22786 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2009–16 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2009–16. 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 inspection and copying 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 publicly available. All 

submissions should refer to File 

Number SR–NYSEAmex–2009–16 and 

should be submitted on or before June 

4, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11227 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59890; File No. SR–BATS– 

2009–010] 

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. 

May 7, 2009. 

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 April 30, 

2009, BATS Exchange, Inc. (‘‘BATS’’ or 

the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the Exchange. BATS has designated 

the proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change effective upon 

filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to modify its 

fee schedule applicable to use of the 

Exchange. While changes to the fee 

schedule pursuant to this proposal will 

be effective upon filing, the changes will 

become operative on May 1, 2009. 

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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to modify its 

fee schedule applicable to use of the 

Exchange effective May 1, 2009, in order 

to: (i) Charge a consistent fee of $0.0025 

per share for trades that remove 

liquidity in securities priced $1.00 or 

above and provide a consistent rebate of 

$0.0024 per share to Members who add 

displayed liquidity in securities priced 

$1.00 or above; (ii) change the securities 

for which the Exchange does not pay a 

rebate for adding liquidity to all 

securities priced below $1.00, rather 

than securities priced below $5.00, and 

eliminate the rebate of $0.0001 per share 

for trades that remove liquidity in 

securities priced below $5.00; (iii) 

decrease the fee charged by the 

Exchange for its ‘‘CYCLE’’ routing 

strategy from $0.0026 per share to 

$0.0025 per share and modify the 

routing fee for securities priced below 

$1.00; and (iv) change from a fee of 

$0.0005 per share to a rebate of $0.0001 

per share for Modified Destination 

Specific Orders routed to a dark 

liquidity venue. Each of these proposed 

changes is described in further detail 

below. 

(i) Fees and Rebates for Securities 

Priced $1.00 or Above 

The Exchange currently charges a fee 

of $0.0025 per share for trades that 

remove liquidity in securities priced 

$5.00 or above, and proposes to change 

this fee so that it instead applies to 

trades that remove liquidity in securities 

priced $1.00 or above. 

The Exchange currently provides 

rebates for securities priced $5.00 or 

above of $0.0023 per share to Members 

who add displayed liquidity in Tape A 

and C securities, and $0.0028 per share 

to Members who add displayed in Tape 

B securities. The Exchange proposes to 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 22787 

5The CYCLE routing strategy routes orders to any 

market center or execution venue other than a dark 

liquidity pool. Orders are routed to dark liquidity 

pools through the Exchange’s DART routing 

strategy. Orders executed through DART cost 

$0.0020 per share, which the Exchange has not 

proposed to change at this time. 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

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

9 17 CFR 240.19b–4(f)(2). 

change this structure so that it instead 

provides a consistent rebate of $0.0024 

per share to Members who add 

displayed liquidity in all securities 

priced $1.00 or above. The Exchange 

does not propose to change the rebate 

provided for non-displayed liquidity 

added to the BATS Book, which is 

currently $0.0020 per share for Tapes A, 

B, and C. However, because the rebate 

for displayed liquidity, as proposed, 

will now apply to all securities rather 

than having a different rebate for Tape 

B securities, the Exchange proposes 

eliminating the reference to Tapes A, B, 

and C in connection with non-displayed 

liquidity as such reference is no longer 

necessary. 

(ii) Securities Priced Below $1.00 

Currently, the Exchange does not pay 

a rebate to Members who add liquidity 

in securities priced below $5.00. The 

Exchange proposes to increase the 

number of securities to which a rebate 

applies by changing to a no-rebate 

structure for liquidity adders in 

securities priced below $1.00. The 

Exchange also proposes to eliminate the 

rebate of $0.0001 per share for trades 

that remove liquidity in securities 

priced below $5.00, and instead, to 

allow Members to remove liquidity in 

securities priced below $1.00 without a 

charge. 

(iii) Standard Routing Fee and Routing 

Fee for Securities Priced Below $1.00 

The Exchange proposes to decrease 

the fee charged by the Exchange for its 

CYCLE routing strategy 5 from $0.0026 

per share to $0.0025 per share. To be 

consistent with this change, the 

Exchange proposes to charge 0.25%, 

rather than 0.26%, of the total dollar 

value of the execution for any security 

(all Tapes) priced under $1.00 per share 

that is routed away from the Exchange. 

(iv) Dark Scan Rebate 

Finally, the Exchange proposes to 

change its fee structure for Modified 

Destination Specific Orders routed to a 

dark liquidity venue (referred to by the 

Exchange as ‘‘Dark Scan’’). Rather than 

charging a fee for Dark Scan orders, 

which is currently $0.0005, the 

Exchange proposes to provide a rebate 

of $0.0001. Because this change is a 

change from a fee to a rebate, the 

Exchange proposes changing the 

heading of the applicable section to 

‘‘Other Non-Standard Routing Options,’’ 

rather than referring to ‘‘Other NonStandard Routing Charges’’. 

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.6

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,7 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 

rebates are competitive with those 

charged by other venues and that the 

changes it has proposed will simplify 

the Exchange’s pricing model. Finally, 

the Exchange believes that the proposed 

rates are equitable in that they apply 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement of 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 

No written comments were solicited 

or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has been designated as a fee change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 8 and Rule 19b–4(f)(2) thereunder,9

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 may summarily abrogate 

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 proposal 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 

No. SR–BATS–2009–010 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 No. 

SR–BATS–2009–010. 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 changes 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 inspection and copying 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 BATS. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File No. 

