
[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47444-47448]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19350]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67558; File No. SR-BATS-2012-030]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing of Proposed Rule Change To Amend BATS Rule 14.11, Entitled 
``Other Securities''

August 1, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that, on July 20, 2012, BATS Exchange, Inc. 
(``Exchange'' or ``BATS'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III 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 amend Rule 14.11, entitled ``Other 
Securities,'' to modify the criteria for certain securities listed on 
BATS Exchange as Index Fund Shares. 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. The proposed rule text can be 
found in Exhibit 5.

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
Proposal To Amend Index Fund Shares Rules
    The Exchange proposes certain changes to Rule 14.11(c), relating to 
Index Fund Shares, to conform the Exchange's listings criteria for 
Index Fund Shares with the analogous criteria in place for NYSE Arca 
Equities, Inc. (``NYSE Arca'').\3\ Specifically, the Exchange proposes 
to amend Exchange Rule 14.11(c) (``Index Fund Shares'') to: (1) Modify 
the weight and volume requirement for component stocks comprising the 
applicable index or portfolio for any U.S. index or portfolio and any 
international or global index or portfolio upon which Index Fund Shares 
are based; (2) exclude Index Fund Shares, Portfolio Depositary 
Receipts, Trust Issued Receipts, and Managed Fund Shares (collectively, 
``Derivative Securities Products'')\4\ when applying the quantitative 
generic listing criteria in Rule 14.11(c); and (3) modify the minimum 
number of component stocks for any U.S. index or portfolio and any 
international or global index or portfolio upon which Index Fund Shares 
are based to adopt certain exceptions for any index or portfolio that 
is partially or wholly comprised of Index Fund Shares or other 
Derivative Securities Products.
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    \3\ The Exchange notes that NYSE Arca uses the term Investment 
Company Units to describe the same products that the Exchange calls 
Index Fund Shares.
    \4\ Rule 14.11 includes criteria for derivative securities that 
may be listed or traded on the Exchange, such as Portfolio 
Depositary Receipts, Trust Issued Receipts, and Managed Fund Shares.
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    Rule 14.11(c)(3) provides that the Exchange may approve a series of 
Index Fund Shares for listing and trading pursuant to Rule 19b-4(e)\5\ 
under the Act if such series satisfies the criteria set forth in that 
rule. The Exchange proposes to amend Rule 14.11(c)(3) to amend the 
index weight requirements and adopt notional volume traded per month\6\ 
to the initial listing standards for Index Fund Shares, commonly 
referred to as exchange-traded funds. The Exchange proposes to amend 
the minimum component stock weight requirement for monthly trading 
volumes from 90% to 70% of the weight of the underlying index. In 
addition, the Exchange proposes to adopt an alternative notional volume 
traded per month.
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    \5\ 17 CFR 240.19b-4(e). Rule 19b-4(e) provides that the listing 
and trading of a new derivative securities product by a self-
regulatory organization (``SRO'') shall not be deemed a proposed 
rule change, pursuant to Rule 19b-4(c)(1), if the Commission has 
approved, pursuant to Section 19(b) of the Exchange Act, the SRO's 
trading rules, procedures, and listing standards for the product 
class that would include the new derivatives securities product, and 
the SRO has a surveillance program for the product class.
    \6\ The notional volume traded per month is the number of shares 
traded in a calendar month multiplied by the monthly closing price.
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    Currently for U.S. component stock indexes, Rule 
14.11(c)(3)(A)(i)(b) provides that component stocks that in the 
aggregate account for at least 90% of the weight of the index or 
portfolio each shall have a minimum monthly trading volume during each 
of the last six months of at least 250,000 shares. The Exchange 
proposes to amend the minimum component stock weight requirement from 
90% to 70% of the weight of the underlying index or portfolio. Further, 
the Exchange is proposing to adopt an average minimum trading volume 
requirement of 250,000 shares over a six-month period instead of in 
each of the last six months and to adopt a notional volume traded per 
month of $25,000,000 averaged over the

