Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Revenue Sharing Program With Correlix and a Free Trial Period for New Users of the Correlix Service, 63695-63696 [2011-26385]

Download as PDF Federal Register / Vol. 76, No. 198 / Thursday, October 13, 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–ISE–2011–64 on the subject line. Paper Comments sroberts on DSK5SPTVN1PROD 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. 34–65496; File No. SR–BYX– 2011–027] Self-Regulatory Organizations; BATS Y–Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Revenue Sharing Program With Correlix and a Free Trial Period for New Users of the Correlix Service October 6, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’ or the ‘‘Exchange Act’’),1 and All submissions should refer to File Rule 19b–4 thereunder,2 notice is Number SR–ISE–2011–64. This file hereby given that on September 30, number should be included on the 2011, BATS Y–Exchange, Inc. (the subject line if e-mail is used. To help the ‘‘Exchange’’ or ‘‘BYX’’) filed with the Commission process and review your Securities and Exchange Commission comments more efficiently, please use (‘‘Commission’’) the proposed rule only one method. The Commission will change as described in Items I, II and III post all comments on the Commission’s below, which Items have been prepared Internet Web site (https://www.sec.gov/ by the Exchange. The Commission is rules/sro.shtml). Copies of the publishing this notice to solicit submission, all subsequent comments on the proposed rule change amendments, all written statements from interested persons. with respect to the proposed rule I. Self-Regulatory Organization’s change that are filed with the Statement of the Terms of Substance of Commission, and all written the Proposed Rule Change communications relating to the proposed rule change between the The Exchange is proposing to Commission and any person, other than establish a revenue sharing program those that may be withheld from the with Correlix, Inc. (‘‘Correlix’’) and a public in accordance with the free trial period for new subscribers to provisions of 5 U.S.C. 552, will be the Correlix service. available for Web site viewing and The text of the proposed rule change printing in the Commission’s Public is available at the Exchange’s Web site Reference Room, 100 F Street, NE., at https://www.batstrading.com, at the Washington, DC 20549, on official principal office of the Exchange, and at business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also the Commission’s Public Reference Room. will be available for inspection and copying at the principal office of the II. Self-Regulatory Organization’s ISE. All comments received will be Statement of the Purpose of, and posted without change; the Commission Statutory Basis for, the Proposed Rule does not edit personal identifying Change information from submissions. You should submit only information that In its filing with the Commission, the you wish to make available publicly. All Exchange included statements submissions should refer to File concerning the purpose of and basis for Number SR–ISE–2011–64 and should be the proposed rule change and discussed submitted on or before November 3, any comments it received on the 2011. proposed rule change. The text of these statements may be examined at the For the Commission, by the Division of places specified in Item IV below. The Trading and Markets, pursuant to delegated Exchange has prepared summaries, set authority.11 forth in Sections A, B, and C below, of Elizabeth M. Murphy, the most significant parts of such Secretary. statements. [FR Doc. 2011–26436 Filed 10–12–11; 8:45 am] BILLING CODE 8011–01–P 1 15 11 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:50 Oct 12, 2011 2 17 Jkt 226001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00096 Fmt 4703 Sfmt 4703 63695 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to establish a revenue sharing program with Correlix. The Exchange has entered into an agreement with Correlix to provide to Users 3 of the Exchange real-time analytical tools to measure the latency of orders to and from the Exchange’s system as well as the latency of market data updates transmitted from the Exchange systems to the User. Under the agreement, the Exchange will receive 30% of the total monthly subscription fees received by Correlix from parties who have contracted directly with Correlix to use their RaceTeam latency measurement service for the Exchange. The Exchange will not bill or contract with any Correlix RaceTeam customer directly. Pricing for the Correlix RaceTeam product for Users of the Exchange will be based on the number of ports requested by the User for monitoring by Correlix; each ‘‘port’’ is a FIX or binary order entry (‘‘BOE’’) protocol connection to the Exchange. The fee for Users of the Exchange will be an initial $1,500 monthly fee for the first 25 ports requested by the User for latency monitoring, and an additional $1,000 per month for each additional 25 ports (or portion thereof). Under the program, the Correlix data collector 4 will see an individualized unique identifier that will allow Correlix RaceTeam to determine round trip order time,5 from the time the order reaches the Exchange, through the Exchange matching engine, and back out of the Exchange. The RaceTeam product offering does not measure latency outside of the Exchange. The unique identifier serves as a technological information barrier so that the Correlix data collector will only be able to view data for Correlix RaceTeam subscribers related to latency. The Correlix data collector will not see subscriber’s individual order detail such as security, price or size. Individual RaceTeam subscribers’ logins will restrict access to only their own latency data. The Correlix data collector will see 3 A ‘‘User’’ is defined in BYX Rule 1.5(cc) as any member or sponsored participant of the Exchange who is authorized to obtain access to the System. 4 The Correlix data collector is a Correlix process that receives information from the Exchange that is subsequently taken into Correlix’s systems for latency monitoring purposes. 5 The product measures latency of orders whether the orders are rejected, executed, or partially executed. E:\FR\FM\13OCN1.SGM 13OCN1 63696 Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices sroberts on DSK5SPTVN1PROD with NOTICES no specific information regarding the trading activity of non-subscribers. The Exchange believes that the above arrangement will provide Users of the Exchange with greater transparency into the processing of their trading activity and allow them to make more efficient trading decisions. In addition, the Exchange proposes to establish a flexible 60-day free trial so parties will be eligible for one free 60day trial period of Correlix services whenever they initially elect to sign-up for the service, now or in the future. The Exchange is proposing the flexible trial to ensure that all Correlix subscribers have an equal opportunity to take advantage of an initial free trial period. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,6 in general, and furthers the objectives of Section 6(b)(5) of the Act,7 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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 Exchange believes the proposed rule will provide greater transparency into trade and information processing and thus allow market participants to make better-informed and more efficient trading decisions. In addition, the Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,8 in general, and with Section 6(b)(4) of the Act,9 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that the Exchange operates or controls. In particular, the Exchange notes that it operates in a highly competitive market in which market participants can readily direct orders to competing venues and that use of the Correlix RaceTeam product is completely voluntary. Further, the Exchange will make the RaceTeam product uniformly available pursuant to a standard non-discriminatory pricing schedule offered by Correlix and will 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). offer the free trial period on a uniform and non-discriminatory basis. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change imposes any burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b– 4(f)(6)(iii) thereunder.11 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 proposal is consistent with the Act. Comments may be submitted by any of the following methods: 16:50 Oct 12, 2011 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–26385 Filed 10–12–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION 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–2011–027 on the subject line. [Release No. 34–65494; File No. SR–BATS– 2011–044] 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–2011–027. This file October 6, 2011. 7 15 VerDate Mar<15>2010 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 also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BYX– 2011–027 and should be submitted on or before November 3, 2011. 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. 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 September 30, 2011, BATS Exchange, Inc. (the ‘‘Exchange’’ or ‘‘BATS’’) filed with the Securities and Exchange 12 17 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 240.19b–4(f)(6). Jkt 226001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\13OCN1.SGM 13OCN1

