Document ID: SEC-2015-0139-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Exchange, Inc.
Posted Date: 2015-01-23T05:00Z

[Federal Register Volume 80, Number 15 (Friday, January 23, 2015)]
[Notices]
[Pages 3679-3683]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01063]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74074; File No. SR-BATS-2015-04]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify 
the Use of Certain Data Feeds

January 15, 2015.
    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 January 7, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to clarify for Members \3\ and non-
Members the Exchange's use of certain data feeds for order handling and 
execution, order routing, and regulatory compliance. On July 15, 2014, 
the Exchange filed a proposed rule change that described its use of 
data feeds for order handling and execution, order routing, and 
regulatory compliance (the ``Initial Proposal'') with the Securities 
and Exchange Commission (the ``Commission'').\4\ The Exchange submits 
this supplemental filing in order to further clarify for Members and 
non-Members the Exchange's use of certain data feeds and to make one 
modification with respect to the usage of such data feeds as previously 
described.\5\
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    \3\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange. A 
Member will have the status of a ``member'' of the Exchange as that 
term is defined in Section 3(a)(3) of the Act.'' See Exchange Rule 
1.5(n).
    \4\ See Securities Exchange Act Release No. 72685 (July 28, 
2014), 79 FR 44889 (August 1, 2014) (SR-BATS-2014-029). Other 
national securities exchange filed similar proposals. See, e.g., 
Securities Exchange Act Release Nos. 72710 (July 29, 2014), 79 FR 
45511 (August 5, 2014) (SR-NYSE-2014-38), and 72684 (July 28, 2014), 
79 FR44956 (August 1, 2014) (SR-NASDAQ-2014-072).
    \5\ The Exchange understands that other national security 
exchanges will file similar proposed rule changes with the 
Commission to further describe their use of data feeds for order 
handling and execution, order routing, and regulatory compliance.
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    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
Background
    On June 5, 2014, Chair White requested that all national securities 
exchanges develop proposed rule changes to disclose their use of data 
feeds to execute and route orders and comply with regulatory 
requirements.\6\ In addition, on June 20, 2014, the Commission's 
Division of Trading and Markets requested that the Exchange file 
proposed rule changes that disclose its usage of particular market data 
feeds, among other things.\7\ In response to these requests, the 
Exchange filed the Initial Proposal with the Commission on July 15, 
2014.\8\ The Exchange submits this supplemental filing to further 
clarify for Members and non-Members the Exchange's use of certain data 
feeds for order handling and execution, order routing, and regulatory 
compliance.\9\ In addition, the Exchange proposes to modify the way 
that it constructs the Pegged NBBO, as further described below. To 
ensure proper context and a complete filing describing the Exchange's 
procedures in this area, the Exchange has repeated all relevant 
information from the Initial Proposal and supplemented such information 
as necessary.
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    \6\ See Mary Jo White, Chair, Securities and Exchange 
Commission, Speech at Sandler O'Neill & Partners L.P. Global 
Exchange and Brokerage Conference (June 5, 2014).
    \7\ See letter from Stephen Luparello, Director, Division of 
Trading and Markets, Securities and Exchange Commission, to Joe 
Ratterman, Chief Executive Officer, BATS Global Markets, Inc., dated 
June 20, 2014.
    \8\ See supra note 6.
    \9\ See supra note 7.
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Order Handling and Execution
    In order to calculate the national best bid and offer (``NBBO'') in 
its Matching Engine (the ``ME''), the Exchange uses quotes disseminated 
by market centers through proprietary data feeds (generally referred to 
as ``Direct Feeds'') as well as by the Securities Information 
Processors (``SIP''). The ME uses quotes disseminated from SIP feeds 
for the Chicago Stock Exchange, Inc., NYSE MKT LLC and the Financial 
Industry Regulatory Authority's Alternative Display Facility. The ME 
consumes the

[[Page 3680]]

