point Discretionary Order, the EDGX Mid-
Point Discretionary Order would include two components: (i) A displayed
price which is pegged to the NBBO; and (ii) a discretionary range
within which it may generally execute at prices to and including the
mid-point of the NBBO.\5\ The displayed price of a Mid-Point
Discretionary Order to buy would be displayed at and pegged to the
national best bid (``NBB'').\6\ Conversely, the displayed price of a
Mid-Point Discretionary Order to sell would be displayed at and pegged
to the national best offer (``NBO'').\7\
---------------------------------------------------------------------------

    \4\ See EDGA Rule 11.5(c)(17). Securities Exchange Act Release
No. 67226 (June 20, 2012), 77 FR 38113 (June 26, 2012) (SR-EDGA-
2012-22) (Notice of Filing and Immediate Effectiveness of Proposed
Rule Change to Adopt the Mid-Point Discretionary Order).
    \5\ As discussed further below, the Exchange notes that the
proposed Mid-Point Discretionary Order would not include a
discretionary range where: (i) The NBBO is locked or crossed; (ii)
for a buy (sell) order, its limit price is equal to or less
(greater) than the NBB (NBO); or (iii) the price of the Upper Price
Band equals or moves below an existing Protected Bid or the Lower
Price Band equals or moves above an existing Protected Offer.
    \6\ Exchange Rule 1.5(o) defines ``NBB'' as ``the national best
bid.''
    \7\ Exchange Rule 1.5(o) defines ``NBO'' as ``the national best
offer.''
---------------------------------------------------------------------------

    The displayed prices of Mid-Point Discretionary Orders would be re-
priced to track changes in the NBBO and would receive a new time stamp
each time they are re-priced. The displayed price and discretionary
range of a Mid-Point Discretionary Order would maintain the same time
stamp, even where the displayed price is unchanged but the
discretionary range changed due to a change in the mid-point of the
NBBO. Like all discretionary order types, a Mid-Point Discretionary
Order's sole time stamp would be the one assigned to the displayed
portion of the order. A Mid-Point Discretionary Order's time stamp
would only change when the displayed price is adjusted to track changes
in the NBBO to which it is pegged.
    Mid-Point Discretionary Orders would not independently establish or
maintain the NBB or NBO; rather, the displayed prices of Mid-Point
Discretionary Orders would be derived from the then-current NBB or NBO.
A Mid-Point Discretionary Order would be cancelled if no NBBO exists,
or, as discussed more fully below, a trading halt is declared by the
listing market. The proposed Mid-Point Discretionary Order would be
able to join the Exchange BBO when the Exchange BBO equals the NBBO and
EDGX Book is locked or crossed by another market. If the proposed Mid-
Point Discretionary Order displayed on the Exchange would create a
locked or crossed market, the price of the order will be automatically
adjusted by the System to one minimum price variation below the current
NBO (for bids) or to one minimum price variation above the current NBB
(for offers) with no discretion to execute to the mid-point of the
NBBO.
    As explained below, Mid-Point Discretionary Orders would not be
eligible to execute against resting Discretionary Orders,\8\ including
contra-side Mid-Point Discretionary Orders. Mid-Point Discretionary
Orders would only be eligible to execute at the mid-point of the NBBO
against Mid-Point Match Orders \9\ and incoming liquidity-removing
orders when their limit price is equal to the mid-point of the NBBO.
Mid-Point Discretionary Orders in stocks priced at $1.00 or more would
only be executed in sub-penny increments when they execute at the mid-
point of the NBBO against contra-side Mid-Point Match Orders.
---------------------------------------------------------------------------

    \8\ See Exchange Rule 11.5(c)(13).
    \9\ Exchange Rule 11.5(c)(7).
---------------------------------------------------------------------------

    Mid-Point Discretionary Orders may include a limit price that would
specify the highest or lowest prices at which Mid-Point Discretionary
Orders to buy or sell would be eligible to be executed. For example, if
a Mid-Point Discretionary Order to buy is entered with a limit price
that is less than the prevailing mid-point of the NBBO it would have
discretion to buy only up to its limit price, not the mid-point of the
NBBO. A Mid-Point Discretionary Order to buy with a limit price that is
greater than the prevailing NBBO would have discretion to buy up to the
mid-point of the NBBO and not to its limit price. Absent a limit price
that is less than the prevailing mid-point of the NBBO, a Mid-Point
Discretionary Order would retain its discretion to execute at prices up
to and including the mid-point of the NBBO.\10\
---------------------------------------------------------------------------

    \10\ The Exchange notes that a Mid-Point Discretionary Order's
discretion to trade up to and including the mid-point of the NBBO
may be limited where the only available contra-side liquidity at the
mid-point is represented by Mid-Point Discretionary Orders, or Non-
Displayed Orders resting on the EDGX Book.
---------------------------------------------------------------------------

    As explained in more detail below, like other discretionary order
types, Exchange Rule 11.8(a)(2) would require that the discretionary
range of a Mid-Point Discretionary Order be given lower priority than
non-displayed limit orders and the reserve quantity of Reserve
Orders.\11\ In addition, Mid-Point Discretionary Orders would not be
eligible for routing pursuant to Exchange Rule 11.9(b)(2).
---------------------------------------------------------------------------

    \11\ Exchange Rule 11.5(c)(1).
---------------------------------------------------------------------------

    The Exchange also proposes to address how a Mid-Point Discretionary
Order would comply with the National Market System Plan, also known as
Limit Up/Limit Down (``LULD''), established pursuant to Rule 608 of the
Exchange Act, to address extraordinary market volatility (the ``LULD
Plan'').\12\ In sum, the LULD Plan sets forth procedures that provide
for market-wide LULD requirements that are designed to prevent trades
in individual NMS Stocks from occurring outside of specified price
bands. The price bands would consist of a Lower Price Band and an Upper
Price Band for each NMS Stock. Under the LULD Plan, the Exchange is
required to establish, maintain, and enforce written policies and
procedures reasonably designed to prevent the display of offers below
the

Lower Price Band and bids above the Upper Price Band for an NMS Stock.
Like the EDGA Mid-Point Discretionary Order, the proposed EDGX Mid-
Point Discretionary Orders will only execute at their displayed prices
and not within their discretionary ranges when: (i) The price of the
Upper Price Band equals or moves below an existing Protected Bid; or
(ii) the price of the Lower Price Band equals or moves above an
existing Protected Offer in accordance with Exchange Rule 11.9(a)(3).
Mid-Point Discretionary Orders will resume trading against other orders
in their discretionary range when the conditions in (i) or (ii) of the
preceding sentence no longer exist.\13\ For example, assume the NBBO is
$10.00 x $10.10 and the Price Bands are $9.00 x $10.10. A Mid-Point
Discretionary Order to buy is entered and is displayed at $10.00, the
NBB, with discretion to $10.05, the mid-point of the NBBO. The Price
Bands change to $9.00 x $9.95. The NBBO is updated to $9.95 x $10.10.
The displayed price of the Mid-Point Discretionary Order is re-priced
to $9.95, the new NBB, with no discretionary range, since the price of
the Upper Price Band equals the NBB.
---------------------------------------------------------------------------

    \12\ See Appendix A to Securities Exchange Act Release No. 67091
(May 31, 2012) 77 FR 33498 (June 6, 2012).
    \13\ See Securities Exchange Act Release No. 69002 (February 27,
2013), 78 FR 14394 (March 5, 2013) (SR-EDGA-2013-08) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Amend
EDGA Rules 1.5, 11.5, 11.8, 11.9 and 11.14 in Connection With the
Implementation of the National Market System Plan to Address
Extraordinary Market Volatility).
---------------------------------------------------------------------------

