Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Disapprove Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rule 4753(c) as a Six Month Pilot in 100 NASDAQ-Listed Securities, 2732-2733 [2011-771]
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Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices
designates the proposal operative upon
filing.15
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.
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–BX–
2011–002 and should be submitted on
or before February 4, 2011.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Elizabeth M. Murphy,
Secretary.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2011–002 on the
subject line.
mstockstill on DSKH9S0YB1PROD with NOTICES
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–2011–002. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
15 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).
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[FR Doc. 2011–772 Filed 1–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63685; File No. SR–
NASDAQ–2010–074]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Designation of Longer Period for
Commission Action on Proceedings To
Determine Whether To Disapprove
Proposed Rule Change, as Modified by
Amendment No. 1, To Adopt Rule
4753(c) as a Six Month Pilot in 100
NASDAQ-Listed Securities
January 10, 2011.
I. Introduction
On June 18, 2010, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
implement, on a six-month pilot basis,
a volatility-based trading pause in 100
Nasdaq-listed securities (‘‘Volatility
Guard’’). On June 25, 2010, Nasdaq filed
Amendment No. 1 to the proposed rule
change. The proposed rule change, as
amended, was published for comment
in the Federal Register on July 15,
2010.3 The Commission received four
comment letters on the proposal.4
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 62468
(July 7, 2010), 75 FR 41258.
4 See Letter from Joe Ratterman, Chairman and
Chief Executive Officer, BATS Global Markets, Inc.,
to Hon. Mary Schapiro, Chairman, Commission,
dated July 1, 2010 (‘‘BATS Letter’’); Letter from Jose
Marques, Managing Director, Deutsche Bank
Securities Inc., to Elizabeth M. Murphy, Secretary,
Commission, dated July 21, 2010 (‘‘Deutsche Bank
Letter’’); Letter from Janet M. Kissane, Senior Vice
President, Legal and Corporate Secretary, NYSE
1 15
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
Nasdaq responded to these comments
on August 12, 2010.5 The Commission
subsequently extended the time period
in which to either approve the proposed
rule change, or to institute proceedings
to determine whether to disapprove the
proposed rule change, to October 13,
2010.6 On October 13, 2010, the
Commission issued an order instituting
disapproval proceedings.7 The
Commission thereafter received one
comment letter, which requested that
the proposed rule change be
disapproved.8
Section 19(b)(2) of the Act 9 provides
that, after initiating dispproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of the filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on July
15, 2010. January 11, 2011 is 180 days
from that date, and March 12, 2011, is
an additional 60 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
this proposed rule change and the issues
raised in the comment letters that have
been submitted in connection with this
filing. Specifically, the Commission
believes the proposal raises issues as to
whether the Volatility Guard, by halting
trading on Nasdaq when the price of a
security moves quickly over a short
period of time, will exacerbate the
volatility of trading in that security on
the other exchanges and over-thecounter trading centers that remain
open. In addition, because the
thresholds for triggering the Volatility
Euronext, to Elizabeth Murphy, Secretary,
Commission, dated August 3, 2010 (‘‘NYSE Letter’’);
Letter from Ann L. Vlcek, Managing Director and
Associate General Counsel, Securities Industry and
Financial Markets Association, to Elizabeth M.
Murphy, Secretary, Commission, dated June 25,
2010 (‘‘SIFMA Letter’’).
5 See Letter from T. Sean Bennett, Assistant
General Counsel, Nasdaq, to Elizabeth M. Murphy,
Secretary, Commission (‘‘Nasdaq response’’).
6 See Securities Exchange Act Release No. 62740
(August 18, 2010), 75 FR 52049 (August 24, 2010).
7 See Securities Exchange Act Release No. 63098,
75 FR 64384 (October 19, 2010).
8 See Letter from Timothy Quast, Managing
Director, ModernIR, to Elizabeth M. Murphy,
Secretary, Commission, dated November 11, 2010.
9 15 U.S.C. 78s(b)(2).
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14JAN1
Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices
Guard, and the length of the trading halt
that results, differ from those of the
recently approved, market-wide singlestock circuit breakers, the Commission
believes the proposal raises issues as to
whether the operation of the Volatility
Guard will interfere with, or otherwise
limit the effectiveness of, the circuit
breakers, the goal of which is to prevent
potentially destabilizing price volatility
across the U.S. securities markets.
