18280 Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange listed 

additional data that the Exchange will include in 

monthly reports to be provided to the Commission 

during the pilot program. 

4The Exchange previously filed a proposal to 

establish a directed order program for BATS 

Options. See Securities Exchange Act Release No. 

63403 (December 1, 2010), 75 FR 76059 (December 

7, 2010) (SR–BATS–2010–034) (notice of filing of 

directed order program proposal). The Exchange 

withdrew its original filing in its entirety and has 

re-filed this proposal to address comments received 

on the proposal by eliminating the originally 

proposed midpoint order functionality, to provide 

additional clarity in a few areas, and to propose 

operation of the directed order program on a pilot 

basis. In a manner consistent with this filing, the 

Exchange also responded to comments received on 

the original proposal. See Letter from Eric J. 

Swanson, Secretary, BATS Exchange, Inc. to 

Elizabeth M. Murphy, Secretary, U.S. Securities and 

Exchange Commission dated February 24, 2011. 

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–NYSE–2011–11 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–NYSE–2011–11. 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 20549–1090. Copies of 

the filing will also be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at http://www.nyse.com. 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–NYSE–2011–11 and should 

be submitted on or before April 22, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7654 Filed 3–31–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64132; File No. SR–BATS– 

2011–009] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Create a 

Directed Order Program on a 6-Month 

Pilot Basis 

March 28, 2011. 

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 March 16, 

2011, BATS Exchange, Inc. (‘‘Exchange’’ 

or ‘‘BATS’’) 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. 

On March 24, 2011, the Exchange filed 

Amendment No. 1 to the proposed rule 

filing.3 The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as modified by 

Amendment No. 1, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposal for the BATS 

Exchange Options Market (‘‘BATS 

Options’’) to create, on a pilot basis, new 

BATS Rule 21.1(d)(13), entitled ‘‘Market 

Maker Price Improving Orders’’ and new 

BATS Rule 21.1(d)(14), entitled 

‘‘Directed Orders.’’ The Exchange also 

proposes to amend existing BATS Rule 

21.1(d)(2), entitled ‘‘Price Improving 

Orders.’’ 

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 is proposing certain 

modifications and additions to its rules 

related to the trading of options. First, 

the Exchange is proposing the 

establishment of new Rule 21.1(d)(13), 

entitled Market Maker Price Improving 

Orders. Second the Exchange is 

proposing the establishment of new 

Rule 21.1(d)(14), entitled Directed 

Orders. Third, the Exchange is 

proposing to modify the text of Rule 

21.1(d)(6), entitled Price Improving 

Orders, to make a clarifying change.4

The Exchange is proposing the rule 

changes described below to establish a 

directed order program through which 

members of BATS Options (‘‘Options 

Members’’) can direct an order to a 

particular BATS Options Market Maker 

for potential execution at a price 

improved over the existing National 

Best Bid (‘‘NBB’’) or National Best Offer 

(‘‘NBO’’). As part of this program, BATS 

is proposing to define two new order 

types. The first would be new Rule 

21.1(d)(13), entitled Market Maker Price 

Improving Orders, which are orders 

from a BATS Options Market Maker to 

buy or sell an option that has a 

displayed price and size and a nondisplayed price at which the BATS 

Options Market Maker is willing to 

trade with a Directed Order. As 

proposed, a Market Maker Price 

Improving Order would be ranked on 

the BATS Options Book at its displayed 

price. The non-displayed price of the 

Market Maker Price Improving Order 

would not be entered into the BATS 

Options Book, but would be, along with 

its displayed size, converted to a buy or 

sell order at its non-displayed price in 

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Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices 18281 

5As described in proposed Rule 11.9(c)(13)(B), all 

other interest on the BATS Book at prices equal to 

or better than the non-displayed price of the Market 

Maker Price Improving Order has priority over the 

Market Maker Price Improving Order and, hence, 

will execute first against the Directed Order. 

