Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BATS Rule 11.9, entitled “Orders and Modifiers”, 4788-4790 [E9-1670]
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4788
Federal Register / Vol. 74, No. 16 / Tuesday, January 27, 2009 / Notices
Information Collection Request (ICR)
Title: Supplemental Information on
Accident and Insurance.
Form(s) submitted: SI–1c, SI–5, ID–
3s–1, ID–3U, ID–30k, ID–30k–1, ID–3s.
OMB Control Number: 3220–0036.
Expiration date of current OMB
clearance: 1/31/2009.
Type of request: Revision of a
currently approved collection.
Affected Public: Individuals or
Households, Business or other for-profit.
Estimated annual number of
respondents: 10,000.
Total annual responses: 28,500.
Total annual reporting hours: 1,693.
Abstract: The Railroad
Unemployment Insurance Act provides
for the recovery of sickness benefits
paid if an employee receives a
settlement for the same injury for which
benefits were paid. The collection
obtains information abut the person or
company responsible for such payments
that is needed to determine the amount
of the RRB’s entitlement.
Changes Proposed: The RRB proposes
minor non-burden impacting changes to
Forms SI–1c, ID–3s, ID–3s–1 and ID–3U.
No other changes are proposed.
Additional Information or Comments:
Copies of the form and supporting
documents can be obtained from
Charles Mierzwa, the agency clearance
officer at (312–751–3363) or
Charles.Mierzwa@rrb.gov.
Comments regarding the information
collection should be addressed to
Ronald J. Hodapp, Railroad Retirement
Board, 844 North Rush Street, Chicago,
Illinois 60611–2092 or
Ronald.Hodapp@rrb.gov and to the
OMB Desk Officer for the RRB, at the
Office of Management and Budget,
Room 10230, New Executive Office
Building, Washington, DC 20503.
Charles Mierzwa,
Clearance Officer.
[FR Doc. E9–1649 Filed 1–26–09; 8:45 am]
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form SE (17 CFR 239.64) is used by
registrants to file paper copies of
exhibits that would be difficult or
impossible to submit electronically. The
information contained in Form SE is
used by the Commission to identify
paper copies of exhibits. Form SE is
filed by individuals, companies or other
for-profit organizations that are required
to file electronically. Approximately 782
registrants file Form SE and it takes an
estimated .10 hours per response for a
total annual burden of 78 hours.
Written comments are invited on: (a)
Whether these proposed collections of
information are necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Boucher, Director/CIO, C/O
Shirley Martinson, 6432 General Green
Way, Alexandria, Virginia 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: January 14, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1676 Filed 1–26–09; 8:45 am]
BILLING CODE 7905–01–P
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
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Upon written request, copies available
from: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension: Form SE, OMB Control No. 3235–
0327, SEC File No. 270–289.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
BATS Rule 11.9, entitled ‘‘Orders and
Modifiers,’’ to provide Exchange system
functionality that will cancel any
portion of a market order submitted to
the Exchange (a ‘‘BATS market order’’)
that would execute at a price that is
more than 50 cents or 5 percent worse
than the NBBO at the time the order
initially reaches the Exchange (the
‘‘Initial NBBO’’), whichever is greater.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
[Release No. 34–59258; File No. SR–BATS–
2009–001]
Proposed Collection; Comment
Request
VerDate Nov<24>2008
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
12, 2009, BATS Exchange, Inc. (‘‘BATS’’
or the ‘‘Exchange’’) 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 this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BATS Rule
11.9, entitled ‘‘Orders and Modifiers’’
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to protect market participants
1 15
January 15, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 74, No. 16 / Tuesday, January 27, 2009 / Notices
from executions at prices that are
significantly worse than the NBBO at
the time of order entry by providing
Exchange system functionality that will
cancel any portion of a BATS market
order that would execute at a price that
is 50 cents or 5 percentage points worse
than the Initial NBBO, whichever is
greater. Any portion of a BATS market
order that would otherwise execute
outside of these thresholds will be
immediately cancelled back to the
User.5 The Exchange believes that Users
who submit market orders to the
Exchange generally intend to receive
executions for the full size of their
orders at or near the Initial NBBO and
are not always aware that there may not
be enough liquidity at that price to fill
the entire size of their orders. The
Exchange believes that the market order
thresholds proposed in this rule filing
will help avoid executions of BATS
market orders at prices that are
significantly worse than the Initial
NBBO, particularly in thinly-traded
securities. The following example
demonstrates how the BATS market
order thresholds would operate:
• A User submits a routable BATS
market order 6 (i.e., not designated as a
‘‘BATS Only’’ order) to buy 1,000 shares
of ABC;
• The Initial NBBO in security ABC is
$8.00 (bid) by $8.05 (offer), 100 shares
each, both published by ‘‘Market Center
A’’;
• The Exchange has 100 shares of
liquidity at the $8.05 offer price and
also has resting orders on its book to sell
100 shares at $8.15, 100 shares at $8.20
and 1,000 shares at $8.60; and
• Other than the $8.05 offer
published by Market Center A there are
no offers to sell the security at or
between $8.05 and $8.60 at other market
centers.
