Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing of Opening Orders, 36161-36163 [2011-15372]
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Federal Register / Vol. 76, No. 119 / Tuesday, June 21, 2011 / Notices
NUCLEAR REGULATORY
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[Release No. 34–64677; File No. SR–Phlx–
2011–80]
Thursday, July 28, 2011
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Week of July 25, 2011—Tentative
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing of Opening Orders
June 15, 2011.
9 a.m. Briefing on Severe Accidents
and Options for Proceeding with
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Meeting) (Contact: Daniel Hudson,
301–251–7919).
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Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’), 1 and Rule 19b–4 2 thereunder,
notice is hereby given that, on June 2,
2011, NASDAQ OMX PHLX LLC
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00084
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36161
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 1017, Openings in Options, to
reflect a system change that describes
the price at which the Exchange will
route opening orders to away markets in
certain circumstances. Specifically, the
Exchange will route orders on the open
to away markets at prices other than the
Exchange’s opening price when such
order’s limit price is marketable against
an away market but not marketable
against the Exchange’s opening price.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 reflect a change to the
PHLX XL ® automated options trading
system 3 under which opening orders
that are submitted to the Exchange with
a limit price that is better than the
Exchange’s opening price would be
routed to away markets at the betterpriced limit order’s limit price. In such
a circumstance, the better-priced limit
order could not be executed on the
3 This proposal refers to ‘‘PHLX XL’’ as the
Exchange’s automated options trading system. In
May 2009 the Exchange enhanced the system and
adopted corresponding rules referring to the system
as ‘‘Phlx XL II.’’ See Securities Exchange Act
Release No. 59995 (May 28, 2009), 74 FR 26750
(June 3, 2009) (SR–Phlx–2009–32). The Exchange
intends to submit a separate technical proposed
rule change that would change all references to the
system from ‘‘Phlx XL II’’ to ‘‘PHLX XL’’ for
branding purposes.
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36162
Federal Register / Vol. 76, No. 119 / Tuesday, June 21, 2011 / Notices
Exchange, but may be executable on an
away market.
Current Rule and System Functionality
Currently, Exchange Rule 1017
describes a variety of situations under
which the PHLX XL system routes
opening orders to away markets when
there is remaining interest on the
Exchange that cannot be executed at the
Exchange’s opening price.4 Whether and
under what various circumstances an
opening limit order is to be routed are
described in detail in Rule 1017.5
The PHLX XL system calculates the
opening price based upon the price at
which the greatest number of contracts
can be executed.6 If there are remaining
contracts that are marketable at the
Away Best Bid or Offer (‘‘ABBO’’) after
the execution at the Exchange’s opening
price, such remaining contracts are
routed to the ABBO market(s) at a price
that is equal to the Exchange’s opening
price.7 If, however, the remaining
contracts have a limit price that is better
than the Exchange’s opening price, and
the PHLX XL system routes them to the
ABBO market(s) at the Exchange’s
opening price, the result could be an
execution on the ABBO market(s) at a
price that is inferior to the limit price of
the routed order.
Example
The following example illustrates the
issue. Assume that the opening scenario
is:
The ABBO is 1.00 (10) × 1.05 (10);
Opening order to buy 10 contracts at
1.05;
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
4 The
PHLX XL system calculates the Exchange’s
opening price as follows: If there are no opening
quotes or orders that lock or cross each other, the
system will open by disseminating the Exchange’s
best bid and offer among quotes and orders that
exist in the Phlx XL II system at that time (because
if no quotes or orders lock/cross each other, nothing
matches and there is no trade).
If there are opening quotes or orders that lock or
cross each other, the Phlx XL II system will take the
highest bid and the lowest offer among quotations
received that have a bid/ask differential that is
compliant with Rule 1014(c)(i)(A)(1)(a) (‘‘valid
width quotes’’), to determine the highest quote bid
and lowest quote offer. To calculate the opening
price, the Phlx XL II system will take into
consideration all valid width Phlx quotes, sweeps
(defined below) and orders together with other
exchanges’ markets for the series and identify the
price at which the maximum number of contracts
can trade. If that price is within the highest quote
bid and lowest quote offer and leaves no imbalance,
the Exchange will open at that price, executing
marketable trading interest, as long as the opening
price includes only Phlx interest.
