Federal Register, Volume 76 Issue 176 (Monday, September 12, 2011)

[Federal Register Volume 76, Number 176 (Monday, September 12, 2011)]
[Notices]
[Pages 56249-56254]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23170]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65266; File No. SR-BATS-2011-032]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing of Proposed Rule Change by BATS Exchange, Inc. To Adopt Rules
Applicable to Auctions Conducted by the Exchange for Exchange-Listed
Securities

September 6, 2011.
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 August 22, 2011, 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 Exchange. 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 proposes to adopt rules governing auctions conducted
on the Exchange for securities listed on the Exchange.\3\
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\3\ The Commission notes that the Exchange separately proposed,
and the Commission approved, rules for the qualification, listing
and delisting of companies on the Exchange. See Securities Exchange
Act Release No. 34-65225 (August 30, 2011), 76 FR 55148 (September
6, 2011) (SR-BATS-2011-018).
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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.

[[Page 56250]]

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 is proposing to adopt rules to govern auctions
conducted on the Exchange for securities listed on the Exchange
(``Exchange Auctions'').
Organization
The Exchange proposes adoption of definitions to govern Exchange
Auctions in paragraph (a) of new Rule 11.23. Proposed paragraph (b) of
Rule 11.23 sets forth the process for conducting an opening auction on
the Exchange (``Opening Auction'') and determining an official opening
price for dissemination to the consolidated tape (``BATS Official
Opening Price''). Proposed paragraph (c) applies to the process for
conducting a closing auction on the Exchange (``Closing Auction'') and
determining an official closing price for dissemination to the
consolidated tape (``BATS Official Closing Price''). Finally, proposed
paragraph (d) describes the Exchange's process for conducting an
auction in the event of an initial public offering (``IPO'') or a halt
of trading in the security (``IPO Auction'' or ``Halt Auction'',
respectively). Each of the Opening Auction, Closing Auction, IPO
Auction and Halt Auction operated by BATS will be a single-price Dutch
auction to match buy and sell orders at the price at which the most
shares would execute.
BATS Auction Feed
In addition to the adoption of Rule 11.23, described in greater
detail below, the Exchange proposes to add new paragraph (i) to Rule
11.22 to describe a new data feed that will be offered by the Exchange
in connection with auctions conducted by the Exchange, the ``BATS
Auction Feed.'' The BATS Auction Feed will be available to Exchange
data recipients \4\ without charge.
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\4\ Exchange data recipients include Members of the Exchange as
well as non-Members that have entered into an agreement with the
Exchange that permits them to receive Exchange data.
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The BATS Auction Feed will be available to all Exchange data
recipients equally, and will offer all firms with uncompressed real-
time data regarding the current status of price and size information
related to auctions conducted by the Exchange. The Exchange will make
the BATS Auction Feed available to all market participants via
subscription through an established connection to the Exchange through
extranets, direct connection, and Internet-based virtual private
networks.
The BATS Auction Feed will contain the following data elements:
Time stamp. The time of the message.
Reference Price. The Reference Price will be the price
within the Reference Price Range that maximizes the number of Eligible
Auction Order (as defined below) shares associated with the lesser of
the Reference Buy Shares and the Reference Sell Shares as determined at
each price level within the Reference Price Range, that minimizes the
absolute difference between Reference Buy Shares and Reference Sell
