Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by New York Stock Exchange LLC Relating to Execution Algorithm of NYBX Orders, 58456-58460 [2010-23924]
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Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
11A(a)(1) 9 of the Act in that it seeks to
assure fair competition among brokers
and dealers and among exchange
markets. The Exchange believes the
proposed rule change meets these
requirements in that it promotes
transparency and uniformity concerning
pricing obligations across markets for
certain market participants.
2. Statutory Basis
srobinson on DSKHWCL6B1PROD with NOTICES
DMM’s obligation). For times during the
trading day when a Trading Pause is not
in effect under Rule 80C (e.g., before
9:45 a.m. and after 3:35 p.m.), the
Designated Percentage calculation will
assume a trigger percentage of 22%.
Therefore, a DMM must maintain a
quote no further than 20% away from
the NBBO and the quote may rest
without adjustment until it is more than
21.5% from the NBBO. In the absence
of an NBBO, the above calculations will
remain the same, but will use the last
reported sale from the single plan
processor responsible for consolidation
of information for the security pursuant
to Rule 603 of Regulation NMS.5
For securities that are not subject to
Trading Pauses, the Designated
Percentage will assume a trigger
percentage of 32% and apply the same
2% reduction. Thus, DMMs registered
in those securities shall be required to
maintain quotes no more than 30%
away from NBBO. As with securities
subject to Trading Pauses, once a
permissible quote is entered it may rest
without adjustment until such time as it
becomes more than the Defined Limit
away from the NBBO (31.5%),
whereupon the DMM must enter new
interest at a price not more than the
Designated Percentage of 30% away
from the NBBO (or identify to the
Exchange current resting interest that
satisfies the DMM’s obligation). The
Exchange proposes that these
requirements shall apply to NMS stocks
(as defined in Rule 600 under
Regulation NMS) 6 during the trading
day.
Nothing in the proposal shall
preclude a DMM from quoting at price
levels that are closer to the NBBO than
the levels required under the proposal.
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:
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
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 Exchange believes
that the proposed rule change also is
consistent with the principles of Section
5 17
CFR 240.603.
6 17 CFR 240.600.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
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16:12 Sep 23, 2010
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 on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2010–69. 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 inspection and copying 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–NYSE–2010–69 and should
be submitted on or before October 15,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–23971 Filed 9–23–10; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–62955; File No. SR–NYSE–
2010–67]
• 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–NYSE–2010–69 on the
subject line.
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
New York Stock Exchange LLC
Relating to Execution Algorithm of
NYBX Orders
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
September 20, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
9 15
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U.S.C. 78k–1(a)(1).
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Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Exchange Rule 1600 (New York Block
ExchangeSM) (‘‘NYBXSM’’ or the
‘‘Facility’’) to provide for simultaneous
routing, rather than sequential routing
as the Facility currently operates, of
appropriate volume from an NYBX
order to attempt to execute
simultaneously against all available
contra side liquidity within the limit
price of the order that is revealed on the
initial market evaluation, whether that
liquidity (1) Is in the NYSE Display
Book® (‘‘DBK’’), displayed and
undisplayed, (2) is in the Facility, (3)
consists of top-of-book contra side
quotations displayed on other
automated trading centers that must be
routed to in order to avoid potential
trade throughs (in compliance with
Regulation NMS) or (4) consists of topof-book contra side quotations displayed
on other automated trading centers
where no potential trade through is
involved and Regulation NMS does not
require routing. There will no longer be
an initial routing of the full amount of
the order (less any shares routed to
other automated trading centers to
comply with Regulation NMS) to the
DBK in the hope that there will be some
additional volume executed (over and
above the displayed and undisplayed
contra side liquidity in the DBK) against
available contra side interest, if any, in
the Capital Commitment Schedule
(‘‘CCS’’) of the Designated Market Maker
provided for in NYSE Rule 1000(d)(i).
The text of the proposed rule change is
available at the Exchange’s principal
office, the Commission’s Public
Reference Room, and the Exchange’s
Web site at https://www.nyse.com.
srobinson on DSKHWCL6B1PROD with NOTICES
notice is hereby given that, on
September 9, 2010, the New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
1. Purpose
The Exchange proposes to amend
Exchange Rule 1600 (New York Block
ExchangeSM) to provide for
simultaneous routing, rather than
sequential routing as the facility
currently operates, of appropriate
volume from an NYBX order to attempt
to execute simultaneously against all
available contra side liquidity within
the limit price of the order that is
revealed on the initial market
evaluation, whether that liquidity (1) Is
in the DBK, displayed and undisplayed,
(2) is in the Facility, (3) consists of topof-book contra side quotations displayed
on other automated trading centers that
must be routed to in order to avoid
potential trade throughs (in compliance
with Regulation NMS) or (4) consists of
top-of-book contra side quotations
displayed on other automated trading
centers where no potential trade
through is involved and Regulation
NMS does not require routing. The
following is a description of how the
NYBX Facility currently operates,
complete with examples, followed by a
description of the ‘‘Proposed Change in
the Process,’’ also with examples.
