Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Order Cancellation Fee, 48404-48405 [2010-19651]
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48404
Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NSX–2010–10 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
and C below, of the most significant
aspects of such statements.
[Release No. 34–62642; File No. SR–CHX–
2010–19]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; The
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Its Order Cancellation Fee
August 4, 2010.
All submissions should refer to File
Number SR–NSX–2010–10. 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 the filing will
also be available for inspection and
copying at the principal office of the
self-regulatory organization. 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–NSX–2010–10 and should
be submitted on or before August 31,
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 30,
2010, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. CHX has filed the
proposal pursuant to Section 19(b)(3)(A)
of the Act 3 and Rule 19b–4(f)(2)
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 change
from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Florence E. Harmon,
Deputy Secretary.
In its filing with the Commission, the
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX has prepared
summaries, set forth in sections A, B
sroberts on DSKB9S0YB1PROD with NOTICES
[FR Doc. 2010–19652 Filed 8–9–10; 8:45 am]
BILLING CODE 8010–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The CHX proposes to amend its
Schedule of Participant Fees and
Assessments (the ‘‘Fee Schedule’’),
effective August 1, 2010, to amend its
order cancellation fee for Participants
entering and subsequently cancelling
orders under certain circumstances. The
text of this proposed rule change is
available on the Exchange’s Web site at
https://www.chx.com/rules/
proposed_rules.htm and in the
Commission’s Public Reference Room,
100 F Street, NE., Washington, DC
20549.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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)(2).
2 17
14 17
CFR 200.30–3(a)(12).
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16:26 Aug 09, 2010
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1. Purpose
Through this proposal, the Exchange
is seeking to amend its Fee Schedule to
exempt from its existing Order
Cancellation Fee all orders, transactions
and cancellation activity in Exchange
Traded Funds (‘‘ETFs’’), Exchange
Traded Notes (‘‘ETNs’’) or Exchange
Traded Vehicles (‘‘ETVs’’), collectively
referred to as Exchange Traded Products
(‘‘ETPs’’). The Order Cancellation Fee
would continue in its current form and
effect with respect to all other securities.
Beginning in January 2010, the
Exchange’s published Fee Schedule
imposed a charge for order cancellations
submitted by Participants whose orders
rarely are at or near the National Best
Bid or Offering (‘‘NBBO’’).5 The
application of the order cancellation fee
depends on a calculation (done on a
Participant-by-Participant basis)
involving the number of wide orders
(defined as display-eligible orders in the
Matching System which are 2 or more
cents away from the NBBO), quotable
orders (all other display-eligible orders),
the number of trades executed and
number of cancellations submitted by a
Participant in a month.6 The purpose of
the order cancellation fee was to incent
Participants to submit orders which are
close to the NBBO (and are therefore
more likely to be executed) or
compensate the Exchange for the
systems and operational costs and
burdens associated with handling and
recording orders which rarely execute.
Since the imposition of the order
cancellation fee, however, the Exchange
has observed that the number of
unexecuted and displayed orders has
actually increased for certain
Participants. In order to avoid
application of the cancellation fee,
certain Participants are submitting
Quotable orders (i.e., those within 2
cents of the NBBO) to the CHX’s
Matching System, but for an extremely
short duration (e.g., 20 milliseconds).
Due to the short duration of the order,
the amount of trade activity generated
by such orders is negligible. This
5 See Securities Exchange Act Release No. 61392
(Jan. 21, 2010), 75 FR 4436 (Jan. 27, 2010) (SR–
CHX–2010–02).
6 The activity also must have occurred in our
Regular Trading Session and be in securities priced
$1 per share or more. Cancellations arising from
Immediate or Cancel or Fill or Kill order types are
excluded from the calculation. Executions of cross
orders are also excluded.
E:\FR\FM\10AUN1.SGM
10AUN1
Federal Register / Vol. 75, No. 153 / Tuesday, August 10, 2010 / Notices
quotation activity also tends to
exacerbate the operational costs which
the Exchange was seeking to avoid in
creating the order cancellation fee.
In order to better target the wide
quotations which originally were
causing the problems which led to the
creation of the order cancellation fee,
we are proposing to exempt ETP activity
from the cancellation fee. The Exchange
has observed that those firms entering
the limited durational orders described
above conduct much of their business
on our trading facilities in ETP
securities. By exempting ETP securities
from the order cancellation fee, we
would remove much of their incentive
to submit quotable orders with a very
limited lifespan. The fee would
continue to apply to activity in all other
securities where it appears to have the
intended impact. The Exchange
considered other alternatives, such as
imposing a minimum duration on
orders to qualify as ‘‘quotable’’ for
purposes of the fee computation. The
Exchange believes, however, that such a
requirement would introduce an
excessive amount of complexity to the
determination of whether the order
cancellation fee applies and could have
the effect of discouraging Participants
from sending any orders to the
Exchange for display and execution.
The proposed changes to the
Cancellation Fee would go into effect on
August 1, 2010.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 7 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 8 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among its members. Among other
things, the Exchange believes that the
exclusion of ETP securities from the
existing order cancellation fee should
help the Exchange to better address the
operational costs and burdens
associated with the processing and
storage of orders well outside the NBBO.
sroberts on DSKB9S0YB1PROD with NOTICES
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments Regarding 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 foregoing rule change has become
effective pursuant to Section
19(B)(3)(A)(ii) of the Act 9 and
subparagraph (f)(2) of Rule 19b–4
thereunder 10 because it establishes or
changes a due, fee, or other charge
applicable only to a member imposed by
the self-regulatory organization.
Accordingly, the proposal is effective
upon Commission receipt of the filing.
