US EQUITIES_OPTIONS USER MANUAL
Contents
1. Session Start Time End Time Begin Order Acceptance Pre Market Orders 6 00 AM 8 00 AM Pre Market orders will be accepted but will not begin trading until 8 00 AM Begin Order Acceptance Regular Session Orders 6 00 AM 9 30 AM Regular Session orders will be accepted but will not begin trading until 9 30 AM Pre Market Session 8 00 AM 9 30 AM Regular Trading Session 9 30 AM 4 00 PM Post Market Session 4 00 PM 5 00 PM 1Changing to 7 00AM ET effective 11 30 15 on EDGA and 12 1 15 on BYX pending SEC approval 8 2 EDGX and EDGA Equities Exchanges Session Start Time End Time Begin Order Acceptance Pre Market Orders 6 00 AM 8 00 AM Pre Market orders will be accepted but will not begin trading until 8 00 AM Begin Order Acceptance Regular Session Orders 6 00 AM 9 30 AM Regular Session orders will be accepted but will not begin trading until 9 30 AM Pre Market Session 8 00 AM 9 30 AM Regular Trading Session 9 30 AM 4 00 PM Post Market Session 4 00 PM 8 00 PM 2Changing to 7 00AM ET effective 12 2 15 on BZX and 12 3 15 on EDGX pending SEC approval 8 3 BZX and EDGX Options Exchanges Session Begin Order Acceptance Pre Market Orders Pre Market orders will be accepted but will not begin trading until market open after 9 30AM Regular Trading Session Start Time 8 00 AM 9 30 AM End Time 9 30 AM 4 00 PM Extended Market Session Select ETF s only2. BATS US Equities Options User Manual Version 3 0 3 Fast reliable data storage is provided by a Storage Area Network SAN 6 Order Types and Related Information 6 1 BATS Order Types BATS accepts limit orders and market orders Orders are limited to a maximum of 999 999 shares contracts Users may submit orders to the Exchange designated with modifiers such as IOC Day Good til Cancel Good til Day Good til Extended Day Reserve Odd Lot Mixed Lot Book Only including Book Only Post Only Partial Post Only at Limit Pegged Mid Point Peg Discretionary Non Displayed Destination Specific and or Intermarket Sweep Note that Book Only and Post Only order types will only execute post on the BATS platform that is targeted by the User and Non Displayed as well as Peg orders are not available on BZX Options Exchange BZX Exchange also supports Market on Open MOO Market on Close MOC Limit on Open LOO Limit on Close LOC Late Limit on Open LLOO and Late Limit on Close LLOC orders on BZX listed securities to efficiently provide for price discovery at the open and close of core market hours Note that this is a representative but incomplete list of order types and that availability per Exchange may vary Refer to specifications noted below for complete details on order type availability on each Exchange Refer to Chapter XI of the appropriate Exchange Rule Book for more information regarding order types gt
3. Making Markets Better US Equities Options User Manual Version 3 0 3 November 12 2015 BATS US Equities Options User Manual Version 3 0 3 Contents MMTOGUCUOMN inctintectNctnainninathinaihenainaineinaihern ieee aetna tenant Our EIERE eet taht hla etdes htc ebteinill Become a Member ee OW SB ASW e Te hnology een perenne peer remeron eee E Order Types and Related Information ccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneneeeeeeeeeeeeeees 6 1 BATS Order VOCS ee ee EE ee Ee 6 2 Minimum Trading JIncrement uk 6 3 SHIPS sh Seel 6 4 POUT G NEE 6 5 Locking or Crossing the LEE 6 6 ThrotleS eieiei tee dee tee el mealies 7 EENEG 8 Trading OLE erp ia a a aE aa a aeaa 8 1 BZX and BYX Equities Evchengee eegen bekegOE eeh EA EN EREEeEER ENEE 8 2 EDGX and EDGA Equities Evchanges 8 3 BZX and EDGX Options Exchanges ssssssseereeesssrrrrrrnrtessrtrrtrrnntrsstrsrrrrtrnrnnneseet 9 Holiday ee 10 Clearly Erroneous Executions Policy 11 Obvious ee EE TZ Contact NEEN OoahWND 2015 BATS Global Markets Inc All Rights Reserved Page 2 BATS US Equities Options User Manual Version 3 0 3 1 Introduction This document provides background information regarding BZX Exchange BZX Options Exchange BYX Exchange EDGA Exchange EDGX Exchange EDGX Options Exchange and BATS Trading together BZX Exchange BZX Options Exchange EDGA Exchange EDGX Exchange EDGX Options Exchange and BYX Exchange are collectively ref
