[Federal Register Volume 88, Number 198 (Monday, October 16, 2023)]
[Notices]
[Page 71346]
[FR Doc No: 2023-22700]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2088-068]

South Feather Water and Power Agency; Notice of Intent To Prepare
a Supplemental Environmental Impact Statement

    On March 26, 2007, South Feather Water and Power Agency (South
Feather) filed an application for a new license for the existing South
Feather Power Project FERC No. 2088. The project is located on the
South Fork Feather River, Lost Creek, and Slate Creek in Butte, Yuba,
and Plumas Counties, California and occupies 1,977.12 acres of federal
land administered by Plumas National Forest and 10.57 acres of federal
land administered by the U.S. Bureau of Land Management. The project is
a water supply and power generating project consisting of four
hydroelectric developments: Sly Creek, Woodleaf, Forbestown, and Kelly
Ridge, which combined provide 117.3-megawatts of generating capacity
and an average of 498,972 megawatt-hours of electricity annually.
    On June 4, 2009, the Federal Energy Regulatory Commission
(Commission) issued a final Environmental Impact Statement (EIS) for
the project. Subsequently, South Feather entered into a Settlement
Agreement with the California Department of Water Resources and the
State Water Contractors, Incorporated, which modifies the proposed
operation of the project's Kelly Ridge Powerhouse.\1\ Additionally, the
California State Water Resources Control Board (Water Board) filed a
water quality certification for the project on November 30, 2018; \2\
South Feather filed an amendment to its license application on December
21, 2021, in which it proposes additional measures developed in
consultation with the U.S. Fish and Wildlife Service (FWS) to protect
the federally endangered Sierra Nevada yellow-legged frog; and the
Forest Service filed revised final conditions under section 4(e) of the
FPA on October 14, 2022.
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    \1\ On December 13, 2018, South Feather filed the Settlement
Agreement with the Commission.
    \2\ On June 28, 2020, the Commission determined that the Water
Board waived its authority to issue a water quality certification
for the project; therefore, the certification conditions are not
considered mandatory under section 401 and the conditions are now
considered recommendations under section 10(a) of the Federal Power
Act (FPA).
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    To evaluate these filings made subsequent to the issuance of the
final EIS as well as newly listed species under the Endangered Species
Act, Commission staff intends to prepare a draft and final supplemental
EIS in accordance with the National Environmental Policy Act. The
supplemental EIS will describe and evaluate the effects of the proposed
action and alternatives. For the resource areas not affected by any new
and revised measures or new environmental information, the supplemental
EIS will either include, or incorporate by reference, analyses from the
final EIS.
    With this notice, we are reinitiating informal consultation with
the FWS under section 7 of the ESA and the joint agency regulations
thereunder at 50 CFR part 402.
    The draft supplemental EIS will be sent to all persons and entities
on the Commission's service and mailing lists for the South Feather
Power Project. Recipients will then have 60 days to review the draft
supplemental EIS and file written comments with the Commission. All
comments filed with the Commission on the final supplemental EIS will
be considered in the Order taking final action on the license
application. The application will be processed according to the
following schedule. Revisions to the schedule may be made as
appropriate.

------------------------------------------------------------------------
                 Milestone                           Target date
------------------------------------------------------------------------
Draft Supplemental EIS issued.............  October 2023.
Comments due on Draft Supplemental EIS....  December 2023.
Final Supplemental EIS issued.............  April 2024.
------------------------------------------------------------------------

    This notice informs all interested individuals, organizations,
tribes, and agencies with environmental expertise and concerns, that:
(1) the Commission staff has decided to prepare a supplemental EIS
addressing the settlement and amendment application; and (2) the
comments, recommendations, and terms and conditions already on file
with the Commission on the application will be taken into account in
the supplemental EIS.
    Any questions regarding this notice may be directed to Quinn
Emmering, the Commission's coordinator for the relicensing of the
project, at<PHONE_NUMBER> or at [email protected].

    Dated: October 3, 2023.
Kimberly D. Bose,
Secretary.
[FR Doc. 2023-22700 Filed 10-13-23; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 80, Number 209 (Thursday, October 29, 2015)]
[Notices]
[Pages 66600-66603]
[FR Doc No: 2015-27519]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76249; File No. SR-CHX-2015-06]

Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend the Fee Schedule To Adopt CHX SNAP Execution Fees

October 23, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on October 19, 2015, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') 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 Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    CHX proposes to amend its Schedule of Fees and Assessments (the
``Fee Schedule'') to adopt CHX SNAP execution fees. The text of this
proposed rule change is available on the Exchange's Web site at
(www.chx.com) and in 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 CHX included statements
concerning the purpose of and basis for the proposed rule changes 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 CHX 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 adopt and amend fees for CHX SNAP
(``SNAP''). On October 6, 2015, the SEC approved a proposed rule change
to adopt SNAP, an intra-day, sub-second and on-demand auction
service.\3\ A SNAP Cycle \4\ is comprised of the following five stages:
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    \3\ See Securities Exchange Act Release No. 76087 (October 6,
2015), 80 FR 61540 (October 13, 2015); see also Securities Exchange
Act Release No. 75346 (July 1, 2015), 80 FR 39172 (July 8, 2015)
(SR-CHX-2015-03). The approved rule change is not yet operative and
will become operative with two weeks' notice by the Exchange to its
Participants.
    \4\ See supra note 3; see also CHX Article 18, Rule 1(b).
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     Stage one--Initiating the SNAP Cycle;
     Stage two--SNAP Order Acceptance Period;
     Stage three--Pricing and Satisfaction Period;
     Stage four--Order Matching Period; and
     Stage five--Transition to the Open Trading State.\5\
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    \5\ See supra note 3; see also CHX Article 1, Rule 1(qq).
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    In sum, SNAP Cycles will never be scheduled by the Exchange and
will always be driven by market demand for bulk trading in a subject
security. The key features of a SNAP Cycle are as follows: \6\
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    \6\ A complete description of SNAP may be found in the Approval
Order and associated rule filing. See supra note 3.
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     The entire SNAP Cycle is designed to be completed in less
than one second.
     SNAP Cycles could occur numerous times in a subject
security during the regular trading session only.\7\
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    \7\ CHX Article 20, Rule 1(b) provides that the ``regular
trading session--shall begin at 8:30 a.m. and shall end at 3:00 p.m.
each day for all securities.'' All times are in central time, unless
noted otherwise.

