Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc., 22786-22788 [E9-11264]

Download as PDF 22786 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEAmex–2009–16 on the subject line. Paper Comments pwalker on PROD1PC71 with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–11227 Filed 5–13–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59890; File No. SR–BATS– 2009–010] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. May 7, 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 April 30, All submissions should refer to File 2009, BATS Exchange, Inc. (‘‘BATS’’ or Number SR–NYSEAmex–2009–16. This the ‘‘Exchange’’) filed with the file number should be included on the Securities and Exchange Commission subject line if e-mail is used. To help the (‘‘Commission’’) the proposed rule Commission process and review your change as described in Items I, II and III comments more efficiently, please use below, which Items have been prepared only one method. The Commission will by the Exchange. BATS has designated post all comments on the Commission’s the proposed rule change as one Internet Web site (https://www.sec.gov/ establishing or changing a member due, rules/sro.shtml). Copies of the fee, or other charge imposed by the submission, all subsequent Exchange under Section 19(b)(3)(A)(ii) amendments, all written statements of the Act 3 and Rule 19b–4(f)(2) with respect to the proposed rule thereunder,4 which renders the change that are filed with the proposed rule change effective upon Commission, and all written filing with the Commission. The communications relating to the Commission is publishing this notice to proposed rule change between the solicit comments on the proposed rule Commission and any person, other than change from interested persons. those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for inspection and copying in the Commission’s Public Reference The Exchange proposes to modify its Room, 100 F Street, NE., Washington, fee schedule applicable to use of the DC 20549, on official business days Exchange. While changes to the fee between the hours of 10 a.m. and 3 p.m. schedule pursuant to this proposal will Copies of such filing also will be be effective upon filing, the changes will available for inspection and copying at become operative on May 1, 2009. the principal office of the Exchange. All The text of the proposed rule change comments received will be posted is available at the Exchange’s Web site without change; the Commission does at https://www.batstrading.com, at the not edit personal identifying principal office of the Exchange, and at information from submissions. You the Commission’s Public Reference should submit only information that Room. you wish to make publicly available. All submissions should refer to File 7 17 CFR 200.30–3(a)(12). Number SR–NYSEAmex–2009–16 and 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. should be submitted on or before June 3 15 U.S.C. 78s(b)(3)(A)(ii). 4, 2009. 4 17 VerDate Nov<24>2008 17:37 May 13, 2009 Jkt 217001 PO 00000 CFR 240.19b–4(f)(2). Frm 00061 Fmt 4703 Sfmt 4703 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 Exchange proposes to modify its fee schedule applicable to use of the Exchange effective May 1, 2009, in order to: (i) Charge a consistent fee of $0.0025 per share for trades that remove liquidity in securities priced $1.00 or above and provide a consistent rebate of $0.0024 per share to Members who add displayed liquidity in securities priced $1.00 or above; (ii) change the securities for which the Exchange does not pay a rebate for adding liquidity to all securities priced below $1.00, rather than securities priced below $5.00, and eliminate the rebate of $0.0001 per share for trades that remove liquidity in securities priced below $5.00; (iii) decrease the fee charged by the Exchange for its ‘‘CYCLE’’ routing strategy from $0.0026 per share to $0.0025 per share and modify the routing fee for securities priced below $1.00; and (iv) change from a fee of $0.0005 per share to a rebate of $0.0001 per share for Modified Destination Specific Orders routed to a dark liquidity venue. Each of these proposed changes is described in further detail below. (i) Fees and Rebates for Securities Priced $1.00 or Above The Exchange currently charges a fee of $0.0025 per share for trades that remove liquidity in securities priced $5.00 or above, and proposes to change this fee so that it instead applies to trades that remove liquidity in securities priced $1.00 or above. The Exchange currently provides rebates for securities priced $5.00 or above of $0.0023 per share to Members who add displayed liquidity in Tape A and C securities, and $0.0028 per share to Members who add displayed in Tape B securities. The Exchange proposes to E:\FR\FM\14MYN1.SGM 14MYN1 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices change this structure so that it instead provides a consistent rebate of $0.0024 per share to Members who add displayed liquidity in all securities priced $1.00 or above. The Exchange does not propose to change the rebate provided for non-displayed liquidity added to the BATS Book, which is currently $0.0020 per share for Tapes A, B, and C. However, because the rebate for displayed liquidity, as proposed, will now apply to all securities rather than having a different rebate for Tape B securities, the Exchange proposes eliminating the reference to Tapes A, B, and C in connection with non-displayed liquidity as such reference is no longer necessary. (ii) Securities Priced Below $1.00 Currently, the Exchange does not pay a rebate to Members who add liquidity in securities priced below $5.00. The Exchange proposes to increase the number of securities to which a rebate applies by changing to a no-rebate structure for liquidity adders in securities priced below $1.00. The Exchange also proposes to eliminate the rebate of $0.0001 per share for trades that remove liquidity in securities priced below $5.00, and instead, to allow Members to remove liquidity in securities priced below $1.00 without a charge. (iii) Standard Routing Fee and Routing Fee for Securities Priced Below $1.00 The Exchange proposes to decrease the fee charged by the Exchange for its CYCLE routing strategy 5 from $0.0026 per share to $0.0025 per share. To be consistent with this change, the Exchange proposes to charge 0.25%, rather than 0.26%, of the total dollar value of the execution for any security (all Tapes) priced under $1.00 per share that is routed away from the Exchange. pwalker on PROD1PC71 with NOTICES (iv) Dark Scan Rebate Finally, the Exchange proposes to change its fee structure for Modified Destination Specific Orders routed to a dark liquidity venue (referred to by the Exchange as ‘‘Dark Scan’’). Rather than charging a fee for Dark Scan orders, which is currently $0.0005, the Exchange proposes to provide a rebate of $0.0001. Because this change is a change from a fee to a rebate, the Exchange proposes changing the heading of the applicable section to 5 The CYCLE routing strategy routes orders to any market center or execution venue other than a dark liquidity pool. Orders are routed to dark liquidity pools through the Exchange’s DART routing strategy. Orders executed through DART cost $0.0020 per share, which the Exchange has not proposed to change at this time. VerDate Nov<24>2008 17:37 May 13, 2009 Jkt 217001 ‘‘Other Non-Standard Routing Options,’’ rather than referring to ‘‘Other NonStandard Routing Charges’’. 