Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Effective Date of the Rule Governing the Exchange's Directed Order Process on the Boston Options Exchange, 62860-62861 [E9-28678]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 229 (Tuesday, December 1, 2009)]
[Notices]
[Pages 62860-62861]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-28678]



[[Page 62860]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61065; File No. SR-BX-2009-076]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Extending 
the Effective Date of the Rule Governing the Exchange's Directed Order 
Process on the Boston Options Exchange

November 25, 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 November 24, 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 extend the effective date of the amended 
rule governing the Exchange's Directed Order process on the Boston 
Options Exchange (``BOX'') from November 30, 2009 to February 26, 2010. 
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
    On March 14, 2006, the Exchange proposed an amendment to the BOX 
Rules governing the Directed Order \5\ process on BOX.\6\ The Rules 
were amended to clearly state that the BOX Trading Host identifies to 
an Executing Participant (``EP'') the identity of the firm entering a 
Directed Order. The amended rule was to be effective until June 30, 
2006, (``Pilot Program'') while the Securities and Exchange Commission 
(``Commission'') considered a corresponding Exchange proposal \7\ to 
amend its rules to permit EPs to choose the firms from whom they will 
accept Directed Orders, while providing complete anonymity of the firm 
entering a Directed Order.
---------------------------------------------------------------------------

    \5\ Capitalized terms not otherwise defined herein shall have 
the meanings prescribed within the BOX Rules.
    \6\ See Securities Exchange Act Release No. 53516 (March 20, 
2006), 71 FR 15232 (March 27, 2006) (SR-BSE-2006-14).
    \7\ See Securities Exchange Act Release No. 53357 (February 23, 
2006), 71 FR 10730 (March 2, 2006) (SR-BSE-2005-52).
---------------------------------------------------------------------------

    On June 20, 2006, the Exchange proposed extending the effective 
date of the rule governing its Directed Order process on BOX from June 
30, 2006 to September 30, 2006,\8\ while the Commission continued to 
consider the corresponding Exchange proposal.
---------------------------------------------------------------------------

    \8\ See Securities Exchange Act Release No. 54082 (June 30, 
2006), 71 FR 38913 (July 10, 2006) (SR-BSE-2006-29).
---------------------------------------------------------------------------

    On September 11, 2006, January 16, 2007, July 2, 2007, January 18, 
2008, January 26, 2009 and May 21, 2009 the Exchange proposed extending 
the effective date of the amended rule governing the Directed Order 
process on BOX from September 30, 2006 until January 31, 2007,\9\ from 
January 31, 2007 until July 31, 2007,\10\ from July 31, 2007 until 
January 31, 2008,\11\ from January 31, 2008 until January 31, 2009,\12\ 
from January 31, 2009 until May 29, 2009,\13\ and from May 29, 2009 
until November 30, 2009,\14\ respectively, while the Commission 
considered the corresponding Exchange proposal to amend the BOX Rules 
to permit EPs to choose the firms from whom they will accept Directed 
Orders, while providing complete anonymity of the firm entering a 
Directed Order.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 54469 (September 19, 
2006), 71 FR 56201 (September 26, 2006) (SR-BSE-2006-38).
    \10\ See Securities Exchange Act Release No. 55139 (January 19, 
2007), 72 FR 3448 (January 25, 2007) (SR-BSE-2007-01).
    \11\ See Securities Exchange Act Release No. 56014 (July 5, 
2007), 72 FR 38104 (July 12, 2007) (SR-BSE-2007-31).
    \12\ See Securities Exchange Act Release No. 57195 (January 24, 
2008), 73 FR 5610 (January 30, 2008) (SR-BSE-2008-04).
    \13\ See Securities Exchange Act Release No. 59311 (January 28, 
2009), 74 FR 6071 (February 4, 2009) (SR-BX-2009-007).
    \14\ See Securities Exchange Act Release No. 59983 (May 27, 
2009), 74 FR 26445 (June 2, 2009) (SR-BX-2009-027).
---------------------------------------------------------------------------

    This filing from the Exchange again proposes extending the 
effective date of the amended rule governing its Directed Order process 
on BOX, from November 30, 2009 to February 26, 2010.\15\ In the event 
the Commission reaches a decision with respect to the corresponding 
Exchange proposal to amend the BOX Rules before February 26, 2010, the 
amended rule governing the Directed Order process on the BOX will cease 
to be effective at the time of that decision.
---------------------------------------------------------------------------

    \15\ In the event that the issue of anonymity in the Directed 
Order process is not resolved by February 26, 2010 the Exchange will 
consider whether to submit another filing under Rule 19b-4(f)(6) 
extending this rule and system process.
---------------------------------------------------------------------------

2. Basis
    The amended rule is designed to clarify the information contained 
in a Directed Order. This proposed rule filing seeks to extend the 
amended rule's effectiveness from November 30, 2009 to February 26, 
2010. This extension will afford the Commission the necessary time to 
consider the Exchange's corresponding proposal to amend the BOX rule to 
permit EPs to choose the firms from whom they will accept Directed 
Orders while providing complete anonymity of the firm entering a 
Directed Order. Accordingly, the Exchange believes that the proposal is 
consistent with the requirements of Section 6(b) of the Act,\16\ in 
general, and Section 6(b)(5) of the Act,\17\ 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose

[[Page 62861]]

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: (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) \18\ of the Act and Rule 19b-4(f)(6) 
thereunder.\19\ As required under Rule 19b-4(f)(6)(iii),\20\ the 
Exchange provided the Commission with written notice of its intent to 
file the proposed rule change, along with a brief description and text 
of the proposed rule change, at least five business days prior to the 
date of the filing of the proposed rule change.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally 
may not become operative prior to 30 days after the date of filing. 
However, Rule 19b-4(f)(6)(iii) \22\ 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),\23\ which would make the rule change effective and 
operative upon filing. The Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest because such waiver would continue to conform the BOX 
rules to BOX's current practice and clarify that Directed Orders on BOX 
are not anonymous without interruption.\24\ Accordingly, the Commission 
designates the proposed rule change operative upon filing with the 
Commission.
---------------------------------------------------------------------------

    \21\ 17 CFR 240.19b-4(f)(6).
    \22\ 17 CFR 240.19b-4(f)(6)(iii).
    \23\ Id.
    \24\ 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).
---------------------------------------------------------------------------

    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-2009-076 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-2009-076. 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-2009-076 and should be 
submitted on or before December 22, 2009.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-28678 Filed 11-30-09; 8:45 am]
BILLING CODE 8011-01-P