Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices 64431 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 72014 

(Apr. 24, 2014), 79 FR 24465 (‘‘Notice’’). 

4 In Amendment No. 1, the Exchange confirmed 

the hours of the three trading sessions on the 

Exchange, clarified the valuation of investments for 

purposes of calculating net asset value, clarified 

what information would be available on the Fund’s 

Web site, and provided additional information 

relating to surveillance with respect to certain 

assets held by the Fund. Amendment No. 1 

provided clarification to the proposed rule change, 

and because it does not materially affect the 

substance of the proposed rule change or raise 

novel or unique regulatory issues, Amendment No. 

1 is not subject to notice and comment. 

5The Exchange filed Amendment No. 2 to the 

proposal to reflect a name change to the Fund and 

the underlying index. Specifically, the Exchange 

replaced each reference to ‘‘Reality Shares 

NASDAQ–100 Isolated Dividend Growth ETF’’ in 

the proposal with ‘‘Reality Shares NASDAQ–100 

DIVS Index ETF’’ and replaced each reference to 

‘‘Reality Shares NASDAQ–100 Isolated Dividend 

Growth Index’’ in the proposal with ‘‘Reality Shares 

NASDAQ–100 DIVS Index.’’ Amendment No. 2 is 

a technical amendment and is not subject to notice 

and comment as it does not materially affect the 

substance of the filing. 

6 15 U.S.C. 78s(b)(2). 

7See Securities Exchange Act Release No. 72384, 

79 FR 35205 (Jun. 19, 2014). The Commission 

designated a longer period within which to take 

action on the proposed rule change and designated 

July 29, 2014, as the date by which it should 

approve, disapprove, or institute proceedings to 

determine whether to disapprove the proposed rule 

change. 

8 15 U.S.C. 78s(b)(2)(B). 

9See Securities Exchange Act Release No. 72715, 

79 FR 45556 (Aug. 5, 2014) (‘‘Order Instituting 

Proceedings’’). Specifically, the Commission 

instituted proceedings to allow for additional 

analysis of the proposed rule change’s consistency 

with Section 6(b)(5) of the Act, which requires, 

among other things, that the rules of a national 

securities exchange be ‘‘designed to prevent 

fraudulent and manipulative acts and practices, to 

promote just and equitable principles of trade,’’ and 

‘‘to protect investors and the public interest.’’ See 

id. 

10See Letter from Eric Ervin, President, Reality 

Shares ETF Trust and Reality Shares Advisors, LLC, 

and President and CEO, Reality Shares, Inc., to 

Kevin M. O’Neill, Deputy Secretary, Commission, 

dated August 22, 2014. 

11 15 U.S.C. 78s(b)(2). 

12See supra note 3. 

13 15 U.S.C. 78s(b)(2). 

14 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73418; File No. SR– 

NASDAQ–2014–038] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Designation of a Longer Period for 

Commission Action on Proceedings To 

Determine Whether To Approve or 

Disapprove a Proposed Rule Change, 

as Modified by Amendment Nos. 1 and 

2 Thereto, Relating to Listing and 

Trading of Shares of the NASDAQ–100 

DIVS Index ETF Under Rule 5705 

October 23, 2014. 

On April 10, 2014, The NASDAQ 

Stock Market LLC (‘‘Exchange’’) 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 Reality Shares 

NASDAQ–100 DIVS Index ETF 

(‘‘Fund’’) (formerly, Reality Shares 

NASDAQ–100 Isolated Dividend 

Growth Index ETF) under NASDAQ 

Rule 5705. The proposed rule change 

was published for comment in the 

Federal Register on April 30, 2014.3 On 

May 6, 2014, the Exchange filed 

Amendment No. 1 to the proposed rule 

change, which amended and replaced 

the proposed rule change in its 

entirety.4 On June 4, 2014, the Exchange 

filed Amendment No. 2 to the proposed 

rule change.5 On June 13, 2014, 

pursuant to Section 19(b)(2) of the Act,6

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.7

On July 29, 2014, the Commission 

instituted proceedings under Section 

19(b)(2)(B) of the Act 8 to determine 

whether to approve or disapprove the 

proposed rule change.9 In response to 

the Order Instituting Proceedings, the 

Commission received one comment 

letter on the proposal.10

Section 19(b)(2) of the Act 11 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may, however, 

