Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Its New Sponsored Access Risk Management Tool Service, 34068-34070 [E9-16576]
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34068
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16545 Filed 7–13–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60251; File No. SR–NYSE–
2009–55]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Accelerated Approval to a
Proposed Rule Change Amending Rule
70.25 To Permit All Available ContraSide Liquidity To Trigger the Execution
of a d-Quote
July 7, 2009.
On June 2, 2009, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’)1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend Rule 70.25 to permit all available
contra-side liquidity to trigger the
execution of a d-Quote. The proposed
rule change was published for comment
in the Federal Register on June 11,
2009.3 The Commission received no
comments regarding the proposal. This
order approves the proposed rule
change on an accelerated basis.
The Exchange proposes to amend
Rule 70.25 to expand the categories of
liquidity that would be considered
when determining whether the contraside volume is within the discretionary
size range of the d-Quote.4 Currently,
only displayed interest is considered by
Exchange systems in determining
whether the d-Quote is triggered. Under
the proposed rule change, all available
contra-side interest at a possible
execution price of the d-Quote,
including undisplayed liquidity, would
be considered.
In its filing, the Exchange stated that
this rule change would provide Floor
brokers with a similar functionality that
was previously available to Floor
13 17
mstockstill on DSKH9S0YB1PROD with NOTICES
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 60045
(June 4, 2009), 74 FR 27854 (‘‘Notice’’).
4 A d-Quote is an e-Quote for which a Floor
Broker enters discretionary instructions as to size
and/or price. See NYSE Rule 70.25(a)(i). An e-Quote
is a broker agency interest file that a Floor broker
places within the Display Book system. See NYSE
Rule 70(a)(i).
brokers with a CAP–DI order under
former Rule 123A.30(a).5 Under that
former rule, an elected CAP–DI order
would automatically execute against
any contra-side volume available at the
electing price, and was eligible to
participate in a sweep.6 The Exchange
also noted that, at the time the CAP
order was eliminated, the Exchange did
not have the technology to replicate a
similar functionality with d-Quotes.7
Since that time, the Exchange has
introduced two new order types, the
Minimum Display Reserve Order, and
the Non-Displayed Reserve Order.8 With
the proposed rule change, these two
order types would be considered when
determining whether there is sufficient
contra-side volume to trigger a d-Quote.
The Commission has carefully
reviewed the proposed rule change and
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange 9 including, in
particular, Section 6(b)(5) of the Act,10
which requires that an exchange have
rules designed to promote just and
equitable principles of trade, to 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.
Because it would provide a d-Quote
with access to both displayed and
undisplayed liquidity, the proposed rule
change benefits Floor brokers by
allowing their d-Quotes to be triggered
more often. This proposal should also
benefit customers by providing them
with more opportunities to have their
non-displayed reserve orders receive
executions.
The Commission also finds good
cause to approve the proposed rule
change prior to the thirtieth day after
publication in the Federal Register.
The Commission notes that no
comments were received during the 21day comment period. The Commission
believes that the Exchange has provided
reasonable support for its representation
that the proposed rule change provides
Floor brokers with a functionality
similar to that previously available with
CAP–DI orders. In addition, the
potential benefits of this proposal to
5 See
1 15
VerDate Nov<24>2008
17:50 Jul 13, 2009
Jkt 217001
Notice at 27855.
customers, such as the increased
opportunities for the execution of
customer non-displayed reserve orders,
would be available sooner by approving
this proposed rule change on an
accelerated basis. Therefore, the
Commission finds good cause,
consistent with Section 19(b)(2) of the
Act,11 to approve the proposed rule
change on an accelerated basis.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (SR–NYSE–2009–
55) be, and it hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16544 Filed 7–13–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60236; File No. SR–BATS–
2009–019]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish Its New
Sponsored Access Risk Management
Tool Service
July 2, 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 June 26,
2009, BATS Exchange, Inc. (‘‘BATS’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) 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.
6 Id.
7 Id.
8 Id. See also NYSE Rule 13 (Definitions of
Orders).
9 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
10 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
11 U.S.C.
78s(b)(2).
CFR 200.30–3(a)(12).
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).
12 17
E:\FR\FM\14JYN1.SGM
14JYN1
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish
its new Sponsored Access Risk
Management Tool (the ‘‘Tool’’) service.
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 those
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 offer the
Tool service to BATS Members and
Member organizations.
