BATS Proposes Rule Changes Relating to Fees


On January 3, the Securities and Exchange Commission published a notice of proposed rule changes submitted by BATS Exchange, Inc. BATS proposes to modify BATS Rules 15.1(a) and (c), which relate to the fees applicable to its members. Specifically, BATS proposes to revise the “Options Pricing” section of its fee schedule as follows:

1. Customer Order Pricing—Decrease the fee for customer orders that remove liquidity from BATS and increase the rebate for customer orders that add liquidity to BATS; 2. NBBO Setter Rebate—Where a member meets certain daily average volume requirements, add a rebate for orders that establish a national best bid or national best offer; 3. Firm and Market Maker Pricing—Increase the fee for firm and market maker orders that remove liquidity from BATS and increase the rebate for firm and market maker orders that add liquidity to BATS; 4. Directed ISO Pricing—Simplify the pricing of all directed ISOs (intermarket sweep orders that bypass BATS’s system and are immediately routed to another options exchange specified by the user) by charging a flat rate per contract for such orders; and 5. Routing Pricing—Establish fees that will apply to all best execution routing strategies offered by BATS and to destination specific order (a market or limit order that instructs BATS’s system to route the order to a specified trading center after the order is exposed to BATS’s Option Book) routing strategies

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Katten Muchin Rosenman LLP | Attorney Advertising

Written by:


Katten Muchin Rosenman LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.