6Emphasis added. 

response to a Directed Order directed to 

the BATS Options Market Maker. For 

the avoidance of doubt, the Exchange 

reiterates that, as proposed, the full 

displayed size of a Market Maker Price 

Improving Order, and only the full 

displayed size of a Market Maker Price 

Improving Order, is available to trade 

with a Directed Order directed to a 

BATS Options Market Maker. Key to the 

structure of the proposal is that it 

creates incentives for displayed price 

and size discovery available to all 

market participants. 

The second new order type proposed 

would be new Rule 21.1(d)(14), entitled 

Directed Orders, which are orders from 

a BATS Options Member that are 

directed for execution to a particular 

BATS Options Market Maker. For a 

BATS Options Market Maker to 

participate in an execution against a 

Directed Order, (1) the Directed Order 

must be from a BATS Options Member 

that is on a list of eligible Options 

Members provided to the Exchange by 

the BATS Options Market Maker, in a 

manner prescribed by the Exchange, (2) 

the BATS Options Market Maker must 

be publicly quoting on BATS at the NBB 

(for sell Directed Orders) or NBO (for 

buy Directed Orders) with a Market 

Maker Price Improving Order that 

contains a non-displayed amount of 

price improvement over the NBB or 

NBO at the time the Directed Order 

arrives to the Exchange, and (3) the 

Directed Order must be marketable 

against the non-displayed price of the 

Market Maker Price Improving Order. 

If the above conditions are met, and 

if there are no other non-displayed 

orders at prices equal to or better than 

the non-displayed price of the Market 

Maker Price Improving Order, the 

Directed Order will trade with the 

Market Maker Price Improving Order up 

to the full displayed size of the Market 

Maker Price Improving Order. Any 

remaining contracts from the Directed 

Order will be handled, consistent with 

the instructions on the Directed Order, 

in accordance with the order display 

and book processing requirements of 

Rule 21.8 and, if applicable, processed 

in accordance with the order routing 

requirements of Rule 21.9. 

If there are non-displayed orders on 

the BATS Options Book at prices equal 

to or better than the non-displayed price 

of the Market Maker Price Improving 

Order, those other non-displayed orders 

will in all cases have priority over the 

non-displayed price of the Market 

Maker Price Improving Order. In such 

circumstances, the Market Maker Price 

Improving Order may still execute at its 

non-displayed price against the Directed 

Order consistent with the price/time 

priority provisions of Rule 21.8 to the 

extent of any remaining contracts of the 

Directed Order. Any contracts 

remaining of the Directed Order will 

continue to be processed in a manner 

consistent with the order display and 

book processing provisions of Rule 21.8, 

and if applicable, the order routing 

provisions of Rule 21.9. 

As proposed, an Options Market 

Maker Price Improving Order would be 

required to have a non-displayed price 

better than the displayed limit price that 

could be entered in an increment as 

small as (1) one cent. The non-displayed 

price of a Market Maker Price Improving 

Order is not entered into the BATS 

Options Book, and is only eligible to 

trade with a Directed Order to the extent 

that certain conditions precedent are 

satisfied, including (1) that the 

displayed price of the Market Maker 

Price Improving Order is equal to the 

NBB (for sell directed orders) or the 

NBO (for buy directed orders) at the 

time the Directed Order arrives to the 

Exchange, and (2) that there are no other 

orders on the BATS Options Book at 

prices equal to or better than the nondisplayed prices of the Market Maker 

Price Improving Order.5

As noted elsewhere in this proposal, 

in all cases a Market Maker Price 

Improving Order must include a 

displayed price that is equal to the NBB 

or NBO for such order to be eligible to 

execute at its non-displayed price 

against a Directed Order. As such, the 

proposal enhances the public price 

discovery process—if the market maker 

is not publicly quoting at the NBB or 

NBO at the time the Directed Order 

arrives to BATS Options, the market 

maker will only trade with that Directed 

Order to the extent that any other 

interest on the BATS Options Book at or 

better than the NBB or NBO and any 

other interest with price/time priority 

over the market maker’s order is first 

satisfied. Accordingly, in order to enjoy 

the benefits of trading against Directed 

Orders, a market maker is required to 

publicly display a competitively priced 

order which is available, and hence at 

risk, to all Options Members. 

