Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program That Allows for No Minimum Size Order Requirement for the Price Improvement Period Process on the Boston Options Exchange Facility, 36805-36807 [E9-17637]
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Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
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:
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–CBOE–2009–051 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.
srobinson on DSKHWCL6B1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17638 Filed 7–23–09; 8:45 am]
[Release No. 34–60337; File No. SR–BX–
2009–038]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend a
Pilot Program That Allows for No
Minimum Size Order Requirement for
the Price Improvement Period Process
on the Boston Options Exchange
Facility
July 17, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
All submissions should refer to File
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 13,
Number SR–CBOE–2009–051. This file
2009 NASDAQ OMX BX, Inc. (the
number should be included on the
subject line if e-mail is used. To help the ‘‘Exchange’’) filed with the Securities
and Exchange Commission
Commission process and review your
(‘‘Commission’’) the proposed rule
comments more efficiently, please use
only one method. The Commission will change as described in Items I and II
post all comments on the Commission’s below, which Items have been prepared
by the self-regulatory organization. The
Internet Web site (https://www.sec.gov/
Exchange filed the proposed rule change
rules/sro.shtml). Copies of the
pursuant to Section 19(b)(3)(A) of the
submission, all subsequent
Act,3 and Rule 19b–4(f)(6) thereunder,4
amendments, all written statements
which renders the proposal effective
with respect to the proposed rule
upon filing with the Commission. The
change that are filed with the
Commission is publishing this notice to
Commission, and all written
solicit comments on the proposed rule
communications relating to the
from interested persons.
proposed rule change between the
Commission and any person, other than I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
those that may be withheld from the
the Proposed Rule Change
public in accordance with the
provisions of 5 U.S.C. 552, will be
The Exchange proposes to amend the
available for inspection and copying in
Supplementary Material to Section 18
the Commission’s Public Reference
(the Price Improvement Period ‘‘PIP’’) of
Chapter V of the Rules of the Boston
Room, 100 F Street, NE., Washington,
Options Exchange Group, LLC (‘‘BOX’’)
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. to extend a pilot program that permits
BOX to have no minimum size
Copies of such filing also will be
requirement for orders entered into the
available for inspection and copying at
the principal office of the Exchange. All PIP and under certain circumstances
permits the premature termination of
comments received will be posted
the PIP process (‘‘PIP Pilot Program’’).
without change; the Commission does
The text of the proposed rule change is
not edit personal identifying
available from the principal office of the
information from submissions. You
Exchange, at the Commission’s Public
should submit only information that
Reference Room and also on the
you wish to make available publicly. All
submissions should refer to File
15 17 CFR 200.30–3(a)(12).
Number SR–CBOE–2009–051 and
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
should be submitted on or before
3 15 U.S.C. 78s(b)(3)(A).
August 14, 2009.
4 17
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18:55 Jul 23, 2009
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PO 00000
CFR 240.19b–4(f)(6).
Frm 00157
Fmt 4703
Sfmt 4703
36805
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
self-regulatory organization 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 self-regulatory organization 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 extend the PIP Pilot
Program under the BOX Rules for
twelve (12) additional months. The PIP
Pilot Program allows BOX to have no
minimum size requirement for orders
entered into the PIP process and under
certain circumstances permits the
premature termination of the PIP
process.5 The proposed rule change
reflects change to the text of
Supplementary Material .01 to Section
18 of Chapter V of the BOX Rules and
seeks to extend the operation of the PIP
Pilot Program until July 17, 2010.