[[Page 47445]]

last six months as an option for meeting the listing requirements.
    Currently for international or global indexes, Rule 
14.11(c)(3)(A)(ii)(b) provides that component stocks that in the 
aggregate account for at least 90% of the weight of the index or 
portfolio each shall have a minimum worldwide monthly trading volume 
during each of the last six months of at least 250,000 shares. The 
Exchange proposes to amend the minimum component stock weight 
requirement from 90% to 70% of the weight of the underlying index or 
portfolio. Further, the Exchange is proposing to adopt an average 
minimum trading volume requirement of 250,000 shares over a six-month 
period instead of in each of the last six months and to adopt a 
worldwide notional volume traded per month of $25,000,000 averaged over 
the last six months as an option for meeting the listing requirements. 
Further, the Exchange proposes to clarify that the component stock 
trading volumes are determined on a global basis.
    With regard to the Exchange's proposal to amend the minimum 
component stock weight requirement for monthly trading volumes from 90% 
to 70% of the weight of the underlying index, the Exchange believes the 
proposed standard reasonably ensures that securities with substantial 
monthly trading volumes account for a substantial portion of the 
underlying index and, when applied in conjunction with the other 
applicable listing requirements, remain sufficiently broad-based in 
scope to minimize potential manipulation. The Exchange notes that the 
Commission has previously approved the listing and trading of exchange-
traded funds based upon indices that were composed of stocks that did 
not meet the 90% monthly trading volume weight, but were above the 
proposed 70% monthly trading volume weight criteria.\7\ In addition, 
this standard would conform to existing NYSE Arca requirements approved 
by the Commission.\8\
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    \7\ See Securities Exchange Act Release No. 46306 (August 2, 
2002), 67 FR 51916 (August 9, 2002) (SR-NYSE-2002-28) (approving the 
following funds for trading pursuant to unlisted trading privileges 
on NYSE: (1) Vanguard Total Stock Market VIPERs; (2) iShares Russell 
2000 Index Funds; (3) iShares Russell 2000 Value Index Funds; and 
(4) iShares Russell 2000 Growth Index Fund); Securities Exchange Act 
Release No. 55953 (June 25, 2007), 72 FR 36084 (July 2, 2007) (SR-
NYSE-2007-46) (approving listing on NYSE of HealthShares Orthopedic 
Repair Exchange-Traded Fund); and Securities Exchange Act Release 
No. 56695 (October 24, 2007), 72 FR 61413 (October 30, 2007) (SR-
NYSEArca-2007-111) (approving listing on NYSE Arca of HealthShares 
Ophthalmology Exchange-Traded Fund).
    \8\ See NYSE Arca Rule 5.2(j)(3), Commentary .01(a)(A) and (B); 
see also Securities Exchange Act Release No. 61240 (December 24, 
2009), 75 FR 168 (January 4, 2010) (SR-NYSEArca-2009-101) (approving 
proposed rule change to amend NYSE Arca Equities Rule 5.2(j)(3)).
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    With respect to adopting, as an alternative to monthly trading 
volume, the notional volume traded for each of the last six months to 
the initial listing standards for both domestic and international 
indexes, the Exchange believes that notional volume traded averaged per 
month is a better measure of the liquidity of component stocks of the 
underlying index or indexes. Specifically, notional volume nullifies 
the volume discrepancies that generally occur between low priced and 
high priced stocks.\9\
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    \9\ For example, a stock priced at $10 per share that trades 
2,500,000 shares in a month has a notional volume of $25,000,000. 
Conversely, a stock priced at $100 per share that trades 250,000 
shares in a month has a notional volume of $25,000,000.
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    With respect to adopting a six-month average, instead of in each of 