    Furthermore, to comply with the LULD Plan, a Mid-Point
Discretionary Order to buy would be re-priced to the Upper Price Band
and not the Protected Bid where the price of the Upper Price Band moves
below an existing Protected Bid. Likewise, a Mid-Point Discretionary
Order to sell would be re-priced to the Lower Price Band and not the
Protected Offer where the price of the Lower Price Band moves above an
existing Protected Offer. When the above conditions no longer exist,
Mid-Point Discretionary Orders will resume being displayed at and
pegged to the NBBO. For example, assume the NBBO is $10.00 x $10.10 and
the Price Bands are $9.00 x $10.10. A Mid-Point Discretionary Order to
buy is entered and is displayed at $10.00, the NBB, with discretion to
$10.05, the mid-point of the NBBO. The Price Bands change to $9.00 x
$9.99. The displayed price of the Mid-Point Discretionary Order is re-
priced to $9.99, the Upper Price Band, with no discretionary range,
since the price of the Upper Price Band moved below the NBB of $10.00.
The Price Bands then change to $9.00 x $10.10. The Mid-Point
Discretionary Order to buy would be displayed at $10.00, the NBB, with
discretion to $10.05, the mid-point of the NBBO.
    While the proposed EDGX Mid-Point Discretionary Order is based on
and would operate similarly to the EDGA Mid-Point Discretionary Order,
the proposed EDGX Mid-Point Discretionary Order would differ from the
EDGA Mid-Point Discretionary Order in four areas. The main reason for
these differences is based on the different fee structures on EDGA and
EDGX. EDGA maintains a taker-maker model where Members receive rebates
for removing liquidity and pay a fee for adding liquidity.\14\ EDGX
maintains a maker-taker model where Members pay a fee for removing
liquidity and receive a rebate for adding liquidity.\15\
---------------------------------------------------------------------------

    \14\ See EDGA Fee Schedule available at http://www.directedge.com/Trading/EDGAFeeSchedule.aspx.
    \15\ See EDGX Fee Schedule available at http://www.directedge.com/Trading/EDGXFeeSchedule.aspx.
---------------------------------------------------------------------------

    First, unlike the EDGA Mid-Point Discretionary Order, the proposed
EDGX Mid-Point Discretionary Order would not be eligible to execute
immediately upon entry in the System \16\ at its displayed price.\17\
Instead, the proposed EDGX Mid-Point Discretionary Order would be
eligible to execute at its displayed price only after it has been
posted to the EDGX Book.\18\ For example, assume the NBBO is $10.00 x
$10.01. A Discretionary Order to buy at $10.00 with discretion to
$10.01 is entered on the EDGX Book. A Mid-Point Discretionary Order to
sell with a limit price of $10.01 would not execute against the resting
Discretionary Order to buy that is displayed at $10.00 with discretion
to $10.01. Instead, the Mid-Point Discretionary Order to sell would be
posted to the EDGX Book and displayed at $10.01, the NBO, with no
discretionary range because it is at its limit price. A second
Discretionary Order to buy at $10.00 with discretion to $10.01 is
entered. The second Discretionary Order to buy is willing to act as a
liquidity remover and pay a fee. Therefore, similar to functionality on
other exchanges,\19\ the second Discretionary Order to buy would
execute against the Mid-Point Discretionary Order to sell at $10.01.
---------------------------------------------------------------------------

    \16\ Exchange Rule 1.5(cc) defines ``System'' as ``the
electronic communications and trading facility designated by the
Board through which securities orders of Users are consolidated for
ranking, execution and, when applicable, routing away.''
    \17\ The Exchange notes that the proposed Mid-Point
Discretionary Order would be permitted to execute at the mid-point
of the NBBO upon entry into the System.
    \18\ Exchange Rule 1.5(d) defines ``EDGX Book'' as the
``System's electronic file of orders.''
    \19\ See infra notes 20 thru 28.
---------------------------------------------------------------------------

    If the Exchange would allow for the execution of a Mid-Point
Discretionary Order at its displayed price immediately upon entry into
the System, the order would not receive a rebate and instead would be
subject to the applicable rates for removing liquidity from the EDGX
Book. Therefore, to avoid being charged a fee, the proposed EDGX Mid-
Point Discretionary Order would not be eligible to execute at its
displayed price immediately upon entry in the System. In contrast, on
EDGA, incoming Mid-Point Discretionary Orders may immediately execute
upon entry and will receive a rebate for doing so. The Exchange
believes that this approach is designed to accomplish the twin goals in
implementing this order type--increasing both displayed liquidity and
liquidity at the mid-point of the NBBO--by posting Mid-Point
Discretionary Orders at their displayed prices on the EDGX Book with
discretion to execute to and including the mid-point of the NBBO. The
Exchange does not believe that its proposal is unique in its
application of the Exchange's pricing model to the design of the
functionality. For example, under the New York Stock Exchange, LLC
(``NYSE'') Retail Liquidity Program, a Type 1 Retail Order, will
interact only with available contra-side Retail Price Improvement
(``RPI'') Orders and will not interact with, but instead will by-pass
other available contra-side interest, including hidden orders priced
better than RPI Orders, in the NYSE's systems.\20\ The Exchange
believes that, in order to provide the Retail Order a rebate, the NYSE
by-passes non-RPI Orders resting on the NYSE's system because those
resting orders are also expecting a rebate.\21\ Therefore, the NYSE
permits Type 1 Retail Orders to by-pass resting contra-side interest in
favor of the RPI Order.\22\
---------------------------------------------------------------------------

    \20\ See NYSE Rule 107C(k)(1).
    \21\ On NYSE, Retail Orders that remove liquidity receive a
rebate while RPI Orders would pay a fee. See NYSE Fee Schedule
available at https://usequities.nyx.com/markets/nyse-equities/trading-fees (last visited January 29, 2014).
    \22\ See also Securities Exchange Act Release No. 67347 (July 3,
2012), 77 FR 40673 (July 10, 2012) (SR-NYSE-2011-55) (Order
approving the NYSE's Retail Liquidity Program on a pilot basis).
---------------------------------------------------------------------------

    In addition, a Mid-Point Discretionary Order not executing at its
displayed price upon arrival is similar to post-only midpoint eligible
orders offered by other exchanges.\23\ Other exchanges also

permit otherwise marketable orders to post directly to that exchange
and execute against later arriving orders. For example, the NYSE
permits MPL-ALO Orders to not execute upon arrival even if
marketable.\24\ The NYSE always considers the MPL-ALO the liquidity
provider, and, therefore, it would never interact with a contra-side
MPL-ALO order.\25\ Similarly, NYSE Arca, Inc. (``NYSE Arca'') prohibits
an MPL-ALO Order from executing against an incoming MPL-ALO Order.\26\
In both cases, the MPL-ALO Order would execute against later arriving
contra-side mid-point liquidity ahead of the resting contra-side MPL-
ALO Order. In addition, on the Chicago Board Options Exchange,
Incorporated (``CBOE''), if a Silent Post-Mid Seeker Order ``is to
trade upon its arrival into the system (thereby `removing' liquidity),
it will not trade, but instead rest until another order comes in for it
to trade against.'' \27\ Finally, BATS Exchange, Inc. (``BATS'') allows
display-eligible Post Only orders to rest at prices that lock non-
displayed interest, making such non-displayed interest temporarily non-
executable and allowing the contra-side Post Only order to execute
against later arriving orders notwithstanding such non-displayed
interest.\28\
---------------------------------------------------------------------------