extend the period for issuing an order 

approving or disapproving the proposed 

rule change by not more than 60 days 

if the Commission determines that a 

longer period is appropriate and 

publishes the reasons for that 

determination. The proposed rule 

change was published for notice and 

comment in the Federal Register on 

April 30, 2014.12 The 180th day after 

publication of the notice of the filing of 

the proposed rule change in the Federal 

Register is October 27, 2014, and the 

240th day after publication of the notice 

of the filing of the proposed rule change 

in the Federal Register is December 26, 

2014. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

the proposed rule change, including the 

matters raised in the comment letter to 

the proposed rule change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,13 designates December 26, 2014 as 

the date by which the Commission shall 

either approve or disapprove the 

proposed rule change (File No. SR– 

NASDAQ–2014–038). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25674 Filed 10–28–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73412; File No. SR–BATS– 

2014–052] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Rules 11.9 and 11.13 

of BATS Exchange, Inc. 

October 23, 2014. 

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 October 

17, 2014, BATS Exchange, Inc. (the 

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

Securities and Exchange Commission 

(‘‘Commission’’) a 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 filed a proposal to 

amend Rules 11.9 and 11.13 to modify 

the routing strategies made available 

through the Exchange. 

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

64432 Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices 

3See Securities Exchange Act Release No. 71375 

(January 23, 2014), 79 FR 4771 (January 29, 2014) 

(SR–BATS–2013–059; SR–BYX–2013–039). 

4See EDGA Rules 11.9(b)(2)(c), 11.9(b)(2)(d), 

11.9(b)(2)(h), 11.9(b)(2)(i), 11.9(b)(2)(n); EDGX Rules 

11.9(b)(2)(c), 11.9(b)(2)(d), 11.9(b)(2)(h), 

11.9(b)(2)(i), 11.9(b)(2)(j), 11.9(b)(2)(n). 

5As defined in Rule 1.5(aa), the System is the 

electronic communications and trading facility 

designated by the Board through which securities 

orders of Users are consolidated for ranking, 

execution and, when applicable, routing away. 

6As defined in Rule 1.5(e). 

7As set forth in Rule 11.13(a)(3), the term 

‘‘System routing table’’ refers to the proprietary 

process for determining the specific trading venues 

to which the System routes orders and the order in 

which it routes them. 

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 

Earlier this year, the Exchange and its 

affiliate BATS Y-Exchange, Inc. (‘‘BYX’’) 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, BATS Global Markets, Inc., 

with Direct Edge Holdings LLC, the 

indirect parent of EDGX Exchange, Inc. 

(‘‘EDGX’’) and EDGA Exchange, Inc. 

(‘‘EDGA’’, and together with BZX, BYX 

and EDGX, the ‘‘BGM Affiliated 

Exchanges’’).3 In the context of the 

Merger, the BGM Affiliated Exchanges 

are working to align certain system 

functionality, retaining only intended 

differences between the BGM Affiliated 

Exchanges. Thus, the proposal set forth 

below is intended to add certain system 

functionality currently offered by EDGA 

and EDGX in order to provide a 

consistent technology offering for users 

of the BGM Affiliated Exchanges. 

The specific proposal set forth in 

more detail below would amend Rules 

11.9 and 11.13, which describe the 

Exchange’s routing options made 

available by the Exchange. Specifically, 

the changes to Rule 11.9 would relocate 

certain routing strategies identified as 

order types to Rule 11.13. The Exchange 

is also proposing to eliminate an 

obsolete routing strategy that is 

currently listed as an order type. 

Finally, the Exchange proposes to add to 

Rule 11.13 to offer many of the same 

routing strategies offered by EDGA and 

EDGX. The Exchange notes that the 

proposed rule text is based on the rules 

of EDGA and EDGX and is different only 

to the extent necessary to conform to the 

Exchange’s current rules.4

Modifications to Rule 11.9 

As noted above, the Exchange 

proposes to re-locate two routing 

strategies from Rule 11.9 to Rule 11.13. 

