Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Program To Expose All-or-None Orders Until January 31, 2010, 1430-1431 [2010-239]
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1430
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61286; File No. SR–ISE–
2009–112]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Extend the Pilot Program
To Expose All-or-None Orders Until
January 31, 2010
January 5, 2010.
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 December
24, 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 and II 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 is proposing to amend
its rules to implement a broadcast
message that will inform market
participants when a non-marketable allor-none limit order is placed on the
limit order book. The text of the
proposed rule change is as follows, with
deletions in [brackets] and additions
italicized:
Rule 717. Limitations on Orders
*
*
*
*
*
srobinson on DSKHWCL6B1PROD with NOTICES
Supplementary Material to Rule 717
.01–.03 No Change.
.04 A non-marketable all-or-none limit
order shall be deemed ‘‘exposed’’ for the
purposes of paragraphs (d) and (e) one
second following a broadcast notifying
market participants that such an order to buy
or sell a specified number of contracts at a
specified price has been received in the
options series. This provision shall be in
effect on a pilot basis expiring [December 31,
2009] January 31, 2010.
*
*
*
*
*
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
16:06 Jan 08, 2010
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(a) Purpose—Pursuant to ISE Rule
717(d) and (e), Electronic Access
Members must expose agency orders on
the Exchange for at least one second
before entering a contra-side proprietary
order or a contra-side order that was
solicited from a broker-dealer, or utilize
one of the Exchange’s execution
mechanisms that have one second
exposure periods built into the
functionality.5
The Exchange operates an integrated
system that consolidates all market
maker quotes and orders, and
automatically disseminates the best bid
and offer. If a limit order is designated
as all-or-none (‘‘AON’’), the contingency
that the order must be executed in full
makes it ineligible for display in the
best bid or offer. Nevertheless, such
orders are maintained in the system and
remain available for execution after all
other trading interest at the same price
has been exhausted.6 Upon the receipt
of a non-marketable all-or-none limit
order, the system automatically will
send a broadcast message to all market
participants notifying them that an allor-none order to buy or to sell a
specified number of contracts at a
specified price has been placed on the
book.
On July 9, 2009, the Exchange
adopted a proposed rule change on a
three-month pilot basis to specify that a
non-marketable all-or-none limit order
is deemed ‘‘exposed’’ for the purposes of
Rule 717(d) and (e) one second
following a broadcast notifying
members that such an order to buy or
sell a specified number of contracts at
a specified price has been received in
5 See ISE Rule 716(d) (Facilitation Mechanism),
Rule 716(e) (Solicited Order Mechanism) and Rule
723 (Price Improvement Mechanism for Crossing
Transactions).
6 Supplementary Material .02 to ISE Rule 713.
1 15
VerDate Nov<24>2008
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.
Jkt 220001
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
the options series.7 The Exchange
subsequently extended the pilot for an
additional month,8 and then extended it
again through December 31, 2009.9
During the last extension, the broadcast
message was made available to any
market participant, not just members.10
Thus, all of the terms of the order are
disclosed to all market participants. The
Exchange now proposes to extend the
pilot until January 31, 2010.
(b) Basis—The basis under the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) for this proposed rule
change is the requirement under Section
6(b)(5) that an exchange have rules that
are designed to promote just and
equitable principles of trade, and 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, under the
proposed rule change all-or-none orders
will continue to be exposed to all
market participants so that there is a
greater opportunity for them to interact
with such orders.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose 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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
7 See Exchange Act Release No. 60311 (July 15,
2009), 74 FR 36290 (July 22, 2009).
8 See Exchange Act Release No. 60866 (October
22, 2009), 74 FR 55879 (October 29, 2009).
9 See Exchange Act Release No. 61016 (November
17, 2009), 74 FR 61393 (November 24, 2009).
10 The AON broadcast message is available
through the Exchange’s application programming
interface (‘‘API’’). Any member or non-member
connecting to the API can receive the AON
broadcast message. The Exchange is not proposing
to adopt a fee associated with receiving this
message, and any future fee would be filed with the
Commission.
