Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule To Amend EDGX Rule 11.9, 28491-28493 [2011-11972]

Download as PDF Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Notices Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–64465; File No. SR–EDGX– 2011–15] • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–EDGA–2011–16 on the subject line. Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule To Amend EDGX Rule 11.9 May 11, 2011. Emcdonald on DSK2BSOYB1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the Paper Comments ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 5, • Send paper comments in triplicate 2011, the EDGX Exchange, Inc. (the to Elizabeth M. Murphy, Secretary, ‘‘Exchange’’ or the ‘‘EDGX’’) filed with Securities and Exchange Commission, the Securities and Exchange 100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the 20549–1090. proposed rule change as described in Items I and II below, which items have All submissions should refer to File been prepared by the self-regulatory Number SR–EDGA–2011–16. This file organization. The Commission is number should be included on the subject line if e-mail is used. To help the publishing this notice to solicit comments on the proposed rule change Commission process and review your from interested persons. comments more efficiently, please use only one method. The Commission will I. Self-Regulatory Organization’s post all comments on the Commission’s Statement of the Terms of Substance of the Proposed Rule Change Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the The Exchange proposes to introduce submission, all subsequent an additional routing option to Rule amendments, all written statements 11.9 and amend existing routing with respect to the proposed rule options. The text of the proposed rule change is available on the Exchange’s change that are filed with the Web site at http://www.directedge.com, Commission, and all written at the Exchange’s principal office, and at communications relating to the the Commission’s Public Reference proposed rule change between the Commission and any person, other than Room. those that may be withheld from the II. Self-Regulatory Organization’s public in accordance with the Statement of the Purpose of, and provisions of 5 U.S.C. 552, will be Statutory Basis for, the Proposed Rule available for Web site viewing and Change printing in the Commission’s Public In its filing with the Commission, the Reference Room on official business Exchange included statements days between the hours of 10 a.m. and concerning the purpose of, and basis for, 3 p.m. Copies of such filing also will be the proposed rule change and discussed available for inspection and copying at any comments it received on the the principal office of the Exchange. All proposed rule change. The text of these comments received will be posted statements may be examined at the without change; the Commission does places specified in Item IV below. The not edit personal identifying self-regulatory organization has information from submissions. You prepared summaries, set forth in should submit only information that Sections A, B and C below, of the most you wish to make available publicly. All significant aspects of such statements. submissions should refer to File A. Self-Regulatory Organization’s Number SR–EDGA–2011–16 and should Statement of the Purpose of, and be submitted on or before June 7, 2011. Statutory Basis for, the Proposed Rule For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–11973 Filed 5–16–11; 8:45 am] Change 1. Purpose The Exchange’s current list of routing options are codified in Rule 11.9(b)(3). In this filing, the Exchange proposes to amend Rule 11.9(b)(3) to add one new BILLING CODE 8011–01–P 1 15 11 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:21 May 16, 2011 2 17 Jkt 223001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00078 Fmt 4703 additional strategy and amend other ones. In Rule 11.9(b)(3), the Exchange describes that its system (‘‘System’’) provides a variety of routing options. Routing options may be combined with all available order types and times-inforce, with the exception of order types and times-in-force whose terms are inconsistent with the terms of a particular routing option. The System will consider the quotations only of accessible markets. The term ‘‘System routing table’’ refers to the proprietary process for determining the specific trading venues to which the System routes orders and the order in which it routes them. The Exchange reserves the right to maintain a different System routing table for different routing options and to modify the System routing table at any time without notice. The new System routing options are described in more detail below. The Exchange also proposes to amend the descriptions in Rules 11.9(b)(3)(b) (ROUD), 11.9(b)(3)(l) (IOCX), and 11.9(b)(3)(m) (IOCT) to modify the routing strategies such that if shares remain unexecuted after routing, they are posted on the book, unless otherwise instructed by the User. The Exchange proposes to amend the description of the routing strategies listed in Rule 11.9(b)(3)(c) to state that if shares remain unexecuted after routing, they are posted on the book, unless otherwise instructed by the User.3 The same revision is also proposed to other routing strategies that currently cancel