Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delete Temporary Rule 1903, 33867-33868 [2010-14366]
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Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62230; File No. SR–ISE–
2010–52]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Delete Temporary Rule
1903
June 4, 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 May 21,
2010, International Securities Exchange,
LLC (‘‘ISE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. 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 ISE proposes to delete Temporary
Rule 1903. The text of the proposed rule
change is available on ISE’s Web site at
https://www.ise.com, on the
Commission’s Web site at https://
www.sec.gov, at ISE, 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
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
(‘‘P’’) and Principal Acting as Agent (‘‘P/
A’’) orders entered to the Exchange
through the order routing hub
developed by the Options Clearing
Corporation (‘‘OCC Hub’’).
At the time of approval of the Options
Order Protection and Locked/Crossed
Market Plan (‘‘New Plan’’) and the
simultaneous withdrawal of the
Exchange from the Plan for the Purpose
of Creating and Operating an
Intermarket Options Linkage (‘‘Old
Plan’’), the Exchange also filed and
received approval for rules
implementing the New Plan.3 Certain
Participants to the New Plan did not
have technology in place to take full
advantage of the New Plan, and
remained dependent on the OCC Hub to
route orders to markets at the NBBO.
The Exchange was aware that such
dependence might occur, and included
a Temporary Rule Governing P and
P/A orders as part of the implementing
rules for the New Plan.
All of the Participant Exchanges have
now migrated off the OCC Hub;
consequently the rules related to the
OCC Hub and the Old Plan are no longer
necessary.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 4 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and furthers
the objectives of Section 6(b)(5) 5 in
particular in that it is designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts, to remove
impediments to and to perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest, as the rules are now
obsolete and should be removed from
the Exchange’s rulebook.
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.
mstockstill on DSKH9S0YB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
1. Purpose
The purpose of this filing is to delete
outdated rules, specifically, Temporary
Rule 1903, related to the receipt,
execution, and reporting of Principal
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
17:15 Jun 14, 2010
Jkt 220001
3 See Securities Exchange Act Release No. 60559
(August 21, 2009), 74 FR 44425 (August 28, 2009).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
33867
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 foregoing 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) by its terms, does not 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) thereunder.7
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–ISE–2010–52 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–ISE–2010–52. 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
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to 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.
7 17
E:\FR\FM\15JNN1.SGM
15JNN1
33868
Federal Register / Vol. 75, No. 114 / Tuesday, June 15, 2010 / Notices
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–ISE–
2010–52 and should be submitted on or
before July 6, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–14366 Filed 6–14–10; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–62247; File No. SR–
NYSEArca–2010–43]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NYSE
Arca, Inc. Amending Rule 5.2(b)(1)
mstockstill on DSKH9S0YB1PROD with NOTICES
June 9, 2010.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on May 21,
2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have
substantially been prepared by NYSE
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 5.2(b)(1)—Notification
Requirements for Offering of Securities
to clarify its applicability. A copy of this
filing is available on the Exchange’s
Web site at https://www.nyse.com, at the
Exchange’s principal office, on the
Commission’s Web site at https://
www.sec.gov, 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,
NYSE Arca 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 those
statements may be examined at the
places specified in Item IV below. 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 the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
8 17
Arca. The Exchange has designated the
proposed rule change as constituting a
‘‘non-controversial’’ rule change under
Section 19(b)(3)(A) of the Act,4 and Rule
19b–4(f)(6) thereunder,5 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. Purpose
The purpose of this filing is to clarify
the applicability of Rule 5.2(b)(1)—
Notification Requirements for Offering
of Securities. Specifically, the Exchange
proposes to amend Rule 5.2(b)(1) in
order to make clear that an Equity
Trading Permit (‘‘ETP’’) Holder, acting as
the lead underwriter for any offering in
a security listed on any national
securities exchange, is obligated to
notify the Exchange of the offering,
regardless of where the offering is listed.
In its current form, Rule 5.2(b)(1)
requires ETP Holders to notify the
Exchange of ‘‘any’’ offering when acting
as the lead underwriter. Therefore, the
current rule language can be construed
to require that ETP Holders notify the
Exchange of all offerings in such
1 15
VerDate Mar<15>2010
17:15 Jun 14, 2010
4 15
5 17
Jkt 220001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00110
Fmt 4703
Sfmt 4703
circumstances, including offerings of
securities listed on national securities
exchanges other than NYSE Arca.