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     Order cancellations would be prohibited during a SNAP
Cycle.
     Only limit orders marked Start SNAP \8\ that meet minimum
size, price and time of receipt requirements could initiate a SNAP
Cycle.
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    \8\ See supra note 3; CHX Article 1, Rule 2(h)(1).
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    [cir] During the stage one Initiating the SNAP Cycle, automated
trading in the subject security on the Exchange would be suspended and
remain suspended for the duration of the SNAP Cycle; provided, however,
automated trading in the subject security may continue to occur
simultaneously elsewhere in the national market system.
     During the stage two SNAP Order Acceptance Period, the
Exchange will transition precedent SNAP Eligible Orders \9\ to the SNAP
CHX book and accept new SNAP Eligible Orders for a randomized time
period for inclusion on the SNAP CHX book.\10\ During the stage three
Pricing and Satisfaction Period, the Exchange will attempt to ascertain
a single auction price (i.e., ``SNAP Price'') \11\ from SNAP Eligible
Orders resting on the SNAP CHX book.
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    \9\ See supra note 3; see also CHX Article 1, Rule 1(ss).
    \10\ See supra note 3; see also CHX Article 18, Rule 1(b)(2);
see also CHX Article 20, Rule 8(b)(3).
    \11\ See supra note 3; see also CHX Article 1, Rule 1(rr).
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    [cir] If the SNAP Price is determined to be at a price that would
require orders to be routed away, the Exchange would route away SNAP
Eligible Orders resting on the SNAP CHX book.\12\ Immediately after the
necessary orders are routed away, the SNAP Cycle would enter the
Satisfaction Period, during which time the Exchange would delay
proceeding to the stage four Order Matching Period for a period of time
not to exceed 200 milliseconds to allow for confirmations of routed
orders to be received from away markets.
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    \12\ See supra note 3; see also CHX Article 19, Rule 3(a)(4) and
(5).
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    [cir] If the SNAP Price does not require orders to be routed away,
the SNAP Cycle would immediately proceed to the stage four Order
Matching Period.
     During the stage four Order Matching Period, SNAP Eligible
Orders on the SNAP CHX book would execute at the SNAP Price within the
Matching System.\13\
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    \13\ See supra note 3; see also CHX Article 18, Rule 1(b)(4).
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     During the stage five Transition to the Open Trading
State,\14\ unexecuted SNAP Eligible Orders, as well as other orders and
cancel messages that have been queued during the SNAP Cycle, would be
transitioned to the CHX book for automated trading.\15\ During the
transition, orders may, among other things, be executed within the
Matching System or be routed away in a manner consistent with how
orders are currently executed and routed during automated trading.\16\
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    \14\ See supra note 3; see also CHX Article 1, Rule 1(qq).
    \15\ See supra note 3; see also CHX Article 18, Rule 1(b)(5).
    \16\ See CHX Article 19, Rule 3(a)(1)-(3); see also CHX Article
20, Rule 8(e)(1).
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    As such, during a SNAP Cycle, orders may execute within the
Matching System during either the stage four Order Matching Period
(``stage four executions'') or the stage five Transition to the Open
Trading State (``stage five executions''), whereas orders may be routed
away during either the stage three Pricing and Satisfaction Period or
the stage five Transition to the Open Trading State.\17\
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    \17\ See CHX Article 19, Rule 3(a)(1)-(3).
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    The Exchange now proposes the following SNAP execution fees:
     All away executions resulting from orders routed away
during a SNAP Cycle shall be assessed the current CHX Routing Services
fee, pursuant to Section E.6 of the Fee Schedule, without amendment.
     Stage four executions within the Matching System shall be
assessed new fees, pursuant to proposed Section E.9.\18\
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    \18\ The Exchange will continue to assess fees related to
Section 31 of the Act for all Matching System executions, pursuant
to Section E.5 of the Fee Schedule.
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     Stage five executions within the Matching System shall be
assessed the current CHX fees and credits pursuant to Sections E.1-4,
without amendment.\19\
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    \19\ Id.
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    Proposed Section E.9 outlines these proposed SNAP execution fees,
as discussed below.
    In order to incentivize Participants to initiate and participate in
SNAP Cycles, the Exchange proposes to assess no fee for stage four
executions.\20\ However, the Exchange proposes to adopt a fee structure
for stage four executions so that market participants would be notified
as to how the Exchange would charge fees for stage four executions if
it decides to assess such fees in the future.\21\ To this end, proposed
Section E.9(a) provides as follows:
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    \20\ The Exchange would continue to assess the CHX Section 31
fees, pursuant to Section E.5 of the Fee Schedule.
    \21\ Any change to proposed Section E.9 of the Fee Schedule
would be effected through a proposed rule filing, pursuant to Rule
19b-4 under the Act.