2. Statutory Basis The Exchange believes that the proposed rule change 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 of the Act.6 Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,7 in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and other persons using any facility or system which the Exchange operates or controls. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. The Exchange believes that its fees and rebates are competitive with those charged by other venues and that the changes it has proposed will simplify the Exchange’s pricing model. Finally, the Exchange believes that the proposed rates are equitable in that they apply uniformly to all Members. 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 on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has been designated as a fee change pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b–4(f)(2) thereunder,9 because it establishes or changes a due, fee or other charge imposed on members by the Exchange. Accordingly, the proposal is effective upon filing with the Commission. 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 6 15 U.S.C. 78f. U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). 7 15 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 22787 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 rulecomments@sec.gov. Please include File No. SR–BATS–2009–010 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–2009–010. 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–2009–010 and should be submitted on or before June 4, 2009. E:\FR\FM\14MYN1.SGM 14MYN1 22788 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–11264 Filed 5–13–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59885; File No. SR-FINRA– 2009–015] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Proposed Rule Change Relating to Expedited Administration of Promissory Note Cases May 7, 2009. 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 April 17, 2009, 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 Rule 13806 of the Code of Arbitration Procedure for Industry Disputes (‘‘Industry Code’’), to establish procedures to expedite the administration of arbitrations in which a member’s only claim is that an associated person failed to pay money owed on a promissory note; and to amend Rules 13214 and 13600 of the Industry Code to make conforming changes. The text of the proposed rule change is available on FINRA’s Web site at https://www.finra.org, at the principal office of FINRA and at the Commission’s Public Reference Room. pwalker on PROD1PC71 with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Nov<24>2008 17:37 May 13, 2009 Jkt 217001 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. FINRA 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 FINRA is proposing to amend the Industry Code to establish new procedures to expedite the administration of promissory note cases. Proposed new Rule 13806 would apply to arbitrations solely involving a member’s claim that an associated person failed to pay money owed on a promissory note. In order to proceed under the new rule, a claimant would not be permitted to include any additional allegations in the Statement of Claim. FINRA is also proposing to amend Rules 13214 and 13600 of the Industry Code to make conforming changes. In the absence of additional allegations by members or associated persons, promissory note cases involve straightforward contracts with few documents being entered into evidence. The new procedures would streamline the process for promissory note cases and reduce expenses for the parties while maintaining the procedural safeguards in the Industry Code for the associated person against whom a member asserts a claim. Specifically, under the proposed procedures: • Parties would choose a single public arbitrator from the roster of arbitrators approved to hear statutory discrimination claims,3 unless an associated person files a counterclaim or third party claim of more than $100,000, exclusive of interest or expenses, or the counterclaim or third party claim is unspecified or does not request money damages.4 FINRA believes that the 3 See Rule 13802(c)(3). These specially qualified arbitrators are attorneys familiar with employment law who have at least ten years of legal experience. In addition, a chair or single arbitrator may not have represented primarily the views of employers or of employees within the last five years. Primarily means 50 percent or more of the arbitrator’s business or professional activities within the last five years. 4 The $100,000 threshold was chosen because FINRA recently raised the threshold for a single chair-qualified arbitrator in all cases to $100,000. Under the rule change, if the amount of a claim is more than $100,000, exclusive of interest and expenses, or is unspecified, or if the claim does not PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 arbitrators on this roster would be especially suited to resolve these disputes because of the depth of their experience and their familiarity with employment law; • If the associated person does not file an answer, simplified discovery procedures would apply 5 and, regardless of the amount in controversy, the single arbitrator would render an award based on the pleadings and other materials submitted by the parties. The arbitrator would be paid an honorarium of $125 for each arbitration resolved in this manner;6 • If the associated person files an answer (but does not seek any additional relief or assert any counterclaims or third party claims), regular discovery procedures would apply 7 and, regardless of the amount in controversy, the single arbitrator would hold a hearing; and • If the associated person files a counterclaim or third party claim, then regular discovery procedures would apply and panel composition would be based on the amount of the counterclaim or third party claim. If the counterclaim and/or third party claim is not more than $100,000, exclusive of interest and expenses, the Director 8 would appoint a single public arbitrator from the roster of arbitrators approved to hear statutory discrimination claims. If the counterclaim and/or third party claim is more than $100,000, exclusive of interest and expenses, then the Director would appoint a threearbitrator panel. The Director would appoint one public arbitrator from the roster of arbitrators approved to hear statutory discrimination claims who would serve as chairperson, one arbitrator from the public roster, and one arbitrator from the non-public roster. If the counterclaim or third party claim is filed after a single arbitrator is appointed, and a three-arbitrator panel is required, the Director would retain request money damages, the panel will consist of three arbitrators, unless the parties agree in writing to one arbitrator. See Exchange Act Release No. 59340 (February 2, 2009), 74 FR 6335 (February 6, 2009) (SR–FINRA–2008–047). 5 Rule 13800(d) (Simplified Arbitration— Discovery and Additional Evidence) provides for limited discovery in arbitrations involving $25,000 or less, exclusive of interest and expenses. 6 In simplified arbitration proceedings administered under Rules 12800 and 13800 (Simplified Arbitration), the arbitrator honorarium is $125. The honorarium under proposed Rule 13806 is intended to be consistent with these rules. 7 The 13500 series of rules would provide for prehearing procedures and discovery in these cases. 8 Rule 13100(k) defines the term ‘‘Director’’ to mean the ‘‘Director of FINRA Dispute Resolution. Unless the Code provides that the Director may not delegate a specific function, the term includes FINRA staff to whom the Director has delegated authority.’’ E:\FR\FM\14MYN1.SGM 14MYN1

