66180 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

8 15 U.S.C. 78s(b)(3)(a)(ii). 

9 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. 

and issuers and other persons using any 

facility or system which The Exchange 

operates or controls. In particular, the 

Exchange notes that the use of colocation services is entirely voluntary 

and made available on a nondiscriminatory basis. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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.8 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, as amended, 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–NASDAQ–2010–133 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–NASDAQ–2010–133. 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 

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– 

NASDAQ–2010–133, and should be 

submitted on or before November 17, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27194 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63149; File No. SR–BYX– 

2010–004] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Related to Fees for Use 

of BATS Y-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 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, 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 Members 3 of 

the Exchange pursuant to BYX 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 implement 

a fee schedule applicable to use of the 

Exchange commencing on the date it 

begins operating as a national securities 

exchange. The Exchange currently 

intends to commence operations on 

October 15, 2010. Please find below a 

description of the fees and rebates that 

the Exchange intends to impose under 

the initial, proposed fee schedule. 

The Exchange does not propose to 

charge different fees or grant different 

rebates depending on the amount of 

orders submitted to, and/or trades 

executed on or through, the Exchange. 

Accordingly, all fees and rebates 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66181 

4As defined in BYX Rule 11.9(c)(8). 

5As defined in BYX Rule 11.9(c)(9). 

6As defined in BYX Rule 11.9(c)(11). 

7As defined in BYX Rule 11.9(c)(1). 

8As defined in BYX Rule 11.9(c)(10). 

9As defined in BATS Rule 11.9(c)(12). 

10As defined in BATS Rule 1.5(t). 

11As defined in BYX Rule 11.9(d)(2). 

12As defined in BATS Rule 11.9(c)(13). 

described below are applicable to all 

Members, regardless of the overall 

volume of their trading activities on the 

Exchange. Furthermore, the proposed 

fees are different but structurally similar 

to those of the Exchange’s affiliated 

exchange, BATS Exchange, Inc. (‘‘BATS 

Exchange’’ or ‘‘BATS’’), though the 

Exchange has omitted fees that are not 

currently proposed to be charged by the 

Exchange or that are not pertinent to the 

Exchange’s planned business. 

(i) Standard Order Execution Fees— 

Removing Liquidity 

The Exchange is proposing to rebate 

$0.0003 per share for executions that 

remove liquidity from the Exchange, 

with the exception of executions 

involving securities priced under $1.00 

per share. With respect to securities 

priced under $1.00 per share that 

remove liquidity from the Exchange’s 

book, the Exchange proposes to charge 

a fee of 0.10% of the total dollar value 

of the execution. 

(ii) Standard Order Execution Fees— 

Adding Liquidity 

The Exchange proposes to establish a 

no charge and no rebate structure for 

adding displayed liquidity to the BYX 

order book in securities priced $1.00 

and above and for adding any liquidity 

(displayed or non-displayed) to the BYX 

order book securities priced below 

$1.00. The Exchange proposes charging 

$0.0005 per share that adds nondisplayed liquidity to the BYX order 

book in securities priced $1.00 and 

above. As defined on the proposed fee 

schedule, the reference to ‘‘nondisplayed liquidity’’ for purposes of the 

fee schedule includes liquidity resulting 

from all forms of Pegged Orders,4 MidPoint Peg Orders,5 and Non-Displayed 

Orders,6 but does not include liquidity 

resulting from Reserve Orders 7 or 

Discretionary Orders.8

(iii) Standard Routing Pricing—Best 

Execution Routing 

The Exchange proposes to charge the 

routing charges described below. All 

charges by the Exchange for routing are 

applicable only in the event that an 

order is executed. In other words, there 

is no charge for orders that are routed 

away from the Exchange but are not 

filled. The best execution routing fees 

proposed by this filing are identical to 

those charged by the Exchange’s 

affiliated exchange, BATS Exchange (for 

identical best execution routing 

strategies). The standard best execution 

routing strategies offered by the 

Exchange include Parallel D, Parallel 

2D, Parallel T, CYCLE, RECYCLE and 

DRT. 