The Exchange is also proposing to 

delete certain language from its existing 

Price Improving Order rule text. In 

particular, as currently written, Rule 

21.1(d)(6) states that ‘‘Price Improving 

Orders that are available for display 

* * *.’’ 6 The Exchange is proposing to 

delete the clause ‘‘that are available to 

display,’’ which although intended to 

simply distinguish an order executed 

upon arrival to the Exchange from an 

order posting to the BATS Options 

Book, has the potential to cause 

confusion to the extent it may suggest 

that Price Improving Orders can be 

posted on the BATS Options Book 

without a displayed price. That is not 

the case today, would not be the case 

under the proposed changes to the rules, 

and BATS is proposing to delete this 

clause to eliminate any confusion on 

this point. 

The elements of the Exchange’s 

proposal to create a directed order 

program are specifically designed to 

enhance opportunities available in the 

market for Options Members to obtain 

price improvement for customer orders 

in the context of BATS’ price/time 

priority, continuous auction market. By 

requiring BATS Options Market Makers 

to be quoting at the NBB or NBO to 

participate in an execution against a 

Directed Order directed to it, BATS’ 

proposal incentivizes market makers to 

competitively quote and thereby 

furthers the public price discovery 

process. By further requiring BATS 

Options Market Makers to include a 

non-displayed price better than the 

displayed limit price at an increment as 

small as (1) one cent, the proposal 

increases the opportunities for customer 

orders to receive price improvement 

over the NBBO. Moreover, by permitting 

all Options Members to enter orders in 

the same increments as Market Maker 

Price Improving Orders, and according 

those orders in all cases priority at their 

non-displayed prices over Market Maker 

Price Improving Orders, the proposal 

avoids creating participation guarantees 

in place at other markets and instead 

promotes market-wide competition for 

executions at prices between the NBBO. 

Further, the proposal provides all 

market participants, including other 

market makers that do not have orders 

directed to them, with the ability to 

compete with market makers for 

executions against Directed Orders. 

BATS notes that all members, including 

market makers, have the ability to enter 

Price Improving Orders and any other 

orders that can compete in the same 

price increments with a particular 

market maker’s Market Maker Price 

Improving Order. In options classes not 

subject to the penny pilot, market 

makers and non-market makers have the 

ability under the proposal to post orders 

with non-displayed prices at penny 

increments between the NBBO. 

Importantly, in all cases, market makers 

cede priority to all other orders priced 

equal to or better than the nonmstockstill on DSKH9S0YB1PROD with NOTICES

18282 Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices 

7Specifically, BATS Rule 22.12 prohibits Options 

Members from executing ‘‘as principal orders they 

represent as agent unless (a) agency orders are first 

exposed on BATS Options for at least one (1) 

second or (b) the Options Member has been bidding 

or offering on BATS Options for at least one (1) 

second prior to receiving an agency order that is 

executable against such bid or offer (exposure).’’ 

Rule 22.12 prevents Options Members from 

executing agency orders to increase economic gain 

from trading against the order without first giving 

other trading interest on BATS Options an 

opportunity to either trade with the agency order 

or to trade at the execution price when the Options 

Member was already bidding or offering on the 

book. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10See, e.g., BATS Options Rule 21.1(d)(6) ‘‘Price 

Improving Orders’’; Nasdaq Options Market Rule 

Chapter VI, Section 1(e)(6) ‘‘Price Improving 

Orders’’. 

11See, e.g., Securities Exchange Act Release No. 

51759 (May 27, 2005), 70 FR 32860 (June 6, 2005) 

(SR–Phlx–2004–91) (order approving the 

establishment of a directed order process with 

certain specialist participation guarantees). 

