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., 36293-36294 [E9-17352]
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Federal Register / Vol. 74, No. 139 / Wednesday, July 22, 2009 / Notices
jlentini on DSKJ8SOYB1PROD with NOTICES
a national securities association.8 In
particular, the Commission finds that
the proposal is consistent with Section
15A(b)(6) of the Act,9 which requires,
among other things that FINRA’s rules
be designed to prevent fraudulent and
manipulative acts and practices, 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, to protect
investors and the public interest. The
Commission also believes that the
proposed rule change is consistent with
the provisions of Section 15A(b)(7) of
the Act,10 which provides that FINRA
members, or persons associated with its
members, must be appropriately
disciplined for violations of any
provisions of the Act or FINRA’s rules.
The Commission believes that making
the pilot program permanent will
provide FINRA with a mechanism to
take action in certain situations against
a member or an associated person that
is alleged to have engaged, or is
engaging, in conduct that violates
Commission, FINRA, or NASD rules,
when such intervention is necessary in
order to prevent likely significant
dissipation or conversion of assets or
other significant harm to investors
before the underlying disciplinary
proceeding can be completed. At the
same time, the Commission believes
that FINRA’s cease and desist
provisions contain sufficient procedural
protections to ensure that respondents
have the opportunity for a fair hearing
and, if applicable, review thereof. When
it first sought cease and desist authority
in 2003, FINRA said that it would use
the authority sparingly and has, in fact,
only used its authority once for a TCDO
and once for a permanent cease and
desist order.11 FINRA stated in its
Notice that if the proposal were adopted
on a permanent basis, it would continue
to use its cease and desist authority
judiciously. The Commission expects
that FINRA will continue to use this
authority in an appropriate manner. The
Commission believes it is reasonable
and consistent with the Act for FINRA
to adopt the cease and desist rules
permanently to enable it to stop persons
from engaging in securities transactions
or conduct affecting the marketplace, in
alleged violation of established rules,
which is likely to cause harm to
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
9 15 U.S.C. 78o–3(b)(6).
10 15 U.S.C. 78o–3(b)(7).
11 See Notice for a more detailed description of
the matter.
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16:04 Jul 21, 2009
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investors or would adversely affect the
public interest if not addressed
expeditiously.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,12 that the
proposed rule change (SR–FINRA–
2009–035), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17349 Filed 7–21–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60313; File No. SR–BATS–
2009–023]
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.
July 15, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 9,
2009, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify
BATS Rule 15.1, entitled ‘‘Authority to
Prescribe Dues, Fees, Assessments and
Other Charges,’’ effective immediately.
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
PO 00000
12 15
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)(ii).
4 17 CFR 240.19b–4(f)(2).
36293
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
BATS Rule 15.1 to adopt new paragraph
(d), which will allow the Exchange to
pass on certain, specific fees that it is
charged by the company that operates
the data center where the Exchange’s
System 5 is located, as described in
further detail below.
Exchange Members wishing to colocate their trading hardware to the
Exchange’s System can do so by leasing
space directly from the company that
owns the data center. The Exchange has
no involvement in determining the
terms of any fees paid by the Member
to lease co-location space and does not
receive any proceeds from such fee.
Certain Members of the Exchange
maintain a co-location relationship with
another Trading Center’s 6 system that is
located in the same data center as the
Exchange. To co-locate to the Exchange,
rather than leasing additional space near
the Exchange’s System, some Members
choose instead to simply cross-connect
their existing trading hardware from the
space near another Trading Center’s
system to the Exchange’s System. In
such cases, the company that owns the
data center charges the Exchange a
monthly cross-connection fee. Pursuant
to the proposed rule the Exchange will
pass this cross connection fee on, in
full, to the applicable Member.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
13 17
Frm 00131
Fmt 4703
Sfmt 4703
5 The term ‘‘System’’ is defined in BATS Rule
1.5(aa).
6 The term ‘‘Trading Center’’ is defined in BATS
Rule 2.11.