    \23\ See NYSE Rules 13(e) (providing that the NYSE's Mid-Point
Passive Liquidity (``MPL'') Order may include an ``Add Liquidity
Only'' (``ALO'') modifier which would prohibit the order from
executing upon arrival even if marketable). See Securities Exchange
Act Release No. 71330 (January 16, 2014), 79 FR 3895 (January 23,
2014) (SR-NYSE-2013-71) (Order Approving the MPL Order stating that
the proposed MPL Order could provide market participants with better
control of their execution costs). An MPL order with an ALO modifier
(``MPL-ALO order'') is always considered the liquidity providing
order, and, therefore, would never interact with a contra-side MPL-
ALO order. See Securities Exchange Act Release No. 71488 (February
5, 2014), 79 FR 8215 (February 11, 2014) (SR-NYSE-2014-07)
(providing that, ``[i]f triggered to trade, an MPL-ALO Order will be
eligible to trade with both arriving and resting contra-side
interest, but will not trade with a contra-side MPL-ALO Order'').
Executions would be allocated amongst the arriving and resting
contra-side interest in accordance with NYSE Rule 72. Id. Once
posted, the NYSE's MPL-ALO Order would be considered a ``liquidity
provider'' and be eligible to receive a rebate. See Liquidity
Indicator 2 in the NYSE Fee Schedule available at https://usequities.nyx.com/markets/nyse-equities/trading-fees (last visited
January 29, 2014). See the Nasdaq Stock Market LLC (``Nasdaq'') Rule
4751(f)(11) (Mid-Point Peg Post Only Order). Nasdaq's Mid-Point Peg
Post Only Order may also not execute upon arrival even if
marketable. See example 1 in http://www.nasdaqtrader.com/content/productsservices/trading/MPPO_factsheet.pdf (describing Nasdaq's
Mid-Point Peg Post Only Order functionality).
    \24\ See NYSE Rules 13(e) (providing that the NYSE's MPL Order
may include an ALO modifier which would prohibit the order from
executing upon arrival even if marketable). See Securities Exchange
Act Release No. 71330 (January 16, 2014), 79 FR 3895 (January 23,
2014) (SR-NYSE-2013-71) (Order Approving the MPL Order stating that
the proposed MPL Order could provide market participants with better
control of their execution costs).
    \25\ See Securities Exchange Act Release No. 71488 (February 5,
2014), 79 FR 8215 (February 11, 2014) (SR-NYSE-2014-07) (providing
that, ``[i]f triggered to trade, an MPL-ALO Order will be eligible
to trade with both arriving and resting contra-side interest, but
will not trade with a contra-side MPL-ALO Order''). Once posted, the
NYSE's MPL Order would be considered a ``liquidity provider'' and be
eligible to receive a rebate. See Liquidity Indicator 2 in the NYSE
Fee Schedule available at https://usequities.nyx.com/markets/nyse-equities/trading-fees (last visited January 29, 2014).
    \26\ See NYSE Arca Rules 7.31(h)(5) and (nn). NYSE Arca permits
a member to elect that a marketable MPL-ALO Order interact with a
resting MPL-ALO Order. See also Securities Exchange Act Release No.
67652 (August 14, 2012), 77 FR 50189 (August 20, 2012) (SR-NYSEArca-
2012-83). If both the resting interest and the incoming MPL-ALO
Order are designated to interact, the incoming MPL-ALO Order would
be considered the liquidity taker and subject to applicable fees.
Id.; see also Liquidity Indicator 2 in the NYSE Fee Schedule
available at https://usequities.nyx.com/markets/nyse-equities/trading-fees (last visited January 29, 2014).
    \27\ See CBOE Rule 51.8(g)(12); Securities Exchange Act Release
No. 67548 (July 31, 2012), 77 FR 46783 (August 6, 2012) (SR-CBOE-
2012-49). See also Nasdaq Rule 4751(f)(11) (Mid-Point Peg Post Only
Order). Nasdaq's Mid-Point Peg Post Only Order may also not execute
upon arrival even if marketable. See example 1 in http://www.nasdaqtrader.com/content/productsservices/trading/MPPO_factsheet.pdf (describing Nasdaq's Mid-Point Peg Post Only Order
functionality).
    \28\ See Securities Exchange Act Release No. 64475 (May 12,
2011), 76 FR 28830 (May 18, 2011) (Notice of Filing of Proposed Rule
Change by BATS Exchange, Inc. to Amend BATS Rule 11.9, Entitled
``Orders and Modifiers'' and BATS Rule 11.13, Entitled ``Order
Execution''); see also Securities Exchange Act Release No. 64754
(June 27, 2011), 76 FR 38712 (July 1, 2011) (Order Approving a
Proposed Rule Change to Amend BATS Rule 11.9, Entitled ``Orders and
Modifiers'' and BATS Rule 11.13, Entitled ``Order Execution'').
---------------------------------------------------------------------------

    Second, Mid-Point Discretionary Orders would also not be eligible
to execute against resting Discretionary Orders, including contra-side
Mid-Point Discretionary Orders. For example, assume the NBBO is $10.00
x $10.02. A Discretionary Order to buy at $10.00 with discretion to
$10.01 is entered on the EDGX Book. A Mid-Point Discretionary Order to
buy is also entered and displayed at $10.00, the NBB, with discretion
to $10.01, the mid-point of the NBBO. A Mid-Point Discretionary Order
to sell would not execute against the Discretionary Order to buy or the
Mid-Point Discretionary to buy at $10.01, the mid-point of the
NBBO.\29\ Instead, the Mid-Point Discretionary Order to sell would be
posted to the EDGX Book and displayed at $10.02, the NBO, with
discretion to execute to $10.01, the mid-point of the NBBO. The
Exchange is proposing these restrictions so that it may offer a low
cost pricing structure for the EDGX Mid-Point Discretionary Order. On
EDGA, a Mid-Point Discretionary Order may execute against resting
Discretionary Orders, including contra-side Mid-Point Discretionary
Orders, because both orders would pay a fee. However, on EDGX, if the
Exchange were to allow Mid-Point Discretionary Orders to execute
against each other, the provider of liquidity would receive a rebate
while the taker of liquidity would be charged no fee. Members electing
to use the proposed Mid-Point Discretionary Order would forego the
above described execution opportunities to receive the associated low
cost pricing structure. Members willing to pay a fee for broader
execution opportunities at the mid-point of the NBBO could instead
choose to utilize Mid-Point Match Orders.
---------------------------------------------------------------------------

    \29\ As discussed above, the proposed EDGX Mid-Point
Discretionary Order would not be eligible to execute immediately
upon entry in the System at its displayed price, but would be
permitted upon entry to execute at the mid-point of the NBBO. See
supra note 17.
---------------------------------------------------------------------------

    Third, Mid-Point Discretionary Orders would only be eligible to
execute at the mid-point of the NBBO against Mid-Point Match Orders and
incoming liquidity-removing orders when their limit price is equal to
the mid-point of the NBBO.\30\ Members utilizing these order types are
explicitly adding liquidity at the mid-point of the NBBO and, thereby,
provide the benefit of price improving liquidity to Users. Restricting
the orders against which a Mid-Point Discretionary Order may execute to
those orders that are designed to explicitly add liquidity at the mid-
point of the NBBO is a reasonable means by which to encourage Members
to add committed mid-point liquidity. In addition, these restrictions
also enable the Exchange to offer a low cost pricing structure for the
EDGX Mid-Point Discretionary Order because both Mid-Point Match Orders
and incoming liquidity-removing orders would be charged a fee, enabling
the Exchange to provide a rebate or no fee to the proposed Mid-Point
Discretionary Order.
---------------------------------------------------------------------------

    \30\ For a description of the proposed order interaction, see
infra, Example No. 2 under the heading ``Mid-Point Discretionary
Orders Entered with Limit Prices'' and the first example under the
heading ``Sub-Penny Executions''.
---------------------------------------------------------------------------

    Fourth, on EDGA, in the event a trading halt is declared by the
listing market, a resting Mid-Point Discretionary Orders would be
eligible for execution once the trading halt is lifted by the listing
market. Conversely, on EDGX, in the event a trading halt is declared by
the listing market, any Mid-Point Discretionary Orders resting on the
EDGX Book would be immediately cancelled. As described above, the
approach taken by EDGX is a result of its maker-taker fee structure and
serves to avoid a situation where Mid-Point Discretionary Order would
be assessed a take fee when the market re-opens. As discussed above in
regard to execution of Mid-Point Discretionary Orders upon entry into
the System, this approach is

also consistent with the treatment of a Mid-Point Discretionary Order
that contains a post only instruction at its displayed price.

