
[Federal Register Volume 79, Number 85 (Friday, May 2, 2014)]
[Notices]
[Pages 25164-25168]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10042]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72037; File No. SR-BATS-2014-013]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Short Term Option Series

April 28, 2014.
    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 April 24, 2014, 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 filed a proposal to amend Interpretation and Policy 
.05 to Rule 19.6, entitled ``Series of Options Contracts Open for 
Trading,'' related to the expiration dates, classes, series, initial 
and additional series listed in, and strike price intervals related to 
Short Term Option Series (``STOS'') as well as to make certain 
corresponding changes to Rule 29.11, entitled ``Terms of Index Options 
Contracts.''
    The text of the proposed rule change is available at the Exchange's 
Web site at http://www.batstrading.com, at the

[[Page 25165]]

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
    The purpose of the proposed rule change is to harmonize the 
Exchange's rules with recently approved changes to the rules governing 
short-term option series programs of other options exchanges. 
Specifically, the Exchange is proposing to amend Interpretation and 
Policy .05 to Rule 19.6 for changes related to equity options and Rule 
29.11(h) for changes related to index options in order to (i) allow the 
Exchange to list options in STOS for each of the next five Fridays that 
are business days and are not Fridays in which monthly options series 
or quarterly options series (``Short Term Expiration Dates'') expire at 
one time for both equity and index options; (ii) state that additional 
series of STOS may be listed up to, and including on, the day of 
expiration for both equity and index options; (iii) expand the number 
of classes on which STOS may be opened from 30 to 50 for both equity 
and index options; (iv) modify the initial listing provision to allow 
the Exchange to open up to 30 STOS for each expiration date in a STOS 
class for equity options; (v) expand the strike price range limitations 
for STOS for equity options; (vi) allow the Exchange to list STOS in 
equity options in $0.50 or greater strike intervals where the strike 
price is less than $75.00, in $1.00 or greater strike intervals where 
the strike price is between $75 and $150, and in $2.50 or greater 
strike intervals where the strike price is above $150; and (vii) 
permit, for both equity and index options, an expanded number of STOS 
to be opened and to require delisting of certain STOS where the price 
of the underlying security or value of the underlying index has moved 
dramatically. Finally, the Exchange is proposing to make corrections to 
certain typos in the text of paragraph (c) and (d) of Interpretation 
and Policy .05 to Rule 19.6 in order to change references to 
``underlying index'' to ``underlying security.'' The Exchange believes 
that the proposed rule changes would enable the Exchange to compete 
equally and fairly with other options exchanges in satisfying high 
market demand for weekly options and continuing strong customer demand 
to use STOS to execute hedging and trading strategies.
Proposals (i) and (ii)
    First, the Exchange proposes to amend Interpretation and Policy .05 
of Rule 19.6 and Rule 29.11(h), which codify the STOS program for 
equity options and index options, respectively, as follows: (i) to 
allow the Exchange to list options in STOS for each of the next five 
Short Term Expiration Dates expire [sic] at one time; and (ii) to state 
that additional series of STOS may be listed up to, and including on, 
the day of expiration. These proposed rule changes are identical to a 
recently approved filing by the Chicago Board Options Exchange 
(``CBOE'') and a copycat filing for immediate effectiveness by the 
International Securities Exchange (``ISE'') and substantially identical 
to a filing for immediate effectiveness by NYSE Arca, Inc. (``Arca'') 
except that, unlike the Arca filing, the Exchange is also proposing to 
amend its rules relating to STOS for index options.\3\
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    \3\ See Securities and Exchange Act Release Nos. 71005 (December 
6, 2013), 78 FR 75395 (December 11, 2013) (SR-CBOE-2013-096) 
(approval order); 71033 (December 11, 2013), 78 FR 76375 (December 
17, 2013) (SR-ISE-2013-68); and 71750 (March 19, 2014), 79 FR 16416 
(March 25, 2014) (SR-NYSEArca-2014-24).
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    Currently, Interpretation and Policy .05 of Rule 19.6 and Rule 
29.11(h) provide that a STOS is a series of an option class that is 
approved for listing and trading on the Exchange in which the series is 
opened for trading on any Thursday or Friday that is a business day and 
that expires at the close of business on each of the next five 
consecutive Fridays that are business days. The rules further state 
that if a Thursday or Friday is not a business day, the series may be 
opened on the first business day immediately prior to that Thursday or 
Friday and, if a Friday is not a business day, the series shall expire 
on the first business day immediately prior to that Friday. No STOS may 
expire in the same week in which a monthly or quarterly option series 
in the same class expires. Thus, because a Friday expiration may 
coincide with an existing expiration of a monthly or quarterly series 
of an option in the same class as the STOS option series, the current 
requirement that the Fridays be consecutive may mean that the Exchange 
cannot open five STOS expiration dates because of existing monthly or 
quarterly expirations.
    The Exchange proposes to amend Interpretation and Policy .05 of 
Rule 19.6 and Rule 29.11(h) to remove the requirement that the five 
expiration dates be on consecutive Fridays and instead provide that the 
Exchange would have the ability to list a total of five STOS 
expirations at the same time, provided that the expirations are on 
``each of the next five Fridays'' that do not include a monthly or 
quarterly options expiration date. As proposed, the Exchange would list 
each of the five STOS as close to the STOS opening date as possible so 
that the next five STOS may be listed at one time, not including the 
monthly or quarterly options. For example, where a quarterly option 
expires in week 1 and a monthly option expires in week 4, the Exchange 
could list new STOS as follows: week 1 quarterly option, week 2 STOS 
option, week 3 STOS option, week 4 monthly option, week 5 STOS option, 
week 6 STOS option, and week 7 STOS option.\4\ As another example, 
where a quarterly option expires in week 3 and a monthly option expires 
in week 6, the Exchange could list new STOS as follows: week 1 STOS 
option, week 2 STOS option, week 3 quarterly option, week 4 STOS 
option, week 5 STOS option, week 6 monthly option, week 7 STOS option.
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    \4\ As proposed, the rules would not allow for there to not be a 
STOS expiration in week 7, but then to have a STOS option expire in 
week 8.
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    The Exchange is also proposing to codify an existing practice by 
adding language to paragraph (d) of Interpretation and Policy .05 to 
Rule 19.6 and Rule 29.11(h)(4) to state that additional STOS may be 
added up to, and including on, the expiration date of the series and, 
correspondingly, to delete text from paragraph (f) to Policy .05 of 
Rule 19.6 and Rule 29.11(h)(6) that prohibits the opening of additional 
series during expiration week in classes listed pursuant to paragraphs 
(f) and (6), respectively. As discussed below, the Exchange rules 
specify the number of initial and additional series that the Exchange 
may open for each option class that participates in the STOS program. 
In practice, the Exchange, along with the other options exchanges, list 
additional STOS up to and on the expiration day, with the exception of

