Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Routing Priority, 40971-40973 [2011-17394]
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Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASDAQ does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change: (i)
Does not significantly affect the
protection of investors or the public
interest; (ii) does not impose any
significant burden on competition; and
(iii) 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, 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
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because the proposal is substantially
similar to that of another exchange that
has been approved by the
Commission.13 Therefore, the
Commission designates the proposed
rule change to be 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
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires that a self-regulatory
organization submit to the Commission 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 satisfied this
requirement.
13 See Securities Exchange Act Release No. 63875
(February 9, 2011), 76 FR 8793 (February 15, 2011)
(SR–Phlx–2010–183) (order approving expansion of
Short Term Option Program).
14 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).
emcdonald on DSK2BSOYB1PROD with NOTICES
12 17
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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:
40971
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–17395 Filed 7–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64821; File No. SR–
NASDAQ–2011–088)
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–NASDAQ–2011–090 on the
subject line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Priority
July 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate
notice is hereby given that, on June 27,
to Elizabeth M. Murphy, Secretary,
2011, The NASDAQ Stock Market LLC
Securities and Exchange Commission,
(the ‘‘Exchange’’ or ‘‘NASDAQ’’) filed
100 F Street, NE., Washington, DC
with the Securities and Exchange
20549–1090.
Commission (the ‘‘Commission’’) the
proposed rule change as described in
All submissions should refer to File
Items I, II, and III, below, which Items
Number SR–NASDAQ–2011–090. This
have been prepared by NASDAQ. The
file number should be included on the
subject line if e-mail is used. To help the Commission is publishing this notice to
solicit comments on the proposed rule
Commission process and review your
change from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
Internet Web site (https://www.sec.gov/
the Proposed Rule Change
rules/sro.shtml). Copies of the
NASDAQ is filing with the Securities
submission, all subsequent
and Exchange Commission
amendments, all written statements
(‘‘Commission’’) a proposal for the
with respect to the proposed rule
NASDAQ Options Market (‘‘NOM’’) to
change that are filed with the
amend Chapter VI, Trading Systems,
Commission, and all written
Section 11, Order Routing, to address
communications relating to the
the priority of routed orders, as
proposed rule change between the
Commission and any person, other than described further below.
This change is scheduled to be
those that may be withheld from the
implemented on NOM on or about
public in accordance with the
August 15, 2011; the Exchange will
provisions of 5 U.S.C. 552, will be
announce the implementation schedule
available for Web site viewing and
by Options Trader Alert, once the
printing in the Commission’s Public
rollout schedule is finalized.
Reference Room, 100 F Street, NE.,
The text of the proposed rule change
Washington, DC 20549, on official
is available at https://
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also nasdaq.cchwallstreet.com/, at
NASDAQ’s principal office, and at the
will be available for inspection and
Commission’s Public Reference Room.
copying at the principal office of the
Exchange. All comments received will
II. Self-Regulatory Organization’s
be posted without change; the
Statement of the Purpose of, and
Commission does not edit personal
Statutory Basis for, the Proposed Rule
identifying information from
Change
submissions. You should submit only
In its filing with the Commission, the
information that you wish to make
Exchange included statements
available publicly. All submissions
should refer to File Number SR–
15 17 CFR 200.30–3(a)(12).
NASDAQ–2011–090 and should be
1 15 U.S.C. 78s(b)(1).
submitted on or before August 2, 2011.
2 17 CFR 240.19b–4.
Paper Comments
PO 00000
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40972
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
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 the
Statutory Basis for, the Proposed Rule
Change
emcdonald on DSK2BSOYB1PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to allow routed orders to
retain priority in the rare instances
where the routed portion returns
without being fully executed, when a
portion of the original order submitted
by the customer remains on the book, as
described in detail below. Currently,
Chapter VI, Section 11 governs the
routing of orders on NOM and describes
when orders are routed. Section 11(a)
describes order routing generally and
defines the specific routing options.
Section 11(b) covers non-System
securities, which are options other than
options that are currently trading on
NOM pursuant to Chapter IV.3 Section
11(d) governs the obligation to honor
trades executed on destination
exchanges resulting from routing.
Section 11(e) describes the broker-dealer
that operates NOM’s Routing Facility
and how it functions.
Section 11(c) governs the priority of
routed orders. Specifically, pursuant to
Section 11(c), orders sent by the System
to other markets do not retain time
priority with respect to other orders in
the System and the System continues to
execute other orders while routed orders
are away at another market center.4
Once routed by the System, an order
becomes subject to the rules and
procedures of the destination market
including, but not limited to, order
cancellation. If a routed order is
subsequently returned, in whole or in
part, that routed order, or its remainder,
receives a new time stamp reflecting the
time of its return to the System.
Accordingly, under current NOM rules
and functionality, a routed order that
returns to NOM, in effect, loses its place
in line on NOM.
3 NOM
Rules, Chapter VI, Section 1(b).