Examples

    The following examples demonstrate how a Mid-Point Discretionary
Order would operate in various scenarios.
Mid-Point Discretionary Orders Entered Without Limit Prices
    Example No. 1. Assume the NBBO is $10.00 x $10.03, resulting in a
mid-point of $10.015. A Mid-Point Discretionary Order to buy 100 shares
is entered without a limit price. The Mid-Point Discretionary Order
would be displayed at $10.00, the NBB, with discretion to buy up to
$10.015, the mid-point of the NBBO.
     A contra-side market order or marketable limit order to
sell 100 shares at $10.00 would execute against the Mid-Point
Discretionary Order to buy at $10.00 for 100 shares.
     A contra-side limit order to sell 100 shares at $10.01
would execute against the Mid-Point Discretionary Order to buy at
$10.01 for 100 shares.
     A contra-side limit order to sell 100 shares at $10.02
would not execute against the Mid-Point Discretionary Order to buy
because the Mid-Point Discretionary Order had discretion to buy only up
to the mid-point of the NBBO of $10.015. The limit order to sell would
be displayed at $10.02, resulting in a new NBBO mid-point of $10.01.
    Example No. 2. Assume the NBBO is $10.00 x $10.03, resulting in a
mid-point of $10.015. A Mid-Point Discretionary Order to buy 100 shares
is entered without a limit price. The Mid-Point Discretionary Order
would be displayed at $10.00, the NBB, with discretion to buy up to
$10.015, the mid-point of the NBBO.\31\
---------------------------------------------------------------------------

    \31\ This example is designed to illustrate that the displayed
price of a Mid-Point Discretionary Order entered without a limit
price would continue to move in tandem with, and be displayed at,
changes in the NBB (for buy orders) and the NBO (for sell orders).
The Mid-Point Discretionary Order would receive a new time stamp
each time it is re-priced.
---------------------------------------------------------------------------

     Assume the NBBO changes to $10.01 x $10.06, resulting in a
new NBBO mid-point of $10.035. The displayed price of the Mid-Point
Discretionary Order would be adjusted to $10.01, the NBB, with
discretion to buy up to $10.035, the new NBBO mid-point.
     If the NBBO changes once again to $10.03 x $10.05
resulting in a new NBBO mid-point of $10.04, the displayed price of the
Mid-Point Discretionary Order would be adjusted to $10.03, the new NBB,
with discretion to buy up to $10.04, the new NBBO mid-point.
    Example No. 3. Assume the NBBO is $10.00 x $10.03, resulting in a
NBBO mid-point of $10.015. A Mid-Point Discretionary Order is entered
to buy 100 shares without a limit price. The Mid-Point Discretionary
Order would be displayed at $10.00, the NBB, with discretion to buy up
to $10.015, the mid-point of the NBBO. Assume further that the EDGX
Book contains two other displayed orders to buy 100 shares each at
$10.00, both with time priority over the Mid-Point Discretionary Order.
Assume further that there is a displayed resting order to buy at $9.99
on the EDGX Book, and no other market is publishing a bid at $10.00.
     A contra-side market order to sell 200 shares would
execute against the two buy orders with time priority over the Mid-
Point Discretionary Order at $10.00. The Mid-Point Discretionary Order
to buy would remain on the EDGX Book and be re-price at $9.99 because
it could not independently establish or maintain the NBB or NBO--
rather, its displayed price would be derived from the NBB and NBO.\32\
---------------------------------------------------------------------------

    \32\ This example assumes that no other market is displaying a
quote at the NBBO. A Mid-Point Discretionary Order that would
independently establish or maintain the NBBO would be cancelled back
to the Member.
---------------------------------------------------------------------------

     The Mid-Point Discretionary Order would be displayed at
$9.99 with discretion to trade up to $10.01 (assuming the NBO remained
at $10.03), and the resting buy order at $9.99 would maintain time
priority over the Mid-Point Discretionary Order.

Mid-Point Discretionary Orders Entered With Limit Prices

    The following examples demonstrate how a Mid-Point Discretionary
Order entered with a limit price would operate:
    Example No. 1. Assume the NBBO is $10.00 x $10.03, resulting in an
NBBO mid-point of $10.015. A Mid-Point Discretionary Order is entered
to buy 100 shares with a limit price of $10.03. The Mid-Point
Discretionary Order would be displayed at $10.00, the NBB, with
discretion to buy up to $10.015, the mid-point of the NBBO.
     A contra-side market order or marketable limit order to
sell 100 shares at $10.00 would execute against the Mid-Point
Discretionary Order to buy at $10.00 for 100 shares.
     A contra-side limit order to sell 100 shares at $10.01
would execute against the Mid-Point Discretionary Order to buy at
$10.01 for 100 shares.
     A contra-side limit order to sell 100 shares at $10.02
would not execute against the Mid-Point Discretionary Order to buy
because the Mid-Point Discretionary Order had discretion to buy only up
to the mid-point of the NBBO of $10.015. The limit order to sell would
be displayed at $10.02, resulting in a new NBBO mid-point of $10.01.
    Example No. 2. Assume the NBBO is $10.00 x $10.04, resulting in a
NBBO mid-point of $10.02. A Mid-Point Discretionary Order is entered to
buy 100 shares with a limit price of 10.03. The Mid-Point Discretionary
Order would be displayed at $10.00, the NBB, with discretion to buy up
to $10.02, the mid-point of the NBBO.
     A contra-side limit order to sell 100 shares at $10.02
would execute against the Mid-Point Discretionary Order to buy at the
NBBO mid-point of $10.02 for 100 shares.
     A contra-side limit order to sell 100 shares at $10.01
would execute against the Mid-Point Discretionary Order to buy at
$10.01 for 100 shares.
    Example No. 3. Assume the NBBO is $10.01 x $10.06, resulting in a
NBBO mid-point of $10.035. A Mid-Point Discretionary Order is entered
to buy 100 shares with a limit price of 10.03. The Mid-Point
Discretionary Order to buy would be displayed at $10.01, the NBB, with
discretion to buy up to $10.03, and not the NBBO mid-point of 10.035,
because the NBBO mid-point would be higher than the Mid-Point
Discretionary Order's limit price of $10.03.
     A contra-side limit order to sell 100 shares at $10.03
would execute against the Mid-Point Discretionary Order to buy at
$10.03.
     A contra-side limit order to sell 100 shares at $10.02
would execute against the Mid-Point Discretionary Order to buy at
$10.02.
    Example No. 4. Assume the NBBO is $10.03 x $10.05, resulting in a
NBBO mid-point of $10.04. A Mid-Point Discretionary Order is entered to
buy 100 shares with a limit price of 10.03. The displayed price of the
Mid-Point Discretionary Order to buy would be $10.03, its limit price
and the current NBB. Therefore, the Mid-Point Discretionary Order would
not have discretion to trade up to the NBBO mid-point of $10.04 because
that exceeds its limit price of $10.03.
     If the NBBO changed to $10.04 x $10.06, resulting in a new
NBBO mid-point of $10.05, the Mid-Point Discretionary Order to buy
would be posted to the EDGX Book at its limit price of $10.03 and be
displayed as a limit order with no discretion because the NBB and the
NBBO mid-point exceed its limit price of $10.03.

     However, if the NBBO again changed to $10.02 x $10.03,
then the Mid-Point Discretionary Order would again be displayed at
$10.02, the NBB, with discretion to trade up to $10.025, the new NBBO
mid-point.
    Example No. 5. Assume from Example No. 4 above that the NBBO
remains $10.04 x $10.06, with a NBBO mid-point of $10.05, and the Mid-
Point Discretionary Order to buy continues to be posted to the EDGX
Book and displayed at its limit price of $10.03. The EDGX Book contains
a displayed order to buy 100 shares at $10.04 and two separate
displayed orders to buy 100 shares each at $10.03 with time priority
over the Mid-Point Discretionary Order. Assume further that there is
also a displayed order to buy 100 shares at $10.02 on the EDGX Book,
and no other market is publishing a bid at either $10.03 or $10.04.
     A contra-side market order to sell 300 shares would
execute first against the buy order on the book at $10.04, and then
against the two buy orders on the book with time priority over the Mid-
Point Discretionary Order at $10.03. The Mid-Point Discretionary Order
to buy at $10.03 would remain on the EDGX Book. This execution would
result in a new NBBO of $10.03 x $10.06. However, the Mid-Point
Discretionary Order would be re-priced to $10.02 because it could not
independently establish or maintain an NBB or NBO--rather, its
displayed price would be derived from the then current NBB and NBO. The
Mid-Point Discretionary Order would be displayed at $10.02 with
discretion to trade up to $10.03, its limit price (assuming the NBO
remained at $10.06). The Mid-Point Discretionary Order would receive a
new time stamp with time priority behind the resting buy order at
$10.02.

