Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of a Proposal To Permit the Exchange To List Series With Additional Expiration Months If Such Series Are Listed on Another Exchange, 32383-32385 [2011-13903]

Download as PDF Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.9 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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Cathy H. Ahn, Deputy Secretary. [FR Doc. 2011–13855 Filed 6–3–11; 8:45 am] BILLING CODE 8011–01–P 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 rulecomments@sec.gov. Please include File No. SR–ISE–2011–29 on the subject line. jlentini on DSK4TPTVN1PROD with NOTICES printing in the Commission’s Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the ISE. 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–ISE–2011–29 and should be submitted by June 27, 2011. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64570; File No. SR–BX– 2011–029] Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing and Immediate Effectiveness of a Proposal To Permit the Exchange To List Series With Additional Expiration Months If Such Series Are Listed on Another Exchange May 31, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 Paper Comments (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on May 23, • Send paper comments in triplicate 2011, NASDAQ OMX BX (the to Elizabeth Murphy, Secretary, ‘‘Exchange’’) filed with the Securities Securities and Exchange Commission, and Exchange Commission 100 F Street, NE., Washington, DC (‘‘Commission’’) the proposed rule 20549–1090. change as described in Items I and II All submissions should refer to File below, which Items have been prepared Number SR–ISE–2011–29. This file by the Exchange. The Exchange has number should be included on the designated the proposed rule change as subject line if e-mail is used. To help the constituting a non-controversial rule Commission process and review your change under Rule 19b–4(f)(6) under the comments more efficiently, please use Act,3 which renders the proposal only one method. The Commission will effective upon filing with the post all comments on the Commission’s Commission. The Commission is Internet Web site (http://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written communications relating to the The Exchange proposes to amend the proposed rule change between the Rules of the Boston Options Exchange Commission and any person, other than Group, LLC (‘‘BOX’’) to permit the those that may be withheld from the Exchange to list additional expiration public in accordance with the provisions of 5 U.S.C. 552, will be 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). available for website viewing and 2 17 9 15 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). U.S.C. 78s(b)(3)(A)(ii). VerDate Mar<15>2010 16:06 Jun 03, 2011 Jkt 223001 PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 32383 months if such expiration months are listed on another exchange. The text of the proposed rule change is available at the Exchange’s principal office, at http://www.nasdaqomxbx. cchwallstreet.com, the Commission’s Public Reference Room, and at the Commission’s Web site at http:// www.sec.gov. 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 The purpose of the proposed rule change is to amend the BOX Trading Rules to permit the Exchange to list additional expiration months if such expiration months are listed on another exchange. This filing is based on a filing previously submitted by the International Securities Exchange, LLC.4 Under current Chapter IV, Section 6 of the BOX Trading Rules, the Exchange usually will open four (4) Expiration months for each type of option of a class of options open for trading on BOX: the first two (2) being the two nearest months, regardless of the quarterly cycle on which that class trades; the third and fourth being the next two months of the quarterly cycle previously designated by the Exchange for that specific class. For example, if the Exchange listed in late September a new stock option on a January-April-July-October quarterly cycle, the Exchange would list the two nearest-term months (October and November) and the next two expiration months of the cycle (January and April). Further, when the October series expire, the Exchange would add the December series as the next nearest month. And when the November series expire, the Exchange would add the July series as the next month of the cycle. 4 See Securities Exchange Act Release No. 64343 (April 26, 2011) 76 FR 24546 (May 2, 2011) (SR– ISE–2011–26). E:\FR\FM\06JNN1.SGM 06JNN1 32384 Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices jlentini on DSK4TPTVN1PROD with NOTICES In 2010, the Exchange established a pilot program to add up to two additional expiration months for each class of options opened for trading on BOX (the ‘‘Additional Expiration Months Pilot’’).5 Under the Additional Expiration Months Pilot, the Exchange lists expiration months that are considered ‘‘mid-month.’’ For example, for options classes that have expiration months of October, November, January, and April, the Exchange lists the December series. For options classes that have expiration months of October, November, February and May, the Exchange lists the December and January series. The listing of additional expiration months has been wellreceived by BOX Options Participants and has had a very limited impact on system resources. ISE submitted a similar filing to one submitted by NASDAQ OMX PHLX, Inc. (‘‘PHLX’’).6 PHLX recently submitted a filing to adopt rules that permit it to list an unlimited number of expiration months and series for each class of standard options opened for trading on that exchange. Specifically, PHLX amended its rules so that it can open ‘‘at least one expiration month’’ for each class of standard options open for trading on that exchange. Consequently, while the Exchange is currently restricted to listing a limited number of expiration months that are permissible under its rules and the Additional Expiration Months Pilot, PHLX has the ability to list an unlimited number of expiration months, including those that the Exchange would not be able to currently list under its rules. Indeed, PHLX has listed additional expiration months that no other market, including the Exchange, could list at the time they were added. For example, in February 2011, PHLX listed the October 2011 expiration in Omnicare, Inc. (ticker: OCR). PHLX was able to list that expiration month based on its amended rule. Meanwhile, the Exchange could not list the October 2011 series under Chapter IV, Section 6(a) of the BOX Trading Rules because the standard expiration months for OCR in February are March, April, June, and September. The Exchange also could not list the October 2011 series as part of the Additional Expiration Months Pilot because OCR is not one of the classes 5 See Securities Exchange Act Release No. 63321 (November 16, 2010) 75 FR 71163 (November 22, 2010) (SR–BX–2010–077). 