Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Provide a Last Sale Data Feed, 40529-40531 [2013-16090]
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Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–NASDAQ–2013–088, and
should be submitted on or before July
26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–16087 Filed 7–3–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69891; File No. SR–BYX–
2013–022]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Provide a Last Sale
Data Feed
June 28, 2013.
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 June 25,
2013, 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 and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it 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
tkelley on DSK3SPTVN1PROD with NOTICES
The Exchange filed a proposal to
make available a new data feed to data
recipients.5 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.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
5 Exchange data recipients include Members of
the Exchange as well as non-Members that have
entered into an agreement with the Exchange that
permits them to receive Exchange data.
1 15
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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 aspects 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 make available an
additional Exchange data feed for
receipt by Exchange data recipients. The
Exchange currently offers all of its
various data feeds free of charge, though
the Exchange intends to file a proposal
shortly to commence charging for
certain of such feeds. The data feeds
currently offered by the Exchange
include: (i) TCP PITCH; (ii) Multicast
PITCH; (iii) TOP; (iv) DROP; (v)
Historical Data; and (vi) Latency
Monitoring (collectively, the ‘‘Data
Feeds’’). The Exchange provides
detailed and up to date technical
information regarding each of the Data
Feeds currently offered by the Exchange
on its public Web site.6 All orders and
executions displayed through the Data
Feeds are anonymous and do not
contain the identity of the party that
submitted the order.
The Exchange is proposing to amend
Rule 11.22 in order to begin offering a
new feed, the Last Sale Feed, to
Members and non-members. The Last
Sale Feed will be a direct data feed
product that provides real-time,
intraday trade information, including
price, volume and time of executions.
The Last Sale Feed will not include
quotation information.
Currently, the Exchange provides realtime last sale information from its
market center to the Security
Information Processors (‘‘SIPs’’) for the
national market system plans governing
trading in NYSE listed securities (‘‘Tape
A securities’’), NASDAQ listed
securities (‘‘Tape C securities’’), and
securities listed on exchanges other than
NYSE or NASDAQ (‘‘Tape B
securities’’). The SIPs then consolidate
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6 https://www.batstrading.com/support/.
Frm 00105
Fmt 4703
Sfmt 4703
40529
the Exchange’s last sale information
with similar information from other
market centers, and disseminate the
consolidated last sale data to market
participants, including market data
vendors. The Last Sale Feed will
include last sale information regarding
all Tape A securities, Tape B securities
and Tape C securities with respect to
activity occurring solely on the
Exchange.
Various data recipients may wish to
subscribe to and use the Last Sale Feed.
For instance, data recipients that
provide real-time market information on
public Web sites or offer dynamic stock
tickers, portfolio trackers, price/time
graphs and other visual systems can use
the Last Sale Feed in lieu of using the
Exchange’s existing Data Feeds. Data
recipients may prefer the BATS Last
Sale Feed because the Exchange’s
existing Data Feeds contain a significant
amount of additional information that
the data recipients may not need, which
may result in unnecessary technology
costs (e.g., development,
telecommunications or storage costs).
The Exchange notes that similar marketspecific last sale data products are
offered by other market centers,
including an identical data feed offered
by the Exchange’s affiliate, BATS
Exchange, Inc. (‘‘BATS BZX’’).7
No market participant is required to
subscribe to the Last Sale Feed because
the same last sale prices are available in
the Exchange’s other Data Feeds. Market
participants can also gain access to BYX
last sale prices that are integrated with
the prices that other markets make
available through the SIPs. Indeed, even
though the Last Sale Feed may provide
to some participants an efficient
alternative to the consolidated price
information that investors and brokerdealers can receive on a consolidated
basis from the SIPs, the Exchange
believes that the information that the
Exchange contributes to the
consolidated tape and the increasingly
lower latency of the data feeds offered
by the SIPs will continue to satisfy the
needs of the vast majority of individual
and professional investors. Although
certain data recipients might
supplement their data feeds by adding
the Last Sale Feed, it is unlikely that
data recipients or distributors will
replace the consolidated last sale feed
provided by the SIPs with the Last Sale
Feed. The Exchange represents that it
7 See BATS BZX Rule 11.22(g); NASDAQ Stock
Market Rule 7039; NASDAQ OMX BX Rule 7039;
see also Securities Exchange Act Release No. 61112
(December 4, 2009), 74 FR 65569 (December 10,
2009) (File No. SR–BX–2009–077) (filing of an
immediately effective rule related to introduction of
a last sale feed by NASDAQ OMX BX).