Operation of the Mid-Point Discretionary Order during a Locked or
Crossed Market

    Example No. 1. Assume the NBBO is $10.03 x $10.03 resulting in a
locked market. The Exchange BBO is $10.00 x $10.03. A Mid-Point
Discretionary Order to buy with a limit price of $10.04 is entered.
Because the Mid-Point Discretionary Order would cross the NBO of
$10.03, it is displayed on the EDGX Book at $10.02, one minimum price
variation away from the NBO with no discretionary range. The Exchange
BBO is now adjusted to $10.02 x $10.03.
    Example No. 2. Assume the NBBO is $10.03 x $10.03 resulting in a
locked market. The Exchange BBO is $10.00 x $10.03. A Mid-Point
Discretionary Order to buy with a limit price of $10.02 is entered. The
Mid-Point Discretionary Order is posted to the EDGX Book at $10.02 with
no discretionary range. The Exchange BBO is updated to $10.02 x $10.03.
    Example No. 3. Assume the NBBO is $10.03 x $10.03 resulting in a
locked market. The Exchange BBO is $10.00 (400 shares) x $10.03 (100
shares).\33\ A Mid-Point Discretionary Order to sell with a limit price
of $10.02 is entered. The Mid-Point Discretionary Order joins the
Exchange NBO and is posted to the EDGX Book at $10.03 because it does
not independently establish the NBO and there are displayed sell orders
on the EDGX Book. The Exchange BBO is updated to $10.00 (400 shares) x
$10.03 (200 shares).
---------------------------------------------------------------------------

    \33\ This example assumes that the Exchange BBO equals the NBBO
and did not create a locked or crossed market.
---------------------------------------------------------------------------

    Example No. 4. Assume the NBBO is $10.04 x $10.03 resulting in a
crossed market. The Exchange BBO is $10.00 x $10.03. A Mid-Point
Discretionary Order to buy with a limit price of $10.04 is entered.
Because the Mid-Point Discretionary Order would cross the NBO of
$10.03, it displayed on the EDGX Book at $10.02, one minimum price
variation away from the NBO with no discretionary range. The Exchange
BBO is now adjusted to $10.02 x $10.03.
    Example No. 5. Assume the NBBO is $10.05 x $10.02 resulting in a
crossed market. The Exchange BBO is $10.00 x $10.02. A Mid-Point
Discretionary Order to buy with a limit price of $10.01 is entered. The
Mid-Point Discretionary Order is posted to the EDGX Book at $10.01
because it does not lock or cross the NBO. The Exchange BBO is updated
to $10.01 x $10.02.
    Example No. 6. Assume the NBBO is $10.05 x $10.03 resulting in a
crossed market. The Exchange BBO is $10.00 (400 shares) x $10.03 (100
shares).\34\ A Mid-Point Discretionary Order to sell with a limit price
of $10.03 is entered. The Mid-Point Discretionary Order joins the
Exchange NBO and is posted to the EDGX Book at $10.03 because it does
not independently establish the NBO and there are displayed sell orders
on the EDGX Book. The Exchange BBO is updated to $10.00 (400 shares) x
$10.03 (200 shares).
---------------------------------------------------------------------------

    \34\ Id.
---------------------------------------------------------------------------

Sub-Penny Executions

    Mid-Point Discretionary Orders in stocks priced at $1.00 or more
would only be executed in sub-penny increments when they execute at the
mid-point of the NBBO against contra-side Mid-Point Match Orders. Mid-
Point Discretionary Orders are not eligible to execute against contra-
side Mid-Point Discretionary Orders at the mid-point of the NBBO. Mid-
Point Discretionary Orders would execute against all other order types
solely in whole penny increments. Mid-Point Discretionary Orders would
not be displayed or ranked in sub-penny increments.
    Example No. 1. Assume the NBBO is $10.00 x $10.03, resulting in a
NBBO mid-point of $10.015. A Mid-Point Discretionary Order is entered
to buy 100 shares with a limit price of $10.02. The Mid-Point
Discretionary Order would be displayed at $10.00, the NBB, with
discretion to buy up to $10.015, the mid-point of the NBBO.
     A contra-side Mid-Point Match order sell 100 shares would
execute against the Mid-Point Discretionary Order to buy at the NBBO
mid-point of $10.015.
     Alternatively, a contra-side Mid-Point Discretionary Order
to sell 100 shares would be displayed at $10.03, the NBO, with
discretion to sell to $10.015, the mid-point of the NBBO. The Mid-Point
Discretionary Order to sell would not execute against the Mid-Point
Discretionary Order to buy at the NBBO mid-point of $10.015 because
Mid-Point Discretionary Orders are not eligible to execute against
contra-side Mid-Point Discretionary Orders at the mid-point of the
NBBO.
    Example No. 2. Assume the NBBO is $10.00 x $10.03, resulting in a
NBBO mid-point of $10.015. A Mid-Point Discretionary Order is entered
to buy 100 shares with a limit price of $10.02. The Mid-Point
Discretionary Order would be displayed at $10.00, the NBB, with
discretion to buy up to $10.015, the mid-point of the NBBO. Assume the
NBBO changes to $10.02 x $10.05, resulting in a new NBBO mid-point of
$10.035.
     The Mid-Point Discretionary Order to buy would be
displayed at $10.02, the NBB, with no discretion to trade above $10.02
to the NBBO mid-point of $10.035 because its limit price prevents
executions above $10.02. A contra-side Mid-Point Match Order to sell
100 shares is entered but would not execute against the Mid-Point
Discretionary Order to buy at $10.02, because the NBBO mid-point of
$10.035 would exceed its limit price. The Mid-Point Match Order to sell
would be entered on the EDGX Book at the mid-point of the NBBO.

Proposed Amendments to Rule 11.8(a)

    The Exchange proposes to amend Rule 11.8(a)(2)(D) to reflect the
priority that Mid-Point Discretionary Orders would have when they are
executed within their discretionary range. Rule 11.8(a)(2) states, in
sum, that the System

shall execute equally priced trading interest in time priority in the
following order: (i) Displayed size of limit orders; (ii) Mid-Point
Match Orders; (ii) non-displayed limit orders and the reserve quantity
of Reserve Orders; (iii) discretionary range of discretionary orders as
set forth in current Rule 11.5(c)(13); and (iv) Route Peg Orders as set
forth in current Rule 11.5(c)(17).
    When Mid-Point Discretionary Orders execute at their displayed
price, they would have the same priority as that of the displayed size
of limit orders, in accordance with Rule 11.8(a)(2)(A). However, when
they execute within their discretionary range, the Exchange proposes
that they would have the same priority as the discretionary range of
Discretionary Orders, as set forth in Rule 11.8(a)(2)(D). Therefore,
the Exchange is proposing to amend Rule 11.8(a)(2)(D) to account for
the priority of Mid-Point Discretionary Orders when they act within
their discretionary range.
    Example. Assume the NBBO is $10.00 x $10.04, resulting in a NBBO
mid-point of $10.02. A Mid-Point Discretionary Order is entered to buy
100 shares with a limit price of $10.02. A Non-Displayed order to buy
100 shares at $10.02 is subsequently entered. The Mid-Point
Discretionary Order would be displayed at $10.00, the NBB, with
discretion to buy up to $10.02, the NBBO mid-point.
     A contra-side limit order to sell 100 shares at $10.02
would execute against the Non-Displayed order, and not the Mid-Point
Discretionary Order, since Non-Displayed orders would have priority
over the discretionary range of Mid-Point Discretionary Orders in
accordance with Rule 11.8(a)(2).
    In addition, the Exchange proposes new Rule 11.8(a)(9) to address
the priority of orders when a Mid-Point Discretionary Order is posted
the EDGX Book. Where orders to buy (or sell) are made at the same
price, Exchange Rule 11.8(a)(2) generally requires, that the order
clearly established as the first entered into the System at that price
shall have precedence up to the number of shares of stock specified in
the order. As described above, the proposed EDGX Mid-Point
Discretionary Order would not be eligible to execute immediately upon
entry in the System at its displayed price.\35\ Instead, the proposed
EDGX Mid-Point Discretionary Order would be eligible to execute at its
displayed price only after it has been posted to the EDGX Book.
Therefore, the Exchange proposes to add subparagraph (9) to Rule
11.8(a) to clarify that, in accordance with proposed Rule 11.5(c)(14),
where a Mid-Point Discretionary Order does not execute against certain
marketable contra-side interest resting on the EDGX Book, it will,
notwithstanding Exchange Rule 11.8(a)(2) described above, be posted
directly to the EDGX Book and will be eligible to execute against later
arriving marketable contra-side orders.
---------------------------------------------------------------------------