4. 4 00 PM 4 15 PM 3Changing to 7 30AM ET effective 12 11 15 pending SEC approval 9 Holiday Schedule BATS will be closed in observance of the following holidays gt New Years Day Martin Luther King Jr Day President s Day Good Friday Memorial Day gt Independence Day 2015 BATS Global Markets Inc All Rights Reserved VV VV Page 7 BATS US Equities Options User Manual Version 3 0 3 gt Labor Day gt Thanksgiving Day gt Christmas The BATS Holiday Schedule is subject to change 10 Clearly Erroneous Executions Policy The Exchange s Clearly Erroneous Executions policy is set forth in BZX Rule 11 17 BYX Rule 11 17 EDGA Rule 11 15 and EDGX Rule 11 15 The Exchange s rules are available at gt BATS BZX Exchange Rule Book gt BATS BYX Exchange Rule Book gt BATS EDGA Exchange Rule Book gt BATS EDGX Exchange Rule Book 11 Obvious Error Policy The BATS Option Exchange s Obvious Error Policy is set forth in Options Rule 20 6 The Option Exchange s rules are available at gt BATS BZX Exchange Rule Book gt BATS EDGX Exchange Rule Book pending SEC approval 12 Contact BATS Global Markets Web Site _http www bats com Equities Web Site http www batstrading com Options Web Site http www batsoptions com Main Number 913 815 7000 Trade Desk 913 815 7001 tradedesk bats com Membership Services 913 815 7002 membershipservices bats com Billing 913
5. BATS BZX Exchange Rule Book gt BATS BYX Exchange Rule Book gt BATS EDGA Exchange Rule Book gt BATS EDGX Exchange Rule Book Refer to the appropriate FIX or BOE Specification for more details on how various order types are implemented gt BATS US Equities BOE V2 Specification gt BATS US Equities FIX V2 Specification gt BATS US Options BOE V2 Specification gt BATS US Options FIX Specification Finally for a more narrated presentation on order types available on BATS exchanges refer the following presentations on Brainshark gt BATS Exchange Order Type Guide 6 2 Minimum Trading Increment In equities most orders must be submitted in increments of 0 01 and can be executed in increments of 0 005 i e certain mid point executions However some stocks are eligible for trading in sub penny increments of 0 0001 2015 BATS Global Markets Inc All Rights Reserved Page 5 BATS US Equities Options User Manual Version 3 0 3 In options orders must be submitted and will be executed in increments of 0 01 In addition certain options rules exist that will restrict displaying quotes in increments more granular than 0 05 or 0 10 depending on the underlying security Orders that are priced in increments finer than the minimum trading increment are rejected 6 3 Time in Force Values IOC immediate or cancel DAY available for trading during pre opening and regular trading hours GTD expires at the e
6. protocol with BATS Exchange specific extensions or the proprietary BATS Binary Order Entry protocol The Order Handler validates incoming orders converts them to an internal proprietary format and forwards them to the appropriate matching unit At the core of the system are several Matching Units Each matching unit handles a bin of symbols which can be reallocated to balance the load across the system The matching unit compares the limit price of an incoming order with the price of resting limit orders on the Exchange Order Book and the price of other markets displayed quotes If the order is immediately marketable against the BATS Order Book and the BATS quote is equal to or better than the consolidated quote an immediate match is made and communicated back to Users If another market is displaying a better quote the order will be handled depending on a User s instructions e g forwarded to the other market to attempt to fill the order posted to the Exchange order book cancelled etc Full depth of book market data is available via the BATS TCP PITCH or Multicast PITCH protocols Top of book market data is available through the BATS TCP TOP protocol Auction only data is available through the BATS TCP Auction Feed protocol Subject to SEC approval consolidated quote trade and Aggregated Depth At Price ADAP information for all BATS US equities book will be available via the BATS One feed BATS also offers a last sale product tha
