Self-Regulatory Organizations; National Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide for a Post Intermarket Sweep Order, 44305-44307 [E8-17412]
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Federal Register / Vol. 73, No. 147 / Wednesday, July 30, 2008 / Notices
respond to broadcast messages related to
the various mechanisms. According to
the ISE, members who responded to the
survey also indicated that reducing the
exposure period to one second would
not impair their ability to participate in
orders executed through the
mechanisms.17 Accordingly, the
Commission believes that it is
consistent with the Act for ISE to reduce
the order handling and exposure times
discussed herein from three seconds to
one second.
The Commission does not agree with
the concerns raised by the commenter.
Based on the ISE’s statements regarding
the survey results, the Commission
believes that market participants should
continue to have opportunities to
compete for exposed bids and offers
within a one second exposure period.
The Commission finds good cause to
approve the proposed rule change prior
to the thirtieth day after publication for
comment in the Federal Register. The
Commission notes that the proposed
rule change was noticed for the full
comment period and no additional
comments were received.18 The
Commission also notes that the
proposed rule change is substantially
similar to a recently approved proposal
submitted by the Chicago Board Options
Exchange, Incorporated 19 and the
Commission believes that ISE has
provided reasonable support for ISE’s
belief that ISE market participants
would continue to have an opportunity
to compete for exposed bids and offers
if exposure periods were reduced to one
second. Therefore, the Commission
finds good cause, consistent with
Section 19(b)(2) of the Act,20 to approve
the proposed rule change on an
accelerated basis.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,21 that the
proposed rule change (SR–ISE–2007–
94), as modified by Amendments No. 1
and 3, be, and hereby is, approved on
an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17440 Filed 7–29–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58217; File No. SR–NSX–
2008–12]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Provide
for a Post Intermarket Sweep Order
July 24, 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 July 18,
2008, 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
substantially prepared by the Exchange.
NSX filed the proposal pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
NSX Rule 11.11(c)(8) to allow ETP
Holders the option of designating an
intermarket sweep order (‘‘ISO’’) as a
‘‘Post Intermarket Sweep Order’’ (‘‘Post
ISO’’). The text of the proposed rule
change is below. Proposed new
language is in italics, and the proposed
deletions are enclosed in brackets:
Rules of National Stock Exchange, Inc.
mstockstill on PROD1PC66 with NOTICES
17 The
ISE stated that all of the eight members
that responded to the specific timing questions, and
two of the three members that did not answer the
specific timing questions, indicated that reducing
the crossing exposure timer to one second would
not impair their ability to participate in ISE crossing
orders. The ISE stated that one member responded
that it could not measure the specific times and
indicated that it would prefer to keep the exposure
periods at three seconds. See Notice.
18 The BOX Letter was received prior to the
publication of the Notice. See BOX Comment, supra
note 4.
19 See Securities Exchange Act Release No. 58088
(July 2, 2008), 73 FR 39747 (July 10, 2008).
20 15 U.S.C. 78s(b)(2).
21 15 U.S.C. 78s(b)(2).
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Chapter XI. Trading Rules
*
*
*
*
*
Rule 11.11. Orders and Modifiers
Users may enter into the System the
types of orders listed in this Rule 11.11,
subject to the limitations set forth in this
Rule or elsewhere in these Rules.
PO 00000
22 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).
4 17 CFR 240.19b–4(f)(6).
1 15
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44305
(a)–(b) No change.
(c) Other Types of Orders and Order
Modifiers.
(1)–(7) No change.
(8) [Incoming] Intermarket Sweep
Order (‘‘ISO’’).
(i) Incoming ISO. The System will
accept incoming intermarket sweep
orders (as such term is defined in
Regulation NMS) from other trading
centers. In order to be eligible for
treatment as an intermarket sweep
order, the order must be marked ‘‘ISO,’’
and the User entering the order must
simultaneously route one or more
additional limit orders marked ‘‘ISO,’’
as necessary, to away markets to execute
against the full displayed size of any
protected quotation for the security with
a price that is superior to the limit price
of the intermarket sweep order entered
in the System. Such orders, if they meet
the requirements of the foregoing
sentence, will be considered immediateor-cancel (IOC) and will be executed
without regard to protected quotations
at away markets consistent with
Regulation NMS.
(ii) Post ISO. A User may designate an
ISO as a ‘‘Post ISO.’’ In order to be
eligible for treatment as a Post ISO, the
order must be marked ‘‘Post ISO,’’ and
in submitting such an order the User
entering the order represents that such
User has simultaneously routed one or
more additional limit orders marked
‘‘ISO,’’ as necessary, to away markets to
execute against the full displayed size of
any protected quotation for the security
with a price that is superior or equal to
the limit price of the Post ISO entered
in the System. Such order, if it meets the
requirements of the foregoing sentence
and is not a Post Only Order pursuant
to Rule 11.11(c)(5), will be executed
without regard to protected quotations
at away markets consistent with
Regulation NMS by sweeping the NSX
Book up to and including its limit price.
