Two exchanges registered with the Securities and Exchange Commission—EDGA Exchange, Inc. and EDGX Exchange, Inc.—agreed to pay US $14 million to settle SEC charges related to their failure to describe order types used on their facilities in mandatory SEC filings. The exchanges were previously owned by Direct Edge Holdings, LLC and are now owned and operated by BATS Global Markets, Inc. According to the SEC, since beginning operation as SEC-licensed national exchanges in July 2010, EDGA and EDGX were required to have rules that required members “reasonably to avoid” displaying quotations for equity securities that would cause a best bid price to equal or exceed a best offer price. To comply with this requirement, Direct Edge filed proposed order type rules for EDGA and EDGX for public comment in September 2009 in connection with their application for licensing. These rules provided for one default process to automatically re-price and re-prioritize a potentially problematic order unless a member provided alternative instructions. However, once commencing operation as national exchanges, EDGA and EDGX maintained three potential order types to handle nonroutable orders and changed the default option on a few occasions; the three order types had different priority in execution against each other and against other order types. This information was fully disclosed to some but not all members, allowing a few members to benefit from the changes but not all, claimed the SEC. Direct Edge filed revised rules with the SEC in summer 2014 that reflected the three order types and how they operated. The rules were approved for EDGX on October 29, 2014, and EDGA on November 13, 2014. As part of their settlement, the exchanges also agreed to implement written policies and procedures related to order types, among other undertakings. The SEC said its fine in this matter was the largest fine it has ever levied against a national securities exchange.