Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify Its Optional Anti-Internalization Functionality, 57215-57217 [E9-26510]
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Federal Register / Vol. 74, No. 212 / Wednesday, November 4, 2009 / Notices
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 notes that similar functionality
has previously [sic] approved for other
markets.7
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq 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, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
mstockstill on DSKH9S0YB1PROD with NOTICES
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. 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
7 See BATS Exchange Rule 11.9(f)(2) and NYSE
Arca Equities Rule 7.31(qq)(2).
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.
VerDate Nov<24>2008
16:29 Nov 03, 2009
Jkt 220001
waive the 30-day operative delay so that
the benefits of this functionality to
Nasdaq market participants expected
from the rule change can be
implemented on or about November 2,
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 on
November 2, 2009 is consistent with the
protection of investors and the public
interest. The Commission notes that the
proposal is similar to rules of other
exchanges.11 Therefore, the Commission
designates the proposal operative on
November 2, 2009.
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 rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2009–089 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–NASDAQ–2009–089. 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
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 See BATS Exchange Rule 11.9(f) and NYSE
Arca Equities Rule 7.31(qq).
PO 00000
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Fmt 4703
Sfmt 4703
57215
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–NASDAQ–2009–089 and
should be submitted on or before
November 25, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26511 Filed 11–3–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60894; File No. SR–BX–
2009–068]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Modify Its
Optional Anti-Internalization
Functionality
October 28, 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 October
23, 2009, NASDAQ OMX BX, Inc.
(‘‘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
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\04NON1.SGM
04NON1
57216
Federal Register / Vol. 74, No. 212 / Wednesday, November 4, 2009 / Notices
Act,3 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 modify its
optional anti-internalization
functionality.
The text of the proposed rule change
is below. Proposed new language is
italicized and proposed deletions are in
brackets.4
*
*
*
*
*
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, a market participant may elect
from the following options;
(i) if the interacting quotes/orders
from the same MPID are equivalent in
size, both quotes/orders will be
cancelled back to their entering parties.
If the interacting quotes/orders from the
same MPID are not equivalent in size,
share amounts equal to size of the
smaller of the two quotes/orders will be
cancelled back to their originating
parties with the remainder of the larger
quote/order being retained by the
System for potential execution[.]; or
(ii) regardless of the size of the
interacting quotes/orders, cancelling the
oldest of them in full.
(b) No Change.
(c) No Change.
*
*
*
*
*
mstockstill on DSKH9S0YB1PROD with NOTICES
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
3 17
CFR 240.19b–4(f)(6).
are marked to the rules of NASDAQ
OMX BX, Inc. found at: https://
nasdaqomxbx.cchwallstreet.com.
4 Changes
VerDate Nov<24>2008
16:29 Nov 03, 2009
Jkt 220001
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to provide
an additional alternative to its voluntary
anti-internalization functionality. Under
the proposal, market participants will be
given an additional option when
entering quotes and orders using the
same market participant identifier
(‘‘MPID’’) that they do not wish to have
automatically interact with each other
in the System. This option will direct
the System to not execute any part of
the interacting quotes/orders from the
same MPID and, instead, cancel the
oldest of the interacting quotes/orders
back to the entering party.
Anti-internalization processing is
available only on an individual MPIDwide basis with only a single option
being allowed per MPID. Market
participants direct that a particular
version of anti-internalization
processing be applied to a particular
MPID, which is then applied by the
system to all quotes/orders entered
using that MPID.
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. The
Exchange 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.
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
2. Statutory Basis
The Exchange 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. The
Exchange notes that similar
functionality has previously [sic]
approved for other markets.7
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, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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
5 15
U.S.C. 78f.
U.S.C. 78f(b)(5).
7 See BATS Exchange Rule 11.9(f)(2) and NYSE
Arca Equities Rule 7.31(qq)(2).
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.
6 15
E:\FR\FM\04NON1.SGM
04NON1
Federal Register / Vol. 74, No. 212 / Wednesday, November 4, 2009 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay so that
the benefits of this functionality to
Exchange market participants expected
from the rule change can be
implemented on or about November 2,
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 on
November 2, 2009 is consistent with the
protection of investors and the public
interest. The Commission notes that the
proposal is similar to rules of other
exchanges.11 Therefore, the Commission
designates the proposal operative on
November 2, 2009.
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:
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–2009–068 and should
be submitted on or before November 25,
2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–26510 Filed 11–3–09; 8:45 am]
mstockstill on DSKH9S0YB1PROD with NOTICES
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–2009–068 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–2009–068. This file
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 See BATS Exchange Rule 11.9(f) and NYSE
Arca Equities Rule 7.31(qq).
