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., 2729-2730 [2011-664]

Download as PDF Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63662; File No. SR–BYX– 2011–001] 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. January 6, 2011. 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 January 4, 2011, BATS Y-Exchange, Inc. (‘‘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. 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify its fee schedule applicable to Members 5 of the Exchange pursuant to BYX Rules 15.1(a) and (c). Changes to the fee schedule pursuant to this proposal will be effective upon filing. 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. mstockstill on DSKH9S0YB1PROD with 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 1 15 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 VerDate Mar<15>2010 17:03 Jan 13, 2011 Jkt 223001 statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to modify its fee schedule applicable to use of the Exchange effective January 4, 2011, in order to: (i) Amend the fees for certain routing strategies based on a change of fees at the New York Stock Exchange (‘‘NYSE’’); and (ii) remove reference to a routing strategy called ‘‘Dark Scan’’ that the Exchange has ceased offering. (i) One Under Pricing for Certain Orders Executed at NYSE The Exchange has previously provided a discounted price fee for Destination Specific Orders routed to certain of the largest market centers measured by volume (NYSE, NYSE Arca and NASDAQ), which, in each instance has been $0.0001 less per share for orders routed to such market centers by the Exchange than such market centers currently charge for removing liquidity (referred to by the Exchange as ‘‘One Under’’ pricing). Based on changes in pricing at NYSE, BYX is proposing to increase its fee for a Destination Specific Orders executed at NYSE to align its fees so that the fee remains $0.0001 less per share for orders routed to NYSE. Specifically, the Exchange proposes to increase the fee charged for BYX + NYSE Destination Specific Orders executed at NYSE from $0.0020 per share to $0.0022 per share. In addition, the Exchange offers a variety of routing strategies, including ‘‘SLIM’’ and ‘‘TRIM,’’ each of which has a specific fee for an execution that occurs at NYSE. (ii) Elimination of Dark Scan The Exchange has discontinued functionality that allowed a User to send an order that routes to certain dark liquidity venues prior to exposing the order to the Exchange’s order book (referred to by the Exchange as a ‘‘Dark Scan’’ order). Accordingly, the Exchange proposes to remove reference to Dark Scan orders from 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 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 2729 requirements of Section 6 of the Act.6 Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,7 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. 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 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 Pursuant to Section 19(b)(3)(A)(ii) of the Act 8 and Rule 19b–4(f)(2) thereunder,9 the Exchange has designated this proposal as establishing or changing a due, fee, or other charge applicable to its members, which renders the proposed rule change effective upon filing. 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: 6 15 U.S.C. 78f. U.S.C. 78f(b)(4). 8 15 U.S.C. 78s(b)(3)(A)(ii). 9 17 CFR 240.19b–4(f)(2). 7 15 E:\FR\FM\14JAN1.SGM 14JAN1 2730 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 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–BYX–2011–001 on the subject line. Paper Comments mstockstill on DSKH9S0YB1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63687; File No. SR–BX– 2011–002] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a $5 Strike Price Program on the Boston Options Exchange Facility January 10, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 All submissions should refer to File notice is hereby given that, on January Number SR–BYX–2011–001. This file 10, 2011, NASDAQ OMX BX, Inc. (the number should be included on the ‘‘Exchange’’) filed with the Securities subject line if e-mail is used. To help the and Exchange Commission (the Commission process and review your ‘‘Commission’’) the proposed rule comments more efficiently, please use change as described in Items I and II only one method. The Commission will below, which Items have been prepared post all comments on the Commission’s by the Exchange. The Exchange filed the Internet Web site (https://www.sec.gov/ proposed rule change pursuant to rules/sro/shtml). Copies of the Section 19(b)(3)(A) of the Act 3 and Rule submission, all subsequent 19b–4(f)(6) thereunder,4 which renders amendments, all written statements the proposal effective upon filing with with respect to the proposed rule the Commission. The Commission is change that are filed with the publishing this notice to solicit Commission, and all written comments on the proposed rule change communications relating to the from interested persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the provisions of 5 U.S.C. 552, will be The Exchange proposes to amend available for Web site viewing and Chapter IV, Section 6 (Series of Options printing in the Commission’s Public Contracts Open for Trading) of the Rules Reference Room, 100 F Street, NE., of the Boston Options Exchange Group, Washington, DC 20549, on official LLC (‘‘BOX’’) to allow BOX to list and business days between the hours of 10 trade series in intervals of $5 or greater a.m. and 3 p.m. Copies of such filing will also be available for inspection and where the strike price is more than $200 in up to five (5) option classes on copying at the principal office of the individual stocks (‘‘$5 Strike Price Exchange. All comments received will Program’’), and to clarify that BOX may be posted without change; the list option classes designated by other Commission does not edit personal securities exchanges that employ a identifying information from similar $5 Strike Price Program under submissions. You should submit only their respective rules. The text of the information that you wish to make proposed rule change is available from available publicly. All submissions should refer to File No. SR–BYX–2011– the principal office of the Exchange, on the Commission’s Web site at https:// 001 and should be submitted on or www.sec.gov, at the Commission’s before February 4, 2011. Public Reference Room, and also on the For the Commission, by the Division of Exchange’s Internet Web site at https:// Trading and Markets, pursuant to delegated nasdaqomxbx.cchwallstreet.com/ authority.10 NASDAQOMXBX/Filings/. Elizabeth M. Murphy, Secretary. 10 17 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 2 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 17:03 Jan 13, 2011 Jkt 223001 PO 00000 Frm 00086 Fmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to modify Chapter IV, Section 6(d) of the BOX Rules to allow BOX to list and trade options series in intervals of $5 or greater where the strike price is more than $200 in up to five (5) option classes on individual stocks (‘‘$5 Strike Price Program’’) to provide investors and traders additional opportunities and strategies to hedge high priced securities. Additionally, this proposed rule change will clarify that BOX may list series on any other option classes if those classes are specifically designated by other securities exchanges that employ a similar $5 Strike Price Program under their respective rules. Similar reciprocity currently is permitted with BOX’s $1 Strike Program, $.50 Strike Program and $2.50 Strike Program.5 Currently, Chapter IV, Section 6(d)(iii) of the BOX Rules permits strike price intervals of $10 or greater where the strike price is greater than $200.6 The Exchange is proposing to add the proposed $5 Strike Price Program as an exception to the $10 or greater program language in Chapter IV, Section 6. The proposal would allow BOX to list series in intervals of $5 or greater where the strike price is more than $200 in up to five (5) option classes on individual stocks. The Exchange specifically proposes to create a new sub-section (d)(v) to Chapter IV, Section 6 which would state, ‘‘BOX may list series in intervals of $5 or greater where the strike price is more than $200 in up to 5 See Supplementary Material .02, .03, and .06 to Chapter IV, Section 6 of the BOX Rules. 6 Chapter IV, Section 6(d) of the BOX Rules also permits strike price intervals of $5.00 or greater where the strike price is greater than $25.00 but less than $200; and $2.50 or greater where the strike price is $25.00 or less. [FR Doc. 2011–664 Filed 1–13–11; 8:45 am] BILLING CODE 8011–01–P 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 self-regulatory organization 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 self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. Sfmt 4703 E:\FR\FM\14JAN1.SGM 14JAN1

