Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Pilot Period To Receive Inbound Routes of Orders From Nasdaq Execution Services, 1102-1104 [2010-78]
Download as PDF
<![CDATA[
1102
Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
among the most actively traded classes
nationally, with a wide array of investor
interest, (b) have more series trading at
a premium between $3 and $10, and (c)
are trading at prices that are neither
extremely low nor high, but are
generally trading between $15–$50. The
Exchange believes that classes that meet
these criteria benefit the most from the
ability to quote and trade all options
series in penny increments.
This proposal is based on a recent
Commission-approved proposal of the
NYSEArca exchange.6 The Exchange
proposes to designate SPY and IWM as
eligible to quote and trade all options
contracts in one cent increments as of
February 1, 2010. This date corresponds
with the second phase-in date for
additional classes in the Penny Pilot
Program.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,7
in general, and Section 6(b)(5) of the
Act,8 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. In particular, the
Exchange believes that allowing market
participants to quote in smaller
increments reduces spreads, thereby
lowering costs to investors.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
pwalker on DSK8KYBLC1PROD with NOTICES
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
This proposed rule change is filed
pursuant to paragraph (A) of section
6 See Securities Exchange Act Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca–2009–44).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
19(b)(3) of the Exchange Act 9 and Rule
19b–4(f)(6) thereunder 10 and does not:
(i) Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition and; (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest.
The Commission recently granted
approval for a similar filing proposed by
the NYSEArca.11 The Exchange believes
that this proposed rule change, which is
essential for competitive purposes and
to promote a free and open market for
the benefit of investors, does not raise
any new, unique or substantive issues
from those raised in the approved
NYSEArca proposal.
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:
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 No.
SR–BX–2009–086 and should be
submitted on or before January 29, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
Electronic Comments
[FR Doc. 2010–71 Filed 1–7–10; 8:45 am]
• 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–2009–086 on the
subject line.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Extending the
Pilot Period To Receive Inbound
Routes of Orders From Nasdaq
Execution Services
[Release No. 34–61271; File No. SR–BX–
2009–085]
• 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
December 31, 2009.
Number SR–BX–2009–086. This file
Pursuant to Section 19(b)(1) 1 of the
number should be included on the
Securities Exchange Act of 1934 (the
subject line if e-mail is used. To help the
‘‘Act’’) and Rule 19b–4 thereunder,2
notice is hereby given that, on December
9 15 U.S.C. 78s(b)(3)(A).
23, 2009, NASDAQ OMX BX, Inc. (the
10 17 CFR 240.19b–4(f)(6). In addition, as required
by Rule 19b–4(f)(6)(iii), the Exchange has submitted ‘‘Exchange’’ or ‘‘BX’’) filed with the
to the Commission written notice of its intent to file Securities and Exchange Commission
the proposed rule change, along with a brief
(the ‘‘Commission’’) the proposed rule
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.
11 See supra note 6.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
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\08JAN1.SGM
08JAN1
Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
change as described in Items I and II,
below, which Items have been prepared
by BX. BX has designated the proposed
rule change as constituting a noncontroversial rule change 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 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
BX submits this proposed rule change
to extend the pilot period of BX’s prior
approval to receive inbound routes of
equities orders from Nasdaq Execution
Services, LLC (‘‘NES’’) through March
23, 2010.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, BX
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. BX 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
Currently, NES is the approved
outbound routing facility of the
NASDAQ Stock Market LLC
(‘‘NASDAQ’’) for cash equities,
providing outbound routing from
NASDAQ to other market centers.4 BX
3 17
CFR 240.19b–4(f)(6).