    \35\ See supra notes 16 thru 19 and accompanying text. Mid-Point
Discretionary Orders would also not be eligible to execute against
resting Discretionary Orders, including contra-side Mid-Point
Discretionary Orders. See supra notes 29 and accompanying text; see
also infra notes 47 thru 48 and accompanying text.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act \36\ and further the objectives of Section
6(b)(5) of the Act,\37\ because they are designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, to
foster cooperation and coordination with persons engaged in
facilitating transactions in securities, and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78f(b).
    \37\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Proposed Mid-Point Discretionary Order, Rule 11.5(c)(14)

    The Exchange believes that the proposed Mid-Point Discretionary
Order is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it would provide Users \38\
with an order type that may result in the efficient execution of such
orders and provide additional flexibility and increased functionality
to the Exchange's System and its Users. Specifically, the Exchange
believes that Users may receive more efficient order executions by
providing them greater flexibility to be displayed at the NBBO with
discretion to execute up to and including the mid-point of the NBBO,
resulting in the potential benefit of price improvement. The proposed
Mid-Point Discretionary Order is designed to increase displayed
liquidity on the Exchange while also enhancing execution opportunities
at the mid-point of the NBBO. Promotion of displayed liquidity at the
NBBO enhances market quality for all Users and promotes competition
amongst market centers. Therefore, the Exchange believes that the
proposed Mid-Point Discretionary Order will promote just and equitable
principles of trade and perfect the mechanism of a free and open market
and a national market system because it is designed to: (i) Contribute
to the displayed liquidity on the Exchange at the NBBO while providing
additional opportunities for price improvement, which would, in turn,
benefit competition due to improvements to overall market quality; and
(ii) increase competition between exchanges offering similar
functionality.
---------------------------------------------------------------------------

    \38\ Exchange Rule 1.5(ee) defines ``User'' as ``any Member or
Sponsored Participant who is authorized to obtain access to the
System pursuant to [Exchange] Rule 11.3.''
---------------------------------------------------------------------------

    The proposed Mid-Point Discretionary Order is similar to and based
on the Mid-Point Discretionary Order on EDGA.\39\ While the proposed
EDGX Mid-Point Discretionary Order would function similarly to the
existing Mid-Point Discretionary Order on EDGA, the order types would
differ in four areas. The Exchange does not believe that these
differences are significant or presents unique issues with respect to
the consistency of the Mid-Point Discretionary Order with the
requirements of the Act. The Exchange believes these differences are
reasonable due to the different fee structures on EDGA and EDGX and are
designed to encourage explicitly priced liquidity at the mid-point of
the NBBO, while enabling the Exchange to offer a low cost pricing
structure for the order type. EDGA maintains a taker-maker model where
Members receive rebates for removing liquidity and pay a fee for adding
liquidity.\40\ EDGX maintains a maker-taker model where Members pay a
fee for removing liquidity and receive a rebate for adding
liquidity.\41\
---------------------------------------------------------------------------

    \39\ See EDGA Rule 11.5(c)(17). Securities Exchange Act Release
No. 67226 (June 20, 2012), 77 FR 38113 (June 26, 2013) (SR-EDGA-
2012-22) (Notice of Filing and Immediate Effectiveness Of Proposed
Rule Change to Adopt the Mid-Point Discretionary Order).
    \40\ See EDGA Fee Schedule available at http://www.directedge.com/Trading/EDGAFeeSchedule.aspx.
    \41\ See EDGX Fee Schedule available at http://www.directedge.com/Trading/EDGXFeeSchedule.aspx.
---------------------------------------------------------------------------

    First, unlike the EDGA Mid-Point Discretionary Order, the proposed
EDGX Mid-Point Discretionary Order would not be eligible to execute
immediately upon entry in the System at its displayed price. Instead,
the proposed EDGX Mid-Point Discretionary Order would be eligible to
execute at its displayed price only after it has been posted to the
EDGX Book. If the Exchange would allow for the execution of a Mid-Point
Discretionary Order at its displayed price immediately upon entry into
the System, the order would not receive a rebate and instead would be
subject to the applicable rates for removing liquidity from the EDGX

Book. Therefore, to avoid being charged a fee, the proposed EDGX Mid-
Point Discretionary Order would not be eligible to execute at its
displayed price immediately upon entry in the System.\42\ It would be
eligible to execute at its displayed price against incoming liquidity
removing orders because such orders are willing to accept the immediate
execution and not post to the EDGX Book. Orders resting on the EDGX
Book are willing to forgo an execution against the incoming Mid-Point
Discretionary Order at its displayed price here because the User is
expecting to receive a rebate once posted to the EDGX Book. The
Exchange believes that this approach is designed to accomplish the twin
goals in implementing this order type--increasing both displayed
liquidity and liquidity at the mid-point of the NBBO on the EDGX Book.
In addition, the Exchange believes this would optimize available
displayed liquidity for incoming orders and provide price improvement
at the mid-point of the NBBO. The Exchange does not believe that its
proposal is unique in its application of the Exchange's pricing model
to the design of the functionality.\43\
---------------------------------------------------------------------------

    \42\ In contrast, on EDGA, incoming Mid-Point Discretionary
Orders may immediately execute upon entry and will receive a rebate
for doing so.
    \43\ See supra notes 20 thru 28 and accompanying text.
---------------------------------------------------------------------------

    The Exchange does not believe that there is anything novel or
controversial about permitting otherwise marketable orders to post to
the EDGX Book and execute against later arriving orders in a fully
transparent manner that is consistent with pre-existing rules of other
exchanges described above.\44\ Permitting otherwise marketable orders
to post directly to that exchange is designed to provide Users with
better control over their execution costs. It allows Users to post
aggressively priced liquidity, as such Users have certainty as to the
fee or rebate they will receive from the Exchange if their order is
executed. Without such ability, the Exchange believes that certain
Users would simply post less aggressively priced liquidity, and prices
available for market participants, including retail investors, would
deteriorate. Members remain focused on their trading costs, and in a
pricing environment characterized by fees on one side of a trade being
used to fund rebates on the other side, it is entirely understandable
that some Members may wish to structure their trading activity in a
manner that is more likely to avoid a fee and earn a rebate.\45\
Therefore, the Exchange believes Mid-Point Discretionary Order not
executing at their displayed price upon arrival furthers the objectives
of Section 6(b)(5) of the Act,\46\ because it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system. The Exchange believes this to be the case even if, as described
above, a Mid-Point Discretionary Order will execute in certain
circumstances against a later arriving contra-side order when there is
non-displayed contra-side interest resting on the Exchange's order book
at that price. As discussed above, this order, once resting, is
expecting to receive a rebate for any execution.
---------------------------------------------------------------------------

