28670 Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices 

11 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). 

5Any Exchange Member that has an MPID issued 

by FINRA is identified in the Exchange’s internal 

systems by that MPID. Each Exchange Member that 

does not already have an MPID and each Sponsored 

Participant is issued an identifier that is specific to 

the Exchange and allows the Exchange to determine 

the User for each order and trade. 

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–Phlx–2010–71 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–Phlx-2010–71. 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 the 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–Phlx2010–71 and should be submitted on or 

before June 11, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12227 Filed 5–20–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62102; File No. SR–BATS– 

2010–011] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend BATS Rule 

11.9, Entitled ‘‘Orders and Modifiers’’ 

May 13, 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 May 4, 

2010, BATS Exchange, Inc. (the 

‘‘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. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

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

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 make a 

modification to the existing technology 

that it provides to a User that wishes to 

avoid trading against orders from that 

same User (currently referred to as 

‘‘Member Match Trade Prevention’’ or 

‘‘MMTP’’). 

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 make a 

minor change to its Member Match 

Trade Prevention, or MMTP, 

functionality, described in BATS Rules 

11.9(f) and 21.1(g) and to rename the 

functionality as Match Trade Prevention 

(‘‘MTP’’). 

MMTP modifiers are designed to 

prevent two orders with the same 

Unique Identifier (as defined below) 

from executing against each other. The 

Exchange currently offers four MMTP 

modifiers that can be set at the market 

participant identifier (‘‘MPID’’), the 

Exchange Member identifier or the 

Exchange Sponsored Participant 

identifier level (any such identifier, a 

‘‘Unique Identifier’’).5 BATS is 

proposing a change to the MMTP 

Decrement and Cancel identifier 

(‘‘MDC’’); none of the other MMTP 

identifiers are affected by this proposal, 

other than to change the references 

throughout the rule text to MTP. 

Under the existing rules, an incoming 

order marked with the MDC modifier 

will not execute against opposite side 

resting interest marked with any MMTP 

modifier originating from the same 

Unique Identifier. If both orders are 

equivalent in size, both orders will be 

cancelled back to the originating User. 

If the orders are not equivalent in size, 

the equivalent size will be cancelled 

back to the originating User and the 

larger order will be decremented by the 

size of the smaller order, with the 

balance remaining on the BATS Book; 

provided, however, that if the resting 

order is marked with any MMTP 

modifier other than MDC, and the 

incoming order is smaller in size than 

the resting order, then both orders will 

be cancelled back to the originating User 

(the ‘‘MDC Exception’’). Thus, as shown 

in the example below, rather than 

decrementing either order, pursuant to 

the MDC Exception both orders are 

cancelled in their entirety when the 

resting order contains an MMTP 

modifier other than MDC and is larger 

than the incoming order. 

Current MDC Exception—Example: 

An order to buy 500 shares @ $22.00 is 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices 28671 

6See NYSE Arca Rule 7.31(qq)(3). 

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

8 15 U.S.C. 78f(b)(5). 

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

10 17 CFR 240.19b–4(f)(6). 

11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of 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. 

12 Id. 

13See supra note 6. 

14For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

Continued 

marked with any MMTP modifier other 

than MDC and becomes a resting order 

in the BATS Book. Subsequently, an 

order to sell 400 shares @ $22.00 is 

entered with the same Unique Identifier 

and marked with the MDC modifier. 

Current MDC Exception—Result: The 

resting buy order for 500 shares at 

$22.00 marked with a MMTP modifier 

other than MDC is cancelled back to the 

originating User. The incoming sell 

order for 400 shares @ $22.00 marked 

with the MDC modifier is cancelled 

back to the originating User. 

The Exchange proposes to allow Users 

to opt-out of the default behavior of the 

MDC Exception to allow an incoming 

MDC order to result in a decremented 

order even when it is smaller than the 

resting order and the resting order 

contains an MMTP modifier other than 

MDC. 