7. 815 7003 billing bats com Network Operations 913 815 7005 noc bats com Career Opportunities jobs bats com Please send resume and a cover letter FAX 913 815 7119 2015 BATS Global Markets Inc All Rights Reserved Page 8 Mailing Address Data Centers BATS US Equities Options User Manual Version 3 0 3 BATS Exchange Inc 8050 Marshall Drive Suite 120 Lenexa KS 66214 Refer to the U S Equity Options Connectivity Manual 2015 BATS Global Markets Inc All Rights Reserved Page 9 Revision History BATS US Equities Options User Manual Version 3 0 3 Document Version Date Description 1 0 0 08 20 10 Initial version 1 0 0 merging BATS Exchange BZX User Manual w BATS Y Exchange BYX User Manual 2 0 0 02 10 12 Renamed to BATS US Equities Options User Manual Included details on BATS Options Add updates related to BZX Exchange becoming a listings Exchange Updated outdated information 3 0 0 12 09 14 Added EDGA EDGxX integration related references and updates 3 0 1 05 05 15 Updated name change for BATS Options Exchange to BZX Options Exchange 3 0 2 3 0 3 07 27 15 11 12 15 Included support for EDGX Options Exchange Updated Pre Market session trading start time to 7 00 AM effective 11 30 15 EDGA 12 1 15 BYX 12 2 15 BZX and 12 3 15 EDGX pending SEC approval Updated Pre Market Queueing session start time on EDGX Option
8. arlier of specified expire time or end of the after hours trading session GTX expires at the end of the after hours trading session RHO participates in the opening auction BZX listed securities or opening process EDGA EDGX BYX BZX works as a day limit order during core market hours and participates in the closing auction BZX listed securities any non executed shares cancelled after the close All remaining orders including GTC Orders expire at the end of regular trading hours 6 4 Routing Users have the option but are not required to use BATS s affiliated broker dealer BATS Trading Inc to route orders to markets other than BZX Exchange BYX Exchange EDGA Exchange or EDGX Exchange Neither Book Only nor BATS Post Only Orders are routed to other markets Book Only orders are only executable on the applicable BATS market BATS Post Only Orders add liquidity and never remove liquidity from the order book unless it s in the economic best interest of the order to do so 6 5 Locking or Crossing the Market Orders that would lock or cross the consolidated market are re priced or rejected depending upon the request of the User 6 6 Throttles No guarantee is made about system performance especially during periods of high volatility and order traffic BATS does maintain a message per second limit at which point new orders and modifies are rejected but this limit is subject to change at any time so contact the BATS Trad
9. e Desk for current limitations 7 Connectivity Choices Users are responsible for choosing their telecommunications provider and arranging for connections to the primary data center in Secaucus New Jersey and the secondary data center in Chicago Illinois Users are strongly encouraged to establish connectivity to both data centers to minimize service disruption in the event of an issue at either data center BATS supports the following connectivity methods gt Cross Connect Users that are co located in either data center may request an in house cross connect from the User s Point of Presence PoP to BATS gt Extranet Providers BATS is currently on network with various extranet providers Refer to the U S Equity Options Connectivity Manual for a current list of extranet providers gt VPN Users may connect via a Virtual Private Network VPN over the Internet utilizing the IP Security Protocol IPSec for certification testing Production network connections are NOT available via VPN 2015 BATS Global Markets Inc All Rights Reserved Page 6 BATS US Equities Options User Manual Version 3 0 3 gt Point to Point Users may connect using a point to point connection using leased lines or other network methods e g MetroE T 3 For more detailed information and instructions on how to connect to the BATS please refer to the U S Equity Options Connectivity Manual 8 Trading Hours 8 1 BZX and BYX Equities Exchanges
