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., 27581-27583 [E9-13553]

Download as PDF Federal Register / Vol. 74, No. 110 / Wednesday, June 10, 2009 / Notices applicable to a national securities exchange and, in particular, the requirements of Section 6(b) of the Act.5 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 6 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change 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 7 and Rule 19b– 4(f)(6) thereunder.8 A proposed rule change filed pursuant to Rule 19b–4(f)(6) under the Act 9 normally does not become operative for 30 days after the date of its filing. However, Rule 19b–4(f)(6) 10 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. CBOE requests that the Commission waive the 30-day operative delay because the acceleration of the operative date is consistent with the protection of investors and the public interest. The Commission believes that 5 15 U.S.C. 78(f)(b). U.S.C. 78(f)(b)(5). 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has determined to waive the five-day pre-filing period in this case. 9 17 CFR 240.19b–4(f)(6). 10 17 CFR 240.19b–4(f)(6). waiving the 30-day operative delay 11 is consistent with the protection of investors and the public interest and designates the proposal operative upon filing. 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.12 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–CBOE–2009–032 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 Number SR–CBOE–2009–032. 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 change between the Commission and any person, other than those that may be withheld from the public in accordance with the erowe on PROD1PC63 with NOTICES 6 15 VerDate Nov<24>2008 15:18 Jun 09, 2009 Jkt 217001 11 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 12 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on June 2, 2009, the date on which CBOE submitted Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 27581 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 the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–CBOE–2009–032 and should be submitted on or before July 1, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–13569 Filed 6–9–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60041; File No. SR–BATS– 2009–017] 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. June 3, 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 May 28, 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 BATS. 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 13 17 CFR 200.30–3(a)(12). 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). 1 15 E:\FR\FM\10JNN1.SGM 10JNN1 27582 Federal Register / Vol. 74, No. 110 / Wednesday, June 10, 2009 / Notices change, as amended, from interested persons. 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 June 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 erowe on PROD1PC63 with NOTICES 1. Purpose The Exchange proposes to modify its fee schedule applicable to use of the Exchange effective June 1, 2009, in order to (i) implement pricing for its recently introduced BATS Optional Liquidity Technology (‘‘BOLT’’) program; and (ii) increase the fee charged by the Exchange for Destination Specific Orders for Tape A and C securities routed to NYSE Arca from $0.0027 per share to $0.0030 per share. Each of these proposals is discussed in further detail below. (i) BOLT Pricing On May 22, 2009, the Exchange adopted changes to BATS Rules 11.9 and 11.13 pursuant to an immediately effective rule filing that will permit the Exchange to offer both a ‘‘BATS Only BOLT Order’’ and a pre-routing processing method (‘‘BOLT Routing’’) that will each include an optional display period through which a marketable order will be displayed to Exchange Users (and market data recipients) for a brief period of time designated by the Exchange (the VerDate Nov<24>2008 15:18 Jun 09, 2009 Jkt 217001 ‘‘variable BOLT display period’’) for potential execution.5 As explained in more detail below, with the exception of orders subject to BOLT Routing that are executed on the Exchange during the variable BOLT display period, BATS Only BOLT Orders and orders subject to BOLT Routing will be charged fees and will receive rebates consistent with all other orders executed on the Exchange or routed from the Exchange to away trading centers. BATS Only BOLT Orders in securities priced at any limit price will be treated in the same manner as other such orders submitted to the Exchange. Thus, to the extent a BATS Only BOLT Order removes liquidity from the BATS Book in securities priced $1.00 or above it will be charged the Exchange’s standard fee for removing liquidity from the BATS Book ($0.0025 per share); to the extent a BATS Only BOLT Order adds liquidity to the BATS Book in securities priced $1.00 or above it will receive the Exchange’s standard $0.0024 per share rebate for adding liquidity. Similarly, BATS Only BOLT Orders in securities priced below $1.00 will be treated in the same manner as all other such orders priced below $1.00 submitted to the Exchange. Specifically, for executions on the Exchange, the Exchange does not propose to provide any rebates for BATS Only BOLT Orders that add liquidity to the BATS Book in securities priced below $1.00 nor does the Exchange propose to charge a fee for BATS Only BOLT Orders that remove liquidity in securities priced below $1.00. Orders subject to BOLT Routing in securities priced below $1.00 will also be treated in the same manner as all other such orders priced below $1.00 submitted to the Exchange (i.e., no rebate and no charge). With respect to orders subject to BOLT Routing in securities priced below $1.00 that are routed and executed at an away trading center, such orders will be charged fees applicable to all other routed orders in securities priced below $1.00 (e.g., $0.0020 charge per share for shares executed at a dark liquidity venue, or ‘‘DART’’ routing; 0.25% charge of the total dollar value for executions occurring through CYCLE or RECYCLE routing). Thus, as set forth above, the Exchange has not proposed any changes to its fee schedule related to BATS Only BOLT Orders priced at any limit price, or orders subject to BOLT Routing in securities priced below $1.00. To the extent an order