See Exchange Rules 1017(l)(i) and (ii).
5 For a thorough description of the PHLX XL
system’s functionality in routing opening orders,
see Securities Exchange Act Release No. 59995
(May 28, 2009), 74 FR 26750 June 3, 2009) (SR–
Phlx–2009–32).
6 See supra note 4.
7 See Exchange Rule 1017(l)(ii)(C)(2).
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Opening order to buy 10 contracts at
1.06;
Opening order to buy 10 contracts at
1.06, with instructions ‘‘do not route’’;
Opening order to sell 20 contracts at
1.06 with instructions ‘‘do not route.’’ In
this example, the Exchange’s opening
price is 1.06, because that is the price
at which the greatest number of
contracts will trade. The PHLX XL
system will route 10 contracts to the
ABBO to buy at 1.06 (with an expected
execution price of 1.05) and trade 10
contracts on the Exchange at 1.06
(matching the ‘‘do not route’’ buy order
for 10 contracts against the ‘‘do not
route’’ order to sell 20 contracts at 1.06,
leaving 10 remaining ‘‘do not route’’
contracts to sell at 1.06 on the
Exchange). The opening order to buy 10
contracts at 1.05 will remain on the
Exchange’s order book as will the
remaining 10 contracts of the ‘‘do not
route’’ sell order at 1.06. The order to
buy 10 contracts at 1.05 was marketable
against the ABBO but could not be
executed as part of the opening process
because the PHLX XL system currently
only routes to the ABBO market(s) at the
Exchange’s opening price, which is
1.06, and which is inferior to the 1.05
limit price.
The Proposal
In order to address the issue described
in the above example, the Exchange
proposes to amend the rule and change
the system to provide that the PHLX XL
system will not only route to the ABBO
market(s) at a price that is equal to the
Exchange’s opening price, but also will
route to the ABBO market(s) at a price
that is better than the Exchange’s
opening price. With this system change,
the PHLX XL system would route the
order to buy 10 contracts at 1.05 to the
ABBO market(s) and trade the other
orders in their entirety at 1.06.
The PHLX XL system will determine
to route contracts to the ABBO market(s)
at a price that is equal to the Exchange’s
opening price when there is interest on
the Exchange at that price, but not all of
the contracts marketable at that price
can be executed on the Exchange.
Remaining contracts from the partially
executed order will be routed to ABBO
market(s) against which the order is
marketable.
The PHLX XL system will determine
to route contracts to the ABBO market(s)
at a price that is better than the
Exchange’s opening price when such
contracts are not marketable on the
Exchange but are marketable against the
ABBO market.
The Exchange believes that this
solution to the opening routing issue
described above ensures the routing of
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
marketable opening orders with a limit
price that is better than the Exchange’s
opening price to ABBO markets. This
enables the PHLX XL system to seek,
and route opening orders to, the best
away market(s) in the circumstance
described above, all to the benefit of the
investing public.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 8 in general, and furthers the
objectives of Section 6(b)(5) of the Act 9
in particular, in that it is designed 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, by
adopting a rule and system change that
affords quality executions on the
opening at the best prices available,
regardless of whether such prices are
present on the Exchange or on the
ABBO market(s).
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
Pursuant to Section 19(b)(3)(A) 10 of
the Act and Rule 19b–4(f)(6) 11
thereunder, the Exchange has
designated this proposal as one that
effects a change that: (i) Does not
significantly affect the protection of
investors or the public interest; (ii) does
not impose any significant burden on
competition; and (iii) by its terms, does
not become operative for 30 days after
the date of the filing, or such shorter
time as the Commission may designate
if consistent with the protection of
investors and the public interest.
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6).
9 15
E:\FR\FM\21JNN1.SGM
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Federal Register / Vol. 76, No. 119 / Tuesday, June 21, 2011 / Notices
date of filing.12 However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requested that the
Commission waive the 30-day operative
delay, as specified in Rule 19b–
4(f)(6)(iii),13 which would make the rule
change effective and operative upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the proposal to
take effect immediately, which may
result in better execution prices for
investors at the opening. Accordingly,
the Commission designates the
proposed rule change as operative upon
filing with the Commission.14
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Phlx–2011–80 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–Phlx–2011–80. 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–Phlx–
2011–80 and should be submitted on or
before July 12, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–15372 Filed 6–20–11; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
12 17
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the self-regulatory
organization to give the Commission 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 satisfied this requirement.
