Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc., 70325-70326 [2010-28895]

Download as PDF Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–63299; File No. SR–BYX– 2010–005] • 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–NYSEArca–2010–98 on the subject line. Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc. November 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2 to Elizabeth M. Murphy, Secretary, notice is hereby given that on October Securities and Exchange Commission, 29, 2010, BATS Y-Exchange, Inc. 100 F Street, NE., Washington, DC (‘‘Exchange’’, ‘‘BYX Exchange’’ or ‘‘BYX’’) 20549–1090. filed with the Securities and Exchange Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Number SR–NYSEArca–2010–98. This Items I, II and III below, which Items file number should be included on the subject line if e-mail is used. To help the have been prepared by the Exchange. BYX has designated the proposed rule Commission process and review your change as one establishing or changing comments more efficiently, please use only one method. The Commission will a member due, fee, or other charge post all comments on the Commission’s imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b– Internet Web site (https://www.sec.gov/ 4(f)(2) thereunder,4 which renders the rules/sro.shtml). Copies of the proposed rule change effective upon submission, all subsequent filing with the Commission. The amendments, all written statements Commission is publishing this notice to with respect to the proposed rule solicit comments on the proposed rule change that are filed with the change from interested persons. Commission, and all written communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Statement of the Terms of the Substance Commission and any person, other than of the Proposed Rule Change those that may be withheld from the The Exchange proposes to modify its public in accordance with the fee schedule applicable to Members 5 of provisions of 5 U.S.C. 552, will be the Exchange pursuant to BYX Rules available for Web site viewing and 15.1(a) and (c). While changes to the fee printing in the Commission’s Public schedule pursuant to this proposal will Reference Room, 100 F Street, NE., Washington, DC 20549–1090 on official be effective upon filing, the changes will become operative on November 1, 2010. business days between 10 a.m. and 3 The text of the proposed rule change p.m. Copies of the filing will also be is available at the Exchange’s Web site available for inspection and copying at at https://www.batstrading.com, at the the NYSE’s principal office. All principal office of the Exchange, on the comments received will be posted Commission’s Web site at https:// without change; the Commission does www.sec.gov, and at the Commission’s not edit personal identifying Public Reference Room. information from submissions. You should submit only information that II. Self-Regulatory Organization’s you wish to make available publicly. All Statement of the Purpose of, and submissions should refer to File Statutory Basis for, the Proposed Rule Number SR–NYSEArca–2010–98 and Change should be submitted on or before In its filing with the Commission, the December 8, 2010. Exchange included statements For the Commission, by the Division of concerning the purpose of and basis for Trading and Markets, pursuant to delegated the proposed rule change and discussed authority.23 any comments it received on the mstockstill on DSKH9S0YB1PROD with NOTICES Paper Comments Florence E. Harmon, Deputy Secretary. 1 15 [FR Doc. 2010–28894 Filed 11–16–10; 8:45 am] BILLING CODE 8011–01–P 23 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:21 Nov 16, 2010 Jkt 223001 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 5 A Member is any registered broker or dealer that has been admitted to membership in the Exchange. 2 17 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 70325 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 is proposing to modify its fee schedule to revise pricing for routed orders that are sent to and executed by the Exchange’s affiliate, BATS Exchange, Inc. (‘‘BZX Exchange’’). Effective November 1, 2010, BZX Exchange is increasing its standard fee to remove liquidity to $0.0028 per share.6 The Exchange has various routing strategies and order types that route to BZX Exchange and charge the current remove rate charged by BZX Exchange. These strategies include BYX + BZX Exchange Destination Specific Orders orders 7 (referred to by the Exchange as ‘‘B2B’’ orders), the TRIM routing strategy 8 and the SLIM routing strategy.9 The Exchange proposes to increase the fee for executions at BZX Exchange through B2B, TRIM and SLIM to $0.0028 per share, consistent with the BZX Exchange fee increase. In addition to the changes described above, the Exchange proposes to use the name ‘‘BYX Exchange’’ and ‘‘BYX’’ throughout the fee schedule. Similarly, the Exchange proposes defining its affiliate, as it has done above, as ‘‘BZX Exchange.’’ Also, the Exchange proposes to make stylistic changes, including referring to its book of orders as its ‘‘order book,’’ rather than just its ‘‘book.’’ 