Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Continue the Practice Governing the Directed Order Process on BOX, 81687-81689 [2010-32615]
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Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
11Ac1–1 within Rule 7.17(b) with Rule
602.
2. Statutory Basis
The proposed rule changes are
consistent with Section 6(b) 4 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and further the
objectives of Section 6(b)(5),5 in
particular. By amending various NYSE
Arca Equities rules in order to
harmonize them with FINRA rules and
federal rules and to eliminate confusing
or duplicative language and
unnecessary references to terms or
systems that are now obsolete, the
proposed rule changes are 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
mechanisms of a free and open market
and a national market system.
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.
emcdonald on DSK2BSOYB1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
6 15 U.S.C. 78s(b)(3)(A)(iii).
7 17 CFR 240.19b–4(f)(6).
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22:37 Dec 27, 2010
A proposed rule change filed under
Rule 19b–4(f)(6) 8 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),9 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission has determined that
waiving the 30-day operative delay of
the Exchange’s proposal is consistent
with the protection of investors and the
public interest because such waiver will
allow the Exchange to promptly
harmonize its rules with FINRA rules
and and to correct non-substantive
changes, thereby avoiding further
potential confusion and ensuring that
the rule text of the Exchange is
accurate.10 Therefore, the Commission
designates the proposed rule change to
be operative upon 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.
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of 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–NYSEArca–2010–88 and
should be submitted on or before
January 18, 2011.
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.11
Florence E. Harmon,
Deputy Secretary.
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–NYSEArca–2010–88 on the
subject line.
SECURITIES AND EXCHANGE
COMMISSION
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–NYSEArca–2010–88. This
file number should be included on the
8 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
10 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
9 17
4 15
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[FR Doc. 2010–32607 Filed 12–27–10; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–63591; File No. SR–BX–
2010–091]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Continue
the Practice Governing the Directed
Order Process on BOX
December 21, 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 December
16, 2010, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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81688
Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
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
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Chapter VI, Section 5 (Obligations of
Market Makers) of the Rules of the
Boston Options Exchange Group, LLC
(‘‘BOX’’) to extend the date of
effectiveness of the Directed Order 3
process (‘‘Pilot Program’’) from
December 31, 2010, to June 30, 2011
while the Commission considers the
Exchange’s proposal to amend the BOX
Rules to permit Executing Participants
(‘‘EPs’’) to only receive Directed Orders
through the BOX Trading Host from
Order Flow Providers (‘‘OFPs’’) whom
the EP has designated.4 The text of the
proposed rule change is available on the
Exchange’s website at https://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/, on the
Commission’s Web site at https://
www.sec.gov, at 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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
emcdonald on DSK2BSOYB1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On December 13, 2010, the Exchange
filed SR–BX–2010–080, a proposal to
amend the BOX Rules to continue the
practice governing the Exchange’s
Directed Order process on BOX.5
Specifically, pursuant to SR–BX–2010–
3 Capitalized
terms not otherwise defined herein
shall have the meanings prescribed within the BOX
Rules.
4 See Securities Exchange Act Release No. 63539
(December 14, 2010) (SR–BX–2010–079).
5 See Securities Exchange Act Release No. 63540
(December 14, 2010) (SR–BX–2010–080).
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23:53 Dec 27, 2010
Jkt 223001
080, the BOX Rules state that the BOX
Trading Host identifies to an Executing
Participant the identity of the firm
entering the Directed Order on BOX.
The amended rule as set forth in SR–
BX–2010–080 was to be effective on a
pilot basis until December 31, 2010,
while the Commission considered the
Exchange’s proposal to amend the BOX
Rules to permit EPs to only receive
Directed Orders through the BOX
Trading Host from OFPs whom the EP
has designated.6
The purpose of this proposed rule
change is to amend Chapter VI, Section
5(c)(i) of the BOX Rules to extend the
date of effectiveness of the amended
Directed Order rule from December 31,
2010, to June 30, 2011. This extension
of the pilot period will afford the
Commission the necessary time to
consider the Exchange’s proposal
SR–BX–2010–079 referenced above.7 In
the event the Commission reaches a
decision with respect to Exchange
proposal SR–BX–2010–079 before June
30, 2011, the proposed Pilot Program
governing the Directed Order process on
BOX will cease to be effective at the
time of that decision.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,8 in general, and furthers the
objectives of Section 6(b)(5) of the Act,9
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
mechanisms of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. In particular, the
Exchange believes that the proposed
extension of the pilot period will afford
the Commission the necessary time to
consider the Exchange’s proposal
SR–BX–2010–079 which would amend
the BOX Rules to permit EPs to only
receive Directed Orders through the
BOX Trading Host from OFPs whom the
EP has designated.10 Additionally, the
Exchange believes that the proposed
extension will allow the Directed Order
Pilot Program to remain in effect on
BOX without interruption.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments Regarding the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) 11 of the Act and
Rule 19b–4(f)(6) thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 14 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay, as
specified in Rule 19b–4(f)(6)(iii),15
which would make the rule change
effective and operative upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because such waiver
would continue the pilot for Directed
Orders that has operated under SR–BX–
2010–080. A waiver would therefore
continue to permit the Directed Order
Pilot Program to remain in effect on
BOX without
interruption.16 Accordingly, the
11 15
6 See
Securities Exchange Act Release Nos. 63540
(December 14, 2010) (SR–BX–2010–080) and 63539
(December 14, 2010) (SR–BX–2010–079).
