Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Effective Date of the Rule Governing Exchange's Directed Order Process on the Boston Options Exchange, 26445-26447 [E9-12718]
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
on foreign inspections more generally,
which they indicated they also had
expressed to the PCAOB in response to
a Board request for comment issued
concurrently with the issuance of the
proposed amendment. We are mindful
of these and other views regarding the
implications of foreign inspections. We
will continue to work with the PCAOB
on these issues and encourage the
PCAOB to consider these comments in
connection with any future action the
Board considers, including the impact
of a further delay of the inspections
affected by this proposed amendment.
The proposed amendment itself does
not limit the PCAOB’s authority to
conduct inspections at any time and
does not affect registered firms’
obligations under the Act. Nor does it,
nor could it, resolve the broader views
expressed by the commenters. However,
as the Board explained, the adjustment
would provide additional time to
continue discussions on outstanding
matters and work towards cooperation
and coordination with authorities in all
relevant jurisdictions. The adjustment
will accomplish this while delaying a
relatively small number of inspections.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
amendment to the Board’s rules
governing inspections of registered
public accounting firms are consistent
with the requirements of the Act and the
securities laws and are necessary or
appropriate in the public interest or for
the protection of investors.
It is therefore ordered, pursuant to
Section 107 of the Act and Section
19(b)(2) of the Exchange Act, that the
proposed rule amendment (File No.
PCAOB–2008–06) be and hereby is
approved.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–12744 Filed 6–1–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59983; File No. SR–BX–
2009–027]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Extending the
Effective Date of the Rule Governing
Exchange’s Directed Order Process on
the Boston Options Exchange
May 27, 2009.
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 May 21,
2009, NASDAQ OMX BX, Inc. (the
‘‘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 has
designated the proposed rule change as
a ‘‘non-controversial’’ rule change
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 proposes to extend the
effective date of the amended rule
governing the Exchange’s Directed
Order Process on the Boston Options
Exchange (‘‘BOX’’) from May 29, 2009 to
November 30, 2009. The text of the
proposed rule change is available from
the principal office of the Exchange, at
the Commission’s Public Reference
Room and also on the Exchange’s
Internet Web site at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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26445
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
On March 14, 2006, the Exchange
proposed an amendment to the BOX
Rules governing the Directed Order 5
process on BOX.6 The Rules were
amended to clearly state that the BOX
Trading Host identifies to an Executing
Participant (‘‘EP’’) the identity of the
firm entering a Directed Order. The
amended rule was to be effective until
June 30, 2006, (‘‘Pilot Program’’) while
the Securities and Exchange
Commission (‘‘Commission’’)
considered a corresponding Exchange
proposal 7 to amend its rules to permit
EPs to choose the firms from whom they
will accept Directed Orders, while
providing complete anonymity of the
firm entering a Directed Order.
On June 20, 2006, the Exchange
proposed extending the effective date of
the rule governing its Directed Order
process on BOX from June 30, 2006 to
September 30, 2006,8 while the
Commission continued to consider the
corresponding Exchange proposal.
On September 11, 2006, January 16,
2007, July 2, 2007, January 18, 2008 and
January 26, 2009 the Exchange proposed
extending the effective date of the
amended rule governing the Directed
Order process on BOX from September
30, 2006 until January 31, 2007,9 from
January 31, 2007 until July 31, 2007,10
from July 31, 2007 until January 31,
2008,11 from January 31, 2008 until
January 31, 2009,12 and from January
5 Capitalized terms not otherwise defined herein
shall have the meanings prescribed within the BOX
Rules.
6 See Securities Exchange Act Release No. 53516
(March 20, 2006), 71 FR 15232 (March 27, 2006)
(SR–BSE–2006–14).
7 See Securities Exchange Act Release No. 53357
(February 23, 2006), 71 FR 10730 (March 2, 2006)
(SR–BSE–2005–52).