4 Because the System routes the lesser of the
disseminated size of the away markets or the order
size, it is possible for a portion of an order to be
routed rather than the entire order. Respecting the
part of an order that is routed, that order can either
be executed in full, in part or not at all on the
destination exchange.
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The Exchange proposes to change that
result by, instead, having the routed
order that returns to NOM retain its
original timestamp if any portion of that
order remains on NOM. Thus, under
this proposal, if a routed order is
subsequently returned, in whole or in
part, that routed order, or its remainder,
receives a new time stamp reflecting the
time of its return to the System, unless
any portion of the original order
remains on the System, in which case
the routed order shall re-join the portion
that remains on the book, retaining its
timestamp and its priority. The
Exchange proposes to amend Section
11(c) to reflect this.
Under this proposal, there will now
be a situation where a returned routed
order will retain its original timestamp
and priority, as though the unsuccessful
routing had never occurred. The
Exchange does not believe that this
result is problematic or raises regulatory
issues. In fact, in situations where a
portion of an order remains on the
Exchange and a portion is routed, the
Exchange routes such order so as to
execute it and comply with the
regulatory requirements to avoid tradethroughs and locked and crossed
markets. Various market conditions
determine the destination(s) to which an
order is routed, the portion of the order
that should be routed, and whether or
not the routed order results in an
execution. Accordingly, the Exchange
believes that its processes to route and
timestamp routed orders, which are
spelled out in its rules, are intended to
make clear to market participants the
various outcomes that result, depending
on various market conditions.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 5 in general, and furthers the
objectives of Section 6(b)(5) of the Act 6
in particular, in that it 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 facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that retaining the original timestamp on
a partially routed order is designed to
promote just and equitable principles of
trade and protect investors and the
public interest, because maintaining the
PO 00000
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00101
Fmt 4703
Sfmt 4703
original order as a single order is the
simplest method of handling the order,
which should help entering firms
manage their order flow. Respecting
routable orders, market conditions, not
the entering firm, determine whether
the order is routed, and ultimately
whether it is executed on the
destination market, such that the
Exchange believes that it is simpler and
more logical to treat the unexecuted
portion of a routed order together with
the original order. In addition, retaining
the original timestamp on a partially
routed order does not disadvantage
other orders on the book, because the
partially routed order had time priority
and is merely returning, in effect, to its
original place in time priority on the
book. The portion of the order that was
not routed and remained on the book is
available for execution; if it is executed
in full before the routed portion returns
to the Exchange, the returned, routed
portion receives a new timestamp book.
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: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(6) 8
thereunder.
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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). 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
requirement.
8 17
E:\FR\FM\12JYN1.SGM
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Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
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.
NASDAQ–2011–088 and should be
submitted on or before August 2, 2011.
of the most significant parts of such
statements.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Cathy H. Ahn,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2011–17394 Filed 7–11–11; 8:45 am]
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–NASDAQ–2011–088 on the
subject line.
emcdonald on DSK2BSOYB1PROD with NOTICES
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:
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Correcting the
Numbering of a Recently Adopted
NYSE Arca Equities Rule
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–NASDAQ–2011–088. 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–
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16:14 Jul 11, 2011
Jkt 223001
40973
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64823; File No. SR–
NYSEArca–2011–42]
July 6, 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 June 30,
2011, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to correct the
numbering of a recently adopted NYSE
Arca Equities Rule. The text of the
proposed rule change is available at the
Exchange, at https://www.nyse.com, at
the Commission’s Public Reference
Room, and at the Commission’s Web
site at https://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
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
PO 00000
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00102
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to correct the
numbering of a recently adopted NYSE
Arca Equities Rule. Specifically, the
Exchange recently codified outbound
and inbound routing functions
performed by its affiliate broker-dealer,
Archipelago Securities LLC (‘‘Arca
Securities’’), in Section 4 of Rule 7. The
Exchange inadvertently mis-numbered
the new NYSE Arca Equities Rule as
7.41 when it should have been 7.45.
NYSE Arca Equities Rule 7.41—
pertaining to clearance and settlement—
already appears in Section 3 of Rule 7.3
The Exchange hereby proposes to
correct the inadvertent mis-numbering
to reflect the new routing broker
function rule as NYSE Arca Equities
Rule 7.45.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 4 of the Act,
in general, and furthers the objectives of
Section 6(b)(5),5 in particular, in that it
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
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. The Exchange believes
that the proposed rule change, which
would correct the inadvertent misnumbering of a new Exchange Rule,
would avoid confusion that could result
from having two separate rules
numbered as Rule 7.41 and instead
reflect the Exchange’s intention to adopt
the routing broker function rule as
NYSE Arca Equities Rule 7.45.
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.
