Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program That Allows for No Minimum Size Order Requirement for the Price Improvement Period Process Until July 18, 2011, 43223-43225 [2010-18034]
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Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62512; File No. SR–BX–
2010–046]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Extend a
Pilot Program That Allows for No
Minimum Size Order Requirement for
the Price Improvement Period Process
Until July 18, 2011
July 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 July 9,
2010 NASDAQ OMX BX, Inc.
(‘‘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.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
(a) The Exchange proposes to amend
the Supplementary Material to Chapter
V, Section 18 (The Price Improvement
Period ‘‘PIP’’) of the Rules of the Boston
Options Exchange Group, LLC (‘‘BOX’’)
to extend a pilot program that permits
BOX to have no minimum size
requirement for orders entered into the
PIP and under certain circumstances
permits the premature termination of
the PIP process (‘‘PIP Pilot Program’’).
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,
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
VerDate Mar<15>2010
15:15 Jul 22, 2010
Jkt 220001
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 purpose of the proposed rule
change is to extend the PIP Pilot
Program under the BOX Rules for
twelve (12) additional months. The PIP
Pilot Program allows BOX to have no
minimum size requirement for orders
entered into the PIP process and under
certain circumstances permits the
premature termination of the PIP
process.5 The proposed rule change
retains the text of Supplementary
Material .01 to Section 18 of Chapter V
of the BOX Rules and seeks to extend
the operation of the PIP Pilot Program
until July 18, 2011.
The Exchange notes that the PIP Pilot
Program provides small customer orders
with benefits not available under the
rules of some other exchanges. One of
the important factors of the PIP Pilot
Program is that it guarantees
Participants the right to trade with their
customer orders that are less than 50
contracts. In particular, any order
entered into the PIP is guaranteed an
execution at the end of the auction at a
price at least equal to the national best
bid or offer.
In further support of this proposed
rule change, and as required by the
Original PIP Pilot Program Approval
Order, the Exchange represents that
BOX has been submitting to the
Exchange and to the Commission a PIP
Pilot Program Report, offering detailed
data from, and analysis of, the PIP Pilot
Program. Although BOX is submitting
5 The Pilot Program is currently set to expire on
July 17, 2010. See Securities Exchange Act Release
No. 60337 (July 17, 2009), 74 FR 36805 (July 24,
2009) (SR–BX–2009–38). See also Securities and
Exchange Act Release Nos. 58942 (November 13,
2008), 73 FR 70394 (November 20, 2008) (SR–BSE–
2008–49); 58195 (July 18, 2008), 73 FR 43801 (July
28, 2008) (SR–BSE–2008–39); 55999 (July 2, 2007),
72 FR 37549 (July 10, 2007) (SR–BSE–2007–27);
54066 (June 29, 2006), 71 FR 38434 (July 6, 2006)
(SR–BSE–2006–24); 52149 (July 28, 2005), 70 FR
44704 (August 3, 2005) (SR–BSE–2005–22); 49068
(January 13, 2004), 69 FR 2775 (January 20, 2004)
(SR–BSE–2002–15) (‘‘Original PIP Pilot Program
Approval Order’’); and 51821 (June 10, 2005), 70 FR
35143 (June 16, 2005) (SR–BSE–2004–51) (Order
approving, among other things, under certain
circumstances the premature termination of a PIP
process).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
43223
the reports, the Exchange notes that it is
also responsible for the timeliness and
the accuracy of the information.
