Justia Agencies And Commissions Securities And Exchange Commission Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of the Trading Pause for Individual Stocks Contained in the Standard & Poor's 500 Index, Russell 1000 Index, and Specified Exchange Traded Products That Experience a Price Change of 10% or More During a Five-Minute Period, 19821-19823 [2011-8376]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of the Trading Pause for Individual Stocks Contained in the Standard & Poor's 500 Index, Russell 1000 Index, and Specified Exchange Traded Products That Experience a Price Change of 10% or More During a Five-Minute Period, 19821-19823 [2011-8376]

Download as PDF Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Notices exchange 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 proposed rule change also is designed to support the principles of Section 11A(a)(1) 8 of the Act in that it seeks to assure fair competition among brokers and dealers and among exchange markets. The Exchange believes that the proposed rule meets these requirements in that it promotes transparency and uniformity across markets concerning decisions to pause trading in a security when there are significant price movements. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. 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 if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.11 However, Rule 19b– 4(f)(6) 12 permits the Commission to designate a shorter time if such action 8 15 U.S.C. 78k–1(a)(1). U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b–4(f)(6). When filing a proposed rule change pursuant to Rule 19b–4(f)(6) under the Act, an exchange is required to give 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 Commission notes that the Exchange has satisfied this requirement. 11 17 CFR 240.19b–4(f)(6)(iii). 12 Id. srobinson on DSKHWCL6B1PROD with NOTICES 9 15 VerDate Mar<15>2010 16:41 Apr 07, 2011 Jkt 223001 is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Commission has considered the Exchange’s request to waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will allow the pilot program to continue uninterrupted, thereby avoiding the investor confusion that could result from a temporary interruption in the pilot program.13 For this reason, 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or 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, as amended, 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–NASDAQ–2011–042 on the subject line. 19821 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 offices 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–NASDAQ–2011–042, and should be submitted on or before April 29, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–8374 Filed 4–7–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64176; File No. SR–BX– 2011–018] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of the Trading Pause for Individual Stocks Contained in the Standard & Poor’s 500 Index, Russell 1000 Index, and Specified Exchange Traded Products That Experience a Price Change of 10% or More During a Five-Minute Period 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–NASDAQ–2011–042. This file number should be included on the subject line if e-mail is used. To help the April 4, 2011. Commission process and review your Pursuant to Section 19(b)(1) of the comments more efficiently, please use Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 13 For the purposes only of waiving the operative delay of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\08APN1.SGM 08APN1 19822 Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Notices srobinson on DSKHWCL6B1PROD with NOTICES notice is hereby given that on March 31, 2011, NASDAQ OMX BX, Inc. (‘‘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. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On June 10, 2010, the Commission granted accelerated approval, for a pilot period to end December 10, 2010, for a proposed rule change submitted by the Exchange, together with related rule changes of the BATS Exchange, Inc., Chicago Board Options Exchange, I. Self-Regulatory Organization’s Statement of the Terms of the Substance Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX of the Proposed Rule Change Exchange, Inc., International Securities Exchange LLC, The NASDAQ Stock The Exchange proposes to extend the Market LLC (‘‘NASDAQ’’), New York pilot period of the trading pause for Stock Exchange LLC (‘‘NYSE’’), NYSE individual stocks contained in the Amex LLC (‘‘NYSE Amex’’), NYSE Arca, Standard & Poor’s 500 Index, Russell Inc. (‘‘NYSE Arca’’), and National Stock 1000 Index, and specified Exchange Traded Products that experience a price Exchange, Inc. (collectively, the ‘‘Exchanges’’), to pause trading during change of 10% or more during a fiveperiods of extraordinary market minute period, so that the pilot will volatility in S&P 500 stocks.3 The rules now expire the earlier of August 11, require the Listing Markets 4 to issue 2011 or the date on which a limit up/ five-minute trading pauses for limit down mechanism to address individual securities for which they are extraordinary market volatility, if the primary Listing Market if the adopted, applies. transaction price of the security moves ten percent or more from a price in the The text of the proposed rule change preceding five-minute period. The is below. Proposed new language is Listing Markets are required to notify italicized; proposed deletions are in the other Exchanges and market brackets. participants of the imposition of a * * * * * trading pause by immediately IM–4120–3. Circuit Breaker Securities Pilot disseminating a special indicator over the consolidated tape. Under the rules, The provisions of paragraph (a)(11) of this once the Listing Market issues a trading Rule shall be in effect during a pilot set to pause, the other Exchanges are required end on the earlier of August 11, 2011 or the to pause trading in the security on their date on which a limit up/limit down markets. On September 10, 2010, the mechanism to address extraordinary market volatility, if adopted, applies[April 11, 2011]. Commission approved the respective rule filings of the Exchanges to expand During the pilot, the term ‘‘Circuit Breaker Securities’’ shall mean the securities included application of the pilot to the Russell 1000® Index and specified Exchange in the S&P 500® Index, the Russell 1000 Traded Products.5 On December 7, Index, as well as a pilot list of Exchange 2010, the Exchange filed an Traded Products. immediately effective filing to extend * * * * * the existing pilot program for four months, so that the pilot would expire II. Self-Regulatory Organization’s on April 11, 2011.6 Statement of the Purpose of, and The Exchange believes that the pilot Statutory Basis for, the Proposed Rule program has been successful in reducing Change the negative impacts of sudden, unanticipated price movements in the In its filing with the Commission, the securities covered by the pilot. The Exchange included statements Exchange also believes that an concerning the purpose of and basis for the proposed rule change and discussed additional four month extension of the any comments it received on the 3 Securities Exchange Act Release No. 62252 proposed rule change. The text of these (June 10, 2010), 75 FR 34186 (June 16, 2010) (SR– statements may be examined at the BX–2010–037). 4 The term ‘‘Listing Markets’’ refers collectively to places specified in Item IV below. The NYSE, NYSE Amex, NYSE Arca, and NASDAQ. Exchange has prepared summaries, set 5 Securities Exchange Act Release No. 62884 forth in Sections A, B, and C below, of (September 10, 2010), 75 FR 56618 (September 16, the most significant aspects of such 2010) (SR–BX–2010–044). 6 Securities Exchange Act Release No. 63527 statements. (December 10, 2010), 75 FR 78781 (December 16, 2010) (SR–BX–2010–088). VerDate Mar<15>2010 16:41 Apr 07, 2011 Jkt 223001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 pilot is warranted so that it may continue to assess whether circuit breakers are the best means to reduce the negative impacts of sudden, unanticipated price movements or whether alternative mechanisms would be more effective in achieving this goal. In this regard, the Exchange notes that the Exchanges are developing a ‘‘limit up/limit down’’ mechanism to reduce the negative impacts of sudden, unanticipated price movements in securities traded on the Exchanges. As such, the proposed extension may be shorter in duration should the Exchange adopt a limit up/limit down mechanism to address extraordinary market volatility. Accordingly, the Exchange is filing to further extend the pilot program until the earlier of August 11, 2011 or the date on which a limit up/ limit down mechanism to address extraordinary market volatility, if adopted, applies. 