Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.37, Order Execution, To Clarify Users' Ability To Instruct NYSE Arca To Bypass Non-Regulation NMS Protected Market Centers When Routing Away, 65041-65042 [2010-26508]

Download as PDF Federal Register / Vol. 75, No. 203 / Thursday, October 21, 2010 / Notices benefit recipients, Federal agencies and Federal employees. The currently approved collection has been revised to exclude performance measurement surveys and program services evaluation surveys. Only those surveys relating specifically to customer satisfaction will be associated with OMB Control No. 3206–0236. We estimate 495,182 customer satisfaction surveys will be completed in the next 3 years. The time estimate varies from 2 minutes to 30 minutes to complete. The estimated burden is 34,152 hours. U.S. Office of Personnel Management. John Berry, Director. [FR Doc. 2010–26541 Filed 10–20–10; 8:45 am] BILLING CODE 6325–47–P [Release No. 34–63116; File No. SR– NYSEArca–2010–89] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca Equities Rule 7.37, Order Execution, To Clarify Users’ Ability To Instruct NYSE Arca To Bypass Non-Regulation NMS Protected Market Centers When Routing Away October 15, 2010. jlentini on DSKJ8SOYB1PROD with NOTICES Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) and Rule 19b–4 thereunder,2 notice is hereby given that, on October 13, 2010, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Rule 7.37, Order Execution, to clarify Users’ ability to instruct NYSE Arca to bypass nonRegulation NMS protected market centers when routing away. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, at the Commission’s 2 17 U.S.C.78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 17:24 Oct 20, 2010 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 Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION 1 15 Web site at https://www.sec.gov, and https://www.nyse.com. 1. Purpose The Exchange proposes to amend NYSE Arca Equities Rule 7.37, Order Execution, to clarify Users’ ability to instruct NYSE Arca when routing eligible unexecuted orders to bypass any market centers that are not posting Protected Quotations within the meaning of Regulation NMS. In March 2008, NYSE Arca Equities began offering clients access to undisplayed liquidity via Indications of Interest by adding several new routing venues (‘‘IOI Routing Functionality’’). In May 2008, NYSE Arca Equities provided Users the ability to opt out of this IOI Routing Functionality. Users are currently able to opt out of IOI Routing Functionality while retaining the ability to use the full array of routable orders by marking any routable order as not eligible to route to market centers that are not posting Protected Quotations. In order to increase awareness of this option, the Exchange now proposes to add the following text to proposed Rule 7.37(d)(4): For an order that has not been executed in its entirety pursuant to paragraphs (a) through (c) of this Rule, and which is otherwise eligible to route away, Users may instruct NYSE Arca to bypass any market centers that are not posting Protected Quotations within the meaning of Regulation NMS. The Exchange also notes that the proposed rule is substantially similar to Nasdaq Rule 4758 (1)(A)(iv). 2. Statutory Basis The proposed rule change is consistent with Section 6(b) 3 of the Act, in general, and furthers the objectives of 3 15 Jkt 223001 PO 00000 U.S.C. 78f(b). Frm 00058 Fmt 4703 Sfmt 4703 65041 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, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that the proposed amendment is consistent with the goal of removing impediments to a free and open market because the changes proposed herein will clarify currently existing routing options designed to give Users flexibility and control over how their orders route to away market centers. 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 Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 5 and Rule 19b– 4(f)(6)(iii) thereunder.6 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 4 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(3)(A). 6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires that a self-regulatory organization submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 5 15 E:\FR\FM\21OCN1.SGM 21OCN1 65042 Federal Register / Vol. 75, No. 203 / Thursday, October 21, 2010 / Notices 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–26508 Filed 10–20–10; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–63117; File No. SR–ISE– 2010–101] • 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 No. SR–NYSEArca–2010–89 on the subject line. Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Enhancements to the Exchange’s Electronic Trading Platform Paper Comments October 15, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 2 thereunder, notice is hereby given that on October 7, 2010, International Securities Exchange, LLC (‘‘ISE’’ or the ‘‘Exchange’’) All submissions should refer to File No. filed with the Securities and Exchange Commission (the ‘‘Commission’’) the SR–NYSEArca–2010–89. This file proposed rule change as described in number should be included on the subject line if e-mail is used. To help the Items I and II below, which Items have been prepared by the Exchange. The Commission process and review your Exchange has filed the proposal as a comments more efficiently, please use only one method. The Commission will ‘‘non-controversial’’ proposed rule post all comments on the Commission’s change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule Internet Web site (https://www.sec.gov/ 19b–4(f)(6) thereunder.4 The rules/sro.shtml). Copies of the Commission is publishing this notice to submission, all subsequent solicit comments on the proposed rule amendments, all written statements change from interested persons. with respect to the proposed rule change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the The Exchange proposes to amend Commission and any person, other than certain rules to facilitate enhancements those that may be withheld from the to its electronic options trading system. public in accordance with the The text of the proposed rule change is provisions of 5 U.S.C. 552, will be available on the Exchange’s Web site available for Web site viewing and https://www.ise.com, at the principal printing in the Commission’s Public office of the Exchange, at the Reference Room, 100 F Street, NE., Commission’s Public Reference Room, Washington, DC 20549, on official and on the Commission’s Web site at business days between the hours of 10 https://www.sec.gov. a.m. and 3 p.m. Copies of such filing also will be available for inspection and II. Self-Regulatory Organization’s copying at the principal office of NYSE Statement of the Purpose of, and Arca. All comments received will be Statutory Basis for, the Proposed Rule posted without change; the Commission Change does not edit personal identifying In its filing with the Commission, the information from submissions. You Exchange included statements should submit only information that you wish to make available publicly. All 7 17 CFR 200.30–3(a)(12). submissions should refer to File No. 1 15 U.S.C. 78s(b)(1). SR–NYSEArca–2010–89 and should be 2 17 CFR 240.19b–4. submitted on or before November 12, 3 15 U.S.C. 78s(b)(3)(A). 2010. 4 17 CFR 240.19b–4(f)(6). jlentini on DSKJ8SOYB1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. VerDate Mar<15>2010 17:24 Oct 20, 2010 Jkt 223001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange has developed an enhanced technology trading platform. To assure a smooth transition, the Exchange will migrate option classes from its current trading system to the new trading system over time (the ‘‘Transition Period’’).5 While the new trading platform will conform to the ISE’s current trading rules, with a few proposed changes discussed below, some functionality offered on the current system will be phased-in during the initial implementation of the new trading platform. Accordingly, the Exchange seeks to identify in its rules any differences in the execution of orders on the new trading platform during the Transition Period. The Exchange will issue an information circular regarding these rule changes, and will also issue information circulars prior to transferring options classes to the new trading platform during the Transition Period. Changes to Existing ISE Rules The Exchange proposes to implement two new order types, Opening Only Orders and Good-Till-Date Orders on the new trading platform. An Opening Only order is a limit order that can be entered for the opening rotation only. Any portion of the order that is not executed during the opening rotation is cancelled. This order type currently is available on other options exchanges.6 5 Options classes will be transferred from the current trading platform to the new trading platform. The same options cannot trade on both systems at the same time. The Exchange has been working with its members to assure a smooth transition to the new trading platform and will continue to do so up to the launch of the new technology and during the Transition Period. The name of the new trading platform, which as yet remains unannounced, will be communicated to Exchange members via circular. 6 See NYSE Arca Rule 6.62(r) which defines an ‘‘Opening Only Order’’ as ‘‘a market order or limit order which is to be executed in whole or in part during the opening auction of an options series or not at all. Any portion not so executed is to be treated as cancelled.’’ See also NASDAQ OMX PHLX (‘‘PHLX’’) Rule 1066(c)(5), which defines an ‘‘Opening-Only-Market Order’’ as ‘‘a market order E:\FR\FM\21OCN1.SGM 21OCN1

