
[Federal Register Volume 79, Number 78 (Wednesday, April 23, 2014)]
[Notices]
[Pages 22739-22741]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09207]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71963; File No. SR-EDGX-2014-11]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
ROOC Routing Option Under EDGX Rule 11.9(b)(2)(n)

April 17, 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 April 14, 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 and 
II 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.
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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

    The Exchange proposes to amend its ROOC routing option under Rule 
11.9(b)(2)(n) to include the ability to route orders to participate in 
the listing market's re-opening process following a halt, suspension or 
pause. 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.

[[Page 22740]]

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its ROOC routing option under Rule 
11.9(b)(2)(n) to include the ability to route orders to participate in 
the listing market's re-opening process following a halt, suspension or 
pause. The Exchange offers its Users \3\ optional routing functionality 
that allows them to use the Exchange's facilities to access liquidity 
on other trading centers. The functionality includes a range of defined 
routing algorithms that determine the destination or pattern of 
routing. Exchange Rule 11.9(b)(2) sets forth the particular pattern of 
routing to other trading centers, known as the ``System routing table'' 
as well as the Exchange's available routing options. All routing is 
designed to be conducted in a manner consistent with Regulation NMS.
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    \3\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee).
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    The Exchange currently offers a routing option, known as ROOC, 
which allows Users to route orders to participate in the opening or 
closing process of the listing market (New York Stock Exchange 
(``NYSE''), Nasdaq, NYSE MKT,\4\ or NYSE Arca). Orders to be routed 
pursuant to the ROOC routing option must be received before the 
opening/closing time of such market. If shares remain unexecuted after 
attempting to execute in the opening or closing process, they are 
either posted to the EDGX Book,\5\ executed, or routed like the 
Exchange's ROUT routing option.\6\
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    \4\ Formally known as NYSE Amex. The Exchange is amending Rule 
11.9(b)(2)(n) to reflect the change in this exchange's name.
    \5\ The ``EDGX Book'' is defined as the ``System's electronic 
file of orders.'' See Exchange Rule 1.5(d).
    \6\ See Exchange Rule 11.9(b)(c)(ii).
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    The Exchange proposes to amend the ROOC routing option to allow 
Users to route orders to participate in the listing market's re-opening 
process following a halt, suspension or pause,\7\ in addition to the 
listing market's opening or closing process. Orders that the User 
wishes to participate in the listing market's re-opening process will 
be handled in the same manner as orders that are to participate in the 
opening and closing process. Such orders must be received before the 
re-opening time on such market. In addition, any shares that remain 
unexecuted after attempting to execute in the listing market's re-
opening process will be either posted to the EDGX Book, executed, or 
routed pursuant to the Exchange's ROUT routing option.
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    \7\ The ROOC routing option would route orders to participate in 
the listing market's re-opening process following a halt, suspension 
or pause during Regular Trading Hours only. 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).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \9\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. The Exchange believes that 
the proposed rule change will increase the flexibility of market 
participant's [sic] by expanding the ROOC routing option beyond the 
listing market's opening and closing process to also include the 
ability to route orders to participate in re-openings following a halt, 
suspension or pause. As a result, Users will have access to additional 
sources of liquidity, potentially benefiting from improved execution 
prices and a more efficient marketplace. Therefore, the Exchange 
believes the proposed rule change will provide User with greater 
control and flexibility over their routing of orders, thereby 
facilitating transactions in securities and perfecting the mechanism of 
the national market system.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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 not necessary or appropriate in 
furtherance of the purposes of the Act. To the contrary, the Exchange 
believes that the proposal will promote competition by enhancing the 
value of the Exchange's available routing options. However, since the 
use of the Exchange's routing options is voluntary and Users have 
numerous alternative mechanisms for order routing, the changes will not 
impair the ability of Users to use other means to access competing 
trading venues.

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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
Because the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \14\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6) \15\ permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon

[[Page 22741]]

filing. The Exchange represents that waiver of the 30-day operative 
delay would provide Users with greater flexibility and control over 
their routed orders by expanding the ROOC routing option to include the 
ability to route orders to participate in re-openings in a timely 
manner, and, as a result, Users will have access to additional sources 
of liquidity, potentially benefiting from improved execution prices and 
a more efficient marketplace. The Exchange further represents that 
waiving the 30-day operative delay will increase the competitiveness of 
its routing functionality. The Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and 
the public interest. Therefore, the Commission designates the proposal 
operative upon filing.\16\
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    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

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 rule-comments@sec.gov. Please include 
File Number SR-EDGX-2014-11 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-2014-11. 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 Number SR-EDGX-2014-11 and should be 
submitted on or before May 14, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09207 Filed 4-22-14; 8:45 am]
BILLING CODE 8011-01-P