A Post ISO which is designated by the
User as a Post Only Order pursuant to
Rule 11.11(c)(5) will be rejected without
execution if, when entered, it is
immediately marketable against
displayed orders in the NSX Book. Any
unfilled portion of a Post ISO that meets
the requirements of Rule 11.22(d)(3) will
be posted at the entered limit price.
(9) No change.
(d) No change.
*
*
*
*
*
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,
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Federal Register / Vol. 73, No. 147 / Wednesday, July 30, 2008 / Notices
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 aspects of such
statements.
mstockstill on PROD1PC66 with NOTICES
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 11.11(c)(8) to allow ETP
Holders the option of posting an order
designated as an ISO.
Under current Rule 11.11(c)(8), the
System will accept incoming
intermarket sweep orders (as such term
is defined in Regulation NMS) from
other trading centers. In order to be
eligible for treatment as an intermarket
sweep order, the order must be marked
‘‘ISO,’’ and the User entering the order
must simultaneously route one or more
additional limit orders marked ‘‘ISO,’’
as necessary, to away markets to execute
against the full displayed size of any
protected quotation for the security with
a price that is superior to the limit price
of the intermarket sweep order entered
in the System. Such orders, if they meet
the requirements of the foregoing
sentence, will be considered immediateor-cancel (IOC) and will be executed
without regard to protected quotations
at away markets consistent with
Regulation NMS.
Under the proposed rule change, by
designating an ISO as a ‘‘Post ISO,’’ the
ETP Holder represents to the Exchange
that the ETP Holder has simultaneously
routed one or more additional limit
orders marked ‘‘ISO,’’ as necessary, to
away markets to execute against the full
displayed size of any protected
quotation for the security with a price
that is superior or equal to the limit
price of the intermarket sweep order
entered in the System. The incoming
Post ISO (unless marked ‘‘post only’’)
will sweep the NSX Book up to its limit
price. Unlike a standard ISO (which is
considered IOC), if residual shares of
the Post ISO are available, they will be
posted at the entered limit price (similar
to existing ‘‘Sweep and Post’’ orders
under Rule 11.11(c)(7)(ii)(A)). Any
unfilled portion of a Post ISO order
following the sweep of the NSX Book
will be posted in the NSX Book and will
be ineligible for routing.
If an incoming Post ISO is marked as
‘‘Post Only’’ pursuant to Rule
11.11(c)(5) and is marketable (within
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23:06 Jul 29, 2008
Jkt 214001
NSX), it will be rejected. Otherwise,
Post Only Post ISOs will be accepted
and posted in the NSX Book at its limit
price providing liquidity.
Similar to ISOs under the current
Rules, Users sending a Post ISO must
simultaneously route one or more
additional limit orders marked ‘‘ISO,’’
as necessary, to away markets to execute
against the full displayed size of any
protected quotation for the security with
a price that is superior or equal to the
limit price of the intermarket sweep
order entered in the System in
accordance with Regulation NMS’ Order
Protection Rule Rules 610 and 611. Post
ISOs may therefore lock or cross
protected quotes at away market centers
that were sent ISOs equal to the limit
price, consistent with Rule 11.22(d)(3),
but may not lock or cross the NSX Top
of Book, and are not routable, subject to
their compliance with this rule and Rule
11.22(d)(3).
Post ISOs may be entered as odd,
round or mixed lots. Only displayed
orders (and displayed orders with
reserves) may be designated as Post
ISOs. Post ISO for Order Delivery will
be processed in the same way as other
order types supported today.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 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.
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 states that written
comments on the proposed rule change
were neither solicited nor received.
PO 00000
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00096
Fmt 4703
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 7 and Rule
19b–4(f)(6) thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.9
Previously, the Commission approved
an order type similar to the one
proposed,10 and this proposal does not
raise any novel issues. For these
reasons, the Commission designates the
proposed rule change as operative upon
filing.
At any time within 60 days of the
filing of the 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of 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. The
Exchange fulfilled this requirement.
9 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
10 See Securities Exchange Act Release No. 54549
(September 29, 2006), 71 FR 59179 (October 6,
2006) (SR–NYSEArca–2006–59) (approving NYSE
Arca Equities Rule 7.31(w)).
8 17
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Federal Register / Vol. 73, No. 147 / Wednesday, July 30, 2008 / Notices
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–2008–12 on the
subject line.