Stage four executions. For all executions within the Matching System
during a stage four Order Matching Period, as described under
Article 18, Rule 1(b)(4), the Exchange shall charge a fee for each
buy order per share executed and a fee for each sell order per share
executed, regardless of the original size of the orders, depending
on the single SNAP Price, as defined under Article 1, Rule 1(rr), at
which the orders executed relative to the National Best Bid and
Offer (``NBBO'') at the time the SNAP Price was calculated. Only one
of the following rows shall apply per SNAP Cycle.\22\

------------------------------------------------------------------------
             SNAP Price                  Buy  order        Sell order
------------------------------------------------------------------------
1. SNAP Price < NBB................  No Fee...........  No Fee.
2. SNAP Price = NBB................  No Fee...........  No Fee.
3. NBB < SNAP Price < NBO..........  No Fee...........  No Fee.
4. SNAP Price = NBO................  No Fee...........  No Fee.
5. SNAP Price > NBO................  No Fee...........  No Fee.
6. SNAP Price = Locked NBBO........  No Fee...........  No Fee.
------------------------------------------------------------------------

    The following examples illustrate how the proposed Section E.9(a)
fee would be applied:
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    \22\ Pursuant to CHX Article 18, Rule 1(b)(2)(E), a SNAP Cycle
would only proceed to the stage three Pricing and Satisfaction
Period if the market snapshot taken to establish the SNAP Price
shows that a two-sided NBBO exists and the CHX Routing Services are
available. In calculating the NBBO for this purpose, the Exchange
would utilize its current CHX NBBO calculation protocol to ascertain
the first uncrossed NBBO. See supra note 3; see also paragraph
.01(d) of CHX Article 20, Rule 5. Thus, the NBBO utilized to
establish the SNAP Price may be uncrossed or locked, but never
crossed.
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     Example 1. Assume that stage four executions occurred at a
SNAP Price of $50.00/share and the relevant NBBO was 50.01 x 50.03.
Under this Example 1, since the SNAP Price is less than the NBB, the
Exchange would charge fees to all buy and sell orders per share
executed, pursuant to proposed Section E.9(a)(1).
     Example 2. Assume the same as Example 1, except that the
SNAP Price was $50.01/share. Under this Example 2, since the SNAP Price
is equal to the NBB, the Exchange would charge fees to all buy and sell
orders per share executed, pursuant to proposed Section E.9(a)(2)
     Example 3. Assume the same as Example 1, except that the
SNAP Price was $50.02. Under this Example 3, since the SNAP Price is in
between the NBBO, the Exchange would charge fees to all buy and sell
orders per share executed, pursuant to proposed Section E.9(a)(3).
     Example 4. Assume the same as Example 1, except that the
SNAP Price was $50.03. Under this Example 4, since the SNAP Price is
equal to the NBO, the Exchange would charge fees to all buy and sell
orders per share executed, pursuant to proposed Section E.9(a)(4).
     Example 5. Assume the same as Example 1, except that the
SNAP Price

was $50.04. Under this Example 5, since the SNAP Price is greater than
the NBO, the Exchange would charge fees to all buy and sell orders per
share executed, pursuant to proposed Section E.9(a)(5).
     Example 6. Assume the same as Example 1, except that the
relevant NBBO is locked at 50.00 x 50.00. Under this Example 5 [sic],
since the SNAP Price is locked than the NBO [sic], the Exchange would
charge fees to all buy and sell orders per share executed, pursuant to
proposed Section E.9(a)(6).
    Also, the Exchange proposes to amend current Sections E.1, E.3 and
E.4 to provide that each of those sections are subject to proposed
Section E.9.\23\ The Exchange does not propose to substantively modify
Sections E.1, E.3 or E.4 in any other way.
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    \23\ Section E.1 of the Fee Schedule provides fees and credits
for Matching System executions resulting from single-sided orders
submitted as at least a Round Lot. Section E.2 of the Fee Schedule
provides fees and credits for Matching System executions from orders
submitted by Institutional Brokers registered with the Exchange
pursuant CHX Article 17, which includes fees for both single-sided
and cross orders. See CHX Article 1, Rule 2(a)(2). Section E.4 of
the Fee Schedule provides fees for Matching System executions
resulting from single-sided orders submitted as Odd Lots.
    The Exchange notes that it does not propose to amend Section E.2
of the Fee Schedule, which addresses cross orders executed within
the Matching System, to contemplate proposed Section E.9 because
cross orders cannot be executed within the Matching System during
the stage four Order Matching Period. See CHX Article 1, Rule
2(a)(2); see also supra note 3; see also CHX Article 18, Rule
1(b)(2)(C)(iv).
---------------------------------------------------------------------------

    Proposed Section E.9(b) provides as follows:

    Stage five executions. For all executions within the Matching
System during a stage five Transition to the Open Trading State, as
described under Article 18, Rule 1(b)(5), the Exchange shall charge
fees and attribute credits, pursuant to Sections E.1-4 above.

Since stage five executions within the Matching System will occur in a
manner similar to the current automated execution of orders within the
Matching System,\24\ the Exchange proposes to apply the current
Matching System execution fees and credits to such executions. The
Exchange notes that current Sections E.1-4 apply to all Matching System
executions and, thus, Sections E.1-4 do not need to be amended to
contemplate stage five executions, in particular.
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    \24\ See supra note 3.
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    Proposed Section E.9(c) provides as follows:

    Away executions. For all away executions resulting from orders
routed away during a SNAP Cycle, the Exchange shall charge the CHX
Routing Services fee, pursuant to Section E.6 of the Fee Schedule.

    The proposed language clarifies that all away executions resulting
from orders routed away during a SNAP Cycle will be subject to the
current CHX Routing Services fee.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \25\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \26\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and other persons using its facilities.
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    \25\ 15 U.S.C. 78f.
    \26\ 15 U.S.C. 78f(b)(4).
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    Specifically, the Exchange believes that proposed Section E.9(a)
equitably allocates fees among Participants in a non-discriminatory
manner because no Participant will be charged an execution fee for
stage four executions. Moreover, in the event that the Exchange decides
to adopt stage four executions fees,\27\ the Exchange believes that
proposed Section E.9(a) will allocate fees among Participants in a non-
discriminatory manner because the same fees would be assessed to all
orders executed during the stage four Order Matching Period.
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    \27\ See supra note 21.
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    The Exchange also believes that applying the current Matching
System execution fees and credits for stage five executions, pursuant
to current Sections E.1-4 and the current CHX Routing Services fees for
all away executions resulting from orders routed away during a SNAP
Cycle, pursuant to current Section E.6, equitably allocates fees among
Participants in a non-discriminatory manner, as such fees and credits
will continue to apply equally to all Participants that submit orders
to the Matching System pursuant to current fees and credits.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange operates in a
highly competitive market in which market participants can readily
direct order flow to competing venues if they deem fee levels set by
the Exchange to be excessive. The Exchange believes that the proposed
SNAP execution fees will encourage Participants to utilize SNAP, which
is an innovative trading functionality that addresses a market
need.\28\ Thus, the proposed rule change is a competitive proposal that
is intended to add additional liquidity and order executions to the
Exchange, which will, in turn, benefit the Exchange and all
Participants.
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    \28\ See supra note 3; see also Mary Jo White, Chair, Securities
and Exchange Commission, Speech at Sandler O'Neil & Partners L.P.
Global Exchange and Brokerage Conference (June 5, 2014).
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

