Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Effective Period for Rule 2.12, Regarding Third-Party Routing Services in Respect of Orders Entered into NSX BLADE, 18026-18028 [E8-6776]
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<![CDATA[
18026
Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
the principal office of the MSRB. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–MSRB–2007–06 and should
be submitted on or before April 23,
2008.
VII. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 15B(b)(2)(C) of the
Act and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (SR–MSRB–2007–
06), as modified by Amendment Nos. 1
and 2, be, and it hereby is, approved on
an accelerated basis from March 31,
2008 to March 31, 2009, subject to
earlier termination upon Commission
consideration and approval, pursuant to
Section 19(b) of the Act, of a permanent
system.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6837 Filed 4–1–08; 8:45 am]
rmajette on PROD1PC64 with NOTICES
BILLING CODE 8011–01–P
[Release No. 34–57574; File No. SR–NSX–
2008–08]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change To Extend
the Effective Period for Rule 2.12,
Regarding Third-Party Routing
Services in Respect of Orders Entered
into NSX BLADE
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
March 27, 2008.
Pursuant to Section 19(b)(3)(A) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 24,
2008, the National Stock Exchange, Inc.
(‘‘NSX’’ or ‘‘Exchange’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change, as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comment on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to extend
the effective period for Rule 2.12, which
describes the terms under which the
Exchange provides routing services
procured from a third party with respect
to orders entered into its trading system,
NSX BLADE. The Exchange is also
proposing to extend the delay in
effectiveness of Rule 2.11, which relates
to the outbound routing function of the
Exchange’s affiliate, NSX Securities,
LLC (‘‘NSX Securities’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
23 15
24 17
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
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1. Purpose
The Exchange is proposing to amend
Exchange Rules 2.11 and 2.12 to extend
the effective period for Rule 2.12
(relating to the Exchange’s use of a third
party to provide outbound routing of
orders from the Exchange to other
trading centers (‘‘Routing Services’’))
through September 30, 2008, and to
delay the effectiveness of Rule 2.11
(relating to the outbound routing
function of the Exchange’s affiliate, NSX
Securities) until October 1, 2008.
Rule 2.11 provides for certain terms
and conditions under which NSX
Securities, an affiliate of the Exchange,
will provide Routing Services. Rule 2.11
was approved by the Commission in
connection with the approval of the
Exchange’s new trading rules relating to
NSX BLADE on August 31, 2006.5 The
Exchange filed and received approval
for the addition of Rule 2.12, which
provides for terms and conditions of the
Exchange’s use of a third party to
provide Routing Services.6 The
Exchange subsequently filed to extend
the effective period for Rule 2.12.7
Rule 2.12 currently is effective
through March 31, 2008, with Rule 2.11
becoming effective on April 1, 2008. In
connection with the rule filing adding
Rule 2.12,8 the Exchange requested this
finite period of effectiveness so that the
Exchange could offer routing services
through NSX BLADE while NSX
Securities completed its registration
process as a broker-dealer with the
National Association of Securities
Dealers, Inc. (and thus became available
to provide routing services),9 and while
5 See Securities Exchange Act Release No. 54391,
71 FR 52836 (September 7, 2006) (SR–NSX–2006–
08).
6 See Securities Exchange Act Release No. 54808
(November 21, 2006), 71 FR 69163 (November 29,
2006) (SR–NSX–2006–15)
7 See Securities Exchange Act Release Nos. 55624
(April 12, 2007), 72 FR 19732 (April 19, 2007) (SR
NSX 2007–04); 56067 (July 13, 2007), 72 FR 39650
(July 19, 2007) (SR–NSX–2007–08); and 56587
(October 1, 2007), 72 FR 57087 (October 5, 2007)
(SR–NSX–2007–10).
8 See Securities Exchange Act Release No. 54808
(November 21, 2006), 71 FR 69163 (November 29,
2006) (SR–NSX–2006–15).
9 In January 2007, NSX Securities’ application for
registration as a broker-dealer was approved by the
E:\FR\FM\02APN1.SGM
02APN1
Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
the Exchange evaluated its options for
providing routing services to ETP
Holders.
In the instant rule filing, the Exchange
is proposing to extend the effectiveness
of Rule 2.12 through September 30,
2008,10 and to delay the effectiveness of
Rule 2.11 until October 1, 2008, in order
to allow the Exchange more time to
evaluate its options for providing
routing services to ETP Holders and
make any system changes, if necessary.