Proposed Opt-Out of MDC—Example: 

An order to buy 500 shares @ $22.00 is 

marked with any MMTP modifier and 

becomes a resting order in the BATS 

Book. Subsequently, an order to sell 400 

shares @ $22.00 is entered with the 

same Unique Identifier and marked with 

the MDC modifier. 

Proposed Opt-Out of MDC—Result: 

400 of the 500 shares on the resting buy 

order at $22.00 marked with any MMTP 

modifier are cancelled back to the 

originating User. The outstanding 100 

shares remain on the BATS Book. The 

incoming sell order for 400 shares @ 

$22.00 marked with the MDC modifier 

is cancelled back to the originating User. 

Although the Exchange intentionally 

created the MDC Exception based on 

conversations with its Users regarding 

the best way to implement the MDC 

modifier, other Users have requested 

that the Exchange allow them to have 

the incoming order control the result in 

all situations, and thus, have requested 

to be able to opt-out of the MDC 

Exception. The Exchange notes that 

NYSE Arca Equities (‘‘NYSE Arca’’) has 

implemented its version of match trade 

prevention without the MDC Exception, 

and thus, allowing Users to opt-out of 

the exception is consistent with NYSE 

Arca’s STP Decrement and Cancel 

option.6 The Exchange will allow a User 

to opt-out of the MDC Exception by 

changing the settings of its order entry 

ports. The Exchange may also permit 

Users to opt-out of the MDC Exception 

on an order-by-order basis through use 

of a specific tag attached to each order. 

Additional Discussion 

In addition to the modification to the 

MDC modifier described above, the 

Exchange proposes to change the 

references throughout its rules from 

‘‘Member Match Trade Prevention’’ to 

‘‘Match Trade Prevention’’ and from 

‘‘MMTP’’ to ‘‘MTP’’. 

The Exchange believes that its Match 

Trade Prevention functionality allows 

certain firms to better internalize their 

agency order flow, which in turn may 

decrease costs to customers of such 

firms. The Exchange notes that MTP 

modifiers do not alleviate, or otherwise 

exempt, broker-dealers from their best 

execution obligations. As such, brokerdealers using MTP modifiers are 

obligated to internally cross agency 

orders at the same price, or a better 

price than they would have received 

had the orders been executed on the 

Exchange. Additionally, MTP modifiers 

assist market participants in complying 

with certain rules and regulations of the 

Employee Retirement Income Security 

Act (‘‘ERISA’’) that preclude and/or limit 

managing broker-dealers of such 

accounts from trading as principal with 

orders generated for those accounts. 

Finally, the Exchange notes that offering 

the MTP modifiers may streamline 

certain regulatory functions by reducing 

false positive results that may occur on 

Exchange generated wash trading 

surveillance reports when orders are 

executed under the same Unique 

Identifier. For these reasons, the 

Exchange believes the MTP modifiers 

offer users enhanced order processing 

functionality that may prevent 

potentially undesirable executions 

without negatively impacting brokerdealer best execution obligations. 

2. Statutory Basis 

The rule change proposed in this 

submission 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.7

Specifically, the proposed change is 

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

Act,8 because it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and to remove impediments to, and 

perfect the mechanism of, a free and 

open market and a national market 

system. Specifically, Match Trade 

Prevention functionality allows firms to 

better manage order flow and prevent 

undesirable executions against 

themselves, and the proposed change 

described herein enhances the choices 

available to such firms in how they do 

so. 

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 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.11 However, Rule 19b– 

4(f)(6)(iii)12 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the Exchange may 

immediately offer Exchange Users 

another choice with respect to MTP 

modifiers. The Commission notes that 

the proposal is consistent with the rules 

of another national securities 

exchange.13 Based on the foregoing, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and hereby designates 

the proposal operative upon filing.14


emcdonald on DSK2BSOYB1PROD with NOTICES
28672 Federal Register / Vol. 75, No. 98 / Friday, May 21, 2010 / Notices 

proposed rule’s impact on efficiency, competition, 

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

15The text of the proposed rule change is 

available on the Commission’s Web site at http:// 

www.sec.gov/rules/sro.shtml. 16 17 CFR 200.30–3(a)(12). 