The Exchange notes that the PIP Pilot
Program provides small customer orders
with benefits not available under the
rules of some other exchanges. One of
the important factors of the PIP Pilot
Program is that it guarantees
Participants the right to trade with their
customer orders that are less than 50
contracts. In particular, any order
5 The Pilot Program is currently set to expire on
July 18, 2009. See Securities Exchange Act Release
No. 58942 (November 13, 2008), 73 FR 70394
(November 20, 2008) (SR–BSE–2008–49); See also
Securities and Exchange Act Release No. 58195
(July 18, 2008), 73 FR 43801 (July 28, 2008) (SR–
BSE–2008–39); See also Securities Exchange Act
Release No. 55999 (July 2, 2007), 72 FR 37549 (July
10, 2007) (SR–BSE–2007–27); See also Securities
Exchange Act Release No. 54066 (June 29, 2006), 71
FR 38434 (July 6, 2006) (SR–BSE–2006–24); See
also Securities Exchange Act Release No. 52149
(July 28, 2005), 70 FR 44704 (August 3, 2005) (SR–
BSE–2005–22); See also Securities Exchange Act
Release No. 49068 (January 13, 2004), 69 FR 2775
(January 20, 2004) (SR–BSE–2002–15) (‘‘Original
PIP Pilot Program Approval Order’’). See also
Securities Exchange Act Release No. 51821 (June
10, 2005), 70 FR 35143 (June 16, 2005) (SR–BSE–
2004–51) (Order approving, among other things,
under certain circumstances, the premature
termination of a PIP process).
E:\FR\FM\24JYN1.SGM
24JYN1
srobinson on DSKHWCL6B1PROD with NOTICES
36806
Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
entered into the PIP is guaranteed an
execution at the end of the auction at a
price at least equal to the national best
bid or offer.
In further support of this proposed
rule change, and as required by the
Original PIP Pilot Program Approval
Order, the Exchange represents that
BOX has been submitting to the
Exchange and to the Commission a PIP
Pilot Program Report, offering detailed
data from, and analysis of, the PIP Pilot
Program. Although BOX is submitting
the reports, the Exchange notes that it is
also responsible for the timeliness and
the accuracy of the information.
To aid the Commission in its
evaluation of the PIP Pilot Program,
BOX has represented to the Exchange
that BOX will provide the following
additional information each month: (1)
The number of orders of 50 contracts or
greater entered into the PIP auction; (2)
The percentage of all orders of 50
contracts or greater sent to BOX that are
entered into BOX’s PIP auction; (3) The
spread in the option, at the time an
order of 50 contracts or greater is
submitted to the PIP auction; (4) Of PIP
trades for orders of fewer than 50
contracts, the percentage done at the
National Best Bid or Offer (‘‘NBBO’’)
plus $.01, plus $.02, plus $.03, etc.; (5)
Of PIP trades for orders of 50 contracts
or greater, the percentage done at the
NBBO plus $.01, plus $.02, plus $.03,
etc.; (6) The number of orders submitted
by Order Flow Providers (‘‘OFPs’’) when
the spread was $.05, $.10, $.15, etc. For
each spread, BOX will specify the
percentage of contracts in orders of
fewer than 50 contracts submitted to
BOX’s PIP that were traded by: (a) The
OFP that submitted the order to the PIP;
(b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d)
Public Customer Orders (including
Customer PIP Orders (‘‘CPOs’’)); and (e)
unrelated orders (orders in standard
increments entered during the PIP). For
each spread, BOX will also specify the
percentage of contracts in orders of 50
contracts or greater submitted to BOX’s
PIP that were traded by: (a) The OFP
that submitted the order to the PIP; (b)
BOX Market Makers assigned to the
class; (c) other BOX Participants; (d)
Public Customer Orders (including
CPOs); and (e) unrelated orders (orders
in standard increments entered during
PIP); (7) For the first Wednesday of each
month: (a) The total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
VerDate Nov<24>2008
18:55 Jul 23, 2009
Jkt 217001
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc.; and (8) For the third Wednesday of
each month: (a) The total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc.
2. Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 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. The Exchange believes
that the data demonstrates that there is
sufficient investor interest and demand
to extend the PIP Pilot Program for an
additional twelve (12) months. The
Exchange represents that the Pilot
Program is designed to provide
investors with real and significant price
PO 00000
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00158
Fmt 4703
Sfmt 4703
improvement regardless of the size of
the order.
