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
Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Notices 66173 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

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. BYX has satisfied this requirement. 

8 17 CFR 240.19b–4(f)(6). 

9 Id. 

10See NASDAQ Rule 4758. 

11For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

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. 

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 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 for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 6 and Rule 19b– 

4(f)(6) thereunder.7

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 8 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6) 9

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange requests 

that the Commission waive the 30-day 

operative delay in order to allow the 

Exchange to immediately offer Exchange 

Users the routing strategies when BYX, 

commences operations. Further, the 

Exchange believes that the proposed 

TRIM and SLIM routing strategies are 

consistent with routing strategies 

offered by the Nasdaq Stock Market 

(‘‘NASDAQ’’).10 In addition, the 

Exchange believes that its proposed new 

routing strategies will benefit market 

participants and their customers by 

allowing them greater flexibility in their 

efforts to fill orders and minimize 

trading costs. The Exchange expects to 

have technological changes for one or 

more of the new routing strategies in 

place to support the proposed rule 

change in the near future, and believes 

that benefits to Exchange Users 

expected from the proposed rule change 

should not be delayed. In addition, BYX 

states a delay to the implementation 

date would put the Exchange at a 

competitive disadvantage to other 

markets that already offer similar 

functionalities. The Commission 

believes that waiving the 30-day 

operative delay 11 is consistent with the 

protection of investors and the public 

interest and designates the proposal 

operative upon filing. 

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–2010–003 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–2010–003. 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,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–BYX–2010–003 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. 2010–27143 Filed 10–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63150; File No. SR–FINRA– 

2009–058] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Amendment No. 1 to a Proposed Rule 

Change and Order Granting 

Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Adopt FINRA 

Rule 2232 (Customer Confirmations) in 

the Consolidated FINRA Rulebook and 

To Delete NASD Rule 2230, NASD IM– 

2110–6 and Incorporated NYSE Rule 

409(f) 

October 21, 2010. 

I. Introduction 

On August 24, 2009, the Financial 

Industry Regulatory Authority, Inc. 

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

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

with the Securities and Exchange 

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

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

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to adopt FINRA Rule 2232 

(Customer Confirmations) in the 


srobinson on DSKHWCL6B1PROD with NOTICES