At any time within 60 days of the filing
of the proposed rule change, the
Commission summarily may
temporarily suspend 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–CHX–2010–19 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–CHX–2010–19. 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
publicly available. All submissions
should refer to File Number SR–CHX–
2010–19 and should be submitted on or
before August 31, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–19651 Filed 8–9–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62626; File No. SR–
NYSEAmex–2010–73]
Self-Regulatory Organizations; NYSE
Amex LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Adding 75 Options
Classes to the Penny Pilot Program
August 2, 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 July 20,
2010, NYSE Amex LLC (‘‘NYSE Amex’’
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.
11 17
7 15
U.S.C. 78f.
8 15 U.S.C. 78f(b)(4)
VerDate Mar<15>2010
16:26 Aug 09, 2010
9 15
U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
Jkt 220001
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
48405
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10AUN1.SGM
10AUN1
Agencies
[Federal Register Volume 75, Number 153 (Tuesday, August 10, 2010)]
[Notices]
[Pages 48404-48405]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19651]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62642; File No. SR-CHX-2010-19]
Self-Regulatory Organizations; The Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Order Cancellation Fee
August 4, 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 30, 2010, the Chicago Stock Exchange, Inc. (``CHX'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. CHX has filed
the proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule
19b-4(f)(2) 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 change 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)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The CHX proposes to amend its Schedule of Participant Fees and
Assessments (the ``Fee Schedule''), effective August 1, 2010, to amend
its order cancellation fee for Participants entering and subsequently
cancelling orders under certain circumstances. The text of this
proposed rule change is available on the Exchange's Web site at https://www.chx.com/rules/proposed_rules.htm and in the Commission's Public
Reference Room, 100 F Street, NE., Washington, DC 20549.
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 CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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
Through this proposal, the Exchange is seeking to amend its Fee
Schedule to exempt from its existing Order Cancellation Fee all orders,
transactions and cancellation activity in Exchange Traded Funds
(``ETFs''), Exchange Traded Notes (``ETNs'') or Exchange Traded
Vehicles (``ETVs''), collectively referred to as Exchange Traded
Products (``ETPs''). The Order Cancellation Fee would continue in its
current form and effect with respect to all other securities.
Beginning in January 2010, the Exchange's published Fee Schedule
imposed a charge for order cancellations submitted by Participants
whose orders rarely are at or near the National Best Bid or Offering
(``NBBO'').\5\ The application of the order cancellation fee depends on
a calculation (done on a Participant-by-Participant basis) involving
the number of wide orders (defined as display-eligible orders in the
Matching System which are 2 or more cents away from the NBBO), quotable
orders (all other display-eligible orders), the number of trades
executed and number of cancellations submitted by a Participant in a
month.\6\ The purpose of the order cancellation fee was to incent
Participants to submit orders which are close to the NBBO (and are
therefore more likely to be executed) or compensate the Exchange for
the systems and operational costs and burdens associated with handling
and recording orders which rarely execute.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 61392 (Jan. 21,
2010), 75 FR 4436 (Jan. 27, 2010) (SR-CHX-2010-02).
\6\ The activity also must have occurred in our Regular Trading
Session and be in securities priced $1 per share or more.
Cancellations arising from Immediate or Cancel or Fill or Kill order
types are excluded from the calculation. Executions of cross orders
are also excluded.
---------------------------------------------------------------------------
Since the imposition of the order cancellation fee, however, the
Exchange has observed that the number of unexecuted and displayed
orders has actually increased for certain Participants. In order to
avoid application of the cancellation fee, certain Participants are
submitting Quotable orders (i.e., those within 2 cents of the NBBO) to
the CHX's Matching System, but for an extremely short duration (e.g.,
20 milliseconds). Due to the short duration of the order, the amount of
trade activity generated by such orders is negligible. This
[[Page 48405]]
quotation activity also tends to exacerbate the operational costs which
the Exchange was seeking to avoid in creating the order cancellation
fee.
In order to better target the wide quotations which originally were
causing the problems which led to the creation of the order
cancellation fee, we are proposing to exempt ETP activity from the
cancellation fee. The Exchange has observed that those firms entering
the limited durational orders described above conduct much of their
business on our trading facilities in ETP securities. By exempting ETP
securities from the order cancellation fee, we would remove much of
their incentive to submit quotable orders with a very limited lifespan.
The fee would continue to apply to activity in all other securities
where it appears to have the intended impact. The Exchange considered
other alternatives, such as imposing a minimum duration on orders to
qualify as ``quotable'' for purposes of the fee computation. The
Exchange believes, however, that such a requirement would introduce an
excessive amount of complexity to the determination of whether the
order cancellation fee applies and could have the effect of
discouraging Participants from sending any orders to the Exchange for
display and execution. The proposed changes to the Cancellation Fee
would go into effect on August 1, 2010.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \7\ in general, and furthers the
objectives of Section 6(b)(4) of the Act \8\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among its members. Among other things, the Exchange
believes that the exclusion of ETP securities from the existing order
cancellation fee should help the Exchange to better address the
operational costs and burdens associated with the processing and
storage of orders well outside the NBBO.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4)
---------------------------------------------------------------------------
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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments Regarding 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 foregoing rule change has become effective pursuant to Section
19(B)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
thereunder \10\ because it establishes or changes a due, fee, or other
charge applicable only to a member imposed by the self-regulatory
organization. Accordingly, the proposal is effective upon Commission
receipt of the filing. At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-CHX-2010-19 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-CHX-2010-19. 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 publicly available. All
submissions should refer to File Number SR-CHX-2010-19 and should be
submitted on or before August 31, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19651 Filed 8-9-10; 8:45 am]
BILLING CODE 8010-01-P