the last six-months, criterion for volume and notional volume, the 
Exchange believes that the averaged six-month period is a better 
indicator of the current liquidity on an index and serves to eliminate 
seasonal volume fluctuations of component securities. Further, 
investors, exchange-traded fund issuers, and third-party index sponsors 
would also benefit from the Exchange's ability to list--without the 
delay associated with a stand-alone rule filing--Index Fund Shares 
based on a broader group of indexes promoting competition.
    The Exchange also proposes to exclude Derivative Securities 
Products when applying the quantitative listing requirements of Rule 
14.11(c)(3)(A)(i)(a), (b), and (c) and 14.11(c)(3)(A)(ii)(a), (b), and 
(c) relating to listing of Index Fund Shares based on a U.S index or 
portfolio or an international or global index or portfolio, 
respectively. Component stocks in the aggregate, excluding Derivative 
Securities Products, would be required to meet the criteria of these 
provisions. Thus, for example, when determining the component weight 
for the most heavily weighted stock and the five most heavily weighted 
component stocks for an underlying index that includes a Derivative 
Securities Product, the weight of any Derivative Securities Products 
included in the underlying index or portfolio would not be considered.
    In addition, the Exchange proposes to modify the requirement in 
Rule 14.11(c)(3)(A)(i)(d) that an index or portfolio shall include a 
minimum of 13 component stocks for an index or portfolio that includes 
Derivative Securities Products. Specifically, the Exchange proposes 
that there shall be no minimum number of component stocks if (a) one or 
more series of Index Fund Shares or Portfolio Depositary Receipts (as 
defined in Exchange Rule 14.11(b)) constitute, at least in part, 
components underlying a series of Index Fund Shares, or (b) one or more 
series of Derivative Securities Products account for 100% of the weight 
of the index or portfolio. Thus, for example, if the index or portfolio 
underlying a series of Index Fund Shares includes one or more series of 
Index Fund Shares or Portfolio Depositary Receipts, or if it consists 
entirely of other Derivative Securities Products, then there would not 
be required to be any minimum number of component stocks (i.e., one or 
more components would be acceptable). However, if the index or 
portfolio consists of Derivative Securities Products other than Index 
Fund Shares or Portfolio Depositary Receipts (e.g., Managed Fund 
Shares) as well as securities that are not Derivative Securities 
Products (e.g., common stocks), then there would have to be at least 13 
components in the underlying index or portfolio.
    In addition, the Exchange proposes to modify the requirement in 
14.11(c)(3)(A)(ii)(d) that an index or portfolio shall include a 
minimum of 20 component stocks for an international or global index or 
portfolio that includes Derivative Securities Products. Specifically, 
the Exchange proposes that there shall be no minimum number of 
component stocks if (a) one or more series of Index Fund Shares or 
Portfolio Depositary Receipts (as defined in Exchange Rule 14.11(b)) 
constitute, at least in part, components underlying a series of Index 
Fund Shares, or (b) one or more series of Derivative Securities 
Products account for 100% of the weight of the index or portfolio. 
Thus, for example, if the index or portfolio underlying a series of 
Index Fund Shares includes one or more series of Index Fund Shares or 
Portfolio Depositary Receipts, or if it consists entirely of other 
Derivative Securities Products, then there would not be required to be 
any minimum number of component stocks (i.e., one or more components 
would be acceptable). However, if the index or portfolio consists of 
Derivative Securities Products other than Index Fund Shares or 
Portfolio Depositary Receipts (e.g., Managed Fund Shares) as well as 
securities that are not Derivative Securities Products (e.g., common 
stocks), then there would have to be at

