Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BATS Rule 11.8, Entitled “Obligations of Market Makers.”, 4990-4992 [E9-1872]
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4990
Federal Register / Vol. 74, No. 17 / Wednesday, January 28, 2009 / Notices
Dated: January 21, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1716 Filed 1–27–09; 8:45 am]
must be submitted within 30 days of
this notice.
Dated: January 21, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1717 Filed 1–27–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
BILLING CODE 8011–01–P
Submission for OMB Review;
Comment Request
SECURITIES AND EXCHANGE
COMMISSION
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Proposed Collection; Comment
Request
sroberts on PROD1PC70 with NOTICES
Extension:
Rule 19d–2; OMB Control No. 3235–0205;
SEC File No. 270–204.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
existing collection of information of
Rule 19d–2 (17 CFR 240.19d–2) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 19d–2 prescribes the form and
content of applications to the
Commission by persons desiring stays of
final disciplinary sanctions and
summary action of self-regulatory
organizations (‘‘SROs’’) for which the
Commission is the appropriate
regulatory agency.
It is estimated that approximately
eight respondents will utilize this
application procedure annually, with a
total burden of 24 hours, based upon
past submissions. The staff estimates
that the average number of hours
necessary to comply with the
requirements of Rule 19d–2 is 3 hours.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Comments regarding the above
information should be directed to the
following persons:
(i) Desk Officer for the Securities and
Exchange Commission, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, New Executive Office
Building, Washington, DC 20503 or by
sending an e-mail to:
Shagufta_Ahmed@omb.eop.gov; and
(ii) Charles Boucher, Director/Chief
Information Officer, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, VA 22312 or send an e-mail
to PRA_Mailbox@sec.gov. Comments
VerDate Nov<24>2008
17:30 Jan 27, 2009
Jkt 217001
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Extension: Form 2–E under Rule 609, SEC
File No. 270–222, OMB Control No.
3235–0233.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘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.
Rule 609 (17 CFR 230.609) under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.) requires small business investment
companies and business development
companies that have engaged in
offerings of securities that are exempt
from registration pursuant to Regulation
E under the Securities Act of 1933 (17
CFR 230.601 to 610a) to report semiannually on Form 2–E (17 CFR 239.201)
the progress of the offering. The form
solicits information such as the dates an
offering has commenced and has been
completed, the number of shares sold
and still being offered, amounts
received in the offering, and expenses
and underwriting discounts incurred in
the offering. This information assists the
staff in determining whether the issuer
has stayed within the limits of an
offering exemption.
Form 2–E must be filed semi-annually
during an offering and as a final report
at the completion of the offering. Less
frequent filing would not allow the
Commission to monitor the progress of
the offering in order to ensure that the
issuer was not attempting to avoid the
normal registration provisions of the
securities laws.
During the calendar year 2008, there
were five filings of Form 2–E by three
respondents. The Commission
estimates, based on its experience with
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disclosure documents generally and
Form 2–E in particular, and based on
informal contacts with the investment
company industry, that the total annual
burden associated with information
collection and Form 2–E preparation
and submission is four hours per filing
or 20 hours for all respondents.
The estimates of average burden hours
are made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
representative survey or study of the
cost of Commission rules and forms.
Written comments are invited on: (a)
Whether the proposed collection of
information is 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 of 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,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: January 22, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1873 Filed 1–27–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59284; File No. SR–BATS–
2009–002]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BATS Rule
11.8, Entitled ‘‘Obligations of Market
Makers.’’
January 23, 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
15, 2009, BATS Exchange, Inc. (‘‘BATS’’
1 15
2 17
E:\FR\FM\28JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
28JAN1
Federal Register / Vol. 74, No. 17 / Wednesday, January 28, 2009 / Notices
or the ‘‘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 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
BATS Rule 11.8, entitled ‘‘Obligations
of Market Makers,’’ to provide Exchange
functionality to Market Makers who
wish to have the Exchange
automatically enter orders on their
behalf in order to comply with the
obligation to maintain continuous twosided limit orders in securities in which
they are registered to trade.