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 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, as amended: (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) 8 of the Act and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 11 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),12
which would make the rule change
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 will allow
the PIP Pilot Program to continue
without interruption.13 Accordingly, the
8 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 has fulfilled this requirement.
10 Id.
11 17 CFR 240.19b–4(f)(6)(iii).
12 Id.
13 For purposes only of waiving the operative
delay for this proposal, the Commission has
9 17
E:\FR\FM\24JYN1.SGM
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Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Notices
Commission designates the proposed
rule change 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–2009–038 on the
subject line.
srobinson on DSKHWCL6B1PROD with NOTICES
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–2009–038. 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 will also be available
for inspection and copying at the
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Nov<24>2008
18:55 Jul 23, 2009
Jkt 217001
principal office of the self-regulatory
organization. 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–BX–
2009–038 and should be submitted on
or before August 14, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–17637 Filed 7–23–09; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice: 6705]
Correction to 30–Day Notice of
Proposed Information Collection: DS–
7655, Iraqi Citizens and Nationals
Employed by U.S. Federal Contractors,
Grantees, and Cooperative Agreement
Partners, OMB Control Number 1405–
0184; Corrections
AGENCY:
ACTION:
Department of State.
Notice; correction.
SUMMARY: This document contains a
correction to the 30–Day Notice of
Proposed Information Collection: DS–
7655, Iraqi Citizens and Nationals
Employed by U.S. Federal Contractors,
Grantees, and Cooperative Agreement
Partners, OMB Control Number 1405–
0184 published in the Federal Register
on Tuesday, July 14, 2009, in Volume
74–No. 133, page 34070. The document
contained incorrect ‘Estimated Number
of Responses’ due to a typographical
error.
FOR FURTHER INFORMATION CONTACT:
Robert S. Lower (POC), Department of
State, A/LM Room 525, P.O. Box 9115
Rosslyn Station, Arlington, VA 22219,
who may be reached at 703–875–5822
or at LowerRS@state.gov.
Correction
In the Federal Register of Tuesday,
July 14, 2009, in Volume 74–No. 133,
page 34070, in the 3rd column 7th
bullet, correct the 7th bullet to read:
• Estimated Number of Responses:
200.
PO 00000
14 17
CFR 200.30–3(a)(12).
Frm 00159
Fmt 4703
Sfmt 4703
36807
Dated: July 15, 2009.
William H. Moser,
Deputy Assistant Secretary, Office of Logistics
Management, Bureau of Administration,
Department of State.
[FR Doc. E9–17549 Filed 7–23–09; 8:45 am]
BILLING CODE 4710–24–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2009–0001–N–17]
Proposed Agency Information
Collection Activities; Comment
Request
AGENCY: Federal Railroad
Administration, DOT.
ACTION: Notice.
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995 and
its implementing regulations, the
Federal Railroad Administration (FRA)
hereby announces that it is seeking
renewal of the following currently
approved information collection
activities. Before submitting these
information collection requirements for
clearance by the Office of Management
and Budget (OMB), FRA is soliciting
public comment on specific aspects of
the activities identified below.
DATES: Comments must be received no
later than September 22, 2009.
ADDRESSES: Submit written comments
on any or all of the following proposed
activities by mail to either: Mr. Robert
Brogan, Office of Safety, Planning and
Evaluation Division, RRS–21, Federal
Railroad Administration, 1200 New
Jersey Ave., SE., Mail Stop 25,
Washington, DC 20590, or Ms. Nakia
Jackson, Office of Information
Technology, RAD–20, Federal Railroad
Administration, 1200 New Jersey Ave.,
SE., Mail Stop 35, Washington, DC
20590. Commenters requesting FRA to
acknowledge receipt of their respective
comments must include a self-addressed
stamped postcard stating, ‘‘Comments
on OMB control number 2130–0509.’’