8 See Securities Exchange Act Release No. 54082
(June 30, 2006), 71 FR 38913 (July 10, 2006) (SR–
BSE–2006–29).
9 See Securities Exchange Act Release No. 54469
(September 19, 2006), 71 FR 56201 (September 26,
2006) (SR–BSE–2006–38).
10 See Securities Exchange Act Release No. 55139
(January 19, 2007), 72 FR 3448 (January 25, 2007)
(SR–BSE–2007–01).
11 See Securities Exchange Act Release No. 56014
(July 5, 2007), 72 FR 38104 (July 12, 2007) (SR–
BSE–2007–31).
12 See Securities Exchange Act Release No. 57195
(January 24, 2008), 73 FR 5610 (January 30, 2008)
(SR–BSE–2008–04).
E:\FR\FM\02JNN1.SGM
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26446
Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
31, 2009 until May 29, 2009,13
respectively, while the Commission
considered the corresponding Exchange
proposal to amend the BOX Rules to
permit EPs to choose the firms from
whom they will accept Directed Orders,
while providing complete anonymity of
the firm entering a Directed Order.
This filing from the Exchange again
proposes extending the effective date of
the amended rule governing its Directed
Order process on BOX, from May 29,
2009 to November 30, 2009.14 In the
event the Commission reaches a
decision with respect to the
corresponding Exchange proposal to
amend the BOX Rules before November
30, 2009, the amended rule governing
the Directed Order process on the BOX
will cease to be effective at the time of
that decision.
2. Statutory Basis
The amended rule is designed to
clarify the information contained in a
Directed Order. This proposed rule
filing seeks to extend the amended
rule’s effectiveness from May 29, 2009
to November 30, 2009. This extension
will afford the Commission the
necessary time to consider the
Exchange’s corresponding proposal to
amend the BOX rule to permit EPs to
choose the firms from whom they will
accept Directed Orders while providing
complete anonymity of the firm entering
a Directed Order. Accordingly, the
Exchange believes that the proposal is
consistent with the requirements of
Section 6(b) of the Act,15 in general, and
Section 6(b)(5) of the Act,16 in
particular, in that it is designed to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to
and perfect the mechanism for 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 result in
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
The Exchange has neither solicited
nor received comments on the proposed
rule change.
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) 17 of the Act and
Rule 19b–4(f)(6) thereunder.18 As
required under Rule 19b–4(f)(6)(iii),19
the Exchange provided 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 the
filing of the proposed rule change.
A proposed rule change filed under
Rule 19b–4(f)(6) 20 normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 21 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, as
specified in Rule 19b–4(f)(6)(iii),22
which would make the rule change
effective and operative upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver
would continue to conform the BOX
rules to BOX’s current practice and
clarify that Directed Orders on BOX are
not anonymous without interruption.23
Accordingly, the Commission
designates the proposed rule change
17 15
13 See
Securities Exchange Act Release No. 59311
(January 28, 2009), 74 FR 6071 (February 4, 2009)
(SR–BX–2009–007).
14 In the event that the issue of anonymity in the
Directed Order process is not resolved by November
30, 2009 the Exchange will consider whether to
submit another filing under Rule 19b–4(f)(6)
extending this rule and system process.
15 15 U.S.C. 78f(b).
16 15 U.S.C. 78f(b)(5).
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
19 17 CFR 240.19b–4(f)(6)(iii).
20 17 CFR 240.19b–4(f)(6).
21 17 CFR 240.19b–4(f)(6)(iii).
22 Id.
23 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
18 17
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
operative upon filing with the
Commission.
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.
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–BX–2009–027 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BX–2009–027. 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 such 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
E:\FR\FM\02JNN1.SGM
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–BX–2009–027 and should
be submitted on or before June 23, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–12718 Filed 6–1–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59981; File No. SR–CBOE–
2009–024]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Granting Approval
of a Proposed Rule Change Related to
Its Obvious Error Rules
May 27, 2009.
