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., 70326-70328 [2010-28896]
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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).
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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
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17NON1
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, 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
mstockstill on DSKH9S0YB1PROD with NOTICES
1. Purpose
The Exchange proposes to modify the
‘‘Equities Pricing’’ section of its fee
schedule to increase its standard fee for
removing liquidity from the Exchange to
$0.0028 per share and to increase its
standard rebate for adding displayed
liquidity to the Exchange to $0.0027 per
share. The Exchange does not propose
to charge different fees or grant different
rebates depending on the amount of
orders submitted to, and/or trades
executed on or through, the Exchange.
Accordingly, all fees and rebates
described below are applicable to all
Members, regardless of the overall
volume of their trading activities on the
Exchange.
Consistent with the current fee to
remove liquidity, the charge per share
for executions that remove liquidity
from the Exchange will not apply [sic]
executions that remove liquidity in
securities priced under $1.00 per share.
The fee for such executions will remain
at 0.10% of the total dollar value of the
execution. Similarly, as is currently the
case for the rebate for adding liquidity
to the Exchange, there will be no
liquidity rebate for adding liquidity in
securities priced under $1.00 per share.
Finally, the rebate paid by the Exchange
for adding non-displayed liquidity will
remain at $0.0020 per share. As defined
on the Exchange’s current fee schedule,
‘‘non-displayed liquidity’’ includes
liquidity resulting from all forms of
Pegged Orders,6 Mid-Point Peg Orders,7
and Non-Displayed Orders,8 but does
not include liquidity resulting from
Reserve Orders 9 or Discretionary
Orders.10
In addition to the changes described
above, and to differentiate itself from its
affiliate, BATS Y-Exchange, Inc. (‘‘BYX
Exchange’’), which recently commenced
operations, the Exchange proposes to
use the name ‘‘BZX Exchange’’ and
‘‘BZX’’ throughout the fee schedule,
other than when referring to its equity
options platform, which it will refer to
as ‘‘BATS Options.’’ Similarly, the
Exchange proposes defining its affiliate,
as it has done above, as ‘‘BYX
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.’’
Finally, the Exchange proposes to
remove one heading from its fee
schedule, ‘‘Options Pricing
(Continued),’’ which is no longer
necessary for the printed version of its
fee schedule.
order flow to competing venues if they
deem fee levels at a particular venue to
be excessive. The Exchange believes
that its fees and credits are competitive
with those charged by other venues.
Finally, the Exchange believes that the
proposed rates are equitable in that they
apply uniformly to all Members.
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.11
Specifically, the Exchange believes that
the proposed rule change is consistent
with Section 6(b)(4) of the Act,12 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 impact of the proposed price
changes upon the net fees paid by a
particular market participant will
depend upon a number of variables,
including the prices of the market
participant’s quotes and orders relative
to the national best bid and offer (i.e.,
its propensity to add or remove
liquidity), the types of securities that it
trades and its usage of non-displayed
quotes/orders. While Members that
generally remove liquidity from the
Exchange will be paying a higher fee,
the Exchange believes that such
Members will benefit to the extent the
higher rebate paid by the Exchange for
adding liquidity attracts additional
liquidity and thus improves the depth of
liquidity available on the Exchange.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily direct
The foregoing proposed rule change
has been designated as a fee change
pursuant to Section 19(b)(3)(A)(ii) of the
Act 13 and Rule 19b–4(f)(2)
thereunder,14 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
investors, or otherwise in furtherance of
the purposes of the Act.
9 As
6 As
defined in BZX Rule 11.9(c)(8).
7 As defined in BZX Rule 11.9(c)(9).
8 As defined in BZX Rule 11.9(c)(11).
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70327
defined in BZX Rule 11.9(c)(1).
defined in BZX Rule 11.9(c)(10).
11 15 U.S.C. 78f.
12 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 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
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–2010–031 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
10 As
PO 00000
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Sfmt 4703
13 15
14 17
E:\FR\FM\17NON1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
17NON1
70328
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Notices
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BATS–2010–031. 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–BATS–
2010–031 and should be submitted on
or before December 8, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–28896 Filed 11–16–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63301; File No. SR–FICC–
2010–08]
mstockstill on DSKH9S0YB1PROD with NOTICES
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change To
Eliminate Certain Cash Adjustments
Currently Processed by the MBSD
November 10, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:21 Nov 16, 2010
Jkt 223001
notice is hereby given that on October
28, 2010, the Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
primarily by FICC. 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 purpose of the proposed rule
change is to eliminate cash adjustments
that are currently processed by the
Mortgage-Backed Securities Division
(‘‘MBSD’’).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
FICC is proposing to eliminate the
cash adjustments that are currently
processed by the MBSD.4 FICC is
proposing to eliminate the cash
adjustments because they have low
monetary impact and were originally
designed to address a clearance event
(‘‘significant variance’’) that no longer
applies. Variance was originally
established when mortgage-backed
securities were physically settled, and it
was difficult to organize physical pools
into $1 million par amounts for
delivery.
As a result of the netting of To Be
Announced (‘‘TBA’’) transactions, a
participant may have a settlement
obligation to another participant with
which it did not trade (‘‘SBON
Obligations’’). SBON Obligations are
created in multiples of $1 million par
amounts and are assigned a uniform
delivery price. Since the delivery price
3 The Commission has modified the text of the
summaries prepared by FICC.