subject to BOLT Routing removes liquidity from the BATS Book prior to entering the variable BOLT display period in securities priced $1.00, such order will be charged the Exchange’s standard fee for removing liquidity from the BATS Book ($0.0025 per share). In addition, orders subject to BOLT Routing in securities priced $1.00 or above that are routed and executed at an away trading center after the variable BOLT display period will be charged the Exchange’s standard routing fees. Thus, the Exchange has not proposed any changes to its fee schedule for orders subject to BOLT Routing that remove liquidity from the BATS Book or that execute after routing to an away trading center. However, with respect to orders subject to BOLT Routing that execute on the Exchange during the pre-routing variable BOLT display period, the Exchange proposes to pay Members a $0.0015 per share rebate. The Exchange proposes to reflect this new rebate on the revised fee schedule. As explained in the Exchange’s rule filing, the Exchange expects to have technological changes in place to support the proposed rule change on or about June 5, 2009. Accordingly, although the changes to the fee schedule proposed in this filing will become operative on June 1, 2009, the fees and rebates applicable to BOLT will not be charged or paid to Members until BOLT is implemented by the Exchange. 5 See SR–BATS–2009–014 (May 22, 2009), available at https://www.batstrading.com/regulation/ rule_filings/. 6 See NYSE Arca Client Notice (May 19, 2009), available at https://www.nyse.com/pdfs/ NYSEArca_Fee_Notice_6109.pdf. PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 (ii) BATS + NYSE ARCA Destination Specific Orders The Exchange currently charges a consistent, discounted fee for Destination Specific Orders routed to certain of the largest market centers measured by volume (NYSE, NYSE Arca and NASDAQ), which, in each instance is $0.0001 less per share for orders routed to such market centers by the Exchange than such market centers currently charge for removing liquidity (referred to by the Exchange as ‘‘One Under’’ pricing). NYSE Arca recently announced an increase to its liquidity removal fee from $0.0028 per share to $0.0030 per share in Tape A and Tape C securities.6 In order to maintain its One Under pricing with respect to Destination Specific Orders routed to NYSE Arca, BATS proposes to charge $0.0029 per share for BATS + NYSE ARCA Destination Specific Orders executed at NYSE Arca in Tape A or Tape C securities. The Exchange’s ‘‘One Under’’ pricing does not apply to E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 74, No. 110 / Wednesday, June 10, 2009 / Notices securities priced below $1.00 nor does it apply to odd lot orders routed to NYSE Arca; such order types will continue to be priced as set forth on the Exchange’s fee schedule. In addition, the Exchange will maintain the pricing currently charged by the Exchange for BATS + NYSE ARCA Destination Specific Orders for Tape B securities and for all other Destination Specific Orders. 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.7 Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,8 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. Finally, the Exchange believes that the proposed rates are equitable in that they apply uniformly to all Members. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change imposes any burden on competition. erowe on PROD1PC63 with NOTICES 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 9 and Rule 19b–4(f)(2) thereunder,10 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 7 15 U.S.C. 78f. U.S.C. 78f(b)(4). 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(2). 8 15 VerDate Nov<24>2008 15:18 Jun 09, 2009 Jkt 217001 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 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–BATS–2009–017 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 Number SR–BATS–2009–017. 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 change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for 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 the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–BATS–2009–017 and PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 27583 should be submitted on or before July 1, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–13553 Filed 6–9–09; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration Office of Hazardous Materials Safety; Notice of Application for Special Permits AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: List of applications for special permits. SUMMARY: In accordance with the procedures governing the application for, and the processing of, special permits from the Department of Transportation’s Hazardous Material Regulations (49 CFR Part 107, Subpart B), notice is hereby given that the Office of Hazardous Materials Safety has received the application described herein. Each mode of transportation for which a particular special permit is requested is indicated by a number in the ‘‘Nature of Application’’ portion of the table below as follows: 1—Motor vehicle, 2—Rail freight, 3—Cargo vessel, 4—Cargo aircraft only, 5—Passengercarrying aircraft. DATES: Comments must be received on or before July 10, 2009. ADDRESSES: Address Comments to: Record Center, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, Washington, DC 20590. Comments should refer to the application number and be submitted in triplicate. If confirmation of receipt of comments is desired, include a selfaddressed stamped postcard showing the special permit number. FOR FURTHER INFORMATION CONTACT: Copies of the applications are available for inspection in the Records Center, East Building, PHH–30, 1200 New Jersey Avenue, Southeast, Washington DC or at https://fdms.gov. This notice of receipt of applications for special permit is published in accordance with Part 107 of the Federal hazardous materials transportation law (49 U.S.C. 5117(b); 49 CFR 1.53(b)). 11 17 E:\FR\FM\10JNN1.SGM CFR 200.30–3(a)(12). 10JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 110 (Wednesday, June 10, 2009)]
[Notices]
[Pages 27581-27583]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-13553]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60041; File No. SR-BATS-2009-017]