The ability to route orders entered into
NSX BLADE to away markets for
execution at the best available prices is
a key feature of NSX’s new system.
The Exchange intends to provide
routing services in accordance with
Rule 2.12 until September 30, 2008,
unless the Exchange, with the
Commission’s approval, amends Rule
2.12 before such date. During such time
period, the Exchange intends to evaluate
its options for providing routing
services and make any necessary system
changes. At the conclusion of such time
period, the Exchange may decide to (i)
Continue the approach provided for in
Rule 2.12 on a permanent basis, and not
use NSX Securities as the outbound
router (by filing a proposed rule change
to delete Rule 2.11 and renumbering
Rule 2.12); (ii) use the Exchange’s
original approach of NSX Securities as
an outbound router and discontinue the
approach provided for in Rule 2.12 (by
filing a proposed rule change to delete
Rule 2.12); or (iii) file a proposed rule
change to allow ETP Holders to use
either NSX Securities or the approach
provided for in proposed Rule 2.12 for
outbound routing.
2. Statutory Basis
rmajette on PROD1PC64 with NOTICES
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) of the
Act,11 in general, and Section 6(b)(5) of
the Act,12 in particular, which requires,
among other things, that the rules of an
exchange be designed to promote just
and equitable principles of trade, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
National Association of Securities Dealers, Inc. To
date, the Exchange has not used NSX Securities for
routing services.
10 The Exchange is requesting an additional six
month extension as an outer time limit so as to limit
the need for any further extensions.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
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15:36 Apr 01, 2008
Jkt 214001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change at least
five business days prior to the date of
filing of the proposed rule change or
such shorter time as designated by the
Commission,13 the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 14 and
Rule 19b–4(f)(6) thereunder.15 At any
time within 60 days of the filing of such
proposed rule change, the Commission
may summarily abrogate such rule
change if it appears to the Commission
that such action is necessary or
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
Act.
Under Rule 19b–4(f)(6) of the Act,16
the proposal does not become operative
for 30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay, so that the proposal
may take effect upon filing, which will
allow Rule 2.12 to remain in effect, and
the effectiveness of Rule 2.11 to
continue to be delayed, without
interruption. The Commission believes
that the proposal raises no new issues
and that waiver of the 30-day operative
delay is consistent with the protection
13 NSX
fulfilled this requirement.
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6).
16 Id.
14 15
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18027
of investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay so
that the proposal may take effect upon
filing.17
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NSX–2008–08 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy Morris, Secretary, Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
1090.
All submissions should refer to File
Number SR–NSX–2008–08. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, on official business days between
the hours of 10 a.m. and 3 p.m. Copies
of such filing also will be available for
inspection and copying at the principal
office of the NSX. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
17 For purposes only of waiving the 30-day
operative delay of this proposal, the Commission
has considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
E:\FR\FM\02APN1.SGM
02APN1
18028
Federal Register / Vol. 73, No. 64 / Wednesday, April 2, 2008 / Notices
should refer to File Number SR–NSX–
2008–08 and should be submitted on or
before April 23, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–6776 Filed 4–1–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57567; File No. SR–Phlx–
2008–25]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Implementation
of Phase II of the Penny Pilot Program
March 26, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 20,
2008, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
Phlx. The Exchange has designated this
proposal as one constituting a stated
policy, practice, or interpretation with
respect to the meaning, administration,
or enforcement of an existing rule under
Section 19(b)(3)(A)(i) of the Act 3 and
Rule 19b–4(f)(1) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
rmajette on PROD1PC64 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx proposes to implement
Phase II of a pilot program (the ‘‘pilot’’)
that permits certain options series to be
quoted and traded in increments of
$0.01. Phase II will include all options
included in the current pilot, together
with additional options, as described
more fully below. Phase II of the pilot
(‘‘Phase II’’) will extend through March
27, 2009.
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(i).
4 17 CFR 240.19b–4(f)(1).
1 15
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15:36 Apr 01, 2008
Jkt 214001
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.Phlx.com/exchange/phlxrule-fil.htm), at the Phlx, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Phlx included statements concerning
the purpose of, and basis for, the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. The Phlx has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to implement Phase II of the
pilot. The Exchange believes that
including additional options to the pilot
should provide greater breadth and
depth of experience in quoting and
trading options series in increments of
$0.01, and should therefore enable the
Exchange and the Commission to better
analyze the impact of the pilot on the
options marketplace.