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 6 See ‘‘BATS October U.S. Markets Update and Pricing November 1, 2010’’ (October 25, 2010), available at: https://batstrading.com/resources/fee_ schedule/2010/BATS-October-US-Markets-Updateand-Pricing-November-1-2010.pdf. 7 As defined in BYX Rule 11.9(c)(12), a ‘‘Destination Specific Order’’ is ‘‘[a] market or limit order that instructs the System to route the order to a specified away trading center or centers, after exposing the order to the BATS Book.’’ 8 As defined in BYX Rule 11.13(a)(3)(G), ‘‘TRIM is a routing option under which an order checks the System for available shares and then is sent to destinations on the System routing table.’’ 9 As defined in BYX Rule 11.13(a)(3)(H), ‘‘SLIM is a routing option under which an order checks the System for available shares and then is sent to destinations on the System routing table.’’ E:\FR\FM\17NON1.SGM 17NON1 70326 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices requirements of Section 6 of the Act. Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) of the Act, 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. Also, although routing services offered by the Exchange are available to all Members, Members are not required to use the Exchange’s routing services, but instead, the Exchange’s routing services are completely optional. Members can manage their own routing practices or can utilize a myriad of other routing solutions that are available to market participants. Finally, the change to the fee will allow the Exchange to continue to charge its Members the same fee for orders routed to and executed by its affiliate, BZX Exchange, as BZX Exchange would charge directly if such Members routed to BZX Exchange directly. 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 Regarding the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received. mstockstill on DSKH9S0YB1PROD 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 10 and Rule 19b–4(f)(2) thereunder,11 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 summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of 10 15 11 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:21 Nov 16, 2010 Jkt 223001 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–BYX–2010–005 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–28895 Filed 11–16–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63300; File No. SR–BATS– 2010–031] 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. November 10, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on October to Elizabeth M. Murphy, Secretary, 29, 2010, BATS Exchange, Inc. (the Securities and Exchange Commission, ‘‘Exchange,’’ ‘‘BZX Exchange’’ or ‘‘BZX’’) 100 F Street, NE., Washington, DC filed with the Securities and Exchange 20549–1090. Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Items I, II and III below, which Items Number SR–BYX–2010–005. This file have been prepared by the Exchange. number should be included on the subject line if e-mail is used. To help the The Exchange has designated the proposed rule change as one Commission process and review your establishing or changing a member due, comments more efficiently, please use only one method. The Commission will fee, or other charge imposed by the under Section 19(b)(3)(A)(ii) post all comments on the Commission’s Exchange 3 of the Act and Rule 19b–4(f)(2) Web site (https://www.sec.gov/rules/ 4 sro.shtml). Copies of the submission, all thereunder, which renders the proposed rule change effective upon subsequent amendments, all written filing with the Commission. The statements with respect to the proposed Commission is publishing this notice to rule change that are filed with the solicit comments on the proposed rule Commission, and all written change from interested persons. communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Commission and any person, other than Statement of the Terms of the Substance of the Proposed Rule Change those that may be withheld from the The Exchange proposes to modify its public in accordance with the fee schedule applicable to Members 5 of provisions of 5 U.S.C. 552, will be the Exchange pursuant to BZX Rules available for Web site viewing and 15.1(a) and (c). While changes to the fee printing in the Commission’s Public schedule pursuant to this proposal will Reference Room, 100 F Street, NE., be effective upon filing, the changes will Washington, DC 20549, on official become operative on November 1, 2010. business days between the hours of 10 The text of the proposed rule change a.m. and 3 p.m. Copies of such filing is available at the Exchange’s Web site also will be available for inspection and at https://www.batstrading.com, at the copying at the principal office of the principal office of the Exchange, on the Exchange. All comments received will Commission’s Web site at https:// be posted without change; the www.sec.gov, and at the Commission’s Commission does not edit personal Public Reference Room. identifying information from submissions. You should submit only 12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). information that you wish to make 2 17 CFR 240.19b–4. publicly available. All submissions 3 15 U.S.C. 78s(b)(3)(A)(ii). should refer to File Number SR–BYX– 4 17 CFR 240.19b–4(f)(2). 2010–005 and should be submitted on 5 A Member is any registered broker or dealer that or before December 8, 2010. has been admitted to membership in the Exchange. Paper Comments PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\17NON1.SGM 17NON1

