51914 Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4A CBSX Trader is defined as an individual who 

or organization which has the right to trade on 

CBSX (See Rule 50.1). 

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–NSX–2009–05 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–NSX–2009–05. 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 inspection and copying 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–NSX–2009–05 and should 

be submitted on or before October 29, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24249 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60760; File No. SR–CBOE– 

2009–071] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Regarding the CBSX 

Obvious Error Rule 

October 1, 2009. 

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 

September 25, 2009, the Chicago Board 

Options Exchange, Incorporated 

(‘‘Exchange’’ or ‘‘CBOE’’) 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. CBOE has designated 

the proposed rule change as constituting 

a rule change under Rule 19b–4(f)(6) 

under the Act,3 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 modify the 

CBOE Stock Exchange (‘‘CBSX’’) 

obvious error rule. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/Legal), at the Exchange’s 

Office of the Secretary and at the 

Commission. 

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 those 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 amend 

Rule 52.4 in order to improve the CBSX 

rule regarding clearly erroneous 

executions. The proposed changes are 

part of a market-wide effort designed to 

provide transparency and finality with 

respect to clearly erroneous executions. 

This effort seeks to achieve consistent 

results for participants across U.S. 

equities exchanges while maintaining a 

fair and orderly market, protecting 

investors and protecting the public 

interest. The proposed changes are more 

fully discussed below. 

As proposed, the term ‘‘clearly 

erroneous’’ would be defined as when 

there is an obvious error in any term, 

such as price, number of shares or other 

unit of trading, or identification of the 

security. Further, a transaction made in 

clearly erroneous error and cancelled by 

both parties or determined by CBSX to 

be clearly erroneous will be removed 

from the Consolidated Tape. A trade 

will only be removed from the 

Consolidated Tape when the 

determination is deemed final and any 

applicable appeals have been exhausted. 

Under the proposed rule, a CBSX 

Trader 4 that receives an execution on 

an order that was submitted erroneously 

to CBSX for its own or customer account 

may request that CBSX review the 

transaction. One or more senior level 

officials of CBSX designated by the 

President (‘‘Official’’) shall review the 

transaction under dispute and 

determine whether it is clearly 

erroneous, with a view toward 

maintaining a fair and orderly market 

and the protection of investors and the 

public interest. Such request for review 

shall be made in writing via e-mail or 

other electronic means specified from 

time to time by CBSX in a circular 

distributed to CBSX Traders. Requests 

for review must be received within 

thirty (30) minutes of execution time 

and shall include information 

concerning the time of the 

transaction(s), security symbol(s), 

number of shares, price(s), side (bought 

or sold), and factual basis for believing 

that the trade is clearly erroneous. Upon 

receipt of a timely filed request that 

satisfies the numerical guidelines set 

forth in paragraph (c)(1) of the Rule, the 

counterparty to the trade shall be 

notified by CBSX as soon as practicable, 

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Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 51915 

but generally within 30 minutes. An 

Official may request additional 

supporting written information to aid in 

the resolution of the matter. If 

requested, each party to the transaction 

shall provide, within thirty (30) minutes 

of the request, any supporting written 

information. Either party to the disputed 

trade may request the supporting 

written information provided by the 

other party on the matter. 

A transaction executed on CBSX may 

be found to be clearly erroneous only if 

the price of the transaction to buy (sell) 

that is the subject of the complaint is 

greater than (less than) the Reference 

Price by an amount that equals or 

exceeds the Numerical Guidelines set 

forth in the Rule (see chart below). The 

execution time of the transaction under 

review determines whether the 

guideline threshold is regular trading 

hours or between 8:15 a.m. CT to 8:30 

a.m. CT (which occurs before regular 

trading hours). 

Reference price: Consolidated Last Sale 

Regular trading hours numerical guidelines (subject transaction’s 

% difference from the consolidated 

last sale) 

8:15 a.m. CT to 8:30 a.m. CT numerical guidelines (subject transaction’s % 

difference from the consolidated last 

sale) 

Greater than $0.00 and up to and including $25.00 ............... 10% ....................................................... 20%. 

Greater than $25.00 and up to and including $50.00 ............. 5% ......................................................... 10%. 