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.

June 3, 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 May 28, 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 BATS. 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

[[Page 27582]]

change, as amended, 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 June 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 June 1, 2009, in order to (i) implement
pricing for its recently introduced BATS Optional Liquidity Technology
(``BOLT'') program; and (ii) increase the fee charged by the Exchange
for Destination Specific Orders for Tape A and C securities routed to
NYSE Arca from $0.0027 per share to $0.0030 per share. Each of these
proposals is discussed in further detail below.
(i) BOLT Pricing
On May 22, 2009, the Exchange adopted changes to BATS Rules 11.9
and 11.13 pursuant to an immediately effective rule filing that will
permit the Exchange to offer both a ``BATS Only BOLT Order'' and a pre-
routing processing method (``BOLT Routing'') that will each include an
optional display period through which a marketable order will be
displayed to Exchange Users (and market data recipients) for a brief
period of time designated by the Exchange (the ``variable BOLT display
period'') for potential execution.\5\ As explained in more detail
below, with the exception of orders subject to BOLT Routing that are
executed on the Exchange during the variable BOLT display period, BATS
Only BOLT Orders and orders subject to BOLT Routing will be charged
fees and will receive rebates consistent with all other orders executed
on the Exchange or routed from the Exchange to away trading centers.
---------------------------------------------------------------------------

\5\ See SR-BATS-2009-014 (May 22, 2009), available at https://www.batstrading.com/regulation/rule_filings/.
---------------------------------------------------------------------------