Extending the time within which to
approve or disapprove this proposed
rule change will enable the Commission
to more fully consider these issues.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Act,10 designates March 11, 2011, as the
date by which the Commission should
either approve or disapprove the
proposed rule change.11
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
fees governing pricing for Exchange
members using the Phlx XL II system,3
for routing standardized equity and
index option Customer and Professional
orders to away markets for execution.
While fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on January 3, 2011.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, at the
principal office of the Exchange, at the
Commission’s Public Reference Room,
and on the Commission’s Web site at
https://www.sec.gov.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
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.
[FR Doc. 2011–771 Filed 1–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63679; File No. SR–Phlx–
2010–187]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees
January 7, 2011.
mstockstill on DSKH9S0YB1PROD with NOTICES
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
29, 2010, NASDAQ OMX PHLX, Inc.
[sic] (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III 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.
10 15
U.S.C. 78s(b)(2).
Comission notes that it is extending the
time period in which to issue an approval or
disapproval order to March 11, 2011, since the full
60-day extension would expire on Saturday, March
12, 2011.
12 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
11 The
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to recoup costs that the
Exchange incurs for routing and
executing Customer and Professional
orders in equity and index options to
the International Securities Exchange
LLC (‘‘ISE’’) in Select Symbols 4 for
orders of 100 or more contracts. ISE
recently amended its fees and the
amendments proposed herein reflect the
proposed ISE amendments.5
In May 2009, the Exchange adopted
Rule 1080(m)(iii)(A) to establish Nasdaq
Options Services LLC (‘‘NOS’’), a
3 For a complete description of Phlx XL II, see
Securities Exchange Act Release No. 59995 (May
28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx–
2009–32). The instant proposed fees will apply only
to option orders entered into, and routed by, the
Phlx XL II system.
4 Select Symbols refer to the symbols which are
subject to ISE’s Rebates and Fees for Adding and
Removing Liquidity in Select Symbols in ISE’s
Schedule of Fees.
5 See SR–ISE–2010–120.
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
2733
member of the Exchange, as the
Exchange’s exclusive order router.6 NOS
is utilized by the Phlx XL II system
solely to route orders in options listed
and open for trading on the Phlx XL II
system to destination markets.
Currently, the Exchange assesses a
Routing Fee of $0.26 per contract for
Customer orders and $0.31 per contract
for Professional orders. The Exchange
proposes to amend its Routing Fees for
orders routed to ISE in Select Symbols
by assessing $0.18 per contract for
Customer orders and $0.34 per contract
for Professional Orders.
The Exchange also proposes to
remove a footnote reference to the ISE
Select Symbols which states ‘‘[t]his fee
applies to orders of 100 or more
contracts.’’ This proposal reflects recent
amendments to ISE’s fees, which
eliminate the fee differential between
priority customers with 100 or more
contracts and priority customers with
less than 100 contracts.7 All other
orders that are routed to ISE, which are
not in the Select Symbols, would be
assessed the rates labeled ‘‘ISE’’.
The Exchange is proposing these fees
to recoup the majority of transaction
and clearing costs associated with
routing Customer and Professional
orders to ISE in Select Symbols. These
proposed fees will enable the Exchange
to recover the transaction fees assessed
by ISE, where applicable, plus clearing
fees for the execution of Customer and
Professional orders routed from the Phlx
XL II system. As with all fees, the
Exchange may adjust these Routing Fees
in response to competitive conditions
by filing a new proposed rule change.
While fee changes pursuant to this
proposal are effective upon filing, the
Exchange has designated these changes
to be operative on January 3, 2011.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 8
in general, and furthers the objectives of
Section 6(b)(4) of the Act 9 in particular,
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members. The Exchange
believes that these fees are reasonable
because the Exchange is seeking to
recoup costs that it incurs when routing
orders to ISE in Select Symbols on
6 See Securities Exchange Act Release No. 59995
(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR–
Phlx–2009–32).