Rule 11.9 generally contains order types 

and order type modifiers whereas Rule 

11.13 describes routing strategies 

offered by the Exchange. Accordingly, 

the Exchange proposes to relocate 

Destination Specific Orders and 

Directed Intermarket Sweep Orders 

(‘‘Directed ISOs’’) from Rule 11.9 to 

Rule 11.13 because both orders are 

routing strategies rather than order types 

or order type modifiers. The Exchange 

notes that Rule 11.13 has always 

reflected that such descriptions are 

routing strategies by containing a crossreference to such strategies in Rule 

11.13(a)(3). The Exchange is not 

proposing to modify the description or 

operation of either Destination Specific 

Orders or Directed Intermarket Sweep 

Orders. The Exchange notes that it has 

proposed minor changes to the wording 

of both Destination Specific Orders and 

Directed ISOs in order to conform such 

routing strategies with the other 

strategies described in Rule 11.13(a)(3). 

The Exchange also proposes to delete 

from Rule 11.9 an obsolete routing 

strategy, the Modified Destination 

Specific Order, which is currently set 

forth in Rule 11.9(c)(13). Modified 

Destination Specified Orders are market 

or limit orders that instruct the System 5

to route the order to a specified away 

trading center or centers, as approved by 

the Exchange from time to time, without 

first exposing the order to the 

Exchange’s order book (the ‘‘BATS 

Book’’).6 The Exchange notes that it has 

not had any approved away trading 

centers for Modified Destination 

Specific Orders for several years but has 

retained the order in the event the 

Exchange determined to offer such 

routing strategy again. The Exchange 

believes that it is appropriate to 

eliminate Modified Destination Specific 

Orders because they are no longer 

offered by the Exchange and are 

unlikely to be offered by the Exchange 

in the near future. 

Additions to Rule 11.13 

The Exchange proposes to add several 

new routing strategies based on routing 

strategies offered by EDGA and/or 

EDGX, as set forth below. 

The Exchange currently offers various 

routing strategies under which an order 

checks the System for available shares if 

so instructed by the entering User and 

then is sent to destinations on the 

applicable System routing table.7

Specifically, the Exchange offers TRIM, 

TRIM2, TRIM3 and SLIM routing 

strategies. The Exchange proposes to 

consolidate these routing strategies into 

a single rule, Rule 11.13(a)(3)(G), and to 

add to this rule three additional routing 

strategies under which an order checks 

the System for available shares and then 

is sent to destinations on the applicable 

System routing table, namely ROUT, 

ROUX and ROUZ. The Exchange also 

proposes to specify for ROUT and 

ROUX that the entering User may select 

either Route To Improve (‘‘RTI’’) or 

Route To Fill (‘‘RTF’’). RTI may route to 

multiple destinations at a single price 

level simultaneously while RTF may 

route to multiple destinations and at 

multiple price levels simultaneously. 

The Exchange notes that the RTI 

option coupled with either ROUT or 

ROUX is similar to the Parallel D 

routing strategy described in current 

Rule 11.13(a)(3)(B) in that it routes to 

multiple destinations simultaneously 

but at a single price level whereas the 

RTF option coupled with either ROUT 

or ROUX is similar to the Parallel 2D 

routing strategy described in current 

Rule 11.13(a)(3)(C). The only distinction 

between Parallel D and Parallel 2D on 

one hand and ROUT or ROUX coupled 

with RTI or RTF on the other is that the 

existence of ROUT and ROUX plus 

either RTI or RTF will provide 

additional flexibility by allowing the 

Exchange to offer two System routing 

tables that can be paired with the 

applicable routing methodology. In 

order to allow a gradual migration from 

Parallel D and Parallel 2D to the 

proposed routing strategies (ROUT or 

ROUX plus RTI or RTF) the Exchange is 

not proposing to eliminate such routing 

strategies upon effectiveness of this 

proposal. Instead, the Exchange 

proposes to continue to accept orders 

designated for Parallel D and Parallel 2D 

routing and will eventually retire such 

routing strategies and remove reference 

to the routing strategies from Exchange 

rules once all affected Users have been 

migrated away from Parallel D and 

Parallel 2D to the new routing strategies. 