Securities Exchange Act Release Nos. 50311
(September 3, 2004), 69 FR 54818 (September 10,
2004) (Order Granting Application for a Temporary
Conditional Exemption Pursuant To Section 36(a)
of the Exchange Act by the National Association of
Securities Dealers, Inc. Relating to the Acquisition
of an ECN by The Nasdaq Stock Market, Inc.) and
52902 (December 7, 2005), 70 FR 73810 (December
13, 2005) (SRNASD–2005–128) (Order Approving a
Proposed Rule Change To Establish Rules
Governing the Operation of the INET System). See
also Securities Exchange Act Release Nos. 58752
(October 8, 2008), 73 FR 61181 (October 15, 2008)
(SR–NASDAQ–2008–079); 58135 (July 10, 2008), 73
FR 40898 (July 16, 2008) (SR–NASDAQ–2008–061);
58069 (June 30, 2008), 73 FR 39360 (July 9, 2008)
(SR–NASDAQ–2008–054); 56708 (October 26,
2007), 72 FR 61925 (November 1, 2007) (SR–
NASDAQ–2007–078); 56867 (November 29, 2007),
72 FR 69263 (December 7, 2007) (SR–NASDAQ–
2007–065); 55335 (February 23, 2007), 72 FR 9369
(March 1, 2007) (SR–NASDAQ–2007–005); 54613
pwalker on DSK8KYBLC1PROD with NOTICES
4 See
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
also has been previously approved to
receive inbound routes of equities
orders by NES in its capacity as an order
routing facility of NASDAQ.5 The
Exchange’s authority to receive inbound
routes of equities orders by NES is
subject to a pilot period ending
December 23, 2009. The Exchange
hereby seeks to extend the previously
approved pilot period (with the
attendant obligations and conditions)
for an additional 3 months, through
March 23, 2010.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,6
in general, and with Section 6(b)(5) of
the Act,7 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.
Specifically, the proposed rule change
will allow the Exchange to continue
receiving inbound routes of equities
orders from NES acting in its capacity
as a facility of Nasdaq, in a manner
consistent with prior approvals and
established protections. The Exchange
believes that extending the previously
approved pilot period for three months
is of sufficient length to permit both the
Exchange and the Commission to assess
the impact of the Exchange’s authority
to receive direct inbound routes of
equities orders via NES (including the
attendant obligations and conditions).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX 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.
(October 17, 2006), 71 FR 62325 (October 24, 2006)
(SR–NASDAQ 2006–043); 54271 (August 3, 2006),
71 FR 45876 (August 10, 2006) (SR–NASDAQ–
2006–027); and 54155 (July 14, 2006), 71 FR 41291
(July 20, 2006) (SR–NASDAQ–2006–001).
5 See Securities Exchange Act Release No. 59154
(December 23, 2008), 73 FR 80468 (December 31,
2008).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
1103
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 rule change
does not: (1) Significantly affect the
protection of investors or the public
interest; (2) impose any significant
burden on competition; and (3) become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate, it 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
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.10 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. BX has
requested that the Commission waive
the 30-day operative delay. BX notes
that the proposal will allow the
Exchange to continue receiving inbound
routes of equities orders from NES, in a
manner consistent with prior approvals
and established protections, while also
permitting the Exchange and the
Commission to assess the impact of the
pilot.12 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 allow the
pilot period to be extended without
interruption through March 23, 2010.
For this reason, the Commission
designates the proposed rule change to
be operative upon filing with the
Commission.13
At any time within 60 days of the
filing of such proposed rule change the
Commission may summarily abrogate
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 satisfied this
requirement.
11 Id.
12 See supra at II.A.2.
13 For the 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).
9 17
E:\FR\FM\08JAN1.SGM
08JAN1
1104
Federal Register / Vol. 75, No. 5 / Friday, January 8, 2010 / Notices
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
IV. Solicitation of Comments
BILLING CODE 8011–01–P
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
pwalker on DSK8KYBLC1PROD with NOTICES
• 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–2009–085 on the
subject line.
[FR Doc. 2010–78 Filed 1–7–10; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61268; File No. SR–NYSE–
2009–128]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Extending the
Pilot Period To Receive Inbound
Routes of Certain Equities Orders
From Archipelago Securities LLC
December 31, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
Paper Comments
‘‘Act’’) and Rule 19b–4 thereunder,2
notice is hereby given that, on December
• Send paper comments in triplicate
22, 2009, New York Stock Exchange
to Elizabeth M. Murphy, Secretary,
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
Securities and Exchange Commission,
with the Securities and Exchange
100 F Street, NE., Washington, DC
Commission (the ‘‘Commission’’) the
20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I and II, below, which Items have
Number SR–BX–2009–085. This file
been prepared by the self-regulatory
number should be included on the
subject line if e-mail is used. To help the organization. The Commission is
publishing this notice to solicit
Commission process and review your
comments on the proposed rule change
comments more efficiently, please use
only one method. The Commission will from interested persons.
post all comments on the Commission’s I. Self-Regulatory Organization’s
Internet Web site (https://www.sec.gov/
Statement of the Terms of Substance of
rules/sro.shtml). Copies of the
the Proposed Rule Change
submission, all subsequent
The Exchange proposes to extend the
amendments, all written statements
pilot period of the Exchange’s prior
with respect to the proposed rule
approvals to receive inbound routes of
change that are filed with the
certain equities orders from Archipelago
Commission, and all written
Securities LLC (‘‘Arca Securities’’), an
communications relating to the
NYSE affiliated member. The text of the
proposed rule change between the
Commission and any person, other than proposed rule change is available at the
Exchange, the Commission’s Public
those that may be withheld from the
Reference Room, and https://
public in accordance with the
www.nyse.com.