Background
The Exchange defines a ‘‘Sponsored
Participant’’ as a person who has
entered into a sponsorship arrangement
with a Sponsoring Member.5 A
‘‘Sponsoring Member’’ is defined as a
broker-dealer that is a Member of the
Exchange and has been designated by a
Sponsored Participant to execute, clear
and settle transactions occurring on the
Exchange.6 Under BATS Rule 11.3(b), a
Sponsoring Member may allow its
customers to enter orders directly into
the trading systems of the Exchange as
Sponsored Participants, without the
Sponsoring Member acting as an
intermediary.
mstockstill on DSKH9S0YB1PROD with NOTICES
Sponsored Access Risk Management
Tool
To facilitate the ability of a
Sponsoring Member to monitor and
oversee the sponsored access activity of
its Sponsored Participants, the
Exchange will offer the Sponsored
Access Risk Management Tool. This
optional service will act as a risk filter
by causing the orders of Sponsored
Participants to be evaluated by the Tool
prior to entering the Exchange’s trading
systems for execution. When a
Sponsored Participant’s order is
5 See
6 See
evaluated by the Tool, it determines
whether the order complies with the
order criteria established by the
Sponsoring Member for that Sponsored
Participant. The order criteria pertain to
such matters as the size of the order
(e.g., maximum notional value per order
and maximum shares per order), the
order type (e.g., pre-market, postmarket, short sales and ISOs), restricted
securities, easy to borrow securities, and
order cut-off (e.g., block new orders and
cancel all open orders).
The Tool also offers Sponsoring
Members the capability to receive FIX
Drop Order Copy sessions, which
include the complete FIX conversation,
as well as web based management tools
to configure the Sponsored Access
controls.
The Sponsoring Member, and not the
Exchange, will have full responsibility
for ensuring that Sponsored
Participants’ sponsored access to the
Exchange complies with the Exchange’s
sponsored access rules. The use of the
Tool by a Sponsoring Member does not
automatically constitute compliance
with Exchange Rules.
The Sponsored Participant’s orders
are validated in the FIX handler prior to
entering the matching engine. Based on
parameters provided to the Tool by the
Sponsoring Member, the order is
immediately passed on to the matching
engine or rejected back to the Sponsored
Participant.
The Exchange does not require
Sponsoring Members to use the Tool.
Sponsoring Members are free to use any
appropriate risk-management tool or
service. The Exchange will not provide
preferential treatment to Sponsoring
Members using the Tool.
The Exchange proposes to make the
Tool available to its Members upon
request. The Exchange believes the Tool
will offer the Exchange’s Members
another option in the efficient risk
management of its Sponsored
Participants’ access to BATS Exchange.
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.7
Specifically, the proposed change is
consistent with Section 6(b)(5) of the
Act,8 because it would promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
BATS Rule 1.5(w).
BATS Rule 1.5(x).
VerDate Nov<24>2008
17:50 Jul 13, 2009
7 15
8 15
Jkt 217001
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00082
Fmt 4703
34069
and a national market system, and, in
general, protect investors and the public
interest. The proposed rule change also
is designed to support the principles of
Section 11A(a)(1) 9 in that it seeks to
assure economically efficient execution
of securities transactions, make it
practicable for brokers to execute
investors’ orders in the best market, and
provide an opportunity for investors’
orders to be executed without the
participation of a dealer. Specifically,
the Exchange believes that the proposed
rule change is consistent with all of the
aforementioned principles because it
fosters competition by providing
another option in the efficient risk
management of trading on the Exchange.
BATS notes that a similar functionality
has already been found to be consistent
with the Act by the Commission.10
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
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (i) Does not significantly affect
the protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) by its terms, does not become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, if
consistent with the protection of
investors and the public interest, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.13 However, Rule 19b–
9 15
U.S.C. 78k–1(a)(1).
Exchange Act Release No. 59354
(February 3, 2009), 74 FR 6683 (February 10, 2009)
(SR–NYSE–2008–101) (Approval of NYSE Risk
Management Gateway).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) 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
10 Securities
Continued
Sfmt 4703
E:\FR\FM\14JYN1.SGM
14JYN1
34070
Federal Register / Vol. 74, No. 133 / Tuesday, July 14, 2009 / Notices
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay and designate the proposed rule
change operative upon filing so that the
expected benefits to Exchange Users
from use of the Tool would not be
delayed. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that other selfregulatory organizations have similar
functionality 15 and that this filing raises
no new regulatory issues. Therefore, the
Commission designates the proposal
operative upon filing.16
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 rulecomments@sec.gov. Please include File
Number SR–BATS–2009–019 on the
subject line.
mstockstill on DSKH9S0YB1PROD with NOTICES
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–2009–019. This file
number should be included on the
change, or such shorter time as designated by the
Commission. The Exchange has complied with this
requirement.