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
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
Current Operation of the Facility
As currently provided in NYSE Rule
1600, an order in the NYBX Facility
interacts with contra side liquidity in
the DBK and the Facility itself through
a series of separate transactions that
may involve the order moving
sequentially from one price level to
another (all within the limit price of the
order) and/or back and forth between
the Facility and the DBK. In addition, if
an NYBX order would execute in the
DBK or in the Facility at a price that
may potentially trade through a
protected quotation of another
automated trading center(s), applicable
volume from the order will be routed
immediately to such automated trading
center(s) to assure compliance with
Regulation NMS. Further, when contra
side liquidity is available in the DBK at
prices that are within the limit price of
the NYBX order, the full amount of the
order (less any shares routed to other
automated trading centers to comply
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58457
with Regulation NMS) is sent to the
DBK in the hope that, in addition to
execution with the displayed and
undisplayed contra side liquidity in the
DBK at the particular price, there will be
some additional execution with
available contra side interest, if any, in
the CCS of the Designated Market
Maker.
As the execution of the order
proceeds, the Facility reevaluates the
market at various points to check for
updated market data and adjusts the
routing of the remaining portion of the
order accordingly. Finally, after all
available executions in the DBK and the
Facility have taken place, including the
routing of appropriate volume to other
automated trading centers to prevent
trade throughs of protected quotations,
any remaining portion of the order will
be routed away for execution with all
remaining available top-of-book contra
side quotations within the limit price of
the order displayed by other automated
trading centers even though not
required by Regulation NMS.
The following examples demonstrate
how NYBX orders are currently
processed prior to implementation of
the proposed amendment. In the
examples, ‘‘MTV’’ stands for the
optional, user-defined Minimum
Triggering Volume Quantity of an NYBX
order provided for in NYSE Rule 1600.
NYBX Market Evaluation
NYBX (Sell orders):
5000 shares @ 21.00 (MTV = 100)
5000 shares @ 22.00 (MTV = 100)
DBK (Sell orders):
1000 shares @ 21.00 (hidden)
1000 shares @ 22.00
1000 shares @ 23.00
CHX (Sell orders):
1000 shares @ 21.00
BATS (Sell orders):
1000 shares @ 22.00
Scenario A: NYBX Buy order for 5000
shares at 21.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 5000 shares routed to DBK at 21.00
and 1000 are executed at 21.00.
2. 4000 shares remain and are sent
back to NYBX at 21.00.
3. Verify no market data updates.
4. 4000 shares execute in NYBX at
21.00.
The full amount of the above order is
initially routed to DBK due to the
possibility of interaction with CCS
interest. Note that no orders were routed
to other automated trading centers
because (i) there were no potential trade
throughs that would violate Regulation
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NMS and (ii) DBK and NYBX had
priority for executions at 21.00 and
there were no shares left from the order
to execute at that price on CHX.
Scenario B: NYBX Buy order for 6500
shares at 21.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 6500 shares routed to DBK at 21.00
and 1000 are executed at 21.00.
2. 5500 shares remain and are sent
back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at
21.00.
5. Verify no market data updates.
6. 500 shares routed to CHX at 21.00
and all are executed at 21.00.
Again, the full amount of the order is
initially routed to DBK and no orders
are initially routed to other automated
trading centers because there were no
potential trade throughs that would
violate Regulation NMS. However,
shares are routed to CHX at the end of
the sequence because all interest at
21.00 in both DBK and NYBX is
exhausted and additional shares at that
price are available on CHX even though
Regulation NMS does not require shares
to be routed there.
srobinson on DSKHWCL6B1PROD with NOTICES
Scenario C: NYBX Buy order for 13500
shares at 22.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to CHX at 21.00
(Reg. NMS) and all are executed at
21.00. 12500 shares simultaneously
routed to DBK at 21.00 and 1000 are
executed at 21.00.
2. 11500 shares remain and are sent
back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at
21.00.
5. Verify no market data updates.
6. 6500 shares remain and are routed
to DBK at 22.00 and 1000 are executed
at 22.00.
7. 5500 shares remain and are sent
back to NYBX at 22.00.
8. Verify no market data updates.
9. 5000 shares execute in NYBX at
22.00.
10. Verify no market data updates.
11. 500 shares routed to BATS at
22.00 and all are executed at 22.00.
