Regulation

BATS Exchange, Inc. (“BZX Exchange”) received approval on August 18, 2008, from the U.S. Securities and Exchange Commission (“SEC”) to operate as a registered national securities exchange. BZX Exchange commenced operations as a national securities exchange on October 24, 2008, and completed its transition from the operation of an ECN on November 6, 2008.

BZX Exchange received approval to operate an options market (“BATS Options”), on January 26, 2010, and commenced operations of BATS Options on February 26, 2010.

BATS Y-Exchange, Inc. (“BYX Exchange,” which with BZX Exchange are generally referred to as “the BATS Exchanges”) received approval from the SEC on August 13, 2010, to operate as a registered national securities exchange. BYX Exchange commenced operations on October 15, 2010.

The SEC regulates BZX Exchange (including BATS Options) and BYX Exchange as national securities exchanges, and both exchanges also have status as self-regulatory organizations (“SROs”). BATS takes its responsibilities as an SRO very seriously and will continue to work to maintain the integrity of the BATS Exchanges.

Equities Rules: BZX Exchange Rules applicable to membership and trading on the BZX Exchange equities platform are contained in Chapters I – XV of the BZX Exchange Rulebook. BYX Exchange Rules applicable to membership and trading on the BYX Exchange equities platform are contained in Chapters I – XV of the BYX Exchange Rulebook.

Options Rules: The specific BZX Exchange Rules applicable to membership and trading on BATS Options are contained in Chapters XVI – XXIX of the BZX Exchange Rulebook, provided, however, that Chapters I – XV are applicable to BATS Options Members unless specific rules relating to options trading govern or the context otherwise requires.

Fees and Incentives

While we are still in the integration process with Direct Edge, if you need additional information regarding regulation and surveillance of EDGA and EDGX, please view the Direct Edge Regulation information.

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