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.
sroberts on PROD1PC70 with NOTICES
(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 provide any Member of the
Exchange that is registered as a Market
Maker with Exchange system
functionality to have the Exchange enter
and maintain on its behalf ‘‘stub quotes’’
(i.e., quotes that are substantially far
away from the Exchange’s best bid or
3 15
U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
VerDate Nov<24>2008
17:30 Jan 27, 2009
Jkt 217001
offer such that they are unlikely to be
executed).5 As part of its Market Maker
obligations, pursuant to BATS Rule
11.8(a)(1), a Market Maker is required to
maintain continuous, two-sided limit
orders in the securities in which the
Market Maker is registered to trade. In
order to assist Exchange Market Makers
with this obligation, the Exchange
proposes to offer functionality through
which Market Makers could choose to
have the Exchange enter and maintain a
limit order on either side of the market
on their behalf. At 9 a.m. Eastern Time,
the Exchange will extract information
submitted by the Market Maker that
provides specific quote instructions for
the Exchange to enter a quote on the
Market Maker’s behalf. Specifically, the
Market Maker would instruct the
Exchange to enter limit orders of
$0.0001 as a bid and $99,999.99 as an
offer in the amount of one round lot
each. Such orders will be posted by the
Exchange as BATS Only Orders,6 and
will be maintained on the Exchange
during Regular Trading Hours 7 unless
cancelled by the Market Maker pursuant
to the Exchange’s Rules.8
According to the Exchange, the
proposed rule change would allow the
Exchange to provide functionality
similar to that provided by both the
Nasdaq Stock Market LLC (‘‘NASDAQ’’)
and NYSE Arca Equities, Inc. (‘‘NYSE
Arca’’) to market makers registered with
such exchanges. In particular, the
Exchange represents that registered
market makers on NASDAQ have the
ability to enter ‘‘stub quotes’’ through
the NASDAQ system in order to ensure
that they are continually meeting their
quoting obligations.9 Similarly, the
Exchange represents that NYSE Arca
provides its registered market makers
with the ability to direct that exchange
to enter orders on their behalf called ‘‘Q
Orders,’’ which automatically refresh in
the NYSE Arca system,10 including
orders that would be considered to be
‘‘stub quotes.’’
Although the Exchange believes that
its registered Market Makers will be at
or near the best bid or offer of the
Exchange during much of the trading
5 As with all BATS quotes, these stub quotes
would be firm quotes and, as such, would be
immediately and automatically executable.
However, to the extent such an execution could be
considered clearly erroneous it would subject to
review under Rule 11.17 (Clearly Erroneous
Executions).
6 As defined in BATS Rule 11.9(c)(4).
7 Defined in BATS Rule 1.5(v) as 9:30 a.m. to 4
p.m. Eastern Time.
8 See BATS Rule 11.9(e).
9 See Securities Exchange Act Release No. 56586
(October 1, 2007), 72 FR 57085 (October 5, 2007)
(SR–NASDAQ–2007–069).
10 See NYSE Arca Rule 7.31(k).
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4991
day, without stub quote functionality,
and due to the speed of the modern
trading environment, some Market
Makers may not have a posted quote on
one or both sides of the market for small
periods of time, even for fractions of a
second. The Exchange believes that the
system functionality provided under the
proposed rule change will provide
Market Makers with a useful tool that
they can utilize to meet their quoting
obligations on the Exchange.
Accordingly, the modifications to BATS
Rule 11.8 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. The
Exchange also believes that the
proposed functionality is similar to that
provided by other national securities
exchanges and permissible under such
exchanges’ approved rules.11
2. Statutory Basis
The rule change proposed in this
submission 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) of the
Act.12 Specifically, the proposed change
is consistent with Section 6(b)(5) of the
Act,13 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 encouraging Market Makers
to register with and trade on the
Exchange by providing such Market
Makers with system functionality that
will assist them in maintaining
continuous, two-sided limit orders in
the securities in which they are
registered.
(B) Self-Regulatory Organization’s
Statement of Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
(C) 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.
11 See,
e.g., NYSE Arca Rule 7.31(k).
