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, 21085-21087 [2010-9283]
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Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
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 Web site viewing and
printing 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–2010–028 and
should be submitted on or before May
13, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–9284 Filed 4–21–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61929; File No. SR–BX–
2010–031]
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
srobinson on DSKHWCL6B1PROD with NOTICES
April 16, 2010.
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 April 15,
2010, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18:25 Apr 21, 2010
Jkt 220001
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.
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 April 30, 2010
to June 25, 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
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
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).
4 17
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
21085
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.
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.
On September 11, 2006, January 16,
2007, July 2, 2007, January 18, 2008,
January 26, 2009, May 21, 2009,
November 24, 2009 and February 22,
2010 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 from May 29, 2009 until
November 30, 2009,14 from November
30, 2009 until February 26, 2010,15 and
from February 26, 2010 until April 30,
2010,16 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.
7 See Securities Exchange Act Release No. 53357
(February 23, 2006), 71 FR 10730 (March 2, 2006)
(SR–BSE–2005–52).
8 See Securities Exchange Act Release No. 54082
(June 30, 2006), 71 FR 38913 (July 10, 2006) (SR–
BSE–2006–29).
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).
15 See Securities Exchange Act Release No. 61065
(November 25, 2009), 74 FR 62860 (December 1,
2009) (SR–BX–2009–076).
16 See Securities Exchange Act Release No. 61577
(February 24, 2010), 75 FR 9464 (March 2, 2010)
(SR–BX–2010–017).
E:\FR\FM\22APN1.SGM
22APN1
21086
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
This filing from the Exchange again
proposes extending the effective date of
the amended rule governing its Directed
Order process on BOX, from April 30,
2010 to June 25, 2010.17 In the event the
Commission reaches a decision with
respect to the corresponding Exchange
proposal to amend the BOX Rules before
June 25, 2010, the amended rule
governing the Directed Order process on
the BOX will cease to be effective at the
time of that decision.
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 April 30, 2010
to June 25, 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,18 in general, and
Section 6(b)(5) of the Act,19 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.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
srobinson on DSKHWCL6B1PROD 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.
17 In the event that the issue of anonymity in the
Directed Order process is not resolved by June 25,
2010 the Exchange will consider whether to submit
another filing under Rule 19b–4(f)(6) extending this
rule and system process.
18 15 U.S.C. 78f(b).
19 15 U.S.C. 78f(b)(5).
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18:25 Apr 21, 2010
Jkt 220001
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) 20 of the Act and
Rule 19b–4(f)(6) thereunder.21
A proposed rule change filed under
Rule 19b–4(f)(6) 22 normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 23 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),24
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 without
interruption and clarify that Directed
Orders on BOX are not anonymous.25
Accordingly, the Commission
designates the proposed rule change
operative upon filing with the
Commission.
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.
20 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Commission deems this requirement to have been
met.
22 17 CFR 240.19b–4(f)(6).
23 17 CFR 240.19b–4(f)(6)(iii).
24 Id.
25 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).
21 17
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
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–BX–2010–031 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–2010–031. 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 Web site viewing and
printing 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–
2010–031 and should be submitted on
or before May 13, 2010.
E:\FR\FM\22APN1.SGM
22APN1
Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–9283 Filed 4–21–10; 8:45 am]
BILLING CODE 8011–01–P
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.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–61931; File No. SR–BX–
2010–030]
1. Purpose
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Modify Fees
for Members Using the NASDAQ OMX
BX Equities System
April 16, 2010.
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 April 13,
2010, NASDAQ OMX BX, Inc. (‘‘BX’’)
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 BX. Pursuant to
Section 19(b)(3)(A)(ii) of the Act 3 and
Rule 19b–4(f)(2) thereunder,4 BX has
designated this proposal as establishing
or changing a due, fee, or other charge,
which renders the proposed rule change
effective upon filing. 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 proposes to modify pricing for BX
members using the NASDAQ OMX BX
Equities System. BX will implement the
proposed change on April 15, 2010. The
text of the proposed rule change is
available at https://nasdaqomxbx.
cchwallstreet.com, at BX’s principal
office, and at the Commission’s Public
Reference Room.
srobinson on DSKHWCL6B1PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, BX
included statements concerning the
purpose of and basis for the proposed
rule change and discussed any
26 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
VerDate Nov<24>2008
18:25 Apr 21, 2010
Jkt 220001
BX is proposing to modify its fees for
orders that execute at prices below $1.
