Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Optional Anti-Internalization Functionality, 38065-38067 [E9-18170]
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Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 15c3–1 (17 CFR 240.15c3–1)
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) requires
brokers and dealers to have at all times
sufficient liquid assets to meet their
current liabilities, particularly the
claims of customers. The rule facilitates
monitoring the financial condition of
brokers and dealers by the Commission
and the various self-regulatory
organizations. It is estimated that the
active broker-dealer respondents
registered with the Commission incur
an aggregate burden of 73,300 hours per
year to comply with this rule.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Comments should be directed to
Charles Boucher, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312 or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: July 24, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–18171 Filed 7–29–09; 8:45 am]
BILLING CODE 8010–01–P
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SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
VerDate Nov<24>2008
15:34 Jul 29, 2009
Jkt 217001
Extension:
Rule 30e–1; SEC File No. 270–21; OMB
Control No. 3235–0025.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
The title for the collection of
information is: ‘‘Rule 30e–1 (CFR
270.30e–1) under the Investment
Company Act of 1940, Reports to
Stockholders of Management
Companies.’’ Section 30(e) (15 U.S.C.
80a–29(e)) of the Investment Company
Act of 1940 (‘‘Investment Company
Act’’) (15 U.S.C. 80a–1 et seq.) requires
a registered investment company
(‘‘fund’’) to transmit to its shareholders,
at least semi-annually, reports
containing information and financial
statements as the Commission may
prescribe. Among other requirements,
Rule 30e–1 (17 CFR 270.30e–1) under
the Investment Company Act directs
funds to include in the shareholder
reports the information that is required
by the fund’s registration statement form
under the Investment Company Act.
Failure to require the collection of this
information would seriously impede the
amount of current information available
to shareholders and the public about
funds and would prevent the
Commission from implementing the
regulatory program required by statute.
The estimated annual number of
respondents providing shareholder
reports under Rule 30e–1 is
approximately 2800. The proposed
frequency of response is semi-annual.
The estimate of the total annual
reporting burden of the collection of
information is approximately 145.8
hours per shareholder report and the
total estimated annual burden for the
industry is 816,480 hours (145.8 hours
per report × 2 reports × 2,800 funds).
Providing the information required by
Rule 30e–1 is mandatory. Responses
will not be kept confidential. Estimates
of the burden hours are made solely for
the purposes of the Paperwork
Reduction Act, and are not derived from
a comprehensive or even a
representative survey or study of the
costs of SEC rules and forms.
An agency may not conduct or
sponsor, and a person is not required to
respond to a collection of information
unless it displays a currently valid
control number.
PO 00000
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38065
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Boucher, Director/CIO,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: July 24, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–18172 Filed 7–29–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60383; File No. SR–BX–
2009–042]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Modify Its
Optional Anti-Internalization
Functionality
July 24, 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 22,
2009, NASDAQ OMX BX, Inc.
(‘‘NASDAQ OMX BX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange has designated the proposed
rule change as effecting a change
described under Rule 19b–4(f)(6) under
the Act,3 which renders the proposal
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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38066
Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices
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 filing with the
Commission a proposed rule change to
modify its optional anti-internalization
functionality.
The text of the proposed rule change
is below. Proposed new language is
italic and proposed deletions are in
brackets.
*
*
*
*
*
4757. Book Processing
System orders shall be executed
through the Book Process set forth
below:
(a) Execution Algorithm—Price/
Time—The System shall execute
equally priced or better priced trading
interest within the System in price/time
priority in the following order:
(1)–(2) No Change.
(3) Exception: Anti-Internalization—
Market participants may direct that
quotes/orders entered into the System
not execute against quotes/orders
entered under the same MPID. [In such
a case, the later entered of the quote/
orders will be cancelled back to the
entering party.] In such a case, if the
interacting orders from the same MPID
are equivalent in size, both orders will
be cancelled back to their entering
parties. If the interacting orders from the
same MPID are not equivalent in size,
share amounts equal to size of the
smaller of the two orders will be
cancelled back to their originating
parties with the remainder of the larger
order being retained by the System for
potential execution.
(b)–(c) No Change.
*
*
*
*
*
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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.
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15:34 Jul 29, 2009
Jkt 217001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Nasdaq OMX BX is proposing to
modify its voluntary anti-internalization
functionality. Under the proposal,
market participants entering quotes/
orders under a specific market
participant identifier (‘‘MPID’’) may
voluntarily direct that they not execute
against other quotes/orders entered into
the System under the same MPID. In
such a case, if the orders from the same
MPID are equivalent in size, both orders
will be cancelled back to their entering
parties. If the orders from the same
MPID are not equivalent in size, share
amounts equal to [sic] size of the
smaller of the two orders will be
cancelled back to their respective
originating parties with the remainder of
the larger order being retained by the
System for potential execution.