All series in options included in the
pilot trading at a price of less than $3.00
are currently quoted and traded in
minimum increments of $0.01, and pilot
options with a price of $3.00 or higher
are currently quoted and traded in
minimum increments of $0.05, except
that options overlying the PowerShares
QQQ Trust (‘‘QQQQ’’) are quoted and
traded in minimum increments of $0.01
for all series regardless of the price.
The pilot began on January 26, 2007,5
was thereafter extended through
September 27, 2007,6 and was then
extended and expanded to include
additional options.7 Phase I of the
expansion, which began on September
28, 2007, added 22 options that are
among the most actively traded,
5 See Securities Exchange Act Release No. 55153
(January 23, 2007), 72 FR 4553 (January 31, 2007)
(SR–Phlx–2006–74). In that filing, the Exchange
also made conforming amendments to various
Exchange rules in order to be consistent with the
pilot.
6 See Securities Exchange Act Release No. 56141
(July 24, 2007), 72 FR 42216 (August 1, 2007) (SR–
Phlx–2007–53).
7 See Securities Exchange Act Release No. 56563
(September 27, 2007), 72 FR 56429 (October 3,
2007) (SR–Phlx–2007–62).
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
multiply-listed options based on average
daily volume, and together with the
original 13 options in the initial pilot,
represented approximately 35% of the
total industry volume. A list of all pilot
options was communicated to
membership via Exchange circular for
the initial pilot and for Phase I.
The Exchange now proposes to
implement Phase II of the expansion.
Phase II will begin March 28, 2008, and
will extend for one year, through March
27, 2009. Phase II will add 28 options
to the pilot, bringing the total number of
options included in the pilot to 63. An
Exchange Circular, attached as Exhibit 2
to the proposed rule change, identifies
these additional underlying securities.8
Again, all penny options in Phase II
will trade in $0.01 increments in series
trading below $3.00, and in $0.05
increments in series trading at $3.00 and
above. Options on QQQQ will continue
to trade in increments of $0.01 for all
series.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest, by
expanding the pilot to include more
options series.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
8 8 The Exchange Circular attached as Exhibit 2
to the proposal contained an inaccurate date. The
Exchange has represented that it will correct this
inaccuracy before the Exchange Circular is
circulated. Telephone conversation between
Richard Rudolph, Vice President and Counsel,
Phlx, and Jennifer Colihan, Special Counsel,
Division of Trading and Markets, Commission, on
March 26, 2008.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 73, Number 64 (Wednesday, April 2, 2008)]
[Notices]
[Pages 18026-18028]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-6776]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57574; File No. SR-NSX-2008-08]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend the Effective Period for Rule 2.12, Regarding Third-Party
Routing Services in Respect of Orders Entered into NSX BLADE
March 27, 2008.
Pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of
1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 24, 2008, the National Stock Exchange, Inc. (``NSX'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change, as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comment on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to extend the effective period for Rule
2.12, which describes the terms under which the Exchange provides
routing services procured from a third party with respect to orders
entered into its trading system, NSX BLADE. The Exchange is also
proposing to extend the delay in effectiveness of Rule 2.11, which
relates to the outbound routing function of the Exchange's affiliate,
NSX Securities, LLC (``NSX Securities'').
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nsx.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is proposing to amend Exchange Rules 2.11 and 2.12 to
extend the effective period for Rule 2.12 (relating to the Exchange's
use of a third party to provide outbound routing of orders from the
Exchange to other trading centers (``Routing Services'')) through
September 30, 2008, and to delay the effectiveness of Rule 2.11
(relating to the outbound routing function of the Exchange's affiliate,
NSX Securities) until October 1, 2008.
Rule 2.11 provides for certain terms and conditions under which NSX
Securities, an affiliate of the Exchange, will provide Routing
Services. Rule 2.11 was approved by the Commission in connection with
the approval of the Exchange's new trading rules relating to NSX BLADE
on August 31, 2006.\5\ The Exchange filed and received approval for the
addition of Rule 2.12, which provides for terms and conditions of the
Exchange's use of a third party to provide Routing Services.\6\ The
Exchange subsequently filed to extend the effective period for Rule
2.12.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 54391, 71 FR 52836
(September 7, 2006) (SR-NSX-2006-08).