Direct Feeds from every other protected venue, including the Exchange's 
affiliates, BATS Y-Exchange, Inc. (``BYX''), EDGA Exchange, Inc. 
(``EDGA''), and EDGX Exchange, Inc. (``EDGX'').
    The ME will include odd lot quotations in its calculation of the 
NBBO depending on the source of the quotation. Where a protected market 
center aggregates odd lot quotations at a single price level into round 
lot quotations and publishes such aggregated quotations to the SIPs, 
then the ME will include those odd lot quotations in its calculation of 
the NBBO. In addition, where a protected market center aggregates odd 
lot quotations across more than one price level and publishes such 
aggregated quotations to the SIPs, then the ME will include those odd 
lot quotations in its calculation of the NBBO.
    In addition to receiving Direct Feeds and SIP feeds, the ME's 
calculation of the NBBO may be adjusted based on orders sent to other 
venues with protected quotations, execution reports received from those 
venues, and certain orders received by the Exchange (collectively 
``Feedback''). The Exchange does not include its quotes in the 
calculation of the Exchange's NBBO because the system is designed such 
that all incoming orders are separately compared to the Exchange's Best 
Bid or Offer and the Exchange calculated NBBO, which together create a 
complete view of the NBBO, prior to display, execution, or routing.
    Feedback from the receipt of Intermarket Sweep Orders (``ISOs'') 
with a time-in-force of Day (``Day ISOs'') and feedback from the 
Exchange's routing broker/dealer, BATS Trading, Inc., (``BATS 
Trading''), defined respectively as ``Day ISO Feedback'' and ``Router 
Feedback,'' are used to augment the market data received by Direct 
Feeds and the SIP feeds as further described below. The Exchange's ME 
will update the NBBO upon receipt of a Day ISO. When a Day ISO is 
posted on the BATS Book,\10\ the ME uses the receipt of a Day ISO as 
evidence that the protected quotes have been cleared, and the ME does 
not check away markets for equal or better-priced protected quotes.\11\ 
The ME will then display and execute non-ISO orders at the same price 
as the Day ISO.
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    \10\ See Exchange Rule 1.5(e).
    \11\ Pursuant to Regulation NMS, a broker-dealer routing a Day 
ISO is required to simultaneously route one or more additional ISOs, 
as necessary, to execute against the full displayed size of any 
protected quote priced equal to or better than the Day ISO. See also 
Question 5.02 in the ``Division of Trading and Markets, Responses to 
Frequently Asked Questions Concerning Rule 611 and Rule 610 of 
Regulation NMS'' (last updated April 4, 2008) available at http://www.sec.gov/divisions/marketreg/nmsfaq610-11.htm.
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    All Feedback expires as soon as: (i) One (1) second passes; (ii) 
the Exchange receives new quote information; or (iii) the Exchange 
receives updated Feedback information. With the exception of Day ISO 
Feedback, the Exchange currently generates Feedback where an order was 
routed using a routing strategy offered by the Exchange that accesses 
protected quotes of trading venues on the System routing table (``Smart 
Order Routing'').\12\
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    \12\ As 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.
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    The Exchange currently determines the price at which a Pegged 
Order,\13\ Mid-Point Peg Order,\14\ Market Maker Peg Order,\15\ or 
Supplemental Peg Order \16\ is to be pegged based on the Pegged NBBO 
(``PBBO''). The Exchange's Matching Engine calculates the PBBO using 
the Exchange's quotes from the SIP feeds, and quotes disseminated from 
the same Direct Feeds, SIP feeds, and Feedback used by the ME for its 
