Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 18767 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The current FINRA rulebook consists of two sets 

of rules: (1) NASD Rules and (2) rules incorporated 

from NYSE (‘‘Incorporated NYSE Rules’’) (together 

referred to as the ‘‘Transitional Rulebook’’). The 

Incorporated NYSE Rules apply only to those 

members of FINRA that are also members of the 

NYSE (‘‘Dual Members’’). Dual members must also 

comply with NASD Rules. For more information 

about the rulebook consolidation process, see 

FINRA Information Notice, March 12, 2008 

(‘‘Rulebook Consolidation Process’’). 

4See Securities Exchange Act Release No. 59563 

(March 12, 2009), 74 FR 11792. 

5 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition and capital formation. See 

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

6 15 U.S.C. 78o–3(b)(6). 

7 15 U.S.C. 78s(b)(2). 

8 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9388 Filed 4–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59789; File No. SR–FINRA– 

2009–009] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change To Adopt 

FINRA Rule 1122 (Filing of Misleading 

Information as to Membership or 

Registration) in the Consolidated 

FINRA Rulebook 

April 20, 2009. 

On March 3, 2009, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association 

of Securities Dealers, Inc. (‘‘NASD’’)), 

filed with the Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’), 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to adopt NASD 

IM–1000–1 as FINRA Rule 1122 in the 

consolidated FINRA rulebook 

(‘‘Consolidated FINRA Rulebook’’) 3

without material change. The proposed 

rule change was published for comment 

in the Federal Register on March 19, 

2009.4 The Commission received no 

comment letters in response to the 

proposed rule change. This order 

approves the proposed rule change. 

NASD IM–1000–1 provides that the 

filing of membership or registration 

information as a Registered 

Representative with FINRA which is 

incomplete or inaccurate so as to be 

misleading, or which could in any way 

tend to mislead, or the failure to correct 

such filing after notice thereof, may be 

deemed conduct inconsistent with just 

and equitable principles of trade and 

may be subject to disciplinary action. 

The proposed rule change renumbers 

NASD IM–1000–1 as FINRA Rule 1122 

in the Consolidated FINRA Rulebook 

and clarifies its applicability to 

members and persons associated with 

members by specifying that ‘‘no member 

or person associated with a member’’ 

shall file incomplete or misleading 

membership or registration information. 

FINRA also eliminates the reference to 

the filing of registration information ‘‘as 

a Registered Representative’’ to clarify 

that the rule applies to the filing of 

registration information regarding any 

category of registration. In addition, 

FINRA deletes the reference that the 

prohibited conduct may be deemed 

inconsistent with just and equitable 

principles of trade and subject to 

disciplinary action as unnecessary and 

to better reflect the proposed adoption 

of the NASD IM as a stand-alone FINRA 

rule. 

After careful review, the Commission 

finds 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 association,5 and in 

particular, with Section 15A(b)(6) of the 

Act,6 which requires, among other 

things, that FINRA rules be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA’s adoption of 

NASD IM–1000–1 as FINRA Rule 1122 

in the Consolidated FINRA Rulebook 

clarifies its applicability and provides 

notice to members of behavior that 

violates just and equitable principles of 

trade. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–FINRA– 

2009–009) be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9386 Filed 4–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59782; File No. SR–BATS– 

2009–009] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

April 17, 2009. 

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 April 14, 

2009, BATS Exchange, Inc. (‘‘BATS’’ or 

the ‘‘Exchange’’) 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. BATS 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 use of the 

Exchange. While changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on April 15, 2009. 

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 

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18768 Federal Register / Vol. 74, No. 78 / Friday, April 24, 2009 / Notices 

5This fee was announced by NASDAQ to its 

members on April 13, 2009, and will become 

effective on April 15, 2009. See NASDAQ Equity 

Trader Alert #2009–23. 

6As defined in BATS Rule 1.5(s). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

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 April 15, 2009, in 

order to make modifications to certain 

of the Exchange’s non-standard routing 

charges. The Exchange proposes to 

charge a consistent, discounted 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 

will be $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). Specifically, BATS 

proposes to charge $0.0017 per share for 

BATS + NYSE Destination Specific 

Orders executed at NYSE, $0.0027 per 

share for BATS + NYSE ARCA 

Destination Specific Orders executed at 

NYSE Arca, and $0.0029 per share for 

BATS + NASDAQ Destination Specific 

Orders executed at NASDAQ, while 

such market centers currently charge 

removal rates of $0.0018 per share, 

$0.0028 per share, and $0.0030 per 

share,5 respectively. In conjunction with 

this proposal, the Exchange proposes to 

set forth each of these fees under a new, 

separate heading, in order to make clear 

the order types to which ‘‘One Under’’ 

pricing applies. The new ‘‘One Under’’ 

pricing does not apply to securities 

priced below $1.00 nor does it apply to 

odd lot orders routed to NYSE Arca; 

such order types will continue to be 

priced as set forth on the Exchange’s fee 

schedule. In addition, the Exchange will 

maintain the pricing currently charged 

by the Exchange for Destination Specific 

Orders sent to all other market centers 

that display Protected Quotations 6

(each a ‘‘Protected Market Center’’) 

other than the NYSE, NYSE Arca or 

NASDAQ. 

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.7

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,8 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 and that the 

changes it has proposed to provide 

discounted rates for routing to NYSE, 

NYSE Arca, and NASDAQ will benefit 

its Members. Finally, the Exchange 

believes that the proposed rates are 

equitable in that they apply uniformly 

to all Members. 

(B) Self-Regulatory Organization’s 

Statement of 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 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 9 and Rule 19b–4(f)(2) thereunder,10

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. 

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 proposal 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 

No. SR–BATS–2009–009 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 No. 

SR–BATS–2009–009. 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 changes 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 BATS. 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–BATS–2009–009 and should be 

submitted on or before May 15, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–9370 Filed 4–23–09; 8:45 am] 

BILLING CODE 8010–01–P 

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