I. Introduction
On April 8, 2009, the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend CBOE Rules 6.25 and 24.16
(collectively, the ‘‘Obvious Error Rules’’)
pertaining to the nullification and
adjustment of options transactions. The
proposed rule change was published for
comment in the Federal Register on
April 24, 2009.3 The Commission
received no comment letters on the
proposal. This order approves the
proposed rule change.
II. Discussion
A. Merging Rules
The Exchange proposes to merge Rule
24.16 (which currently relates to only
index, ETF and HOLDRS options) into
Rule 6.25 (which currently relates to
only equity options) to form a single
obvious error rule.
B. Obvious Pricing Errors
1. Definition of Theoretical Price
The Exchange proposes to amend
Rule 6.25’s definition of ‘‘Theoretical
Price’’ to base it on the national best bid
or offer (‘‘NBBO’’) instead of the market
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 59793
(April 20, 2009), 74 FR 18762.
1 15
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16:43 Jun 01, 2009
Jkt 217001
with the most liquidity. Using the
NBBO to define Theoretical Price is
similar to how ‘‘fair market value’’ is
currently defined for obvious pricing
errors under Rule 24.16. The Exchange
also proposes to permit Trading
Officials to establish the Theoretical
Price when the NBBO for the affected
series, just prior to the erroneous
transaction, is at least two times the
permitted bid/ask differential under
subparagraph (b)(iv)(A) of Rule 8.7.
2. Non-CBOE Market Makers
The Exchange proposes to provide for
the adjustment of Obvious Pricing Error
transactions involving non-CBOE
Market-Makers, provided the adjusted
price does not violate the non-CBOE
Market-Maker’s limit price.
3. ROS and HOSS Rotations
The Exchange proposes to revise the
Obvious Pricing Error provision as it
pertains to transactions occurring as
part of the Rule 6.2A, Rapid Opening
System (‘‘ROS’’), or Rule 6.2B, Hybrid
Opening System (‘‘HOSS’’), rotations.
With respect to regular ROS and HOSS
rotations, the Exchange is proposing to
add a condition that the option contract
quantity subject to nullification or
adjustment would not exceed the size of
the first quote after the transaction(s) in
question that does not reflect the
erroneous transaction(s). Any
nullifications or adjustments would
occur on a pro rata basis considering the
overall size of the ROS or HOSS
opening trade. With respect to HOSS
rotations in index options series being
used to calculate the final settlement
price of a volatility index, the Exchange
proposes to carryover a condition from
Rule 24.16 that the first quote after the
transaction(s) in question that does not
reflect the erroneous transaction(s) must
be for at least the size of the HOSS
opening transaction(s). If the size of the
quote is less than the size of the opening
transaction(s), then the Obvious Pricing
Error provision shall not apply.
4. Non-Broker-Dealer Customer Orders
Entered Before the Opening Rotation
The Exchange proposes to extend the
expanded notification period applicable
to transactions during opening rotations
involving non-broker-dealer Customers
to include certain orders entered before
the opening that are executed
immediately following the opening
rotation. Specifically, Rule 6.25
currently requires that members notify
CBOE Trading Officials or designated
personnel in the control room within a
short time period following the
execution of a trade (generally 15
minutes) if they believe the trade
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26447
qualifies as an Obvious Pricing Error.
However, an expanded notification
period is available for transactions
during option rotation occurring as part
of ROS or HOSS where at least one
party to the transaction is a non-brokerdealer Customer. The Exchange
proposes to make the expanded
notification period applicable to
transactions involving non-brokerdealer Customers’ marketable orders
that are entered before the opening
rotation and that are executed as part of
the Hybrid Agency Liaison (‘‘HAL’’) on
the opening process and certain
transactions involving non-brokerdealer Customers’ complex orders that
are entered before the opening rotation
and that are executed immediately
following the opening rotation through
the Exchange’s electronic Complex
Order Book.