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

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Act \29\ and subparagraph(f)(2) of Rule
19b-4 thereunder \30\ because it establishes or changes a due, fee or
other charge imposed by the Exchange.
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    \29\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \30\ 17 CFR 240.19b-4(f)(2).
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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 necessary or
appropriate in the public interest, for the protection of investors, or
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 proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CHX-2015-06 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CHX-2015-06. 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 Section, 100 F Street NE., Washington, DC 20549-1090. Copies
of the filing will also be available for inspection and copying at the
Exchange's principal office. 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-CHX-2015-06 and should be submitted on or before
November 19, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
Robert W. Errett,
Deputy Secretary.
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    \31\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2015-27519 Filed 10-28-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 100 (Thursday, May 23, 2013)]
[Notices]
[Pages 30911-30912]
[FR Doc No: 2013-12295]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP13-474-000]

Texas Eastern Transmission, LP; Prior Notice Activity Under
Blanket Certificate

    On May 8, 2013, Texas Eastern Transmission, LP (Texas Eastern),
filed a prior notice request pursuant to Sections 157.205, 157.213, and
157.216 of the Commission's regulations under the Natural Gas Act, and
Texas Eastern's blanket certificate issued in Docket No. CP82-535-000.
Texas Eastern seeks authorization to convert an existing injection/
withdrawal well to an observation well, and to abandon an associated
storage lateral line and ancillary facilities at the Accident Storage
Field in Garrett County, Maryland.
    Questions regarding this application may be directed to Lisa A.
Connolly, General Manager, Rates & Certificates, Texas Eastern
Transmission, LP, P.O. Box 1642, Houston, Texas 77251-1642, or by
calling<PHONE_NUMBER>, by faxing<PHONE_NUMBER>, or by emailing
<EMAIL_ADDRESS>    Pursuant to Section 157.9 of the Commission's rules, 18 CFR 157.9,
within 90 days of this Notice the Commission staff will either:
complete its environmental assessment (EA) and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review (NSER). If a Notice of
Schedule for Environmental Review is issued, it will indicate, among
other milestones, the anticipated date for the Commission staff's
issuance of the final environmental impact statement (FEIS) or EA for
this proposal. The filing of the EA in the Commission's public record
for this proceeding or the issuance of a NSER will serve to notify
federal and state agencies of the timing for the completion of all
necessary reviews, and the subsequent need to complete all federal
authorizations within 90 days of the date of issuance of the Commission
staff's FEIS or EA.
    Any person or the Commission's staff may, within 60 days after
issuance of the instant notice by the Commission, file pursuant to Rule
214 of the Commission's Procedural Rules (18 CFR 385.214) a motion to
intervene or notice of intervention and pursuant to Section 157.205 of
the regulations under the NGA (18 CFR 157.205), a protest to the
request. If no protest is filed within the time allowed therefore, the
proposed activity shall be deemed to be authorized effective the day
after the time allowed for filing a protest. If a protest is filed and
not withdrawn within 30 days after the allowed time for filing a
protest, the instant request shall be treated as an application for
authorization pursuant to Section 7 of the NGA.
    Protests will be considered by the Commission in determining the
appropriate action to be taken, but will not serve to make protestants
parties to the proceeding. Any person wishing to become a party must
file a notice of intervention or motion to intervene, as appropriate.
Such motions or protests must be filed on or before the comment date.
Anyone filing a motion to intervene or protest must serve a copy of
that document on the Applicant. On or before the comment date, it is
not necessary to serve motions to intervene or protests on persons
other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the

``eFiling'' link at http://www.ferc.gov. Persons unable to file
electronically should submit an original and seven copies of the
protest or intervention to the Federal Energy Regulatory Commission,
888 First Street NE., Washington, DC 20426.
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive email
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

    Dated: May 17, 2013.
Kimberly D. Bose,
Secretary.
[FR Doc. 2013-12295 Filed 5-22-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]
[Notices]
[Pages 28920-28924]
[FR Doc No: 2017-13228]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80976; File No. SR-BatsEDGA-2017-18]

Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change Related
To Amend Its Fee Schedule To Replace Current Inverted Pricing Model
With Low Fee Model