VerDate Nov<24>2008
16:29 Nov 03, 2009
Jkt 220001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60897; File No. SR–ISE–
2009–85]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
International Securities Exchange, LLC
Related to Market Maker Guidelines
October 28, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on October
22, 2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared by the Exchange.
The Exchange has filed the proposal as
a ‘‘non-controversial’’ proposed rule
change pursuant to Section
19(b)(3)(A)(iii) of the Act 3 and Rule
19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit 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 amend
Rule 803 to eliminate the provision
providing for bids (offers) to be no more
than $1 lower (higher) that the last
preceding transaction plus or minus the
aggregate change in the last sale price of
the underlying, and amend the
provision pertaining to trades that are
more than $0.25 below parity. The text
of the proposed rule change is available
on the Exchange’s Web site https://
www.ise.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
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
This proposed rule change is based on
a filing previously submitted by the
Chicago Board Options Exchange
(‘‘CBOE’’) that was effective on filing.5
ISE proposes to amend Rule 803 to
eliminate the provision providing for
bids (offers) to be no more than $1 lower
(higher) that the last preceding
transaction plus or minus the aggregate
change in the last sale price of the
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 60295
(July 13, 2009), 74 FR 35215 (July 20, 2009) (SR–
CBOE–2009–49).
4 17
12 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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57217
E:\FR\FM\04NON1.SGM
04NON1
]]>Agencies
[Federal Register Volume 74, Number 212 (Wednesday, November 4, 2009)]
[Notices]
[Pages 57215-57217]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-26510]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60894; File No. SR-BX-2009-068]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify
Its Optional Anti-Internalization Functionality
October 28, 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 October 23, 2009, NASDAQ OMX BX, Inc. (``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 constituting a non-controversial rule change under Rule 19b-
4(f)(6) under the
[[Page 57216]]
Act,\3\ 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\ 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 modify its optional anti-internalization
functionality.
The text of the proposed rule change is below. Proposed new
language is italicized and proposed deletions are in brackets.\4\
---------------------------------------------------------------------------
\4\ Changes are marked to the rules of NASDAQ OMX BX, Inc. found
at: https://nasdaqomxbx.cchwallstreet.com.
---------------------------------------------------------------------------
* * * * *
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, a market
participant may elect from the following options;
(i) if the interacting quotes/orders from the same MPID are
equivalent in size, both quotes/orders will be cancelled back to their
entering parties. If the interacting quotes/orders from the same MPID
are not equivalent in size, share amounts equal to size of the smaller
of the two quotes/orders will be cancelled back to their originating
parties with the remainder of the larger quote/order being retained by
the System for potential execution[.]; or
(ii) regardless of the size of the interacting quotes/orders,
cancelling the oldest of them in full.
(b) No Change.
(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
The Exchange is proposing to provide an additional alternative to
its voluntary anti-internalization functionality. Under the proposal,
market participants will be given an additional option when entering
quotes and orders using the same market participant identifier
(``MPID'') that they do not wish to have automatically interact with
each other in the System. This option will direct the System to not
execute any part of the interacting quotes/orders from the same MPID
and, instead, cancel the oldest of the interacting quotes/orders back
to the entering party.
Anti-internalization processing is available only on an individual
MPID-wide basis with only a single option being allowed per MPID.
Market participants direct that a particular version of anti-
internalization processing be applied to a particular MPID, which is
then applied by the system to all quotes/orders entered using that
MPID.
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. The Exchange 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
The Exchange 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.
The Exchange notes that similar functionality has previously [sic]
approved for other markets.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(5).
\7\ See BATS Exchange Rule 11.9(f)(2) and NYSE Arca Equities
Rule 7.31(qq)(2).
---------------------------------------------------------------------------
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, as amended.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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). 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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[[Page 57217]]
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requests that the Commission waive
the 30-day operative delay so that the benefits of this functionality
to Exchange market participants expected from the rule change can be
implemented on or about November 2, 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 on November 2, 2009 is
consistent with the protection of investors and the public interest.
The Commission notes that the proposal is similar to rules of other
exchanges.\11\ Therefore, the Commission designates the proposal
operative on November 2, 2009.
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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\ 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-2009-068 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-2009-068. 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-2009-068 and should be submitted on
or before November 25, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-26510 Filed 11-3-09; 8:45 am]
BILLING CODE 8011-01-P
