BATS has received approval from the SEC for a second equities exchange, BYX (short for BATS Y-Exchange Inc.). The rules can be found at http://sec.gov/rules/other/2010/batsyapplication.htm. This new exchange will utilize the proven world-class BATS technology. 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 exchange and distinguishes it from other exchanges, including BATS Exchange (BZX).

What elements of BATS Exchange (BZX) will BYX share?

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

What is the market model?

BYX will use price-time priority with a differentiated fee schedule and even better economic access to high-performance routing. Pricing will be announced closer to launch.

What is the target launch date?

BYX will follow a controlled yet swift rollout schedule to ensure the least disruption for industry participants. The schedule follows:

Friday, 10/01/10:	ZVV~, ZVZZT (TEST Symbols)
Friday, 10/15/10:	AAPL, AMD, DIA, VIA.B, ZVV~, ZVZZT (PRODUCTION Symbols Start)
Monday, 10/18/10:	A-GZZZZZ, VIA.B, ZVV~, ZVZZT
Wednesday, 10/20/10:	A-PZZZZZ, VIA.B, ZVV~, ZVZZT
Friday, 10/22/10:	A-ZZZZZZ (Rollout Complete)

When are the testing opportunities for Members?

• Certification: Members can test and certify immediately using the BYX certification environment. Members must certify before requesting production BYX ports. Please contact the BATS Trade Desk to schedule a certification appointment.
• Street-Wide: BATS has also scheduled a street-wide BYX production testing opportunity, including the SIPs, for Saturday, September 18, 2010.

What is my responsibility as a BATS Exchange (BZX) Member?

To trade via BYX, current BATS Exchange (BZX) Members are required to become BYX Members via a membership waive-in process. Membership waive-in documents will be emailed to existing BATS Exchange Members and will be available on the BATS Web site shortly. Existing BATS Exchange (BZX) 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) as a Reg NMS fully protected quote 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 (BZX).

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 (BZX) 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 BYX 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".