6 See Securities Exchange Act Release No. 63700 (January 11, 2011) 76 FR 2931 (January 18, 2011) (SR–PHLX–2011–04). In its filing, PHLX cites to the Commission’s approval of the NASDAQ Options Market and rules pertaining thereto as the basis for making the change to its rules. VerDate Mar<15>2010 16:06 Jun 03, 2011 Jkt 223001 selected by BOX to participate in the Additional Expiration Months Pilot. As a result, PHLX was the only exchange that listed the October 2011 series in OCR and traded that series without any competition until recently when other options exchanges amended their rules to permit its listing. For competitive reasons, the Exchange now proposes to add new Supplementary Material .09 to its Chapter IV, Section 6 and Supplementary Material .03 to Chapter XIV, Section 10 of the BOX Trading Rules to permit the Exchange to list additional expiration months on options classes opened for trading on BOX if such expiration months are opened for trading on at least one other national securities exchange. This proposed rule change will allow the Exchange to match the listing of expiration months that PHLX, NOM, ISE, or other exchanges list in the event the Exchange is not able to list those expiration months because they do not comport to BOX Trading Rules or the Additional Expiration Months Pilot. BOX notes that the proposed rule change affords additional flexibility in that it will permit listing those additional expiration months that have an actual demand from market participants, thereby potentially reducing the proliferation of classes and series. The Exchange believes the proposed rule change is proper, and indeed necessary, in light of the need to have rules that permit the listing of identical expiration months across exchanges for products that are multiply-listed and fungible with one another. BOX believes that the proposed rule change should encourage competition and be beneficial to traders and market participants by providing them with a means to trade on BOX securities that are listed and traded on other exchanges. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,7 in general, and Section 6(b)(5) of the Act,8 in particular, in that it is designed 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 for a free and open market and a national market system, and in general, to protect investors and the 7 15 8 15 PO 00000 U.S.C. 78f(b). U.S.C. 78f(b)(5). Frm 00030 Fmt 4703 Sfmt 4703 public interest. In particular, the proposed rule change will permit the Exchange to accommodate requests made by BOX Option Participants and other market participants to list the additional expiration months and thus encourage competition without harming investors or the public interest. 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 does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not 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 9 and Rule 19b– (f)(6) thereunder.10 The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because the proposal should promote competition by allowing the Exchange, without undue delay, to list and trade option series that are trading on other options exchanges. Therefore, the Commission designates the proposal operative upon filing.11 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission has waived the five-day prefiling requirement in this case. 11 For 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). 10 17 E:\FR\FM\06JNN1.SGM 06JNN1 Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Cathy H. Ahn, Deputy Secretary. 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: [FR Doc. 2011–13903 Filed 6–3–11; 8:45 am] 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–BX–2011–029 on the subject line. jlentini on DSK4TPTVN1PROD with NOTICES 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. Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Pilot Period To Allow Cabinet Trading To Take Place Below $1 Per Option Contract 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–2011–029. 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, 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– 2011–029 and should be submitted on or before June 27, 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 20, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’ or 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. VerDate Mar<15>2010 16:06 Jun 03, 2011 Jkt 223001 BILLING CODE 8011–01–P 32385 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. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–64571; File No. SR–Phlx– 2011–72] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose May 31, 2011. 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 through December 1, 2011, the pilot program in Rule 1059, Accomodation Transactions, to allow cabinet trading to take place below $1 per option contract, under specified circumstances (the ‘‘pilot program’’). 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 12 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 PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 The purpose is to extend through December 1, 2011, the pilot program in Commentary .02 of Exchange Rule 1059, Accommodation Transactions, which sets forth specific procedures for engaging in cabinet trades.4 Prior to the pilot program, Rule 1059 required that all orders placed in the cabinet were assigned priority based upon the sequence in which such orders were received by the specialist. All closing bids and offers would be submitted to the specialist in writing, and the specialist effected all closing cabinet transactions by matching such orders placed with him. Bids or offers on orders to open for the accounts of customer, firm, specialists and ROTs could be made at $1 per option contract, but such orders could not be placed in and must yield to all orders in the cabinet. Specialists effected all cabinet transactions by matching closing purchase or sale orders which were placed in the cabinet or, provided there was no matching closing purchase or sale order in the cabinet, by matching a closing purchase or sale order in the cabinet with an opening purchase or sale order.5 All cabinet transactions were reported to the Exchange following the close of each business day.6 Any (i) Member, (ii) member organization, or (iii) other person who was a nonmember broker or dealer and who directly or indirectly controlled, was controlled by, or was under common control with, a member or member organization (any such other person being referred to as an affiliated person) could effect any transaction as principal in the over-the-counter market in any class of option contracts listed on the 4 Cabinet or accommodation trading of option contracts is intended to accommodate persons wishing to effect closing transactions in those series of options dealt in on the Exchange for which there is no auction market. 5 Specialists and ROTs are not subject to the requirements of Rule 1014 in respect of orders placed pursuant to this Rule. Also, the provisions of Rule 1033(b) and (c), Rule 1034 and Rule 1038 do not apply to orders placed in the cabinet. Cabinet transactions are not reported on the ticker. 6 See Exchange Rule 1059. E:\FR\FM\06JNN1.SGM 06JNN1