SR–BATS–2009–010 and should be 

submitted on or before June 4, 2009. 


pwalker on PROD1PC71 with NOTICES
22788 Federal Register / Vol. 74, No. 92 / Thursday, May 14, 2009 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Rule 13802(c)(3). These specially qualified 

arbitrators are attorneys familiar with employment 

law who have at least ten years of legal experience. 

In addition, a chair or single arbitrator may not have 

represented primarily the views of employers or of 

employees within the last five years. Primarily 

means 50 percent or more of the arbitrator’s 

business or professional activities within the last 

five years. 

4The $100,000 threshold was chosen because 

FINRA recently raised the threshold for a single 

chair-qualified arbitrator in all cases to $100,000. 

Under the rule change, if the amount of a claim is 

more than $100,000, exclusive of interest and 

expenses, or is unspecified, or if the claim does not 

request money damages, the panel will consist of 

three arbitrators, unless the parties agree in writing 

to one arbitrator. See Exchange Act Release No. 

59340 (February 2, 2009), 74 FR 6335 (February 6, 

2009) (SR–FINRA–2008–047). 

5Rule 13800(d) (Simplified Arbitration— 

Discovery and Additional Evidence) provides for 

limited discovery in arbitrations involving $25,000 

or less, exclusive of interest and expenses. 

6 In simplified arbitration proceedings 

administered under Rules 12800 and 13800 

(Simplified Arbitration), the arbitrator honorarium 

is $125. The honorarium under proposed Rule 

13806 is intended to be consistent with these rules. 

7The 13500 series of rules would provide for 

prehearing procedures and discovery in these cases. 

8Rule 13100(k) defines the term ‘‘Director’’ to 

mean the ‘‘Director of FINRA Dispute Resolution. 

Unless the Code provides that the Director may not 

delegate a specific function, the term includes 

FINRA staff to whom the Director has delegated 

authority.’’ 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–11264 Filed 5–13–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59885; File No. SR-FINRA– 

2009–015] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change Relating to 

Expedited Administration of 

Promissory Note Cases 

May 7, 2009. 

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 April 17, 

2009, 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’’) the proposed 

rule change as described in Items I, II, 

and III below, which items have been 

substantially prepared by FINRA. 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 

FINRA is proposing to adopt Rule 

13806 of the Code of Arbitration 

Procedure for Industry Disputes 

(‘‘Industry Code’’), to establish 

procedures to expedite the 

administration of arbitrations in which 

a member’s only claim is that an 

associated person failed to pay money 

owed on a promissory note; and to 

amend Rules 13214 and 13600 of the 

Industry Code to make conforming 

changes. The text of the proposed rule 

change is available on FINRA’s Web site 

at http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

FINRA is proposing to amend the 

Industry Code to establish new 

procedures to expedite the 

administration of promissory note cases. 

Proposed new Rule 13806 would apply 

to arbitrations solely involving a 

member’s claim that an associated 

person failed to pay money owed on a 

promissory note. In order to proceed 

under the new rule, a claimant would 

not be permitted to include any 

additional allegations in the Statement 

of Claim. FINRA is also proposing to 

amend Rules 13214 and 13600 of the 

Industry Code to make conforming 

changes. 

In the absence of additional 

allegations by members or associated 

persons, promissory note cases involve 

straightforward contracts with few 

documents being entered into evidence. 

The new procedures would streamline 

the process for promissory note cases 

and reduce expenses for the parties 

while maintaining the procedural 

safeguards in the Industry Code for the 

associated person against whom a 

member asserts a claim. 

Specifically, under the proposed 

procedures: 

• Parties would choose a single 

public arbitrator from the roster of 

arbitrators approved to hear statutory 

discrimination claims,3 unless an 

associated person files a counterclaim or 

third party claim of more than $100,000, 

exclusive of interest or expenses, or the 

counterclaim or third party claim is 

unspecified or does not request money 

damages.4 FINRA believes that the 

arbitrators on this roster would be 

especially suited to resolve these 

disputes because of the depth of their 

experience and their familiarity with 

employment law; 

• If the associated person does not 

file an answer, simplified discovery 

procedures would apply 5 and, 

regardless of the amount in controversy, 

the single arbitrator would render an 

award based on the pleadings and other 

materials submitted by the parties. The 

arbitrator would be paid an honorarium 

of $125 for each arbitration resolved in 

this manner;6

• If the associated person files an 

answer (but does not seek any 

additional relief or assert any 

counterclaims or third party claims), 

regular discovery procedures would 

apply 7 and, regardless of the amount in 

controversy, the single arbitrator would 

hold a hearing; and 

• If the associated person files a 

counterclaim or third party claim, then 

regular discovery procedures would 

apply and panel composition would be 

based on the amount of the 

counterclaim or third party claim. If the 

counterclaim and/or third party claim is 

not more than $100,000, exclusive of 

interest and expenses, the Director 8

would appoint a single public arbitrator 

from the roster of arbitrators approved 

to hear statutory discrimination claims. 

If the counterclaim and/or third party 

claim is more than $100,000, exclusive 

of interest and expenses, then the 

Director would appoint a threearbitrator panel. The Director would 

appoint one public arbitrator from the 

roster of arbitrators approved to hear 

statutory discrimination claims who 

would serve as chairperson, one 

arbitrator from the public roster, and 

one arbitrator from the non-public 

roster. If the counterclaim or third party 

claim is filed after a single arbitrator is 

appointed, and a three-arbitrator panel 

is required, the Director would retain 


pwalker on PROD1PC71 with NOTICES