June 20, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 12, 2017, Bats EDGA Exchange, Inc. (the ``Exchange'' or
``EDGA'') filed with the Securities and Exchange Commission
(``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 the proposed rule change as one establishing or changing
a member due, fee, or other charge imposed by the Exchange under
Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    The Exchange filed a proposal to amend its fee schedule to replace
its current inverted pricing model with a simple, low fee model.
    The text of the proposed rule change is available at the Exchange's
Web site at www.bats.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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Most exchanges today utilize maker-taker pricing under which they
provide a rebate to orders that add liquidity and charge a fee to
orders that remove liquidity. The Exchange currently incorporates an
inverse of that pricing model under which it charges a fee to add
liquidity and provides a rebate to remove liquidity. As described
below, the Exchange proposes to amend its fee schedule to replace its
current inverted

pricing model with a simple, low fee model.
    The Exchange submits this proposal in response to the industry
feedback and the debate regarding exchange fee structures. Rule 610 of
Regulation NMS limits the fees that a Trading Center \5\ may charge for
accessing its Protected Quotation at $0.0030 per share.\6\ This fee cap
has served to create a cap on rebates with exchange's charging at or
near the access fee cap to remove liquidity and providing a rebate to
orders that add liquidity. Recent industry discourse has focused on fee
structures and their purported effect on liquidity provision, liquidity
taking, potential conflicts and order routing in the U.S. equity
market. In addition, the Commission's Equity Market Structure Advisory
Committee (``EMSAC'') recommended that the Commission propose a pilot
program to adjust the access fee cap under Rule 610 of Regulation NMS
to better understand these dynamics.\7\ In addition, some exchanges
have experimented with solutions, such as the recent pilot implemented
by the Nasdaq Stock Market LLC (``Nasdaq''), with limited success.
Other exchanges have proposed to not offer rebates and implemented a
low fee model \8\ as the Exchange proposes herein. The Exchange now
proposes to amend its fee schedule to no longer provide rebates and to
modify or eliminate other types of incentive pricing under its current
taker-maker pricing model. As amended, the Exchange would adopt a new
low fee pricing model under which it would charge a low fee or provide
the execution free of charge. The proposed low fee model is described
below.
---------------------------------------------------------------------------

    \5\ See 17 CR 242.600(b)(78).
    \6\ See 17 CFR 242.610(c).
    \7\ See EMSAC's Regulation NMS Subcommittee, Recommendation for
an Access Fee Pilot, June 10, 2016, available at https://www.sec.gov/spotlight/emsac/emsac-regulation-nms-recommendation-61016.pdf.
    \8\ See the Investors Exchange, Inc. fee schedule available at
https://iextrading.com/trading/ (dated August 19, 2016).
---------------------------------------------------------------------------

Displayed Order Fee Change
    In securities priced at or above $1.00, the Exchange currently
charges a fee of $0.0005 per share for Displayed orders that add
liquidity and provides a rebate $0.0002 per share for Displayed orders
that remove liquidity. Receipt of this removal rebate is contingent on
the attributed Market Participant Identifier (``MPID'') adding
(including Non-Displayed \9\) and/or routing an ADV \10\ of at least
50,000 shares. Any attributed MPID not meeting this criteria is charged
$0.0030 per share for removing liquidity for securities priced $1.00
and over and 0.20% of dollar value for securities priced less than
$1.00. The Exchange now proposes to charge a fee of $0.00030 per share
to all Displayed \11\ orders in securities priced above $1.00,
regardless of whether they add or remove liquidity. The Exchange does
not propose any contingency requirements or conditions that Members
must satisfy to receive the proposed rates. Therefore, the Exchange
proposes to delete footnote 1 \12\ of the fee schedule as receipt of
the proposed fee would not be contingent on the MPID adding (including
Non-Displayed) and/or routing an ADV of at least 50,000 shares. All
Displayed orders in securities priced below $1.00 would continue to be
free and not be contingent to any minimum volume requirements.
---------------------------------------------------------------------------

    \9\ See Exchange Rule 11.6(e)(2).
    \10\ ADV means average daily volume calculated as the number of
shares added to, removed from, or routed by, the Exchange, or any
combination or subset thereof, per day. See the Exchange's fee
schedule available at http://www.bats.com/us/equities/membership/fee_schedule/edga/.
    \11\ See Exchange Rule 11.6(e)(1).
    \12\ Due to the deletion of footnote 1, as well as the proposed
deletion of other footnotes described herein, the Exchange proposes
to renumber the remaining footnotes and corresponding reference to
those footnote throughout the fee schedule accordingly.
---------------------------------------------------------------------------

    As a result of the proposed change, the Exchange proposes to make
corresponding changes to the following fee codes for securities priced
at or above $1.00:
     Fee code 3, which is appended to orders that add liquidity
on the Exchange in Tape A and C securities outside of Regular Trading
Hours,\13\ are currently charged a fee of $0.00050 per share. Orders
that yield fee code B would now be charged the proposed standard fee of
$0.00030 per share.
---------------------------------------------------------------------------

    \13\ Regular Trading Hours is defined as ``the time between 9:30
a.m. and 4:00 p.m. Eastern Time.'' See Exchange Rule 1.5(y).
---------------------------------------------------------------------------

     Fee code 4, which is appended to orders that add liquidity
on the Exchange in Tape B securities outside of Regular Trading Hours,
are currently charged a fee of $0.00050 per share. Orders that yield
fee code 4 would now be charged the proposed standard fee of $0.00030
per share.
     Fee code 6, which is appended to orders that remove
liquidity from the Exchange in all securities outside of Regular
Trading Hours, are currently provided a rebate of $0.00020 per share.
Orders that yield fee code 6 would now be charged the proposed standard
fee of $0.00030 per share.
     Fee code B, which is appended to orders that add liquidity
on the Exchange in Tape B securities during Regular Trading Hours, are
currently charged a fee of $0.00050 per share. Orders that yield fee
code B would now be charged the proposed standard fee of $0.00030 per
share.
     Fee code BB, which is appended to orders that remove
liquidity from the Exchange in Tape B securities during of Regular
Trading Hours, are currently provided a rebate of $0.00020 per share.
Orders that yield fee code BB would now be charged the proposed
standard fee of $0.00030 per share.
     Fee code CR, which is appended to orders that remove
liquidity from the Exchange using an eligible routing strategy, are
currently provided a rebate of $0.00020 per share. Under footnote 12,
the eligible routing strategies for fee code CR are ROUT, RDOT, ROUE,
ROUC, and ROCO. The Exchange proposes to delete fee code CR and
footnote 12 as orders that remove liquidity from the Exchange,
regardless of whether any portion of that order is routed away would
now be charged the proposed standard fee of $0.00030 per share as set
forth under the Standard Rates table. The Exchange also proposes to
delete fee code CR from the Standard Rate table.
     Fee code N, which is appended to orders that remove
liquidity from the Exchange in Tape C securities during of Regular
Trading Hours, are currently provided a rebate of $0.00020 per share.
Orders that yield fee code N would now be charged the proposed standard
fee of $0.00030 per share.
     Fee code PR, which is appended to orders that remove
liquidity from the Exchange using an eligible routing strategy, are
currently provided a rebate of $0.00020 per share. Under footnote 6,
the eligible routing strategies for fee code PR are ROUZ, ROUD, and
ROUQ. The Exchange proposes to delete fee code PR and footnote 6 as
orders that remove liquidity from the Exchange, regardless of whether
any portion of that order is routed away would now be charged the
proposed standard fee of $0.00030 per share as set forth under the
Standard Rates table. The Exchange also proposes to delete fee code PR
from the Standard Rate table.
     Fee code V, which is appended to orders that add liquidity
on the Exchange in Tape A securities during Regular Trading Hours, are
currently charged a fee of $0.00050 per share. Orders that yield fee
code V would now be charged the proposed standard fee of $0.00030 per
share.
     Fee code W, which is appended to orders that remove
liquidity from the Exchange in Tape A securities during of Regular
Trading Hours, are currently provided a rebate of $0.00020 per share.

