Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Order Re-Entry, 43590-43591 [2010-18211]

Download as PDF 43590 Federal Register / Vol. 75, No. 142 / Monday, July 26, 2010 / Notices SECURITIES AND EXCHANGE COMMISSION the most significant aspects of such statements. [Release No. 34–62534; File No. SR–Phlx– 2010–95] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating to Order ReEntry July 20, 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 12, 2010, NASDAQ OMX PHLX, Inc. (‘‘Phlx’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. Phlx has designated the proposed rule change as constituting a rule change under Rule 19b–4(f)(5) under the Act,3 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. jlentini on DSKJ8SOYB1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rules 1017, Openings in Options, and 1082, Firm Quotations, to reflect a system enhancement that automatically re-enters unexecuted contracts when, after trading at the Exchange and/or routing, there are contracts remaining from the initiating order. The text of the proposed rule change is available on the Exchange’s Web site at https://www.nasdaqtrader.com/ micro.aspx?id=PHLXRulefilings, at the principal office of the Exchange, 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 Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(5). VerDate Mar<15>2010 16:04 Jul 23, 2010 Jkt 220001 1. Purpose The purpose of the proposed rule change is to change the manner in which the PHLX XL® automated options trading system 4 handles unexecuted contracts following: (1) The end of the opening process; and (2) the end of the ‘‘quote exhaust’’ and ‘‘market exhaust’’ auctions. This new feature further automates the order handling process, particularly at the opening of trading, for certain member organizations routing order flow to the Exchange. The new feature is optional and is available to any Exchange member upon request. Currently, at the end of the opening process, the PHLX XL system cancels all unexecuted order interest priced through the opening price level, and sends a cancellation notice to the member that originally submitted the order. Similarly, at the end of the quote exhaust and market exhaust auctions, the PHLX XL system cancels unexecuted order volume that initiated such auction(s), and sends a cancellation notice to the member that originally submitted the order. The instant proposal would modify the PHLX XL system and corresponding Exchange rules such that the PHLX XL system will, upon the written instruction of the member that initially submitted the order, re-submit unexecuted contracts following the opening process and following the quote exhaust and market exhaust auctions.5 A re-submitted order will be treated strictly as a new order, thus forgoing any time/price priority it may have had when initially entered by the member that originally submitted the order. Therefore, the time of receipt of the new order will be recorded as of the time it 4 This proposal refers to ‘‘PHLX XL’’ as the Exchange’s automated options trading system. In May 2009 the Exchange enhanced the system and adopted corresponding rules referring to the system as ‘‘Phlx XL II.’’ See Securities Exchange Act Release No. 59995 (May 28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx–2009–32). The Exchange intends to submit a separate technical proposed rule change that would change all references to the system from ‘‘Phlx XL II’’ to ‘‘PHLX XL’’ for branding purposes. 5 The Exchange anticipates that a member’s single written instruction to re-submit unexecuted contracts would apply to all orders in specified options following the receipt of the written instruction by the Exchange. For purposes of this proposal, an e-mail message is sufficient to satisfy the written instruction requirement. The Exchange will publish an Options Trader Alert (‘‘OTA’’) on its Web site describing where and to whom such written instruction should be made. PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 is re-submitted. Cancellation notices under the proposal will be stopped by the system and will not reach the member that originally submitted the order. 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act 6 in general, and furthers the objectives of section 6 (b)(5) of the Act 7 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. Specifically, the Exchange believes that the proposal benefits customers by improving market efficiency through the enhanced automation of the order entry process when a member has instructed the Exchange to automatically re-submit unexecuted contracts following routing to away markets. 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 No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change effects a change in an existing order-entry or trading system of a self-regulatory organization that: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) does not have the effect of limiting the access to or availability of the system. Therefore, the proposal is effective upon filing pursuant to section 19(b)(3)(A) 8 of the Act and subparagraph (f)(5) 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 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(5). 7 15 E:\FR\FM\26JYN1.SGM 26JYN1 Federal Register / Vol. 75, No. 142 / Monday, July 26, 2010 / Notices 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–Phlx-2010–95 on the subject line. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2010–18211 Filed 7–23–10; 8:45 am] necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. In its filing with the Commission, Nasdaq 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. Nasdaq has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62496; File No. SR– NASDAQ–2010–080] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding a Clerical Change to Nasdaq Rules July 14, 2010. jlentini on DSKJ8SOYB1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that on June 30, to Elizabeth M. Murphy, Secretary, 2010, The NASDAQ Stock Market LLC Securities and Exchange Commission, (‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with 100 F Street, NE., Washington, DC the Securities and Exchange 20549–1090. Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described All submissions should refer to File in Items I, II, and III below, which Items Number SR–Phlx-2010–95. This file have been prepared by the Exchange. number should be included on the subject line if e-mail is used. To help the Nasdaq proposes to make a clerical correction to the Nasdaq rulebook under Commission process and review your Rule 19b–4(f)(3) under the Act,3 which comments more efficiently, please use renders the proposal effective upon only one method. The Commission will post all comments on the Commission’s filing with the Commission. The Commission is publishing this notice to Internet Web site (https://www.sec.gov/ solicit comments on the proposed rule rules/sro.shtml). Copies of the change from interested persons. 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–Phlx–2010–95 and should be submitted on or before August 16, 2010. VerDate Mar<15>2010 16:04 Jul 23, 2010 Jkt 220001 43591 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq proposes to make a clerical correction to the Nasdaq rulebook. Specifically, Nasdaq proposes to renumber Nasdaq Rule 7051 to Nasdaq Rule 7052. Nasdaq is renumbering this rule because Nasdaq has filed another proposed rule change that necessitates a renumbering of the existing Rule 7051. Nasdaq is making no changes to Rule 7051, other than to change the rule number to 7052. 2. Statutory Basis Nasdaq proposes to make clerical corrections to the Nasdaq rulebook. Nasdaq proposes to implement the proposed rule change immediately. The text of the proposed rule change is available on Nasdaq’s Web site https://nasdaq.cchwallstreet.com, at Nasdaq’s principal office, and at the Commission’s Public Reference Room. Proposed new language is underlined; proposed deletions are in brackets.4 * * * * * Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,5 in general, and with Section 6(b)(5) of the Act,6 in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, 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 of a free and open market and a national market system, and, in general, to protect investors and the public interest. The proposed rule change makes a minor clerical change to renumber an existing Nasdaq rule. 7052. [7051.] Nasdaq Daily Short Volume and Monthly Short Sale Transaction Files No Change. B. Self-Regulatory Organization’s Statement on Burden on Competition I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change * * * * * CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(3). 4 Changes are marked to the rule text that appears in the electronic manual of Nasdaq found at https://nasdaq.cchwallstreet.com/. PO 00000 10 17 1 15 Frm 00107 Fmt 4703 Sfmt 4703 Nasdaq 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. 5 15 6 15 E:\FR\FM\26JYN1.SGM U.S.C. 78f. U.S.C. 78f(b)(5). 26JYN1