Greater than $50.00 ................................................................. 3% ......................................................... 6%. 

Multi-Stock Event-Filings involving five or more securities by 

the same CBSX Trader will be aggregated into a single filing.

10% ....................................................... 10%. 

Leveraged ETF/ETN securities ................................................ Regular Trading Hours Numerical 

Guidelines multiplied by the leverage 

multiplier (i.e. 2×).

Regular Trading Hours Numerical 

Guidelines multiplied by the leverage 

multiplier (i.e. 2×) 

Establishing Numerical Guidelines 

within the rule brings regulatory 

transparency and consistency in the 

application of the rules of the Exchange. 

The Numerical Guidelines represent the 

general consensus approach and were 

developed based on the collective 

experiences of a market-wide group. 

CBSX believes that the thresholds 

established are fair and appropriate and 

apply evenly to all participants. 

In Unusual Circumstances, which 

may include periods of extreme market 

volatility, sustained illiquidity, or 

widespread system issues, CBSX may, 

in its discretion and with a view toward 

maintaining a fair and orderly market 

and the protection of investors and the 

public interest, use a Reference Price 

other than the consolidated last sale. 

Other Reference Prices may include the 

consolidated inside price, the 

consolidated opening price, the 

consolidated prior close, or the 

consolidated last sale prior to a series of 

executions. It may also be necessary to 

use a higher Numerical Guideline if, 

after market participants have been 

alerted to the existence of erroneous 

activity, the price of the security returns 

toward its prior trading range but 

continues to trade beyond the price at 

which trades would normally be broken. 

CBSX also may use a different Reference 

Price and/or higher Numerical 

Guideline in events that involve other 

markets in an effort to coordinate a 

Reference Price and/or Numerical 

Guideline that is consistent across 

markets. In order to achieve consistent 

results across markets, when a ruling is 

made in conjunction with another 

market center it may be determined that 

the number of affected transactions is 

such that immediate finality is 

necessary to maintain a fair and orderly 

market and to protect investors and the 

public interest. 

In events that involve other markets, 

CBSX would have the ability to use a 

different reference price and/or 

numerical guidelines. In these 

instances, the reference price would be 

determined based on a consensus 

among the Exchanges where the 

transactions occurred. Furthermore, 

when a ruling is made across markets, 

CBSX may determine that the ruling is 

not eligible for appeal because 

immediate finality is necessary to 

maintain a fair and orderly market and 

to protect investors and the public 

interest. 

An Official may also consider 

additional factors to determine whether 

an execution is clearly erroneous, 

including but not limited to, system 

malfunctions or disruptions, volume 

and volatility for the security, derivative 

securities products that correspond to 

greater than 100% in the direction of a 

tracking index, news released for the 

security, whether trading in the security 

was recently halted/resumed, whether 

the security is an IPO, whether the 

security was subject to a stock-split, 

reorganization, or other corporate 

action, overall market conditions, 

validity of the consolidated tape’s trades 

and quotes, consideration of primary 

market indications, and executions 

inconsistent with the trading pattern in 

the stock. Each additional factor shall be 

considered with a view toward 

maintaining a fair and orderly market 

and the protection of investors and the 

public interest. 

CBSX may expand the Numerical 

Guidelines applicable to transactions 

occurring between 8:30 a.m. CT and 9 

a.m. CT based on the disseminated 

value of the S & P 500 Futures at 8:15 

a.m. CT. When the S & P 500 Futures 

are up or down from 3% to up to but 

not including 5% at 8:15 a.m. the 

Numerical Guidelines are doubled for 

executions occurring between 8:30 a.m. 

and 9 a.m. Also, when the S & P 500 

Futures are up or down 5% or greater 

at 8:15 a.m. the Numerical Guidelines 

are tripled for executions occurring 

between 8:30 a.m. and 9 a.m. 