To aid the Commission in its
evaluation of the PIP Pilot Program,
BOX has represented to the Exchange
that BOX will provide the following
additional information each month: (1)
The number of orders of 50 contracts or
greater entered into the PIP auction; (2)
The percentage of all orders of 50
contracts or greater sent to BOX that are
entered into BOX’s PIP auction; (3) The
spread in the option, at the time an
order of 50 contracts or greater is
submitted to the PIP auction; (4) Of PIP
trades for orders of fewer than 50
contracts, the percentage done at the
National Best Bid or Offer (‘‘NBBO’’)
plus $.01, plus $.02, plus $.03, etc.; (5)
Of PIP trades for orders of 50 contracts
or greater, the percentage done at the
NBBO plus $.01, plus $.02, plus $.03,
etc.; (6) The number of orders submitted
by Order Flow Providers (‘‘OFPs’’) when
the spread was $.05, $.10, $.15, etc. For
each spread, BOX will specify the
percentage of contracts in orders of
fewer than 50 contracts submitted to
BOX’s PIP that were traded by: (a) The
OFP that submitted the order to the PIP;
(b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d)
Public Customer Orders (including
Customer PIP Orders (‘‘CPOs’’)); and (e)
unrelated orders (orders in standard
increments entered during the PIP). For
each spread, BOX will also specify the
percentage of contracts in orders of 50
contracts or greater submitted to BOX’s
PIP that were traded by: (a) The OFP
that submitted the order to the PIP; (b)
BOX Market Makers assigned to the
class; (c) other BOX Participants; (d)
Public Customer Orders (including
CPOs); and (e) unrelated orders (orders
in standard increments entered during
PIP); (7) For the first Wednesday of each
month: (a) The total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
E:\FR\FM\23JYN1.SGM
23JYN1
43224
Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Notices
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc.; and (8) For the third Wednesday of
each month: (a) the total number of PIP
auctions on that date; (b) the number of
PIP auctions where the order submitted
to the PIP was fewer than 50 contracts;
(c) the number of PIP auctions where
the order submitted to the PIP was 50
contracts or greater; (d) the number of
PIP auctions (for orders of fewer than 50
contracts) with 0 participants (excluding
the initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc., and (e) the number of PIP auctions
(for orders of 50 contracts or greater)
with 0 participants (excluding the
initiating participant), 1 participant
(excluding the initiating participant), 2
participants (excluding the initiating
participant), 3 participants (excluding
the initiating participant), 4 participants
(excluding the initiating participant),
etc.
2. Basis
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 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. The Exchange believes
that the data demonstrates that there is
sufficient investor interest and demand
to extend the PIP Pilot Program for an
additional twelve (12) months. The
Exchange represents that the Pilot
Program is designed to provide
investors with real and significant price
improvement regardless of the size of
the order.
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.
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Mar<15>2010
15:15 Jul 22, 2010
Jkt 220001
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
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) by its terms,
become operative prior to 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, the proposed rule change has
become effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act 10 and Rule 19b–
4(f)(6)(iii) thereunder.11
The Exchange has requested that the
Commission waive the 30-day operative
delay period. The Commission believes
that waiver of the 30-day operative
delay period is consistent with the
protection of investors and the public
interest because such waiver will allow
the PIP Pilot program to continue
without interruption. Accordingly, the
Commission designates the proposed
rule change operative upon filing with
the Commission.12
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.
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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 met this requirement.
12 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).
PO 00000
8 15
9 17
Frm 00088
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–2010–046 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–2010–046. 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–
2010–046 and should be submitted on
or before August 13, 2010.
E:\FR\FM\23JYN1.SGM
23JYN1
Federal Register / Vol. 75, No. 141 / Friday, July 23, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–18034 Filed 7–22–10; 8:45 am]
BILLING CODE 8010–01–P
project sponsored by Otay-Tijuana
Venture, L.L.C. An environmental
impact statement will not be prepared.
DEPARTMENT OF STATE
[Public Notice 7091]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Holocaust—Uniforms, Canisters, and
Shoes’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘The
Holocaust—Uniforms, Canisters, and
Shoes,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to a loan
agreement with the foreign owner or
custodian. I also determine that the
exhibition or display of the exhibit
objects as part of the permanent exhibit
at the U.S. Holocaust Memorial
Museum, Washington, DC, from on or
about September 2010 until on or about
September 2015, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including a list of
the exhibit objects, contact Carol B.