E:\FR\FM\11JAN1.SGM
11JAN1
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices
days after the date of the 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 11 and Rule 19b–
4(f)(6) thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing.13 However, Rule 19b–
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. ISE
has requested that the Commission
waive the 30-day operative delay. The
Commission notes that waiver of the
operative delay will permit the pilot to
continue until January 31, 2010 without
further delay, and will provide all
market participants with the
opportunity to receive ISE’s broadcast
message with information about the
terms of new AON orders. The
Commission also notes that no
comments were received to date on the
existing pilot. For these reasons, the
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, and designates the
proposed rule change to be operative
upon filing with the Commission.15
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:
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 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 satisfied this
requirement.
14 Id.
15 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).
srobinson on DSKHWCL6B1PROD with NOTICES
12 17
VerDate Nov<24>2008
16:06 Jan 08, 2010
Jkt 220001
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
No. SR–ISE–2009–112 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 No.
SR–ISE–2009–112. 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 ISE. 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–ISE–2009–112 and should be
submitted on or before February 1, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–239 Filed 1–8–10; 8:45 am]
BILLING CODE 8011–01–P
16 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00099
Fmt 4703
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1431
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61284; File No. SR–NFA–
2009–02]
Self-Regulatory Organizations;
National Futures Association; Notice
of Filing and Immediate Effectiveness
of a Proposed Change to the
Interpretive Notice Regarding Security
Futures Products Proficiency Training
January 4, 2010.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–7 under the Act 2
notice is hereby given that on December
11, 2009, National Futures Association
(‘‘NFA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons. NFA
concurrently filed the proposed rule
change with the Commodity Futures
Trading Commission (‘‘CFTC’’).3
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
The amendments to the Interpretive
Notice titled ‘‘NFA Compliance Rules 2–
7 and 2–24 and Registration Rule 401:
Proficiency Requirements for Security
Futures Products’’ extend the relief from
having to take a proficiency exam to
engage in security futures activities from
December 31, 2009 to December 31,
2012.
A copy of this filing is available on
the Exchange’s Web site at https://
www.nfa.futures.org, on the
Commission’s Web site at https://
www.sec.gov, the Exchange’s principal
office 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
1 15
U.S.C. 78s(b)(7).
CFR 240.19b–7.
3 On December 31, 2009, NFA filed an update to
the proposed rule change to indicate that the CFTC,
by letter dated December 28, 2009, advised NFA
that the CFTC had determined not to review the
proposal and that NFA was permitted to make the
proposal effective as of December 28, 2009.
2 17
E:\FR\FM\11JAN1.SGM
11JAN1
]]>Agencies
[Federal Register Volume 75, Number 6 (Monday, January 11, 2010)]
[Notices]
[Pages 1430-1431]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-239]
[[Page 1430]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61286; File No. SR-ISE-2009-112]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Extend the Pilot Program To Expose All-or-None Orders Until
January 31, 2010
January 5, 2010.
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 December 24, 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 and II 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.
---------------------------------------------------------------------------
\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 is proposing to amend its rules to implement a
broadcast message that will inform market participants when a non-
marketable all-or-none limit order is placed on the limit order book.
The text of the proposed rule change is as follows, with deletions in
[brackets] and additions italicized:
Rule 717. Limitations on Orders
* * * * *
Supplementary Material to Rule 717
.01-.03 No Change.
.04 A non-marketable all-or-none limit order shall be deemed
``exposed'' for the purposes of paragraphs (d) and (e) one second
following a broadcast notifying market participants that such an
order to buy or sell a specified number of contracts at a specified
price has been received in the options series. This provision shall
be in effect on a pilot basis expiring [December 31, 2009] January
31, 2010.