Alternatively, comments may be
transmitted via facsimile to (202) 493–
6216 or (202) 493–6497, or via e-mail to
Mr. Brogan at robert.brogan@dot.gov, or
to Ms. Jackson at
nakia.jackson@dot.gov. Please refer to
the assigned OMB control number in
any correspondence submitted. FRA
will summarize comments received in
response to this notice in a subsequent
notice and include them in its
information collection submission to
OMB for approval.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert Brogan, Office of Safety,
E:\FR\FM\24JYN1.SGM
24JYN1
]]>Agencies
[Federal Register Volume 74, Number 141 (Friday, July 24, 2009)]
[Notices]
[Pages 36805-36807]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17637]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60337; File No. SR-BX-2009-038]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend a
Pilot Program That Allows for No Minimum Size Order Requirement for the
Price Improvement Period Process on the Boston Options Exchange
Facility
July 17, 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 July 13, 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 self-regulatory organization. The Exchange filed the
proposed 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 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 amend the Supplementary Material to
Section 18 (the Price Improvement Period ``PIP'') of Chapter V of the
Rules of the Boston Options Exchange Group, LLC (``BOX'') to extend a
pilot program that permits BOX to have no minimum size requirement for
orders entered into the PIP and under certain circumstances permits the
premature termination of the PIP process (``PIP Pilot Program''). 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 self-regulatory organization
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 self-regulatory organization
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 extend the PIP Pilot
Program under the BOX Rules for twelve (12) additional months. The PIP
Pilot Program allows BOX to have no minimum size requirement for orders
entered into the PIP process and under certain circumstances permits
the premature termination of the PIP process.\5\ The proposed rule
change reflects change to the text of Supplementary Material .01 to
Section 18 of Chapter V of the BOX Rules and seeks to extend the
operation of the PIP Pilot Program until July 17, 2010.
---------------------------------------------------------------------------
\5\ The Pilot Program is currently set to expire on July 18,
2009. See Securities Exchange Act Release No. 58942 (November 13,
2008), 73 FR 70394 (November 20, 2008) (SR-BSE-2008-49); See also
Securities and Exchange Act Release No. 58195 (July 18, 2008), 73 FR
43801 (July 28, 2008) (SR-BSE-2008-39); See also Securities Exchange
Act Release No. 55999 (July 2, 2007), 72 FR 37549 (July 10, 2007)
(SR-BSE-2007-27); See also Securities Exchange Act Release No. 54066
(June 29, 2006), 71 FR 38434 (July 6, 2006) (SR-BSE-2006-24); See
also Securities Exchange Act Release No. 52149 (July 28, 2005), 70
FR 44704 (August 3, 2005) (SR-BSE-2005-22); See also Securities
Exchange Act Release No. 49068 (January 13, 2004), 69 FR 2775
(January 20, 2004) (SR-BSE-2002-15) (``Original PIP Pilot Program
Approval Order''). See also Securities Exchange Act Release No.
51821 (June 10, 2005), 70 FR 35143 (June 16, 2005) (SR-BSE-2004-51)
(Order approving, among other things, under certain circumstances,
the premature termination of a PIP process).
---------------------------------------------------------------------------
The Exchange notes that the PIP Pilot Program provides small
customer orders with benefits not available under the rules of some
other exchanges. One of the important factors of the PIP Pilot Program
is that it guarantees Participants the right to trade with their
customer orders that are less than 50 contracts. In particular, any
order
[[Page 36806]]
entered into the PIP is guaranteed an execution at the end of the
auction at a price at least equal to the national best bid or offer.
In further support of this proposed rule change, and as required by
the Original PIP Pilot Program Approval Order, the Exchange represents
that BOX has been submitting to the Exchange and to the Commission a
PIP Pilot Program Report, offering detailed data from, and analysis of,
the PIP Pilot Program. Although BOX is submitting the reports, the
Exchange notes that it is also responsible for the timeliness and the
accuracy of the information.
