Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make the Exchange's Pilot Program To Expose All-Or-None Orders Permanent, 1428-1429 [2010-240]
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1428
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices
this date.11 At any time within 60 days
of the date of effectiveness of the
proposed rule change, the Commission,
after consultation with the CFTC, may
summarily abrogate the proposed rule
change and require that the proposed
rule change be refiled in accordance
with the provisions of Section 19(b)(1)
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–NFA–2009–01.
srobinson on DSKHWCL6B1PROD with NOTICES
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–NFA–2009–01. 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 NFA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
11 See
note 4.
VerDate Nov<24>2008
16:06 Jan 08, 2010
Jkt 220001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
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 January 31,
2010.]
[FR Doc. 2010–222 Filed 1–8–10; 8:45 am]
*
BILLING CODE 8011–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
should submit only information that
you wish to make publicly available.
All submissions should refer to File
Number SR–NFA–2009–01 and should
be submitted on or before February 1,
2010.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61287; File No. SR–ISE–
2009–113]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Make the Exchange’s Pilot
Program To Expose All-Or-None
Orders Permanent
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, 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 is proposing to make
permanent its pilot program regarding
limitations on orders to include the
exposure of all-or-none orders. The text
of the proposed rule change is as
follows, with deletions in [brackets] and
additions italicized:
Rule 717. Limitations on Orders
*
*
*
*
*
12 17
CFR 200.30–3(a)(73).
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).
1 15
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
*
*
*
*
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
(a) Purpose—The purpose of the
proposed rule change is to make
permanent the Exchange’s pilot program
regarding limitations on orders to
include the exposure of all-or-none
orders.
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
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.
E:\FR\FM\11JAN1.SGM
11JAN1
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
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. The broadcast message, which
includes all of the terms of the order,
will be made available to any market
participant, not just members.7
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.8 The Exchange
subsequently extended the pilot for an
additional month,9 and again through
December 31, 2009.10 During the
extension through December 31, 2009,
the broadcast message was made
available to any market participant, not
just members. Thus, all of the terms of
the order continue to be disclosed to all
market participants. The pilot was
subsequently extended for an additional
month and is set to expire on January
31, 2010. The Exchange now proposes
to make the pilot permanent, as of
February 1, 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.
7 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.
8 See Exchange Act Release No. 60311 (July 15,
2009), 74 FR 36290 (July 22, 2009).
9 See Exchange Act Release No. 60866 (October
22, 2009), 74 FR 55879 (October 29, 2009).
10 See Exchange Act Release No. 61016
(November 17, 2009), 74 FR 61393 (November 24,
2009).
VerDate Nov<24>2008
16:06 Jan 08, 2010
Jkt 220001
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.
1429
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
No. SR–ISE–2009–113 on the subject
line.
Paper Comments
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
This proposed rule change does not
significantly affect the protection of
investors or the public interest, does not
impose any significant burden on
competition, and, by its terms, does not
become operative for 30 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.11 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 filing
the proposed rule change as required by
Rule 19b–4(f)(6).12 The proposed rule
change will permit the exchange to
make the current pilot program
permanent. For the foregoing reason,
this rule filing qualifies for immediate
effectiveness as a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 of the Act, as it does not
raise any new, unique or substantive
issues, and is beneficial for competitive
purposes and to promote a free and
open market for the benefit of investors.
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.
• 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–2009–113. 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–2009–113 and should be
submitted on or before February 1, 2010.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
11 The
Commission notes that the pilot will
become permanent as of February 1, 2010 (see
supra Section II(A)(a)).
12 17 CFR 240.19b–4(f)(6).
PO 00000
Frm 00097
Fmt 4703
Sfmt 9990
[FR Doc. 2010–240 Filed 1–8–10; 8:45 am]
BILLING CODE 8011–01–P
13 17
E:\FR\FM\11JAN1.SGM
CFR 200.30–3(a)(12).
11JAN1
]]>Agencies
[Federal Register Volume 75, Number 6 (Monday, January 11, 2010)]
[Notices]
[Pages 1428-1429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-240]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61287; File No. SR-ISE-2009-113]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Make the Exchange's Pilot Program To Expose All-Or-None
Orders Permanent
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, 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.
---------------------------------------------------------------------------
\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 make permanent its pilot program
regarding limitations on orders to include the exposure of all-or-none
orders. 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 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 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
(a) Purpose--The purpose of the proposed rule change is to make
permanent the Exchange's pilot program regarding limitations on orders
to include the exposure of all-or-none orders.
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
[[Page 1429]]
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. The
broadcast message, which includes all of the terms of the order, will
be made available to any market participant, not just members.\7\
---------------------------------------------------------------------------
\6\ Supplementary Material .02 to ISE Rule 713.
\7\ 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.
---------------------------------------------------------------------------
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.\8\ The Exchange
subsequently extended the pilot for an additional month,\9\ and again
through December 31, 2009.\10\ During the extension through December
31, 2009, the broadcast message was made available to any market
participant, not just members. Thus, all of the terms of the order
continue to be disclosed to all market participants. The pilot was
subsequently extended for an additional month and is set to expire on
January 31, 2010. The Exchange now proposes to make the pilot
permanent, as of February 1, 2010.
---------------------------------------------------------------------------
\8\ See Exchange Act Release No. 60311 (July 15, 2009), 74 FR
36290 (July 22, 2009).
\9\ See Exchange Act Release No. 60866 (October 22, 2009), 74 FR
55879 (October 29, 2009).
\10\ See Exchange Act Release No. 61016 (November 17, 2009), 74
FR 61393 (November 24, 2009).
---------------------------------------------------------------------------
(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
This proposed rule change does not significantly affect the
protection of investors or the public interest, does not impose any
significant burden on competition, and, by its terms, does not become
operative for 30 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.\11\ 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 filing the
proposed rule change as required by Rule 19b-4(f)(6).\12\ The proposed
rule change will permit the exchange to make the current pilot program
permanent. For the foregoing reason, this rule filing qualifies for
immediate effectiveness as a ``non-controversial'' rule change under
paragraph (f)(6) of Rule 19b-4 of the Act, as it does not raise any
new, unique or substantive issues, and is beneficial for competitive
purposes and to promote a free and open market for the benefit of
investors.
---------------------------------------------------------------------------
\11\ The Commission notes that the pilot will become permanent
as of February 1, 2010 (see supra Section II(A)(a)).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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-2009-113 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-2009-113. 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-2009-113 and should be
submitted on or before February 1, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-240 Filed 1-8-10; 8:45 am]
BILLING CODE 8011-01-P