Paper Comments
mstockstill on PROD1PC66 with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NSX–2008–12. 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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. 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–NSX–2008–12 and should
be submitted on or before August 20,
2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–17412 Filed 7–29–08; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 58218; File No. SR–Phlx–2008–
57]
Self-Regulatory Organizations;
Philadelphia Stock Exchange, Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Technical
Amendments to Its Certificate of
Incorporation and By-Laws
July 24, 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 July 23,
2008, the Philadelphia Stock Exchange,
Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘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 concerned solely with
the administration of the Exhange under
section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(3) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Phlx, pursuant to section 19(b)(1)
of the Act 5 and Rule 19b–4 thereunder,6
proposes to make minor technical
amendments to its Certificate of
Incorporation (‘‘Certificate’’) and ByLaws.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.phlx.com/regulatory/
reg_rulefilings.aspx 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
BILLING CODE 8010–01–P
11 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
23:06 Jul 29, 2008
Jkt 214001
PO 00000
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)(3).
5 15 U.S.C. 78s(b)(1).
6 17 CFR 240.19b–4.
2 17
Frm 00097
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44307
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 make minor technical
changes to the Exchange’s Certificate to
conform the Certificate with changes
that were requested by the Delaware
Department of State. The Exchange also
proposes to make related changes to its
By-Laws. Specifically, the Exchange
proposes to delete the words ‘‘Second
Restated’’ in the title of the Exchange’s
Certificate, which currently reads
‘‘Second Restated Certificate of
Incorporation of Philadelphia Stock
Exchange, Inc.’’ and corresponding
references in Article Fourth and By-Law
Article 1, section 1–1(b). The Exchange
also proposes to correct the name of the
Exchange’s registered agent and to
delete the last paragraph of the
Certificate beginning with ‘‘IN
WITNESS WHEREOF’’ and the
execution line.
The Exchange recently received
Commission approval to amend its
governing documents in connection
with the acquisition of Phlx by The
NASDAQ OMX Group, Inc.7 In
connection with filing the Exchange’s
amended Certificate with the State of
Delaware, the Exchange received
requested changes from the Delaware
Department of State. This proposed rule
change incorporates those changes and
makes corresponding changes to the
Exchange’s By-Laws.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with section 6(b)
of the Act 8 in general, and furthers the
objectives of sections 6(b)(1) of the Act 9
in particular, in that it is designed to
enable the Exchange to be so organized
as to have the capacity to be able to
carry out the purposes of the Act and to
comply with and enforce compliance by
members and persons associated with
members with provisions of the Act, the
rules and regulations thereunder, and
Exchange rules.
7 See Securities Exchange Act Release Nos. 58179
(July 17, 2008), 73 FR 42874 (July 23, 2008) (SR–
Phlx–2008–31); and 58183 (July 17, 2008), 73 FR
42850 (July 23, 2008) (SR–NASDAQ–2008–035).
These proposed rule changes, as well as this
proposed rule change, are scheduled to become
operative upon consummation of the merger.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(1).
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]]>Agencies
[Federal Register Volume 73, Number 147 (Wednesday, July 30, 2008)]
[Notices]
[Pages 44305-44307]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17412]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58217; File No. SR-NSX-2008-12]
Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Provide for a Post Intermarket Sweep Order
July 24, 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 July 18, 2008, 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 substantially prepared by the Exchange.
NSX filed the proposal pursuant to Section 19(b)(3)(A) of the Act \3\
and Rule 19b-4(f)(6) 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\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 amend NSX Rule 11.11(c)(8) to allow
ETP Holders the option of designating an intermarket sweep order
(``ISO'') as a ``Post Intermarket Sweep Order'' (``Post ISO''). The
text of the proposed rule change is below. Proposed new language is in
italics, and the proposed deletions are enclosed in brackets:
Rules of National Stock Exchange, Inc.
Chapter XI. Trading Rules
* * * * *
Rule 11.11. Orders and Modifiers
Users may enter into the System the types of orders listed in this
Rule 11.11, subject to the limitations set forth in this Rule or
elsewhere in these Rules.
(a)-(b) No change.
(c) Other Types of Orders and Order Modifiers.
(1)-(7) No change.
(8) [Incoming] Intermarket Sweep Order (``ISO'').
(i) Incoming ISO. The System will accept incoming intermarket sweep
orders (as such term is defined in Regulation NMS) from other trading
centers. In order to be eligible for treatment as an intermarket sweep
order, the order must be marked ``ISO,'' and the User entering the
order must simultaneously route one or more additional limit orders
marked ``ISO,'' as necessary, to away markets to execute against the
full displayed size of any protected quotation for the security with a
price that is superior to the limit price of the intermarket sweep
order entered in the System. Such orders, if they meet the requirements
of the foregoing sentence, will be considered immediate-or-cancel (IOC)
and will be executed without regard to protected quotations at away
markets consistent with Regulation NMS.