back to the User if shares remain unexecuted after routing. These include Rules 11.9(b)(3)(e) (ROBA), 11.9(b)(3)(f) (ROBX), 11.9(b)(3)(g) (ROBY) and 11.9(b)(3)(k) (ROPA). The Exchange also proposes to amend the descriptions of the IOCX and IOCT routing strategies in Rules 11.9(b)(3)(l)– (m) to describe that for each strategy, routed orders are sent, as an immediate or cancel (IOC) order, to EDGA. The IOC designation pertains only to the routed order. If shares remain unexecuted after routing, the order returns to its original parent order without the IOC designation and it posts to the book, unless otherwise instructed by the User. The Exchange also proposes to amend Rules 11.9(b)(3)(e) (ROBA), (b)(3)(f) (ROBX), (b)(3)(g) (ROBY), (b)(3)(k) (ROPA), (b)(3)(l)–(m) (IOCX/IOCT) to move the placement of the text of ‘‘immediate or cancel order’’ within these descriptions to clarify this point. The Exchange also proposes to introduce the SWPC routing strategy and add it to proposed Rule 3 As Sfmt 4703 28491 E:\FR\FM\17MYN1.SGM defined in Rule 1.5(cc). 17MYN1 28492 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Notices 11.9(b)(3)(q). SWPC is a routing option under which an order checks the System for available shares and then is sent to only Protected Quotations and only for displayed size. To the extent that any portion of the order is unexecuted, the remainder is posted on the book at the order’s limit price. The entire SWPC order will not be cancelled back to the User immediately if at the time of entry there is an insufficient share quantity in the SWPC order to fulfill the displayed size of all Protected Quotations. The Exchange believes that the proposed introduction of the SWPC routing option will provide market participants with greater flexibility in routing orders consistent with Regulation NMS. This proposed rule change is similar to NASDAQ Rule 4758(a)(1)(A)(vi) (‘‘NASDAQ’s ‘‘MOPP’’ strategy) and BATS Exchange, Inc. Rule 11.13(a)(3)(D) (‘‘Parallel T’’).4 The Exchange believes that the proposed introduction of this routing option, described above, will provide market participants with greater flexibility in routing orders, without having to develop their own complicated routing strategies. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 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 change to introduce the routing option described above will provide market participants with greater flexibility in routing orders without developing complicated order routing strategies on their own. 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. Emcdonald on DSK2BSOYB1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others VerDate Mar<15>2010 16:21 May 16, 2011 Jkt 223001 investors, or otherwise in furtherance of the purposes of the Act. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action IV. Solicitation of Comments Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 6 and Rule 19b– 4(f)(6)(iii) thereunder.7 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.8 However, Rule 19b– 4(f)(6) 9 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 so that the proposal may become operative upon filing, as the Exchange would like to make the additional strategies available on or about May 16, 2011. The Exchange notes that waiver of this requirement will allow the Exchange to immediately offer Exchange users new routing strategies, and the inability to immediately offer the new routing strategies would put the Exchange at a competitive disadvantage. 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 allow the new routing strategies to become immediately available to Exchange users. For this reason, the Commission designates the proposed rule change to be operative upon filing with the Commission.10 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 6 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. EDGX has satisfied this requirement. 8 17 CFR 240.19b–4(f)(6)(iii). 9 Id. 10 For the 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). 7 17 The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any 4 See, e.g., NASDAQ Rule 4758, BATS Rule 11.13(a)(3)(D). 5 15 U.S.C. 78f(b)(5). unsolicited written comments from members or other interested parties. PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–EDGX–2011–15 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–EDGX–2011–15. 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 (http://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–EDGX–2011–15 and should be submitted on or before June 7, 2011. E:\FR\FM\17MYN1.SGM 17MYN1 Federal Register / Vol. 76, No. 95 / Tuesday, May 17, 2011 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–11972 Filed 5–16–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64470; File No. SR– NYSEArca–2011–23] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To List and Trade Shares of ProShares Short VIX Short-Term Futures ETF, ProShares Short VIX MidTerm Futures ETF, ProShares Ultra VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-Term Futures ETF, ProShares UltraShort VIX Short-Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures ETF Under NYSE Arca Equities Rule 8.200, Commentary .02 May 11, 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 April 28, 2011, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. Emcdonald on DSK2BSOYB1PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to list and trade shares of ProShares Short VIX Short-Term Futures ETF, ProShares Short VIX Mid-Term Futures ETF, ProShares Ultra VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-Term Futures ETF, ProShares UltraShort VIX Short-Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures ETF under NYSE Arca Equities Rule 8.200, Commentary .02. The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and http:// www.nyse.com. 