Epstein, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: 202/632–6473). The address
is U.S. Department of State, SA–5, L/PD,
Fifth Floor, Washington, DC 20522–
0505.
SUMMARY:
DEPARTMENT OF STATE
[Public Notice 7090]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Man,
Myth, and Sensual Pleasures: Jan
Gossart’s Renaissance’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000,
I hereby determine that the objects to be
included in the exhibition ‘‘Man, Myth,
and Sensual Pleasures: Jan Gossart’s
Renaissance,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
agreements with the foreign owners or
custodians. I also determine that the
exhibition or display of the exhibit
objects at the Metropolitan Museum of
Art, New York, NY, from on or about
October 5, 2010, until on or about
January 17, 2011, and at possible
additional exhibitions or venues yet to
be determined, is in the national
interest. Public Notice of these
Determinations is ordered to be
published in the Federal Register.
SUMMARY:
For
further information, including a list of
the exhibit objects, contact Carol B.
Epstein, Attorney-Adviser, Office of the
Legal Adviser, U.S. Department of State
(telephone: 202/632–6473). The address
is U.S. Department of State, SA–5, L/PD,
Fifth Floor, Washington, DC 20522–
0505.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
FOR FURTHER INFORMATION CONTACT:
Dated: July 15, 2010.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2010–18117 Filed 7–22–10; 8:45 am]
BILLING CODE 4710–05–P
13 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:15 Jul 22, 2010
Jkt 220001
Dated: July 15, 2010.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2010–18115 Filed 7–22–10; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice 7094]
Finding of No Significant Impact: San
Diego-Tijuana Airport Cross Border
Facility
The Department of State
announces a finding of no significant
impact on the environment for the San
Diego-Tijuana Airport Cross Border
Facility international pedestrian bridge
SUMMARY:
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
43225
FOR FURTHER INFORMATION CONTACT:
Stewart Tuttle, U.S.-Mexico Border
Affairs Coordinator, via e-mail at WHA–
BorderAffairs@state.gov; by phone at
202–647–6356; or by mail at Office of
Mexican Affairs—Room 3909,
Department of State, 2201 C St. NW.,
Washington, DC 20520. Information
about Presidential permits is available
on the Internet at https://www.state.gov/
p/wha/rt/permit/.
The
following is the text of the Finding of
No Significant Impact:
SUPPLEMENTARY INFORMATION:
Introduction
Under Executive Order 11423, as
amended, the Secretary of State is
authorized to issue Presidential permits
for the construction, connection,
operation, and maintenance of facilities,
including international bridges, at the
borders of the United States if she finds
them to be in the national interest. In
2009, Otay-Tijuana Venture, LLC
(sponsor) applied for a Presidential
permit to construct, operate, and
maintain the Cross Border Facility (CBF)
project, an international pedestrian
bridge across the United States-Mexico
border linking a passenger facility in the
Otay Mesa section of San Diego,
California, with a commercial passenger
airport terminal in Tijuana, Baja
California, Mexico. The Department has
determined that construction of the
proposed bridge requires a Presidential
permit under Executive Order 11423, as
amended, because the proposed bridge
would pierce the United States-Mexico
border.
The sponsor submitted in support of
its application a draft environmental
assessment (EA) that Helix
Environmental Planning, Inc. prepared
under the guidance and supervision of
the U.S. Department of State
(Department), consistent with the
National Environment Policy Act
(NEPA). The Department circulated the
application and draft EA to the relevant
federal, state, and local agencies for
their review and received comments
from some of those agencies. The
sponsor responded to all the comments
that agencies submitted by expanding
and revising the draft EA. The
Department also provided public notice
of the draft EA in the Federal Register,
74 FR 68906 (December 29, 2009), and
invited public comment for 45 days. In
response to that public notice, the
Department received only one
anonymous, non-substantive comment.
