Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Do-Not-Route Orders, 36143-36144 [2010-15242]
Download as PDF
<![CDATA[
Federal Register / Vol. 75, No. 121 / Thursday, June 24, 2010 / Notices
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–
NYSEAmex–2010–25 and should be
submitted on or before July 15, 2010.
order that cannot be executed upon
entry, or placed on the Exchange’s limit
order book, will be automatically
cancelled.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
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.
Supplementary Material to Rule 715
.01 no change.
* * *
[FR Doc. 2010–15245 Filed 6–23–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62301; File No. SR–ISE–
2010–49]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Related to Do-Not-Route
Orders
June 16, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Exchange Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on June 14, 2010, the International
Securities Exchange, LLC (the
‘‘Exchange’’ or the ‘‘ISE’’) filed with the
Securities and Exchange Commission
(the ‘‘SEC’’ or 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.
emcdonald on DSK2BSOYB1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt a donot-route order type. The text of the rule
amendment is as follows (additions are
in italics):
Rule 715. Types of Orders
(a) through (l) no change.
(m) Do-Not-Route Orders. A do-notroute order is a market or limit order
that is to be executed in whole or in part
on the Exchange only. Due to prices
available on another options exchange
(as provided in Chapter 19 (Order
Protection; Locked and Crossed
Markets)), any balance of a do-not-route
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:47 Jun 23, 2010
Jkt 220001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(1) Purpose—The Exchange’s rules
related to intermarket linkage provide,
among other things, that transactions
not be executed at prices that are
inferior to the national best bid or offer
(the ‘‘trade-through rule’’).3 Currently,
the Exchange cancels marketable noncustomer orders that cannot be executed
because its prices are inferior to the
national best bid or offer, while such
marketable customer orders are
presented to the primary market maker
for handling.4 The Exchange is
proposing to adopt a do-not-route order
so that customers may indicate that they
want their orders canceled if they are
marketable, but not executable on the
Exchange. If a customer order is not
marked as a do-not-route order, it would
continue to be presented to the primary
market maker for handling if it is
marketable but not executable on the
Exchange. A do-not-route order is a
market or limit order. This order type is
commonly offered on other exchanges.5
(2) 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
3 ISE
Rule 1901 (Order Protection).
Rule 714 (Automatic Execution of Orders).
5 E.g., NYSE Arca Rule 6.62(p) (PNP Orders are
not routable orders); NASDAQ OMX PHLX Rule
1066(c)(8) (Immediate or Cancel Orders are not
routable orders); and CBOE Rule 6.53(s) (CBOE
Only orders are not routable orders).
4 ISE
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
36143
remove impediments to and perfect the
mechanism for a free and open market
and a national market system, and in
general, to protect investors and the
public interest. In particular, the
proposal will give customers greater
control over where their orders are
executed if they so choose.
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
Exchange 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 does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, 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:
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\24JNN1.SGM
24JNN1
36144
Federal Register / Vol. 75, No. 121 / Thursday, June 24, 2010 / Notices
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–2010–49 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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62323; File No. SR–C2–
2010–002]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Order Granting Approval of a
Proposed Rule Change Relating to the
Corporate Restructuring of C2 in
Connection With the Demutualization
of the Chicago Board Options
Exchange, Incorporated
June 17, 2010.
emcdonald on DSK2BSOYB1PROD with NOTICES
I. Introduction
On May 14, 2010, pursuant to Section
All submissions should refer to File
19(b)(1) of the Securities Exchange Act
Number SR–ISE–2010–49. This file
of 1934 (‘‘Act’’),1 and Rule 19b–4
number should be included on the
thereunder,2 C2 Options Exchange,
subject line if e-mail is used. To help the Incorporated (‘‘C2’’) filed with the
Commission process and review your
Securities and Exchange Commission
comments more efficiently, please use
(‘‘Commission’’) a proposed rule change
only one method. The Commission will relating to its corporate structure in
post all comments on the Commission’s connection with the plan of its parent
company, the Chicago Board Options
Internet Web site (https://www.sec.gov/
Exchange, Incorporated (‘‘CBOE’’), to
rules/sro.shtml). Copies of the
restructure from a Delaware non-stock
submission, all subsequent
corporation to a Delaware
amendments, all written statements
stock corporation that would be a
with respect to the proposed rule
wholly-owned subsidiary of CBOE
change that are filed with the
Holdings, Inc. (‘‘CBOE Holdings’’), a
Commission, and all written
holding company organized as a
communications relating to the
Delaware stock corporation (‘‘CBOE
proposed rule change between the
3
Commission and any person, other than Demutualization’’). The proposed rule
change was published for comment in
those that may be withheld from the
the Federal Register on May 25, 2010.4
public in accordance with the
The Commission received no comments
provisions of 5 U.S.C. 552, will be
on the proposal.
available for Web site viewing and
II. Discussion and Commission
printing in the Commission’s Public
Findings
Reference Room, on official business
days between the hours of 10 a.m. and
After careful review of the proposal,
3 p.m. Copies of the filing also will be
the Commission finds that the proposed
rule change is consistent with the
available for inspection and copying at
the principal office of the Exchange. All requirements of the Act and the rules
and regulations thereunder applicable to
comments received will be posted
a national securities exchange.5 In
without change; the Commission does
particular, as discussed in more detail
not edit personal identifying
below, the Commission finds that the
information from submissions. You
proposed rule change is consistent with
should submit only information that
6
you wish to make available publicly. All Section 6(b) of the Act in general, and
furthers the objectives of Section 6(b)(1)
submissions should refer to File
7
Number SR–ISE–2010–49 and should be of the Exchange Act, in particular, in
that it enables C2 to be so organized as
submitted on or before July 15, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–15242 Filed 6–23–10; 8:45 am]
BILLING CODE 8011–01–P
8 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:47 Jun 23, 2010
Jkt 220001
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 62158
(May 24, 2010), 75 FR 30082 (May 28, 2010) (SR–
CBOE–2008–88) (order approving the CBOE
Demutualization).