Further, adding the ROUT and ROUX 

routing strategies plus the RTI and RTF 

options as proposed will ensure 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices 64433 

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

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78k–1(a)(1). 

consistency with EDGA and EDGX with 

respect to the names used to describe 

the strategies. 

The Exchange also proposes to add 

the Post to Away routing option, which 

will route the remainder of a routed 

order to and posts such order on the 

order book of a destination on the 

System routing table as specified by the 

User. The Post to Away routing option 

is an alternative to either cancelling a 

routed order back to a User or posting 

such order to the BATS Book to the 

extent an order is not completely filled 

through the routing process. The Post to 

Away routing option can be combined 

with the following routing strategies 

(each of which is separately described 

in this filing): ROUT, ROUX, ROUZ, 

INET, RDOT, RDOX and ROLF. 

The Exchange also proposes to adopt 

four additional routing strategies under 

which an order checks the System for 

available shares and is sent to a 

specified destination. Although the 

Exchange currently has similar order 

routing options through the Destination 

Specific routing option, the Exchange is 

proposing certain additional 

functionality with the proposed routing 

strategies to match functionality offered 

by EDGA and EDGX. The Exchange also 

believes that retaining the same names 

for such routing options as are utilized 

by EDGA and EDGX will help to 

promote the integration of the BGM 

Affiliated Exchanges. These proposed 

routing strategies that are focused on 

particular destinations and/or particular 

functionality offered by such 

destinations are set forth below: 

• INET. The Exchange proposes to 

add the INET routing option under 

which an order will check the System 

for available shares and then will be 

sent to Nasdaq. If shares remain 

unexecuted after routing through the 

INET routing option, they will be posted 

on the Nasdaq book, unless otherwise 

instructed by the User. 

• RDOT. The Exchange proposes to 

add the RDOT 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. If shares remain 

unexecuted after routing, they will be 

sent to NYSE and can be re-routed by 

the NYSE. If shares remain unexecuted 

after routing, they will be posted to the 

NYSE, unless otherwise instructed by 

the User. 

• RDOX. The Exchange proposes to 

add the RDOX option under which an 

order will check the System for 

available shares, then will be sent to the 

NYSE and can be re-routed by the 

NYSE. If shares remain unexecuted after 

routing, they will be posted on the 

NYSE book, unless otherwise instructed 

by the User. 

• ROLF. The Exchange proposes to 

add the ROLF routing option under 

which an order will check the System 

for available shares and then will be 

sent to LavaFlow ECN. If shares remain 

unexecuted after routing they will be 

cancelled, unless otherwise instructed 

by the User. 

The Exchange also proposes to add 

the ROOC routing option for orders that 

the entering User wishes to designate for 

participation in the opening, re-opening 

(following a halt, suspension, or pause), 

or closing process of a primary listing 

market (NYSE, Nasdaq, NYSE MKT, or 

NYSE Arca) if received before the 

opening/re-opening/closing time of such 

market. If shares remain unexecuted 

after attempting to execute in the 

opening, re-opening, or closing process, 

they will be posted to the BATS Book, 

executed, or routed to destinations on 

the System routing table. 

In addition to the changes proposed 

above, the Exchange also proposes to renumber various existing paragraphs of 

Rule 11.13(a)(3) in connection with the 

addition of the proposed routing 

strategies. The Exchange also proposes 

to correct a typographical error in Rule 

11.13(a)(3)(I), which describes SWP 

orders, by referencing Rule 11.18(e) 

instead of Rule 11.8(e) with respect to 

the Limit Up-Limit Down Plan. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule changes are consistent 

with Section 6(b) of the Securities 

Exchange Act of 1934 (the ‘‘Act’’) 8 and 

further the objectives of Section 6(b)(5) 

of the Act 9 because they are designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and, in general, to protect investors and 

the public interest. The proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 10 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets. In 

particular, the proposed change to 

introduce additional routing strategies 

will provide market participants with 

greater flexibility in routing orders 

consistent with Regulation NMS 

without developing order routing 

strategies on their own. 

