55838 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

15 15 U.S.C. 78k-1(a)(1). 

16 15 U.S.C. 78l(f). 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(6). 

19 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). 

5A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest; (ii) Section 11A(a)(1) of 

the Act,15 in that it seeks to ensure the 

economically efficient execution of 

securities transactions and fair 

competition among brokers and dealers 

and among exchange markets; and (iii) 

Section 12(f) of the Act,16 which 

governs the trading of securities 

pursuant to UTP consistent with the 

maintenance of fair and orderly markets, 

the protection of investors and the 

public interest, and the impact of 

extending the existing markets for such 

securities. Under the UTP Pilot Program 

Nasdaq Securities trade on the Exchange 

pursuant to rules governing the trading 

of Exchange-Listed securities that 

previously have been approved by the 

Commission. NYSE Amex made certain 

minor modifications to the operation of 

these rules, and added certain new 

rules, to accommodate the trading of 

Nasdaq Securities on a UTP basis; the 

Commission also approved all of these 

modifications and additions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 17 and Rule 

19b–4(f)(6) thereunder.18 Because the 

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 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

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–NYSEAmex–2010–89 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–NYSEAmex–2010–89. 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 website (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 website viewing and 

printing in the Commission’s Public 

Reference Room, 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–NYSEAmex–2010–89 and 

should be submitted on or before 

October 5, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22859 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62858; File No. SR–BATS– 

2010–023] 

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. 

September 7, 2010. 

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 August 

30, 2010, BATS Exchange, Inc. (‘‘BATS’’ 

or ‘‘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 Members 5 of 

the Exchange pursuant to BATS Rules 

15.1(a) and (c). While changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on September 1, 2010. 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 55839 

6See Securities Exchange Act Release No. 62404 

(June 30, 2010), 75 FR 39303 (July 8, 2010) (SR– 

BATS–2010–017). 

7See Rule 11.13(a)(3). 

8 15 U.S.C. 78f. 

9 15 U.S.C. 78f(b)(4). 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify the 

‘‘equities pricing’’ section of its fee 

schedule to: (i) adopt pricing for certain 

new routing strategies that the Exchange 

recently adopted; (ii) modify its pricing 

for Destination Specific Orders executed 

at NYSE Arca; (iii) eliminate a currently 

dormant market data product from its 

fee schedule; and (iv) change the name 

of one of its routing strategies. In 

addition, the Exchange proposes to 

modify fees applicable to options 

trading by eliminating certain clearing 

fees that it currently passes on to its 

Members. 

(i) Adoption of Fees for New Parallel 

Routing Strategies 

The Exchange recently adopted rules 

permitting it to offer certain new routing 

strategies, and plans on offering such 

routing strategies in the near future.6

Accordingly, the Exchange proposes to 

adopt fees applicable to such routing 

strategies. As proposed, the Exchange 

will offer both Parallel D and Parallel 2D 

routing at the same rate as it offers its 

CYCLE and RECYCLE routing 

strategies.7 Specifically, the Exchange 

proposes to charge $0.0028 per share for 

executions that occur at other trading 

venues as a result of either Parallel D or 

Parallel 2D routing. The Exchange 

proposes to offer its Parallel T routing 

strategy with a charge of $0.0033 per 

share for executions that occur at other 

trading venues as a result of such 

routing. To be consistent with these 

proposed fees and the current fee 

structure for CYCLE and RECYCLE 

routed executions, the Exchange 

proposes to charge 0.28% of the total 

dollar value of the execution for any 

security priced under $1.00 per share 

that is routed away from the Exchange 

through Parallel D or Parallel 2D. 

Similarly, and based on the charge of 

$0.0033 per share for Parallel T routing, 

the Exchange proposes to charge 0.33% 

of the total dollar value of the execution 

for any security priced under $1.00 per 

share that is routed away from the 

Exchange through Parallel T. 

(ii) NYSE Arca Destination Specific 

Orders 

The Exchange proposes to modify its 

fee schedule applicable to use of the 

Exchange in order to amend the fees for 

its BATS + NYSE Arca destination 

specific routing option to continue to 

offer a ‘‘one under’’ pricing model. The 

Exchange has previously provided a 

discounted price fee for Destination 

Specific Orders routed to certain of the 

largest market centers measured by 

volume (NYSE, NYSE Arca and 

NASDAQ), which, in each instance has 

been $0.0001 less per share for orders 

routed to such market centers by the 

Exchange than such market centers 

currently charge for removing liquidity 

(referred to by the Exchange as ‘‘One 

Under’’ pricing). Based on changes in 

pricing at NYSE Arca, BATS is 

proposing a change to its price for BATS 

+ NYSE Arca Destination Specific 

Orders to align its fees so they are 

$0.0001 less per share for orders routed 

to NYSE Arca. Specifically, the 

Exchange proposes to increase the fee 

charged for BATS + NYSE Arca 

Destination Specific Orders executed at 

NYSE Arca in Tape A and C securities 

from $0.0028 to $0.0029 per share. 

(iii) Deletion of Data Product 

In order to avoid confusion, the 

Exchange proposes to delete a reference 

on its fee schedule to a specific data 

product that it is not currently offering. 

Earlier this year, the Exchange proposed 

and received approval to offer certain 

market data products for a fee for the 

first time. Market Insight was one such 

product proposed and approved to be 

offered by the Exchange. However, the 

Exchange has decided not to offer this 

product at this time, and thus, proposes 

deletion of reference to the product from 

its fee schedule to avoid confusion. If 

the Exchange does decide to offer 

Market Insight as approved, it will 

provide notice to its Members and will 

file a rule proposal to reinstate reference 

to Market Insight on its fee schedule. 