[[Page 47446]]

least 20 components in the underlying index or portfolio.
    The Exchange believes it is appropriate to exclude Derivative 
Securities Products from the generic criteria specified above for Index 
Fund Shares and to adopt the above-described exceptions in so far as 
Derivative Securities Products that may be included in an index or 
portfolio underlying a series of Index Fund Shares are themselves 
subject to specific listing and continued listing requirements of the 
national securities exchange on which they are listed. Such Derivative 
Securities Products would have been listed and traded on a national 
securities exchange pursuant to a filing submitted pursuant to Section 
19(b)(2) \10\ or 19(b)(3)(A) \11\ of the Act, or would have been listed 
by a national securities exchange pursuant to the requirements of Rule 
19b-4(e)\12\ under the Act. Finally, Derivative Securities Products are 
derivatively priced, and, therefore, it is not necessary to apply the 
generic quantitative criteria (market capitalization, trading volume, 
index or portfolio component weighting) applicable to non-Derivative 
Securities Products (e.g., common stocks) to such products.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(e).
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    In addition to the changes set forth above, the Exchange proposes 
to correct a typographical error in Rule 14.11(c)(4), where there 
currently are two sub-sections (c)(4)(B). The Exchange proposes to 
change the second reference to (c)(4)(C).
General Provisions
    To the extent not specifically addressed in the proposed rules, the 
following general provisions of the Exchange's rules will continue to 
apply to all subject securities affected by the proposed rules 
(``securities'').
Information Circular
    Prior to the commencement of trading, the Exchange will inform its 
Members in an Information Circular of the special characteristics and 
risks associated with trading the securities. Specifically, the 
Information Circular will discuss the following: (1) The procedures for 
purchases and redemptions of the securities (and/or that the securities 
are not individually redeemable); (2) Exchange Rule 3.7, which imposes 
suitability obligations on Exchange Members with respect to 
recommending transactions in the securities to customers; (3) how 
information regarding the Intraday Indicative Value is disseminated; 
(4) the risks involved in trading the securities during the Pre-Opening 
\13\ and After Hours Trading Sessions \14\ when an updated Intraday 
Indicative Value will not be calculated or publicly disseminated; (5) 
the requirement that Members deliver a prospectus to investors 
purchasing newly issued securities prior to or concurrently with the 
confirmation of a transaction; and (6) trading information.
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    \13\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m. 
Eastern Time.
    \14\ The After Hours Trading Session is from 4:00 p.m. to 5:00 
p.m. Eastern Time.
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    In addition, the Information Circular will advise Members, prior to 
the commencement of trading, of the prospectus delivery requirements 
applicable to the securities. Members purchasing securities for resale 
to investors will deliver a prospectus to such investors. The 
Information Circular will also discuss any exemptive, no-action, and 
interpretive relief granted by the Commission from any rules under the 
Act.
    In addition, the Information Circular will reference that the 
securities are subject to various fees and expenses described in the 
registration statement. The Information Circular will also disclose the 
trading hours of the securities and, if applicable, the Net Asset Value 
(``NAV'') calculation time for the securities. The Information Circular 
will disclose that information about the securities and the 
corresponding indexes, if applicable, will be publicly available on the 
Web site for the securities.
Trading Rules
    The Exchange deems the securities to be equity securities, thus 
rendering trading in the securities subject to the Exchange's existing 
rules governing the trading of equity securities. The securities will 
trade on the Exchange from 8:00 a.m. until 5:00 p.m. Eastern Time. The 
Exchange has appropriate rules to facilitate transactions in the 
securities during all trading sessions. The minimum price increment for 
quoting and entry of orders in equity securities traded on the Exchange 
is $0.01, with the exception of securities that are priced less than 
$1.00 for which the minimum price increment for order entry is 
$0.0001.\15\
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    \15\ See, e.g., Rule 11.11(a). Regulation NMS Rule 612, Minimum 
Pricing Increment, provides:
    a. No national securities exchange, national securities 
association, alternative trading system, vendor, or broker or dealer 
shall display, rank, or accept from any person a bid or offer, an 
order, or an indication of interest in any NMS stock priced in an 
increment smaller than $0.01 if that bid or offer, order, or 
indication of interest is priced equal to or greater than $1.00 per 
share.
    b. No national securities exchange, national securities 
association, alternative trading system, vendor, or broker or dealer 
shall display, rank, or accept from any person a bid or offer, an 
order, or an indication of interest in any NMS stock priced in an 
increment smaller than $0.0001 if that bid or offer, order, or 
indication of interest is priced less than $1.00 per share.
    c. The Commission, by order, may exempt from the provisions of 
this section, either unconditionally or on specified terms and 
conditions, any person, security, quotation, or order, or any class 
or classes of persons, securities, quotations, or orders, if the 
Commission determines that such exemption is necessary or 
appropriate in the public interest, and is consistent with the 
protection of investors.
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Surveillance
    The Exchange believes that its surveillance procedures are adequate 
to address any concerns about the trading of the securities on the 
Exchange. Trading of the securities on the Exchange will be subject to 
the Exchange's surveillance procedures for derivative products, 
including the securities. The Exchange may obtain information via the 
Intermarket Surveillance Group (``ISG'') from other exchanges who are 
members or affiliates of the ISG \16\ or with which the Exchange has 
entered into a comprehensive surveillance sharing agreement. The 
Exchange has a general policy prohibiting the distribution of material, 
non-public information by its employees.
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    \16\ For a list of the current members and affiliate members of 
ISG, see www.isgportal.com.
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Trading Halts
    With respect to trading halts, the Exchange may consider all 
relevant factors in exercising its discretion to halt or suspend 
trading in the securities. Trading in the securities may be halted 
because of market conditions or for reasons that, in the view of the 
Exchange, make trading in the securities inadvisable. These may 
include: (1) The extent to which trading in the underlying asset or 
assets is not occurring; or (2) whether other unusual conditions or 
circumstances detrimental to the maintenance of a fair and orderly 
market are present. In addition, trading in the securities will be 
subject to trading halts caused by extraordinary market volatility 
pursuant to Rule 11.18 or by the halt or suspension of the trading of 
the current underlying asset or assets.
    If the applicable Intraday Indicative Value, value of the 
underlying index, or the value of the underlying asset or assets (e.g., 
securities, commodities, currencies, futures contracts, or other 
assets) is not being disseminated as required, the Exchange may halt 
trading

[[Page 47447]]