In Scenario C, 1000 shares are
initially routed to CHX at 21.00 to
eliminate the potential of a trade
through of this protected quotation
(since the size and price limit of the
order mean that contra side liquidity in
the DBK and the Facility at 22.00 will
be executed against) that is prohibited
by Regulation NMS. The full amount of
the remaining portion of the order is
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simultaneously routed to the DBK at
21.00 even though only 1000 shares are
available there at that price, because of
the potential to interact with CCS
interest. Later in the sequence of events,
the full amount of the remaining order
at that point (6500 shares) is routed to
the DBK at 22.00 for the same reason,
even though only 1000 shares are
available there at that price. At the end
of the sequence, the routing of 500
shares to BATS at 22.00 is not for the
purpose of compliance with Regulation
NMS (since no executions at a higher
price will be triggered by the size and
price limit of this order), but is made to
access additional top-of-book contra
side liquidity at another automated
market center because no additional
liquidity at that price is available in
either the DBK or the Facility.
Scenario D: NYBX Buy order for 14500
shares at 23.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to CHX at 21.00
(Reg. NMS) and all are executed at
21.00. 1000 shares routed to BATS at
22.00 (Reg. NMS) and all are executed
at 22.00. 12500 shares simultaneously
routed to DBK at 21.00 and 1000 are
executed at 21.00.
2. 11500 shares remain and are sent
back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at
21.00.
5. Verify no market data updates.
6. 6500 shares remain and are routed
to DBK at 22.00 and 1000 are executed
at 22.00.
7. 5500 shares remain and are sent
back to NYBX at 22.00.
8. Verify no market data updates.
9. 5000 shares execute in NYBX at
22.00.
10. Verify no market data updates.
11. 500 shares routed to DBK at 23.00
and all are executed at 23.00.
Scenario D is very similar to Scenario
C, except that the increase in order size
and the increase in the limit price to
23.00 create a potential trade through at
23.00 in the DBK of the 22.00 protected
quotation at BATS. Consequently, in
addition to the 1000 shares that are
initially routed to CHX at 21.00 to
eliminate the potential for a trade
through of that protected quotation that
is prohibited by Regulation NMS, an
additional 1000 shares are initially
routed to BATS at 22.00 to eliminate the
potential for a trade through of that
protected quotation as well. The
remaining execution sequence is the
same as Scenario C except that the final
500 shares of the order are routed to the
DBK and executed at 23.00 because all
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lower contra side prices in the market
have been executed against.
Proposed Change in the Process
In practice, the fact that the NYBX
order proceeds through a series of steps
that take place sequentially rather than
simultaneously results in the
disappearance or the adjustment of a
substantial portion of the available
contra side liquidity that shows up on
the initial market evaluation, before the
NYBX order is able to execute against
that liquidity. Consequently, the
purpose of the proposed amendment is
to capture a higher percentage of the
available contra side liquidity by
attempting to execute simultaneously
against all such liquidity within the
limit price of the order that is revealed
on the initial market evaluation,
whether that liquidity (1) Is in the DBK
(displayed and undisplayed), (2) is in
the NYBX or (3) consists of top-of-book
contra side quotations displayed on
other automated trading centers. The
initial portion of the order routed to the
DBK will no longer be oversized in the
hope of interacting with CCS interest,
but will be sized based on the total
amount of displayed and undisplayed
contra side liquidity in the DBK that is
available for execution within the limit
price of the order. The same principle
(no oversizing) will continue to be
applicable to portions of the order that
attempt to execute against available
contra side interest in the Facility and
against such interest that is displayed
on other automated trading centers.
As is the case with respect to the
current operation of the Facility and in
compliance with Regulation NMS,
applicable volume will be routed
immediately to execute against all
protected quotations of other automated
trading centers that may potentially be
traded through by the NYBX order.
However, the routing of applicable
volume to other automated trading
centers for execution against available
contra side top-of-book quotations
displayed by such markets where no
potential trade through is involved will
no longer be delayed until the order has
executed with all available contra side
liquidity in the DBK and the Facility.
Instead, such volume will be routed out
at the same time that other portions of
the order attempt to execute against
available contra side liquidity in the
Facility or are routed for execution to
the DBK or to other automated trading
centers in compliance with Regulation
NMS.
In a situation in which the size of the
NYBX order is less than the total
available contra side liquidity that is
potentially executable within the limit
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Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
price in the Facility and the DBK and at
the top-of-book at other automated
trading centers, the ‘‘tie breaker’’ rules
for routing decision purposes will
provide that (i) an execution in the DBK
will have priority over an execution at
the same price in the Facility or on
another automated trading center, and
(ii) an execution in the Facility will
have priority over an execution at the
same price on another automated
trading center.
The following examples demonstrate
how NYBX orders will be processed
under the proposed amendment.
Assume the same NYBX initial market
evaluation as above and the same four
scenarios.
srobinson on DSKHWCL6B1PROD with NOTICES
Scenario A: NYBX Buy order for 5000
shares at 21.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to DBK at 21.00
and all are executed at 21.00 4000
shares simultaneously executed in
NYBX at 21.00
In Scenario A, no shares are routed to
other automated trading centers because
(i) there are no potential trade throughs
for this price limit and order volume,
and (ii) executions at 21.00 in DBK and
NYBX at 21.00 have priority over
executions at CHX at the same price.