Shares, and minimizes the distance from the Volume Based Tie Breaker
(as defined below).
Reference Price Range. The Reference Price Range will be
the range from the best bid on the BATS Book (the ``ZBB'') to the best
offer on the BATS Book (the ``ZBO'') for a particular security. In the
event that there is either no ZBB or ZBO for the security, the national
best bid or offer (``NBBO'') will be used if there is at least one
limit order on either the Continuous Book or the Auction Book. In the
event that there is also either no national best bid (``NBB'') or
national best offer (``NBO'') for the security or no limit orders on
the Continuous Book and Auction Book, the price of the ``Final Last
Sale Eligible Trade'' (as defined below) will be used.
Indicative Price. The Indicative Price will be the price
at which the most shares from the Auction Book \5\ and the Continuous
Book \6\ would match.
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\5\ The term ``Auction Book'' refers to the book of Eligible
Auction Orders available on the BATS Book.
\6\ The term ``Continuous Book'' refers to all orders available
on the Exchange that are not Eligible Auction Orders.
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Auction Only Price. The Auction Only Price will be the
price at which the most shares from the Auction Book would match. In
the event of a volume based tie at multiple price levels, the Opening
Auction price will be the price closest to the Volume Based Tie
Breaker.
Reference Buy Shares. Reference Buy Shares will be the
total number of shares associated with buy-side Eligible Auction Orders
that are priced equal to or greater than the Reference Price.
Reference Sell Shares. Reference Sell Shares will be the
total number of shares associated with sell-side Eligible Auction
Orders that are priced equal to or less than the Reference Price.
For purposes of the BATS Auction Feed, and the auction processes of
the Exchange generally, the term ``Final Last Sale Eligible Trade''
shall mean the last trade occurring during Regular Trading Hours on the
Exchange if the trade was executed within the last one second prior to
either the Closing Auction or, for Halt Auctions, trading in the
security being halted. Where the trade was not executed within the last
one second, the last trade reported to the consolidated tape received
by BATS during Regular Trading Hours and, where applicable, prior to
trading in the security being halted will be used. If there is no
qualifying trade for the current day, the BATS Official Closing Price
(as defined below) from the previous trading day will be used.
By making the BATS Pricing Feed data available, the Exchange
enhances market transparency and fosters competition among orders and
markets. At this time, the Exchange does not have plans to charge any
fee associated with the receipt of the BATS Auction Feed.\7\ Should the
Exchange determine to charge fees associated with the BATS Auction
Feed, the Exchange will submit a proposed rule change to the Commission
in order to implement those fees.
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\7\ The Exchange does not charge directly for the majority of
the data feeds that it offers, nor will the Exchange charge for the
BATS Auction Feed. The Exchange notes that it does charge for ports
used for receipt of data from the Exchange in order to offset
certain infrastructure costs. These fees apply to ports associated
with receipt of all of the Data Feeds except for Multicast PITCH,
recipients of which are provided with 12 pairs of the requisite
ports free of charge. See Securities Exchange Act Release No. 60586
(August 28, 2009), 74 FR 46256 (September 8, 2009) (SR-BATS-2009-
026) (order approving proposal to impose fees for ports used for
order entry and receipt of market data); see also Securities
Exchange Act Release No. 63857 (February 7, 2011), 76 FR 7891
(February 11, 2011) (SR-BATS-2011-004) (notice of filing and
immediate effectiveness of proposed rule change related to BATS
Exchange fees, including modification of port fees).
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Order Types To Participate in Auctions
The Exchange proposes to offer the following order types in
connection with BATS Opening Auctions:

