Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Pilot Period for BOX to Receive Inbound Routes of Orders from NOS, 30746-30748 [2011-13038]
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30746
Federal Register / Vol. 76, No. 102 / Thursday, May 26, 2011 / Notices
and mixed lot orders for purposes of
ranking and execution.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),9 in general, and furthers the
objectives of Section 6(b)(5) of the Act,10
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, 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 Exchange does not
believe that the removal of rules
surrounding Odd Lot Dealers will affect
the protection of investors or public
interest because Exchange systems can
process odd lot orders and they are
treated the same as round lot and mixed
lot orders for purposes of ranking and
execution, there is no financial
incentive or requirements to act as an
Odd Lot Dealer, and there currently is
no ETP Holder acting as an Odd Lot
Dealer.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 11 and
Rule 19b–4(f)(6) thereunder.12
9 15
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
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Jkt 223001
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 rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2011–30 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–NYSEArca–2011–30. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has fulfilled this requirement.
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
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–
NYSEArca–2011–30 and should be
submitted on or before June 16, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–13023 Filed 5–25–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64530; File No. SR–BX–
2011–027]
Self-Regulatory Organizations;
NASDAQ OMX BX; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Extending the Pilot
Period for BOX to Receive Inbound
Routes of Orders from NOS
May 20, 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 18,
2011, NASDAQ OMX BX (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
Act,3 which renders the proposal
effective upon filing with the
Commission. 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 submits this proposed
rule change to extend the pilot period of
the Exchange’s prior approval for
Boston Options Exchange (‘‘BOX’’) to
receive inbound routes of certain option
orders from Nasdaq Options Services,
LLC (‘‘NOS’’) through August 16, 2011.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
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Federal Register / Vol. 76, No. 102 / Thursday, May 26, 2011 / Notices
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
Currently, NOS is the approved
outbound routing facility of the
NASDAQ Exchange for NOM, providing
outbound routing from NOM to other
market centers.4 The Exchange and the
NASDAQ Exchange have previously
adopted rules to permit BOX to receive
inbound routes of certain option orders
by NOS in its capacity as an order
routing facility of the NASDAQ
Exchange for NOM.5 The Exchange
specifically has adopted a rule to
prevent potential informational
advantages resulting from the affiliation
between BOX and NOS, as related to
NOS’s authority to route certain orders
from NOM to BOX without checking the
NOM book prior to routing.6 NOS’s
authority to route these orders to BOX
4 NOM Rule Chapter VI, Section 11(c). Under
NOM Rule Chapter VI, Section 11(c): (1) NOM
routes orders in options via NOS, which serves as
the sole ‘‘routing facility’’ of NOM; (2) the sole
function of the routing facility is to route orders in
options to away markets pursuant to NOM rules,
solely on behalf of NOM; (3) NOS is a member of
an unaffiliated self-regulatory organization, which
is the designated examining authority for the
broker-dealer; (4) the routing facility is subject to
regulation as a facility of the NASDAQ Exchange,
including the requirement to file proposed rule
changes under Section 19 of the Act; (5) use of NOS
to route order to other market centers is optional;
(6) NOM must establish and maintain procedures
and internal controls reasonably designed to
adequately restrict the flow of confidential and
proprietary information between the NASDAQ
Exchange and its facilities (including the routing
facility), and any other entity; and (7) the books,
records, premises, officers, directors, agents, and
employees of the routing facility, as a facility of the
NASDAQ Exchange, shall be subject at all times to
inspection and copying by the NASDAQ Exchange
and the Commission.
5 See Securities Exchange Act Release No. 60349
(July 20, 2009), 74 FR 37071 (July 27, 2009) (SR–
BX–2009–035); Securities Exchange Act Release No.
60354 (July 21, 2009), 74 FR 37074 (July 27, 2009)
(SR–NASDAQ–2009–065).
6 See Chapter XXXIX, Section 2(c) of the
Grandfathered Rules of the Exchange.
VerDate Mar<15>2010
20:04 May 25, 2011
Jkt 223001
is subject to a pilot period ending May
18, 2011.7 The Exchange hereby seeks to
extend the previously approved pilot
period (with the attendant obligations
and conditions) for an additional 90
days, through August 16, 2011.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,8
in general, and with Section 6(b)(5) of
the Act,9 in particular, in that the
proposal is designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, 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.
Specifically, the proposed rule change
will allow BOX to continue receiving
inbound routes of equities orders from
NOS, acting in its capacity as a facility
of the NASDAQ Exchange, in a manner
consistent with prior approvals and
established protections. The Exchange
believes that extending the previously
approved pilot period for sixty days is
a sufficient length to permit both the
Exchange and the Commission to assess
the impact of the Exchange’s authority
to permit BOX to receive direct inbound
routes of certain option orders via NOS
(including the attendant obligations and
conditions).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition 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
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
7 See Securities Exchange Act Release No. 63364
(November 23, 2010), 75 FR 74121 (November 30,
2010) (SR–BX–2010–078).
8 15 U.S.C. 78f.
