BATS Adopts Expedited Suspension Process for Disruptive Traders

The SEC approved the adoption by BATS Exchange, Inc. (the "Exchange" or "BATS") of (i) new BATS Rule 12.15 ("Disruptive Quoting and Trading Activity Prohibited"), which prohibits certain recurring disruptive activities (e.g., certain permutations of spoofing and layering) on the Exchange, and (ii) new BATS Rule 8.17 (the "Client Suspension Rule"), which would permit the Exchange to conduct a new expedited client suspension proceeding when it has reason to conclude that Rule 12.15 was violated.

Under the Exchange's current regulatory program, cases involving disruptive quoting and trading activities on the Exchange can take several years to resolve even as the Exchange members responsible for such conduct freely continue inappropriate activities. The Client Suspension Rule provides an expedited suspension proceeding in order to stop certain types of recurring disruptive quoting and trading activity that, in the Exchange's view, comprise clear cases of disruptive and manipulative behavior in which the potential for harm to investors is great.

According to the Exchange, the expedited suspension proceedings could take place in a matter of weeks and would help to strengthen the ability of the Exchange to carry out its oversight and enforcement responsibilities as a self-regulatory organization.