E:\FR\FM\23JYN1.SGM
23JYN1
]]>Agencies
[Federal Register Volume 75, Number 141 (Friday, July 23, 2010)]
[Notices]
[Pages 43223-43225]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18034]
[[Page 43223]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62512; File No. SR-BX-2010-046]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend a
Pilot Program That Allows for No Minimum Size Order Requirement for the
Price Improvement Period Process Until July 18, 2011
July 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 July 9, 2010 NASDAQ OMX BX, Inc. (``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
(a) The Exchange proposes to amend the Supplementary Material to
Chapter V, Section 18 (The Price Improvement Period ``PIP'') of the
Rules of the Boston Options Exchange Group, LLC (``BOX'') to extend a
pilot program that permits BOX to have no minimum size requirement for
orders entered into the PIP and under certain circumstances permits the
premature termination of the PIP process (``PIP Pilot Program''). 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
The purpose of the proposed rule change is to extend the PIP Pilot
Program under the BOX Rules for twelve (12) additional months. The PIP
Pilot Program allows BOX to have no minimum size requirement for orders
entered into the PIP process and under certain circumstances permits
the premature termination of the PIP process.\5\ The proposed rule
change retains the text of Supplementary Material .01 to Section 18 of
Chapter V of the BOX Rules and seeks to extend the operation of the PIP
Pilot Program until July 18, 2011.
---------------------------------------------------------------------------
\5\ The Pilot Program is currently set to expire on July 17,
2010. See Securities Exchange Act Release No. 60337 (July 17, 2009),
74 FR 36805 (July 24, 2009) (SR-BX-2009-38). See also Securities and
Exchange Act Release Nos. 58942 (November 13, 2008), 73 FR 70394
(November 20, 2008) (SR-BSE-2008-49); 58195 (July 18, 2008), 73 FR
43801 (July 28, 2008) (SR-BSE-2008-39); 55999 (July 2, 2007), 72 FR
37549 (July 10, 2007) (SR-BSE-2007-27); 54066 (June 29, 2006), 71 FR
38434 (July 6, 2006) (SR-BSE-2006-24); 52149 (July 28, 2005), 70 FR
44704 (August 3, 2005) (SR-BSE-2005-22); 49068 (January 13, 2004),
69 FR 2775 (January 20, 2004) (SR-BSE-2002-15) (``Original PIP Pilot
Program Approval Order''); and 51821 (June 10, 2005), 70 FR 35143
(June 16, 2005) (SR-BSE-2004-51) (Order approving, among other
things, under certain circumstances the premature termination of a
PIP process).
---------------------------------------------------------------------------
The Exchange notes that the PIP Pilot Program provides small
customer orders with benefits not available under the rules of some
other exchanges. One of the important factors of the PIP Pilot Program
is that it guarantees Participants the right to trade with their
customer orders that are less than 50 contracts. In particular, any
order entered into the PIP is guaranteed an execution at the end of the
auction at a price at least equal to the national best bid or offer.
In further support of this proposed rule change, and as required by
the Original PIP Pilot Program Approval Order, the Exchange represents
that BOX has been submitting to the Exchange and to the Commission a
PIP Pilot Program Report, offering detailed data from, and analysis of,
the PIP Pilot Program. Although BOX is submitting the reports, the
Exchange notes that it is also responsible for the timeliness and the
accuracy of the information.