NBBO calculation. As noted above, the Exchange does not otherwise 
utilize quotations from its local book in calculating the NBBO, and 
thus, the quotation from the SIP has been necessary for pegged orders 
in order to generate a view of the Exchange's quotations.
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    \13\ See Exchange Rule 11.9(c)(8).
    \14\ See Exchange Rule 11.9(c)(9).
    \15\ See Exchange Rule 11.9(c)(16).
    \16\ See Exchange Rule 11.9(c)(19).
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    Earlier this year, the Exchange and its affiliate, 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 EDGA and EDGX (the Exchange, together with BYX, EDGA 
and EDGX, the ``BGM Affiliated Exchanges'').\17\ 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. As previously described by EDGA and EDGX,\18\ 
in addition to information regarding other markets' quotes such 
exchanges currently construct an NBBO for purposes of pegged orders 
using information regarding orders on the applicable exchange's local 
order book (i.e., EDGA constructs a pegged NBBO using information 
regarding orders on the EDGA order book and EDGX constructs a pegged 
NBBO using information regarding orders on the EDGX order book). In 
connection with the technology integration the Exchange similarly 
proposes to use information regarding orders displayed on the BATS Book 
in addition to quotes disseminated from Direct Feeds, SIP Feeds, and 
Feedback in order to construct the PBBO. Thus, as proposed, the 
Exchange would no longer use the Exchange's quotes from the SIP feeds 
in order to construct the PBBO.
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    \17\ See Securities Exchange Act Release No. 71375 (January 23, 
2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013-
039).
    \18\ See Securities Exchange Act Release Nos. 72682 (July 28, 
2014), 79 FR 44938 (August 1, 2014) (SR-EDGA-2014-17); 72683 (July 
28, 2014), 79 FR 44950 (August 1, 2014) (SR-EDGX-2014-20).
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Order Routing
    When the Exchange has a marketable order with instructions from the 
sender that the order is eligible to be routed, and the ME identifies 
that there is no matching price available on the Exchange, but there is 
a matching price represented at another venue that displays protected 
quotes, then the ME will send the order to the Routing Engine (``RE'') 
of BATS Trading.
    In determining whether to route an order and to which venue(s) it 
should be routed, the RE makes its own calculation of the NBBO using 
the Direct Feeds, SIP feeds, and Router Feedback, as described 
below.\19\ The RE will include odd lot quotations in its calculation of 
the NBBO depending on the source of the quotation. Where a protected 
market center aggregates odd lot quotations at a single price level 
into round lot quotations and publishes such aggregated quotations to 
the SIPs, then the RE will include those odd lot quotations in its 
calculation of the NBBO.
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    \19\ The ME and RE consume the same Direct Feeds and SIP feeds.
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    The RE does not utilize Day ISO Feedback in constructing the NBBO; 
however, because all orders initially flow through the ME, to the 
extent Day ISO Feedback has updated the ME's calculation of the NBBO, 
all orders processed by the RE do take Day ISO Feedback into account. 
The RE receives Feedback from all Smart Order Routing strategies.
    There are three types of Router Feedback that contribute to the 
Exchange's calculation of the NBBO:
     Immediate Feedback. Where BATS Trading routes an order to 
a venue with a protected quotation using Smart Order Routing (a 
``Feedback Order''), the number of shares available at that venue is 
immediately decreased by the number of shares routed to the venue at 
the applicable price level.

