[Federal Register Volume 75, Number 221 (Wednesday, November 17, 2010)]
[Notices]
[Pages 70325-70326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28895]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63299; File No. SR-BYX-2010-005]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Related to
Fees for Use of BATS Y-Exchange, Inc.
November 10, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 29, 2010, BATS Y-Exchange, Inc. (``Exchange'', ``BYX
Exchange'' or ``BYX'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which Items have been prepared by the
Exchange. BYX has designated the proposed rule change as one
establishing or changing a member due, fee, or other charge imposed by
the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-
4(f)(2) thereunder,\4\ which renders the proposed rule change effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to modify its fee schedule applicable to
Members \5\ of the Exchange pursuant to BYX Rules 15.1(a) and (c).
While changes to the fee schedule pursuant to this proposal will be
effective upon filing, the changes will become operative on November 1,
2010.
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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 http://www.batstrading.com, at the principal office of the
Exchange, on the Commission's Web site at http://www.sec.gov, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to modify its fee schedule to revise
pricing for routed orders that are sent to and executed by the
Exchange's affiliate, BATS Exchange, Inc. (``BZX Exchange''). Effective
November 1, 2010, BZX Exchange is increasing its standard fee to remove
liquidity to $0.0028 per share.\6\ The Exchange has various routing
strategies and order types that route to BZX Exchange and charge the
current remove rate charged by BZX Exchange. These strategies include
BYX + BZX Exchange Destination Specific Orders orders \7\ (referred to
by the Exchange as ``B2B'' orders), the TRIM routing strategy \8\ and
the SLIM routing strategy.\9\ The Exchange proposes to increase the fee
for executions at BZX Exchange through B2B, TRIM and SLIM to $0.0028
per share, consistent with the BZX Exchange fee increase.
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\6\ See ``BATS October U.S. Markets Update and Pricing November
1, 2010'' (October 25, 2010), available at: http://batstrading.com/resources/fee_schedule/2010/BATS-October-US-Markets-Update-and-Pricing-November-1-2010.pdf.
\7\ As defined in BYX Rule 11.9(c)(12), a ``Destination Specific
Order'' is ``[a] market or limit order that instructs the System to
route the order to a specified away trading center or centers, after
exposing the order to the BATS Book.''
\8\ As defined in BYX Rule 11.13(a)(3)(G), ``TRIM is a routing
option under which an order checks the System for available shares
and then is sent to destinations on the System routing table.''
\9\ As defined in BYX Rule 11.13(a)(3)(H), ``SLIM is a routing
option under which an order checks the System for available shares
and then is sent to destinations on the System routing table.''
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In addition to the changes described above, the Exchange proposes
to use the name ``BYX Exchange'' and ``BYX'' throughout the fee
schedule. Similarly, the Exchange proposes defining its affiliate, as
it has done above, as ``BZX Exchange.'' Also, the Exchange proposes to
make stylistic changes, including referring to its book of orders as
its ``order book,'' rather than just its ``book.''
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the
[[Page 70326]]
requirements of Section 6 of the Act. Specifically, the Exchange
believes that the proposed rule change is consistent with Section
6(b)(4) of the Act, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and other persons
using any facility or system which the Exchange operates or controls.
The Exchange notes that it operates in a highly competitive market in
which market participants can readily direct order flow to competing
venues if they deem fee levels at a particular venue to be excessive.
Also, although routing services offered by the Exchange are available
to all Members, Members are not required to use the Exchange's routing
services, but instead, the Exchange's routing services are completely
optional. Members can manage their own routing practices or can utilize
a myriad of other routing solutions that are available to market
participants. Finally, the change to the fee will allow the Exchange to
continue to charge its Members the same fee for orders routed to and
executed by its affiliate, BZX Exchange, as BZX Exchange would charge
directly if such Members routed to BZX Exchange directly.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Change Received From Members, Participants or Others
No written comments were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has been designated as a fee
change pursuant to Section 19(b)(3)(A)(ii) of the Act \10\ and Rule
19b-4(f)(2) thereunder,\11\ because it establishes or changes a due,
fee or other charge imposed on members by the Exchange. Accordingly,
the proposal is effective upon filing with the Commission.
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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-BYX-2010-005 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BYX-2010-005. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Web site (http://www.sec.gov/rules/sro.shtml). Copies
of the submission, all subsequent amendments, all written statements
with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street, NE., Washington,
DC 20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make publicly available. All submissions
should refer to File Number SR-BYX-2010-005 and should be submitted on
or before December 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-28895 Filed 11-16-10; 8:45 am]
BILLING CODE 8011-01-P