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
II. Self-Regulatory Organization’s
the Commission’s Public Reference
Statement of the Purpose of, and
Room on official business days between Statutory Basis for, the Proposed Rule
the hours of 10 a.m. and 3 p.m. Copies
Change
of such filing also will be available for
In its filing with the Commission, the
inspection and copying at the principal
self-regulatory organization included
office of the Exchange. All comments
statements concerning the purpose of,
received will be posted without change;
and basis for, the proposed rule change
the Commission does not edit personal
and discussed any comments it received
identifying information from
on the proposed rule change. The text
submissions. You should submit only
of those statements may be examined at
information that you wish to make
the places specified in Item IV below.
available publicly. All submissions
should refer to File Number SR–BX–
14 17 CFR 200.30–3(a)(12).
2009–085 and should be submitted on
1 15 U.S.C. 78s(b)(1).
or before January 29, 2010.
2 17 CFR 240.19b–4.
VerDate Nov<24>2008
16:14 Jan 07, 2010
Jkt 220001
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Currently, Arca Securities is the
approved outbound order routing
facility of the Exchange.3 Arca
Securities is also the approved
outbound order routing facility of NYSE
Arca and NYSE Amex LLC (‘‘NYSE
Amex’’).4 The Exchange has also been
previously approved to receive inbound
routes of equities orders by Arca
Securities in its capacity as an order
routing facility of NYSE Arca and NYSE
Amex.5 The Exchange’s authority to
receive inbound routes of equities
orders by Arca Securities is subject to a
pilot period ending December 31, 2009.6
The Exchange hereby seeks to extend
the previously approved pilot period
(with the attendant obligations and
conditions) for an additional 3 months,
through March 31, 2010.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 7 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
3 See Securities Exchange Act Release No. 55590
(April 5, 2007), 72 FR 18707 (April 13, 2007) (notice
of immediate effectiveness of SR–NYSE–2007–29);
see also, Securities and [sic] Exchange Act Release
No. 58680 (September 29, 2008), 73 FR 58283
(October 6, 2008) (order approving SR–NYSE–
2008–76).
4 See Securities Exchange Act Release No. 53238
(July 28, 2006), 71 FR 44758 (August 7, 2006) (order
approving SR–NYSEArca–2006–13); see also,
Securities Exchange Act Release No. 52497
(September 22, 2005), 70 FR 56949 (September 29,
2005) (SR–PCX–2005–90); see also, Securities
Exchange Act Release No. 44983 (October 25, 2001),
66 FR 55225 (November 1, 2001) (SR–PCX–00–25);
see also, Securities Exchange Act Release No. 58681
(September 29, 2008), 73 FR 58285 (October 6,
2008) (order approving NYSEArca–2008–90). See
Securities Exchange Act Release No. 59009
(November 24, 2008), 73 FR 73363 (December 2,
2008) (order approving SR–NYSEALTR–2008–07);
see also, Securities and [sic] Exchange Act Release
No. 59473 (February 27, 2009), 74 FR 9853 (March
6, 2009) (order approving SR–NYSEALTR–2009–
18).
5 See Securities and [sic] Exchange Act Release
No. 58680 (September 29, 2008), 73 FR 58283
(October 6, 2008) (order approving SR–NYSE–
2008–76); see Securities Exchange Act Release No.
59011 (November 24, 2008) 73 FR 73360 (December
2, 2008) (order approving SR–NYSE–2008–122); see
also Securities and [sic] Exchange Act Release No.
60255 (July 7, 2009) 74 FR 34065 (July 14, 2009)
(order approving SR–NYSE–2009–58).
6 See Securities Exchange Act Release No. 60752
(September 30, 2009), 74 FR 51641 (October 7,
2009) (notice of immediate effectiveness of SR–
NYSE–2009–101).
7 15 U.S.C. 78f(b).