[[Page 25166]]

STOS listed pursuant to paragraph (f) of Interpretation and Policy .05 
to Rule 19.6 and Rule 29.11(h)(6), which prohibit the opening of 
additional series during expiration week in classes listed pursuant to 
those rules.\5\ Consistent with the actions taken by other options 
exchanges, the Exchange believes that codifying this practice will 
clarify authority that is not currently explicitly stated in its rules 
to add series up until and on the day of expiration and to make the 
Exchange's rules regarding the timing of opening additional STOS 
consistent with those of other options exchanges. Given the short 
lifespan of STOS, the Exchange believes that the ability to list new 
series of options intraday is appropriate.
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    \5\ The Exchange notes that the Options Clearing Corporation 
(the ``OCC'') has the ability to accommodate adding STOS intraday.
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Proposals (iii)-(vi)
    The Exchange further proposes to amend its rules in order to: (i) 
Expand the number of classes on which STOS may be opened from 30 to 50 
for both equity and index options; (ii) modify the initial listing 
provision for equity options to allow the Exchange to open up to 30 
STOS for each expiration date in a STOS class; (iii) expand the strike 
price range limitations for STOS in equity options; and (iv) allow the 
Exchange to list STOS in equity options in $0.50 or greater strike 
intervals where the strike price is less than $75.00, in $1.00 or 
greater strike intervals where the strike price is between $75 and 
$150, and in $2.50 or greater strike intervals where the strike price 
is above $150. These proposed changes are substantially identical to a 
recent approved filing by NASDAQ OMX PHLX, LLC (``PHLX'') and copycat 
filings for immediate effectiveness by CBOE, ISE, and Arca, unless 
otherwise noted herein.\6\
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    \6\ See Securities Exchange Act Release Nos. 70682 (October 15, 
2013), 78 FR 62809 (October 22, 2013) (SR-PHLX-2013-101) (notice of 
filing); 71004 (December 6, 2013), 78 FR 75437 (December 11, 2013) 
(approval order); Securities and Exchange Act Release No. 71079 
(December 16, 2013), 78 FR 77188 (December 20, 2013) (SR-CBOE-2013-
121); 71034 (December 11, 2013), 78 FR 76363 (December 17, 2013) 
(SR-ISE-2013-69); and 71750 (March 19, 2014), 79 FR 16416 (March 25, 
2014) (SR-NYSEArca-2014-24). The Exchange notes that the number of 
classes that may participate in the STOS Program is aggregated 
between equity options and index options and is not apportioned 
between equity options and index options.
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    Currently, the Exchange may select up to 30 currently listed option 
classes on which to list STOS and the Exchange may also list STOS on 
classes selected by other exchanges under their respective STOS 
programs. The Exchange may open up to 30 STOS per expiration comprised 
of up to 20 initial series and 10 additional series per expiration. The 
same number of strike prices must be opened above and below the value 
of the underlying security at about the time that the STOS are 
initially opened for trading on the Exchange. Strike prices must be 
within 30% above or below the current value of the underlying security 
from the preceding day.
    The Exchange's rules currently provide that the intervals between 
strike prices are to be the same as the strike prices for series in the 
monthly options on the same class, however, the Exchange may open STOS 
for trading at $0.50 strike price intervals for option classes that 
trade in one dollar increments and are listed pursuant to the STOS 
rules. The Exchange may also open additional strike prices of STOS that 
are more than 30% above or below the current price of the underlying 
security provided that demonstrated customer interest exists for such 
series.
    The Exchange proposes to expand the STOS program as the Exchange 
believes an expansion will benefit the marketplace while aligning the 
Exchange with other options exchanges.\7\