2. Statutory Basis The statutory basis for the proposed rule change is Section 6(b)(5) of the Securities Exchange Act of 1934 (the ‘‘Act’’),7 which requires the rules of an exchange 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 proposed rule change also is designed to support the principles of Section 11A(a)(1) 8 of the Act in that it seeks to assure fair competition among brokers and dealers and among exchange markets. The Exchange believes that the proposed rule meets these requirements in that it promotes transparency and uniformity across markets concerning decisions to pause trading in a security when there are significant price movements. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. 7 15 8 15 E:\FR\FM\08APN1.SGM U.S.C. 78f(b)(5). U.S.C. 78k–1(a)(1). 08APN1 Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Notices 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 if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.11 However, Rule 19b– 4(f)(6) 12 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Commission has considered the Exchange’s request to waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will allow the pilot program to continue uninterrupted, thereby avoiding the investor confusion that could result from a temporary interruption in the pilot program.13 For this reason, 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. If the Commission takes such action, the Commission shall institute proceedings 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). When filing a proposed rule change pursuant to Rule 19b–4(f)(6) under the Act, an exchange is required to give 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 Commission notes that the Exchange has satisfied this requirement. 11 17 CFR 240.19b–4(f)(6)(iii). 12 Id. 13 For the purposes only of waiving the operative delay of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). srobinson on DSKHWCL6B1PROD with NOTICES 10 17 VerDate Mar<15>2010 16:41 Apr 07, 2011 Jkt 223001 to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments 19823 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Cathy H. Ahn, Deputy Secretary. Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: [FR Doc. 2011–8376 Filed 4–7–11; 8:45 am] Electronic Comments [Release No. 34–64175; File No. SR–Phlx– 2011–44] • 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–2011–018 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–2011–018. 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 offices 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–2011–018, and should be submitted on or before April 29, 2011. PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Period of the Trading Pause for Individual Stocks Contained in the Standard & Poor’s 500 Index, Russell 1000 Index, and Specified Exchange Traded Products That Experience a Price Change of 10% or More During a Five-Minute Period April 4, 2011. 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 March 31, 2011, NASDAQ OMX PHLX LLC (‘‘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. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to extend the pilot period of the trading pause for individual stocks contained in the Standard & Poor’s 500 Index, Russell 1000 Index, and specified Exchange Traded Products that experience a price change of 10% or more during a fiveminute period, so that the pilot will now expire on the earlier of August 11, 2011 or the date on which a limit up/ limit down mechanism to address extraordinary market volatility, if adopted, applies. The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are in brackets. * * * * * 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\08APN1.SGM 08APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 76, Number 68 (Friday, April 8, 2011)]
[Notices]
[Pages 19821-19823]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8376]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64176; File No. SR-BX-2011-018]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Pilot Period of the Trading Pause for Individual Stocks Contained
in the Standard & Poor's 500 Index, Russell 1000 Index, and Specified
Exchange Traded Products That Experience a Price Change of 10% or More
During a Five-Minute Period