7 See Securities Exchange Act Release No. 63539
(December 14, 2010) (SR–BX–2010–079).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 See Securities Exchange Act Release No. 63539
(December 14, 2010) (SR–BX–2010–079).
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12 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
13 Id.
14 17
CFR 240.19b–4(f)(6)(iii).
15 Id.
16 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\28DEN1.SGM
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Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices
Commission designates the proposed
rule change operative upon filing with
the Commission.
At any time within 60 days of the
filing of such 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:
emcdonald on DSK2BSOYB1PROD 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–BX–2010–091 on the
subject line.
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–BX–
2010–091 and should be submitted on
or before January 18, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–32615 Filed 12–27–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63594; File No. SR–Phlx–
2010–183]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NASDAQ OMX PHLX LLC To Expand
Its Short Term Option Program
December 21, 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 December
Paper Comments
15, 2010, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
• Send paper comments in triplicate
Securities and Exchange Commission
to Elizabeth M. Murphy, Secretary,
(the ‘‘Commission’’) the proposed rule
Securities and Exchange Commission,
change as described in Items I, II, and
100 F Street, NE., Washington, DC
III below, which Items have been
20549–1090.
prepared by the Exchange. The
All submissions should refer to File
Commission is publishing this notice to
Number SR–BX–2010–091. This file
solicit comments on the proposed rule
number should be included on the
subject line if e-mail is used. To help the change from interested persons.
Commission process and review your
I. Self-Regulatory Organization’s
comments more efficiently, please use
Statement of the Terms of Substance of
only one method. The Commission will the Proposed Rule Change
post all comments on the Commission’s
The Exchange is filing with the
Web site (https://www.sec.gov/rules/
Commission a proposal to expand the
sro.shtml). Copies of the submission, all Short Term Option Program (‘‘STO
subsequent amendments, all written
Program’’ or ‘‘Program’’) 3 so that the
statements with respect to the proposed
rule change that are filed with the
17 17 CFR 200.30–3(a)(12).
Commission, and all written
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
communications relating to the
3 Commentary .11 to Rule 1012 and Rule
proposed rule change between the
Commission and any person, other than 1101A(b)(vi). See Securities Exchange Act Release
No. 62296 (June 15, 2010), 75 FR 35115 (June 21,
those that may be withheld from the
2010) (SR–Phlx–2010–84) (notice of filing and
public in accordance with the
immediate effectiveness permanently establishing
STO Program on the Exchange). Other exchanges
provisions of 5 U.S.C. 552, will be
have also established permanent short term option
available for website viewing and
programs. See Securities Exchange Act Release Nos.
printing in the Commission’s Public
59824 (April 27, 2009), 74 FR 20518 (May 4, 2009)
Reference Room, 100 F Street, NE.,
(SR–CBOE–2009–018) (approval order permanently
establishing short term option program); 62444 (July
Washington, DC 20549, on official
2, 2010), 75 FR 39595 (July 9, 2010) (SR–ISE–2010–
business days between the hours of
10 a.m. and 3 p.m. Copies of such filing 72) (approval order [sic] permanently establishing
short term option program); 62297 (June 15, 2010),
also will be available for inspection and 75 FR 35111 (June 21, 2010) (SR–NASDAQ–2010–
073) (notice of filing and immediate effectiveness
copying at the principal office of the
permanently establishing short term option
Exchange. All comments received will
program); 62296 (June 15, 2010), 75 FR 35111 (June
be posted without change; the
21, 2010) [sic] (SR–Arca–2010–059) (notice of filing
Commission does not edit personal
and immediate effectiveness permanently
establishing short term option program); 62296
identifying information from
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81689
Exchange may select fifteen option
classes on which Short Term Option
Series 4 may be opened.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com/
NASDAQOMXPHLX/Filings/, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend Rule 1012 to expand
the STO Program so that the Exchange
may select fifteen option classes on
which Short Term Option Series may be
opened.
The STO Program is codified in
Commentary .11 to Rule 1012 and Rule
1101A(b)(vi). These sections state that
after an option class has been approved
for listing and trading on the Exchange,
the Exchange may open for trading on
any Thursday or Friday that is a
business day series of options on no
more than five option classes that expire
on the Friday of the following business
week that is a business day. In addition
to the five-option class limitation, there
(June 15, 2010), 75 FR 35111 (June 21, 2010) [sic]
(SR–Amex–2010–062) (notice of filing and
immediate effectiveness permanently establishing
short term option program); and 62505 (July 15,
2010), 75 FR 42792 (July 22, 2010) (SR–BX–2010–
047) (approval order [sic] permanently establishing
short term option program).