[[Page 56251]]

A ``Market-On-Open'' or ``MOO'' order, which will be a
BATS market order that is designated for execution only in the Opening
Auction;
A ``Limit-On-Open'' or ``LOO'' order, which will be a BATS
limit order that is designated for execution only in the Opening
Auction; and
A ``Late-Limit-On-Open'' or ``LLOO'' order, which will be
a BATS limit order that is designated for execution only in the Opening
Auction. To the extent a LLOO bid or offer received by the Exchange has
a limit price that is more aggressive than the ZBB or ZBO, the price of
such bid or offer is adjusted to be equal to the ZBB or ZBO,
respectively, at the time of receipt by the Exchange. Where the ZBB or
ZBO becomes more aggressive, the limit price of the LLOO bid or offer
will be adjusted to the more aggressive price, only to the extent that
the more aggressive price is not more aggressive than the original User
\8\ entered limit price. The limit price will never be adjusted to a
less aggressive price. In the event that there is no best bid or offer
on the Exchange (``ZBBO''), the NBBO will be used to constrain the
limit price. If there is also no NBBO, the LLOO will assume its entered
limit price.
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\8\ A ``User'' is defined in BATS Rule 1.5(cc) as any member or
sponsored participant of the Exchange who is authorized to obtain
access to the System.
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The Exchange proposes to offer the following order types in
connection with BATS Closing Auctions, each of which mirrors an order
type available for the Opening Auction:
A ``Market-On-Close'' or ``MOC'' order, which will be a
BATS market order that is designated for execution only in the Closing
Auction;
A ``Limit-On-Close'' or ``LOC'' order, which will be a
BATS limit order that is designated for execution only in the Closing
Auction;
A ``Late-Limit-On-Close'' or ``LLOC'', which will be a
BATS limit order that is designated for execution only in the Closing
Auction. To the extent a LLOC bid or offer received by the Exchange has
a limit price that is more aggressive than the ZBB or ZBO, the price of
such bid or offer is adjusted to be equal to the ZBB or ZBO,
respectively, at the time of receipt by the Exchange. Where the ZBB or
ZBO becomes more aggressive, the limit price of the LLOC bid or offer
will be adjusted to the more aggressive price, only to the extent that
the more aggressive price is not more aggressive than the original User
entered limit price. The limit price will never be adjusted to a less
aggressive price. In the event that there is no ZBBO, the NBBO will be
used to constrain the limit price. If there is also no NBBO, the LLOC
will assume its entered limit price.
In addition to the order types described above, the Exchange
proposes to offer a ``Regular Hours Only'' or ``RHO'' order, which will
be a BATS order that is designated for execution only during Regular
Trading Hours,\9\ which includes the Opening Auction, the Closing
Auction, and IPO/Halt Auctions. A RHO order, if not executed in an
applicable auction can be executed within a BATS Auction or on the
Exchange's book outside of a BATS Auction but will not be subject to
execution outside of Regular Trading Hours.
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\9\ As defined in Rule 1.5(w), ``Regular Trading Hours'' is the
time between 9:30 a.m. and 4 p.m. Eastern Time.
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Opening Auction
Order Entry and Cancellation Before Opening Auction
As proposed, the Exchange will allow Users to submit orders to the
Exchange starting at 8 a.m., the beginning of the Pre-Opening
Session.\10\ Any Eligible Auction Orders (as defined below) designated
for the Opening Auction will be queued until 9:30 a.m. at which time