12See Securities Exchange Act Release No. 52827 

(November 23, 2005), 70 FR 72193 (December 1, 

2005) (SR–PCX–2005–56) (order approving certain 

modifications to the PCX Equities, Inc.’s Directed 

Order Process on the Archipelago Exchange). 

displayed price of their Market Maker 

Price Improving Orders. In options 

classes subject to the penny pilot, all 

market participants can effectively 

compete against non-displayed Market 

Maker Price Improving Orders simply 

by improving the NBBO. In BATS’ 

price/time priority market, the nondisplayed portion of a Market Maker 

Price Improving Order will only execute 

at the non-displayed price when that 

price is the best available price. In 

addition, through its fee structure and 

‘‘maker/taker’’ pricing, BATS currently 

incents and intends to continue to 

provide certain incentives to BATS 

Options Members to display 

aggressively priced liquidity on BATS 

Options. 

BATS also wishes to make clear that 

its proposal has no impact on its 

existing rules regarding customer order 

facilitation. Today, BATS members 

seeking to facilitate customer order on 

BATS Options must comply with 

facilitation rules requiring the member 

to expose either the customer order or 

the principal order on the exchange for 

one second prior to a facilitation 

execution. These rules are similar to 

rules in effect on other exchanges, and 

the Exchange’s proposal does not amend 

these requirements.7

Pursuant to the proposed directed 

order program, a BATS Options Member 

who notifies a BATS Options Market 

Maker of its intention to submit a 

Directed Order to BATS Options so that 

the BATS Options Market Maker could 

change its quotation to match the NBB 

or NBO immediately prior to 

submission of the Directed Order would 

be engaging in conduct inconsistent 

with just and equitable principles of 

trade in violation of Rule 3.1 and Rule 

18.4(f). In addition, a BATS Options 

Market Maker who becomes aware of a 

customer order from an affiliated 

broker-dealer or desk within the same 

broker-dealer and acts on such 

information to change its quotations to 

match the NBB or NBO immediately 

prior to submission of a Directed Order 

would be in violation of the Exchange’s 

Rule 22.10, ‘‘Limitations on Dealings’’. 

BATS will proactively conduct 

surveillance for such conduct and 

enforce against such violations. 

The Exchange is proposing to adopt 

Rules 21.1(d)(13) and 21.1(d)(14) as a 

six month pilot. During this pilot 

period, the Exchange will study the 

impact of the rules and will provide the 

Commission with monthly reports 

detailing its ongoing review of the pilot. 

These reports will include: data and 

analysis regarding price improvement 

trends following implementation of the 

directed order program, an assessment 

of the quotation spreads on BATS 

Options, data reflecting the size and 

depth of markets, and descriptions of 

any patterns that emerge during the 

pilot period. Specific data included in 

such reports will include, but not be 

limited to: (1) The number of Directed 

Orders submitted to BATS Options; (2) 

the number of Market Maker Price 

Improving Orders submitted to BATS 

Options; (3) information regarding the 

types of market participants that sent 

Directed Orders; (4) the number of 

Market Makers that participated in the 

directed order program; (5) the 

percentage of time that Market Makers 

participating in the directed order 

program were at the NBBO when a 

Directed Order arrived at BATS 

Options; (6) the number of orders, 

excluding Market Maker Price 

Improving Orders, against which an 

incoming Directed Order executed; (7) 

the proportion of each Directed Order 

that was executed against a Market 

Maker Price Improving Order; (8) the 

percentage of Directed Orders that 

received price improvement over the 

NBBO; (9) the average amount of price 

improvement for Directed Orders; and 

(10) data related to the quality of the 

best bid and offer on BATS Options. 

2. Statutory Basis 

Approval of the rule changes 

proposed in this submission on a pilot 

basis 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(b) of the Act.8

In particular, the proposed change is 

consistent with Section 6(b)(5) of the 

Act,9 because it would promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. 