Agencies

[Federal Register Volume 75, Number 142 (Monday, July 26, 2010)]
[Notices]
[Pages 43590-43591]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18211]



[[Page 43590]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62534; File No. SR-Phlx-2010-95]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX, Inc. Relating 
to Order Re-Entry

July 20, 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 12, 2010, NASDAQ OMX PHLX, Inc. (``Phlx'' or the ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. Phlx has designated the 
proposed rule change as constituting a rule change under Rule 19b-
4(f)(5) under the Act,\3\ 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\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Rules 1017, Openings in Options, and 
1082, Firm Quotations, to reflect a system enhancement that 
automatically re-enters unexecuted contracts when, after trading at the 
Exchange and/or routing, there are contracts remaining from the 
initiating order.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings, 
at the principal office of the Exchange, 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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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 change the manner in 
which the PHLX XL[supreg] automated options trading system \4\ handles 
unexecuted contracts following: (1) The end of the opening process; and 
(2) the end of the ``quote exhaust'' and ``market exhaust'' auctions. 
This new feature further automates the order handling process, 
particularly at the opening of trading, for certain member 
organizations routing order flow to the Exchange. The new feature is 
optional and is available to any Exchange member upon request.
---------------------------------------------------------------------------

    \4\ This proposal refers to ``PHLX XL'' as the Exchange's 
automated options trading system. In May 2009 the Exchange enhanced 
the system and adopted corresponding rules referring to the system 
as ``Phlx XL II.'' See Securities Exchange Act Release No. 59995 
(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32). The 
Exchange intends to submit a separate technical proposed rule change 
that would change all references to the system from ``Phlx XL II'' 
to ``PHLX XL'' for branding purposes.
---------------------------------------------------------------------------

    Currently, at the end of the opening process, the PHLX XL system 
cancels all unexecuted order interest priced through the opening price 
level, and sends a cancellation notice to the member that originally 
submitted the order. Similarly, at the end of the quote exhaust and 
market exhaust auctions, the PHLX XL system cancels unexecuted order 
volume that initiated such auction(s), and sends a cancellation notice 
to the member that originally submitted the order.
    The instant proposal would modify the PHLX XL system and 
corresponding Exchange rules such that the PHLX XL system will, upon 
the written instruction of the member that initially submitted the 
order, re-submit unexecuted contracts following the opening process and 
following the quote exhaust and market exhaust auctions.\5\ A re-
submitted order will be treated strictly as a new order, thus forgoing 
any time/price priority it may have had when initially entered by the 
member that originally submitted the order. Therefore, the time of 
receipt of the new order will be recorded as of the time it is re-
submitted. Cancellation notices under the proposal will be stopped by 
the system and will not reach the member that originally submitted the 
order.
---------------------------------------------------------------------------

    \5\ The Exchange anticipates that a member's single written 
instruction to re-submit unexecuted contracts would apply to all 
orders in specified options following the receipt of the written 
instruction by the Exchange. For purposes of this proposal, an e-
mail message is sufficient to satisfy the written instruction 
requirement. The Exchange will publish an Options Trader Alert 
(``OTA'') on its Web site describing where and to whom such written 
instruction should be made.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \6\ in general, and furthers the objectives of section 
6 (b)(5) of the Act \7\ in particular, in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest. Specifically, the Exchange believes that the proposal 
benefits customers by improving market efficiency through the enhanced 
automation of the order entry process when a member has instructed the 
Exchange to automatically re-submit unexecuted contracts following 
routing to away markets.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change effects a change in an existing order-
entry or trading system of a self-regulatory organization that: (i) 
Does not significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) does not have the effect of limiting the access to or 
availability of the system. Therefore, the proposal is effective upon 
filing pursuant to section 19(b)(3)(A) \8\ of the Act and subparagraph 
(f)(5) of Rule 19b-4 thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(5).
---------------------------------------------------------------------------

    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

[[Page 43591]]

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-Phlx-2010-95 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-Phlx-2010-95. 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-Phlx-2010-95 and should be submitted on or before August 
16, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-18211 Filed 7-23-10; 8:45 am]
BILLING CODE 8010-01-P
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