Even though the entire 5000 shares
could execute within NYBX at 21.00
with no routing necessary, 1000 shares
are routed to the DBK to execute against
contra side liquidity there at the same
price because executions in DBK have
priority over executions in NYBX.
Unlike the current process, none of the
routings to the DBK will be oversized
(i.e., the number of shares routed will
not exceed the displayed and
undisplayed interest in the DBK at a
given price). Therefore, only 1000
shares will be initially routed to the
DBK instead of the full order size of
5000 shares. Note that everything in
Scenario A takes place simultaneously
under the proposed amendment,
compared to four sequential steps as the
Facility currently operates.
Scenario B: NYBX Buy order for 6500
shares at 21.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to DBK at 21.00
and all are executed at 21.00. 5000
shares simultaneously execute in NYBX
at 21.00. 500 shares simultaneously
routed to CHX at 21.00 and all are
executed at 21.00.
Again, only the amount of the
displayed and undisplayed interest in
the DBK is routed to the DBK, and no
orders are routed to other automated
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trading centers for Regulation NMS
compliance purposes (since there are no
potential trade throughs that would
violate Regulation NMS). However,
shares are routed to CHX because all
interest at 21.00 in both DBK and NYBX
will be executed against by the order,
and additional shares at that price are
available on CHX even though
Regulation NMS does not require shares
to be routed there for execution. Note
that everything in Scenario B takes
place simultaneously under the
proposed amendment, compared to six
sequential steps as the Facility currently
operates.
Scenario C: NYBX Buy order for 13500
shares at 22.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to CHX at 21.00
(Reg. NMS) and all are executed at
21.00. 1000 shares simultaneously
routed to DBK at 21.00 and all are
executed at 21.00. 5000 shares
simultaneously execute in NYBX at
21.00. 1000 shares simultaneously
routed to DBK at 22.00 and all are
executed at 22.00. 5000 shares
simultaneously execute in NYBX at
22.00. 500 shares simultaneously routed
to BATS at 22.00 and all are executed
at 22.00.
In Scenario C, 1000 shares are routed
to CHX at 21.00 to eliminate the
potential of a trade through at 22.00 of
this protected quotation (since the size
and price limit of the order mean that
contra side liquidity in the DBK and the
Facility at 22.00 will be executed
against) that is prohibited by Regulation
NMS. The simultaneous routing of 500
shares to BATS at 22.00 is not for the
purpose of compliance with Regulation
NMS (since no executions at a higher
price will be triggered by the size and
price limit of this order), but is made to
access additional top-of-book contra
side liquidity at another automated
market center because no additional
liquidity at that price is available in
either the DBK or the Facility. As before,
only the amount of the displayed and
undisplayed interest in the DBK is
routed to the DBK. Note that everything
in Scenario C takes place
simultaneously under the proposed
amendment, compared to eleven
sequential steps as the Facility currently
operates.
Scenario D: NYBX Buy order for 14500
shares at 23.00 (MTV = 100 shares)
Results (each number below
represents a separate step):
1. 1000 shares routed to CHX at 21.00
(Reg. NMS) and all are executed at
21.00. 1000 shares simultaneously
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58459
routed to BATS at 22.00 (Reg. NMS) and
all are executed at 22.00. 1000 shares
simultaneously routed to DBK at 21.00
and all are executed at 21.00. 5000
shares simultaneously execute in NYBX
at 21.00. 1000 shares simultaneously
routed to DBK at 22.00 and all are
executed at 22.00. 5000 shares
simultaneously execute in NYBX at
22.00. 500 shares simultaneously routed
to DBK at 23.00 and all are executed at
23.00.
Scenario D is very similar to Scenario
C, except that the increase in order size
and the increase in the limit price to
23.00 mean that a full 1000 shares also
need to be routed to BATS at 22.00 to
eliminate the potential for a trade
through in the DBK at 23.00 of that
protected quotation in violation of
Regulation NMS. Consequently, in
addition to the 1000 shares that are
initially routed to CHX at 21.00 to
eliminate the potential for a trade
through of that protected quotation that
is prohibited by Regulation NMS, an
additional 1000 shares are
simultaneously routed to BATS at 22.00
to eliminate the potential for a trade
through of that protected quotation as
well. Scenario D also differs from
Scenario C in that the final routing to
DBK is against a portion of the available
contra side liquidity there at 23.00,
since all lower contra side prices in the
market have been executed against. Note
that everything in Scenario D takes
place simultaneously under the
proposed amendment, compared to
eleven sequential steps as the Facility
currently operates.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 3 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
objectives of Section 6(b)(5) 4 in
particular in that it 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 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. More specifically, the
Exchange believes that the proposed
rule change will improve the quality of
the market and the outcomes for
investors by capturing a higher
percentage of the available contra side
liquidity through attempting to execute
3 15
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U.S.C. 78f(b)(5).