The Exchange believes that the 

proposed rule meets these requirements 

in that it promotes competition for 

customer orders and furthers the public 

price discovery process by both 

incentivizing BATS Options Market 

Makers to publicly display aggressive 

quotes at the NBBO, as well as 

incentivizing BATS Options Market 

Makers and all other BATS Options 

Members to post non-displayed prices 

better than the NBBO. BATS notes that 

the Commission has previously found 

consistent with the Act non-displayed 

order types designed to provide price 

improvement at prices smaller than the 

minimum price variation in listed 

options.10

Moreover, the Commission has 

previously approved rules that provide 

specialist or market maker guarantees 

up to a certain percentage so long as the 

specialist or market maker is quoting at 

the NBBO and such guarantees do not 

rise to a level that could have a material 

adverse impact on quote competition 

with a particular exchange.11 While 

BATS’ directed order program requires 

BATS Options Market Makers to be 

quoting at the NBB or NBO to be eligible 

to trade with an incoming Directed 

Order directed to it, in contrast to prior 

rules approved by the Commission, 

BATS’ proposed directed order program 

provides no participation guarantees 

that could negatively impact quote 

competition. By not providing such 

guarantees, BATS’s proposed directed 

order program provides incentives to 

BATS Options Market Makers as well as 

all other BATS Options Members to 

aggressively quote, both at the NBBO 

and at non-displayed prices better than 

the NBBO. 

In addition, the Commission has 

previously approved rules that permit a 

specialist or market maker to determine 

the firms from which it will accept 

directed or preferenced orders. The 

Commission has explicitly approved a 

process similar to that proposed by 

BATS in the equity markets in which 

only those members who have been 

permissioned by a market maker are 

eligible to submit directed orders to the 

market maker.12 And, the Commission 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Notices 18283 

13See, e.g., BOX Rule Section 18 ‘‘The Price 

Improvement Period’’ and ISE Rule 723 ‘‘Price 

Improvement Mechanism for Crossing 

Transactions’’ (both of which providing a 

mechanism for options members that want to 

internalize customer orders the ability to do so on 

the exchanges subject to a requirement that such 

orders first be exposed to all other options members 

through a brief price improvement auction). 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

has implicitly approved such processes 

in the options markets by allowing 

certain price improvement auctions to 

exist pursuant to pilot programs, which 

auctions provide the ability of an 

options member to submit a customer 

order along with a contra-side principal 

order from the options member into a 

brief price improvement auction in 

which all members have the ability to 

compete for the execution.13 BATS’ 

proposed rule changes are similar in 

nature to these price improvement 

auctions, except that under BATS’ 

proposal, competition for the execution 

with a Directed Order occurs in the 

context of BATS’ continuous, price/time 

priority auction, rather than during a 

separate, one-second price improvement 

auction. As such, concerns about 

customer orders potentially ‘‘missing the 

market’’ during that exposure period are 

not present. That said, however, BATS 

has proposed to the Commission price 

improvement data and other data 

deemed necessary to evaluate the 

impact of the proposal. Also, as 

previously mentioned, BATS’ proposal 

differs from existing price improvement 

auctions due to the fact that BATS 

Options Market Makers would have no 

participation guarantees. 

The Exchange notes market makers 

already retain the discretion to pay 

certain firms non-transparent payment 

for order flow amounts. The proposal 

similarly retains that existing discretion 

for market makers, but provides a 

mechanism for such payments, or at 

least a portion of such payments, to be 

provided in a transparent fashion to the 

Directed Order in the form of price 

improvement over the NBBO. 

(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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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, as modified by Amendment 

No.1, 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 rulecomments@sec.gov. Please include File 

Number SR–BATS–2011–009 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–BATS–2011–009. 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 

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–BATS– 

2011–009 and should be submitted on 

or before April 22, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–7688 Filed 3–31–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64130; File No. SR– 

NYSEAmex–2011–17] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Deleting Rule 346—NYSE 

Amex Equities and Adopting New Rule 

3270—NYSE Amex Equities To 

Correspond With Rule Changes Filed 

by the Financial Industry Regulatory 

Authority, Inc. 

March 28, 2011. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on March 14, 

2011, NYSE Amex LLC (the ‘‘SRO’’ or 

‘‘NYSE Amex’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by the SRO. 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 SRO proposes to delete Rule 

346—NYSE Amex Equities and adopt 

new Rule 3270—NYSE Amex Equities 

to correspond with rule changes filed by 

the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) and approved 

by the Securities and Exchange 

mstockstill on DSKH9S0YB1PROD with NOTICES