they will be eligible to be executed in the Opening Auction. An
Eligible Auction Order, as proposed, would include any MOO, LOO, LLOO,
MOC, LOC, or LLOC order that is entered in compliance with its
respective cutoff for an Opening or Closing Auction, any RHO order
prior to the Opening Auction, and any limit or market order not
designated to exclusively participate in the Opening or Closing Auction
entered during the Quote-Only Period of an IPO or Halt Auction.
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\10\ As defined in Rule 1.5(r), the ``Pre-Opening Session'' is
the time between 8 a.m. and 9:30 a.m. Eastern Time.
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Users will also be allowed to submit LOO and MOO orders until 9:28
a.m., at which point any additional LOO and MOO orders submitted to the
Exchange will be rejected. RHO market orders will also be rejected
between 9:28 a.m. and 9:30 a.m. Users may submit LLOO orders between
9:28 a.m. and 9:30 a.m. Any LLOO orders submitted before 9:28 a.m. or
after 9:30 a.m. will be rejected. RHO limit orders submitted between
9:28 a.m. and 9:30 a.m. will be treated as LLOO orders until the
Opening Auction has concluded. Eligible Auction Orders designated for
the Opening Auction may not be cancelled or modified between 9:28 a.m.
and 9:30 a.m. Orders eligible for execution in the Pre-Opening Session
may be cancelled or modified at any time prior to execution.
Opening Auction Process for BATS Listed Securities
The Exchange will conduct an Opening Auction for all BATS listed
securities. Beginning at 9:28 a.m. and updated every five seconds
thereafter, the Reference Price, Indicative Price, Auction Only Price,
Reference Buy Shares, and Reference Sell Shares associated with the
Opening Auction will be disseminated via electronic means.
Auctions operated by the Exchange will utilize both a Collar Price
Range and a Volume Based Tie Breaker in certain situations. The Collar
Price Range will be the range from 10% of the Volume Based Tie Breaker
below the ZBB to 10% of the Volume Based Tie Breaker above the ZBO. In
the event that there is either no ZBB or ZBO for the security, the
Collar Price Range will be the range from 10% of the Volume Based Tie
Breaker below the NBB to 10% of the Volume Based Tie Breaker above the
NBO if there is at least one limit order on either the Continuous Book
or the Auction Book. In the event that there is also either no NBB or
NBO for the security or no limit orders on the Continuous Book and the
Auction Book, the range from 10% above and below the price of the Final
Last Sale Eligible Trade will be used. The term Volume Based Tie
Breaker will mean the midpoint of the ZBBO for a particular security.
In the event that there is either no ZBB or ZBO for the security, the
NBBO will be used if there is at least one limit order on either the
Continuous Book or the Auction Book. In the event that there is also
either no NBB or NBO for the security or no limit orders on the
Continuous Book and the Auction Book, the price of the Final Last Sale
Eligible Trade will be used.
The Opening Auction price will be established by determining the
price level within the Collar Price Range that maximizes the number of
shares executed between the Continuous Book and Auction Book in the
Opening Auction. In the event of a volume based tie at multiple price
levels, the Opening Auction price will be the price closest to the
Volume Based Tie Breaker. In the event that at the time of the Opening
Auction there are no limit orders on both the Continuous Book and the
Auction Book, the Opening Auction will occur at the price of the Final
Last Sale Eligible Trade. The Opening Auction price will be the BATS
Official Opening Price. In the event that there is no Opening Auction
for an issue, the BATS Official Opening Price will be the price