Agencies

[Federal Register Volume 76, Number 108 (Monday, June 6, 2011)]
[Notices]
[Pages 32383-32385]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13903]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64570; File No. SR-BX-2011-029]


Self-Regulatory Organizations; NASDAQ OMX BX; Notice of Filing 
and Immediate Effectiveness of a Proposal To Permit the Exchange To 
List Series With Additional Expiration Months If Such Series Are Listed 
on Another Exchange

May 31, 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 23, 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 proposes to amend the Rules of the Boston Options 
Exchange Group, LLC (``BOX'') to permit the Exchange to list additional 
expiration months if such expiration months are listed on another 
exchange. The text of the proposed rule change is available at the 
Exchange's principal office, at http://www.nasdaqomxbx.cchwallstreet.com, the Commission's Public Reference Room, and at the 
Commission's Web site at http://www.sec.gov.

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
    The purpose of the proposed rule change is to amend the BOX Trading 
Rules to permit the Exchange to list additional expiration months if 
such expiration months are listed on another exchange. This filing is 
based on a filing previously submitted by the International Securities 
Exchange, LLC.\4\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 64343 (April 26, 
2011) 76 FR 24546 (May 2, 2011) (SR-ISE-2011-26).
---------------------------------------------------------------------------

    Under current Chapter IV, Section 6 of the BOX Trading Rules, the 
Exchange usually will open four (4) Expiration months for each type of 
option of a class of options open for trading on BOX: the first two (2) 
being the two nearest months, regardless of the quarterly cycle on 
which that class trades; the third and fourth being the next two months 
of the quarterly cycle previously designated by the Exchange for that 
specific class. For example, if the Exchange listed in late September a 
new stock option on a January-April-July-October quarterly cycle, the 
Exchange would list the two nearest-term months (October and November) 
and the next two expiration months of the cycle (January and April). 
Further, when the October series expire, the Exchange would add the 
December series as the next nearest month. And when the November series 
expire, the Exchange would add the July series as the next month of the 
cycle.

