Document ID: SEC-2014-0053-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Y-Exchange, Inc.
Posted Date: 2014-01-13T05:00Z

[Federal Register Volume 79, Number 8 (Monday, January 13, 2014)]
[Notices]
[Page 2234]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00341]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71250; File No. SR-BYX-2012-019]

Self-Regulatory Organization; BATS Y-Exchange, Inc.; Order 
Granting an Extension to Limited Exemption From Rule 612(c) of 
Regulation NMS in Connection With the Exchange's Retail Price 
Improvement Program

January 7, 2014.
    On November 27, 2012, the Securities and Exchange Commission 
(``Commission'') issued an order pursuant to its authority under Rule 
612(c) of Regulation NMS (``Sub-Penny Rule) \1\ that granted the BATS 
Y-Exchange, Inc. (``BYX'' or the ``Exchange'') a limited exemption from 
the Sub-Penny Rule in connection with the operation of the Exchange's 
Retail Price Improvement (``RPI'') Program (the ``Program''). The 
limited exemption was granted concurrently with the Commission's 
approval of the Exchange's proposal to adopt the Program for a one-year 
pilot term.\2\ The exemption was granted coterminous with the 
effectiveness of the pilot Program, which is scheduled to expire on 
January 11, 2014.
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    \1\ 17 CFR 242.612(c).
    \2\ See Securities Exchange Act Release No. 68303 (November 27, 
2012), 77 FR 71652 (December 3, 2012) (``RPI Approval Order'') (SR-
BXY-2012-019).
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    The Exchange now seeks to extend to exemption until January 31, 
2015.\3\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
until January 31, 2015.\4\ In its request to extend the exemption, the 
Exchange notes that the Program was implemented gradually over time. 
Accordingly, the Exchange has asked for additional time to allow itself 
and the Commission to analyze data concerning the Program, which the 
Exchange committed to provide to the Commission.\5\ For this reason and 
the reasons stated in the Order originally granting the limited 
exemption, the Commission finds that extending the exemption, pursuant 
to its authority under Rule 612(c) of Regulation NMS, is appropriate in 
the public interest and consistent with the protection of investors.
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    \3\ See letter from Eric Swanson, Senior Vice President and 
General Counsel, BYX, to Elizabeth M. Murphy, Secretary, Commission, 
dated January 3, 2014.
    \4\ See SR-BYX-2014-001.
    \5\ See RPI Approval Order, supra note 2, at 77 FR at 71657.
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    Therefore, it is hereby ordered, that, pursuant to Rule 612(c) of 
Regulation NMS, the Exchange is granted a limited exemption from Rule 
612(c) of Regulation NMS that allows it to accept and rank orders 
priced equal to or greater than $1.00 per share in increments of 
$0.001, in connection with the operation of its RPI Program.
    The limited and temporary exemption extended by this Order is 
subject to modification or revocation if at any time the Commission 
determines that such action is necessary or appropriate in furtherance 
of the purposes of the Exchange Act. Responsibility for compliance with 
any applicable provisions of the federal securities laws must rest with 
the persons relying on the exemptions that are the subject of this 
Order.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(83).
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Kevin M O'Neill,
Deputy Secretary.
[FR Doc. 2014-00341 Filed 1-10-14; 8:45 am]
BILLING CODE 8011-01-P