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
30747
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A)10 of the Act and
Rule 19b–4(f)(6) thereunder.11
A proposed rule change filed under
19b–4(f)(6) normally may not become
operative prior to 30 days after the date
of filing.12 However, Rule 19b–
4(f)(6)(iii) 13 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay. The Exchange notes that the
proposal will allow BOX to continue
receiving inbound routes of equities
orders from NOS, in a manner
consistent with prior approvals and
established protections, while also
permitting the Exchange and the
Commission to assess the impact of the
pilot.14 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
pilot period to be extended without
undue delay through August 16, 2011.
For this reason, the Commission
designates the proposed rule change to
be operative upon filing with the
Commission.15
At any time within 60 days of the
filing of such 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,
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
12 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. The Exchange has satisfied this fiveday pre-filing requirement.
13 Id.
14 See supra Section II.A.2.
15 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).
11 17
E:\FR\FM\26MYN1.SGM
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30748
Federal Register / Vol. 76, No. 102 / Thursday, May 26, 2011 / Notices
SMALL BUSINESS ADMINISTRATION
SMALL BUSINESS ADMINISTRATION
Reporting and Recordkeeping
Requirements Under OMB Review
[Disaster Declarations #12597 and #12598]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2011–027 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
AGENCY:
Small Business Administration.
ACTION: Notice of Reporting
Requirements Submitted for OMB
Review.
Under the provisions of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35), agencies are required to
submit proposed reporting and
Paper Comments
recordkeeping requirements to OMB for
• Send paper comments in triplicate
review and approval, and to publish a
to Elizabeth M. Murphy, Secretary,
notice in the Federal Register notifying
Securities and Exchange Commission,
the public that the agency has made
100 F Street, NE., Washington, DC
such a submission.
20549–1090.
DATES: Submit comments on or before
All submissions should refer to File
June 27, 2011. If you intend to comment
Number SR–BX–2011–027. This file
but cannot prepare comments promptly,
number should be included on the
please advise the OMB Reviewer and
subject line if e-mail is used. To help the the Agency Clearance Officer before the
Commission process and review your
deadline.
comments more efficiently, please use
Copies: Request for clearance (OMB
only one method. The Commission will 83–1), supporting statement, and other
post all comments on the Commission’s documents submitted to OMB for
Internet Web site (https://www.sec.gov/
review may be obtained from the
rules/sro.shtml). Copies of the
Agency Clearance Officer.
submission, all subsequent
ADDRESSES: Address all comments
amendments, all written statements
concerning this notice to: Agency
with respect to the proposed rule
Clearance Officer, Jacqueline White,
change that are filed with the
Small Business Administration, 409 3rd
Commission, and all written
Street, SW., 5th Floor, Washington, DC
communications relating to the
20416; and OMB Reviewer, Office of
proposed rule change between the
Commission and any person, other than Information and Regulatory Affairs,
Office of Management and Budget, New
those that may be withheld from the
Executive Office Building, Washington,
public in accordance with the
DC 20503.
provisions of 5 U.S.C. 552, will be
FOR FURTHER INFORMATION CONTACT:
available for Web site viewing and
Jacqueline White, Agency Clearance
printing in the Commission’s Public
Officer, (202) 205–7044.
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
SUPPLEMENTARY INFORMATION:
business days between the hours of 10
Title: SBA Application for Certificate
a.m. and 3 p.m. Copies of the filing also of Competency.
will be available for inspection and
Form No: 1531.
copying at the principal office of the
Frequency: On Occasion.
Exchange. All comments received will
Description of Respondents: Prime
be posted without change; the
Government Contractors.
Commission does not edit personal
Responses: 275.
identifying information from
Annual Burden: 2,200.
submissions. You should submit only
information that you wish to make
Title: Impact of Training Programs.
available publicly. All submissions
Form No: N/A.
should refer to File Number SR–BX–
Frequency: On Occasion.
2011–027 and should be submitted on
Description of Respondents: Small
or before June 16, 2011.
Business owners and potential small
For the Commission, by the Division of
business owners from throughout the
Trading and Markets, pursuant to delegated
U.S. and the territories.
authority.16
Responses: 30,000.
Cathy H. Ahn,
Annual Burden: 6,000.
SUMMARY:
Deputy Secretary.
[FR Doc. 2011–13038 Filed 5–25–11; 8:45 am]
BILLING CODE 8011–01–P
Jacqueline White,
Chief, Administrative Information Branch.
[FR Doc. 2011–13085 Filed 5–25–11; 8:45 am]
16 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
20:04 May 25, 2011
BILLING CODE P
Jkt 223001
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
Massachusetts Disaster #MA–00033
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the Commonwealth of Massachusetts
dated 05/19/2011.
Incident: Apartment Building Fire.
Incident Period: 04/30/2011.
Effective Date: 05/19/2011.
Physical Loan Application Deadline
Date: 07/18/2011.
Economic Injury (Eidl) Loan
Application Deadline Date: 02/20/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties:
Hampden.