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40530
Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
will not distribute its last sale feed on
a more timely basis than it makes
available the data that is provided to the
SIPs for consolidation and
dissemination.
In addition to offering a Last Sale
Feed to market participants as described
above, the Exchange proposes to
eliminate reference to a data feed no
longer offered by the Exchange, TCP
FAST PITCH. As set forth in Rule
11.22(b), the Exchange discontinued
offering TCP FAST PITCH on August 1,
2011.
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.8
Specifically, the Exchange believes that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,9 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
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, and it is not designed to
permit unfair discrimination among
customers, brokers, or dealers.
Specifically, the Exchange believes that
this proposal is in keeping with those
principles by promoting increased
transparency and efficiency through the
dissemination of BYX data through an
additional feed.
tkelley on DSK3SPTVN1PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the proposed amendment will
allow the Exchange to offer a data feed
that is similar to data feeds offered by
several of the Exchange’s competitors.
As noted above, although certain data
recipients might supplement their data
feeds by adding the Last Sale Feed, it is
unlikely that data recipients or
distributors will replace the
consolidated last sale feed provided by
the SIPs with the Last Sale Feed.
8 15
9 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
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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) thereunder.11
The Exchange has requested that the
Commission waive the 30-day operative
delay so that the Exchange may
commence offering the Last Sale Feed at
the same time as certain of the
Exchange’s other Data Feeds, which are
already codified in Rule 11.22, and
become subject to fees, which the
Exchange has currently planned for July
1, 2013, subject to such fees being filed
with the Commission. The Exchange
noted that a Last Sale Feed is already
available for the Exchange’s affiliate,
BATS Exchange, Inc. (‘‘BATS BZX’’),
and stated that it believes it will help to
avoid confusion and is therefore in the
public interest if the Exchange is able to
offer the Last Sale Feed on the same
terms as of July 1, 2013. The Exchange
noted that the receipt and use of the
proposed Last Sale Feed is strictly
voluntary and that such feed does not
contain information not already made
available through the Exchange’ other
Data Feeds. The Commission has
determined that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest because such waiver will enable
BYX to implement the proposed rule
change without undue delay in a
manner consistent with a proposed rule
change previously approved by the
Commission.12 Therefore, the
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. BYX has satisfied
this requirement.
12 See Securities Exchange Act Release No. 61885
(April 9, 2010), 75 FR 20018 (April 16, 2010) (order
approving the offering of BATS BZX’s Last Sale
Feed).
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11 17
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Commission designates the proposal
operative upon filing.13
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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 email to rulecomments@sec.gov. Please include File
Number SR–BYX–2013–022 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–2013–022. This file
number should be included on the
subject line if email 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.,
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
E:\FR\FM\05JYN1.SGM
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Federal Register / Vol. 78, No. 129 / Friday, July 5, 2013 / Notices
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of BYX. 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–
2013–022 and should be submitted on
or before July 26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–16090 Filed 7–3–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69889; File No. SR–BATS–
2013–035]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing of a
Proposed Rule Change, as Modified by
Amendment No. 1 Thereto, To Amend
the Competitive Liquidity Provider
Program
June 28, 2013.