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Federal Register / Vol. 75, No. 185 / Friday, September 24, 2010 / Notices
simultaneously against all such
liquidity within the limit price of the
order that is revealed on the initial
market evaluation, thereby increasing
the probability that a large order placed
in the Facility will achieve a complete
and timely fill. The proposed rule
change will thereby contribute to
perfecting the mechanism of a free and
open market and a national market
system and is also consistent with the
protection of investors and the public
interest.
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 on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
srobinson on DSKHWCL6B1PROD with 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–NYSE–2010–67 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
16:12 Sep 23, 2010
Jkt 220001
(‘‘Act’’) 1 and Rule 19b-4 thereunder,2
notice is hereby given that on
September 17, 2010, BATS Exchange,
Inc. (‘‘BATS’’ or the ‘‘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 Exchange. 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.5
Florence E. Harmon,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2010–23924 Filed 9–23–10; 8:45 am]
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:
VerDate Mar<15>2010
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2010–67. 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–NYSE–
2010–67 and should be submitted on or
before October 15, 2010.
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–62945; File No. SR–BATS–
2010–025]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing of a
Proposed Rule Change To Amend
BATS Rule 11.8, Entitled ‘‘Obligations
of Market Makers’’
September 20, 2010.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
BATS Rule 11.8, which relates to the
obligations of market makers registered
with BATS (‘‘Market Makers’’).
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, 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 parts of such
statements.
1. Purpose
The Exchange proposes to adopt rules
to enhance minimum quotation
requirements for market makers. Under
the proposal, the Exchange will require
market makers for each stock in which
they are registered to continuously
maintain a two-sided quotation within a
designated percentage of the National
Best Bid (‘‘NBB’’) and National Best
Offer (‘‘NBO’’) (or, if there is no NBB or
NBO, the last reported sale). These
enhanced market maker quotation
requirements are intended to eliminate
trade executions against market maker
placeholder quotations traditionally
priced far away from the inside market,
commonly known as ‘‘stub quotes.’’
1 15
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]]>Agencies
[Federal Register Volume 75, Number 185 (Friday, September 24, 2010)]
[Notices]
[Pages 58456-58460]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-23924]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62955; File No. SR-NYSE-2010-67]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by New York Stock Exchange LLC Relating to Execution Algorithm
of NYBX Orders
September 20, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\
[[Page 58457]]
notice is hereby given that, on September 9, 2010, the New York Stock
Exchange LLC (``NYSE'' or the ``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. 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 amend Exchange Rule 1600 (New York Block
Exchange\SM\) (``NYBX\SM\'' or the ``Facility'') to provide for
simultaneous routing, rather than sequential routing as the Facility
currently operates, of appropriate volume from an NYBX order to attempt
to execute simultaneously against all available contra side liquidity
within the limit price of the order that is revealed on the initial
market evaluation, whether that liquidity (1) Is in the NYSE Display
Book[supreg] (``DBK''), displayed and undisplayed, (2) is in the
Facility, (3) consists of top-of-book contra side quotations displayed
on other automated trading centers that must be routed to in order to
avoid potential trade throughs (in compliance with Regulation NMS) or
(4) consists of top-of-book contra side quotations displayed on other
automated trading centers where no potential trade through is involved
and Regulation NMS does not require routing. There will no longer be an
initial routing of the full amount of the order (less any shares routed
to other automated trading centers to comply with Regulation NMS) to
the DBK in the hope that there will be some additional volume executed
(over and above the displayed and undisplayed contra side liquidity in
the DBK) against available contra side interest, if any, in the Capital
Commitment Schedule (``CCS'') of the Designated Market Maker provided
for in NYSE Rule 1000(d)(i). The text of the proposed rule change is
available at the Exchange's principal office, the Commission's Public
Reference Room, and the Exchange's Web site at https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 1600 (New York Block
Exchange\SM\) to provide for simultaneous routing, rather than
sequential routing as the facility currently operates, of appropriate
volume from an NYBX order to attempt to execute simultaneously against
all available contra side liquidity within the limit price of the order
that is revealed on the initial market evaluation, whether that
liquidity (1) Is in the DBK, displayed and undisplayed, (2) is in the
Facility, (3) consists of top-of-book contra side quotations displayed
on other automated trading centers that must be routed to in order to
avoid potential trade throughs (in compliance with Regulation NMS) or
(4) consists of top-of-book contra side quotations displayed on other
automated trading centers where no potential trade through is involved
and Regulation NMS does not require routing. The following is a
description of how the NYBX Facility currently operates, complete with
examples, followed by a description of the ``Proposed Change in the
Process,'' also with examples.