Agencies

[Federal Register Volume 76, Number 198 (Thursday, October 13, 2011)]
[Notices]
[Pages 63695-63696]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26385]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65496; File No. SR-BYX-2011-027]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Revenue Sharing Program With 
Correlix and a Free Trial Period for New Users of the Correlix Service

October 6, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'' or the ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ 
notice is hereby given that on September 30, 2011, BATS Y-Exchange, 
Inc. (the ``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 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.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to establish a revenue sharing program 
with Correlix, Inc. (``Correlix'') and a free trial period for new 
subscribers to the Correlix service.
    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 purpose of the proposed rule change is to establish a revenue 
sharing program with Correlix. The Exchange has entered into an 
agreement with Correlix to provide to Users \3\ of the Exchange real-
time analytical tools to measure the latency of orders to and from the 
Exchange's system as well as the latency of market data updates 
transmitted from the Exchange systems to the User. Under the agreement, 
the Exchange will receive 30% of the total monthly subscription fees 
received by Correlix from parties who have contracted directly with 
Correlix to use their RaceTeam latency measurement service for the 
Exchange. The Exchange will not bill or contract with any Correlix 
RaceTeam customer directly.
---------------------------------------------------------------------------

    \3\ A ``User'' is defined in BYX Rule 1.5(cc) as any member or 
sponsored participant of the Exchange who is authorized to obtain 
access to the System.
---------------------------------------------------------------------------

    Pricing for the Correlix RaceTeam product for Users of the Exchange 
will be based on the number of ports requested by the User for 
monitoring by Correlix; each ``port'' is a FIX or binary order entry 
(``BOE'') protocol connection to the Exchange. The fee for Users of the 
Exchange will be an initial $1,500 monthly fee for the first 25 ports 
requested by the User for latency monitoring, and an additional $1,000 
per month for each additional 25 ports (or portion thereof).
    Under the program, the Correlix data collector \4\ will see an 
individualized unique identifier that will allow Correlix RaceTeam to 
determine round trip order time,\5\ from the time the order reaches the 
Exchange, through the Exchange matching engine, and back out of the 
Exchange. The RaceTeam product offering does not measure latency 
outside of the Exchange. The unique identifier serves as a 
technological information barrier so that the Correlix data collector 
will only be able to view data for Correlix RaceTeam subscribers 
related to latency. The Correlix data collector will not see 
subscriber's individual order detail such as security, price or size. 
Individual RaceTeam subscribers' logins will restrict access to only 
their own latency data. The Correlix data collector will see

[[Page 63696]]

no specific information regarding the trading activity of non-
subscribers. The Exchange believes that the above arrangement will 
provide Users of the Exchange with greater transparency into the 
processing of their trading activity and allow them to make more 
efficient trading decisions.
---------------------------------------------------------------------------

    \4\ The Correlix data collector is a Correlix process that 
receives information from the Exchange that is subsequently taken 
into Correlix's systems for latency monitoring purposes.
    \5\ The product measures latency of orders whether the orders 
are rejected, executed, or partially executed.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to establish a flexible 60-day 
free trial so parties will be eligible for one free 60-day trial period 
of Correlix services whenever they initially elect to sign-up for the 
service, now or in the future. The Exchange is proposing the flexible 
trial to ensure that all Correlix subscribers have an equal opportunity 
to take advantage of an initial free trial period.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, 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 Exchange believes the 
proposed rule will provide greater transparency into trade and 
information processing and thus allow market participants to make 
better-informed and more efficient trading decisions.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In addition, the Exchange believes that the proposed rule change is 
consistent with the provisions of Section 6 of the Act,\8\ in general, 
and with Section 6(b)(4) of the Act,\9\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system that the Exchange operates or controls. In 
particular, the Exchange notes that it operates in a highly competitive 
market in which market participants can readily direct orders to 
competing venues and that use of the Correlix RaceTeam product is 
completely voluntary. Further, the Exchange will make the RaceTeam 
product uniformly available pursuant to a standard non-discriminatory 
pricing schedule offered by Correlix and will offer the free trial 
period on a uniform and non-discriminatory basis.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 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

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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 proposal 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-2011-027 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-2011-027. 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 also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BYX-2011-027 and should be 
submitted on or before November 3, 2011.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26385 Filed 10-12-11; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.