Agencies

[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70325-70326]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28895]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63299; File No. SR-BYX-2010-005]


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

November 10, 2010.
    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 October 29, 2010, BATS Y-Exchange, Inc. (``Exchange'', ``BYX 
Exchange'' or ``BYX'') 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. BYX 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).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to modify its fee schedule applicable to 
Members \5\ of the Exchange pursuant to BYX Rules 15.1(a) and (c). 
While changes to the fee schedule pursuant to this proposal will be 
effective upon filing, the changes will become operative on November 1, 
2010.
---------------------------------------------------------------------------

    \5\ A Member is any registered broker or dealer that has been 
admitted to membership in the Exchange.
---------------------------------------------------------------------------

    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, on the Commission's Web site at https://www.sec.gov, 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 is proposing to modify its fee schedule to revise 
pricing for routed orders that are sent to and executed by the 
Exchange's affiliate, BATS Exchange, Inc. (``BZX Exchange''). Effective 
November 1, 2010, BZX Exchange is increasing its standard fee to remove 
liquidity to $0.0028 per share.\6\ The Exchange has various routing 
strategies and order types that route to BZX Exchange and charge the 
current remove rate charged by BZX Exchange. These strategies include 
BYX + BZX Exchange Destination Specific Orders orders \7\ (referred to 
by the Exchange as ``B2B'' orders), the TRIM routing strategy \8\ and 
the SLIM routing strategy.\9\ The Exchange proposes to increase the fee 
for executions at BZX Exchange through B2B, TRIM and SLIM to $0.0028 
per share, consistent with the BZX Exchange fee increase.
---------------------------------------------------------------------------

    \6\ See ``BATS October U.S. Markets Update and Pricing November 
1, 2010'' (October 25, 2010), available at: https://batstrading.com/resources/fee_schedule/2010/BATS-October-US-Markets-Update-and-Pricing-November-1-2010.pdf.
    \7\ As defined in BYX Rule 11.9(c)(12), a ``Destination Specific 
Order'' is ``[a] market or limit order that instructs the System to 
route the order to a specified away trading center or centers, after 
exposing the order to the BATS Book.''
    \8\ As defined in BYX Rule 11.13(a)(3)(G), ``TRIM is a routing 
option under which an order checks the System for available shares 
and then is sent to destinations on the System routing table.''
    \9\ As defined in BYX Rule 11.13(a)(3)(H), ``SLIM is a routing 
option under which an order checks the System for available shares 
and then is sent to destinations on the System routing table.''
---------------------------------------------------------------------------

    In addition to the changes described above, the Exchange proposes 
to use the name ``BYX Exchange'' and ``BYX'' throughout the fee 
schedule. Similarly, the Exchange proposes defining its affiliate, as 
it has done above, as ``BZX Exchange.'' Also, the Exchange proposes to 
make stylistic changes, including referring to its book of orders as 
its ``order book,'' rather than just its ``book.''
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

[[Page 70326]]

requirements of Section 6 of the Act. Specifically, the Exchange 
believes that the proposed rule change is consistent with Section 
6(b)(4) of the Act, 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. 
Also, although routing services offered by the Exchange are available 
to all Members, Members are not required to use the Exchange's routing 
services, but instead, the Exchange's routing services are completely 
optional. Members can manage their own routing practices or can utilize 
a myriad of other routing solutions that are available to market 
participants. Finally, the change to the fee will allow the Exchange to 
continue to charge its Members the same fee for orders routed to and 
executed by its affiliate, BZX Exchange, as BZX Exchange would charge 
directly if such Members routed to BZX Exchange directly.

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 Regarding 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 \10\ and Rule 
19b-4(f)(2) thereunder,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend 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-BYX-2010-005 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-BYX-2010-005. 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 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 Web site viewing and printing 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-BYX-2010-005 and should be submitted on 
or before December 8, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28895 Filed 11-16-10; 8:45 am]
BILLING CODE 8011-01-P
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