In the case of an Outlier Transaction, 

an Official may at his or her sole 

discretion, and on a case-by-case basis, 

consider requests received after 30 

minutes, but not longer than sixty 

minutes after the transaction in 

question, depending on the facts and 

circumstances surrounding such 

request. An ‘‘Outlier Transaction’’ is a 

transaction where: (i) The execution 

price of the security is greater than three 

times the current Numerical Guidelines 

set forth in paragraph (c)(1) of the Rule, 

or (ii) the execution price of the security 

in question is not within the Outlier 

Transaction parameters set forth in 

paragraph (d)(1)(A) of the Rule but 

breaches the 52-week high or 52-week 

low, CBSX may consider Additional 

Factors (as outlined in paragraph (c)(3) 

of the Rule), in determining if the 

transaction qualifies for further review 

or if the Corporation shall decline to act. 

Unless both parties to the disputed 

transaction agree to withdraw the initial 

request for review, the transaction under 

dispute shall be reviewed, and a 

determination shall be rendered by the 

Official. If the Official determines that 

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51916 Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 

5 In the event of any disruption or a malfunction 

in the use or operation of any electronic 

communications and trading facilities of CBSX, or 

extraordinary market conditions or other 

circumstances in which the nullification of 

transactions may be necessary for the maintenance 

of a fair and orderly market or the protection of 

investors and the public interest exist, the Official, 

on his or her own motion, may review such 

transactions and declare such transactions arising 

out of the use or operation of such facilities during 

such period null and void. In such events, the 

Official will rely on the provisions of paragraph 

(c)(1)–(3) of the Rule, but in extraordinary 

circumstances may also use a lower Numerical 

Guideline if necessary to maintain a fair and orderly 

market, protect investors and the public interest. 

Absent extraordinary circumstances, any such 

action of the Official pursuant to paragraph (f) shall 

be taken within thirty (30) minutes of detection of 

the erroneous transaction. When extraordinary 

circumstances exist, any such action of the Official 

must be taken by no later than the start of trading 

on the day following the date of execution(s) under 

review. Each CBSX Trader involved in the 

transaction shall be notified as soon as practicable, 

and the CBSX Trader aggrieved by the action may 

appeal such action. 

6 If the CEE Panel votes to uphold the decision 

made pursuant to paragraph (e)(1) of this Rule, 

CBSX will assess a $500.00 fee against the CBSX 

Trader(s) who initiated the request for appeal. 

7See Exchange Act Release No. 34–60706 

(approving SR–NYSEArca–2009–36). 

8 15 U.S.C. 78s(b)(1). 

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

10 15 U.S.C. 78f(b)(5). 

the transaction is not clearly erroneous, 

the Official shall decline to take any 

action in connection with the completed 

trade. In the event that the Official 

determines that the transaction in 

dispute is clearly erroneous, the Official 

shall declare the transaction null and 

void. A determination shall be made 

generally within 30 minutes of receipt 

of the complaint, but in no case later 

than the start of trading on the following 

trading day. The parties shall be 

promptly notified of the determination. 

Under the proposed rule, the Official 

will only have the authority to break the 

trades or rule to let the trades stand. 

This attempts to remove subjectivity 

that is necessitated by an adjustment. 

If a CBSX Trader affected by a 

determination made under this Rule so 

requests within the time permitted 

below, a Clearly Erroneous Execution 

Panel (‘‘CEE Panel’’) will review 

decisions made by the Official; provided 

however that the CEE Panel will not 

review decisions made by an official 

under paragraph (f) of the Rule 

(regarding system disruptions and 

malfunctions) if such Official also 

determines under paragraph (f) that the 

number of the affected transactions is 

such that immediate finality is 

necessary to maintain a fair and orderly 

market and to protect investors and the 

public interest.5

The CEE Panel will consist of the 

Exchange’s Chief Regulatory Officer 

(‘‘CRO’’), or a designee of the CRO, and 

representatives from two (2) CBSX 

Traders. Further, CBSX shall designate 

at least ten (10) CBSX Trader 

representatives to be called upon to 

serve on the CEE Panel as needed. In no 

case shall a CEE Panel include a person 

affiliated with a party to the trade in 

question. To the extent reasonably 

possible, the Exchange shall call upon 

the designated representatives to 

participate on a CEE Panel on an equally 

frequent basis. 