April 4, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\

[[Page 19822]]

notice is hereby given that on March 31, 2011, NASDAQ OMX BX, Inc.
(``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.
---------------------------------------------------------------------------

\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 extend the pilot period of the trading
pause for individual stocks contained in the Standard & Poor's 500
Index, Russell 1000 Index, and specified Exchange Traded Products that
experience a price change of 10% or more during a five-minute period,
so that the pilot will now expire the earlier of August 11, 2011 or the
date on which a limit up/limit down mechanism to address extraordinary
market volatility, if adopted, applies.
The text of the proposed rule change is below. Proposed new
language is italicized; proposed deletions are in brackets.
* * * * *

IM-4120-3. Circuit Breaker Securities Pilot

The provisions of paragraph (a)(11) of this Rule shall be in
effect during a pilot set to end on the earlier of August 11, 2011
or the date on which a limit up/limit down mechanism to address
extraordinary market volatility, if adopted, applies[April 11,
2011]. During the pilot, the term ``Circuit Breaker Securities''
shall mean the securities included in the S&P 500[supreg] Index, the
Russell 1000 Index, as well as a pilot list of Exchange Traded
Products.
* * * * *

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
On June 10, 2010, the Commission granted accelerated approval, for
a pilot period to end December 10, 2010, for a proposed rule change
submitted by the Exchange, together with related rule changes of the
BATS Exchange, Inc., Chicago Board Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc.,
International Securities Exchange LLC, The NASDAQ Stock Market LLC
(``NASDAQ''), New York Stock Exchange LLC (``NYSE''), NYSE Amex LLC
(``NYSE Amex''), NYSE Arca, Inc. (``NYSE Arca''), and National Stock
Exchange, Inc. (collectively, the ``Exchanges''), to pause trading
during periods of extraordinary market volatility in S&P 500 stocks.\3\
The rules require the Listing Markets \4\ to issue five-minute trading
pauses for individual securities for which they are the primary Listing
Market if the transaction price of the security moves ten percent or
more from a price in the preceding five-minute period. The Listing
Markets are required to notify the other Exchanges and market
participants of the imposition of a trading pause by immediately
disseminating a special indicator over the consolidated tape. Under the
rules, once the Listing Market issues a trading pause, the other
Exchanges are required to pause trading in the security on their
markets. On September 10, 2010, the Commission approved the respective
rule filings of the Exchanges to expand application of the pilot to the
Russell 1000[reg] Index and specified Exchange Traded Products.\5\ On
December 7, 2010, the Exchange filed an immediately effective filing to
extend the existing pilot program for four months, so that the pilot
would expire on April 11, 2011.\6\
---------------------------------------------------------------------------

\3\ Securities Exchange Act Release No. 62252 (June 10, 2010),
75 FR 34186 (June 16, 2010) (SR-BX-2010-037).
\4\ The term ``Listing Markets'' refers collectively to NYSE,
NYSE Amex, NYSE Arca, and NASDAQ.
\5\ Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-BX-2010-044).
\6\ Securities Exchange Act Release No. 63527 (December 10,
2010), 75 FR 78781 (December 16, 2010) (SR-BX-2010-088).
---------------------------------------------------------------------------

The Exchange believes that the pilot program has been successful in
reducing the negative impacts of sudden, unanticipated price movements
in the securities covered by the pilot. The Exchange also believes that
an additional four month extension of the pilot is warranted so that it
may continue to assess whether circuit breakers are the best means to
reduce the negative impacts of sudden, unanticipated price movements or
whether alternative mechanisms would be more effective in achieving
this goal. In this regard, the Exchange notes that the Exchanges are
developing a ``limit up/limit down'' mechanism to reduce the negative
impacts of sudden, unanticipated price movements in securities traded
on the Exchanges. As such, the proposed extension may be shorter in
duration should the Exchange adopt a limit up/limit down mechanism to
address extraordinary market volatility. Accordingly, the Exchange is
filing to further extend the pilot program until the earlier of August
11, 2011 or the date on which a limit up/limit down mechanism to
address extraordinary market volatility, if adopted, applies.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of the Securities Exchange Act of 1934 (the ``Act''),\7\ which requires
the rules of an exchange 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 proposed rule change also is
designed to support the principles of Section 11A(a)(1) \8\ of the Act
in that it seeks to assure fair competition among brokers and dealers
and among exchange markets. The Exchange believes that the proposed
rule meets these requirements in that it promotes transparency and
uniformity across markets concerning decisions to pause trading in a
security when there are significant price movements.
---------------------------------------------------------------------------

\7\ 15 U.S.C. 78f(b)(5).
\8\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

Written comments were neither solicited nor received.

[[Page 19823]]

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 if consistent with
the protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). When filing a proposed rule change
pursuant to Rule 19b-4(f)(6) under the Act, an exchange is required
to give 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 Commission notes that the Exchange
has satisfied this requirement.
---------------------------------------------------------------------------

A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\11\
However, Rule 19b-4(f)(6) \12\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay.
---------------------------------------------------------------------------

\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ Id.
---------------------------------------------------------------------------

The Commission has considered the Exchange's request to waive the
30-day operative delay. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest, as it will allow the pilot program to continue
uninterrupted, thereby avoiding the investor confusion that could
result from a temporary interruption in the pilot program.\13\ For this
reason, the Commission designates the proposed rule change to be
operative upon filing.
---------------------------------------------------------------------------

\13\ For the purposes only of waiving the operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
---------------------------------------------------------------------------

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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
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, as amended, 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-2011-018 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-2011-018. 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 offices 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-2011-018, and
should be submitted on or before April 29, 2011.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8376 Filed 4-7-11; 8:45 am]
BILLING CODE 8011-01-P

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