10. erred to as BATS Information contained in this document is subject to change at any time For the latest updates please refer to http Awww bats com 2 Our Mission To make markets better BATS Trading Inc was incorporated in June 2005 in response to the rapid consolidation in the ECN space On August 18 2008 BATS Exchange Inc s registration as a national securities exchange was approved by the Securities and Exchange Commission and on October 24 2008 BZX Exchange commenced operations as a national securities exchange BZX Options Exchange was approved by the Securities Exchange Commission on January 26 2010 and the first trade occurred on February 26 2010 EDGX Options Exchange anticipates SEC approval mid Q3 2015 On August 13 2010 BYX Exchange s registration as a national securities exchange was approved by the Securities and Exchange Commission BYX Exchange commenced operations as a national securities exchange on October 15 2010 On August 30 2011 the Securities and Exchange Commission approved BATS BZX Exchange listings rules and on January 24 2012 BZX Exchange launched its first primary listed security On January 30 2014 BATS Global Markets Inc completed its merger with Direct Edge Holdings LLC bringing EDGA Exchange and EDGX Exchange into the BATS Global Markets fold making it the largest exchange operator in U S Equities on any given day by market share as well as the top exchange for retail driven liquidi
11. s and BZX Options to 7 30 AM effective 12 11 15 pending SEC approval 2015 BATS Global Markets Inc All Rights Reserved Page 10
12. t contains only trade information not quotation information In addition to the last sale product BATS offers certain fee based historical data products through the BATS Member Web Portal Users or their clearing firms may request copies of their executions via the BATS FIX DROP protocol This protocol is offered with an Execution Only or Full Order DROP option 5 Technology In the first half of 2015 the BYX Exchange BZX Exchange and BZX Options Exchange trading platforms are being migrated from a CenturyLink data center NJ2 in Weehawken NJ toa world class data center NY5 in Secaucus New Jersey operated by Equinix EDGA Exchange and EDGX Exchange were migrated from the Equinix NY4 data center to the same NY5 data center on January 12 2015 EDGX Options Exchange will be located in the same NY5 data center as the other platforms effective November 2 2015 pending SEC approval The Equinix data center provides a high level of security and availability through redundant and reliable environmental control systems redundant power supplies on site backup generators cooling systems etc Data center personnel are available 24 7 to maintain and service the system The Exchange s trading platform is distributed across several servers to maximize throughput minimize bottlenecks and allow for simplified scalability More servers can be added easily to expand system capacity 2015 BATS Global Markets Inc All Rights Reserved Page 4
13. ty BATS believes competition drives innovation and that there should be a choice between multiple competing electronic markets The Exchange s trading platform was built from the ground up to handle high speed high volume anonymous reliable trading of US equities We continue work rapidly to enhance our product functionality We want to earn your business 3 Become a Member To be a Member of the Exchange s a firm must gt be registered as a broker dealer gt be amember of at least one other national securities exchange or national securities association gt be able to clear trades or must clear through a clearing firm gt meet certain additional criteria prescribed by the Exchange and set forth in Chapter II of the Exchange s Rules Non Members may also gain access to the Exchange through a Sponsored Participant arrangement with a Sponsoring Member firm in accordance with the Exchange s Rules 2015 BATS Global Markets Inc All Rights Reserved Page 3 BATS US Equities Options User Manual Version 3 0 3 Membership application forms as well as information and forms regarding sponsored access to the Exchange are available on the Exchange s website http www bats com Please contact BATS Membership Services at 913 815 7002 for more information about becoming a Member or a Sponsored participant 4 How BATS Works Users connect to the system via the FIX or BOE Order Handler using the industry standard FIX
Download Pdf Manuals
Related Search