A request for review on appeal must 

be made via e-mail within thirty (30) 

minutes after the party making the 

appeal is given notification of the initial 

determination being appealed. The CEE 

Panel shall review the facts and render 

a decision as soon as practicable, but 

generally on the same trading day as the 

execution(s) under review. On requests 

for appeal received between 2 CT and 

the close of trading, a decision will be 

rendered as soon as practicable, but in 

no case later than the trading day 

following the date of the execution 

under review. The CEE Panel may 

overturn or modify an action taken by 

the Official under the Rule. All 

determinations by the CEE Panel shall 

constitute final action by CBSX on the 

matter at issue.6

CBSX proposes to add a section to the 

Rule that will grant Officials the ability 

to act on their own motion to review 

potentially erroneous executions. The 

proposed rule would allow an Official 

to review executions and rely on the 

Numerical Guidelines, under any 

circumstance. In extraordinary 

circumstances an Official may apply a 

lower Numerical Guideline if it is 

determined that such action is necessary 

to maintain a fair and orderly market or 

protect investors and the public interest. 

In some instances the Exchange may 

detect a single execution that breaches 

the Numerical Guidelines but is not the 

subject of a ruling request. This 

provision gives the Exchange the ability 

to review such executions. Additionally, 

in practice, clearly erroneous executions 

commonly involve multiple parties and 

multiple executions. In such instances, 

all affected parties may not request a 

ruling. The Exchange proposes this 

provision to permit an Official to rule 

on a group of transactions related to the 

same occurrence or event as a whole, 

without a formal request for a ruling 

from every affected party. 

The proposed rule also modifies 

CBSX’s policy on trade nullification and 

for UTP securities that are subject to 

initial public offerings. Under the 

proposed rule, Officials must either 

declare an opening transaction null and 

void or decline to take action, but can 

no longer be adjusted. Furthermore, the 

proposed rule requires that, in 

extraordinary circumstances, the 

reviewing Official must take action in a 

timely fashion. 

The proposed rule language is based 

on language adopted by NYSE Arca in 

SR–NYSEArca–2009–36.7 CBSX 

anticipates this new obvious error 

policy to become effective on October 5, 

2009. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 8 and the rules and regulations 

thereunder and, in particular, the 

requirements of Section 6(b) of the Act.9

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 10 requirements that 

the rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to promote the maintenance of 

fair and orderly markets, and to protect 

investors and the public interest. The 

proposed rule change provides 

transparency and finality for 

participants and creates consistent 

results across U.S. equities exchanges 

with respect to clearly erroneous 

executions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange neither solicited nor 

received comments on the proposal. 

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 

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Federal Register / Vol. 74, No. 194 / Thursday, October 8, 2009 / Notices 51917 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. The Exchange has satisfied this 

requirement. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6). 

15For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposal’s impact on efficiency, competition, and 

capital formation. 15 U.S.C. 78c(f). 

16See Securities Exchange Act Release No. 60706 

(September 22, 2009) 74 FR 49416 (September 28, 

2009) (NYSEArca–2009–36). 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 14

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange requests 

that the Commission waive the 30-day 

operative delay so that it may 

implement the new rule on October 5, 

2009, the same date as the other equities 

exchanges. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest 

because it will allow the Exchange to 

begin applying the new rule on the same 

date as the other equities exchanges.15

Application of the new rule on this date 

should help foster transparency and 

consistency among those exchanges that 

adopt clearly erroneous execution rules 

substantially similar to those previously 

approved by the Commission.16 For 

these reasons, the Commission 

designates that the proposed rule 

change become operative on October 5, 

2009. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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 rulecomments@sec.gov. Please include File 

Number SR–CBOE–2009–071 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–CBOE–2009–071. 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 inspection and copying 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–CBOE–2009–071 and 

should be submitted on or before 

October 29, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–24248 Filed 10–7–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60759; File No. SR–BATS– 

2009–030] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BATS Rule 

11.17, Entitled ‘‘Clearly Erroneous 

Executions’’ 

October 1, 2009. 

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 

September 28, 2009, 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. BATS 

has designated the proposed rule change 

as constituting a rule change under Rule 

19b–4(f)(6) under the Act,3 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 is proposing to amend 

BATS Rule 11.17, entitled ‘‘Clearly 

Erroneous Executions,’’ to modify the 

Exchange’s rule regarding clearly 

erroneous executions. 

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. 

mstockstill on DSKH9S0YB1PROD with NOTICES