Current Operation of the Facility
As currently provided in NYSE Rule 1600, an order in the NYBX
Facility interacts with contra side liquidity in the DBK and the
Facility itself through a series of separate transactions that may
involve the order moving sequentially from one price level to another
(all within the limit price of the order) and/or back and forth between
the Facility and the DBK. In addition, if an NYBX order would execute
in the DBK or in the Facility at a price that may potentially trade
through a protected quotation of another automated trading center(s),
applicable volume from the order will be routed immediately to such
automated trading center(s) to assure compliance with Regulation NMS.
Further, when contra side liquidity is available in the DBK at prices
that are within the limit price of the NYBX order, the full amount of
the order (less any shares routed to other automated trading centers to
comply with Regulation NMS) is sent to the DBK in the hope that, in
addition to execution with the displayed and undisplayed contra side
liquidity in the DBK at the particular price, there will be some
additional execution with available contra side interest, if any, in
the CCS of the Designated Market Maker.
As the execution of the order proceeds, the Facility reevaluates
the market at various points to check for updated market data and
adjusts the routing of the remaining portion of the order accordingly.
Finally, after all available executions in the DBK and the Facility
have taken place, including the routing of appropriate volume to other
automated trading centers to prevent trade throughs of protected
quotations, any remaining portion of the order will be routed away for
execution with all remaining available top-of-book contra side
quotations within the limit price of the order displayed by other
automated trading centers even though not required by Regulation NMS.
The following examples demonstrate how NYBX orders are currently
processed prior to implementation of the proposed amendment. In the
examples, ``MTV'' stands for the optional, user-defined Minimum
Triggering Volume Quantity of an NYBX order provided for in NYSE Rule
1600.
NYBX Market Evaluation
NYBX (Sell orders):
5000 shares @ 21.00 (MTV = 100)
5000 shares @ 22.00 (MTV = 100)
DBK (Sell orders):
1000 shares @ 21.00 (hidden)
1000 shares @ 22.00
1000 shares @ 23.00
CHX (Sell orders):
1000 shares @ 21.00
BATS (Sell orders):
1000 shares @ 22.00
Scenario A: NYBX Buy order for 5000 shares at 21.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 5000 shares routed to DBK at 21.00 and 1000 are executed at
21.00.
2. 4000 shares remain and are sent back to NYBX at 21.00.
3. Verify no market data updates.
4. 4000 shares execute in NYBX at 21.00.
The full amount of the above order is initially routed to DBK due
to the possibility of interaction with CCS interest. Note that no
orders were routed to other automated trading centers because (i) there
were no potential trade throughs that would violate Regulation
[[Page 58458]]
NMS and (ii) DBK and NYBX had priority for executions at 21.00 and
there were no shares left from the order to execute at that price on
CHX.
Scenario B: NYBX Buy order for 6500 shares at 21.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 6500 shares routed to DBK at 21.00 and 1000 are executed at
21.00.
2. 5500 shares remain and are sent back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at 21.00.
5. Verify no market data updates.
6. 500 shares routed to CHX at 21.00 and all are executed at 21.00.
Again, the full amount of the order is initially routed to DBK and
no orders are initially routed to other automated trading centers
because there were no potential trade throughs that would violate
Regulation NMS. However, shares are routed to CHX at the end of the
sequence because all interest at 21.00 in both DBK and NYBX is
exhausted and additional shares at that price are available on CHX even
though Regulation NMS does not require shares to be routed there.
Scenario C: NYBX Buy order for 13500 shares at 22.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to CHX at 21.00 (Reg. NMS) and all are
executed at 21.00. 12500 shares simultaneously routed to DBK at 21.00
and 1000 are executed at 21.00.
2. 11500 shares remain and are sent back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at 21.00.
5. Verify no market data updates.
6. 6500 shares remain and are routed to DBK at 22.00 and 1000 are
executed at 22.00.
7. 5500 shares remain and are sent back to NYBX at 22.00.
8. Verify no market data updates.
9. 5000 shares execute in NYBX at 22.00.
10. Verify no market data updates.
11. 500 shares routed to BATS at 22.00 and all are executed at
22.00.
In Scenario C, 1000 shares are initially routed to CHX at 21.00 to
eliminate the potential of a trade through of this protected quotation
(since the size and price limit of the order mean that contra side
liquidity in the DBK and the Facility at 22.00 will be executed
against) that is prohibited by Regulation NMS. The full amount of the
remaining portion of the order is simultaneously routed to the DBK at
21.00 even though only 1000 shares are available there at that price,
because of the potential to interact with CCS interest. Later in the
sequence of events, the full amount of the remaining order at that
point (6500 shares) is routed to the DBK at 22.00 for the same reason,
even though only 1000 shares are available there at that price. At the
end of the sequence, the routing of 500 shares to BATS at 22.00 is not
for the purpose of compliance with Regulation NMS (since no executions
at a higher price will be triggered by the size and price limit of this
order), but is made to access additional top-of-book contra side
liquidity at another automated market center because no additional
liquidity at that price is available in either the DBK or the Facility.