4 See Securities Exchange Act Release No. 62118
(May 18, 2010), 75 FR 29375.
5 In approving the proposed rule change, the
Commission has considered its impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(1).
2 17
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
to have the capacity to be able to carry
out the purposes of the Act and to
comply, and to enforce compliance by
its members and persons associated
with its members, with the provisions of
the Act, the rules and regulations
thereunder, and the rules of C2. The
Commission also finds that this filing
furthers the objectives of Section 6(b)(5)
of the Act insofar as it would result in
an exchange governance structure
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to remove impediments to, and
perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest.8 In
particular, the Commission believes that
the Certificate of Incorporation and
Bylaws of CBOE Holdings and C2 are
designed to protect and maintain the
integrity of the self-regulatory functions
of C2 and to allow it to carry out it
regulatory responsibilities under the
Act.
C2 is currently a wholly-owned
subsidiary of CBOE.9 When the
corporate restructuring in connection
with the CBOE Demutualization is
complete, CBOE will become a whollyowned subsidiary of CBOE Holdings. At
the same time, C2 has proposed to
become a wholly-owned subsidiary
CBOE Holdings by having CBOE
dividend-up to CBOE Holdings all of the
shares of C2.10 Consequently, after the
corporate restructuring in connection
with the CBOE Demutualization is
completed, CBOE Holdings would hold
all of the outstanding common stock of
both C2 and CBOE, as well as certain
other entities that are currently
8 15
U.S.C. 78f(b)(5).
Securities Exchange Act Release No. 61152
(December 10, 2009), 74 FR 66699 (December 16,
2009) (File No. 10–191) (order approving the
application of C2 for registration as a national
securities exchange). See also Securities Exchange
Act Release No. 61140 (December 10, 2009), 74 FR
67294 (December 18, 2009) (SR–CBOE–2009–048)
(order approving a proposed rule change regarding
authority over C2 Options Exchange, Incorporated).
10 After the restructuring, the owners of
membership interests in CBOE will become
stockholders of CBOE Holdings through the
conversion of their memberships into shares of
common stock of CBOE Holdings. In addition,
members of the settlement class in the lawsuit
brought by The Board of Trade of the City of
Chicago, Inc., its parent company, CME Group, Inc.,
and a class of individuals (collectively, the ‘‘CBOT
Parties’’) against CBOE and CBOE’s board of
directors will become stockholders of CBOE
Holdings. CME Group Inc. et al. v. CBOE Inc. et al.,
Civil Action No. 2369–VCN (Filed Aug. 23, 2006).
CBOE entered into a Stipulation of Settlement
(‘‘Stipulation’’) on August 20, 2008 with the CBOT
Parties to resolve this lawsuit. The Stipulation and
amendments to it can be found at (https://
www.cboe.org/Legal/).
9 See
E:\FR\FM\24JNN1.SGM
24JNN1
]]>Agencies
[Federal Register Volume 75, Number 121 (Thursday, June 24, 2010)]
[Notices]
[Pages 36143-36144]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15242]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62301; File No. SR-ISE-2010-49]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Related to Do-Not-Route Orders
June 16, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on June 14, 2010, the International Securities
Exchange, LLC (the ``Exchange'' or the ``ISE'') filed with the
Securities and Exchange Commission (the ``SEC'' or 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 Exchange proposes to adopt a do-not-route order type. The text
of the rule amendment is as follows (additions are in italics):
Rule 715. Types of Orders
(a) through (l) no change.
(m) Do-Not-Route Orders. A do-not-route order is a market or limit
order that is to be executed in whole or in part on the Exchange only.
Due to prices available on another options exchange (as provided in
Chapter 19 (Order Protection; Locked and Crossed Markets)), any balance
of a do-not-route order that cannot be executed upon entry, or placed
on the Exchange's limit order book, will be automatically cancelled.
Supplementary Material to Rule 715
.01 no change.
* * *
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--The Exchange's rules related to intermarket linkage
provide, among other things, that transactions not be executed at
prices that are inferior to the national best bid or offer (the
``trade-through rule'').\3\ Currently, the Exchange cancels marketable
non-customer orders that cannot be executed because its prices are
inferior to the national best bid or offer, while such marketable
customer orders are presented to the primary market maker for
handling.\4\ The Exchange is proposing to adopt a do-not-route order so
that customers may indicate that they want their orders canceled if
they are marketable, but not executable on the Exchange. If a customer
order is not marked as a do-not-route order, it would continue to be
presented to the primary market maker for handling if it is marketable
but not executable on the Exchange. A do-not-route order is a market or
limit order. This order type is commonly offered on other exchanges.\5\
---------------------------------------------------------------------------
\3\ ISE Rule 1901 (Order Protection).
\4\ ISE Rule 714 (Automatic Execution of Orders).
\5\ E.g., NYSE Arca Rule 6.62(p) (PNP Orders are not routable
orders); NASDAQ OMX PHLX Rule 1066(c)(8) (Immediate or Cancel Orders
are not routable orders); and CBOE Rule 6.53(s) (CBOE Only orders
are not routable orders).
---------------------------------------------------------------------------
(2) 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, the proposal will give customers
greater control over where their orders are executed if they so choose.
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 Exchange 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 does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, 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:
[[Page 36144]]
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-2010-49 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-2010-49. 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, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
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-2010-49 and should be submitted on or before July
15, 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. 2010-15242 Filed 6-23-10; 8:45 am]
BILLING CODE 8011-01-P