(iv) Name Change of Routing Strategy 

The Exchange has decided to re-brand 

one of its routing strategies, currently 

referred to as ‘‘DART,’’ as the ‘‘Dark 

Routing Technique’’ or ‘‘DRT’’. 

Accordingly, the Exchange proposes 

modification of the ‘‘DART’’ acronym 

throughout the fee schedule to ‘‘DRT’’. 

(v) Options Clearing Charges 

The Exchange currently charges $0.05 

per contract for its standard options 

routing service and $0.10 per contract 

for Directed ISOs routed to away 

markets, and, in addition, passes 

through all destination exchange fees for 

executions at away markets. Effective 

June 1, 2010, the Exchange began 

passing through to Options Members, in 

addition to destination exchange fees, 

the actual clearing fees billed to the 

Exchange for the execution of orders 

routed from the Exchange. The 

Exchange proposes to eliminate the 

clearing fee pass through charge, both to 

simplify pricing of its routing services 

and to encourage Options Members to 

utilize the Exchange’s routing services. 

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.8

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,9 in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and other 

persons using any facility or system 

which the Exchange operates or 

controls. The Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. The 

Exchange believes that its fees and 

credits are competitive with those 

charged by other venues. Finally, the 

Exchange believes that the proposed 

rates are equitable in that they apply 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 


jlentini on DSKJ8SOYB1PROD with NOTICES
55840 Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62585 

(July 28, 2010), 75 FR 47045 (‘‘Notice’’). 

4The Trust is a Delaware statutory trust that is 

registered under the Investment Company Act of 

1940 (15 U.S.C. 80a) (‘‘1940 Act’’). See Registration 

Statement on Amendment No. 15 to Form N–1A for 

the Trust filed with the Securities and Exchange 

Commission on March 10, 2010 (File Nos. 333– 

155395 and 811–22250) (the ‘‘Registration 

Statement’’). 

5The Exchange represents that the Adviser, as the 

investment adviser of the Fund, and its related 

personnel, are subject to Investment Advisers Act 

Rule 204A–1. 

6The Fund has received an order granting certain 

exemptive relief to the Trust under the Investment 

Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 

Act’’). In compliance with Commentary .04 to NYSE 

Arca Equities Rule 8.600, which applies to Managed 

Fund Shares, the Trust’s application for exemptive 

relief under the 1940 Act states that the Fund will 

comply with the federal securities laws in accepting 

securities for deposits and satisfying redemptions 

with redemption securities, including that the 

securities accepted for deposits and the securities 

used to satisfy redemption requests are sold in 

transactions that would be exempt from registration 

under the Securities Act of 1933 (15 U.S.C. 77a). 

See email from Tim Malinowski, Senior Director, 

Global Index and Exchange Traded Funds, 

Exchange, to Ronesha Butler and Kristie Diemer, 

Special Counsels, Division, Commission, dated 

September 2, 2010, clarifying applicability of 

Commentary .04. 

7Commentary .06 to Rule 8.600 provides that, if 

the investment adviser to the Investment Company 

issuing Managed Fund Shares is affiliated with a 

broker-dealer, such investment adviser shall erect a 

‘‘fire wall’’ between the investment adviser and the 

broker-dealer with respect to access to information 

concerning the composition and/or changes to such 

Investment Company portfolio. In addition, 

Commentary .06 further requires that personnel 

who make decisions on the open-end fund’s 

portfolio composition must be subject to procedures 

designed to prevent the use and dissemination of 

material nonpublic information regarding the openend fund’s portfolio. The Adviser is affiliated with 

a broker-dealer, Allianz Global Investors 

Distributors LLC, and has implemented a fire wall 

with respect to such broker-dealer regarding access 

to information concerning the composition and/or 

changes to a portfolio. 

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 10 and Rule 19b–4(f)(2) 

thereunder,11 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 summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

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–2010–023 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–2010–023. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro/shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filing 

will also be available for inspection and 

copying at the principal office of the 

Exchange. All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File No. SR–BATS– 

2010–023 and should be submitted on 

or before October 5, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–22836 Filed 9–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62856; File No. SR– 

NYSEArca–2010–68] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

a Proposed Rule Change Relating to 

Listing and Trading of Shares of the 

PIMCO Build America Bond Strategy 

Fund 

September 7, 2010. 

I. Introduction 

On July 14, 2010, NYSE Arca, Inc. 

(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), 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 list and trade shares (‘‘Shares’’) 

of the PIMCO Build America Bond 

Strategy Fund (the ‘‘Fund’’) of the 

PIMCO ETF Trust (the ‘‘Trust’’) under 

NYSE Arca Equities Rule 8.600 

(Managed Fund Shares). The proposed 

rule change was published in the 

Federal Register on August 4, 2010.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to list and 

trade the Shares pursuant to NYSE Arca 

Equities Rule 8.600, which governs the 

listing and trading of Managed Fund 

Shares. The Shares will be offered by 

the Trust.4 Pacific Investment 

Management Company LLC (‘‘PIMCO’’) 

is the investment adviser (‘‘Adviser’’) for 

the Fund.5 State Street Bank & Trust Co. 

is the custodian and transfer agent for 

the Fund. The Trust’s Distributor is 

Allianz Global Investors Distributors 

LLC (the ‘‘Distributor’’), an indirect 

subsidiary of Allianz Global Investors of 

America L.P. (‘‘AGI’’), PIMCO’s parent 

company.6 The Distributor is a 

registered broker-dealer.7

The Fund seeks to achieve its 

investment objective by investing under 


jlentini on DSKJ8SOYB1PROD with NOTICES