7 See SR–ISE–2010–120. See also E-mail from
Angela S. Dunn, Assistant General Counsel, Phlx,
to Johnna B. Dumler, Special Counsel, Commission,
dated January 5, 2011.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
E:\FR\FM\14JAN1.SGM
14JAN1
]]>Agencies
[Federal Register Volume 76, Number 10 (Friday, January 14, 2011)]
[Notices]
[Pages 2732-2733]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-771]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63685; File No. SR-NASDAQ-2010-074]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Designation of Longer Period for Commission Action on
Proceedings To Determine Whether To Disapprove Proposed Rule Change, as
Modified by Amendment No. 1, To Adopt Rule 4753(c) as a Six Month Pilot
in 100 NASDAQ-Listed Securities
January 10, 2011.
I. Introduction
On June 18, 2010, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to implement, on a six-month pilot basis, a
volatility-based trading pause in 100 Nasdaq-listed securities
(``Volatility Guard''). On June 25, 2010, Nasdaq filed Amendment No. 1
to the proposed rule change. The proposed rule change, as amended, was
published for comment in the Federal Register on July 15, 2010.\3\ The
Commission received four comment letters on the proposal.\4\ Nasdaq
responded to these comments on August 12, 2010.\5\ The Commission
subsequently extended the time period in which to either approve the
proposed rule change, or to institute proceedings to determine whether
to disapprove the proposed rule change, to October 13, 2010.\6\ On
October 13, 2010, the Commission issued an order instituting
disapproval proceedings.\7\ The Commission thereafter received one
comment letter, which requested that the proposed rule change be
disapproved.\8\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62468 (July 7,
2010), 75 FR 41258.
\4\ See Letter from Joe Ratterman, Chairman and Chief Executive
Officer, BATS Global Markets, Inc., to Hon. Mary Schapiro, Chairman,
Commission, dated July 1, 2010 (``BATS Letter''); Letter from Jose
Marques, Managing Director, Deutsche Bank Securities Inc., to
Elizabeth M. Murphy, Secretary, Commission, dated July 21, 2010
(``Deutsche Bank Letter''); Letter from Janet M. Kissane, Senior
Vice President, Legal and Corporate Secretary, NYSE Euronext, to
Elizabeth Murphy, Secretary, Commission, dated August 3, 2010
(``NYSE Letter''); Letter from Ann L. Vlcek, Managing Director and
Associate General Counsel, Securities Industry and Financial Markets
Association, to Elizabeth M. Murphy, Secretary, Commission, dated
June 25, 2010 (``SIFMA Letter'').
\5\ See Letter from T. Sean Bennett, Assistant General Counsel,
Nasdaq, to Elizabeth M. Murphy, Secretary, Commission (``Nasdaq
response'').
\6\ See Securities Exchange Act Release No. 62740 (August 18,
2010), 75 FR 52049 (August 24, 2010).
\7\ See Securities Exchange Act Release No. 63098, 75 FR 64384
(October 19, 2010).
\8\ See Letter from Timothy Quast, Managing Director, ModernIR,
to Elizabeth M. Murphy, Secretary, Commission, dated November 11,
2010.
---------------------------------------------------------------------------
Section 19(b)(2) of the Act \9\ provides that, after initiating
dispproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of the filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on July 15, 2010. January 11, 2011 is 180 days from
that date, and March 12, 2011, is an additional 60 days from that date.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change and the issues raised in the comment letters that have been
submitted in connection with this filing. Specifically, the Commission
believes the proposal raises issues as to whether the Volatility Guard,
by halting trading on Nasdaq when the price of a security moves quickly
over a short period of time, will exacerbate the volatility of trading
in that security on the other exchanges and over-the-counter trading
centers that remain open. In addition, because the thresholds for
triggering the Volatility
[[Page 2733]]
Guard, and the length of the trading halt that results, differ from
those of the recently approved, market-wide single-stock circuit
breakers, the Commission believes the proposal raises issues as to
whether the operation of the Volatility Guard will interfere with, or
otherwise limit the effectiveness of, the circuit breakers, the goal of
which is to prevent potentially destabilizing price volatility across
the U.S. securities markets. Extending the time within which to approve
or disapprove this proposed rule change will enable the Commission to
more fully consider these issues.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\10\ designates March 11, 2011, as the date by which the Commission
should either approve or disapprove the proposed rule change.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
\11\ The Comission notes that it is extending the time period in
which to issue an approval or disapproval order to March 11, 2011,
since the full 60-day extension would expire on Saturday, March 12,
2011.
\12\ 17 CFR 200.30-3(a)(57).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-771 Filed 1-13-11; 8:45 am]
BILLING CODE 8011-01-P