14 Id.
15 See Securities Exchange Act Release No. 59354
(February 3, 2009), 74 FR 6683 (February 10, 2009)
(SR–NYSE–2008–101) (Approval of NYSE Risk
Management Gateway).
16 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
VerDate Nov<24>2008
17:50 Jul 13, 2009
Jkt 217001
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 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
available publicly. All submissions
should refer to File Number SR–BATS–
2009–019 and should be submitted on
or before August 4, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–16576 Filed 7–13–09; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice: 6692]
30-Day Notice of Proposed Information
Collection: DS–7655, Iraqi Citizens and
Nationals Employed by U.S. Federal
Contractors, Grantees, and
Cooperative Agreement Partners, OMB
Control Number 1405–0184
ACTION: Notice of request for public
comment and submission to OMB of
proposed collection of information.
U.S. Federal Contractors, Grantees, and
Cooperative Agreement Partners.
• OMB Control Number: 1405–0184.
• Type of Request: Extension of a
Currently Approved Collection.
• Originating Office: A/LM.
• Form Number: DS–7655.
• Respondents: Federal contractors,
grantees, and cooperative agreement
partners of the Department of State.
• Estimated Number of Respondents:
50.
• Estimated Number of Responses:
50.
• Average Hours per Response: .50.
• Total Estimated Burden: 100 hours.
• Frequency: On occasion.
• Obligation to Respond: Mandatory.
DATES: Submit comments to the Office
of Management and Budget (OMB) for
up to 30 days from July 14, 2009.
ADDRESSES: Direct comments and
questions to Katherine Astrich, the
Department of State Desk Officer in the
Office of Information and Regulatory
Affairs at the Office of Management and
Budget (OMB), who may be reached at
202–395–4718. You may submit
comments by any of the following
methods:
• E-mail: kastrich@omb.eop.gov. You
must include the DS form number,
information collection title, and OMB
control number in the subject line of
your message.
• Mail (paper, disk, or CD–ROM
submissions): Office of Information and
Regulatory Affairs, Office of
Management and Budget, 725 17th
Street, NW., Washington, DC 20503.
• Fax: 202–395–5806.
FOR FURTHER INFORMATION CONTACT: You
may obtain copies of the proposed
information collection and supporting
documents from Rob Lower, Department
of State, A/LM Room 525, P.O. Box 9115
Rosslyn Station, Arlington, VA 22219,
who may be reached at 703–875–5822
or at lowerrs@state.gov.
SUPPLEMENTARY INFORMATION: We are
soliciting public comments to permit
the Department to:
• Evaluate whether the proposed
information collection is necessary to
properly perform our functions.
• Evaluate the accuracy of our
estimate of the burden of the proposed
collection, including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond.
SUMMARY: The Department of State has
submitted the following information
collection request to the Office of
Management and Budget (OMB) for
approval in accordance with the
Paperwork Reduction Act of 1995.
• Title of Information Collection: Iraqi
Abstract of Proposed Collection
Citizens and Nationals Employed by
The Refugee Crisis in Iraq Act of 2007
17 17 CFR 200.30–3(a)(12).
was included in the National Defense
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
E:\FR\FM\14JYN1.SGM
14JYN1
Agencies
[Federal Register Volume 74, Number 133 (Tuesday, July 14, 2009)]
[Notices]
[Pages 34068-34070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16576]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60236; File No. SR-BATS-2009-019]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Establish
Its New Sponsored Access Risk Management Tool Service
July 2, 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 June 26, 2009, BATS Exchange, Inc. (``BATS'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Exchange filed the proposed rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) 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).
---------------------------------------------------------------------------
[[Page 34069]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to establish its new Sponsored Access Risk
Management Tool (the ``Tool'') service.
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 those 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 offer the Tool service to BATS Members and
Member organizations.
Background
The Exchange defines a ``Sponsored Participant'' as a person who
has entered into a sponsorship arrangement with a Sponsoring Member.\5\
A ``Sponsoring Member'' is defined as a broker-dealer that is a Member
of the Exchange and has been designated by a Sponsored Participant to
execute, clear and settle transactions occurring on the Exchange.\6\
Under BATS Rule 11.3(b), a Sponsoring Member may allow its customers to
enter orders directly into the trading systems of the Exchange as
Sponsored Participants, without the Sponsoring Member acting as an
intermediary.
