66170 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Member is any registered broker or dealer that 

has been admitted to membership in the Exchange. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.14 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. If the Commission 

takes such action, the Commission shall 

institute proceedings to determine 

whether the proposed rule should be 

approved or 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 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-2010–143 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-2010–143. 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. 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–Phlx2010–143 and should be submitted on 

or before November 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27140 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63146; File No. SR–BATS– 

2010–030] 

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. 

October 21, 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 October 

14, 2010, BATS Exchange, Inc. (‘‘BATS’’ 

or the ‘‘Exchange’’) 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 

prepared by the Exchange. 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 Members3 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 October 15, 2010. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify the 

‘‘Equities Pricing’’ section of its fee 

schedule to adopt pricing for two new 

order routing strategies, named TRIM 

and SLIM, and for a Destination Specific 

Order sent to the Exchange’s affiliate, 

BATS Y-Exchange, Inc. The Exchange 

also proposes to modify the ‘‘Options 

Pricing’’ section of its fee schedule to 

adopt pricing for Destination Specific 

orders routed to the new C2 Options 

Exchange. Finally, the Exchange 

proposes certain non-substantive 

changes related to the appearance of the 

fee schedule. 

(i) Adoption of TRIM Pricing 

The Exchange proposes to adopt 

pricing for its new TRIM order routing 

strategy, which strategy is focused on 

seeking execution of orders while 

minimizing execution costs by routing 

only to certain low cost execution 

venues on the Exchange’s System 

routing table. The Exchange proposes to 

rebate Members $0.0003 per share for 

TRIM orders routed to and executed by 

its affiliated exchange, BATS YExchange, Inc. (‘‘BYX’’), which is the 

same rebate to be offered by BYX to 

market participants that route directly to 

and execute at BYX. For executions 

through TRIM routing that occur at a 

dark liquidity venue (identified by the 

Exchange as a ‘‘DRT’’ venue) or the 

NYSE, the Exchange proposes to charge 

$0.0020 per share. Finally, to the extent 

an order routed through TRIM executes 

at a low-priced venue other than BYX, 

a DRT venue or NYSE, the Exchange 

proposes neither to charge the Member 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66171 

4As defined in BATS Rule 11.9(c)(12). 

5As defined in BATS Rule 21.1(d)(7). 

6The current form of the Exchange’s Destination 

Specific routing fees were recently adopted. See 

Securities Exchange Act Release No. 63085 (October 

8, 2010) (SR–BATS–2010–026). 

7As defined on the fee schedule, Make/Take 

pricing refers to executions at the identified 

Exchange under which ‘‘Post Liquidity’’ or ‘‘Maker’’ 

rebates (‘‘Make’’) are credited by that exchange and 

‘‘Take Liquidity’’ or ‘‘Taker’’ fees (‘‘Take’’) are 

charged by that Exchange. 

8 15 U.S.C. 78f. 

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

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

11 17 CFR 240.19b–4(f)(2). 

any fee nor to pay any rebate for such 

execution. 

(ii) Adoption of SLIM Pricing 

The Exchange proposes to adopt 

pricing for its new SLIM order routing 

strategy, which, similar to TRIM, is 

focused on seeking execution of orders 

while minimizing execution costs by 

routing to certain low cost execution 

venues on the Exchange’s System 

routing table. The primary distinction 

between TRIM and SLIM is that SLIM 

will route first to low cost execution 

venues but will ultimately route to all 

venues on the Exchange’s System 

routing table, whereas TRIM only routes 

to low cost execution venues. As with 

TRIM, the Exchange proposes to rebate 

Members $0.0003 per share for SLIM 

orders routed to and executed by its 

affiliated exchange, BYX. For executions 

through SLIM routing that occur at the 

NYSE, the Exchange proposes to charge 

$0.0020 per share. Finally, to the extent 

an order routed through SLIM executes 

at any other venue, including any DRT 

venue, the Exchange proposes to charge 

$0.0026 per share. 

(iii) Destination Specific Equities 

Routing to BYX 

The Exchange proposes to adopt 

pricing for a Destination Specific 

Order 4 routed to and executed by its 

affiliated exchange, BYX. The Exchange 

proposes to refer to this routing as ‘‘B2B’’ 

routing, and proposes to rebate $0.0003 

per share for B2B orders routed to and 

executed by BYX. As described above, 

this is the same rebate applicable to 

orders routed to BYX directly. 