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    \7\ See supra note 8.
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    First, the Exchange is proposing to increase the number of STOS 
classes that may be opened after an option class has been approved for 
listing and trading on the Exchange. The Exchange proposes to amend 
paragraph (a) of Interpretation and Policy .05 to Rule 19.6 and Rule 
29.11(h)(1) so that the Exchange may select up to fifty currently 
listed option classes on which STOS may be opened. The Exchange also 
proposes to amend paragraph (c) of Interpretation and Policy .05 to 
Rule 19.6 so that the Exchange may initially open up to 30 series of 
STOS for equity options for each expiration date in that class.
    Second, the Exchange proposes to amend paragraphs (c) and (d) of 
Interpretation and Policy .05 to Rule 19.6 to indicate that any initial 
or additional strike prices listed by the Exchange shall be reasonably 
close to the price of the underlying equity security and within the 
following parameters: (i) If the price of the underlying security is 
less than or equal to $20, strike prices shall be not more than one 
hundred percent (100%) above or below the price of the underlying 
security; and (ii) if the price of the underlying security is greater 
than $20, strike prices shall be not more than fifty percent (50% above 
or below the price of the underlying security.
    The Exchange is also proposing to add language stating that the 
Exchange may open additional strike prices of STOS that are more than 
50% above or below the current value of the underlying security (if the 
price is greater than $20); provided that demonstrated customer 
interest exists for such series, as expressed by institutional, 
corporate or individual customers or their brokers and that adding such 
strike prices would comply with the Options Listing Procedures Plan 
(``OLPP''). Market Makers trading for their own account shall not be 
considered when determining customer interest under this provision.
    This proposal is substantially identical to the recently amended 
rules of other exchanges,\8\ excluding Arca, except that the Exchange 
is proposing to include language in the rule that indicates that the 
addition of strike prices of STOS that are more than 50% above or below 
the current value of the underlying security (if the price is greater 
than $20) must comply with the OLPP. Each of the other options 
exchanges referenced have a similar requirement, again, excluding Arca, 
however such requirement is located elsewhere in their respective 
rules.\9\ While provisions (i) and (ii) above are identical to Arca's 
amended rule, Arca's rules do not include any reference to opening 
additional strike prices of STOS that are more than 50% above or below 
the current value of an underlying security priced greater than $20.
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    \8\ See PHLX Commentary .11(d) of Rule 1012; CBOE 5.5(d)(4); ISE 
Supplementary Material .02(d) to Rule 504. See also PHLX Commentary 
.10(a) of Rule 1012; CBOE Rule 5.5A; ISE Rule 504A(b)(i).
    \9\ See PHLX Commentary .10(a) of Rule 1012; CBOE Rule 5.5A; ISE 
Rule 504A(b)(i).
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    Next, the Exchange is proposing to amend paragraph (e) of 
Interpretation and Policy .05 to Rule 19.6 to permit the Exchange to 
list strike price intervals of: (i) $0.50 or greater where the strike 
price is less than $75; (ii) $1.00 or greater where the strike price is 
between $75 and $150; or (iii) $2.50 or greater for strike prices 
greater than $150. Currently, paragraph (e) of Interpretation and 
Policy .05 to Rule 19.6 permits the Exchange to list strike price 
intervals on STOS that are the same as strike prices for series in that 
same option class that expire in accordance with the normal monthly 
expiration cycle or, under paragraph (f) of Interpretation and Policy 
.05 to Rule 19.6, where the option class trades in one dollar 
increments and is in the STOS program, the Exchange may open for 
trading STOS at $0.50 strike price intervals. The Exchange is not