---------------------------------------------------------------------------
\5\ See BATS Rule 1.5(w).
\6\ See BATS Rule 1.5(x).
---------------------------------------------------------------------------
Sponsored Access Risk Management Tool
To facilitate the ability of a Sponsoring Member to monitor and
oversee the sponsored access activity of its Sponsored Participants,
the Exchange will offer the Sponsored Access Risk Management Tool. This
optional service will act as a risk filter by causing the orders of
Sponsored Participants to be evaluated by the Tool prior to entering
the Exchange's trading systems for execution. When a Sponsored
Participant's order is evaluated by the Tool, it determines whether the
order complies with the order criteria established by the Sponsoring
Member for that Sponsored Participant. The order criteria pertain to
such matters as the size of the order (e.g., maximum notional value per
order and maximum shares per order), the order type (e.g., pre-market,
post-market, short sales and ISOs), restricted securities, easy to
borrow securities, and order cut-off (e.g., block new orders and cancel
all open orders).
The Tool also offers Sponsoring Members the capability to receive
FIX Drop Order Copy sessions, which include the complete FIX
conversation, as well as web based management tools to configure the
Sponsored Access controls.
The Sponsoring Member, and not the Exchange, will have full
responsibility for ensuring that Sponsored Participants' sponsored
access to the Exchange complies with the Exchange's sponsored access
rules. The use of the Tool by a Sponsoring Member does not
automatically constitute compliance with Exchange Rules.
The Sponsored Participant's orders are validated in the FIX handler
prior to entering the matching engine. Based on parameters provided to
the Tool by the Sponsoring Member, the order is immediately passed on
to the matching engine or rejected back to the Sponsored Participant.
The Exchange does not require Sponsoring Members to use the Tool.
Sponsoring Members are free to use any appropriate risk-management tool
or service. The Exchange will not provide preferential treatment to
Sponsoring Members using the Tool.
The Exchange proposes to make the Tool available to its Members
upon request. The Exchange believes the Tool will offer the Exchange's
Members another option in the efficient risk management of its
Sponsored Participants' access to BATS Exchange.
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.\7\ Specifically, the
proposed change is consistent with Section 6(b)(5) of the Act,\8\
because it would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system, and, in general, protect investors and
the public interest. The proposed rule change also is designed to
support the principles of Section 11A(a)(1) \9\ in that it seeks to
assure economically efficient execution of securities transactions,
make it practicable for brokers to execute investors' orders in the
best market, and provide an opportunity for investors' orders to be
executed without the participation of a dealer. Specifically, the
Exchange believes that the proposed rule change is consistent with all
of the aforementioned principles because it fosters competition by
providing another option in the efficient risk management of trading on
the Exchange. BATS notes that a similar functionality has already been
found to be consistent with the Act by the Commission.\10\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78k-1(a)(1).
\10\ Securities Exchange Act Release No. 59354 (February 3,
2009), 74 FR 6683 (February 10, 2009) (SR-NYSE-2008-101) (Approval
of NYSE Risk Management Gateway).
---------------------------------------------------------------------------
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
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (i) Does not
significantly affect the protection of investors or the public
interest; (ii) does not impose any significant burden on competition;
and (iii) by its terms, does not become operative for 30 days from the
date on which it was filed, or such shorter time as the Commission may
designate, if consistent with the protection of investors and the
public interest, it has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\13\
However, Rule 19b-
[[Page 34070]]
4(f)(6)(iii) \14\ permits the Commission to designate a shorter time if
such action is consistent with the protection of investors and the
public interest. The Exchange has requested that the Commission waive
the 30-day operative delay and designate the proposed rule change
operative upon filing so that the expected benefits to Exchange Users
from use of the Tool would not be delayed. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission notes that other
self-regulatory organizations have similar functionality \15\ and that
this filing raises no new regulatory issues. Therefore, the Commission
designates the proposal operative upon filing.\16\
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\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 Exchange has complied with this requirement.
\14\ Id.
\15\ See Securities Exchange Act Release No. 59354 (February 3,
2009), 74 FR 6683 (February 10, 2009) (SR-NYSE-2008-101) (Approval
of NYSE Risk Management Gateway).
\16\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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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 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-2009-019 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-2009-019. 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 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
available publicly. All submissions should refer to File Number SR-
BATS-2009-019 and should be submitted on or before August 4, 2009.
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\17\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-16576 Filed 7-13-09; 8:45 am]
BILLING CODE 8010-01-P