    \44\ See supra notes 20 thru 28 and accompanying text.
    \45\ See e.g., Securities Exchange Act Release No. 69194 (March
20, 2013), 78 FR 18386 at 18391 n. 29 (March 26, 2013) (SR-Phlx-
2013-24) (Notice of Filing of Proposed Rule Change); see also
Securities Exchange Act Release No. 69452 (April 25, 2013), 78 FR
25512 at 25514 (May 1, 2013) (Order Approving SR-PHLX-2013-24)
(stating that the Midpoint Peg Post-Only Order ``is intended to
provide market participants with better control over their execution
costs and to provide a means to offer price improvement
opportunities'').
    \46\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Second, Mid-Point Discretionary Orders would also not be eligible
to execute against resting Discretionary Orders, including contra-side
Mid-Point Discretionary Orders. The Exchange believes precluding the
above executions promotes just and equitable principles of trade by
permitting the Exchange to offer a low cost pricing structure while
also offering an order type that provides Members the opportunity to
achieve price-improvement at prices up to and including the mid-point
of the NBBO. On EDGA, a Mid-Point Discretionary Order may execute
against resting Discretionary Orders, including contra-side Mid-Point
Discretionary Orders, because both orders would pay a fee. However, on
EDGX, if the Exchange were to allow Mid-Point Discretionary Orders to
execute against each other, the provider of liquidity would receive a
rebate while the taker of liquidity would be charged no fee. Members
willing to pay a fee for broader execution opportunities at the mid-
point of the NBBO could instead choose to utilize Mid-Point Match
Orders. Precluding Mid-Point Discretionary Orders from executing as
discussed above follows the precedent established by other order types,
such as Post Only Orders, in which Members choose to forgo some
execution opportunities to avoid paying a fee.\47\ Since the Exchange
does not offer a Post Only Mid-Point Match Order,\48\ Mid-Point
Discretionary Orders provide a means to interact with liquidity at the
mid-point of the NBBO, while having the added benefit of not incurring
a fee. In exchange, the User of a Mid-Point Discretionary Order
foregoes certain execution opportunities and therefore incurs risk of
not receiving an execution. The above restriction would provide a Mid-
Point Discretionary Order the opportunity to become a liquidity
provider and receive a rebate. Furthermore, the Exchange believes that
this approach is consistent with the Exchange's belief that Mid-Point
Discretionary Orders would be utilized primarily by Members seeking
access to liquidity at the mid-point of the NBBO while seeking to not
be charged a fee. The proposed Mid-Point Discretionary Order is
designed to provide Members with better control over their execution
costs and with a means to offer price improvement opportunities. As
stated above, Members remain focused on their trading costs and may
wish to structure their trading activity in a manner that is more
likely to control those costs. Other Members may prefer execution
certainty and are less cost-sensitive, and would thus be less likely to
use the Mid-Point Discretionary Order. Based on the foregoing, the
Exchange believes precluding Mid-Point Discretionary Orders from
executing against each other is designed to promote just and equitable
principles of trade because it would enable Members to achieve
potential price improvement and a low cost fee structure by using the
proposed Mid-Point Discretionary Order.
---------------------------------------------------------------------------

    \47\ See supra notes 20 thru 28 and accompanying text. A ``Post
Only Order'' is precluded from executing against orders resting on
the EDGX Book upon entry in the System and receives a rebate for
adding liquidity. See Exchange Rule 11.5(c)(5); see also, EDGX Fee
Schedule available at http://www.directedge.com/Trading/EDGXFeeSchedule.aspx. NYSE Arca permits members to designate a limit
order as ``No Mid-Point Execution'', so that the limit order will
ignore mid-point priced orders. NYSE Arca Rule 7.31(h)(5).
    \48\ For securities priced at or above $1.00, Mid-Point Match
Orders incur a fee regardless of whether they add or remove
liquidity at the mid-point of the NBBO. See Flags MM and MT on the
EDGX Fee Schedule available at http://www.directedge.com/Trading/EDGXFeeSchedule.aspx.
---------------------------------------------------------------------------

    Third, the Exchange believes that limiting the circumstance within
which a Mid-Point Discretionary Order may execute against orders at the
mid-point of the NBBO is designed to promote just and equitable
principles of trade by incentivizing Members to submit orders that
explicitly contribute to liquidity at the mid-point of the NBBO while
also enabling the Exchange to provide a low cost pricing structure for
the order type.

The proposed Mid-Point Discretionary Order would only be eligible to
execute at the mid-point of the NBBO against contra-side Mid-Point
Match Orders and incoming liquidity-removing orders when their limit
price equals the mid-point of the NBBO. Members utilizing these order
types are explicitly adding liquidity at the mid-point of the NBBO and,
thereby, provide the benefit of price improving liquidity to Users and
their incoming orders. Restricting the orders against which a Mid-Point
Discretionary Order may execute to those orders that are designed to
explicitly add liquidity at the mid-point of the NBBO is a reasonable
means by which to encourage Members to add committed mid-point
liquidity. The Exchange believes that encouraging orders that
explicitly add liquidity at the mid-point of the NBBO, rather than by
happenstance, would enhance price improvement opportunities on the
Exchange by seeking to increase the overall liquidity on the Exchange
at the mid-point of the NBBO. The Exchange believes restricting the
orders against which the proposed Mid-Point Discretionary Order may
execute at the mid-point of the NBBO to Mid-Point Match Orders promotes
just and equitable principles of trade because it is designed to
encourage the use of Mid-Point Match Orders, motivating Members seeking
price improvement to direct their orders to EDGX because they would
have a heightened expectation of liquidity at the midpoint of the NBBO.
In addition, these restrictions also enable the Exchange to offer a low
cost pricing structure for the EDGX Mid-Point Discretionary Order
because both Mid-Point Match Orders and incoming liquidity-removing
orders would be charged a fee, enabling the Exchange to provide a
rebate or no fee to the proposed Mid-Point Discretionary Order.
    Fourth, on EDGA, in the event a trading halt is declared by the
listing market, a resting Mid-Point Discretionary Orders would be
eligible for execution once the trading halt is lifted by the listing
market. Conversely, on EDGX, in the event a trading halt is declared by
the listing market, any Mid-Point Discretionary Orders resting on the
EDGX Book would be immediately cancelled. As described above, the
approach taken by EDGX is a result of its maker-taker fee structure and
serves to avoid a situation where Mid-Point Discretionary Orders would
be assessed a take fee when the market re-opens. As discussed above in
regard to execution of Mid-Point Discretionary Orders upon entry into
the System, this approach is also consistent with the treatment of a
Mid-Point Discretionary Order as containing a post only instruction at
its displayed price.
    The Mid-Point Discretionary Order would also be similar to the
Exchange's existing Pegged Order \49\ and Mid-Point Match Order
because, like these order types, a Mid-Point Discretionary Order would
receive a new time stamp each time it was automatically adjusted, and
it would not be eligible for routing pursuant to Rule 11.9(b)(2). Like
a Pegged Order, a Mid-Point Discretionary Order's displayed price would
be pegged to and automatically adjusted in response to changes to the
NBB or NBO. Also, like a Pegged Order, if the proposed Mid-Point
Discretionary Order displayed on the Exchange would lock the market,
the price of the order will be automatically adjusted by the System to
one minimum price variation below the current NBO (for bids) or to one
minimum price variation above the current NBB (for offers). In
addition, the Mid-Point Discretionary Order will also be similar to the
Exchange's Mid-Point Match Order, because both would be eligible to
receive sub-penny executions at the mid-point of the NBBO. However,
unlike the Mid-Point Match Order, the Mid-Point Discretionary Order
includes a displayed component, which would provide the added benefit
of transparency. The proposed Mid-Point Discretionary Order would also
be similar to the Exchange's existing Discretionary Order in that it
would include a displayed order at a specified price (an objectively
determined price based on the prevailing NBB or NBO) and a non-
displayed order at a specified price (an objectively determined price
based on the mid-point of the NBBO), subject to any limits the User
attaches the Mid-Point Discretionary Order. The Exchange believes that
this proposed order type would benefit its Users by offering greater
flexibility to display liquidity at the NBBO with discretion generally
to execute to the NBBO mid-point, resulting in additional opportunities
for price improvement for contra-side orders.
---------------------------------------------------------------------------

    \49\ Exchange Rule 11.5(c)(6).
---------------------------------------------------------------------------

    The Exchange further believes that the proposed Mid-Point
Discretionary Order is designed to remove impediments to and perfect
the mechanism of a free and open market and a national market system
because it is based on and would enable the Exchange to offer an order
type that would compete with similar order types on other exchanges.
For example, the Mid-Point Discretionary Order is similar to NYSE
Arca's Pegged Order \50\ and Discretionary Order.\51\ NYSE Arca's
Pegged Order is defined as a ``limit order to buy or sell a stated
amount of a security at a displayed price set to track the current bid
or ask of the NBBO in an amount specified by the User. . . . A Pegged
Order may be designated as a . . . Discretionary Order.'' NYSE Arca
defines a Discretionary Order to be ``[a]n order to buy or sell a
stated amount of a security at a specified, undisplayed price (the
`discretionary price'), in addition to at a specified, displayed price
(`displayed price').'' The Mid-Point Discretionary Order is similar to
Arca's Pegged Order when it is designated as a Discretionary Order
insofar as the displayed components of both are designed to track the
prevailing NBB and NBO. While the undisplayed component of the Mid-
Point Discretionary Order presents a variation on the undisplayed
component of Arca's order type, insofar as the former sets a more
specific parameter on the discretionary aspect of the order (i.e., to
execute to the mid-point of the NBBO), the Exchange does not believe
that such variation presents unique issues with respect to the
consistency of the Mid-Point Discretionary Order with the requirements
of the Act.
---------------------------------------------------------------------------

    \50\ NYSE Arca Rule 7.31(cc).
    \51\ NYSE Arca Rule 7.31(h)(2)
---------------------------------------------------------------------------

    The proposed Mid-Point Discretionary Order is also not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers because the proposed Mid-Point Discretionary Order would be
available to all Members on a uniform basis.