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 June 17,
2013, BATS Exchange, Inc. (‘‘Exchange’’
or ‘‘BATS’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. On June 24, 2013, the
Exchange submitted Amendment No. 1
to the proposed rule change.3 The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as modified by Amendment No.
1 thereto, from interested persons.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 In Amendment No. 1, the Exchange made
technical corrections and amended the proposed
rule text to clarify that any CLP Security listed on
the Exchange shall be eligible for the CLP Program
for the first six months that it is listed on the
Exchange, regardless of the ETP’s CADV (as such
terms are defined below).
tkelley on DSK3SPTVN1PROD with NOTICES
1 15
VerDate Mar<15>2010
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to add
an Interpretation and Policy .03 to Rule
11.8 entitled ‘‘Competitive Liquidity
Provider Program for Exchange Traded
Products’’ to incentivize competitive
and aggressive quoting by market
makers registered with the Exchange
(‘‘Market Makers’’) 4 in Exchange-listed
ETPs.5 The Exchange is also proposing
to make a corresponding amendment to
Interpretation and Policy .02 to Rule
11.8, entitled ‘‘Competitive Liquidity
Provider Program’’ in order to reflect the
proposal to remove ETPs listed on the
Exchange from the existing Competitive
Liquidity Provider Program.
As proposed, the Competitive
Liquidity Provider Program for
Exchange Traded Products (the
‘‘Program’’) set forth in Interpretation
and Policy .03 to Rule 11.8 will be
effective for a one year pilot period
beginning from the date of
implementation of the program. During
the pilot, the Exchange will periodically
provide information to the Commission
about market quality with respect to the
Program.
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.
4 As defined in BATS Rules, the term ‘‘Market
Maker’’ means a Member that acts as a market
maker pursuant to Chapter XI of BATS Rules.
5 As proposed in Interpretation and Policy .03
(b)(4) to Rule 11.8, the term ‘‘ETP’’ includes
Portfolio Depository Receipts, Index Fund Shares,
Trust Issued Receipts, and Managed Fund Shares,
which are defined in Rule 14.11(b), 14.11(c),
14.11(f), and 14.11(i), respectively, which the
Exchange may propose to expand in the future as
it adds products which may be listed on the
Exchange. Any such expansion would require the
Exchange to file a proposal with the Commission
under Rule 19b–4 of the Act.
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Fmt 4703
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40531
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Background
On August 30, 2011, the Exchange
received approval of rules applicable to
the qualification, listing and delisting of
securities of issuers on the Exchange.6
More recently, the Exchange received
approval to operate a program that is
designed to incentivize certain Market
Makers registered with the Exchange as
Competitive Liquidity Providers to
enhance liquidity on the Exchange in all
Exchange-listed securities (the ‘‘CLP
Program’’).7 The Exchange subsequently
adopted financial incentives for the CLP
Program 8 and thereafter amended
certain components of the CLP Program,
including financial incentives and
quoting requirements for Competitive
Liquidity Providers in the CLP
Program.9
The purpose of this filing is to
propose new Interpretation and Policy
.03 to Rule 11.8, which is based
substantially on the CLP Program, that
seeks to incentivize certain market
makers registered with the Exchange as
Competitive Liquidity Providers
(‘‘CLPs’’) to enhance liquidity on the
Exchange in certain ETPs listed on the
Exchange and thereby qualify to receive
part of a daily rebate pursuant to the
Program (a ‘‘CLP Rebate’’). The
Exchange is also proposing to make
several related amendments to existing
Interpretation and Policy .02 to Rule
11.8 in order to remove ETPs from the
CLP Program so that it applies only to
corporate issues.
Proposed Interpretation and Policy
.03 to Rule 11.8 will be effective for a
one year pilot period. The pilot period
will commence when the Program is
implemented by the Exchange and a
CLP Company,10 on behalf of a CLP
6 See Securities Exchange Act Release No. 65225
(August 30, 2011), 76 FR 55148 (September 6, 2011)
(SR–BATS–2011–018).