[[Page 56252]]

of the Final Last Sale Eligible Trade, which will be the previous BATS
Official Closing Price.
MOO and market RHO orders have priority over all other Opening
Auction Eligible Orders. To the extent there is executable contra side
interest, such MOO and market RHO orders will execute at the BATS
Official Opening Price in accordance with time priority. After the
execution of all MOO and market RHO orders, the remaining orders priced
at or more aggressively than the BATS Official Opening Price on the
Auction Book and the Continuous Book will be executed on the basis of
price priority. Equally priced trading interest shall execute in time
priority in the following order: (i) The displayed portion of limit
orders, LOO orders, LLOO orders, and limit RHO orders (all such orders
to have equal priority after execution of all MOO and market RHO
orders); (ii) non-displayed orders; and (iii) the reserve portion of
Limit Orders.
Transition to Regular Trading Hours
Limit order shares on the Continuous Book that are not executed in
the Opening Auction will remain on the Continuous Book during Regular
Trading Hours, subject to the User's instructions. RHO order shares
that are not executed in the Opening Auction will be added to the
Continuous Book at the conclusion of the Opening Auction, subject to
the User's instructions. LOO, LLOO, and MOO orders that are not
executed in the Opening Auction will be cancelled immediately at the
conclusion of the Opening Auction.
Closing Auction
Order Entry and Cancellation Before Closing Auction
As proposed, Users may submit orders to the Exchange starting at 8
a.m., the beginning of the Pre-Opening Session. Any Eligible Auction
Orders designated for the Closing Auction will be queued until 4 p.m.
at which time they will be eligible to be executed in the Closing
Auction. Users may submit LOC and MOC orders until 3:55 p.m., at which
point any additional LOC and MOC orders submitted will be rejected.
Unlike in the Opening Auction, User submitted Market RHO orders will be
accepted immediately prior to the Closing Auction. Users may submit
LLOC orders between 3:55 p.m. and 4 p.m. Any LLOC orders submitted
before 3:55 p.m. or after 4 p.m. will be rejected.
Eligible Auction Orders designated for the Closing Auction may not
be cancelled between 3:55 p.m. and 4 p.m. Orders eligible for execution
during Regular Trading Hours may be cancelled at any time prior to
execution.
Closing Auction Process for BATS Listed Securities
The Exchange will conduct a Closing Auction for all BATS listed
securities. Beginning at 3:55 p.m. and updated every five seconds
thereafter, the Reference Price, Indicative Price, Auction Only Price,
Reference Buy Shares, and Reference Sell Shares associated with the
Closing Auction will be disseminated via electronic means. The Closing
Auction price will be established by determining the price level within
the Collar Price Range that maximizes the number of shares executed
between the Continuous Book and Auction Book in the Closing Auction. In
the event of a volume based tie at multiple price levels, the Closing
Auction price will be the price closest to the Volume Based Tie
Breaker. In the event that at the time of the Closing Auction there are
no limit orders on both the Continuous Book and the Auction Book, the
Closing Auction will occur at the price of the Final Last Sale Eligible
Trade. The Closing Auction price will be the BATS Official Closing
Price. In the event that there is no Closing Auction for an issue, the
BATS Official Closing Price will be the price of the Final Last Sale
Eligible Trade.
MOC orders have priority over all other Closing Auction Eligible
Orders. To the extent there is executable contra side interest, such
MOC orders will be executed at the BATS Official Closing Price
according to time priority. After the execution of all MOC orders, the
remaining orders priced at or more aggressively than the BATS Official
Closing Price on the Auction Book and the Continuous Book will be
executed on the basis of price priority. Equally priced trading
interest shall execute in time priority in the following order: (i) The
displayed portion of limit orders, LOC orders, LLOC orders, and limit
RHO orders (all such orders to have equal priority after execution of
all MOC orders); (ii) non-displayed orders; and (iii) the reserve
portion of Limit Orders.
Transition to After Hours Trading Session
Limit Order shares on the Continuous Book that are not executed in
the Closing Auction will remain on the Continuous Book during the After
Hours Trading Session, subject to the User's instructions. RHO order
shares not executed in the Closing Auction will be cancelled at the
conclusion of the Closing Auction. LOC, LLOC, and MOC orders that are
not executed in the Closing Auction will be cancelled immediately at
the conclusion of the Closing Auction.
IPO and Halt Auctions
For trading in a BATS listed security in an IPO or following a
trading halt in that security, the Exchange will conduct an IPO or Halt
Auction, as described below.
Order Entry and Cancellation Before an IPO or Halt Auction
The Quote-Only Period is a period of time prior to an IPO or Halt
Auction during which the Exchange will permit Users to submit orders
but the Exchange will not execute any transactions in the applicable
security (i.e., there are no Continuous Book executions occurring while
orders are collected). The Quote-Only Period with respect to a Halt
Auction shall commence five (5) minutes prior to such Halt Auction. The
Quote-Only Period with respect to an IPO Auction shall commence fifteen
(15) minutes plus a short random period prior to such IPO Auction. The
Exchange has proposed a short random period of time prior to an IPO
Auction to provide a protective mechanism against potential
manipulation of the IPO price through orders entered for participation
in the IPO Auction but then withdrawn immediately prior to the
commencement of the auction process. There are no IPO or Halt Auction
specific order types. Any Eligible Auction Orders associated with an
IPO or Halt Auction will be queued until the end of the Quote-Only
Period at which time they will be eligible to be executed in the
associated auction. All orders associated with IPO or Halt Auctions
must be received prior to the end of the Quote-Only Period in order to
participate in the auction.
Eligible Auction Orders associated with an IPO or Halt Auction may
be cancelled at any time prior to execution.
IPO and Halt Auction Process
Coinciding with the beginning of the quotation only period for a
security and updated every five seconds thereafter, the Reference
Price, Indicative Price, Auction Only Price, Reference Buy Shares, and
Reference Sell Shares associated with the Halt Auction will be
disseminated via electronic means.
The Quote-Only Period may be extended where: (i) There are
unmatched market orders on the Auction Book associated with the
auction; (ii) in an IPO Auction, the underwriter requests an extension;
or (iii) where the Indicative Price moves the greater of 10% or fifty
(50) cents in the fifteen (15) seconds prior to the