4 The specific language of the proposed provision
can be found at https://www.dtcc.com/downloads/
legal/rule_filings/2010/ficc/2010-08.pdf.
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
will differ from the participant’s original
trade price, an adjustment is calculated
for the difference between the delivery
price and the trade price. This
adjustment is referred to as the
Settlement Balance Order Market
Differential (‘‘SBOMD’’).
Participants notify the MBSD when
they have settled their SBON
Obligations with their assigned
counterparties through the Notification
of Settlement (‘‘NOS’’) process. From the
information supplied by both the
delivering and receiving participants in
their respective NOS, the MBSD
determines whether the securities
delivered were in $1 million par
amounts or in a par amount within
acceptable variance (plus or minus $100
per million). In instances where the
delivery was completed in $1 million
par amounts, the MBSD takes no
additional steps.
If the delivery was cleared for a par
amount within acceptable variance, the
MBSD will calculate a cash adjustment
to reconcile the difference between the
original SBOMD (based on a $1 million
par amount) and what the SBOMD
should have been (based on the par
amount delivered). As mortgage-backed
securities migrated from physical to
electronic settlement, acceptable
variance has been reduced from an
initial $50,000 per million to the current
amount of $100 per million.
FICC believes the proposed rule
change is consistent with the
requirements of Section 17A of the Act 5
and the rules and regulations
thereunder applicable to FICC because it
is a deletion of a rule that covers a
process that is no longer needed and as
such it provides certainty and clarity of
the clearance process at MBSD to
members.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
FICC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. FICC will notify
the Commission of any written
comments received by FICC.
5 15
E:\FR\FM\17NON1.SGM
U.S.C. 78q–1.
17NON1
Agencies
[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70326-70328]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28896]
-----------------------------------------------------------------------
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\ notice is hereby given
that on October 29, 2010, BATS Exchange, Inc. (the ``Exchange,'' ``BZX
Exchange'' or ``BZX'') 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. The Exchange 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 the
Substance of the Proposed Rule Change
The Exchange proposes to modify its fee schedule applicable to
Members \5\ of the Exchange pursuant to BZX 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.
[[Page 70327]]
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 the ``Equities Pricing'' section of
its fee schedule to increase its standard fee for removing liquidity
from the Exchange to $0.0028 per share and to increase its standard
rebate for adding displayed liquidity to the Exchange to $0.0027 per
share. The Exchange does not propose to charge different fees or grant
different rebates depending on the amount of orders submitted to, and/
or trades executed on or through, the Exchange. Accordingly, all fees
and rebates described below are applicable to all Members, regardless
of the overall volume of their trading activities on the Exchange.
Consistent with the current fee to remove liquidity, the charge per
share for executions that remove liquidity from the Exchange will not
apply [sic] executions that remove liquidity in securities priced under
$1.00 per share. The fee for such executions will remain at 0.10% of
the total dollar value of the execution. Similarly, as is currently the
case for the rebate for adding liquidity to the Exchange, there will be
no liquidity rebate for adding liquidity in securities priced under
$1.00 per share. Finally, the rebate paid by the Exchange for adding
non-displayed liquidity will remain at $0.0020 per share. As defined on
the Exchange's current fee schedule, ``non-displayed liquidity''
includes liquidity resulting from all forms of Pegged Orders,\6\ Mid-
Point Peg Orders,\7\ and Non-Displayed Orders,\8\ but does not include
liquidity resulting from Reserve Orders \9\ or Discretionary
Orders.\10\
---------------------------------------------------------------------------
\6\ As defined in BZX Rule 11.9(c)(8).
\7\ As defined in BZX Rule 11.9(c)(9).
\8\ As defined in BZX Rule 11.9(c)(11).
\9\ As defined in BZX Rule 11.9(c)(1).
\10\ As defined in BZX Rule 11.9(c)(10).
---------------------------------------------------------------------------
In addition to the changes described above, and to differentiate
itself from its affiliate, BATS Y-Exchange, Inc. (``BYX Exchange''),
which recently commenced operations, the Exchange proposes to use the
name ``BZX Exchange'' and ``BZX'' throughout the fee schedule, other
than when referring to its equity options platform, which it will refer
to as ``BATS Options.'' Similarly, the Exchange proposes defining its
affiliate, as it has done above, as ``BYX 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.''
Finally, the Exchange proposes to remove one heading from its fee
schedule, ``Options Pricing (Continued),'' which is no longer necessary
for the printed version of its fee schedule.
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.\11\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The impact of the proposed price changes upon the net fees paid by
a particular market participant will depend upon a number of variables,
including the prices of the market participant's quotes and orders
relative to the national best bid and offer (i.e., its propensity to
add or remove liquidity), the types of securities that it trades and
its usage of non-displayed quotes/orders. While Members that generally
remove liquidity from the Exchange will be paying a higher fee, the
Exchange believes that such Members will benefit to the extent the
higher rebate paid by the Exchange for adding liquidity attracts
additional liquidity and thus improves the depth of liquidity available
on the Exchange.
The Exchange notes that it operates in a highly competitive market
in which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive.
The Exchange believes that its fees and credits are competitive with
those charged by other venues. 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.
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 \13\ and Rule
19b-4(f)(2) thereunder,\14\ 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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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-BATS-2010-031 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission,
[[Page 70328]]
100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BATS-2010-031. 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-BATS-2010-031 and should be submitted on
or before December 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28896 Filed 11-16-10; 8:45 am]
BILLING CODE 8011-01-P