\6\ See Securities Exchange Act Release No. 54808 (November 21,
2006), 71 FR 69163 (November 29, 2006) (SR-NSX-2006-15)
\7\ See Securities Exchange Act Release Nos. 55624 (April 12,
2007), 72 FR 19732 (April 19, 2007) (SR NSX 2007-04); 56067 (July
13, 2007), 72 FR 39650 (July 19, 2007) (SR-NSX-2007-08); and 56587
(October 1, 2007), 72 FR 57087 (October 5, 2007) (SR-NSX-2007-10).
---------------------------------------------------------------------------
Rule 2.12 currently is effective through March 31, 2008, with Rule
2.11 becoming effective on April 1, 2008. In connection with the rule
filing adding Rule 2.12,\8\ the Exchange requested this finite period
of effectiveness so that the Exchange could offer routing services
through NSX BLADE while NSX Securities completed its registration
process as a broker-dealer with the National Association of Securities
Dealers, Inc. (and thus became available to provide routing
services),\9\ and while
[[Page 18027]]
the Exchange evaluated its options for providing routing services to
ETP Holders.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 54808 (November 21,
2006), 71 FR 69163 (November 29, 2006) (SR-NSX-2006-15).
\9\ In January 2007, NSX Securities' application for
registration as a broker-dealer was approved by the National
Association of Securities Dealers, Inc. To date, the Exchange has
not used NSX Securities for routing services.
---------------------------------------------------------------------------
In the instant rule filing, the Exchange is proposing to extend the
effectiveness of Rule 2.12 through September 30, 2008,\10\ and to delay
the effectiveness of Rule 2.11 until October 1, 2008, in order to allow
the Exchange more time to evaluate its options for providing routing
services to ETP Holders and make any system changes, if necessary. The
ability to route orders entered into NSX BLADE to away markets for
execution at the best available prices is a key feature of NSX's new
system.
---------------------------------------------------------------------------
\10\ The Exchange is requesting an additional six month
extension as an outer time limit so as to limit the need for any
further extensions.
---------------------------------------------------------------------------
The Exchange intends to provide routing services in accordance with
Rule 2.12 until September 30, 2008, unless the Exchange, with the
Commission's approval, amends Rule 2.12 before such date. During such
time period, the Exchange intends to evaluate its options for providing
routing services and make any necessary system changes. At the
conclusion of such time period, the Exchange may decide to (i) Continue
the approach provided for in Rule 2.12 on a permanent basis, and not
use NSX Securities as the outbound router (by filing a proposed rule
change to delete Rule 2.11 and renumbering Rule 2.12); (ii) use the
Exchange's original approach of NSX Securities as an outbound router
and discontinue the approach provided for in Rule 2.12 (by filing a
proposed rule change to delete Rule 2.12); or (iii) file a proposed
rule change to allow ETP Holders to use either NSX Securities or the
approach provided for in proposed Rule 2.12 for outbound routing.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) of the Act,\11\ in general, and
Section 6(b)(5) of the Act,\12\ in particular, which requires, among
other things, that the rules of an exchange be designed to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule does not (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change at least five business days prior to the date of
filing of the proposed rule change or such shorter time as designated
by the Commission,\13\ the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6)
thereunder.\15\ At any time within 60 days of the filing of such
proposed rule change, the Commission may summarily abrogate such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\13\ NSX fulfilled this requirement.
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
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Under Rule 19b-4(f)(6) of the Act,\16\ the proposal does not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. The Exchange has requested that
the Commission waive the 30-day operative delay, so that the proposal
may take effect upon filing, which will allow Rule 2.12 to remain in
effect, and the effectiveness of Rule 2.11 to continue to be delayed,
without interruption. The Commission believes that the proposal raises
no new issues and that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay so
that the proposal may take effect upon filing.\17\
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\16\ Id.
\17\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NSX-2008-08 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSX-2008-08. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
the NSX. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions
[[Page 18028]]
should refer to File Number SR-NSX-2008-08 and should be submitted on
or before April 23, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-6776 Filed 4-1-08; 8:45 am]
BILLING CODE 8011-01-P