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 17:27 May 16, 2011 Jkt 223001 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading of Trust Issued Receipts (‘‘TIRs’’) either by listing or pursuant to unlisted trading privileges (‘‘UTP’’).3 The Exchange proposes to list and trade shares (‘‘Shares’’) of ProShares Short VIX ShortTerm Futures ETF, ProShares Short VIX Mid-Term Futures ETF (the ‘‘Short Funds’’), ProShares Ultra VIX ShortTerm Futures ETF, ProShares Ultra VIX Mid-Term Futures ETF (the ‘‘Ultra Funds’’), ProShares UltraShort VIX Short-Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures ETF (the ‘‘UltraShort Funds’’ and, together with the Short and Ultra Funds, the ‘‘Funds’’) under NYSE Arca Equities Rule 8.200, Commentary .02.4 The Funds seek, on a daily basis, to provide investment results (before fees and expenses) that correspond to the inverse 3 Commentary .02 to NYSE Arca Equities Rule 8.200 applies to TIRs that invest in ‘‘Financial Instruments.’’ The term ‘‘Financial Instruments,’’ as defined in Commentary .02(b)(4) to NYSE Arca Equities Rule 8.200, means any combination of investments, including cash; securities; options on securities and indices; futures contracts; options on futures contracts; forward contracts; equity caps, collars and floors; and swap agreements. 4 The Commission previously has approved listing on the Exchange under Commentary .02 to NYSE Arca Equities Rule 8.200 of certain securities issuers. See, e.g., Securities Exchange Act Release Nos. 58457 (September 3, 2008), 73 FR 52711 (September 10, 2008) (SR–NYSEArca–2008–91) (order granting accelerated approval to list on NYSE Arca of 14 ProShares funds); 63610 (December 27, 2010), 76 FR 199 (January 3, 2011) (SR–NYSEArca– 2010–101) (order approving listing and trading of the ProShares VIX Short-Term Futures ETF and the ProShares VIX Mid-Term Futures ETF). See also Securities Exchange Act Release No. 58968 (November 17, 2008), 73 FR 71082 (November 24, 2008) (SR–NYSEArca–2008–111) (order granting accelerated approval of proposed rule change to amend NYSE Arca Equities Rule 5.2(j)(6)(v) to add CBOE Volatility Index (VIX) Futures to the definition of Futures Reference Asset). PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 28493 of the daily performance, a multiple of the daily performance or an inverse multiple of the daily performance of a benchmark that seeks to offer exposure to market volatility through publicly traded futures markets. The benchmark for ProShares Short VIX Short-Term Futures ETF, ProShares Ultra VIX ShortTerm Futures ETF, and ProShares UltraShort VIX Short-Term Futures ETF is the S&P 500 VIX Short-Term Futures Index, and the benchmark for ProShares Short VIX Mid-Term Futures ETF, ProShares Ultra VIX Mid-Term Futures ETF, and ProShares UltraShort VIX Mid-Term Futures ETF is the S&P 500 VIX Mid-Term Futures Index (each, an ‘‘Index,’’ and, collectively, the ‘‘Indexes’’).5 The Funds will take long (in the case of the Ultra Funds) and short (in the case of the Short and UltraShort Funds) positions in futures contracts based on the Chicago Board Options Exchange (‘‘CBOE’’) Volatility Index (‘‘VIX’’) and, under limited circumstances, swap agreements (as further described herein), to pursue their respective investment objectives. Each Fund also may invest in cash or cash equivalents such as U.S. Treasury securities or other high credit quality short-term fixed-income or similar securities (including shares of money market funds, bank deposits, bank money market accounts, certain variable rate-demand notes and repurchase agreements collateralized by government securities) that may serve as collateral for the futures contracts and swap agreements. Each Fund acquires exposure through VIX futures contracts traded on the CBOE Futures Exchange (‘‘CFE’’) (‘‘VIX Futures Contracts’’) such that each Fund has exposure intended to approximate the inverse of the daily performance, a multiple of the daily performance or an inverse multiple of the daily performance of its respective Index at the time of the net asset value (‘‘NAV’’) calculation.6 ProShare Capital Management LLC (‘‘Sponsor’’), a Maryland limited liability company, serves as the Sponsor of ProShares Trust II (the ‘‘Trust’’). The Sponsor is a commodity pool operator and commodity trading advisor.7 Brown 5 Standard & Poor’s Financial Services LLC, the index sponsor with respect to the Indexes, is not a broker-dealer and has implemented procedures designed to prevent the use and dissemination of material, non-public information regarding the Indexes. 6 Terms relating to the Funds, the Shares and the Indexes referred to, but not defined, herein are defined in the Registration Statement. 7 The Funds have filed a registration statement on Form S–3 under the Securities Act of 1933. See Post-Effective Amendment No. 4 dated April 13, E:\FR\FM\17MYN1.SGM Continued 17MYN1