[[Page 25167]]

proposing to delete either of these existing rules.
    This proposal is a competitive proposal designed to bring the 
Exchange's rules for the strike intervals in STOS in line with those of 
other options exchanges, as recently amended.\10\ Other options 
exchanges originally added the rules permitting them to list strike 
price intervals of $0.50 or greater where the strike price is less than 
$75 and $1.00 or greater where the strike price is between $75 and 
$150.\11\ In a separate filing, the other exchanges recently amended 
their rules to permit the use of strike price intervals of $2.50 or 
greater for strike prices greater than $150.\12\
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    \10\ See supra note 8.
    \11\ See Securities Exchange Act Release Nos. 67446 (July 16, 
2012), 77 FR 42780 (July 20, 2012) (SR-PHLX-2012-78) (notice of 
filing); 67753 (August 29, 2012), 77 FR 54635 (September 5, 2012) 
(approval order); Securities and Exchange Act Release No. 68074 
(October 19, 2012), 77 FR 65241 (October 25, 2012) (SR-CBOE-2012-
092); 70335 (September 6, 2013), 78 FR 56253 (September 12, 2013) 
(SR-ISE-2013-47); and 68194 (November 8, 2012), 77 FR 68172 
(November 15, 2012) (SR-NYSEArca-2012-114).
    \12\ See supra note 8.
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Proposal (vii)
    The Exchange is also proposing to add new language to both 
paragraph (d) of Interpretation and Policy .05 to Rule 19.6 and Rule 
29.11(h)(4) to allow the Exchange, in the event that the underlying 
security has moved such that there are no series that are at least 10% 
above or below the current price of the underlying security or the 
value of the underlying index, as applicable, to delist series with no 
open interest in both the call and the put series having a: (i) Strike 
higher than the highest strike price with open interest in the put and/
or call series for a given expiration week; and (ii) strike lower than 
the lowest strike price with open interest in the put and/or the call 
series for a given expiration week, so as to list series that are at 
least 10% but not more than 30% above or below the current price of the 
underlying security or the value of the underlying index. Further, in 
the event that all existing series have open interest and there are no 
series at least 10% above or below the current price of the underlying 
security or the value of the underlying index, the Exchange may list 
additional series, in excess of the 30 allowed currently under current 
paragraphs (c) and (d) of Interpretation and Policy .05 to Rule 19.6 
and Rule 29.11(h)(3) and (4), that are at least 10% and not more than 
30% above or below the current price of the underlying security or the 
value of the underlying index. This change is being proposed 
notwithstanding the current cap of 30 series per class under the STOS 
program. This change is substantially identical to that of recently 
approved changes made to the rules of Arca and NYSE MKT LLC (``MKT'') 
\13\ and changes made immediately effective by ISE.\14\
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    \13\ See Securities Exchange Act Release Nos. 68190 (November 8, 
2012) (SR-NYSEArca-2012-95) and 68191 (November 8, 2012) (SR-
NYSEMKT-2012-42).
    \14\ See Securities Exchange Act Release No. 68318 (November 29, 
2012), 77 FR 72426 (December 5, 2012) (SR-ISE-2012-90).
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    Finally, the Exchange is proposing to correct several typographical 
errors in paragraphs (c) and (d) of Interpretation and Policy .05 to 
Rule 19.6 in which the Rules refer to ``underlying index'' instead of 
``underlying security.'' These changes are non-substantive and are 
intended to make sure that the rule text is as accurate and clear as 
possible.
2. Statutory Basis
    The rule changes proposed herein are 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.\15\ Specifically, the 
proposed change is consistent with Section 6(b)(5) of the Act,\16\ 
because it is designed to promote just and equitable principles of 
trade, to remove impediments to, and perfect the mechanism of, a free 
and open market and, in general, to protect investors and the public 
interest. Additionally, the Exchange believes that the proposed rule 
change is consistent with the Section 6(b)(5) \17\ requirement that the 
rules of an exchange not be designed to permit unfair discrimination 
between customers, issuers, brokers, or dealers.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
    \17\ Id.
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    The Exchange believes that all of the elements of this proposal, 
including (i) allowing the Exchange to list options in STOS for each of 
the next five Fridays that are business days and are not Fridays in 
which monthly options series or quarterly options series (``Short Term 
Expiration Dates'') expire at one time for both equity and index 
options; (ii) stating that additional series of STOS may be listed up 
to, and including on, the day of expiration for both equity and index 
options; (iii) expanding the number of classes on which STOS may be 
opened from 30 to 50 for both equity and index options; (iv) modifying 
the initial listing provision to allow the Exchange to open up to 30 
STOS for each expiration date in a STOS class for equity options; (v) 
expanding the strike price range limitations for STOS for equity 
options; (vi) allowing the Exchange to list STOS in equity options in 
$0.50 or greater strike intervals where the strike price is less than 
$75.00, in $1.00 or greater strike intervals where the strike price is 
between $75 and $150, and in $2.50 or greater strike intervals where 
the strike price is above $150; (vii) permitting, for both equity and 
index options, an expanded number of STOS to be opened and to require 
delisting of certain STOS where the price of the underlying security 
has moved dramatically; and (viii) making corrections to certain typos 
to change references to ``underlying index'' to ``underlying 
security,'' will result in a continuing benefit to investors by giving 
them more flexibility to closely tailor their investment and hedging 
decisions in a greater number of securities and indices, thus allowing 
them to better manage their risk exposure. The Exchange further 
believes that this proposal to expand the STOS program would make the 
STOS program more effective, would harmonize the provisions with the 
OLPP, and would create more clarity in the Exchange's rules to the 
benefit of investors, market participants, and the market in general. 
For the foregoing reasons, the Exchange also believes that the proposed 
rule changes are equitable and not unfairly discriminatory as the 
benefits from the expansion of the STOS program will be available to 
all market participants.
    With regard to the impact of this proposal on system capacity, the 
Exchange has analyzed its capacity and represents that it and the 
Options Price Reporting Authority have the necessary systems capacity 
to handle the potential additional traffic associated with the proposed 
expansion of the STOS program. While the expansion of the STOS program 
is expected to generate additional quote traffic, the Exchange believes 
that this increased traffic will be manageable. The Exchange also notes 
that any series added under this expansion would be subject to message 
traffic mitigation under BATS Rule 21.14. Although the number of 
classes participating in the STOS program would increase, that increase 
would be limited, as described above, and consistent with existing, 
similar programs on other exchanges.\18\ Further, the Exchange does not 
believe that the proposal will result in a material proliferation of 
additional series because it is limited to a fixed number of classes.
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    \18\ See supra notes 5, 8, 10, 13, 15, and 16.