[[Page 3681]]

     Execution Feedback. Where BATS Trading receives an 
execution report associated with a Feedback Order that indicates that 
the order has fully executed with no remaining shares associated with 
the order, all opposite side quotes on the venue's order book that are 
priced more aggressively than the price at which the order was executed 
will be ignored.
     Cancellation Feedback. Where BATS Trading receives an 
execution report associated with a Feedback Order that indicates that 
the order has not fully executed (either a partial execution or a 
cancellation), all opposite side quotes on the venue's order book that 
are priced equal to or more aggressively than the limit price for the 
order will be ignored.
    All Feedback expires as soon as: (i) One (1) second passes; (ii) 
the Exchange receives new quote information; or (iii) the Exchange 
receives updated Feedback information.
Regulatory Compliance
    Locked or Crossed Markets. The ME determines whether the display of 
an order would lock or cross the market. At the time an order is 
entered into the ME, the ME will establish, based upon its calculation 
of the NBBO from Direct Feeds, SIP feeds and Feedback, whether the 
order will lock or cross the prevailing NBBO for a security. In the 
event that the order would produce a locking or crossing condition, the 
ME will cancel the order, re-price \20\ the order, or route the order 
based on the Member's instructions. Two exceptions to this logic are 
Day ISOs and declarations of self-help.
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    \20\ See Rule 11.9(g).
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    Pursuant to Regulation NMS, when an Exchange receives a Day ISO, 
the sender of the ISO retains the responsibility to comply with 
applicable rules relating to locked and crossed markets.\21\ In such 
case, the Exchange is obligated only to display a Day ISO order at the 
Member's price, even if such price would lock or cross the market.\22\
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    \21\ See supra note 13.
    \22\ See supra note 13.
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    Declarations of self-help occur when the RE detects that an 
exchange displaying protected quotes is slow, as defined in Regulation 
NMS, or non-responsive to the Exchange's routed orders. In this 
circumstance, according to Rule 611(b) of Regulation NMS, the Exchange 
may display a quotation that may lock or cross the market that the 
Exchange invoked self-help against. \23\ The Exchange may also declare 
self-help where another exchange's SIP quotes are slow or non-
responsive resulting in a locked or crossed market. Once the Exchange 
declares self-help, the ME and RE will ignore the quotes generated from 
the self-helped market in their calculations of the NBBO for execution 
and routing determinations in compliance with Regulation NMS. The 
Exchange will also disable all routing to the self-helped market. The 
ME and RE will continue to consume the self-helped market center's 
quotes; however, in order to immediately include the quote in the NBBO 
calculation and enable routing once self-help is revoked.
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    \23\ See also Question 5.03 in the ``Division of Trading and 
Markets, Responses to Frequently Asked Questions Concerning Rule 611 
and Rule 610 of Regulation NMS'' (last updated April 4, 2008) 
available at http://www.sec.gov/divisions/marketreg/nmsfaq610-11.htm.
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    Trade-Through Rule. Pursuant to Rule 611 of Regulation NMS, the 
Exchange shall establish, maintain, and enforce written policies and 
procedures that are reasonably designed to prevent trade-throughs on 
trading centers of protected quotations in NMS stocks that do not fall 
within a valid exception and, if relying on such an exception, that are 
reasonably designed to ensure compliance with the terms of the 
exception. The ME does not permit an execution on the Exchange if there 
are better-priced protected quotations displayed in the market unless 
the order is an ISO. At the time an order is entered into the ME, the 
ME uses the view of the NBBO as described above. If the NBBO is priced 
better than what is resident on the Exchange, the Exchange does not 
match such order on the BATS Book, and based on the Member's 
instructions, the ME cancels the order, re-prices the order or routes 
the order.
    Regulation SHO. The Exchange cannot execute a Short Sale Order \24\ 
equal to or below the current National Best Bid (``NBB'') when a short 
sale price restriction is in effect pursuant to Rule 201 of Regulation 
SHO (``Short Sale Circuit Breaker'').\25\ When a Short Sale Circuit 
Breaker is in effect, the Exchange utilizes information received from 
Direct Feeds, SIP feeds, and Feedback, and a view of the BATS Book to 
assess its compliance with Rule 201 of Regulation SHO. The primary 
difference between the NBBO used for compliance with Rule 201 of 
Regulation SHO and other constructions of the NBBO, however, is that 
the Exchange includes market centers against which it has declared 
self-help in its view of the NBBO.
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    \24\ See Exchange Rule 11.19.
    \25\ 17 CFR 242.200(g); 17 CFR 242.201. On February 26, 2010, 
the Commission adopted amendments to Regulation SHO under the Act in 
the form of Rule 201, pursuant to which, among other things, short 
sale orders in covered securities generally cannot be executed or 
displayed by a trading center, such as the Exchange, at a price that 
is at or below the current NBB when a Short Sale Circuit Breaker is 
in effect for the covered security. See Securities Exchange Act 
Release No. 61595 (February 26, 2010), 75 FR 11232 (March 10, 2010). 
In connection with the adoption of Rule 201, Rule 200(g) of 
Regulation SHO was also amended to include a ``short exempt'' 
marking requirement. See also Securities Exchange Act Release No. 
63247 (November 4, 2010), 75 FR 68702 (November 9, 2010) (extending 
the compliance date for Rules 201 and 200(g) to February 28, 2011). 
See also Division of Trading & Markets: Responses to Frequently 
Asked Questions Concerning Rule 201 of Regulation SHO, www.sec.gov/divisions/marketreg/rule201faq.htm.
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    Latent or Inaccurate Direct Feeds. Where the Exchange's systems 
detect problems with one or more Direct Feeds, the Exchange will 
immediately fail over to the SIP feed to calculate the NBBO for the 
market center(s) where the applicable Direct Feed is experiencing 
issues. Problems that lead to immediate fail over to the SIP feed may 
include a significant loss of information (i.e., packet loss) or 
identifiable latency, among other things. The Exchange can also 
manually fail over to the SIP feed in lieu of Direct Feed data upon 
identification by a market center of an issue with its Direct Feed(s).
 2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \26\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \27\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest. The Exchange does not 
believe that this proposal will permit unfair discrimination among 
customers, brokers, or dealers because it will be available to all 
Users.
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    \26\ 15 U.S.C. 78f(b).
    \27\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal to describe the Exchange's 
use of data feeds removes impediments to and perfects the mechanism of 
a free and open market and protects investors and the public interest 
because it provides additional specificity and transparency. The 
Exchange's proposal will enable investors to better assess the quality 
of the Exchange's execution and routing services. Other than the 
proposed modification to the construction of the PBBO, the proposal 
does not change the operation of the Exchange or its use of data feeds; 
rather