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay for this proposal, 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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15:25 Jun 20, 2011
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Notice and request for
comments.
ACTION:
In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the Small Business
Administration’s intentions to request
SUMMARY:
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00086
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36163
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DATES: Submit comments on or before
August 22, 2011.
ADDRESSES: Send all comments
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performance of the function of the
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Small Business Administration, 409 3rd
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20416.
FOR FURTHER INFORMATION CONTACT:
Veronica Dymond, Office of
Communications, 202–205–6746,
veronica.dymond@sba.gov Curtis B.
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Title: ‘‘U.S. Small Business Advisory
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FOR FURTHER INFORMATION CONTACT:
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E:\FR\FM\21JNN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 119 (Tuesday, June 21, 2011)]
[Notices]
[Pages 36161-36163]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15372]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64677; File No. SR-Phlx-2011-80]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Routing of Opening Orders
June 15, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''), \1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that, on June 2, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 1017, Openings in Options, to
reflect a system change that describes the price at which the Exchange
will route opening orders to away markets in certain circumstances.
Specifically, the Exchange will route orders on the open to away
markets at prices other than the Exchange's opening price when such
order's limit price is marketable against an away market but not
marketable against the Exchange's opening price.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaqtrader.com/micro.aspx?id=PHLXRulefilings,
at the principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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 reflect a change to
the PHLX XL [supreg] automated options trading system \3\ under which
opening orders that are submitted to the Exchange with a limit price
that is better than the Exchange's opening price would be routed to
away markets at the better-priced limit order's limit price. In such a
circumstance, the better-priced limit order could not be executed on
the
[[Page 36162]]
Exchange, but may be executable on an away market.
---------------------------------------------------------------------------
\3\ This proposal refers to ``PHLX XL'' as the Exchange's
automated options trading system. In May 2009 the Exchange enhanced
the system and adopted corresponding rules referring to the system
as ``Phlx XL II.'' See Securities Exchange Act Release No. 59995
(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR-Phlx-2009-32). The
Exchange intends to submit a separate technical proposed rule change
that would change all references to the system from ``Phlx XL II''
to ``PHLX XL'' for branding purposes.
---------------------------------------------------------------------------
Current Rule and System Functionality
Currently, Exchange Rule 1017 describes a variety of situations
under which the PHLX XL system routes opening orders to away markets
when there is remaining interest on the Exchange that cannot be
executed at the Exchange's opening price.\4\ Whether and under what
various circumstances an opening limit order is to be routed are
described in detail in Rule 1017.\5\
---------------------------------------------------------------------------
\4\ The PHLX XL system calculates the Exchange's opening price
as follows: If there are no opening quotes or orders that lock or
cross each other, the system will open by disseminating the
Exchange's best bid and offer among quotes and orders that exist in
the Phlx XL II system at that time (because if no quotes or orders
lock/cross each other, nothing matches and there is no trade).
If there are opening quotes or orders that lock or cross each
other, the Phlx XL II system will take the highest bid and the
lowest offer among quotations received that have a bid/ask
differential that is compliant with Rule 1014(c)(i)(A)(1)(a)
(``valid width quotes''), to determine the highest quote bid and
lowest quote offer. To calculate the opening price, the Phlx XL II
system will take into consideration all valid width Phlx quotes,
sweeps (defined below) and orders together with other exchanges'
markets for the series and identify the price at which the maximum
number of contracts can trade. If that price is within the highest
quote bid and lowest quote offer and leaves no imbalance, the
Exchange will open at that price, executing marketable trading
interest, as long as the opening price includes only Phlx interest.
See Exchange Rules 1017(l)(i) and (ii).
\5\ For a thorough description of the PHLX XL system's
functionality in routing opening orders, see Securities Exchange Act
Release No. 59995 (May 28, 2009), 74 FR 26750 June 3, 2009) (SR-
Phlx-2009-32).