[[Page 32384]]

    In 2010, the Exchange established a pilot program to add up to two 
additional expiration months for each class of options opened for 
trading on BOX (the ``Additional Expiration Months Pilot'').\5\ Under 
the Additional Expiration Months Pilot, the Exchange lists expiration 
months that are considered ``mid-month.'' For example, for options 
classes that have expiration months of October, November, January, and 
April, the Exchange lists the December series. For options classes that 
have expiration months of October, November, February and May, the 
Exchange lists the December and January series. The listing of 
additional expiration months has been well-received by BOX Options 
Participants and has had a very limited impact on system resources.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 63321 (November 16, 
2010) 75 FR 71163 (November 22, 2010) (SR-BX-2010-077).
---------------------------------------------------------------------------

    ISE submitted a similar filing to one submitted by NASDAQ OMX PHLX, 
Inc. (``PHLX'').\6\ PHLX recently submitted a filing to adopt rules 
that permit it to list an unlimited number of expiration months and 
series for each class of standard options opened for trading on that 
exchange. Specifically, PHLX amended its rules so that it can open ``at 
least one expiration month'' for each class of standard options open 
for trading on that exchange. Consequently, while the Exchange is 
currently restricted to listing a limited number of expiration months 
that are permissible under its rules and the Additional Expiration 
Months Pilot, PHLX has the ability to list an unlimited number of 
expiration months, including those that the Exchange would not be able 
to currently list under its rules. Indeed, PHLX has listed additional 
expiration months that no other market, including the Exchange, could 
list at the time they were added. For example, in February 2011, PHLX 
listed the October 2011 expiration in Omnicare, Inc. (ticker: OCR). 
PHLX was able to list that expiration month based on its amended rule. 
Meanwhile, the Exchange could not list the October 2011 series under 
Chapter IV, Section 6(a) of the BOX Trading Rules because the standard 
expiration months for OCR in February are March, April, June, and 
September. The Exchange also could not list the October 2011 series as 
part of the Additional Expiration Months Pilot because OCR is not one 
of the classes selected by BOX to participate in the Additional 
Expiration Months Pilot. As a result, PHLX was the only exchange that 
listed the October 2011 series in OCR and traded that series without 
any competition until recently when other options exchanges amended 
their rules to permit its listing.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 63700 (January 11, 
2011) 76 FR 2931 (January 18, 2011) (SR-PHLX-2011-04). In its 
filing, PHLX cites to the Commission's approval of the NASDAQ 
Options Market and rules pertaining thereto as the basis for making 
the change to its rules.
---------------------------------------------------------------------------

    For competitive reasons, the Exchange now proposes to add new 
Supplementary Material .09 to its Chapter IV, Section 6 and 
Supplementary Material .03 to Chapter XIV, Section 10 of the BOX 
Trading Rules to permit the Exchange to list additional expiration 
months on options classes opened for trading on BOX if such expiration 
months are opened for trading on at least one other national securities 
exchange. This proposed rule change will allow the Exchange to match 
the listing of expiration months that PHLX, NOM, ISE, or other 
exchanges list in the event the Exchange is not able to list those 
expiration months because they do not comport to BOX Trading Rules or 
the Additional Expiration Months Pilot.
    BOX notes that the proposed rule change affords additional 
flexibility in that it will permit listing those additional expiration 
months that have an actual demand from market participants, thereby 
potentially reducing the proliferation of classes and series. The 
Exchange believes the proposed rule change is proper, and indeed 
necessary, in light of the need to have rules that permit the listing 
of identical expiration months across exchanges for products that are 
multiply-listed and fungible with one another.
    BOX believes that the proposed rule change should encourage 
competition and be beneficial to traders and market participants by 
providing them with a means to trade on BOX securities that are listed 
and traded on other exchanges.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\7\ in general, and Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed 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 for a free and open market and a national market 
system, and in general, to protect investors and the public interest. 
In particular, the proposed rule change will permit the Exchange to 
accommodate requests made by BOX Option Participants and other market 
participants to list the additional expiration months and thus 
encourage competition without harming investors or the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 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 does not significantly 
affect the protection of investors or the public interest, does not 
impose any significant burden on competition, and, by its terms, does 
not 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 \9\ and Rule 19b-
(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Commission has waived the five-day prefiling requirement in this 
case.
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day 
operative delay. The Commission believes that waiver of the operative 
delay is consistent with the protection of investors and the public 
interest because the proposal should promote competition by allowing 
the Exchange, without undue delay, to list and trade option series that 
are trading on other options exchanges. Therefore, the Commission 
designates the proposal operative upon filing.\11\
---------------------------------------------------------------------------

    \11\ For 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).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if

[[Page 32385]]

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-BX-2011-029 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-2011-029. 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, 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-2011-029 and should be 
submitted on or before June 27, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\

    \12\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13903 Filed 6-3-11; 8:45 am]
BILLING CODE 8011-01-P