Scenario D: NYBX Buy order for 14500 shares at 23.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to CHX at 21.00 (Reg. NMS) and all are
executed at 21.00. 1000 shares routed to BATS at 22.00 (Reg. NMS) and
all are executed at 22.00. 12500 shares simultaneously routed to DBK at
21.00 and 1000 are executed at 21.00.
2. 11500 shares remain and are sent back to NYBX at 21.00.
3. Verify no market data updates.
4. 5000 shares execute in NYBX at 21.00.
5. Verify no market data updates.
6. 6500 shares remain and are routed to DBK at 22.00 and 1000 are
executed at 22.00.
7. 5500 shares remain and are sent back to NYBX at 22.00.
8. Verify no market data updates.
9. 5000 shares execute in NYBX at 22.00.
10. Verify no market data updates.
11. 500 shares routed to DBK at 23.00 and all are executed at
23.00.
Scenario D is very similar to Scenario C, except that the increase
in order size and the increase in the limit price to 23.00 create a
potential trade through at 23.00 in the DBK of the 22.00 protected
quotation at BATS. Consequently, in addition to the 1000 shares that
are initially routed to CHX at 21.00 to eliminate the potential for a
trade through of that protected quotation that is prohibited by
Regulation NMS, an additional 1000 shares are initially routed to BATS
at 22.00 to eliminate the potential for a trade through of that
protected quotation as well. The remaining execution sequence is the
same as Scenario C except that the final 500 shares of the order are
routed to the DBK and executed at 23.00 because all lower contra side
prices in the market have been executed against.
Proposed Change in the Process
In practice, the fact that the NYBX order proceeds through a series
of steps that take place sequentially rather than simultaneously
results in the disappearance or the adjustment of a substantial portion
of the available contra side liquidity that shows up on the initial
market evaluation, before the NYBX order is able to execute against
that liquidity. Consequently, the purpose of the proposed amendment is
to capture a higher percentage of the available contra side liquidity
by attempting to execute simultaneously against all such liquidity
within the limit price of the order that is revealed on the initial
market evaluation, whether that liquidity (1) Is in the DBK (displayed
and undisplayed), (2) is in the NYBX or (3) consists of top-of-book
contra side quotations displayed on other automated trading centers.
The initial portion of the order routed to the DBK will no longer be
oversized in the hope of interacting with CCS interest, but will be
sized based on the total amount of displayed and undisplayed contra
side liquidity in the DBK that is available for execution within the
limit price of the order. The same principle (no oversizing) will
continue to be applicable to portions of the order that attempt to
execute against available contra side interest in the Facility and
against such interest that is displayed on other automated trading
centers.
As is the case with respect to the current operation of the
Facility and in compliance with Regulation NMS, applicable volume will
be routed immediately to execute against all protected quotations of
other automated trading centers that may potentially be traded through
by the NYBX order. However, the routing of applicable volume to other
automated trading centers for execution against available contra side
top-of-book quotations displayed by such markets where no potential
trade through is involved will no longer be delayed until the order has
executed with all available contra side liquidity in the DBK and the
Facility. Instead, such volume will be routed out at the same time that
other portions of the order attempt to execute against available contra
side liquidity in the Facility or are routed for execution to the DBK
or to other automated trading centers in compliance with Regulation
NMS.
In a situation in which the size of the NYBX order is less than the
total available contra side liquidity that is potentially executable
within the limit
[[Page 58459]]
price in the Facility and the DBK and at the top-of-book at other
automated trading centers, the ``tie breaker'' rules for routing
decision purposes will provide that (i) an execution in the DBK will
have priority over an execution at the same price in the Facility or on
another automated trading center, and (ii) an execution in the Facility
will have priority over an execution at the same price on another
automated trading center.
The following examples demonstrate how NYBX orders will be
processed under the proposed amendment. Assume the same NYBX initial
market evaluation as above and the same four scenarios.
Scenario A: NYBX Buy order for 5000 shares at 21.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to DBK at 21.00 and all are executed at 21.00
4000 shares simultaneously executed in NYBX at 21.00
In Scenario A, no shares are routed to other automated trading
centers because (i) there are no potential trade throughs for this
price limit and order volume, and (ii) executions at 21.00 in DBK and
NYBX at 21.00 have priority over executions at CHX at the same price.
Even though the entire 5000 shares could execute within NYBX at 21.00
with no routing necessary, 1000 shares are routed to the DBK to execute
against contra side liquidity there at the same price because
executions in DBK have priority over executions in NYBX. Unlike the
current process, none of the routings to the DBK will be oversized
(i.e., the number of shares routed will not exceed the displayed and
undisplayed interest in the DBK at a given price). Therefore, only 1000
shares will be initially routed to the DBK instead of the full order
size of 5000 shares. Note that everything in Scenario A takes place
simultaneously under the proposed amendment, compared to four
sequential steps as the Facility currently operates.