Orders that yield fee code W would now be charged the proposed standard
fee of $0.00030 per share.
     Fee code XR, which is appended to orders that remove
liquidity from the Exchange using an eligible routing strategy, are
currently provided a rebate of $0.00020 per share. Under footnote 7,
the eligible routing strategies for fee code PR are DIRC, ROUX, RDOX,
INET, ROBB, SWPA, and SWPB. The Exchange proposes to delete fee code XR
and footnote 7 as orders that remove liquidity from the Exchange,
regardless of whether any portion of that order is routed away would
now be charged the proposed standard fee of $0.00030 per share as set
forth under the Standard Rates table. The Exchange also proposes to
delete fee code XR from the Standard Rate table.
     Fee code Y, which is appended to orders that add liquidity
on the Exchange in Tape C securities during Regular Trading Hours, are
currently charged a fee of $0.00050 per share. Orders that yield fee
code Y would now be charged the proposed standard fee of $0.00030 per
share.
    The Exchange determines the liquidity adding reduced fee that it
will charge Members using a tiered pricing structure. Currently, the
Exchange charges reduced fee of $0.00030 per share under three Volume
Tiers and two Step-Up tiers described in footnote 4 of the Fee
Schedule. The Exchange proposes to delete all tiers listed under
footnote 4 as all Displayed orders would be charged a fee of $0.00030
per share regardless of whether the Member or MPID achieves certain
volume criteria. A description of each tier under footnote 4 that is to
be deleted is below.
     Under Volume Tier 1, a Member must add an ADV equal to or
greater than 1% of the TCV,\14\ including orders with a Non-Displayed
instruction that add liquidity.
---------------------------------------------------------------------------

    \14\ Id.
---------------------------------------------------------------------------

     Under Volume Tier 2, a Members must add an ADV equal to or
greater than 0.25% of the TCV, including orders with a Non-Displayed
instruction that add liquidity; and removes an ADV of at least 0.25% of
the TCV.
     Under Volume Tier 3, a Member must add an ADV equal to or
greater than 0.15% of TCV, including Non-Displayed orders that add
liquidity; and has an ``added liquidity'' as a percentage of ``added
plus removed liquidity'' of at least 85%.
     Under Step-Up Tier 1, the MPID must add an ADV equal to or
greater than 0.10% of the TCV more than the MPID's December 2012 added
ADV as a percentage of TCV or September 2013 added ADV as a percentage
of TCV, whichever is lower.
     Under Step-Up Tier 2, the MPID adds an ADV equal to or
greater than 0.05% of the TCV more than the MPID's December 2012 added
ADV as a percentage of TCV or September 2013 added ADV as a percentage
of TCV, whichever is lower; and an ``added liquidity'' as a percentage
of ``added plus removed liquidity'' equal to or greater than 85%.
Non-Displayed Order Fee Change
    In securities priced at or above $1.00, the Exchange currently
charges a fee of $0.0010 per share for Non-Displayed orders that add or
remove liquidity. The Exchange now proposes to charge a fee of $0.00050
per share to Non-Displayed orders in securities priced above $1.00 that
remove liquidity (other than for fee code DT, which will be charged no
fee, as described below) and to charge no fee or rebate for Non-
Displayed orders that add liquidity. Unless noted below, the Exchange
does not propose to amend the fees charged for Non-Displayed orders in
securities priced below $1.00.
    As a result of the proposed change, the Exchange proposes to make
corresponding changes to the following fee codes for securities priced
at or above $1.00:
     Fee code DM is appended to Non-Displayed orders that add
liquidity using MidPoint Discretionary Orders.\15\ Orders that yield
fee code DM in securities priced at or above $1.00 are charged a fee of
$0.00050 per share and orders in securities priced below $1.00 are
charged a fee equal to 0.05% of the transaction's dollar value. Orders
that yield fee code DM would now be free for all securities regardless
of whether they are priced above or below $1.00.
---------------------------------------------------------------------------

    \15\ The operation of MidPoint Discretionary Orders is described
in Exchange Rule 11.8(e).
---------------------------------------------------------------------------