5. Binary Options
The Exchange proposes to provide
that any price adjustment for a binary
option series (including any adjustment
penalty that may be applicable to
transactions between CBOE MarketMakers) shall not exceed the applicable
exercise settlement amount for the
binary option.
C. Catastrophic Pricing Errors
The Exchange proposes to amend
Rule 6.25 to add criteria for identifying
‘‘Catastrophic Errors’’ and making
adjustments when Catastrophic Errors
occur, as well as a streamlined
procedure for reviewing actions taken in
these extreme circumstances. Under
Rule 6.25, trades that result from an
Obvious Pricing Error may be adjusted
or busted according to objective
standards. Under the Rule, whether an
Obvious Pricing error has occurred is
determined by comparing the execution
price to the Theoretical Price of the
option. The rule requires that members
notify CBOE Trading Officials or
designated personnel in the control
room within a short time period
following the execution of a trade
(generally 15 minutes) if they believe
the trade qualifies as an Obvious Pricing
Error. Trades that qualify for adjustment
or are nullified under the Rule are
compared to a price that matches the
theoretical price plus or minus an
adjustment value for transactions
between CBOE Market Makers, which is
$0.15 if the Theoretical Value is under
$3 and $0.30 if the Theoretical Value is
at or above $3. By adjusting trades above
or below the Theoretical Price, the rule
assesses a ‘‘penalty’’ in that the
adjustment price is not as favorable as
the amount the party making the error
E:\FR\FM\02JNN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26445-26447]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12718]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59983; File No. SR-BX-2009-027]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Extending
the Effective Date of the Rule Governing Exchange's Directed Order
Process on the Boston Options Exchange
May 27, 2009.
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 May 21, 2009, NASDAQ OMX BX, Inc. (the ``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 has designated the proposed rule
change as a ``non-controversial'' rule change 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 proposes to extend the effective date of the amended
rule governing the Exchange's Directed Order Process on the Boston
Options Exchange (``BOX'') from May 29, 2009 to November 30, 2009. The
text of the proposed rule change is available from the principal office
of the Exchange, at the Commission's Public Reference Room and also on
the Exchange's Internet Web site at https://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/.
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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for the Proposed Rule Change
1. Purpose
On March 14, 2006, the Exchange proposed an amendment to the BOX
Rules governing the Directed Order \5\ process on BOX.\6\ The Rules
were amended to clearly state that the BOX Trading Host identifies to
an Executing Participant (``EP'') the identity of the firm entering a
Directed Order. The amended rule was to be effective until June 30,
2006, (``Pilot Program'') while the Securities and Exchange Commission
(``Commission'') considered a corresponding Exchange proposal \7\ to
amend its rules to permit EPs to choose the firms from whom they will
accept Directed Orders, while providing complete anonymity of the firm
entering a Directed Order.
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\5\ Capitalized terms not otherwise defined herein shall have
the meanings prescribed within the BOX Rules.
\6\ See Securities Exchange Act Release No. 53516 (March 20,
2006), 71 FR 15232 (March 27, 2006) (SR-BSE-2006-14).
\7\ See Securities Exchange Act Release No. 53357 (February 23,
2006), 71 FR 10730 (March 2, 2006) (SR-BSE-2005-52).
---------------------------------------------------------------------------
On June 20, 2006, the Exchange proposed extending the effective
date of the rule governing its Directed Order process on BOX from June
30, 2006 to September 30, 2006,\8\ while the Commission continued to
consider the corresponding Exchange proposal.
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 54082 (June 30,
2006), 71 FR 38913 (July 10, 2006) (SR-BSE-2006-29).