Agencies

[Federal Register Volume 75, Number 203 (Thursday, October 21, 2010)]
[Notices]
[Pages 65041-65042]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26508]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63116; File No. SR-NYSEArca-2010-89]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending NYSE Arca 
Equities Rule 7.37, Order Execution, To Clarify Users' Ability To 
Instruct NYSE Arca To Bypass Non-Regulation NMS Protected Market 
Centers When Routing Away

October 15, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on October 13, 2010, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend NYSE Arca Equities Rule 7.37, Order 
Execution, to clarify Users' ability to instruct NYSE Arca to bypass 
non-Regulation NMS protected market centers when routing away. The text 
of the proposed rule change is available at the Exchange, the 
Commission's Public Reference Room, at the Commission's Web site at 
https://www.sec.gov, and 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend NYSE Arca Equities Rule 7.37, Order 
Execution, to clarify Users' ability to instruct NYSE Arca when routing 
eligible unexecuted orders to bypass any market centers that are not 
posting Protected Quotations within the meaning of Regulation NMS.
    In March 2008, NYSE Arca Equities began offering clients access to 
undisplayed liquidity via Indications of Interest by adding several new 
routing venues (``IOI Routing Functionality''). In May 2008, NYSE Arca 
Equities provided Users the ability to opt out of this IOI Routing 
Functionality. Users are currently able to opt out of IOI Routing 
Functionality while retaining the ability to use the full array of 
routable orders by marking any routable order as not eligible to route 
to market centers that are not posting Protected Quotations.
    In order to increase awareness of this option, the Exchange now 
proposes to add the following text to proposed Rule 7.37(d)(4):
    For an order that has not been executed in its entirety pursuant to 
paragraphs (a) through (c) of this Rule, and which is otherwise 
eligible to route away, Users may instruct NYSE Arca to bypass any 
market centers that are not posting Protected Quotations within the 
meaning of Regulation NMS.
    The Exchange also notes that the proposed rule is substantially 
similar to Nasdaq Rule 4758 (1)(A)(iv).
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \3\ of 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, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that the 
proposed amendment is consistent with the goal of removing impediments 
to a free and open market because the changes proposed herein will 
clarify currently existing routing options designed to give Users 
flexibility and control over how their orders route to away market 
centers.
---------------------------------------------------------------------------

    \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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6)(iii) thereunder.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires that a self-regulatory organization submit to the 
Commission written notice of its intent to file the proposed rule 
change, along with a brief description and text of the proposed rule 
change, at least five business days prior to the date of filing of 
the proposed rule change, or such shorter time as designated by the 
Commission. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission 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

[[Page 65042]]

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 No. SR-NYSEArca-2010-89 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 No. SR-NYSEArca-2010-89. 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 NYSE Arca. 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 No. SR-NYSEArca-2010-89 and should be 
submitted on or before November 12, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-26508 Filed 10-20-10; 8:45 am]
BILLING CODE 8011-01-P
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