U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
12 15
E:\FR\FM\28JAN1.SGM
28JAN1
4992
Federal Register / Vol. 74, No. 17 / Wednesday, January 28, 2009 / Notices
III. Date of Effectiveness of the
Proposed Rule Changes and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 14 and Rule 19b–
4(f)(6) thereunder.15
Rule 19b–4(f)(6)(iii) 16 requires the
Exchange to give the Commission
written notice of the Exchange’s intent
to file a 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 shorter
time as designated by the Commission.
The Exchange has satisfied this
requirement.
As described above and in its filing
with the Commission, the Exchange
believes that the proposed rule change
is consistent with the rules of another
self-regulatory organization. For the
foregoing reasons, this rule filing
qualifies for immediate effectiveness as
a ‘‘non-controversial’’ rule change under
paragraph (f)(6) of Rule 19b–4.17
At any time within 60 days of the
filing of the 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.
IV. 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:
sroberts on PROD1PC70 with NOTICES
Electronic Comments
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–2009–002. 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–2009–002 and should be
submitted on or before February 18,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–1872 Filed 1–27–09; 8:45 am]
BILLING CODE 8011–01–P
• 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–2009–002 on the subject
line.
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 17 CFR 240.19b–4(f)(6).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59273; File No. SR–FINRA–
2008–067]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of
Proposed Rule Change To Adopt Rules
Governing Financial Responsibility in
the Consolidated FINRA Rulebook
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 December
30, 2008, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) (f/k/a
National Association of Securities
Dealers, Inc. (‘‘NASD’’)) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
substantially prepared by FINRA. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to adopt a new,
consolidated set of financial
responsibility rules. Accordingly,
FINRA proposes to adopt FINRA Rules
4110 (Capital Compliance), 4120
(Regulatory Notification and Business
Curtailment), 4130 (Regulation of
Activities of Section 15C Members
Experiencing Financial and/or
Operational Difficulties), 4140 (Audit)
and 4521 (Notifications, Questionnaires
and Reports) in the Consolidated FINRA
Rulebook and to delete NASD Rules
3130 and 3131, NASD IM–3130,
Incorporated NYSE Rules 312(h),
313(d), 325, 326, 328, 416.20, 418, 420,
421 and NYSE Rule Interpretations
313(d)/01, 313(d)/02, 325(c)(1),
325(c)(1)/01 and 416/01. FINRA also
proposes to revise FINRA Rule 9557
(Procedures for Regulating Activities
Under Rules 4110, 4120 and 4130
Regarding a Member Experiencing
Financial or Operational Difficulties)
and FINRA Rule 9559 (Hearing
Procedures for Expedited Proceedings
Under the Rule 9550 Series). Lastly,
FINRA proposes to make conforming
revisions to Section 4(g) of Schedule A
to the FINRA By-Laws.
The text of the proposed rule change
is attached hereto as Exhibit A.
15 17
VerDate Nov<24>2008
17:30 Jan 27, 2009
1 15
18 17
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E:\FR\FM\28JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
28JAN1
]]>Agencies
[Federal Register Volume 74, Number 17 (Wednesday, January 28, 2009)]
[Notices]
[Pages 4990-4992]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1872]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59284; File No. SR-BATS-2009-002]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
BATS Rule 11.8, Entitled ``Obligations of Market Makers.''
January 23, 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 15, 2009, BATS Exchange, Inc. (``BATS''
[[Page 4991]]
or the ``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
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)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend BATS Rule 11.8, entitled
``Obligations of Market Makers,'' to provide Exchange functionality to
Market Makers who wish to have the Exchange automatically enter orders
on their behalf in order to comply with the obligation to maintain
continuous two-sided limit orders in securities in which they are
registered to trade.