E:\FR\FM\08JAN1.SGM
08JAN1
]]>Agencies
[Federal Register Volume 75, Number 5 (Friday, January 8, 2010)]
[Notices]
[Pages 1102-1104]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-78]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61271; File No. SR-BX-2009-085]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Extending
the Pilot Period To Receive Inbound Routes of Orders From Nasdaq
Execution Services
December 31, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on December 23, 2009, NASDAQ OMX BX, Inc. (the ``Exchange'' or
``BX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule
[[Page 1103]]
change as described in Items I and II, below, which Items have been
prepared by BX. BX has designated the proposed rule change as
constituting a non-controversial rule change 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
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
BX submits this proposed rule change to extend the pilot period of
BX's prior approval to receive inbound routes of equities orders from
Nasdaq Execution Services, LLC (``NES'') through March 23, 2010.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, BX 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. BX 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
Currently, NES is the approved outbound routing facility of the
NASDAQ Stock Market LLC (``NASDAQ'') for cash equities, providing
outbound routing from NASDAQ to other market centers.\4\ BX also has
been previously approved to receive inbound routes of equities orders
by NES in its capacity as an order routing facility of NASDAQ.\5\ The
Exchange's authority to receive inbound routes of equities orders by
NES is subject to a pilot period ending December 23, 2009. The Exchange
hereby seeks to extend the previously approved pilot period (with the
attendant obligations and conditions) for an additional 3 months,
through March 23, 2010.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 50311 (September 3,
2004), 69 FR 54818 (September 10, 2004) (Order Granting Application
for a Temporary Conditional Exemption Pursuant To Section 36(a) of
the Exchange Act by the National Association of Securities Dealers,
Inc. Relating to the Acquisition of an ECN by The Nasdaq Stock
Market, Inc.) and 52902 (December 7, 2005), 70 FR 73810 (December
13, 2005) (SRNASD-2005-128) (Order Approving a Proposed Rule Change
To Establish Rules Governing the Operation of the INET System). See
also Securities Exchange Act Release Nos. 58752 (October 8, 2008),
73 FR 61181 (October 15, 2008) (SR-NASDAQ-2008-079); 58135 (July 10,
2008), 73 FR 40898 (July 16, 2008) (SR-NASDAQ-2008-061); 58069 (June
30, 2008), 73 FR 39360 (July 9, 2008) (SR-NASDAQ-2008-054); 56708
(October 26, 2007), 72 FR 61925 (November 1, 2007) (SR-NASDAQ-2007-
078); 56867 (November 29, 2007), 72 FR 69263 (December 7, 2007) (SR-
NASDAQ-2007-065); 55335 (February 23, 2007), 72 FR 9369 (March 1,
2007) (SR-NASDAQ-2007-005); 54613 (October 17, 2006), 71 FR 62325
(October 24, 2006) (SR-NASDAQ 2006-043); 54271 (August 3, 2006), 71
FR 45876 (August 10, 2006) (SR-NASDAQ-2006-027); and 54155 (July 14,
2006), 71 FR 41291 (July 20, 2006) (SR-NASDAQ-2006-001).
\5\ See Securities Exchange Act Release No. 59154 (December 23,
2008), 73 FR 80468 (December 31, 2008).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\6\ in general, and with
Section 6(b)(5) of the Act,\7\ 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. Specifically,
the proposed rule change will allow the Exchange to continue receiving
inbound routes of equities orders from NES acting in its capacity as a
facility of Nasdaq, in a manner consistent with prior approvals and
established protections. The Exchange believes that extending the
previously approved pilot period for three months is of sufficient
length to permit both the Exchange and the Commission to assess the
impact of the Exchange's authority to receive direct inbound routes of
equities orders via NES (including the attendant obligations and
conditions).
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
BX 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
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 rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it 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 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
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. BX has requested that the Commission
waive the 30-day operative delay. BX notes that the proposal will allow
the Exchange to continue receiving inbound routes of equities orders
from NES, in a manner consistent with prior approvals and established
protections, while also permitting the Exchange and the Commission to
assess the impact of the pilot.\12\ 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 allow the
pilot period to be extended without interruption through March 23,
2010. For this reason, the Commission designates the proposed rule
change to be operative upon filing with the Commission.\13\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission 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 satisfied this requirement.
\11\ Id.
\12\ See supra at II.A.2.
\13\ For the 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).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change the Commission may summarily abrogate
[[Page 1104]]
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-2009-085 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-2009-085. 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 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-
2009-085 and should be submitted on or before January 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-78 Filed 1-7-10; 8:45 am]
BILLING CODE 8011-01-P