Proposed Amendment to Rule 11.8(a)

    The Exchange also believes its proposal to amend Rule 11.8(a)(2) to
reflect the priority that Mid-Point Discretionary Orders is designed to
promote just and equitable principles of trade. Rule 11.8(a)(2) states,
in sum, that the System shall execute equally priced trading interest
in time priority in the following order: (i) Displayed size of limit
orders; (ii) Mid-Point Match Orders; (ii) non-displayed limit orders
and the reserve quantity of Reserve Orders; (iii) discretionary range
of Discretionary Orders as set forth in current Rule 11.5(c)(13); and
(iv) Route Peg Orders as set forth in current Rule 11.5(c)(17). Under
the proposal, when Mid-Point Discretionary Orders execute at their
displayed price, they would have the same priority as that of the
displayed size of limit orders, in accordance with Rule 11.8(a)(2)(A).
However, when they execute within their discretionary range, the
Exchange

proposes that they maintain priority behind Mid-Point Match Orders but
maintain the same priority as the discretionary range of Discretionary
Orders. The Exchange believes the proposed priority for the
discretionary range of Mid-Point Discretionary Orders is consistent
with the Act because it continues to provide priority to displayed
orders on the Exchange and to orders that are designed to provide
liquidity at a set price level, such as the mid-point of the NBBO or
the limit price of a Reserve Order. Lastly, the Exchange notes that the
proposed priority for the discretionary range or Mid-Point
Discretionary Orders on EDGX is identical to the priority for the
discretionary range of Mid-Point Discretionary Orders on EDGA.\52\
---------------------------------------------------------------------------

    \52\ See EDGA Rule 11.8(a)(2). See also BATS Rule 11.12(a)(2)
(placing the discretionary range of discretionary order last in
priority behind the displayed size of limit order, non-displayed
limit orders, pegged orders, mid-point peg orders and the reserve
size of orders); Securities Exchange Act Release No. 67226 (June 20,
2012), 77 FR 38113 (June 26, 2012) (SR-EDGA-2012-22) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Adopt
the Mid-Point Discretionary Order).
---------------------------------------------------------------------------

    The Exchange also believes it is reasonable and appropriate that
the displayed price and discretionary range of a Mid-Point
Discretionary Order maintain the same time stamp, even when the
displayed price is unchanged but the discretionary range changed due to
a new mid-point of the NBBO being established. It is well founded that
the price priority of a discretionary order is based on its displayed
price and not its discretionary range.\53\ Should the discretionary
range widen or decrease as a result of a new mid-point of the NBBO
being established, the time stamp and priority of the displayed price
would remain unchanged so long as the NBBO that the order is pegged to
did not change.
---------------------------------------------------------------------------

    \53\ NYSE Arca permits Pegged Orders to also be designated as
Discretionary Orders. See NYSE Arca Rule 7.31(cc) and 7.31(h)(2). In
such case, Discretionary Orders are ranked based on their displayed
price, not discretionary range, and continue to be ranked at their
displayed price when the discretionary portion of the order is
decremented. See NYSE Arca Rule 7.36(1)(C).
---------------------------------------------------------------------------

    In addition, the Exchange believes proposed subparagraph (9) to
Rule 11.8(a) furthers the objectives of Section 6(b)(5) of the Act,\54\
because it is designed to promote just and equitable principles of
trade, to remove impediments to and perfect the mechanism of a free and
open market and a national market system. The Exchange believes that
permitting otherwise marketable orders to post directly to the EDGX
Book is reasonable because it is designed to provide Users with better
control over their execution costs. Once posted to the EDGX Book, the
proposed EDGX Mid-Point Discretionary Order would receive a rebate if
executed at its displayed price. This allows Users to post aggressively
priced liquidity by providing certainty as to the fee or rebate they
will receive from the Exchange if their order is executed. In addition,
as stated above, the Exchange does not believe that there is anything
novel or controversial about permitting otherwise marketable orders to
post to the EDGX Book and execute against later arriving orders in a
fully transparent manner that is consistent with pre-existing rules of
other exchanges.\55\
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78f(b)(5).
    \55\ See supra notes 42 thru 48 and accompanying text.
---------------------------------------------------------------------------

    Lastly, the Exchange believes it is reasonable for a Mid-Point
Discretionary Order to retain its time stamp and priority in relation
to other Discretionary Orders when the discretionary range widens or
decreases in response to a new mid-point of the NBBO being established.
A Mid-Point Discretionary Order's discretionary range is capped by the
mid-point of the NBBO, which is an objectively determined price that
the User cannot independently establish. As stated above, no price
priority is afforded to orders based on their discretionary range.
Therefore, a Mid-Point Discretionary Order's discretionary range would
not receive a new time stamp when the discretionary range widens or
decreases in response to a new mid-point of the NBBO being established;
nor would the order's priority be changed in relation to other
Discretionary Orders on the EDGX Book.

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

    The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change
would increase intermarket competition among the exchanges because the
Mid-Point Discretionary Order will directly compete with a similar
order types offered by other exchanges.\56\ The Exchange believes that
Users may receive more efficient order executions by providing them
greater flexibility to be displayed at the NBBO with discretion to
execute to the mid-point of the NBBO, resulting in the potential
benefit of price improvement. Promotion of displayed liquidity at the
NBBO enhances market quality for all market participants and promotes
competition amongst market enters. The Exchange believes that the
proposed Mid-Point Discretionary Order will contribute to the displayed
liquidity on the Exchange, which would, in turn, benefit competition
due to improvements to the overall market quality of the Exchange. The
proposed rule change would not burden intramarket competition because
the Mid-Point Discretionary Order would be available to all Members on
a uniform basis.
---------------------------------------------------------------------------

    \56\ See NYSE Arca Rules 7.31(cc), 7.31(h)(2), 7.31(h)(5), and
7.31(nn), Nasdaq Rules 4751(f)(4) and 4751(11) [sic], BATS Rule
11.9(c)(8), NYSE Rule 13, and CBOE Rule 51.8(g)(12).
---------------------------------------------------------------------------

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 its Members or other interested parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

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. In particular, the Commission seeks
comment on the following:
     Would the Mid-Point Discretionary Order create
opportunities for queue-jumping strategies by executing against later-
arriving orders rather than against identically-priced orders already
resting on the order book?
     Is it consistent with fair and orderly markets to prevent
Mid-Point Discretionary Orders from executing against contra-side
orders with prices that are within the net economic range (limit price
with fee/rebate) specified in such orders?

     Would leaving Mid-Point Discretionary Orders resting on
the order book even in the presence of contra-side orders with prices
that are within the net economic range (limit price with fee/rebate)
specified in the Mid-Point Discretionary Order add unnecessary
complexity to the Exchange's priority rules and the equity markets
generally?
    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_ADDRESS>Please include
File Number SR-EDGX-2014-05 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-EDGX-2014-05. 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 20549-1090, 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 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-2014-05, and should be submitted on or before April 15, 2014.
---------------------------------------------------------------------------

    \57\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\57\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-06461 Filed 3-24-14; 8:45 am]
BILLING CODE 8011-01-P