As noted above, the proposed rule 

changes to add functionality are 

intended to add certain system 

functionality currently offered by EDGA 

and EDGX in order to provide a 

consistent technology offering for the 

BGM Affiliated Exchanges. A consistent 

technology offering, in turn, will 

simplify the technology 

implementation, changes and 

maintenance by Users of the Exchange 

that are also participants on BYX, EDGA 

and/or EDGX. The proposed rule 

changes would also provide Users with 

access to functionality that may result in 

the efficient execution of such orders 

and will provide additional flexibility as 

well as increased functionality to the 

Exchange’s System and its Users. As 

explained elsewhere in this proposal, all 

of the proposed routing options are 

similar to routing strategies on other 

market centers, including EDGA and 

EDGX. 

The Exchange also believes that relocating certain routing options from 

Rule 11.9 to Rule 11.13 is consistent 

with the protection of investors and the 

public interest pursuant to the Act 

because such changes will enable those 

reviewing the Exchange’s rules to more 

clearly understand such rules. 

Finally, the Exchange believes that 

elimination of the Modified Destination 

Specific Order is consistent with the Act 

because such routing strategy is not 

currently offered by the Exchange 

because there are no currently approved 

destinations for such strategy. Thus, 

eliminating reference to such strategy 

will avoid confusion by market 

participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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. The 

Exchange provides routing services in a 

highly competitive market in which 

participants may avail themselves of a 

wide variety of routing options offered 

by self-regulatory organizations, 

alternative trading systems, other 

broker-dealers, market participants’ own 

proprietary routing systems, and service 

bureaus. In such an environment, 

system enhancements such as the 

changes proposed in this rule filing do 

not burden competition, because they 

can succeed in attracting order flow to 

the Exchange only if they offer investors 

higher quality and better value than 

services offered by others. The Exchange 

reiterates that the proposed rule change 

mstockstill on DSK4VPTVN1PROD with NOTICES

64434 Federal Register / Vol. 79, No. 209 / Wednesday, October 29, 2014 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(6). 13 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change. 

14 17 CFR 240.19b–4(f)(6). 

15 17 CFR 240.19b–4(f)(6)(iii). 

16For 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). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

is being proposed in the context of the 

technology integration of the BGM 

Affiliated Exchanges. Thus, the 

Exchange believes this proposed rule 

change is necessary to permit fair 

competition among national securities 

exchanges. In addition, the Exchange 

believes the proposed rule change will 

benefit Exchange participants in that it 

is one of several changes necessary to 

achieve a consistent technology offering 

by the BGM Affiliated Exchanges. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b– 

4(f)(6) thereunder.12 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 is filed, or such shorter time as 

the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act and Rule 19b– 

4(f)(6) thereunder.13

A proposed rule change filed 

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

Act 14 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 15

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 asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing, noting that a waiver of the 

operative delay will allow the Exchange 

to continue to strive towards a complete 

technology integration of the BGM 

Affiliated Exchanges, with gradual rollouts of new functionality to ensure 

stability of the System. The Exchange 

also believes that the benefit to 

Exchange Users expected from the 

proposed rule change—greater 

flexibility in their efforts to fill orders— 

should not be delayed. Further, the 

Exchange states that introduction of the 

optional routing strategies will not 

require any systems changes by 

Exchange Users that would necessitate a 

delay, as selection of the routing 

strategies is entirely optional and Users 

will not be affected by the change unless 

they select to use the newly offered 

functionality. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest. 

Therefore, the Commission hereby 

waives the operative delay and 

designates the proposed rule change 

operative upon filing.16

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 email to rule-comments@

sec.gov. Please include File Number SR– 

BATS–2014–052 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BATS–2014–052. This file 

number should be included on the 

subject line if email 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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

offices 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– 

2014–052, and should be submitted on 

or before November 19, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25666 Filed 10–28–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73414; File No. SR–BATS– 

2014–050] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Related to Fees for Use 

of BATS Exchange, Inc. 

October 23, 2014. 

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 October 

16, 2014, BATS Exchange, Inc. (the 

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

Securities and Exchange Commission 

(‘‘Commission’’) a 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 

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