BATS filed an application with the SEC to operate a second equities exchange. The rules have been published for comment by the SEC at http://sec.gov/rules/other/2010/batsyapplication.htm. This new exchange will utilize the proven world-class BATS technology and will be called BYX (short for BATS Y-Exchange Inc.). It will allow BATS greater flexibility in pricing and innovation offering more choices to the industry in our continued effort to make markets better for market participants.

What is BYX?

BYX is an identifier for BATS Y-Exchange, Inc. that is used by the vendor and market maker community to identify the exchanges (e.g. BATS, ARCA, NSDQ, NYSE…).

What elements of BATS Exchange will BYX share?

• BYX will provide free TCP PITCH and TOP market data.
• Members can use existing connectivity to BATS Exchange to connect to BYX.
• BYX Members can expect the same great BATS performance, reliability and service.

What will be the priority and pricing models?

The priority model will be price/time. Pricing will be determined closer to the launch date.

What is the target launch date?

BATS anticipates the launch of BYX in summer 2010, after the launch of BATS Options.

What is my responsibility as a BATS Exchange Member?

To trade via BYX, current BATS Exchange Members are required to become BYX Members via a membership waive-in process. Upon SEC approval, existing BATS Exchange Members will be allowed a 90-day grace period before they are required to complete the BYX waive-in process. There will be no membership cost at BYX.

How will BYX be identified in the SIPs?

BYX will be represented in CTA (CQS/CTS feeds) and UTP (UQDF/UTDF feeds) with the 'Y' identifier.

Where will the BYX platform be located?

The BYX matching engine will operate out of BATS' existing primary datacenter (SAVVIS facility in Weehawken, NJ). Members will be able to access BYX via existing connectivity to BATS Exchange.

How will clearing work with BYX?

• The NSCC will be implementing enhancements to the Regional Interface Operation (RIO) and the Consolidated Trade Summary to accommodate BYX. All clearing records sent to the National Securities Clearing Corporation (NSCC) by BYX will be submitted in real-time using the RIO format.  BATS Exchange also submits clearing real-time via the RIO format.
• Members, sponsored participants, and clearing firm systems should be prepared to handle clearing for BYX in the RIO format prior to the first day of operation.
• The NSCC originator code for BYX will be "YBAT" on the RIO 02143125 report.
• For more information regarding the RIO format, refer to http://www.dtcc.com/products/documentation/cs/nscc_formats/400-byte_format_Intra_Day.pdf.  
• For more information regarding the DTCC’s RIO output schedule, refer to http://www.dtcc.com/products/documentation/cs/nscc_formats/multicycle_output_schedule_effective_06.05.09.pdf

How will BATS be identified for OATS, INSITE and Blue Sheets?

• OATS: FINRA has assigned BYX a Destination Code of "XY".
• INSITE: FINRA has assigned the exchange code of "Y".
• The Blue Sheets exchange code and requestor code is "Y".