Under the circumstances described
above, with the Initial NBBO of $8.00
(bid) by $8.05 (offer), the BATS market
order would be executed as follows:
• 100 shares executed at the $8.05
price on the Exchange;
• 900 shares routed to Market Center
A as an immediate or cancel order with
a price of $8.05;
• 100 shares executed at Market
Center A (presuming this offer was still
5 As
defined in Exchange Rule 1.5(bb).
the order is not routable then it would be
executed on the Exchange only if such executions
would not trade through the protected quotations of
other market centers. If the order is a routable order,
then such order will be executed in accordance
with BATS Rule 11.13(a), however, orders will not
be routed away for execution at prices outside of
the market order thresholds proposed in this rule
filing, which applies both to market orders executed
on the Exchange and to market orders that are to
be routed away.
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6 If
VerDate Nov<24>2008
17:20 Jan 26, 2009
Jkt 217001
available and there was no additional
non-displayed liquidity at that price);
• 800 shares returned to the
Exchange;
• 100 shares executed at the
Exchange at the $8.15 price level;
• 100 shares executed at the
Exchange at the $8.20 price level.
Under this example, 400 shares of the
BATS market order would be executed.
The remaining 600 shares of the BATS
market order would be cancelled back to
the User because the liquidity on the
Exchange at the $8.60 price level
exceeds the BATS market order
thresholds set forth in proposed Rule
11.9(a)(2), and such order is not eligible
for routing outside of such thresholds.
Such BATS market order could only be
executed or routed by the Exchange up
to and including a price of $8.55 ($0.50
worse than the Initial NBBO).
For those Users who intend to trade
against liquidity at multiple price points
from the Initial NBBO beyond the BATS
market order thresholds proposed in
this rule filing, those Users can clearly
and unambiguously specify that intent
by submitting a marketable limit order
to the Exchange. For example, using the
scenario described above, if the User
submitted a limit order to buy 1,000
shares of security ABC with a limit price
of $9.00, such order would be executed
up to its full size, either on the
Exchange (provided that the Exchange
would not trade through protected
quotations) or at away market centers if
the order was routable.
2. Statutory Basis
The Exchange believes the proposal is
consistent with the requirements of the
Act and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b).7 In particular, for the
reasons described above, the proposed
change is consistent with Section 6(b)(5)
of the Act,8 because it would promote
just and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest, by helping to avoid executions
of market orders on the Exchange at
prices that are significantly worse than
the NBBO at the time an order is
initially received by the Exchange. The
Exchange believes that the Initial NBBO
is a fair representation of then-available
prices and accordingly provides for an
appropriate pricing mechanism such
that BATS market orders should not be
7 15
8 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00059
Fmt 4703
Sfmt 4703
4789
executed at a significantly worse price.
Also, the Exchange believes that this
proposal is consistent with existing
exchange rules that allow for the
breaking of trades deemed clearly
erroneous by reference to objective
thresholds away from the NBBO.9
Accordingly, the modifications to BATS
Rule 11.9 promote just and equitable
principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system.
A. Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
B. Self-Regulatory Organization’s
Statement on Comments Regarding the
Proposed Rule Changes Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
i. Date of Effectiveness of the Proposed
Rule Changes and Timing for
Commission Action
Because the foregoing rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 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 requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative upon filing. The Commission
believes that waiving the 30-day
operative delay is consistent with the
9 See,
e.g., NASDAQ Rule 11890.
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission written
notice of its intent to file the proposed rule change,
along with a brief description and text of the
proposed rule change, at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this notice
requirement.
13 Id.
10 15
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Federal Register / Vol. 74, No. 16 / Tuesday, January 27, 2009 / Notices
protection of investors and the public
interest because such waiver will allow
BATS Users to immediately benefit from
the protections provided by BATS
market orders. The Commission hereby
grants the Exchange’s request and
designates the proposal operative upon
filing.14
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
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.
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of BATS. 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–BATS–2009–001 and should be
submitted on or before February 17,
2009.
ii. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1670 Filed 1–26–09; 8:45 am]
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
No. SR–BATS–2009–001 on the subject
line.
mstockstill on PROD1PC66 with NOTICES6
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File No.