Contiguous Counties:
Massachusetts: Berkshire, Hampshire,
Worcester.
Connecticut: Hartford, Litchfield,
Tolland.
SUMMARY:
The Interest Rates are:
Percent
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
E:\FR\FM\26MYN1.SGM
26MYN1
5.375
2.688
6.000
4.000
3.250
3.000
4.000
]]>Agencies
[Federal Register Volume 76, Number 102 (Thursday, May 26, 2011)]
[Notices]
[Pages 30746-30748]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13038]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64530; File No. SR-BX-2011-027]
Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Extending the
Pilot Period for BOX to Receive Inbound Routes of Orders from NOS
May 20, 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 18, 2011, NASDAQ OMX BX (the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange has designated the proposed rule
change as constituting a non-controversial rule change under Rule 19b-
4(f)(6) under the Act,\3\ which renders the proposal effective upon
filing with the Commission. 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.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange submits this proposed rule change to extend the pilot
period of the Exchange's prior approval for Boston Options Exchange
(``BOX'') to receive inbound routes of certain option orders from
Nasdaq Options Services, LLC (``NOS'') through August 16, 2011.
[[Page 30747]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Currently, NOS is the approved outbound routing facility of the
NASDAQ Exchange for NOM, providing outbound routing from NOM to other
market centers.\4\ The Exchange and the NASDAQ Exchange have previously
adopted rules to permit BOX to receive inbound routes of certain option
orders by NOS in its capacity as an order routing facility of the
NASDAQ Exchange for NOM.\5\ The Exchange specifically has adopted a
rule to prevent potential informational advantages resulting from the
affiliation between BOX and NOS, as related to NOS's authority to route
certain orders from NOM to BOX without checking the NOM book prior to
routing.\6\ NOS's authority to route these orders to BOX is subject to
a pilot period ending May 18, 2011.\7\ The Exchange hereby seeks to
extend the previously approved pilot period (with the attendant
obligations and conditions) for an additional 90 days, through August
16, 2011.
---------------------------------------------------------------------------
\4\ NOM Rule Chapter VI, Section 11(c). Under NOM Rule Chapter
VI, Section 11(c): (1) NOM routes orders in options via NOS, which
serves as the sole ``routing facility'' of NOM; (2) the sole
function of the routing facility is to route orders in options to
away markets pursuant to NOM rules, solely on behalf of NOM; (3) NOS
is a member of an unaffiliated self-regulatory organization, which
is the designated examining authority for the broker-dealer; (4) the
routing facility is subject to regulation as a facility of the
NASDAQ Exchange, including the requirement to file proposed rule
changes under Section 19 of the Act; (5) use of NOS to route order
to other market centers is optional; (6) NOM must establish and
maintain procedures and internal controls reasonably designed to
adequately restrict the flow of confidential and proprietary
information between the NASDAQ Exchange and its facilities
(including the routing facility), and any other entity; and (7) the
books, records, premises, officers, directors, agents, and employees
of the routing facility, as a facility of the NASDAQ Exchange, shall
be subject at all times to inspection and copying by the NASDAQ
Exchange and the Commission.
\5\ See Securities Exchange Act Release No. 60349 (July 20,
2009), 74 FR 37071 (July 27, 2009) (SR-BX-2009-035); Securities
Exchange Act Release No. 60354 (July 21, 2009), 74 FR 37074 (July
27, 2009) (SR-NASDAQ-2009-065).
\6\ See Chapter XXXIX, Section 2(c) of the Grandfathered Rules
of the Exchange.
\7\ See Securities Exchange Act Release No. 63364 (November 23,
2010), 75 FR 74121 (November 30, 2010) (SR-BX-2010-078).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\8\ in general, and with
Section 6(b)(5) of the Act,\9\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Specifically,
the proposed rule change will allow BOX to continue receiving inbound
routes of equities orders from NOS, acting in its capacity as a
facility of the NASDAQ Exchange, in a manner consistent with prior
approvals and established protections. The Exchange believes that
extending the previously approved pilot period for sixty days is a
sufficient length to permit both the Exchange and the Commission to
assess the impact of the Exchange's authority to permit BOX to receive
direct inbound routes of certain option orders via NOS (including the
attendant obligations and conditions).
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A)\10\ of the Act and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\12\
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Exchange notes that
the proposal will allow BOX to continue receiving inbound routes of
equities orders from NOS, in a manner consistent with prior approvals
and established protections, while also permitting the Exchange and the
Commission to assess the impact of the pilot.\14\ 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 pilot period to be extended without undue delay through
August 16, 2011. For this reason, the Commission designates the
proposed rule change to be operative upon filing with the
Commission.\15\
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\12\ 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.
The Exchange has satisfied this five-day pre-filing requirement.
\13\ Id.
\14\ See supra Section II.A.2.
\15\ 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 such 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,
[[Page 30748]]
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-BX-2011-027 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BX-2011-027. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2011-027 and should be
submitted on or before June 16, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13038 Filed 5-25-11; 8:45 am]
BILLING CODE 8011-01-P