To aid the Commission in its evaluation of the PIP Pilot Program,
BOX has represented to the Exchange that BOX will provide the following
additional information each month: (1) The number of orders of 50
contracts or greater entered into the PIP auction; (2) The percentage
of all orders of 50 contracts or greater sent to BOX that are entered
into BOX's PIP auction; (3) The spread in the option, at the time an
order of 50 contracts or greater is submitted to the PIP auction; (4)
Of PIP trades for orders of fewer than 50 contracts, the percentage
done at the National Best Bid or Offer (``NBBO'') plus $.01, plus $.02,
plus $.03, etc.; (5) Of PIP trades for orders of 50 contracts or
greater, the percentage done at the NBBO plus $.01, plus $.02, plus
$.03, etc.; (6) The number of orders submitted by Order Flow Providers
(``OFPs'') when the spread was $.05, $.10, $.15, etc. For each spread,
BOX will specify the percentage of contracts in orders of fewer than 50
contracts submitted to BOX's PIP that were traded by: (a) The OFP that
submitted the order to the PIP; (b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d) Public Customer Orders
(including Customer PIP Orders (``CPOs'')); and (e) unrelated orders
(orders in standard increments entered during the PIP). For each
spread, BOX will also specify the percentage of contracts in orders of
50 contracts or greater submitted to BOX's PIP that were traded by: (a)
The OFP that submitted the order to the PIP; (b) BOX Market Makers
assigned to the class; (c) other BOX Participants; (d) Public Customer
Orders (including CPOs); and (e) unrelated orders (orders in standard
increments entered during PIP); (7) For the first Wednesday of each
month: (a) The total number of PIP auctions on that date; (b) the
number of PIP auctions where the order submitted to the PIP was fewer
than 50 contracts; (c) the number of PIP auctions where the order
submitted to the PIP was 50 contracts or greater; (d) the number of PIP
auctions (for orders of fewer than 50 contracts) with 0 participants
(excluding the initiating participant), 1 participant (excluding the
initiating participant), 2 participants (excluding the initiating
participant), 3 participants (excluding the initiating participant), 4
participants (excluding the initiating participant), etc., and (e) the
number of PIP auctions (for orders of 50 contracts or greater) with 0
participants (excluding the initiating participant), 1 participant
(excluding the initiating participant), 2 participants (excluding the
initiating participant), 3 participants (excluding the initiating
participant), 4 participants (excluding the initiating participant),
etc.; and (8) For the third Wednesday of each month: (a) The total
number of PIP auctions on that date; (b) the number of PIP auctions
where the order submitted to the PIP was fewer than 50 contracts; (c)
the number of PIP auctions where the order submitted to the PIP was 50
contracts or greater; (d) the number of PIP auctions (for orders of
fewer than 50 contracts) with 0 participants (excluding the initiating
participant), 1 participant (excluding the initiating participant), 2
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc., and (e) the number of PIP auctions (for
orders of 50 contracts or greater) with 0 participants (excluding the
initiating participant), 1 participant (excluding the initiating
participant), 2 participants (excluding the initiating participant), 3
participants (excluding the initiating participant), 4 participants
(excluding the initiating participant), etc.
2. Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ 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.
The Exchange believes that the data demonstrates that there is
sufficient investor interest and demand to extend the PIP Pilot Program
for an additional twelve (12) months. The Exchange represents that the
Pilot Program is designed to provide investors with real and
significant price improvement regardless of the size of the order.
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\6\ 15 U.S.C. 78f(b).
\7\ 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 burden on competition 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, as amended: (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) \8\ of the Act and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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 has fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \11\ 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),\12\ which would make the rule change 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 will allow the PIP Pilot Program to continue
without interruption.\13\ Accordingly, the
[[Page 36807]]
Commission designates the proposed rule change operative upon filing
with the Commission.
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\10\ Id.
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ Id.
\13\ 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-2009-038 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-2009-038. 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 will also be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-BX-
2009-038 and should be submitted on or before August 14, 2009.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-17637 Filed 7-23-09; 8:45 am]
BILLING CODE 8010-01-P