SR–BATS–2009–001. This file number
should be included on the subject line
if e-mail 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 (https://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 changes 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 inspection and copying in
14 For the 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).
VerDate Nov<24>2008
17:20 Jan 26, 2009
Jkt 217001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59265; File No. SR–BSE–
2008–36]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Order Approving
Proposed Rule Change Relating to
Delisting Standards
January 16, 2009.
I. Introduction
On November 3, 2008, the Boston
Stock Exchange, Inc. (‘‘BSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt new criteria permitting the
delisting of a security when the
Exchange has terminated its program for
listing and trading cash equities
(‘‘Listing Program’’) in connection with
the discontinuation of trading in all
securities listed on its market. The
proposed rule change was published for
comment in the Federal Register on
November 28, 2008.3 The Commission
received no comments on the proposal.
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 58990
(November 20, 2008), 73 FR 72534 (‘‘Notice’’). In
order for a company to voluntarily delist from the
Exchange, it would have to follow the procedures
set forth in Rule 12d2–2 under the Act, which
includes the filing of a Form 25 with the
Commission. See Rule 12d2–2 under the Act, 17
CFR 240.12d2–2.
1 15
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
This order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
On September 5, 2007, the Exchange
announced the discontinuation of the
operations of the Boston Equities
Exchange. In addition to that
announcement, in October 2007, all
issuers were given additional notice that
the BSE had terminated its Listing
Program. While trading in all securities
on the BSE ceased on September 5,
2007, not all companies have delisted
their securities from the Exchange by
filing a Form 25 with the Commission.4
As a result, the Exchange proposes to
adopt new rules that would give it the
authority to delist, under certain
conditions, the remaining BSE-listed
companies, because there is no basis to
involuntarily delist these companies
under BSE’s existing rules.
Under the proposal, the Exchange
may determine to delist a security when
the Exchange has terminated its Listing
Program in connection with the
discontinuation of trading in all
securities listed on its market. The
proposed new rule will provide that at
least 15 days before issuing such
delisting determination, the Board of
Directors or its designee must give
notice of the delisting to the company.
As soon as practicable after the issuance
of the delisting determination, notice
will be provided to the company and
the Commission of such delisting
determination. Notice to the company of
the delisting determination shall inform
the company of the opportunity to
appeal, applying the same appeal rights
that exist under BSE rules for any
company involuntarily delisted by the
Exchange when the BSE was
operational.5
The Exchange represents that it would
use this authority to delist on the
grounds that BSE is not currently
operating a listing program and,
therefore, it is in the public interest that
the Exchange not maintain any
appearance of having any listings on the
Exchange as long as programs for listing
and trading cash equities and related
activity have ceased. In addition, prior
to implementing any involuntary
delistings, the Exchange represented
that it will contact each company and
suggest that it file a Form 25 to effect a
voluntary delisting before the Exchange
issues any delisting determination.
Thereafter, the Exchange will move to
delist those companies that do not act
4 As of the date of the Notice, twenty-nine issuers
currently have listings with the Exchange.
5 See infra note 6.
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]]>Agencies
[Federal Register Volume 74, Number 16 (Tuesday, January 27, 2009)]
[Notices]
[Pages 4788-4790]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1670]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59258; File No. SR-BATS-2009-001]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
BATS Rule 11.9, entitled ``Orders and Modifiers''
January 15, 2009.
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 January 12, 2009, BATS Exchange, Inc. (``BATS'' or the
``Exchange'') 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 this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend BATS Rule 11.9, entitled
``Orders and Modifiers,'' to provide Exchange system functionality that
will cancel any portion of a market order submitted to the Exchange (a
``BATS market order'') that would execute at a price that is more than
50 cents or 5 percent worse than the NBBO at the time the order
initially reaches the Exchange (the ``Initial NBBO''), whichever is
greater.
The text of the proposed rule change is available at the Exchange's
Web site at https://www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to protect market
participants
[[Page 4789]]
from executions at prices that are significantly worse than the NBBO at
the time of order entry by providing Exchange system functionality that
will cancel any portion of a BATS market order that would execute at a
price that is 50 cents or 5 percentage points worse than the Initial
NBBO, whichever is greater. Any portion of a BATS market order that
would otherwise execute outside of these thresholds will be immediately
cancelled back to the User.\5\ The Exchange believes that Users who
submit market orders to the Exchange generally intend to receive
executions for the full size of their orders at or near the Initial
NBBO and are not always aware that there may not be enough liquidity at
that price to fill the entire size of their orders. The Exchange
believes that the market order thresholds proposed in this rule filing
will help avoid executions of BATS market orders at prices that are
significantly worse than the Initial NBBO, particularly in thinly-
traded securities. The following example demonstrates how the BATS
market order thresholds would operate:
---------------------------------------------------------------------------
\5\ As defined in Exchange Rule 1.5(bb).