Agencies

[Federal Register Volume 74, Number 92 (Thursday, May 14, 2009)]
[Notices]
[Pages 22786-22788]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-11264]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59890; File No. SR-BATS-2009-010]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Related to 
Fees for Use of BATS Exchange, Inc.

 May 7, 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 April 30, 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, II 
and III below, which Items have been prepared by the Exchange. BATS 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 proposes to modify its fee schedule applicable to use 
of the Exchange. While changes to the fee schedule pursuant to this 
proposal will be effective upon filing, the changes will become 
operative on May 1, 2009.
    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 Exchange proposes to modify its fee schedule applicable to use 
of the Exchange effective May 1, 2009, in order to: (i) Charge a 
consistent fee of $0.0025 per share for trades that remove liquidity in 
securities priced $1.00 or above and provide a consistent rebate of 
$0.0024 per share to Members who add displayed liquidity in securities 
priced $1.00 or above; (ii) change the securities for which the 
Exchange does not pay a rebate for adding liquidity to all securities 
priced below $1.00, rather than securities priced below $5.00, and 
eliminate the rebate of $0.0001 per share for trades that remove 
liquidity in securities priced below $5.00; (iii) decrease the fee 
charged by the Exchange for its ``CYCLE'' routing strategy from $0.0026 
per share to $0.0025 per share and modify the routing fee for 
securities priced below $1.00; and (iv) change from a fee of $0.0005 
per share to a rebate of $0.0001 per share for Modified Destination 
Specific Orders routed to a dark liquidity venue. Each of these 
proposed changes is described in further detail below.
(i) Fees and Rebates for Securities Priced $1.00 or Above
    The Exchange currently charges a fee of $0.0025 per share for 
trades that remove liquidity in securities priced $5.00 or above, and 
proposes to change this fee so that it instead applies to trades that 
remove liquidity in securities priced $1.00 or above.
    The Exchange currently provides rebates for securities priced $5.00 
or above of $0.0023 per share to Members who add displayed liquidity in 
Tape A and C securities, and $0.0028 per share to Members who add 
displayed in Tape B securities. The Exchange proposes to