[[Page 56253]]

auction. The Exchange will typically extend the Quote-Only Period in
five minute intervals, however, reserves the right to vary this
interval and/or continue to extend the Quote-Only Period depending on
the nature and magnitude of the reason for the extension.
Orders will be executed at the price that maximizes the number of
shares executed in the auction. In the event of a volume based tie at
multiple price levels, the price level closest to the issuing price
will be used for IPO Auctions and the price level closest to the Final
Last Sale Eligible Trade will be used for Halt Auctions. In the event
that there are no limit orders among the Eligible Auction Orders for a
Halt Auction, the Halt Auction will occur at the price of the Final
Last Sale Eligible Trade. In the event that there are no limit orders
among the Eligible Auction Orders for an IPO Auction, the IPO Auction
will occur at the issuing price. The IPO Auction price will be BATS
Official IPO Opening Price.
If any orders are not executed in their entirety during the IPO or
Halt Auction, then the remaining shares from such orders shall be
executed in accordance with BATS Rule 11.13 after the completion of the
Halt Auction. After the completion of the IPO or Halt Auction, the
Exchange will open for trading in the security in accordance with
Chapter 11 of BATS Rules.
Whenever, in the judgment of the Exchange, the interests of a fair
and orderly market so require, the Exchange may adjust the timing of or
suspend the auctions set forth in this Rule with prior notice to
Members. For purposes of Rule 611(b)(3) of Regulation NMS, orders
executed pursuant to the Opening Auction, Closing Auction, and Halt
Auction may trade-through any other Trading Center's Manual or
Protected Quotations if the transaction that constituted the trade-
through was a single-priced opening, reopening, or closing transaction
by the trading center.
The Exchange also proposes language for Rule 11.23 to make clear
that all references including a.m. and p.m. times shall refer to times
in Eastern Time.
2. Statutory Basis
Approval of the rule changes proposed in this submission 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(b) of
the Act.\11\ In particular, the proposed change is consistent with
Section 6(b)(5) of the Act,\12\ because it would promote just and
equitable principles of trade, 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. The Exchange
believes that operation of an Exchange Auction for securities listed on
the Exchange will assist in the price discovery process and help to
ensure a fair and orderly market for securities listed on the Exchange.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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For the reasons described above, the Exchange's proposal is also
integral to its adoption of rules applicable to the qualification,
listing and delisting of companies on the Exchange.\13\ The Exchange's
proposal to operate as a primary listings market, including the
adoption of rules to conduct Exchange Auctions, comes at a time when
there are two dominant primary listing venues, the New York Stock
Exchange LLC (``NYSE'') and the NASDAQ Stock Market LLC (``Nasdaq'').
The Exchange believes that the proposed change would increase
competition by providing an alternative to Nasdaq and NYSE for a
company seeking to list its securities and for such securities to be
traded in an orderly fashion at the open and close of trading, as well
as in the context of an IPO or halted trading in the security.
Accordingly, the Exchange believes that the proposal will allow the
Exchange to provide companies with another option for raising capital
in the public markets, thereby promoting the aforementioned principles
discussed in Section 6(b)(5) of the Act.\14\ For the reasons described
above, the proposed rule change is also designed to support the
principles of Section 11A(a)(1) \15\ of the Act in that it seeks to
assure fair competition among brokers and dealers and among exchange
markets.
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\13\ See supra note 3.
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78k-1(a)(1).
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(B) Self-Regulatory Organization's Statement on 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

The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Changes and Timing for
Commission Action

Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will: (a) By order approve
or disapprove such proposed rule change, or (b) institute proceedings
to determine whether the proposed rule change should be disapproved.

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 [email protected]. Please include
File No. SR-BATS-2011-032 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-2011-032. 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 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
a.m. and 3 p.m. Copies of such filing

[[Page 56254]]

will also 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 No. SR-
BATS-2011-032 and should be submitted on or before October 3, 2011.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-23170 Filed 9-9-11; 8:45 am]
BILLING CODE P