---------------------------------------------------------------------------
On September 11, 2006, January 16, 2007, July 2, 2007, January 18,
2008 and January 26, 2009 the Exchange proposed extending the effective
date of the amended rule governing the Directed Order process on BOX
from September 30, 2006 until January 31, 2007,\9\ from January 31,
2007 until July 31, 2007,\10\ from July 31, 2007 until January 31,
2008,\11\ from January 31, 2008 until January 31, 2009,\12\ and from
January
[[Page 26446]]
31, 2009 until May 29, 2009,\13\ respectively, while the Commission
considered the corresponding Exchange proposal to amend the BOX Rules
to permit EPs to choose the firms from whom they will accept Directed
Orders, while providing complete anonymity of the firm entering a
Directed Order.
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 54469 (September 19,
2006), 71 FR 56201 (September 26, 2006) (SR-BSE-2006-38).
\10\ See Securities Exchange Act Release No. 55139 (January 19,
2007), 72 FR 3448 (January 25, 2007) (SR-BSE-2007-01).
\11\ See Securities Exchange Act Release No. 56014 (July 5,
2007), 72 FR 38104 (July 12, 2007) (SR-BSE-2007-31).
\12\ See Securities Exchange Act Release No. 57195 (January 24,
2008), 73 FR 5610 (January 30, 2008) (SR-BSE-2008-04).
\13\ See Securities Exchange Act Release No. 59311 (January 28,
2009), 74 FR 6071 (February 4, 2009) (SR-BX-2009-007).
---------------------------------------------------------------------------
This filing from the Exchange again proposes extending the
effective date of the amended rule governing its Directed Order process
on BOX, from May 29, 2009 to November 30, 2009.\14\ In the event the
Commission reaches a decision with respect to the corresponding
Exchange proposal to amend the BOX Rules before November 30, 2009, the
amended rule governing the Directed Order process on the BOX will cease
to be effective at the time of that decision.
---------------------------------------------------------------------------
\14\ In the event that the issue of anonymity in the Directed
Order process is not resolved by November 30, 2009 the Exchange will
consider whether to submit another filing under Rule 19b-4(f)(6)
extending this rule and system process.
---------------------------------------------------------------------------
2. Statutory Basis
The amended rule is designed to clarify the information contained
in a Directed Order. This proposed rule filing seeks to extend the
amended rule's effectiveness from May 29, 2009 to November 30, 2009.
This extension will afford the Commission the necessary time to
consider the Exchange's corresponding proposal to amend the BOX rule to
permit EPs to choose the firms from whom they will accept Directed
Orders while providing complete anonymity of the firm entering a
Directed Order. Accordingly, the Exchange believes that the proposal is
consistent with the requirements of Section 6(b) of the Act,\15\ in
general, and Section 6(b)(5) of the Act,\16\ in particular, in that it
is designed to foster cooperation and coordination with persons engaged
in regulating, clearing, settling, processing information with respect
to, and facilitating transactions in securities, to remove impediments
to and perfect the mechanism for a free and open market and a national
market system and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in 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
The Exchange has neither solicited nor received comments on the
proposed rule change.
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) \17\ of the Act and Rule 19b-4(f)(6)
thereunder.\18\ As required under Rule 19b-4(f)(6)(iii),\19\ the
Exchange provided 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 the filing of the proposed rule change.
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
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A proposed rule change filed under Rule 19b-4(f)(6) \20\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \21\ 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, as specified in Rule 19b-
4(f)(6)(iii),\22\ which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would continue to conform the BOX
rules to BOX's current practice and clarify that Directed Orders on BOX
are not anonymous without interruption.\23\ Accordingly, the Commission
designates the proposed rule change operative upon filing with the
Commission.
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\20\ 17 CFR 240.19b-4(f)(6).
\21\ 17 CFR 240.19b-4(f)(6)(iii).
\22\ Id.
\23\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
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-BX-2009-027 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2009-027. 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 such 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
[[Page 26447]]
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BX-2009-027
and should be submitted on or before June 23, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
Florence E. Harmon,
Deputy Secretary.
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\24\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-12718 Filed 6-1-09; 8:45 am]
BILLING CODE 8010-01-P