7 See Securities Exchange Act Release No. 66307
(February 2, 2012), 77 FR 6608 (February 8, 2012)
(SR–BATS–2011–051).
8 See Securities Exchange Act Release No. 66427
(February 21, 2012), 77 FR 11608 (February 27,
2012) (SR–BATS–2012–011).
9 See Securities Exchange Act Release Nos. 67854
(September 13, 2012), 77 FR 58198 (September 19,
2012) (SR–BATS–2012–036) and 69190 (March 20,
2013), 78 FR 18384 (March 26, 2013) (SR–BATS–
2013–005).
10 As defined in proposed Interpretation and
Policy .03(b)(2) to Rule 11.8, the term ‘‘CLP
Company’’ means the trust or company housing the
ETP or, if the ETP is not a series of a trust or
company, then the ETP itself.
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Agencies
[Federal Register Volume 78, Number 129 (Friday, July 5, 2013)]
[Notices]
[Pages 40529-40531]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16090]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69891; File No. SR-BYX-2013-022]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Provide
a Last Sale Data Feed
June 28, 2013.
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 June 25, 2013, 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 and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to make available a new data feed to
data recipients.\5\ 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.
---------------------------------------------------------------------------
\5\ Exchange data recipients include Members of the Exchange as
well as non-Members that have entered into an agreement with the
Exchange that permits them to receive Exchange data.
---------------------------------------------------------------------------
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 aspects 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 make available an
additional Exchange data feed for receipt by Exchange data recipients.
The Exchange currently offers all of its various data feeds free of
charge, though the Exchange intends to file a proposal shortly to
commence charging for certain of such feeds. The data feeds currently
offered by the Exchange include: (i) TCP PITCH; (ii) Multicast PITCH;
(iii) TOP; (iv) DROP; (v) Historical Data; and (vi) Latency Monitoring
(collectively, the ``Data Feeds''). The Exchange provides detailed and
up to date technical information regarding each of the Data Feeds
currently offered by the Exchange on its public Web site.\6\ All orders
and executions displayed through the Data Feeds are anonymous and do
not contain the identity of the party that submitted the order.
---------------------------------------------------------------------------
\6\ https://www.batstrading.com/support/.
---------------------------------------------------------------------------
The Exchange is proposing to amend Rule 11.22 in order to begin
offering a new feed, the Last Sale Feed, to Members and non-members.
The Last Sale Feed will be a direct data feed product that provides
real-time, intraday trade information, including price, volume and time
of executions. The Last Sale Feed will not include quotation
information.
Currently, the Exchange provides real-time last sale information
from its market center to the Security Information Processors
(``SIPs'') for the national market system plans governing trading in
NYSE listed securities (``Tape A securities''), NASDAQ listed
securities (``Tape C securities''), and securities listed on exchanges
other than NYSE or NASDAQ (``Tape B securities''). The SIPs then
consolidate the Exchange's last sale information with similar
information from other market centers, and disseminate the consolidated
last sale data to market participants, including market data vendors.
The Last Sale Feed will include last sale information regarding all
Tape A securities, Tape B securities and Tape C securities with respect
to activity occurring solely on the Exchange.
Various data recipients may wish to subscribe to and use the Last
Sale Feed. For instance, data recipients that provide real-time market
information on public Web sites or offer dynamic stock tickers,
portfolio trackers, price/time graphs and other visual systems can use
the Last Sale Feed in lieu of using the Exchange's existing Data Feeds.
Data recipients may prefer the BATS Last Sale Feed because the
Exchange's existing Data Feeds contain a significant amount of
additional information that the data recipients may not need, which may
result in unnecessary technology costs (e.g., development,
telecommunications or storage costs). The Exchange notes that similar
market-specific last sale data products are offered by other market
centers, including an identical data feed offered by the Exchange's
affiliate, BATS Exchange, Inc. (``BATS BZX'').\7\
---------------------------------------------------------------------------
\7\ See BATS BZX Rule 11.22(g); NASDAQ Stock Market Rule 7039;
NASDAQ OMX BX Rule 7039; see also Securities Exchange Act Release
No. 61112 (December 4, 2009), 74 FR 65569 (December 10, 2009) (File
No. SR-BX-2009-077) (filing of an immediately effective rule related
to introduction of a last sale feed by NASDAQ OMX BX).