* * * * *
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
(a) Purpose--Pursuant to ISE Rule 717(d) and (e), Electronic Access
Members must expose agency orders on the Exchange for at least one
second before entering a contra-side proprietary order or a contra-side
order that was solicited from a broker-dealer, or utilize one of the
Exchange's execution mechanisms that have one second exposure periods
built into the functionality.\5\
---------------------------------------------------------------------------
\5\ See ISE Rule 716(d) (Facilitation Mechanism), Rule 716(e)
(Solicited Order Mechanism) and Rule 723 (Price Improvement
Mechanism for Crossing Transactions).
---------------------------------------------------------------------------
The Exchange operates an integrated system that consolidates all
market maker quotes and orders, and automatically disseminates the best
bid and offer. If a limit order is designated as all-or-none (``AON''),
the contingency that the order must be executed in full makes it
ineligible for display in the best bid or offer. Nevertheless, such
orders are maintained in the system and remain available for execution
after all other trading interest at the same price has been
exhausted.\6\ Upon the receipt of a non-marketable all-or-none limit
order, the system automatically will send a broadcast message to all
market participants notifying them that an all-or-none order to buy or
to sell a specified number of contracts at a specified price has been
placed on the book.
---------------------------------------------------------------------------
\6\ Supplementary Material .02 to ISE Rule 713.
---------------------------------------------------------------------------
On July 9, 2009, the Exchange adopted a proposed rule change on a
three-month pilot basis to specify that a non-marketable all-or-none
limit order is deemed ``exposed'' for the purposes of Rule 717(d) and
(e) one second following a broadcast notifying members that such an
order to buy or sell a specified number of contracts at a specified
price has been received in the options series.\7\ The Exchange
subsequently extended the pilot for an additional month,\8\ and then
extended it again through December 31, 2009.\9\ During the last
extension, the broadcast message was made available to any market
participant, not just members.\10\ Thus, all of the terms of the order
are disclosed to all market participants. The Exchange now proposes to
extend the pilot until January 31, 2010.
---------------------------------------------------------------------------
\7\ See Exchange Act Release No. 60311 (July 15, 2009), 74 FR
36290 (July 22, 2009).
\8\ See Exchange Act Release No. 60866 (October 22, 2009), 74 FR
55879 (October 29, 2009).
\9\ See Exchange Act Release No. 61016 (November 17, 2009), 74
FR 61393 (November 24, 2009).
\10\ The AON broadcast message is available through the
Exchange's application programming interface (``API''). Any member
or non-member connecting to the API can receive the AON broadcast
message. The Exchange is not proposing to adopt a fee associated
with receiving this message, and any future fee would be filed with
the Commission.
---------------------------------------------------------------------------
(b) Basis--The basis under the Securities Exchange Act of 1934
(``Exchange Act'') for this proposed rule change is the requirement
under Section 6(b)(5) that an exchange have rules that are designed to
promote just and equitable principles of trade, and 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, under the proposed rule change all-or-
none orders will continue to be exposed to all market participants so
that there is a greater opportunity for them to interact with such
orders.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i) Does not significantly affect
the protection of investors or the public interest; (ii) does not
impose any significant burden on competition; and (iii) does not become
operative for 30
[[Page 1431]]
days after the date of the 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 \11\ and Rule 19b-4(f)(6)
thereunder.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\13\
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. ISE has requested that the
Commission waive the 30-day operative delay. The Commission notes that
waiver of the operative delay will permit the pilot to continue until
January 31, 2010 without further delay, and will provide all market
participants with the opportunity to receive ISE's broadcast message
with information about the terms of new AON orders. The Commission also
notes that no comments were received to date on the existing pilot. For
these reasons, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest, and designates the proposed rule change to be
operative upon filing with the Commission.\15\
---------------------------------------------------------------------------
\13\ 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 satisfied this requirement.
\14\ Id.
\15\ 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 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 No. SR-ISE-2009-112 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 No. SR-ISE-2009-112. 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 ISE. 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-ISE-2009-112 and should be
submitted on or before February 1, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-239 Filed 1-8-10; 8:45 am]
BILLING CODE 8011-01-P