E:\FR\FM\22JYN1.SGM
22JYN1
36294
Federal Register / Vol. 74, No. 139 / Wednesday, July 22, 2009 / Notices
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 in the
current, competitive market
environment, market participants can
connect to numerous competing venues
in numerous different ways, and that
the Exchange currently does not charge
any direct fees for connecting to the
Exchange. In addition, the fees applied
through the proposed rule will not
result in any direct revenue for the
Exchange, but rather, are a pass-through
of fees charged to the Exchange as a
result of certain Member’s connections
to the Exchange.
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.
jlentini on DSKJ8SOYB1PROD with NOTICES
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
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
BILLING CODE 8010–01–P
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BATS–2009–023 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–2009–023. 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 the filing will also be available
for inspection and copying at the
principal office of the self-regulatory
organization. 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–
2009–023 and should be submitted on
or before August 12, 2009.
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).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17352 Filed 7–21–09; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60315; File No. SR–MSRB–
2009–10]
Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Notice of Filing of Proposed
Rule Change Relating to Additional
Voluntary Submissions by Issuers to
the MSRB’s Electronic Municipal
Market Access System (EMMA®)
July 15, 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 July 14,
2009, the Municipal Securities
Rulemaking Board (‘‘MSRB’’) 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 MSRB. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The MSRB has filed with the
Commission a proposed rule change to
amend the primary market and
continuing disclosure services of the
Electronic Municipal Market Access
system (‘‘EMMA’’) to permit issuers and
their designated agents to submit
preliminary official statements and
other related pre-sale documents,
official statements and advance
refunding documents, as well as
information relating to the preparation
and submission of audited financial
statements and annual financial
information and links to other
disclosure information. The MSRB has
requested an effective date for the
proposed rule change of a date to be
announced by the MSRB in a notice
published on the MSRB Web site, which
date shall be no later than nine months
after Commission approval of the
proposed rule change and shall be
7 15
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
8 15
VerDate Nov<24>2008
16:04 Jul 21, 2009
1 15
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PO 00000
Frm 00132
Fmt 4703
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22JYN1
]]>Agencies
[Federal Register Volume 74, Number 139 (Wednesday, July 22, 2009)]
[Notices]
[Pages 36293-36294]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17352]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60313; File No. SR-BATS-2009-023]
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.
July 15, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 9, 2009, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') 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 BATS Rule 15.1, entitled
``Authority to Prescribe Dues, Fees, Assessments and Other Charges,''
effective immediately.
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 BATS Rule 15.1 to adopt new
paragraph (d), which will allow the Exchange to pass on certain,
specific fees that it is charged by the company that operates the data
center where the Exchange's System \5\ is located, as described in
further detail below.
---------------------------------------------------------------------------
\5\ The term ``System'' is defined in BATS Rule 1.5(aa).
---------------------------------------------------------------------------
Exchange Members wishing to co-locate their trading hardware to the
Exchange's System can do so by leasing space directly from the company
that owns the data center. The Exchange has no involvement in
determining the terms of any fees paid by the Member to lease co-
location space and does not receive any proceeds from such fee. Certain
Members of the Exchange maintain a co-location relationship with
another Trading Center's \6\ system that is located in the same data
center as the Exchange. To co-locate to the Exchange, rather than
leasing additional space near the Exchange's System, some Members
choose instead to simply cross-connect their existing trading hardware
from the space near another Trading Center's system to the Exchange's
System. In such cases, the company that owns the data center charges
the Exchange a monthly cross-connection fee. Pursuant to the proposed
rule the Exchange will pass this cross connection fee on, in full, to
the applicable Member.
---------------------------------------------------------------------------
\6\ The term ``Trading Center'' is defined in BATS Rule 2.11.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the
[[Page 36294]]
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 in the current, competitive market environment,
market participants can connect to numerous competing venues in
numerous different ways, and that the Exchange currently does not
charge any direct fees for connecting to the Exchange. In addition, the
fees applied through the proposed rule will not result in any direct
revenue for the Exchange, but rather, are a pass-through of fees
charged to the Exchange as a result of certain Member's connections to
the Exchange.
---------------------------------------------------------------------------
\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-2009-023 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-2009-023. 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 the filing will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-2009-023 and should be submitted on or before August 12, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17352 Filed 7-21-09; 8:45 am]
BILLING CODE 8010-01-P