The above replaces NASDAQ OMX
BX’s ’s [sic] currently approved, but not
yet operational, anti-internalization
functionality that would cancel the later
entered of interacting orders from the
same MPID. NASDAQ OMX BX is
modifying its anti-internalization
functionality based on additional input
from system users as well as the
Commission’s recent approval of
various versions of anti-internalization
functionality for the BATS and NYSE
Arca exchanges.4
Anti-internalization functionality is
designed to assist market participants in
complying with certain rules and
regulations of the Employee Retirement
Income Security Act (‘‘ERISA’’) that
preclude and/or limit managing brokerdealers of such accounts from trading as
principal with orders generated for
those accounts. It can also assist market
participants in reducing execution fees
potentially resulting from the
interaction of executable buy and sell
trading interest from the same firm.
NASDAQ OMX BX notes that use of the
functionality does not relieve or
otherwise modify the duty of best
execution owed to orders received from
public customers. As such, market
participants using anti-internalization
functionality will need to take
appropriate steps to ensure that public
customer orders that do not execute
because of the use of anti-internalization
functionality ultimately receive the
same execution price (or better) they
4 See SR–BATS–2009–022 and SR–NYSEArca–
2009–058. Nasdaq’s proposed anti-internalization
functionality is similar to BAT’s MMTP Decrement
and Cancel and NYSE Arca’s STP Decrement and
Cancel.
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Frm 00088
Fmt 4703
Sfmt 4703
would have originally obtained if
execution of the order was not inhibited
by the functionality.
2. Statutory Basis
Nasdaq OMX BX believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,5
in general, and with Sections [sic]
6(b)(5) of the Act,6 in particular, in that
the proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, 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 of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Nasdaq OMX BX notes that similar
functionality has previously [sic]
approved for other trading systems.7
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
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 8 and Rule
19b–4(f)(6) thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. In addition, Rule 19b–
5 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
7 See SR–NASD–2003–039.
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
6 15
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Federal Register / Vol. 74, No. 145 / Thursday, July 30, 2009 / Notices
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. 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 as well
as the five business-day pre-filing
requirement so that the benefits of this
functionality to NASDAQ OMX BX
market participants expected from the
rule change can be implemented on
August 3, 2009, when the Exchange
expects to have the technological
changes in place to support the
proposed rule change. The Commission
believes that waiving the 30-day
operative delay 10 to make this
functionality available without delay is
consistent with the protection of
investors and the public interest.11 The
Commission notes that the proposal is
similar to rules of other exchanges and
thus does not raise any novel regulatory
issues.12 The Commission designates
the proposal operative upon filing to
allow the Exchange to implement the
functionality without delay.
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,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
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• 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–2009–042 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–2009–042. 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
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–BX–2009–042 and should
be submitted on or before August 20,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–18170 Filed 7–29–09; 8:45 am]
BILLING CODE 8010–01–P
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
11 The Commission is also waiving the five
business-day pre-filing requirement.
12 See BATS Exchange Rule 11.9(f) and NYSE
Arca Equities Rule 7.31(qq).
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15:34 Jul 29, 2009
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60381; File No. SR–CBOE–
2009–038]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Order Approving a
Proposed Rule Change Relating to the
Complex Order Book
July 24, 2009.
I. Introduction
On June 16, 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 (the ‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposal to amend CBOE
Rule 6.53C(c) to modify the order and
quote types that market participants
may enter to trade against orders resting
in the complex order book (‘‘COB’’). The
proposed rule change was published for
comment in the Federal Register on
June 24, 2009.3 The Commission
received no comments regarding the
proposal. This order approves the
proposed rule change.
II. Description of the Proposal
A market participant, as defined in
CBOE Rule 6.45A or CBOE Rule 6.45B,
may submit orders or quotes to trade
against orders in the COB.4 However,
under CBOE Rule 6.53C(c)(i), the CBOE
may determine the options classes and
the complex order origin types (i.e.,
non-broker-dealer public customer,
broker-dealers that are not Market
Makers or specialists on an options
exchange, and/or Market Makers or
specialists on an options exchange) that
are eligible to be entered into (i.e., rest
in) the COB, and whether such orders
may route directly to the COB and/or
from PAR to the COB.
Currently, a market participant whose
quotes or orders are not eligible to rest
in the COB, but that wishes to trade
against orders resting in the COB, may
enter limit orders using an immediateor-cancel (‘‘IOC’’) contingency to avoid
resting its orders in the COB. If such a
market participant does not use an IOC
contingency, it must cancel the
unexecuted balance of its limit order or
quote if the limit order or quote is
partially filled by trading against an
order resting in the COB.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 60130
(June 17, 2009), 74 FR 30194.