Agencies

[Federal Register Volume 76, Number 95 (Tuesday, May 17, 2011)]
[Notices]
[Pages 28491-28493]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11972]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64465; File No. SR-EDGX-2011-15]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule To Amend EDGX Rule 
11.9

May 11, 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 EDGX Exchange, Inc. (the ``Exchange'' or the 
``EDGX'') 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to introduce an additional routing option to 
Rule 11.9 and amend existing routing options. The text of the proposed 
rule change is available on the Exchange's Web site at http://www.directedge.com, at the Exchange's principal office, 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 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 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's current list of routing options are codified in Rule 
11.9(b)(3). In this filing, the Exchange proposes to amend Rule 
11.9(b)(3) to add one new additional strategy and amend other ones.
    In Rule 11.9(b)(3), the Exchange describes that its system 
(``System'') provides a variety of routing options. Routing options may 
be combined with all available order types and times-in-force, with the 
exception of order types and times-in-force whose terms are 
inconsistent with the terms of a particular routing option. The System 
will consider the quotations only of accessible markets. The term 
``System routing table'' refers to the proprietary process for 
determining the specific trading venues to which the System routes 
orders and the order in which it routes them. The Exchange reserves the 
right to maintain a different System routing table for different 
routing options and to modify the System routing table at any time 
without notice. The new System routing options are described in more 
detail below.
    The Exchange also proposes to amend the descriptions in Rules 
11.9(b)(3)(b) (ROUD), 11.9(b)(3)(l) (IOCX), and 11.9(b)(3)(m) (IOCT) to 
modify the routing strategies such that if shares remain unexecuted 
after routing, they are posted on the book, unless otherwise instructed 
by the User. The Exchange proposes to amend the description of the 
routing strategies listed in Rule 11.9(b)(3)(c) to state that if shares 
remain unexecuted after routing, they are posted on the book, unless 
otherwise instructed by the User.\3\
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    \3\ As defined in Rule 1.5(cc).
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    The same revision is also proposed to other routing strategies that 
currently cancel back to the User if shares remain unexecuted after 
routing. These include Rules 11.9(b)(3)(e) (ROBA), 11.9(b)(3)(f) 
(ROBX), 11.9(b)(3)(g) (ROBY) and 11.9(b)(3)(k) (ROPA).
    The Exchange also proposes to amend the descriptions of the IOCX 
and IOCT routing strategies in Rules 11.9(b)(3)(l)-(m) to describe that 
for each strategy, routed orders are sent, as an immediate or cancel 
(IOC) order, to EDGA. The IOC designation pertains only to the routed 
order. If shares remain unexecuted after routing, the order returns to 
its original parent order without the IOC designation and it posts to 
the book, unless otherwise instructed by the User. The Exchange also 
proposes to amend Rules 11.9(b)(3)(e) (ROBA), (b)(3)(f) (ROBX), 
(b)(3)(g) (ROBY), (b)(3)(k) (ROPA), (b)(3)(l)-(m) (IOCX/IOCT) to move 
the placement of the text of ``immediate or cancel order'' within these 
descriptions to clarify this point.
    The Exchange also proposes to introduce the SWPC routing strategy 
and add it to proposed Rule

[[Page 28492]]

11.9(b)(3)(q). SWPC is a routing option under which an order checks the 
System for available shares and then is sent to only Protected 
Quotations and only for displayed size. To the extent that any portion 
of the order is unexecuted, the remainder is posted on the book at the 
order's limit price. The entire SWPC order will not be cancelled back 
to the User immediately if at the time of entry there is an 
insufficient share quantity in the SWPC order to fulfill the displayed 
size of all Protected Quotations. The Exchange believes that the 
proposed introduction of the SWPC routing option will provide market 
participants with greater flexibility in routing orders consistent with 
Regulation NMS. This proposed rule change is similar to NASDAQ Rule 
4758(a)(1)(A)(vi) (``NASDAQ's ``MOPP'' strategy) and BATS Exchange, 
Inc. Rule 11.13(a)(3)(D) (``Parallel T'').\4\
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    \4\ See, e.g., NASDAQ Rule 4758, BATS Rule 11.13(a)(3)(D).
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    The Exchange believes that the proposed introduction of this 
routing option, described above, will provide market participants with 
greater flexibility in routing orders, without having to develop their 
own complicated routing strategies.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act,\5\ 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 change to introduce the routing option 
described above will provide market participants with greater 
flexibility in routing orders without developing complicated order 
routing strategies on their own.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)(5).
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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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6)(iii) thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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. 
EDGX has satisfied this requirement.
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    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.\8\ 
However, Rule 19b-4(f)(6) \9\ 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 so that the proposal may 
become operative upon filing, as the Exchange would like to make the 
additional strategies available on or about May 16, 2011. The Exchange 
notes that waiver of this requirement will allow the Exchange to 
immediately offer Exchange users new routing strategies, and the 
inability to immediately offer the new routing strategies would put the 
Exchange at a competitive disadvantage. 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 allow the 
new routing strategies to become immediately available to Exchange 
users. For this reason, the Commission designates the proposed rule 
change to be operative upon filing with the Commission.\10\
---------------------------------------------------------------------------

    \8\ 17 CFR 240.19b-4(f)(6)(iii).
    \9\ Id.
    \10\ For the 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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    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.

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-EDGX-2011-15 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-EDGX-2011-15. 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 (http://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-
EDGX-2011-15 and should be submitted on or before June 7, 2011.


[[Page 28493]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-11972 Filed 5-16-11; 8:45 am]
BILLING CODE 8011-01-P