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]
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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 (https://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 (https://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 https://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).
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16:21 May 16, 2011
2 17
Jkt 223001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00078
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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
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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
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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.
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Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–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 https://
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
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17:27 May 16, 2011
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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).
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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
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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 https://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\
---------------------------------------------------------------------------
\3\ As defined in Rule 1.5(cc).
---------------------------------------------------------------------------
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.
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\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\
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\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 (https://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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
the Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
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
