Document ID: SEC-2015-0161-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BATS Y-Exchange, Inc.
Posted Date: 2015-01-27T05:00Z

[Federal Register Volume 80, Number 17 (Tuesday, January 27, 2015)]
[Notices]
[Pages 4324-4325]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01425]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74115; 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 22, 2015.
    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 and has been extended once; \3\ both 
the pilot Program and exemption are scheduled to expire on January 31, 
2015.
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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-
BYX-2012-019).
    \3\ See Securities Exchange Act Release No. 71249 (January 7, 
2014), 79 FR 2229 (January 13, 2012) (SR-BYX-2014-001) (extending 
the pilot period); Securities Exchange Act Release No. 71250 
(January 7, 2014), 79 FR 2234 (January 13, 2012) (Order Granting an 
Extension to Limited Exemption From Rule 612(c) of Regulation NMS in 
Connection With the Exchange's Retail Price Improvement Program).
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    The Exchange now seeks to extend the exemption until January 31, 
2016.\4\ The Exchange's request was made in conjunction with an 
immediately effective filing that extends the operation of the Program 
until January

[[Page 4325]]

31, 2016.\5\ 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.\6\ 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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    \4\ See letter from Eric Swanson, Senior Vice President and 
General Counsel, BYX, to Elizabeth M. Murphy, Secretary, Commission, 
dated January 16, 2015.
    \5\ See SR-BYX-2015-05.
    \6\ 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, until 
January 31, 2016.
    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 Securities Exchange Act of 1934. Responsibility 
for compliance with any applicable provisions of the federal securities 
laws must rest with the persons relying on the exemption that is the 
subject of this Order.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(83).

Brent J. Fields,
Secretary.
[FR Doc. 2015-01425 Filed 1-26-15; 8:45 am]
BILLING CODE 8011-01-P