(ii) Post ISO. A User may designate an ISO as a ``Post ISO.'' In
order to be eligible for treatment as a Post ISO, the order must be
marked ``Post ISO,'' and in submitting such an order the User entering
the order represents that such User has simultaneously routed one or
more additional limit orders marked ``ISO,'' as necessary, to away
markets to execute against the full displayed size of any protected
quotation for the security with a price that is superior or equal to
the limit price of the Post ISO entered in the System. Such order, if
it meets the requirements of the foregoing sentence and is not a Post
Only Order pursuant to Rule 11.11(c)(5), will be executed without
regard to protected quotations at away markets consistent with
Regulation NMS by sweeping the NSX Book up to and including its limit
price. A Post ISO which is designated by the User as a Post Only Order
pursuant to Rule 11.11(c)(5) will be rejected without execution if,
when entered, it is immediately marketable against displayed orders in
the NSX Book. Any unfilled portion of a Post ISO that meets the
requirements of Rule 11.22(d)(3) will be posted at the entered limit
price.
(9) No change.
(d) No change.
* * * * *
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,
[[Page 44306]]
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 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 Exchange is proposing to amend Exchange Rules 11.11(c)(8) to
allow ETP Holders the option of posting an order designated as an ISO.
Under current Rule 11.11(c)(8), the System will accept incoming
intermarket sweep orders (as such term is defined in Regulation NMS)
from other trading centers. In order to be eligible for treatment as an
intermarket sweep order, the order must be marked ``ISO,'' and the User
entering the order must simultaneously route one or more additional
limit orders marked ``ISO,'' as necessary, to away markets to execute
against the full displayed size of any protected quotation for the
security with a price that is superior to the limit price of the
intermarket sweep order entered in the System. Such orders, if they
meet the requirements of the foregoing sentence, will be considered
immediate-or-cancel (IOC) and will be executed without regard to
protected quotations at away markets consistent with Regulation NMS.
Under the proposed rule change, by designating an ISO as a ``Post
ISO,'' the ETP Holder represents to the Exchange that the ETP Holder
has simultaneously routed one or more additional limit orders marked
``ISO,'' as necessary, to away markets to execute against the full
displayed size of any protected quotation for the security with a price
that is superior or equal to the limit price of the intermarket sweep
order entered in the System. The incoming Post ISO (unless marked
``post only'') will sweep the NSX Book up to its limit price. Unlike a
standard ISO (which is considered IOC), if residual shares of the Post
ISO are available, they will be posted at the entered limit price
(similar to existing ``Sweep and Post'' orders under Rule
11.11(c)(7)(ii)(A)). Any unfilled portion of a Post ISO order following
the sweep of the NSX Book will be posted in the NSX Book and will be
ineligible for routing.
If an incoming Post ISO is marked as ``Post Only'' pursuant to Rule
11.11(c)(5) and is marketable (within NSX), it will be rejected.
Otherwise, Post Only Post ISOs will be accepted and posted in the NSX
Book at its limit price providing liquidity.
Similar to ISOs under the current Rules, Users sending a Post ISO
must simultaneously route one or more additional limit orders marked
``ISO,'' as necessary, to away markets to execute against the full
displayed size of any protected quotation for the security with a price
that is superior or equal to the limit price of the intermarket sweep
order entered in the System in accordance with Regulation NMS' Order
Protection Rule Rules 610 and 611. Post ISOs may therefore lock or
cross protected quotes at away market centers that were sent ISOs equal
to the limit price, consistent with Rule 11.22(d)(3), but may not lock
or cross the NSX Top of Book, and are not routable, subject to their
compliance with this rule and Rule 11.22(d)(3).
Post ISOs may be entered as odd, round or mixed lots. Only
displayed orders (and displayed orders with reserves) may be designated
as Post ISOs. Post ISO for Order Delivery will be processed in the same
way as other order types supported today.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ 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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\5\ 15 U.S.C. 78f(b).
\6\ 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 states that written comments on the proposed rule
change were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of 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. The Exchange fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requests that the Commission waive
the 30-day operative delay.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.\9\
Previously, the Commission approved an order type similar to the one
proposed,\10\ and this proposal does not raise any novel issues. For
these reasons, the Commission designates the proposed rule change as
operative upon filing.
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\9\ For purposes only of waiving the 30-day operative delay, the
Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\10\ See Securities Exchange Act Release No. 54549 (September
29, 2006), 71 FR 59179 (October 6, 2006) (SR-NYSEArca-2006-59)
(approving NYSE Arca Equities Rule 7.31(w)).
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At any time within 60 days of the filing of the 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 44307]]
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-2008-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSX-2008-12. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. 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-NSX-2008-12 and should be
submitted on or before August 20, 2008.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-17412 Filed 7-29-08; 8:45 am]
BILLING CODE 8010-01-P