At any time within 60 days of the 

filing of such 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 

No. SR–BATS–2010–011 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–2010–011. 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,15 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 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–2010–011 and should be 

submitted on or before June 11, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12226 Filed 5–20–10; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 7020] 

Bureau of International Security and 

Nonproliferation; Determination Under 

the Foreign Assistance Act and the 

Department of State, Foreign 

Operations, and Related Programs 

Appropriations Acts 

AGENCY: Department of State. 

ACTION: Notice. 

SUMMARY: A decision has been made to 

remove the restrictions imposed on the 

Tula Instrument Design Bureau (KBP) 

and rescind Federal Register Notice 

3039, from April 29, 1999. 

DATES: Effective Date: May 21, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Brian Bachman, Office of Conventional 

Arms Threat Reduction, Bureau of 

International Security and 

Nonproliferation, Department of State 

(202–647–3937). 

SUPPLEMENTARY INFORMATION: A decision 

was made on May 12, 2010, that it is in 

the foreign policy or national security 

interests of the United States to remove 

the restrictions imposed on the Tula 

Instrument Design Bureau (KBP) on 

April 29, 1999 under Federal Register 

notice 3039. 

Dated: May 17, 2010. 

C.S. Eliot Kang, 

Acting Assistant Secretary of State for 

International Security and Nonproliferation, 

Department of State. 

[FR Doc. 2010–12322 Filed 5–20–10; 8:45 am] 

BILLING CODE 4710–27–P 

DEPARTMENT OF STATE 

[Public Notice: 7022] 

Bureau of International Security and 

Nonproliferation; Lifting of 

Nonproliferation Measures Against 

Two Russian Entities 

AGENCY: Department of State. 

ACTION: Notice. 

SUMMARY: A determination has been 

made, pursuant to Section 6 of 

Executive Order 12938 of November 14, 

1994, as amended, to remove 

nonproliferation measures on two 

Russian entities. 

DATES: Effective Date: May 21, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Pamela K. Durham, Office of Missile 

Threat Reduction, Bureau of 

International Security and 

Nonproliferation, Department of State 

(202–647–4930). 

SUPPLEMENTARY INFORMATION: Pursuant 

to the authorities vested in the President 

by the Constitution and the laws of the 

United States of America, including the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.) 

(‘‘IEEPA’’), the National Emergencies Act 

(50 U.S.C. 1601 et seq.), the Arms 

Export Control Act (22 U.S.C. 2751 et 

seq.), and section 301 of title 3, United 

States Code, and Section 6 of Executive 

Order 12938 of November 14, 1994, as 

amended, a determination was made on 

May 12, 2010, that it is in the foreign 

policy or national security interests of 

the United States to remove the 

restrictions imposed pursuant to 

Sections 4(b), 4(c), and 4(d) of the 

Executive Order on the following 

Russian entities, their sub-units and 

successors: 

1. D. Mendeleyev University of 

Chemical Technology of Russia 

2. Moscow Aviation Institute 

These restrictions were imposed on 

January 8, 1999 (see 64 FR 2935). 

Dated: May 17, 2010. 

C.S. Eliot Kang, 

Acting Assistant Secretary of State for 

International Security and Nonproliferation, 

Department of State. 

[FR Doc. 2010–12313 Filed 5–20–10; 8:45 am] 

BILLING CODE 4710–27–P 

DEPARTMENT OF STATE 

[Public Notice 7019] 

U.S. National Commission for UNESCO 

Notice of Teleconference Meeting 

The U.S. National Commission for 

UNESCO will hold a conference call on 


emcdonald on DSK2BSOYB1PROD with NOTICES