---------------------------------------------------------------------------
The PHLX XL system calculates the opening price based upon the
price at which the greatest number of contracts can be executed.\6\ If
there are remaining contracts that are marketable at the Away Best Bid
or Offer (``ABBO'') after the execution at the Exchange's opening
price, such remaining contracts are routed to the ABBO market(s) at a
price that is equal to the Exchange's opening price.\7\ If, however,
the remaining contracts have a limit price that is better than the
Exchange's opening price, and the PHLX XL system routes them to the
ABBO market(s) at the Exchange's opening price, the result could be an
execution on the ABBO market(s) at a price that is inferior to the
limit price of the routed order.
---------------------------------------------------------------------------
\6\ See supra note 4.
\7\ See Exchange Rule 1017(l)(ii)(C)(2).
---------------------------------------------------------------------------
Example
The following example illustrates the issue. Assume that the
opening scenario is:
The ABBO is 1.00 (10) x 1.05 (10);
Opening order to buy 10 contracts at 1.05;
Opening order to buy 10 contracts at 1.06;
Opening order to buy 10 contracts at 1.06, with instructions ``do
not route''; Opening order to sell 20 contracts at 1.06 with
instructions ``do not route.'' In this example, the Exchange's opening
price is 1.06, because that is the price at which the greatest number
of contracts will trade. The PHLX XL system will route 10 contracts to
the ABBO to buy at 1.06 (with an expected execution price of 1.05) and
trade 10 contracts on the Exchange at 1.06 (matching the ``do not
route'' buy order for 10 contracts against the ``do not route'' order
to sell 20 contracts at 1.06, leaving 10 remaining ``do not route''
contracts to sell at 1.06 on the Exchange). The opening order to buy 10
contracts at 1.05 will remain on the Exchange's order book as will the
remaining 10 contracts of the ``do not route'' sell order at 1.06. The
order to buy 10 contracts at 1.05 was marketable against the ABBO but
could not be executed as part of the opening process because the PHLX
XL system currently only routes to the ABBO market(s) at the Exchange's
opening price, which is 1.06, and which is inferior to the 1.05 limit
price.
The Proposal
In order to address the issue described in the above example, the
Exchange proposes to amend the rule and change the system to provide
that the PHLX XL system will not only route to the ABBO market(s) at a
price that is equal to the Exchange's opening price, but also will
route to the ABBO market(s) at a price that is better than the
Exchange's opening price. With this system change, the PHLX XL system
would route the order to buy 10 contracts at 1.05 to the ABBO market(s)
and trade the other orders in their entirety at 1.06.
The PHLX XL system will determine to route contracts to the ABBO
market(s) at a price that is equal to the Exchange's opening price when
there is interest on the Exchange at that price, but not all of the
contracts marketable at that price can be executed on the Exchange.
Remaining contracts from the partially executed order will be routed to
ABBO market(s) against which the order is marketable.
The PHLX XL system will determine to route contracts to the ABBO
market(s) at a price that is better than the Exchange's opening price
when such contracts are not marketable on the Exchange but are
marketable against the ABBO market.
The Exchange believes that this solution to the opening routing
issue described above ensures the routing of marketable opening orders
with a limit price that is better than the Exchange's opening price to
ABBO markets. This enables the PHLX XL system to seek, and route
opening orders to, the best away market(s) in the circumstance
described above, all to the benefit of the investing public.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ in particular, in that it is designed 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,
by adopting a rule and system change that affords quality executions on
the opening at the best prices available, regardless of whether such
prices are present on the Exchange or on the ABBO market(s).
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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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
Pursuant to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-
4(f)(6) \11\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) Does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
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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 Rule 19b-4(f)(6) normally does
not become operative for 30 days after the
[[Page 36163]]
date of filing.\12\ However, Rule 19b-4(f)(6)(iii) permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
requested that the Commission waive the 30-day operative delay, as
specified in Rule 19b-4(f)(6)(iii),\13\ which would make the rule
change effective and operative upon filing.
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\12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the self-regulatory organization to give the
Commission 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 satisfied this requirement.
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the proposal to take effect immediately, which
may result in better execution prices for investors at the opening.
Accordingly, the Commission designates the proposed rule change as
operative upon filing with the Commission.\14\
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\14\ For purposes only of waiving the operative delay for this
proposal, 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-Phlx-2011-80 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-Phlx-2011-80. 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-Phlx-2011-80 and should be
submitted on or before July 12, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-15372 Filed 6-20-11; 8:45 am]
BILLING CODE 8011-01-P