4 Short Term Option Series are series in an option
class that is approved for listing and trading on the
Exchange in which the series is opened for trading
on any Thursday or Friday that is a business day
and that expires on the Friday of the next business
week. If a Thursday or Friday is not a business day,
the series may be opened (or shall expire) on the
first business day immediately prior to that
Thursday or Friday, respectively. Rules 1000(b)(44),
1000A(b)(16), Commentary .11 to Rule 1012 and
Rule 1101A(b)(vi).
E:\FR\FM\28DEN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Notices]
[Pages 81687-81689]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32615]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63591; File No. SR-BX-2010-091]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Continue
the Practice Governing the Directed Order Process on BOX
December 21, 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 December 16, 2010, NASDAQ OMX BX, Inc. (the ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule
[[Page 81688]]
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 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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend Chapter VI, Section 5 (Obligations
of Market Makers) of the Rules of the Boston Options Exchange Group,
LLC (``BOX'') to extend the date of effectiveness of the Directed Order
\3\ process (``Pilot Program'') from December 31, 2010, to June 30,
2011 while the Commission considers the Exchange's proposal to amend
the BOX Rules to permit Executing Participants (``EPs'') to only
receive Directed Orders through the BOX Trading Host from Order Flow
Providers (``OFPs'') whom the EP has designated.\4\ The text of the
proposed rule change is available on the Exchange's website at https://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/, on the Commission's
Web site at https://www.sec.gov, at the Exchange, and at the
Commission's Public Reference Room.
---------------------------------------------------------------------------
\3\ Capitalized terms not otherwise defined herein shall have
the meanings prescribed within the BOX Rules.
\4\ See Securities Exchange Act Release No. 63539 (December 14,
2010) (SR-BX-2010-079).
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On December 13, 2010, the Exchange filed SR-BX-2010-080, a proposal
to amend the BOX Rules to continue the practice governing the
Exchange's Directed Order process on BOX.\5\ Specifically, pursuant to
SR-BX-2010-080, the BOX Rules state that the BOX Trading Host
identifies to an Executing Participant the identity of the firm
entering the Directed Order on BOX. The amended rule as set forth in
SR-BX-2010-080 was to be effective on a pilot basis until December 31,
2010, while the Commission considered the Exchange's proposal to amend
the BOX Rules to permit EPs to only receive Directed Orders through the
BOX Trading Host from OFPs whom the EP has designated.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63540 (December 14,
2010) (SR-BX-2010-080).
\6\ See Securities Exchange Act Release Nos. 63540 (December 14,
2010) (SR-BX-2010-080) and 63539 (December 14, 2010) (SR-BX-2010-
079).
---------------------------------------------------------------------------
The purpose of this proposed rule change is to amend Chapter VI,
Section 5(c)(i) of the BOX Rules to extend the date of effectiveness of
the amended Directed Order rule from December 31, 2010, to June 30,
2011. This extension of the pilot period will afford the Commission the
necessary time to consider the Exchange's proposal SR-BX-2010-079
referenced above.\7\ In the event the Commission reaches a decision
with respect to Exchange proposal SR-BX-2010-079 before June 30, 2011,
the proposed Pilot Program governing the Directed Order process on BOX
will cease to be effective at the time of that decision.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 63539 (December 14,
2010) (SR-BX-2010-079).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ 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 mechanisms of a free and open
market and a national market system, and, in general, to protect
investors and the public interest. In particular, the Exchange believes
that the proposed extension of the pilot period will afford the
Commission the necessary time to consider the Exchange's proposal SR-
BX-2010-079 which would amend the BOX Rules to permit EPs to only
receive Directed Orders through the BOX Trading Host from OFPs whom the
EP has designated.\10\ Additionally, the Exchange believes that the
proposed extension will allow the Directed Order Pilot Program to
remain in effect on BOX without interruption.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ See Securities Exchange Act Release No. 63539 (December 14,
2010) (SR-BX-2010-079).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments Regarding the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(6)
thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
may not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange requests that the
Commission waive the 30-day operative delay, as specified in Rule 19b-
4(f)(6)(iii),\15\ which would make the rule change effective and
operative upon filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because such waiver would continue the pilot for
Directed Orders that has operated under SR-BX-2010-080. A waiver would
therefore continue to permit the Directed Order Pilot Program to remain
in effect on BOX without interruption.\16\
[[Page 81689]]
Accordingly, the Commission designates the proposed rule change
operative upon filing with the Commission.
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\13\ Id.
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ Id.
\16\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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 rule-comments@sec.gov. Please include
File Number SR-BX-2010-091 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2010-091. 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 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 website 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-BX-2010-091 and should be submitted on
or before January 18, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-32615 Filed 12-27-10; 8:45 am]
BILLING CODE 8011-01-P