     Fee code DT is appended to Non-Displayed orders that
remove liquidity using MidPoint Discretionary Orders. Orders that yield
fee code DT in securities priced at or above $1.00 are charged a fee of
$0.00050 per share and orders in securities priced below $1.00 are
charged a fee equal to 0.05% of the transaction's dollar value. Orders
that yield fee code DT would now be free for all securities regardless
of whether they are priced above or below $1.00.
     Fee code HA is appended to Non-Displayed orders that add
liquidity Orders that yield fee code HA in securities priced at or
above $1.00 are charged a fee of $0.00100 per share and orders in
securities priced below $1.00 are charged a fee equal to 0.10% of the
transaction's dollar value. Orders that yield fee code HA would now be
free for all securities regardless of whether they are priced above or
below $1.00.
     Fee code HR is appended to Non-Displayed orders that
remove liquidity. Orders that yield fee code HR in securities priced at
or above $1.00 are charged a standard fee of $0.0010 per share and
orders in securities priced below $1.00 are charged a fee equal to
0.10% of the transaction's dollar value. Orders in securities priced at
or above $1.00 that yield fee code HR would now be charged the proposed
standard fee of $0.00050 per share. Orders in securities priced below
$1.00 would be charged 0.05% of the transaction's dollar value.
     Fee code RP, which is appended to Non-Displayed orders
that add liquidity using Supplemental Peg Orders,\16\ are charged a fee
of $0.00040 per share. Orders that yield fee code RP would now be free.
---------------------------------------------------------------------------

    \16\ The operation of Supplemental Peg Orders is described in
Exchange Rule 11.8(g).
---------------------------------------------------------------------------

    In securities priced at or above $1.00, the Exchange currently
charges a fee of $0.00080 per share for Non-Displayed orders that add
or remove liquidity using MidPoint Peg Orders.\17\ The Exchange now
proposes to charge a fee of $0.00050 per share to MidPoint Peg Orders
in securities priced above $1.00 that remove liquidity and to charge no
fee or rebate for MidPoint Peg Orders that add liquidity. The Exchange
does not propose to amend the fees charged for MidPoint Peg Orders in
securities priced below $1.00. As a result of the proposed change, the
Exchange proposes to make corresponding changes to the following fee
codes for securities priced at or above $1.00:
---------------------------------------------------------------------------

    \17\ The operation of MidPoint Peg Orders is described in
Exchange Rule 11.8(d).
---------------------------------------------------------------------------

     Fee code MM is appended to Non-Displayed orders that add
liquidity using MidPoint Peg Orders. Orders in securities priced at or
above $1.00 that yield fee code MM are currently charged a fee of
$0.00080 per share. Orders in securities below $1.00 that yield fee
code MT are currently charged a fee equal to 0.08% of the transaction's
dollar value. Orders that yield fee code MM would now be free for all
securities regardless of whether they are priced above or below $1.00.
     Fee code MT is appended to Non-Displayed orders that
remove liquidity using MidPoint Peg Orders. Orders in securities priced
at or above $1.00 that yield fee code MT are currently charged a fee of
$0.00080 per share. Orders in securities below $1.00 that yield fee
code MT are currently charged a fee equal to 0.08% of the transaction's
dollar value. Orders that yield fee code

MT in securities priced at or above $1.00 would now be charged the
proposed standard fee of $0.00050 per share. Orders in securities
priced below $1.00 would be charged 0.05% of the transaction's dollar
value.
     Fee code PA, which is appended to orders that add
liquidity using the RMPT or RMPL routing strategies,\18\ are charged a
fee of $0.00080 per share. Orders that yield fee code PA would now be
charged no fee.
---------------------------------------------------------------------------

    \18\ The RMPL and RMPT routing strategies utilize a MidPoint Peg
Order to check the System for available shares and any remaining
shares are then sent to destinations on the System routing table
that support midpoint eligible orders. If any shares remain
unexecuted after routing, they are posted on the EDGA Book as a
MidPoint Peg Order, unless otherwise instructed by the User. See
Exchange Rule 11.11(g)(13).
---------------------------------------------------------------------------

     Fee code PT, which is appended to orders that add
liquidity using the RMPT or RMPL routing strategies, are charged a fee
of $0.00100 per share. Orders that yield fee code PT would now be
charged the proposed standard fee of $0.00050 per share.
    Currently footnote 2 of the fee schedule states that the rates for
fee codes HA, HR, MM and MT are contingent upon Member adding or
removing an ADV of at least 1,000,000 shares Non-Displayed (yields fee
codes HA, HR, DM, DT, MM, MT and RP) or Member adding an ADV of at
least 8,000,000 shares (Displayed and Non-Displayed). For securities
priced at or above $1.00, Members not meeting either minimum are
currently charged $0.0030 per share for fee codes HA, HR, MM and MT.
For securities priced below $1.00, Members not meeting either minimum
are currently charged 0.30% of the dollar value of the transaction. The
Exchange does not propose any contingency requirements or conditions
that Members must satisfy to receive the proposed rates for Non-
Displayed orders. Therefore, the Exchange proposes to delete footnote 2
of the fee schedule as receipt of the proposed rates would not be
contingent on the Member meeting any volume requirements. All Non-
Displayed orders in securities priced below $1.00 would not be
contingent to any minimum volume requirements and subject to the
current rates set forth in the applicable fee code.
    The Exchange also proposes to modify or delete tiers applicable to
Non-Displayed Orders. The Exchange currently offers two tiers under
footnote 3, the RMPT/RMPL Tiers, under which a Member receives a
discounted fee of either $0.0006 or $0.0008 per share for orders
yielding fee codes PT or PX where that Member satisfies certain
criteria. Under Tier 1, a Member receives a reduced fee of $0.0008 per
share where they add or remove an ADV greater than or equal to
2,000,000 shares using the RMPT or RMPL routing strategy. Under Tier 2,
a Member receives a reduced fee of $0.0006 per share where they add or
remove an ADV greater than or equal to 4,000,000 shares using the RMPT
or RMPL routing strategy. As described above, fee codes PT and PX are
appended to orders that remove liquidity or are routed, respectively,
using the RMPT or RMPL routing strategies. Orders that yield fee code
PT would be charged a fee of $0.00050 as proposed herein. Orders that
yield fee code PX would continue to be charged a fee of $0.00120 per
share. Because the fee for orders that yield fee code PT would be lower
than the reduced fee provided by the two RMPT/RMPL Tiers, the Exchange
proposes to only apply the reduced fee for those tiers to orders that
yield fee code PX as those orders would be charged a higher fee of
$0.00120 per share if they do not achieve the RMPT/RMPL tier's
criteria.
    The Exchange also offers two tiers under footnote 13, the Midpoint
Add and Remove Tiers, under which a Member receives a reduced fee of
$0.0006 or $0.0004 per share for orders that yield fee code MM or MT
where that Member satisfies certain criteria. As described above, fee
codes MM and MT are appended to Midpoint Peg Orders that add or remove
liquidity, respectively. Under Tier 1, Members are charged a reduced
fee of $0.0006 per share where the Member has an ADV equal to or
greater than 1,200,000 shares in orders that yield fee codes MM or MT.
Under Tier 2, Members are charged a reduced fee of $0.0004 per share
where the Member has an ADV equal to or greater than 2,500,000 shares
in orders that yield fee codes MM or MT. The Exchange proposes to
delete all tiers listed under footnote 13 as all MidPoint Peg orders
that remove liquidity would be charged the proposed standard rates
regardless of whether the Member achieves certain volume criteria--a
fee of $0.00050 per share and those orders that add liquidity would be
charged no fee.
Implementation Date
    The Exchange proposes to implement the above changes to its fee
schedule on immediately.\19\
---------------------------------------------------------------------------

