[Federal Register Volume 78, Number 129 (Friday, July 5, 2013)]
[Notices]
[Pages 40529-40531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16090]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69891; File No. SR-BYX-2013-022]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Provide
a Last Sale Data Feed
June 28, 2013.
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 June 25, 2013, BATS-Y Exchange, Inc. (the ``Exchange'' or
``BYX'') 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 Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
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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 make available a new data feed to
data recipients.\5\ 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.
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\5\ 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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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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to make available an
additional Exchange data feed for receipt by Exchange data recipients.
The Exchange currently offers all of its various data feeds free of
charge, though the Exchange intends to file a proposal shortly to
commence charging for certain of such feeds. The data feeds currently
offered by the Exchange include: (i) TCP PITCH; (ii) Multicast PITCH;
(iii) TOP; (iv) DROP; (v) Historical Data; and (vi) Latency Monitoring
(collectively, the ``Data Feeds''). The Exchange provides detailed and
up to date technical information regarding each of the Data Feeds
currently offered by the Exchange on its public Web site.\6\ All orders
and executions displayed through the Data Feeds are anonymous and do
not contain the identity of the party that submitted the order.
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\6\ http://www.batstrading.com/support/.
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The Exchange is proposing to amend Rule 11.22 in order to begin
offering a new feed, the Last Sale Feed, to Members and non-members.
The Last Sale Feed will be a direct data feed product that provides
real-time, intraday trade information, including price, volume and time
of executions. The Last Sale Feed will not include quotation
information.
Currently, the Exchange provides real-time last sale information
from its market center to the Security Information Processors
(``SIPs'') for the national market system plans governing trading in
NYSE listed securities (``Tape A securities''), NASDAQ listed
securities (``Tape C securities''), and securities listed on exchanges
other than NYSE or NASDAQ (``Tape B securities''). The SIPs then
consolidate the Exchange's last sale information with similar
information from other market centers, and disseminate the consolidated
last sale data to market participants, including market data vendors.
The Last Sale Feed will include last sale information regarding all
Tape A securities, Tape B securities and Tape C securities with respect
to activity occurring solely on the Exchange.
Various data recipients may wish to subscribe to and use the Last
Sale Feed. For instance, data recipients that provide real-time market
information on public Web sites or offer dynamic stock tickers,
portfolio trackers, price/time graphs and other visual systems can use
the Last Sale Feed in lieu of using the Exchange's existing Data Feeds.
Data recipients may prefer the BATS Last Sale Feed because the
Exchange's existing Data Feeds contain a significant amount of
additional information that the data recipients may not need, which may
result in unnecessary technology costs (e.g., development,
telecommunications or storage costs). The Exchange notes that similar
market-specific last sale data products are offered by other market
centers, including an identical data feed offered by the Exchange's
affiliate, BATS Exchange, Inc. (``BATS BZX'').\7\
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\7\ See BATS BZX Rule 11.22(g); NASDAQ Stock Market Rule 7039;
NASDAQ OMX BX Rule 7039; see also Securities Exchange Act Release
No. 61112 (December 4, 2009), 74 FR 65569 (December 10, 2009) (File
No. SR-BX-2009-077) (filing of an immediately effective rule related
to introduction of a last sale feed by NASDAQ OMX BX).
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No market participant is required to subscribe to the Last Sale
Feed because the same last sale prices are available in the Exchange's
other Data Feeds. Market participants can also gain access to BYX last
sale prices that are integrated with the prices that other markets make
available through the SIPs. Indeed, even though the Last Sale Feed may
provide to some participants an efficient alternative to the
consolidated price information that investors and broker-dealers can
receive on a consolidated basis from the SIPs, the Exchange believes
that the information that the Exchange contributes to the consolidated
tape and the increasingly lower latency of the data feeds offered by
the SIPs will continue to satisfy the needs of the vast majority of
individual and professional investors. Although certain data recipients
might supplement their data feeds by adding the Last Sale Feed, it is
unlikely that data recipients or distributors will replace the
consolidated last sale feed provided by the SIPs with the Last Sale
Feed. The Exchange represents that it
[[Page 40530]]
will not distribute its last sale feed on a more timely basis than it
makes available the data that is provided to the SIPs for consolidation
and dissemination.
In addition to offering a Last Sale Feed to market participants as
described above, the Exchange proposes to eliminate reference to a data
feed no longer offered by the Exchange, TCP FAST PITCH. As set forth in
Rule 11.22(b), the Exchange discontinued offering TCP FAST PITCH on
August 1, 2011.
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.\8\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\9\ in that it is designed
to prevent fraudulent and manipulative acts and practices, 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, and it is not designed to
permit unfair discrimination among customers, brokers, or dealers.
Specifically, the Exchange believes that this proposal is in keeping
with those principles by promoting increased transparency and
efficiency through the dissemination of BYX data through an additional
feed.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposed
amendment will allow the Exchange to offer a data feed that is similar
to data feeds offered by several of the Exchange's competitors. As
noted above, although certain data recipients might supplement their
data feeds by adding the Last Sale Feed, it is unlikely that data
recipients or distributors will replace the consolidated last sale feed
provided by the SIPs with the Last Sale Feed.
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 Change and Timing for
Commission Action
Because the foregoing 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
BYX has satisfied this requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay so that the Exchange may commence offering the Last
Sale Feed at the same time as certain of the Exchange's other Data
Feeds, which are already codified in Rule 11.22, and become subject to
fees, which the Exchange has currently planned for July 1, 2013,
subject to such fees being filed with the Commission. The Exchange
noted that a Last Sale Feed is already available for the Exchange's
affiliate, BATS Exchange, Inc. (``BATS BZX''), and stated that it
believes it will help to avoid confusion and is therefore in the public
interest if the Exchange is able to offer the Last Sale Feed on the
same terms as of July 1, 2013. The Exchange noted that the receipt and
use of the proposed Last Sale Feed is strictly voluntary and that such
feed does not contain information not already made available through
the Exchange' other Data Feeds. The Commission has determined that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest because such waiver will enable BYX
to implement the proposed rule change without undue delay in a manner
consistent with a proposed rule change previously approved by the
Commission.\12\ Therefore, the Commission designates the proposal
operative upon filing.\13\
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\12\ See Securities Exchange Act Release No. 61885 (April 9,
2010), 75 FR 20018 (April 16, 2010) (order approving the offering of
BATS BZX's Last Sale Feed).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has 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 [email protected]. Please include
File Number SR-BYX-2013-022 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-BYX-2013-022. 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.,
[[Page 40531]]
Washington, DC 20549, on official business days between the hours of
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 BYX. 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-BYX-2013-022 and should be
submitted on or before July 26, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-16090 Filed 7-3-13; 8:45 am]
BILLING CODE 8011-01-P