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 provide any Member of
the Exchange that is registered as a Market Maker with Exchange system
functionality to have the Exchange enter and maintain on its behalf
``stub quotes'' (i.e., quotes that are substantially far away from the
Exchange's best bid or offer such that they are unlikely to be
executed).\5\ As part of its Market Maker obligations, pursuant to BATS
Rule 11.8(a)(1), a Market Maker is required to maintain continuous,
two-sided limit orders in the securities in which the Market Maker is
registered to trade. In order to assist Exchange Market Makers with
this obligation, the Exchange proposes to offer functionality through
which Market Makers could choose to have the Exchange enter and
maintain a limit order on either side of the market on their behalf. At
9 a.m. Eastern Time, the Exchange will extract information submitted by
the Market Maker that provides specific quote instructions for the
Exchange to enter a quote on the Market Maker's behalf. Specifically,
the Market Maker would instruct the Exchange to enter limit orders of
$0.0001 as a bid and $99,999.99 as an offer in the amount of one round
lot each. Such orders will be posted by the Exchange as BATS Only
Orders,\6\ and will be maintained on the Exchange during Regular
Trading Hours \7\ unless cancelled by the Market Maker pursuant to the
Exchange's Rules.\8\
---------------------------------------------------------------------------
\5\ As with all BATS quotes, these stub quotes would be firm
quotes and, as such, would be immediately and automatically
executable. However, to the extent such an execution could be
considered clearly erroneous it would subject to review under Rule
11.17 (Clearly Erroneous Executions).
\6\ As defined in BATS Rule 11.9(c)(4).
\7\ Defined in BATS Rule 1.5(v) as 9:30 a.m. to 4 p.m. Eastern
Time.
\8\ See BATS Rule 11.9(e).
---------------------------------------------------------------------------
According to the Exchange, the proposed rule change would allow the
Exchange to provide functionality similar to that provided by both the
Nasdaq Stock Market LLC (``NASDAQ'') and NYSE Arca Equities, Inc.
(``NYSE Arca'') to market makers registered with such exchanges. In
particular, the Exchange represents that registered market makers on
NASDAQ have the ability to enter ``stub quotes'' through the NASDAQ
system in order to ensure that they are continually meeting their
quoting obligations.\9\ Similarly, the Exchange represents that NYSE
Arca provides its registered market makers with the ability to direct
that exchange to enter orders on their behalf called ``Q Orders,''
which automatically refresh in the NYSE Arca system,\10\ including
orders that would be considered to be ``stub quotes.''
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 56586 (October 1,
2007), 72 FR 57085 (October 5, 2007) (SR-NASDAQ-2007-069).
\10\ See NYSE Arca Rule 7.31(k).
---------------------------------------------------------------------------
Although the Exchange believes that its registered Market Makers
will be at or near the best bid or offer of the Exchange during much of
the trading day, without stub quote functionality, and due to the speed
of the modern trading environment, some Market Makers may not have a
posted quote on one or both sides of the market for small periods of
time, even for fractions of a second. The Exchange believes that the
system functionality provided under the proposed rule change will
provide Market Makers with a useful tool that they can utilize to meet
their quoting obligations on the Exchange. Accordingly, the
modifications to BATS Rule 11.8 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. The Exchange also
believes that the proposed functionality is similar to that provided by
other national securities exchanges and permissible under such
exchanges' approved rules.\11\
---------------------------------------------------------------------------
\11\ See, e.g., NYSE Arca Rule 7.31(k).
---------------------------------------------------------------------------
2. Statutory Basis
The rule change proposed in this submission 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) of the Act.\12\ Specifically, the
proposed change is consistent with Section 6(b)(5) of the Act,\13\
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 encouraging Market Makers to register with and
trade on the Exchange by providing such Market Makers with system
functionality that will assist them in maintaining continuous, two-
sided limit orders in the securities in which they are registered.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement of Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
(C) 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.
[[Page 4992]]
III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
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Rule 19b-4(f)(6)(iii) \16\ requires the Exchange to give the
Commission written notice of the Exchange's intent to file a 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 shorter time as designated by the
Commission. The Exchange has satisfied this requirement.
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\16\ 17 CFR 240.19b-4(f)(6)(iii).
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As described above and in its filing with the Commission, the
Exchange believes that the proposed rule change is consistent with the
rules of another self-regulatory organization. For the foregoing
reasons, this rule filing qualifies for immediate effectiveness as a
``non-controversial'' rule change under paragraph (f)(6) of Rule 19b-
4.\17\
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\17\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of the 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.
IV. 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-2009-002 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-2009-002. 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-2009-002 and should be
submitted on or before February 18, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-1872 Filed 1-27-09; 8:45 am]
BILLING CODE 8011-01-P