To aid the Commission in its evaluation of the PIP Pilot Program,
BOX has represented to the Exchange that BOX will provide the following
additional information each month: (1) The number of orders of 50
contracts or greater entered into the PIP auction; (2) The percentage
of all orders of 50 contracts or greater sent to BOX that are entered
into BOX's PIP auction; (3) The spread in the option, at the time an
order of 50 contracts or greater is submitted to the PIP auction; (4)
Of PIP trades for orders of fewer than 50 contracts, the percentage
done at the National Best Bid or Offer (``NBBO'') plus $.01, plus $.02,
plus $.03, etc.; (5) Of PIP trades for orders of 50 contracts or
greater, the percentage done at the NBBO plus $.01, plus $.02, plus
$.03, etc.; (6) The number of orders submitted by Order Flow Providers
(``OFPs'') when the spread was $.05, $.10, $.15, etc. For each spread,
BOX will specify the percentage of contracts in orders of fewer than 50
contracts submitted to BOX's PIP that were traded by: (a) The OFP that
submitted the order to the PIP; (b) BOX Market Makers assigned to the
class; (c) other BOX Participants; (d) Public Customer Orders
(including Customer PIP Orders (``CPOs'')); and (e) unrelated orders
(orders in standard increments entered during the PIP). For each
spread, BOX will also specify the percentage of contracts in orders of
50 contracts or greater submitted to BOX's PIP that were traded by: (a)
The OFP that submitted the order to the PIP; (b) BOX Market Makers
assigned to the class; (c) other BOX Participants; (d) Public Customer
Orders (including CPOs); and (e) unrelated orders (orders in standard
increments entered during PIP); (7) For the first Wednesday of each
month: (a) The total number of PIP auctions on that date; (b) the
number of PIP auctions where the order submitted to the PIP was fewer
than 50 contracts; (c) the number of PIP auctions where the order
submitted to the PIP was 50 contracts or greater; (d) the number of PIP
auctions (for orders of fewer than 50 contracts) with 0 participants
(excluding the initiating participant), 1 participant (excluding the
initiating participant), 2 participants (excluding the initiating
participant), 3 participants (excluding the initiating participant), 4
participants (excluding the initiating participant), etc., and (e) the
number of PIP auctions (for orders of 50 contracts or greater) with 0
participants (excluding the initiating participant), 1 participant
(excluding the initiating participant), 2
[[Page 43224]]
participants (excluding the initiating participant), 3 participants
(excluding the initiating participant), 4 participants (excluding the
initiating participant), etc.; and (8) For the third Wednesday of each
month: (a) the total number of PIP auctions on that date; (b) the
number of PIP auctions where the order submitted to the PIP was fewer
than 50 contracts; (c) the number of PIP auctions where the order
submitted to the PIP was 50 contracts or greater; (d) the number of PIP
auctions (for orders of fewer than 50 contracts) with 0 participants
(excluding the initiating participant), 1 participant (excluding the
initiating participant), 2 participants (excluding the initiating
participant), 3 participants (excluding the initiating participant), 4
participants (excluding the initiating participant), etc., and (e) the
number of PIP auctions (for orders of 50 contracts or greater) with 0
participants (excluding the initiating participant), 1 participant
(excluding the initiating participant), 2 participants (excluding the
initiating participant), 3 participants (excluding the initiating
participant), 4 participants (excluding the initiating participant),
etc.
2. Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ 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.
The Exchange believes that the data demonstrates that there is
sufficient investor interest and demand to extend the PIP Pilot Program
for an additional twelve (12) months. The Exchange represents that the
Pilot Program is designed to provide investors with real and
significant price improvement regardless of the size of the order.
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\6\ 15 U.S.C. 78f(b).
\7\ 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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the 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) by its terms, become
operative prior to 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, the proposed rule
change has become effective upon filing with the Commission pursuant to
Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)(iii)
thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's 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 met this requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay period. The Commission believes that waiver of the 30-
day operative delay period is consistent with the protection of
investors and the public interest because such waiver will allow the
PIP Pilot program to continue without interruption. Accordingly, the
Commission designates the proposed rule change operative upon filing
with the Commission.\12\
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\12\ 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 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-BX-2010-046 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-2010-046. 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-2010-046 and should be
submitted on or before August 13, 2010.
[[Page 43225]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
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\13\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2010-18034 Filed 7-22-10; 8:45 am]
BILLING CODE 8010-01-P