The Exchange proposes to offer the 

Parallel D, Parallel 2D, CYCLE and 

RECYCLE routing strategies at a charge 

of $0.0028 per share for executions that 

occur at other trading venues as a result 

of such strategies. 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 via Parallel T. 

With respect to securities priced 

under $1.00 per share, the Exchange 

proposes to charge 0.28% of the total 

dollar value of the execution of an order 

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. 

In addition, consistent with the fees 

charged by BATS Exchange, BYX 

proposes to offer its DRT routing 

strategy to Members with a fee of 

$0.0020 per share executed at a dark 

liquidity venue. This lower fee is based 

on the fact that various dark liquidity 

venues to which the Exchange routes 

provide the possibility of executions at 

reduced rates. Finally, as BATS 

Exchange does on its fee schedule, BYX 

proposes to note that the current default 

best execution routing strategy used by 

the Exchange is to route through DRT to 

dark liquidity venues and then to other 

market centers through Parallel D. 

(iv) Destination Specific Routing Pricing 

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) (referred to by the 

Exchange as ‘‘One Under’’ pricing). The 

One Under pricing proposed by BYX is 

identical to One Under pricing offered 

by BYX’s affiliated exchange, BATS 

Exchange, and in each instance the 

execution fee 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. Specifically, the 

Exchange proposes to charge: (a) 

$0.0020 per share for BYX + NYSE 

Destination Specific Orders executed at 

NYSE; (b) $0.0027 per share for BYX + 

NYSE ARCA Destination Specific 

Orders executed at NYSE Arca in Tape 

B securities; and (c) $0.0029 per share 

for BYX + NASDAQ Destination 

Specific Orders executed at NASDAQ or 

BYX + NYSE ARCA Destination 

Specific Orders executed at NYSE Arca 

in Tape A or Tape C securities, while 

such market centers currently charge 

removal rates, respectively, of: (x) 

$0.0021 per share; (y) $0.0028 per share; 

and (z) $0.0030 per share. 

In conjunction with this proposal, the 

Exchange proposes to set forth these 

fees under a separate heading in order 

to make clear the order types to which 

‘‘One Under’’ pricing applies. All other 

Destination Specific Order fees (i.e., to 

BATS Exchange or other market centers, 

as described below) can be found under 

the heading for ‘‘Other Non-Standard 

Routing Options.’’ 

The Exchange also proposes to adopt 

pricing for a Destination Specific 

Order 9 routed to and executed by its 

affiliated exchange, BATS Exchange. 

The Exchange proposes to refer to this 

routing as ‘‘B2B’’ routing, and proposes 

to charge $0.0025 per share for B2B 

orders routed to and executed by BATS 

Exchange. This charge is the same 

charge a Member would incur if it 

routed an order to BATS Exchange 

directly. In addition, the Exchange 

proposes to adopt a charge of $0.0030 

per share for Destination Specific 

Orders sent to and executed by any 

market center other than the NYSE, 

NYSE Arca, NASDAQ or BATS 

Exchange that displays a Protected 

Quotation 10 (each a ‘‘Protected Market 

Center’’). Additionally, the Exchange 

proposes to charge $0.0020 per share for 

executions that occur at a dark liquidity 

venue through a BYX + DRT Destination 

Specific Order. 

(v) Other Non-Standard Routing Options 

In addition to non-standard routing 

options described elsewhere in this 

filing, the Exchange also proposes to 

charge certain other fees identical to 

those charged by its affiliated exchange, 

BATS Exchange. Specifically, the 

Exchange proposes to charge $0.0033 

per share for Directed ISO’s.11 The 

Exchange also proposes not to charge for 

Modified Destination Specific Orders 12

routed to and executed by a dark 

liquidity venue through its ‘‘Dark Scan’’ 

routing strategy. 

(vi) TRIM Routing Pricing 

The Exchange proposes to adopt 

pricing for its new TRIM order routing 

strategy, which strategy is focused on 


srobinson on DSKHWCL6B1PROD with NOTICES
66182 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

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 

charge Members $0.0025 per share for 

TRIM orders routed to and executed by 

its affiliated exchange, BATS Exchange, 

which is the same rebate to be offered 

by BATS to market participants that 

route directly to and execute at BATS. 