4 See CBOE Rule 6.53C(c)(ii)(3).
2 17
13 17
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 74, Number 145 (Thursday, July 30, 2009)]
[Notices]
[Pages 38065-38067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18170]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60383; File No. SR-BX-2009-042]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Its Optional Anti-Internalization Functionality
July 24, 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 22, 2009, NASDAQ OMX BX, Inc. (``NASDAQ OMX BX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated the proposed rule change as effecting a change described
under Rule 19b-4(f)(6) under the Act,\3\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit
[[Page 38066]]
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 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 filing with the Commission a proposed rule change
to modify its optional anti-internalization functionality.
The text of the proposed rule change is below. Proposed new
language is italic and proposed deletions are in brackets.
* * * * *
4757. Book Processing
System orders shall be executed through the Book Process set forth
below:
(a) Execution Algorithm--Price/Time--The System shall execute
equally priced or better priced trading interest within the System in
price/time priority in the following order:
(1)-(2) No Change.
(3) Exception: Anti-Internalization--Market participants may direct
that quotes/orders entered into the System not execute against quotes/
orders entered under the same MPID. [In such a case, the later entered
of the quote/orders will be cancelled back to the entering party.] In
such a case, if the interacting orders from the same MPID are
equivalent in size, both orders will be cancelled back to their
entering parties. If the interacting orders from the same MPID are not
equivalent in size, share amounts equal to size of the smaller of the
two orders will be cancelled back to their originating parties with the
remainder of the larger order being retained by the System for
potential execution.
(b)-(c) 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 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
Nasdaq OMX BX is proposing to modify its voluntary anti-
internalization functionality. Under the proposal, market participants
entering quotes/orders under a specific market participant identifier
(``MPID'') may voluntarily direct that they not execute against other
quotes/orders entered into the System under the same MPID. In such a
case, if the orders from the same MPID are equivalent in size, both
orders will be cancelled back to their entering parties. If the orders
from the same MPID are not equivalent in size, share amounts equal to
[sic] size of the smaller of the two orders will be cancelled back to
their respective originating parties with the remainder of the larger
order being retained by the System for potential execution.
The above replaces NASDAQ OMX BX's 's [sic] currently approved, but
not yet operational, anti-internalization functionality that would
cancel the later entered of interacting orders from the same MPID.
NASDAQ OMX BX is modifying its anti-internalization functionality based
on additional input from system users as well as the Commission's
recent approval of various versions of anti-internalization
functionality for the BATS and NYSE Arca exchanges.\4\
---------------------------------------------------------------------------
\4\ See SR-BATS-2009-022 and SR-NYSEArca-2009-058. Nasdaq's
proposed anti-internalization functionality is similar to BAT's MMTP
Decrement and Cancel and NYSE Arca's STP Decrement and Cancel.
---------------------------------------------------------------------------
Anti-internalization functionality is designed to assist market
participants in complying with certain rules and regulations of the
Employee Retirement Income Security Act (``ERISA'') that preclude and/
or limit managing broker-dealers of such accounts from trading as
principal with orders generated for those accounts. It can also assist
market participants in reducing execution fees potentially resulting
from the interaction of executable buy and sell trading interest from
the same firm. NASDAQ OMX BX notes that use of the functionality does
not relieve or otherwise modify the duty of best execution owed to
orders received from public customers. As such, market participants
using anti-internalization functionality will need to take appropriate
steps to ensure that public customer orders that do not execute because
of the use of anti-internalization functionality ultimately receive the
same execution price (or better) they would have originally obtained if
execution of the order was not inhibited by the functionality.
2. Statutory Basis
Nasdaq OMX BX believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\5\ in general, and with
Sections [sic] 6(b)(5) of the Act,\6\ in particular, in that the
proposal is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, 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 of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Nasdaq OMX BX notes that similar functionality has previously [sic]
approved for other trading systems.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
\7\ See SR-NASD-2003-039.
---------------------------------------------------------------------------
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
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. In addition,
Rule 19b-
[[Page 38067]]
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. 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 as well as the
five business-day pre-filing requirement so that the benefits of this
functionality to NASDAQ OMX BX market participants expected from the
rule change can be implemented on August 3, 2009, when the Exchange
expects to have the technological changes in place to support the
proposed rule change. The Commission believes that waiving the 30-day
operative delay \10\ to make this functionality available without delay
is consistent with the protection of investors and the public
interest.\11\ The Commission notes that the proposal is similar to
rules of other exchanges and thus does not raise any novel regulatory
issues.\12\ The Commission designates the proposal operative upon
filing to allow the Exchange to implement the functionality without
delay.
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\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\11\ The Commission is also waiving the five business-day pre-
filing requirement.
\12\ See BATS Exchange Rule 11.9(f) and NYSE Arca Equities Rule
7.31(qq).
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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, 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-2009-042 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-2009-042. 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 should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2009-042 and should be
submitted on or before August 20, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-18170 Filed 7-29-09; 8:45 am]
BILLING CODE 8010-01-P