[[Page 3682]]

it describes how, and for what purposes, the Exchange uses the quotes 
disseminated from data feeds to calculate the NBBO for a security for 
purposes of Regulation NMS, Regulation SHO and various order types that 
update based on changes to the applicable NBBO. The Exchange believes 
the additional transparency into the operation of the Exchange as 
described in the proposal will remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, protect investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. On the contrary, the Exchange believes the 
proposal would enhance competition because describing the Exchange's 
use of data feeds enhances transparency and enables investors to better 
assess the quality of the Exchange's execution and routing services.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange filed the Initial Proposal with the Commission on July 
15, 2014, and it was published for comment in the Federal Register on 
August 1, 2014. The Commission received three (3) written comment 
letters in response to the Initial Proposal.\28\ In addition, one (1) 
comment letter was submitted to the Commission commenting on a 
companion EDGX filing.\29\ The Exchange believes that the comments 
raised in these letters are either not directly related to the 
Exchange's proposal but instead raise larger market structure issues or 
are adequately addressed in this proposal, particularly as it relates 
to the Commission's request to describe the Exchange's use of data 
feeds for order handling and execution, order routing, and regulatory 
compliance. The Exchange further notes that the comments received 
regarding the Exchange's calculation of the PBBO are no longer 
applicable based on the proposed change described above related to the 
technology integration of the BGM Affiliated Exchanges.
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    \28\ See Letter from R.T. Leuchtkafer to the Commission, dated 
August 22, 2014 (SR-BATS-2014-029) (discussing the Exchange's market 
data feed practices). See Letter from Eric Scott Hunsader, Nanex, 
LLC, to the Commission, dated August 22, 2014 (SR-BATS-2014-029) 
(discussing the Exchange's use of NBBO as a defined term). See 
Letter from Donald Bollerman, Head of Market Operations, IEX ATS, to 
the Commission, dated September 25, 2014 (SR-BATS-2014-029) (SR-BYX-
2014-012) (discussing the Exchange's calculation of the PBBO).
    \29\ See Letter from Suzanne Hamlet Shatto to the Commission, 
dated August 19, 2014 (SR-EDGX-2014-20) (discussing Dodd Frank 
principles).
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III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \30\ and Rule 19b-4(f)(6) 
thereunder.\31\
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    \30\ 15 U.S.C. 78s(b)(3)(A).
    \31\ 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, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \32\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \33\ 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. The Exchange 
stated that waiver of the operative delay will allow the Exchange to 
immediately adopt rule text consistent with the Initial Proposal and 
offer certain functionality that is already available on EDGA and EDGX 
with respect to the use of information regarding orders on the 
applicable exchange's order book to construct the PBBO. In addition, 
the Exchange stated that waiver of the operative delay will allow it to 
continue to move towards a complete technology integration of the BGM 
Affiliated Exchanges to ensure stability of the System. For these 
reasons, the Commission believes the waiver of the operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the operative delay and 
designates the proposal operative upon filing.\34\
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    \32\ 17 CFR 240.19b-4(f)(6).
    \33\ 17 CFR 240.19b-4(f)(6)(iii).
    \34\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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-2015-04 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-2015-04. 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

[[Page 3683]]

10:00 a.m. and 3:00 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-2015-04 and should be 
submitted on or before February 13, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\35\
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    \35\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-01063 Filed 1-22-15; 8:45 am]
BILLING CODE 8011-01-P