Currently, BX charges 0.3% (30 basis
points) of the total dollar value of the
execution to members accessing
liquidity, and provides a rebate of
0.25% (25 basis points) of the total
dollar value to members providing
liquidity. Through this filing, BX will
reduce the fee to access liquidity to
0.15% (15 basis points) of the total
dollar value and the rebate for providing
liquidity to 0.05% (5 basis points) of the
total dollar value. The change is a
competitive response to several other
transaction venues that have made midApril changes to fees for securities
priced under $1.5 The new fees are
consistent with the limitations of
Regulation NMS, SEC Rule 610(c), for
securities with a price of less than $1.
2. Statutory Basis
BX 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)(4) of the Act,7 in
particular, in that it provides for the
equitable allocation of reasonable dues,
fees and other charges among members
and issuers and other persons using any
facility or system which BX operates or
controls. The impact of the price
changes upon the net fees paid by a
particular market participant will
depend upon a number of variables,
including the relative availability of
liquidity on BX and other venues, the
prices of the market participant’s quotes
and orders relative to the national best
bid and offer (i.e., its propensity to add
or remove liquidity), and the types of
securities that it trades. BX believes that
the proposed changes are reasonable
5 See
https://apps.nyse.com/commdata/pub19b4.
nsf/docs/50B8C6B6842FEA1E85257700006A989D/
$FILE/NYSEArca-2010-26.pdf (NYSE Arca); https://
www.nsx.com/resources/content/5/1/documents/
SR-NSX-2010-04.pdf (National Stock Exchange);
https://www.ise.com/assets/documents/Options
Exchange/legal/proposed_rule_changes/2010/SR–
ISE–2010-29$Proposed_Rule_Change_Relating_to_
Direct_Edge%20_ECN_Fee_Change_for_ISE_
Members$20100405.pdf (Direct Edge).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
21087
and equitable in that they apply
uniformly to all similarly situated
members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX does not believe that the proposed
rule change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act, as amended.
Because the market for order execution
and routing is extremely competitive,
members may readily direct orders to
BX’s competitors if they object to the
proposed rule change.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2010–030 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–2010–030. This file
8 15
9 17
E:\FR\FM\22APN1.SGM
U.S.C. 78s(b)(3)(a)(ii).
CFR 240.19b–4(f)(2).
22APN1
]]>Agencies
[Federal Register Volume 75, Number 77 (Thursday, April 22, 2010)]
[Notices]
[Pages 21085-21087]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9283]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61929; File No. SR-BX-2010-031]
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
April 16, 2010.
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 April 15, 2010, 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 April 30, 2010 to June 25, 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, May 21, 2009, November 24, 2009 and February
22, 2010 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\ from May 29, 2009 until November 30, 2009,\14\
from November 30, 2009 until February 26, 2010,\15\ and from February
26, 2010 until April 30, 2010,\16\ 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).
\15\ See Securities Exchange Act Release No. 61065 (November 25,
2009), 74 FR 62860 (December 1, 2009) (SR-BX-2009-076).
\16\ See Securities Exchange Act Release No. 61577 (February 24,
2010), 75 FR 9464 (March 2, 2010) (SR-BX-2010-017).
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[[Page 21086]]
This filing from the Exchange again proposes extending the
effective date of the amended rule governing its Directed Order process
on BOX, from April 30, 2010 to June 25, 2010.\17\ In the event the
Commission reaches a decision with respect to the corresponding
Exchange proposal to amend the BOX Rules before June 25, 2010, the
amended rule governing the Directed Order process on the BOX will cease
to be effective at the time of that decision.
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\17\ In the event that the issue of anonymity in the Directed
Order process is not resolved by June 25, 2010 the Exchange will
consider whether to submit another filing under Rule 19b-4(f)(6)
extending this rule and system process.
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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 April 30, 2010 to June 25, 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,\18\ in general, and
Section 6(b)(5) of the Act,\19\ 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.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
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) \20\ of the Act and Rule 19b-4(f)(6)
thereunder.\21\
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission deems this requirement to have been met.
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A proposed rule change filed under Rule 19b-4(f)(6) \22\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \23\ 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),\24\ 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 without interruption and clarify that
Directed Orders on BOX are not anonymous.\25\ Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.
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\22\ 17 CFR 240.19b-4(f)(6).
\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ Id.
\25\ 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).
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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-2010-031 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-2010-031. 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 Web site viewing and
printing 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-2010-031 and should be
submitted on or before May 13, 2010.
[[Page 21087]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-9283 Filed 4-21-10; 8:45 am]
BILLING CODE 8011-01-P