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 BATS, a DRT venue or 

NYSE, the Exchange proposes neither to 

charge the Member any fee nor to pay 

any rebate for such execution. 

(vii) SLIM Routing 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 charge 

Members $0.0025 per share for SLIM 

orders routed to and executed by its 

affiliated exchange, BATS. 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. 

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. 

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act, 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 various routing fees proposed by 

this filing, including fees for order 

execution and routing strategies offered 

by the Exchange, are intended to attract 

order flow to BYX by offering 

competitive and easy to understand 

rates to Exchange Members. All fees are 

structured in a manner comparable to 

corresponding fees of the Exchange’s 

affiliate, BATS Exchange, and are set at 

levels equal to or lower than the levels 

of the comparable BATS Exchange fees. 

The differences between the fees 

charged for routing to specific market 

centers and routing of specific order 

types described above are due to 

different cost structures at the various 

market centers to which orders may be 

routed and other factors. For instance, 

lower transaction fees at NYSE allow 

the Exchange to charge lower routing 

fees for BATS + NYSE Destination 

Specific Orders than Destination 

Specific Orders routed elsewhere (i.e., 

to NASDAQ and other protected market 

centers). Similarly, lower transaction 

fees at dark liquidity venues permit the 

Exchange to charge lower routing fees 

for orders routed to such venues. 

Because the Exchange incurs additional 

costs and performs additional services 

in connection with certain routing 

services, such as the routing of Directed 

ISOs and Parallel T routing, it proposes 

to charge a higher routing fee for such 

orders. Finally, because the Exchange 

believes that a uniform routing fee for 

all other orders routed away from the 

Exchange through its best execution 

routing strategies provides Members 

with certainty as to transaction costs, it 

proposes to charge standard routing fees 

for such orders, rather than further 

differentiating routing fees that it 

charges to Members. 

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. Also, although routing 

services offered by the Exchange are 

available to all Members, Members are 

not required to use the Exchange’s 

routing services, but instead, the 

Exchange’s routing services are 

completely optional. Members can 

manage their own routing practices or 

can utilize a myriad of other routing 

solutions that are available to market 

participants. 

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 13 and Rule 19b–4(f)(2) 

thereunder,14 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–BYX–2010–004 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–BYX–2010–004. 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 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66183 

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). 

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

2 17 CFR 240.19b-4. 

3BYX is a registered national securities exchange 

and affiliate of the Exchange. See Securities 

Exchange Act Release No. 34–62716 (August 13, 

2010), 75 FR 51295 (August 19, 2010) (order 

approving application of BATS Y–Exchange, Inc. 

for registration as a national securities exchange). 

BYX plans to commence operations on October 15, 

2010. 

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

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

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, 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–BYX–2010–004 and should 

be submitted on or before November 17, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27144 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63147; File No. SR–BATS– 

2010–029] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change by BATS Exchange, Inc. 

To Amend BATS 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 Exchange, Inc. (‘‘BATS’’ 

or the ‘‘Exchange’’) 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, entitled ‘‘Order 

Execution,’’ to add certain new routing 

strategies and to modify the description 

of certain existing Exchange routing 

strategies. 

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 add certain new 

routing strategies and to modify the 

existing description of two Exchange 

routing strategies. 

Currently, various routing strategies 

are available through BATS, including 

the CYCLE routing strategy, variations 

of the Parallel routing strategy, DRT 

routing and Destination Specific 

Routing. The Exchange proposes 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 if so 

instructed by the entering User 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, will be 

routed to BATS Y–Exchange, Inc. 

(‘‘BYX’’),3 and then will be sent to 

destinations on the System routing 

table. 

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 

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 

and to modify certain existing routing 

strategies will provide market 

participants with greater flexibility in 

routing orders consistent with 

Regulation NMS without developing 


srobinson on DSKHWCL6B1PROD with NOTICES