Agencies

[Federal Register Volume 76, Number 10 (Friday, January 14, 2011)]
[Notices]
[Pages 2729-2730]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-664]



[[Page 2729]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63662; File No. SR-BYX-2011-001]


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.

January 6, 2011.
    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 January 4, 2011, BATS Y-Exchange, Inc. (``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. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify its fee schedule applicable to 
Members \5\ of the Exchange pursuant to BYX Rules 15.1(a) and (c). 
Changes to the fee schedule pursuant to this proposal will be effective 
upon filing.
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    \5\ A Member is any registered broker or dealer that has been 
admitted to membership in the Exchange.
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    The text of the proposed rule change is available at the Exchange's 
Web site at https://www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II.Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify its fee schedule applicable to use 
of the Exchange effective January 4, 2011, in order to: (i) Amend the 
fees for certain routing strategies based on a change of fees at the 
New York Stock Exchange (``NYSE''); and (ii) remove reference to a 
routing strategy called ``Dark Scan'' that the Exchange has ceased 
offering.
(i) One Under Pricing for Certain Orders Executed at NYSE
    The Exchange has previously provided a discounted price fee for 
Destination Specific Orders routed to certain of the largest market 
centers measured by volume (NYSE, NYSE Arca and NASDAQ), which, in each 
instance has been $0.0001 less per share for orders routed to such 
market centers by the Exchange than such market centers currently 
charge for removing liquidity (referred to by the Exchange as ``One 
Under'' pricing). Based on changes in pricing at NYSE, BYX is proposing 
to increase its fee for a Destination Specific Orders executed at NYSE 
to align its fees so that the fee remains $0.0001 less per share for 
orders routed to NYSE. Specifically, the Exchange proposes to increase 
the fee charged for BYX + NYSE Destination Specific Orders executed at 
NYSE from $0.0020 per share to $0.0022 per share. In addition, the 
Exchange offers a variety of routing strategies, including ``SLIM'' and 
``TRIM,'' each of which has a specific fee for an execution that occurs 
at NYSE.
(ii) Elimination of Dark Scan
    The Exchange has discontinued functionality that allowed a User to 
send an order that routes to certain dark liquidity venues prior to 
exposing the order to the Exchange's order book (referred to by the 
Exchange as a ``Dark Scan'' order). Accordingly, the Exchange proposes 
to remove reference to Dark Scan orders from 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.\6\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\7\ 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. 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
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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

    Pursuant to Section 19(b)(3)(A)(ii) of the Act \8\ and Rule 19b-
4(f)(2) thereunder,\9\ the Exchange has designated this proposal as 
establishing or changing a due, fee, or other charge applicable to its 
members, which renders the proposed rule change effective upon filing.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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:

[[Page 2730]]

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-2011-001 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-2011-001. 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 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 will also 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 No. SR-BYX-2011-001 and should be 
submitted on or before February 4, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-664 Filed 1-13-11; 8:45 am]
BILLING CODE 8011-01-P
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