---------------------------------------------------------------------------
A User submits a routable BATS market order \6\ (i.e., not
designated as a ``BATS Only'' order) to buy 1,000 shares of ABC;
---------------------------------------------------------------------------
\6\ If the order is not routable then it would be executed on
the Exchange only if such executions would not trade through the
protected quotations of other market centers. If the order is a
routable order, then such order will be executed in accordance with
BATS Rule 11.13(a), however, orders will not be routed away for
execution at prices outside of the market order thresholds proposed
in this rule filing, which applies both to market orders executed on
the Exchange and to market orders that are to be routed away.
---------------------------------------------------------------------------
The Initial NBBO in security ABC is $8.00 (bid) by $8.05
(offer), 100 shares each, both published by ``Market Center A'';
The Exchange has 100 shares of liquidity at the $8.05
offer price and also has resting orders on its book to sell 100 shares
at $8.15, 100 shares at $8.20 and 1,000 shares at $8.60; and
Other than the $8.05 offer published by Market Center A
there are no offers to sell the security at or between $8.05 and $8.60
at other market centers.
Under the circumstances described above, with the Initial NBBO of $8.00
(bid) by $8.05 (offer), the BATS market order would be executed as
follows:
100 shares executed at the $8.05 price on the Exchange;
900 shares routed to Market Center A as an immediate or
cancel order with a price of $8.05;
100 shares executed at Market Center A (presuming this
offer was still available and there was no additional non-displayed
liquidity at that price);
800 shares returned to the Exchange;
100 shares executed at the Exchange at the $8.15 price
level;
100 shares executed at the Exchange at the $8.20 price
level.
Under this example, 400 shares of the BATS market order would be
executed. The remaining 600 shares of the BATS market order would be
cancelled back to the User because the liquidity on the Exchange at the
$8.60 price level exceeds the BATS market order thresholds set forth in
proposed Rule 11.9(a)(2), and such order is not eligible for routing
outside of such thresholds. Such BATS market order could only be
executed or routed by the Exchange up to and including a price of $8.55
($0.50 worse than the Initial NBBO).
For those Users who intend to trade against liquidity at multiple
price points from the Initial NBBO beyond the BATS market order
thresholds proposed in this rule filing, those Users can clearly and
unambiguously specify that intent by submitting a marketable limit
order to the Exchange. For example, using the scenario described above,
if the User submitted a limit order to buy 1,000 shares of security ABC
with a limit price of $9.00, such order would be executed up to its
full size, either on the Exchange (provided that the Exchange would not
trade through protected quotations) or at away market centers if the
order was routable.
2. Statutory Basis
The Exchange believes the proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b).\7\ In particular, for the
reasons described above, the proposed change is consistent with Section
6(b)(5) of the Act,\8\ because it would promote just and equitable
principles of trade, remove impediments to, and perfect the mechanism
of, a free and open market and a national market system, and, in
general, protect investors and the public interest, by helping to avoid
executions of market orders on the Exchange at prices that are
significantly worse than the NBBO at the time an order is initially
received by the Exchange. The Exchange believes that the Initial NBBO
is a fair representation of then-available prices and accordingly
provides for an appropriate pricing mechanism such that BATS market
orders should not be executed at a significantly worse price. Also, the
Exchange believes that this proposal is consistent with existing
exchange rules that allow for the breaking of trades deemed clearly
erroneous by reference to objective thresholds away from the NBBO.\9\
Accordingly, the modifications to BATS Rule 11.9 promote just and
equitable principles of trade, remove impediments to, and perfect the
mechanism of, a free and open market and a national market system.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ See, e.g., NASDAQ Rule 11890. 11890.
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A. Self-Regulatory Organization's Statement of Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
B. Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Changes Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
i. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ 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 requested that the
Commission waive the 30-day operative delay so that the proposal may
become operative upon filing. The Commission believes that waiving the
30-day operative delay is consistent with the
[[Page 4790]]
protection of investors and the public interest because such waiver
will allow BATS Users to immediately benefit from the protections
provided by BATS market orders. The Commission hereby grants the
Exchange's request and designates the proposal operative upon
filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. The Exchange has satisfied this notice requirement.
\13\ Id.
\14\ For the 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 may summarily abrogate 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.
ii. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Comments may be submitted by any of the
following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-BATS-2009-001 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-BATS-2009-001. This file
number should be included on the subject line if e-mail 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 (https://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 changes 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of BATS. 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-BATS-2009-001 and should be
submitted on or before February 17, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-1670 Filed 1-26-09; 8:45 am]
BILLING CODE 8011-01-P