(iv) Destination Specific Options 

Routing to C2 

As set forth in the Options pricing 

section of the fee schedule, the 

Exchange currently charges flat rates for 

Customer, Firm and Market Maker 

transactions executed at away markets 

pursuant to Destination Specific Order 5

routing strategies, which rates vary 

depending on the venue at which 

transactions execute.6 The Exchange has 

two distinct categories of options 

exchanges with ‘‘Make/Take’’ pricing.7

The first category of Make/Take pricing 

is proposed to apply to Destination 

Specific Orders executed at the 

International Stock Exchange (‘‘ISE’’) or 

NASDAQ OMX PHLX (‘‘PHLX’’) in 

issues for which Make/Take pricing 

applies. The fee for this first category of 

Make/Take markets is proposed as $0.20 

per contract for Customer transactions 

and $0.50 per contract for Firm or 

Market Maker transactions. The 

Exchange proposes to add the soon to be 

operational C2 Options Exchange (‘‘C2’’) 

to this category of Destination Specific 

routing. The Exchange believes that 

Members will benefit from the 

simplicity of the pricing structure, and 

that C2 pricing will be most consistent 

with the pricing offered by ISE and 

PHLX in issues for which Make/Take 

pricing applies. 

(v) Additional Changes 

In addition to the changes described 

above, the Exchange proposes adding 

additional headings to its fee schedule 

in order to maintain clear delineation 

between its equities and options pricing 

sections. The Exchange also proposes to 

move a footnote within the equities 

pricing section of the fee schedule to 

maintain its position at the bottom of 

the page in the version of the fee 

schedule maintained on its Web site. 

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. 

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 

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–2010–030 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–2010–030. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
66172 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

12The text of the proposed rule change is 

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

www.sec.gov/rules/sro.shtml. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that the Exchange 

proposes to amend BYX Rule 11.13. 

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

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

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,12 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, 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–BATS–2010–030 and 

should be submitted on or before 

November 17, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27141 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63148; File No. SR–BYX– 

2010–003] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Rule 11.13, 

entitled ‘‘Order Execution’’ 

October 21, 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 October 

13, 2010, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. 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 amend 

BATS Rule 11.13 [sic],3 entitled ‘‘Order 

Execution,’’ to modify the description of 

certain routing strategies that the 

Exchange proposes to offer when it 

commences operations. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 11.13, which describes its order 

routing processes, to modify the 

description of certain routing strategies 

that the Exchange proposes to offer 

when it commences operations. 

Recently, the Exchange proposed 

addition of reference in its Rules to 

various routing strategies that will be 

available through BYX based on the 

rules of its affiliate, BATS Exchange, 

Inc. (‘‘BATS Exchange’’). Such strategies 

include the CYCLE routing strategy, 

variations of the Parallel routing 

strategy, DRT routing and Destination 

Specific Routing. The Exchange 

proposes to further amend Rule 11.13 to 

offer two new routing strategies, which 

are described below. 

• TRIM. TRIM is a routing option 

under which an order will check the 

System for available shares and then 

will be sent to destinations on the 

System routing table. 

• SLIM. SLIM is a routing option 

under which an order will check the 

System for available shares and then 

will be sent to destinations on the 

System routing table, including BATS 

Exchange. 

In addition to the addition of the 

TRIM and SLIM routing strategies, the 

Exchange proposes modifying the 

description of the Parallel T routing 

strategy to make clear that when 

checking the Exchange’s System for 

available shares, it will only check for 

displayed shares prior to routing away 

from the Exchange. The Parallel T 

routing strategy is intended to route 

only to Protected Quotations and only 

for displayed size, and thus, the 

Exchange believes that removal of only 

displayed size from its own System is 

most consistent with this strategy. 

Exchange Rule 11.13(a)(3)(E) includes 

a definition of DRT routing, which is a 

routing option in which the entering 

firm instructs the System to route to 

alternative trading systems included in 

the System routing table. The definition 

of DRT currently states that it can be 

combined with three specified routing 

strategies offered by the Exchange. The 

Exchange proposes modifying the 

description of DRT routing to make 

clear that it can be combined with all 

routing strategies, including the new 

TRIM and SLIM routing strategies, 

unless otherwise specified. In addition, 

because some routing strategies offered 

by the Exchange might include DRT 

routing at a later stage, the Exchange 

proposes to remove the word ‘‘first’’ 

from the definition of the DRT routing 

strategy. 

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.4

Specifically, the proposed change is 

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

Act,5 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. The proposed change to 

introduce additional routing strategies 

will provide market participants with 

greater flexibility in routing orders 

consistent with Regulation NMS 

without developing complicated order 

routing strategies on their own. 


srobinson on DSKHWCL6B1PROD with NOTICES