Scenario B: NYBX Buy order for 6500 shares at 21.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to DBK at 21.00 and all are executed at
21.00. 5000 shares simultaneously execute in NYBX at 21.00. 500 shares
simultaneously routed to CHX at 21.00 and all are executed at 21.00.
Again, only the amount of the displayed and undisplayed interest in
the DBK is routed to the DBK, and no orders are routed to other
automated trading centers for Regulation NMS compliance purposes (since
there are no potential trade throughs that would violate Regulation
NMS). However, shares are routed to CHX because all interest at 21.00
in both DBK and NYBX will be executed against by the order, and
additional shares at that price are available on CHX even though
Regulation NMS does not require shares to be routed there for
execution. Note that everything in Scenario B takes place
simultaneously under the proposed amendment, compared to six sequential
steps as the Facility currently operates.
Scenario C: NYBX Buy order for 13500 shares at 22.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to CHX at 21.00 (Reg. NMS) and all are
executed at 21.00. 1000 shares simultaneously routed to DBK at 21.00
and all are executed at 21.00. 5000 shares simultaneously execute in
NYBX at 21.00. 1000 shares simultaneously routed to DBK at 22.00 and
all are executed at 22.00. 5000 shares simultaneously execute in NYBX
at 22.00. 500 shares simultaneously routed to BATS at 22.00 and all are
executed at 22.00.
In Scenario C, 1000 shares are routed to CHX at 21.00 to eliminate
the potential of a trade through at 22.00 of this protected quotation
(since the size and price limit of the order mean that contra side
liquidity in the DBK and the Facility at 22.00 will be executed
against) that is prohibited by Regulation NMS. The simultaneous routing
of 500 shares to BATS at 22.00 is not for the purpose of compliance
with Regulation NMS (since no executions at a higher price will be
triggered by the size and price limit of this order), but is made to
access additional top-of-book contra side liquidity at another
automated market center because no additional liquidity at that price
is available in either the DBK or the Facility. As before, only the
amount of the displayed and undisplayed interest in the DBK is routed
to the DBK. Note that everything in Scenario C takes place
simultaneously under the proposed amendment, compared to eleven
sequential steps as the Facility currently operates.
Scenario D: NYBX Buy order for 14500 shares at 23.00 (MTV = 100 shares)
Results (each number below represents a separate step):
1. 1000 shares routed to CHX at 21.00 (Reg. NMS) and all are
executed at 21.00. 1000 shares simultaneously routed to BATS at 22.00
(Reg. NMS) and all are executed at 22.00. 1000 shares simultaneously
routed to DBK at 21.00 and all are executed at 21.00. 5000 shares
simultaneously execute in NYBX at 21.00. 1000 shares simultaneously
routed to DBK at 22.00 and all are executed at 22.00. 5000 shares
simultaneously execute in NYBX at 22.00. 500 shares simultaneously
routed to DBK at 23.00 and all are executed at 23.00.
Scenario D is very similar to Scenario C, except that the increase
in order size and the increase in the limit price to 23.00 mean that a
full 1000 shares also need to be routed to BATS at 22.00 to eliminate
the potential for a trade through in the DBK at 23.00 of that protected
quotation in violation of Regulation NMS. Consequently, in addition to
the 1000 shares that are initially routed to CHX at 21.00 to eliminate
the potential for a trade through of that protected quotation that is
prohibited by Regulation NMS, an additional 1000 shares are
simultaneously routed to BATS at 22.00 to eliminate the potential for a
trade through of that protected quotation as well. Scenario D also
differs from Scenario C in that the final routing to DBK is against a
portion of the available contra side liquidity there at 23.00, since
all lower contra side prices in the market have been executed against.
Note that everything in Scenario D takes place simultaneously under the
proposed amendment, compared to eleven sequential steps as the Facility
currently operates.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \3\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5) \4\ in particular in that it 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 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. More specifically, the
Exchange believes that the proposed rule change will improve the
quality of the market and the outcomes for investors by capturing a
higher percentage of the available contra side liquidity through
attempting to execute
[[Page 58460]]
simultaneously against all such liquidity within the limit price of the
order that is revealed on the initial market evaluation, thereby
increasing the probability that a large order placed in the Facility
will achieve a complete and timely fill. The proposed rule change will
thereby contribute to perfecting the mechanism of a free and open
market and a national market system and is also consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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-NYSE-2010-67 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-NYSE-2010-67. 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-NYSE-2010-67 and should be
submitted on or before October 15, 2010.
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\5\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\5\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-23924 Filed 9-23-10; 8:45 am]
BILLING CODE 8010-01-P
