Bats BYX Exchange
Bats has received approval from the SEC for a second equities exchange, BYX Exchange (short for Bats Y-Exchange Inc.). The rules can be found at http://www.batstrading.com/regulation/. 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 Exchange?
BYX Exchange 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 BZX Exchange.
What elements of BZX Exchange will BYX Exchange share?
- BYX Exchange will provide free PITCH and TOP market data.
- Members can use existing connectivity to BZX Exchange to connect to BYX Exchange.
- BYX Exchange Members can expect the same great Bats performance, reliability and service.
What is the market model?
BYX Exchange 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.
When are the testing opportunities for Members?
Certification: Members can test and certify between 7 a.m. and 7 p.m. ET using the BYX Exchange certification environment. Members must certify before requesting production BYX Exchange ports. Please contact the Bats Trade Desk to schedule a certification appointment.
What is my responsibility as a BZX Exchange Member?
To trade via BYX Exchange, current BZX Exchange Members are required to become BYX Exchange Members. There will be no membership cost at BYX Exchange
How is BYX Exchange identified in the SIPs?
BYX Exchange is represented in CTA (CQS/CTS feeds) and UTP (UQDF/UTDF feeds) as a Reg NMS fully protected quote with the 'Y' identifier.
Where is the BYX Exchange platform be located?
The BYX Exchange matching engine is operated out of Bats' existing primary datacenter (SAVVIS facility in Weehawken, NJ). Members will be able to access BYX Exchange via existing connectivity to BZX Exchange.
How does clearing work with BYX Exchange?
- All clearing records sent to the National Securities Clearing Corporation (NSCC) by BYX Exchange will be submitted in real-time using the RIO format. BZX 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 Exchange in the RIO format prior to the first day of operation.
- The NSCC originator code for BYX Exchange 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 is BYX Exchange identified for OATS, INSITE and Blue Sheets?
- OATS: FINRA has assigned BYX Exchange a Destination Code of "XY".
- INSITE: FINRA has assigned the exchange code of "Y".
- The Blue Sheets exchange code and requestor code is "Y".