[[Page 22787]]

change this structure so that it instead provides a consistent rebate 
of $0.0024 per share to Members who add displayed liquidity in all 
securities priced $1.00 or above. The Exchange does not propose to 
change the rebate provided for non-displayed liquidity added to the 
BATS Book, which is currently $0.0020 per share for Tapes A, B, and C. 
However, because the rebate for displayed liquidity, as proposed, will 
now apply to all securities rather than having a different rebate for 
Tape B securities, the Exchange proposes eliminating the reference to 
Tapes A, B, and C in connection with non-displayed liquidity as such 
reference is no longer necessary.
(ii) Securities Priced Below $1.00
    Currently, the Exchange does not pay a rebate to Members who add 
liquidity in securities priced below $5.00. The Exchange proposes to 
increase the number of securities to which a rebate applies by changing 
to a no-rebate structure for liquidity adders in securities priced 
below $1.00. The Exchange also proposes to eliminate the rebate of 
$0.0001 per share for trades that remove liquidity in securities priced 
below $5.00, and instead, to allow Members to remove liquidity in 
securities priced below $1.00 without a charge.
(iii) Standard Routing Fee and Routing Fee for Securities Priced Below 
$1.00
    The Exchange proposes to decrease the fee charged by the Exchange 
for its CYCLE routing strategy \5\ from $0.0026 per share to $0.0025 
per share. To be consistent with this change, the Exchange proposes to 
charge 0.25%, rather than 0.26%, of the total dollar value of the 
execution for any security (all Tapes) priced under $1.00 per share 
that is routed away from the Exchange.
---------------------------------------------------------------------------

    \5\ The CYCLE routing strategy routes orders to any market 
center or execution venue other than a dark liquidity pool. Orders 
are routed to dark liquidity pools through the Exchange's DART 
routing strategy. Orders executed through DART cost $0.0020 per 
share, which the Exchange has not proposed to change at this time.
---------------------------------------------------------------------------

(iv) Dark Scan Rebate
    Finally, the Exchange proposes to change its fee structure for 
Modified Destination Specific Orders routed to a dark liquidity venue 
(referred to by the Exchange as ``Dark Scan''). Rather than charging a 
fee for Dark Scan orders, which is currently $0.0005, the Exchange 
proposes to provide a rebate of $0.0001. Because this change is a 
change from a fee to a rebate, the Exchange proposes changing the 
heading of the applicable section to ``Other Non-Standard Routing 
Options,'' rather than referring to ``Other Non-Standard Routing 
Charges''.
2. Statutory Basis
    The Exchange believes that the proposed rule change 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 of the Act.\6\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\7\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using any facility or system which the 
Exchange operates or controls. The Exchange notes that it operates in a 
highly competitive market in which market participants can readily 
direct order flow to competing venues if they deem fee levels at a 
particular venue to be excessive. The Exchange believes that its fees 
and rebates are competitive with those charged by other venues and that 
the changes it has proposed will simplify the Exchange's pricing model. 
Finally, the Exchange believes that the proposed rates are equitable in 
that they apply uniformly to all Members.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 on the Proposed 
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received.

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

    The foregoing proposed rule change has been designated as a fee 
change pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) thereunder,\9\ because it establishes or changes a due, fee or 
other charge imposed on members by the Exchange. Accordingly, the 
proposal is effective upon filing with the Commission.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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-2009-010 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-2009-010. 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-2009-010 and should be submitted on or 
before June 4, 2009.


[[Page 22788]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-11264 Filed 5-13-09; 8:45 am]
BILLING CODE 8010-01-P
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