However, the purpose section of the
November 2004 19b–4 rule filing that
created Rule 5.2(b)(1) states that ‘‘Rule
5.2(b)(1) would require an [ETP Holder]
that participates in any offering of
securities listed on the Exchange to
submit certain information to PCXE
regarding the offering (emphasis
added).’’ 6 For the following reasons, the
Exchange proposes to add language to
Rule 5.2(b)(1) in order to make clear that
ETP Holders who act as lead
underwriters in offerings of securities
listed on NYSE Arca or any other
national securities exchange must notify
the Exchange of such offerings. First, the
language in the November 2004 19b–4
unnecessarily limits the scope of Rule
5.2(b)(1) to offerings of securities listed
on NYSE Arca. Second, the Exchange
regularly receives notices from ETP
Holders of offerings of securities listed
on national securities exchanges other
than NYSE Arca and regularly
investigates potential Regulation M
violations in connection with such
offerings. Finally, the Exchange depends
on ETP Holders to notify it of offerings
of securities listed on NYSE Arca and
other national securities exchanges in
order to effectively surveil for and
investigate potential violations of
Regulation M in connection with such
offerings.7
The proposed amendment to Rule
5.2(b)(1) codifies the Exchange’s
previously published interpretation of
Rule 5.2(b)(1),8 and the Exchange’s
practice of requiring that ETP Holders
who act as lead underwriters in any
offering in a security listed on any
national securities exchange notify the
Exchange of such offering. The
Exchange is not otherwise altering the
rights or obligations of ETP Holders.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
6 Exchange Act Release No. 34–50662 (November
15, 2004), 69 FR 67770 (November 19, 2004) (File
No. SR–PCX–2004–102).
7 The Exchange cannot investigate offerings of
securities that are not listed on a national securities
exchange because the Exchange’s jurisdictional
purview does not cover trading activity in such
securities.
8 See Exchange Regulatory Information Bulletin
RBE 07–04 (May 31, 2007).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
E:\FR\FM\15JNN1.SGM
15JNN1
]]>Agencies
[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Notices]
[Pages 33867-33868]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14366]
[[Page 33867]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62230; File No. SR-ISE-2010-52]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Delete Temporary Rule 1903
June 4, 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 May 21, 2010, International Securities Exchange, LLC (``ISE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE proposes to delete Temporary Rule 1903. The text of the
proposed rule change is available on ISE's Web site at https://www.ise.com, on the Commission's Web site at https://www.sec.gov, at
ISE, 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 on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. 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
The purpose of this filing is to delete outdated rules,
specifically, Temporary Rule 1903, related to the receipt, execution,
and reporting of Principal (``P'') and Principal Acting as Agent (``P/
A'') orders entered to the Exchange through the order routing hub
developed by the Options Clearing Corporation (``OCC Hub'').
At the time of approval of the Options Order Protection and Locked/
Crossed Market Plan (``New Plan'') and the simultaneous withdrawal of
the Exchange from the Plan for the Purpose of Creating and Operating an
Intermarket Options Linkage (``Old Plan''), the Exchange also filed and
received approval for rules implementing the New Plan.\3\ Certain
Participants to the New Plan did not have technology in place to take
full advantage of the New Plan, and remained dependent on the OCC Hub
to route orders to markets at the NBBO. The Exchange was aware that
such dependence might occur, and included a Temporary Rule Governing P
and P/A orders as part of the implementing rules for the New Plan.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 60559 (August 21,
2009), 74 FR 44425 (August 28, 2009).
---------------------------------------------------------------------------
All of the Participant Exchanges have now migrated off the OCC Hub;
consequently the rules related to the OCC Hub and the Old Plan are no
longer necessary.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \4\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \5\ in
particular in that it is designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest, as the rules are now obsolete and
should be removed from the Exchange's rulebook.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 foregoing 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) by its terms, does not 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, it has become effective pursuant to Section
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to 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.
---------------------------------------------------------------------------
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 Number SR-ISE-2010-52 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-ISE-2010-52. 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
[[Page 33868]]
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-ISE-2010-52 and should be submitted on
or before July 6, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-14366 Filed 6-14-10; 8:45 am]
BILLING CODE 8011-01-P