    \19\ The Exchange initially filed the proposal on June 1, 2017.
(SR-BatsEDGA-2017-17). On June 12, 2017, the Exchange withdrew SR-
BatsEDGA-2017-17 and submitted this filing.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\20\ in general, and
furthers the objectives of Section 6(b)(4),\21\ in particular, as it is
designed to provide for the equitable allocation of reasonable dues,
fees and other charges among its Members and other persons using its
facilities. The Exchange also believes the proposed rule change is not
unfairly discriminatory as it would apply to all Members.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f.
    \21\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes its proposal to replace its current taker-
maker pricing model with a new low fee model where it would charge a
fee or provide the execution free of charge is equitable and reasonable
as it would serve to simply its fee schedule to provide low standard
rates for Displayed and Non-Displayed orders while also eliminating
rebates and other pricing incentives. The Exchange submits this
proposal in response to the industry feedback and the debate regarding
exchange fee structures. Recent industry discourse has focused on fee
structures and their purported effect on liquidity provision, liquidity
taking, potential conflicts and order routing in the U.S. equity
market. In addition, the Commission's EMSAC recommended that the
Commission propose a pilot program to adjust the access fee cap under
Rule 610 of Regulation NMS to better understand these dynamics.\22\
Other exchanges have proposed to not offer rebates and implemented a
low fee model \23\ as the Exchange proposes herein. The Exchange
submits this proposal in response to the industry feedback and debate
regarding exchange fee structures and to move the discussion closer to
a market practice of reduced transaction costs.
---------------------------------------------------------------------------

    \22\ See supra note 7.
    \23\ See the Investors Exchange, Inc. fee schedule available at
https://iextrading.com/trading/ (dated August 19, 2016).
---------------------------------------------------------------------------

    The proposed fee structure provides a simple, straight forward low
cost model that seeks to treat both liquidity providers and removers
equally. Adopting a low fee model under which Displayed orders are
charged the same low fee regardless of whether they add or remove
liquidity will serve to provide an equal economic incentive to Members
that not only seek to remove liquidity, but also to add liquidity to
the Exchange. The Exchange believes that reducing the standard fee for
Displayed orders and charging no fee for Non-Displayed orders that add
liquidity will

seek to further incentives Members to add liquidity to the Exchange.
The potential increase in posted liquidity would serve to improve price
discovery, depth of liquidity, and overall execution quality on the
Exchange. The Exchange further believes that it is equitable and
reasonable to charge no fee for orders that yield fee code DT, which is
appended to Non-Displayed orders that remove liquidity using MidPoint
Discretionary Orders, as it is intended to incentives the use of
MidPoint Discretionary Orders and improve liquidity at the midpoint of
the NBBO. Charging no fee for orders that yield fee code DT is designed
to encourage the posting of contra-side orders that add liquidity at
the midpoint of the NBBO as such orders could receive increased
execution opportunities thought the possible increase in entry of
MidPoint Discretionary Orders.
    The modification and elimination of certain reduced fees via the
current tiered pricing model as proposed herein is also equitable and
reasonable because it would aid in simplifying the fee schedule and
result in all Member's being charged the same rates for all
transactions regardless of their monthly volumes. The Exchange
generally believes that volume-based pricing provides benefits or
discounts that are reasonably related to: (i) The value to an
exchange's market quality; (ii) associated higher levels of market
activity, such as higher levels of liquidity provision and/or growth
patterns; and (iii) the introduction of higher volumes of orders into
the price and volume discovery processes. However, the elimination of
the Exchange's current tiered pricing is consistent with the proposed
fee model which is designed to attract additional order flow though low
fees for both adding and removing liquidity.

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

    This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe that this change represents a
significant departure from previous pricing offered by the Exchange's
competitors. The proposed rates would apply uniformly to all Members,
and Members may opt to disfavor the Exchange's pricing if they believe
that alternatives offer them better value. Accordingly, the Exchange
does not believe that the proposed changes will impair the ability of
Members or competing venues to maintain their competitive standing in
the financial markets. Further, excessive fees would serve to impair an
exchange's ability to compete for order flow and members rather than
burdening competition. The Exchange believes that its proposal would
not burden intramarket competition because the proposed rate would
apply uniformly to all Members.

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 members or other interested parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \24\ and paragraph (f) of Rule 19b-4
thereunder.\25\ 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
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-BatsEDGA-2017-18 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 No. SR-BatsEDGA-2017-18. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-BatsEDGA-2017-18, and should be
submitted on or before July 17, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13228 Filed 6-23-17; 8:45 am]
 BILLING CODE 8011-01-P