---------------------------------------------------------------------------
No market participant is required to subscribe to the Last Sale
Feed because the same last sale prices are available in the Exchange's
other Data Feeds. Market participants can also gain access to BYX last
sale prices that are integrated with the prices that other markets make
available through the SIPs. Indeed, even though the Last Sale Feed may
provide to some participants an efficient alternative to the
consolidated price information that investors and broker-dealers can
receive on a consolidated basis from the SIPs, the Exchange believes
that the information that the Exchange contributes to the consolidated
tape and the increasingly lower latency of the data feeds offered by
the SIPs will continue to satisfy the needs of the vast majority of
individual and professional investors. Although certain data recipients
might supplement their data feeds by adding the Last Sale Feed, it is
unlikely that data recipients or distributors will replace the
consolidated last sale feed provided by the SIPs with the Last Sale
Feed. The Exchange represents that it
[[Page 40530]]
will not distribute its last sale feed on a more timely basis than it
makes available the data that is provided to the SIPs for consolidation
and dissemination.
In addition to offering a Last Sale Feed to market participants as
described above, the Exchange proposes to eliminate reference to a data
feed no longer offered by the Exchange, TCP FAST PITCH. As set forth in
Rule 11.22(b), the Exchange discontinued offering TCP FAST PITCH on
August 1, 2011.
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.\8\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\9\ 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 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, and it is not designed to
permit unfair discrimination among customers, brokers, or dealers.
Specifically, the Exchange believes that this proposal is in keeping
with those principles by promoting increased transparency and
efficiency through the dissemination of BYX data through an additional
feed.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposed
amendment will allow the Exchange to offer a data feed that is similar
to data feeds offered by several of the Exchange's competitors. As
noted above, although certain data recipients might supplement their
data feeds by adding the Last Sale Feed, it is unlikely that data
recipients or distributors will replace the consolidated last sale feed
provided by the SIPs with the Last Sale Feed.
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) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
BYX has satisfied this requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay so that the Exchange may commence offering the Last
Sale Feed at the same time as certain of the Exchange's other Data
Feeds, which are already codified in Rule 11.22, and become subject to
fees, which the Exchange has currently planned for July 1, 2013,
subject to such fees being filed with the Commission. The Exchange
noted that a Last Sale Feed is already available for the Exchange's
affiliate, BATS Exchange, Inc. (``BATS BZX''), and stated that it
believes it will help to avoid confusion and is therefore in the public
interest if the Exchange is able to offer the Last Sale Feed on the
same terms as of July 1, 2013. The Exchange noted that the receipt and
use of the proposed Last Sale Feed is strictly voluntary and that such
feed does not contain information not already made available through
the Exchange' other Data Feeds. The Commission has determined that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest because such waiver will enable BYX
to implement the proposed rule change without undue delay in a manner
consistent with a proposed rule change previously approved by the
Commission.\12\ Therefore, the Commission designates the proposal
operative upon filing.\13\
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\12\ See Securities Exchange Act Release No. 61885 (April 9,
2010), 75 FR 20018 (April 16, 2010) (order approving the offering of
BATS BZX's Last Sale Feed).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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 email to rule-comments@sec.gov. Please include
File Number SR-BYX-2013-022 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-2013-022. This file
number should be included on the subject line if email 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.,
[[Page 40531]]
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of BYX. 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-2013-022 and should be
submitted on or before July 26, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-16090 Filed 7-3-13; 8:45 am]
BILLING CODE 8011-01-P