BATS Only BOLT Orders in securities priced at any limit price will
be treated in the same manner as other such orders submitted to the
Exchange. Thus, to the extent a BATS Only BOLT Order removes liquidity
from the BATS Book in securities priced $1.00 or above it will be
charged the Exchange's standard fee for removing liquidity from the
BATS Book ($0.0025 per share); to the extent a BATS Only BOLT Order
adds liquidity to the BATS Book in securities priced $1.00 or above it
will receive the Exchange's standard $0.0024 per share rebate for
adding liquidity.
Similarly, BATS Only BOLT Orders in securities priced below $1.00
will be treated in the same manner as all other such orders priced
below $1.00 submitted to the Exchange. Specifically, for executions on
the Exchange, the Exchange does not propose to provide any rebates for
BATS Only BOLT Orders that add liquidity to the BATS Book in securities
priced below $1.00 nor does the Exchange propose to charge a fee for
BATS Only BOLT Orders that remove liquidity in securities priced below
$1.00.
Orders subject to BOLT Routing in securities priced below $1.00
will also be treated in the same manner as all other such orders priced
below $1.00 submitted to the Exchange (i.e., no rebate and no charge).
With respect to orders subject to BOLT Routing in securities priced
below $1.00 that are routed and executed at an away trading center,
such orders will be charged fees applicable to all other routed orders
in securities priced below $1.00 (e.g., $0.0020 charge per share for
shares executed at a dark liquidity venue, or ``DART'' routing; 0.25%
charge of the total dollar value for executions occurring through CYCLE
or RECYCLE routing). Thus, as set forth above, the Exchange has not
proposed any changes to its fee schedule related to BATS Only BOLT
Orders priced at any limit price, or orders subject to BOLT Routing in
securities priced below $1.00.
To the extent an order subject to BOLT Routing removes liquidity
from the BATS Book prior to entering the variable BOLT display period
in securities priced $1.00, such order will be charged the Exchange's
standard fee for removing liquidity from the BATS Book ($0.0025 per
share). In addition, orders subject to BOLT Routing in securities
priced $1.00 or above that are routed and executed at an away trading
center after the variable BOLT display period will be charged the
Exchange's standard routing fees. Thus, the Exchange has not proposed
any changes to its fee schedule for orders subject to BOLT Routing that
remove liquidity from the BATS Book or that execute after routing to an
away trading center. However, with respect to orders subject to BOLT
Routing that execute on the Exchange during the pre-routing variable
BOLT display period, the Exchange proposes to pay Members a $0.0015 per
share rebate. The Exchange proposes to reflect this new rebate on the
revised fee schedule.
As explained in the Exchange's rule filing, the Exchange expects to
have technological changes in place to support the proposed rule change
on or about June 5, 2009. Accordingly, although the changes to the fee
schedule proposed in this filing will become operative on June 1, 2009,
the fees and rebates applicable to BOLT will not be charged or paid to
Members until BOLT is implemented by the Exchange.
(ii) BATS + NYSE ARCA Destination Specific Orders
The Exchange currently charges a consistent, discounted fee for
Destination Specific Orders routed to certain of the largest market
centers measured by volume (NYSE, NYSE Arca and NASDAQ), which, in each
instance is $0.0001 less per share for orders routed to such market
centers by the Exchange than such market centers currently charge for
removing liquidity (referred to by the Exchange as ``One Under''
pricing). NYSE Arca recently announced an increase to its liquidity
removal fee from $0.0028 per share to $0.0030 per share in Tape A and
Tape C securities.\6\ In order to maintain its One Under pricing with
respect to Destination Specific Orders routed to NYSE Arca, BATS
proposes to charge $0.0029 per share for BATS + NYSE ARCA Destination
Specific Orders executed at NYSE Arca in Tape A or Tape C securities.
The Exchange's ``One Under'' pricing does not apply to

[[Page 27583]]

securities priced below $1.00 nor does it apply to odd lot orders
routed to NYSE Arca; such order types will continue to be priced as set
forth on the Exchange's fee schedule. In addition, the Exchange will
maintain the pricing currently charged by the Exchange for BATS + NYSE
ARCA Destination Specific Orders for Tape B securities and for all
other Destination Specific Orders.
---------------------------------------------------------------------------

\6\ See NYSE Arca Client Notice (May 19, 2009), available at
https://www.nyse.com/pdfs/NYSEArca_Fee_Notice_6109.pdf.
---------------------------------------------------------------------------

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.\7\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\8\ 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. Finally, the Exchange believes that
the proposed rates are equitable in that they apply uniformly to all
Members.
---------------------------------------------------------------------------

\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on 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 \9\ and Rule 19b-
4(f)(2) thereunder,\10\ 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.
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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 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 rule-comments@sec.gov. Please include
File Number SR-BATS-2009-017 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 Number SR-BATS-2009-017. 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 change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for 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 the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-BATS-2009-017 and should be
submitted on or before July 1, 2009.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-13553 Filed 6-9-09; 8:45 am]
BILLING CODE 8010-01-P

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