during the day in which such interruption to the dissemination occurs. 
If the interruption to the dissemination of the applicable Intraday 
Indicative Value, value of the underlying index, or the value of the 
underlying asset or assets persists past the trading day in which it 
occurred, the Exchange will halt trading no later than the beginning of 
the trading day following the interruption. In addition, if the 
Exchange becomes aware that the NAV with respect to a series of the 
securities is not disseminated to all market participants at the same 
time, it will halt trading in such series until such time as the NAV is 
available to all market participants.
Suitability
    Currently, Exchange Rule 3.7 governs Recommendations to Customers 
(Suitability). Prior to the commencement of trading of any inverse, 
leveraged, or inverse leveraged securities, the Exchange will inform 
its Members of the suitability requirements of the Exchange Rule 3.7 in 
an Information Circular. Specifically, Members will be reminded in the 
Information Circular that, in recommending transactions in these 
securities, they must have a reasonable basis to believe that (1) the 
recommendation is suitable for a customer given reasonable inquiry 
concerning the customer's investment objectives, financial situation, 
needs, and any other information known by such Member, and (2) the 
customer can evaluate the special characteristics, and is able to bear 
the financial risks, of an investment in the securities. In connection 
with the suitability obligation, the Information Circular will also 
provide that Members must make reasonable efforts to obtain the 
following information: (1) The customer's financial status; (2) the 
customer's tax status; (3) the customer's investment objectives; and 
(4) such other information used or considered to be reasonable by such 
Member or registered representative in making recommendations to the 
customer.
    In addition, FINRA has implemented increased sales practice and 
customer margin requirements for FINRA members applicable to inverse, 
leveraged, and inverse leveraged securities and options on such 
securities, as described in FINRA Regulatory Notices 09-31 (June 2009), 
09-53 (August 2009) and 09-65 (November 2009) (``FINRA Regulatory 
Notices''). Members that carry customer accounts will be required to 
follow the FINRA guidance set forth in the FINRA Regulatory Notices. 
The Information Circular will reference the FINRA Regulatory Notices 
regarding sales practice and customer margin requirements for FINRA 
members applicable to inverse, leveraged, and inverse leveraged 
securities and options on such securities.
    The Exchange notes that, for such inverse, leveraged, and inverse 
leveraged securities, the corresponding funds seek leveraged, inverse, 
or leveraged inverse returns on a daily basis, and do not seek to 
achieve their stated investment objective over a period of time greater 
than one day because compounding prevents the funds from perfectly 
achieving such results. Accordingly, results over periods of time 
greater than one day typically will not be a leveraged multiple 
(+200%), the inverse (-100%), or a leveraged inverse multiple (-200%) 
of the period return of the applicable benchmark and may differ 
significantly from these multiples. The Exchange's Information 
Circular, as well as the applicable registration statement, will 
provide information regarding the suitability of an investment in such 
securities.
2. Statutory Basis
    The rule change 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.\17\ Specifically, the 
proposed change is consistent with Section 6(b)(5) of the Act,\18\ 
because 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, and to remove impediments to, and perfect 
the mechanism of, a free and open market and a national market system. 
The Exchange believes that the proposed rules will facilitate the 
listing and trading of additional types of exchange-traded products on 
the Exchange that will enhance competition among market participants, 
to the benefit of investors and the marketplace. In addition, the 
listing and trading criteria set forth in the proposed rules are 
intended to protect investors and the public interest.
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    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(5).
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    The Exchange's listing requirements as proposed herein are at least 
as stringent as those of another national securities exchange and, 
consequently, the proposed rule change is consistent with the 
protection of investors and the public interest. Additionally, the 
proposal is designed to prevent fraudulent and manipulative acts and 
practices, as all of the proposed new products are subject to existing 
Exchange trading rules, together with surveillance procedures, 
suitability, and prospectus requirements, and requisite Exchange 
approvals, all set forth above.
    The proposal is also designed to promote just and equitable 
principles of trade by way of initial and continued listing standards 
which, if not maintained, will result in the discontinuation of trading 
in the affected products. These requirements, together with the 
applicable Exchange equity trading rules (which apply to the proposed 
products), ensure that no investor would have an unfair advantage over 
another respecting the trading of the subject products. On the 
contrary, all investors will have the same access to, and use of, 
information concerning the specific products and trading in the 
specific products, all to the benefit of public customers and the 
marketplace as a whole.
    Furthermore, the proposal is designed to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system by adopting listing standards that will lead ultimately to the 
trading of the proposed new products on the Exchange, just as they are 
currently traded on other exchanges. The Exchange believes that 
individuals and entities permitted to make markets on the Exchange in 
the proposed new products should enhance competition within the 
mechanism of a free and open market and a national market system, and 
customers and other investors in the national market system should 
benefit from more depth and liquidity in the market for the proposed 
new products.

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)

[[Page 47448]]

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 self-regulatory organization consents, 
the Commission will:
    A. By order approve or disapprove the 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 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-2012-030 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-BATS-2012-030. 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 Section, 100 F Street, 
NE., Washington, DC 20549, on official business days between 10:00 a.m. 
and 3:00 p.m. Copies of the filing will also be available for 
inspection and copying at the Exchange's principal office. 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-2012-030 and should be 
submitted on or before August 29, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19350 Filed 8-7-12; 8:45 am]
BILLING CODE 8011-01-P


