Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change by International Securities Exchange to Amend ISE Rule 2102, 27677-27678 [2011-11613]
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Federal Register / Vol. 76, No. 92 / Thursday, May 12, 2011 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2011–21 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSE–2011–21. 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.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–NYSE–2011–21 and should
be submitted on or before June 2, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–11611 Filed 5–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64423; File No. SR–ISE–
2011–28]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing of Proposed Rule
Change by International Securities
Exchange to Amend ISE Rule 2102
May 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 5,
2011, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) 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 selfregulatory 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
Rule 2102 (Hours of Business) to expand
the applicability of Trading Pauses to
cover all NMS Stocks.
The text of the proposed rule change
is available on the Exchange’s Internet
Web site at https://www.ise.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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
The Exchange proposes to amend ISE
Rule 2102 to expand the applicability of
1 15
10 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
14:49 May 11, 2011
2 17
Jkt 223001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00045
Fmt 4703
Sfmt 4703
27677
Trading Pauses to cover all NMS
Stocks.3 Initial amendments to ISE Rule
2102 to allow the Exchange to pause
trading in an individual stock when the
primary listing market for such stock
issues a trading pause were approved by
the Commission on June 10, 2010 on a
pilot basis.4 The Exchange noted in its
filing to adopt the initial amendments to
Rule 2102 that during the pilot period
it would continue to assess whether
additional securities need to be added
and whether the parameters of the
trading pause would need to be
modified to accommodate trading
characteristics of different securities. On
September 10, 2010, ISE Rule 2102 was
amended again to expand the pilot rule
to apply to the Russell 1000® Index and
other specified exchange traded
products.5
The Exchange has continued to assess
whether additional securities need to be
added to the pilot and whether the
parameters of Rule 2102 need to be
modified to accommodate trading
characteristics of different securities. In
consultation with other markets and the
staff of the Commission, the Exchange
now proposes to include all NMS Stocks
within the pilot that are not already
included therein and to apply a wider
Threshold Move percentage to the
newly added securities. In particular,
the proposed additional stocks are those
not currently included in the S&P 500
Index, Russell 1000 Index, or specified
ETPs, and therefore are more likely to be
less liquid securities or securities with
lower trading volumes. Accordingly, the
Exchange believes that broader
Threshold Move percentages would be
appropriate. Similarly, because
leveraged ETPs trade at a ratio against
the associated index, a broader
Threshold Move percentage would also
be appropriate for leveraged ETPs. The
Exchange proposes that the Threshold
Move required to trigger a Trading
Pause for the proposed new securities
be 30% or more for such securities
priced at $1 or higher and 50% or more
3 See
ISE Rule 2100(c)(13).
Securities Exchange Act Release Nos. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
ISE–2010–48) (Approving the pilot with an
expiration date of December 10, 2010); 63506
(December 9, 2010), 75 FR 78301 (December 15,
2010) (SR–ISE–2010–117) (Extending the date by
which the pilot rule will expire to April 11, 2011);
64193 (April 5, 2011), 76 FR 20062 (April 11, 2011)
(SR–ISE–2011–17) (Extending the date by which the
pilot rule will expire to 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).
5 See Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–ISE–2010–66).
4 See
E:\FR\FM\12MYN1.SGM
12MYN1
27678
Federal Register / Vol. 76, No. 92 / Thursday, May 12, 2011 / Notices
for such securities priced less than $1.6
The Exchange believes that this
threshold differentiation is appropriate
because lower priced securities tend to
be more volatile, which amounts to a
higher percentage move than a similar
price change in a higher-priced stock.
The Exchange is not proposing a change
to the Threshold Move percentage
applicable to securities currently
included within the current pilot.
Accordingly, with respect to
expanding the applicability of Trading
Pauses to include all NMS Stocks, the
Exchange is proposing to amend Section
(f)(4) of ISE Rule 2102 to reflect this
change. With respect to widening the
Threshold Move percentage for the
newly added securities, the Exchange is
not proposing a change to its rule text
because the ISE is not a primary listing
market for equity securities and is
therefore not responsible for calculating
the Threshold Moves to trigger a
Trading Pause. The current rule text
provides that the Exchange shall
immediately institute a Trading Pause
anytime an exchange-listed security
moves by 10% or more within a fiveminute period, as calculated by the
primary listing market, therefore the
widening of the Threshold Move
percentages need not be reflected in the
ISE’s rule text as the newly proposed
process conforms with the current rule
text.
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
2. Statutory Basis
The statutory basis for the proposed
rule change is Section 6(b)(5) of 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 uniformity across markets
concerning decisions to pause trading in
a security when there are significant
price movements.
6 Under the proposed rule change, the price of a
security would be based on the closing price on the
previous trading day, or, if no closing price exists,
the last sale reported to the Consolidate Tape on the
previous trading day.
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78k–1(a)(1).