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[[Page 25168]]

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 Exchange 
believes the proposal is pro-competitive and will allow the Exchange to 
compete more effectively with other options exchanges that have already 
adopted changes to their STOS programs that are substantially identical 
to the changes proposed by this filing.\19\ The Exchange believes that 
the proposal will result in additional investment options and 
opportunities to achieve the investment objectives of market 
participants seeking efficient trading and hedging vehicles, to the 
benefit of investors, market participants, and the marketplace in 
general.
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    \19\ See supra notes 5, 8, 10, 12, 14, and 15.
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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 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 \20\ and Rule 19b-4(f)(6) 
thereunder.\21\
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 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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    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 this requirement will allow 
the Exchange to compete with other options exchanges that have expanded 
their STOS Programs without putting the Exchange at a competitive 
disadvantage. The Exchange also stated that the proposal would help 
eliminate investor confusion and promote competition among the options 
exchanges. For these reasons, the Commission believes that the proposed 
rule change presents no novel issues and that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest; and will allow the Exchange to remain competitive with 
other exchanges. Therefore, the Commission designates the proposed rule 
change to be operative upon filing.\22\
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    \22\ 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-2014-013 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-2014-013. 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 
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-2014-013 and should be 
submitted on or before May 23, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-10042 Filed 5-1-14; 8:45 am]
BILLING CODE 8011-01-P


