Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2729 

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). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

6 15 U.S.C. 78f. 

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

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

9 17 CFR 240.19b–4(f)(2). 

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 http://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. 

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: 

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2730 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

10 17 CFR 200.30–3(a)(12). 

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). 

5See Supplementary Material .02, .03, and .06 to 

Chapter IV, Section 6 of the BOX Rules. 

6Chapter 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. 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://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 

• 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 (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 

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

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–664 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

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

notice is hereby given that, on January 

10, 2011, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(6) thereunder,4 which renders 

the proposal 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 amend 

Chapter IV, Section 6 (Series of Options 

Contracts Open for Trading) of the Rules 

of the Boston Options Exchange Group, 

LLC (‘‘BOX’’) to allow BOX to list and 

trade 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’’), and to clarify that BOX may 

list option classes designated by other 

securities exchanges that employ a 

similar $5 Strike Price Program under 

their respective rules. The text of the 

proposed rule change is available from 

the principal office of the Exchange, on 

the Commission’s Web site at http:// 

www.sec.gov, at the Commission’s 

Public Reference Room, and also on the 

Exchange’s Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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. 

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 

mstockstill on DSKH9S0YB1PROD with NOTICES