VerDate Mar<15>2010
14:49 May 11, 2011
Jkt 223001
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
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
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
publicly available. All submissions
should refer to File Number SR–ISE–
2011–28 and should be submitted on or
before June 2, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–11613 Filed 5–11–11; 8:45 am]
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
BILLING CODE 8011–01–P
Electronic Comments
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change To
Amend Rule 4120(a)(11) To Include
Additional Securities in the Pilot by
Which Such Rule Operates and Amend
Rule 4613(a) To Simplify Certain
Aspects of the Text While Also
Conforming Certain of the Percentages
Thereunder to the Proposed Changes
to Rule 4120(a)(11)
• 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–ISE–2011–28 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–ISE–2011–28. 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
PO 00000
Frm 00046
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64426; File No. SR–
NASDAQ–2011–067]
May 6, 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 May 4,
2011, The NASDAQ Stock Market LLC
(‘‘Exchange’’), filed with the Securities
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\12MYN1.SGM
12MYN1
]]>Agencies
[Federal Register Volume 76, Number 92 (Thursday, May 12, 2011)]
[Notices]
[Pages 27677-27678]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11613]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64423; File No. SR-ISE-2011-28]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing of Proposed Rule Change by International
Securities Exchange to Amend ISE Rule 2102
May 6, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 5, 2011, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') 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 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 Rule 2102 (Hours of Business) to
expand the applicability of Trading Pauses to cover all NMS Stocks.
The text of the proposed rule change is available on the Exchange's
Internet Web site at https://www.ise.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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
The Exchange proposes to amend ISE Rule 2102 to expand the
applicability of Trading Pauses to cover all NMS Stocks.\3\ Initial
amendments to ISE Rule 2102 to allow the Exchange to pause trading in
an individual stock when the primary listing market for such stock
issues a trading pause were approved by the Commission on June 10, 2010
on a pilot basis.\4\ The Exchange noted in its filing to adopt the
initial amendments to Rule 2102 that during the pilot period it would
continue to assess whether additional securities need to be added and
whether the parameters of the trading pause would need to be modified
to accommodate trading characteristics of different securities. On
September 10, 2010, ISE Rule 2102 was amended again to expand the pilot
rule to apply to the Russell 1000[reg] Index and other specified
exchange traded products.\5\
---------------------------------------------------------------------------
\3\ See ISE Rule 2100(c)(13).
\4\ See Securities Exchange Act Release Nos. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-ISE-2010-48) (Approving the
pilot with an expiration date of December 10, 2010); 63506 (December
9, 2010), 75 FR 78301 (December 15, 2010) (SR-ISE-2010-117)
(Extending the date by which the pilot rule will expire to April 11,
2011); 64193 (April 5, 2011), 76 FR 20062 (April 11, 2011) (SR-ISE-
2011-17) (Extending the date by which the pilot rule will expire to
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).
\5\ See Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-ISE-2010-66).
---------------------------------------------------------------------------
The Exchange has continued to assess whether additional securities
need to be added to the pilot and whether the parameters of Rule 2102
need to be modified to accommodate trading characteristics of different
securities. In consultation with other markets and the staff of the
Commission, the Exchange now proposes to include all NMS Stocks within
the pilot that are not already included therein and to apply a wider
Threshold Move percentage to the newly added securities. In particular,
the proposed additional stocks are those not currently included in the
S&P 500 Index, Russell 1000 Index, or specified ETPs, and therefore are
more likely to be less liquid securities or securities with lower
trading volumes. Accordingly, the Exchange believes that broader
Threshold Move percentages would be appropriate. Similarly, because
leveraged ETPs trade at a ratio against the associated index, a broader
Threshold Move percentage would also be appropriate for leveraged ETPs.
The Exchange proposes that the Threshold Move required to trigger a
Trading Pause for the proposed new securities be 30% or more for such
securities priced at $1 or higher and 50% or more
[[Page 27678]]
for such securities priced less than $1.\6\ The Exchange believes that
this threshold differentiation is appropriate because lower priced
securities tend to be more volatile, which amounts to a higher
percentage move than a similar price change in a higher-priced stock.
The Exchange is not proposing a change to the Threshold Move percentage
applicable to securities currently included within the current pilot.
---------------------------------------------------------------------------
\6\ Under the proposed rule change, the price of a security
would be based on the closing price on the previous trading day, or,
if no closing price exists, the last sale reported to the
Consolidate Tape on the previous trading day.
---------------------------------------------------------------------------
Accordingly, with respect to expanding the applicability of Trading
Pauses to include all NMS Stocks, the Exchange is proposing to amend
Section (f)(4) of ISE Rule 2102 to reflect this change. With respect to
widening the Threshold Move percentage for the newly added securities,
the Exchange is not proposing a change to its rule text because the ISE
is not a primary listing market for equity securities and is therefore
not responsible for calculating the Threshold Moves to trigger a
Trading Pause. The current rule text provides that the Exchange shall
immediately institute a Trading Pause anytime an exchange-listed
security moves by 10% or more within a five-minute period, as
calculated by the primary listing market, therefore the widening of the
Threshold Move percentages need not be reflected in the ISE's rule text
as the newly proposed process conforms with the current rule text.
2. Statutory Basis
The statutory basis for the proposed rule change is Section 6(b)(5)
of 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 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 proposed rule change does not 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
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
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-ISE-2011-28 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-ISE-2011-28. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-ISE-2011-28 and should be
submitted on or before June 2, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-11613 Filed 5-11-11; 8:45 am]
BILLING CODE 8011-01-P