3 The Exchange, through SR–NYSEArca–2011–38,
did not intend or propose to change the meaning,
interpretation or enforcement of Rule 7.41 (Clearing
and Settlement) within Section 3 of Rule 7.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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]]>Agencies
[Federal Register Volume 76, Number 133 (Tuesday, July 12, 2011)]
[Notices]
[Pages 40971-40973]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17394]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64821; File No. SR-NASDAQ-2011-088)
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Routing Priority
July 6, 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 June 27, 2011, The NASDAQ Stock Market LLC (the ``Exchange''
or ``NASDAQ'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III, below, which Items have been prepared by NASDAQ. 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
NASDAQ is filing with the Securities and Exchange Commission
(``Commission'') a proposal for the NASDAQ Options Market (``NOM'') to
amend Chapter VI, Trading Systems, Section 11, Order Routing, to
address the priority of routed orders, as described further below.
This change is scheduled to be implemented on NOM on or about
August 15, 2011; the Exchange will announce the implementation schedule
by Options Trader Alert, once the rollout schedule is finalized.
The text of the proposed rule change is available at https://nasdaq.cchwallstreet.com/, at NASDAQ's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
[[Page 40972]]
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to allow routed orders
to retain priority in the rare instances where the routed portion
returns without being fully executed, when a portion of the original
order submitted by the customer remains on the book, as described in
detail below. Currently, Chapter VI, Section 11 governs the routing of
orders on NOM and describes when orders are routed. Section 11(a)
describes order routing generally and defines the specific routing
options. Section 11(b) covers non-System securities, which are options
other than options that are currently trading on NOM pursuant to
Chapter IV.\3\ Section 11(d) governs the obligation to honor trades
executed on destination exchanges resulting from routing. Section 11(e)
describes the broker-dealer that operates NOM's Routing Facility and
how it functions.
---------------------------------------------------------------------------
\3\ NOM Rules, Chapter VI, Section 1(b).
---------------------------------------------------------------------------
Section 11(c) governs the priority of routed orders. Specifically,
pursuant to Section 11(c), orders sent by the System to other markets
do not retain time priority with respect to other orders in the System
and the System continues to execute other orders while routed orders
are away at another market center.\4\ Once routed by the System, an
order becomes subject to the rules and procedures of the destination
market including, but not limited to, order cancellation. If a routed
order is subsequently returned, in whole or in part, that routed order,
or its remainder, receives a new time stamp reflecting the time of its
return to the System. Accordingly, under current NOM rules and
functionality, a routed order that returns to NOM, in effect, loses its
place in line on NOM.
---------------------------------------------------------------------------
\4\ Because the System routes the lesser of the disseminated
size of the away markets or the order size, it is possible for a
portion of an order to be routed rather than the entire order.
Respecting the part of an order that is routed, that order can
either be executed in full, in part or not at all on the destination
exchange.
---------------------------------------------------------------------------
The Exchange proposes to change that result by, instead, having the
routed order that returns to NOM retain its original timestamp if any
portion of that order remains on NOM. Thus, under this proposal, if a
routed order is subsequently returned, in whole or in part, that routed
order, or its remainder, receives a new time stamp reflecting the time
of its return to the System, unless any portion of the original order
remains on the System, in which case the routed order shall re-join the
portion that remains on the book, retaining its timestamp and its
priority. The Exchange proposes to amend Section 11(c) to reflect this.
Under this proposal, there will now be a situation where a returned
routed order will retain its original timestamp and priority, as though
the unsuccessful routing had never occurred. The Exchange does not
believe that this result is problematic or raises regulatory issues. In
fact, in situations where a portion of an order remains on the Exchange
and a portion is routed, the Exchange routes such order so as to
execute it and comply with the regulatory requirements to avoid trade-
throughs and locked and crossed markets. Various market conditions
determine the destination(s) to which an order is routed, the portion
of the order that should be routed, and whether or not the routed order
results in an execution. Accordingly, the Exchange believes that its
processes to route and timestamp routed orders, which are spelled out
in its rules, are intended to make clear to market participants the
various outcomes that result, depending on various market conditions.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \5\ in general, and furthers the objectives of Section
6(b)(5) of the Act \6\ in particular, in that it 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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system, and, in general, to protect
investors and the public interest. The Exchange believes that retaining
the original timestamp on a partially routed order is designed to
promote just and equitable principles of trade and protect investors
and the public interest, because maintaining the original order as a
single order is the simplest method of handling the order, which should
help entering firms manage their order flow. Respecting routable
orders, market conditions, not the entering firm, determine whether the
order is routed, and ultimately whether it is executed on the
destination market, such that the Exchange believes that it is simpler
and more logical to treat the unexecuted portion of a routed order
together with the original order. In addition, retaining the original
timestamp on a partially routed order does not disadvantage other
orders on the book, because the partially routed order had time
priority and is merely returning, in effect, to its original place in
time priority on the book. The portion of the order that was not routed
and remained on the book is available for execution; if it is executed
in full before the routed portion returns to the Exchange, the
returned, routed portion receives a new timestamp book.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 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: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\
thereunder.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). 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 requirement.
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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
[[Page 40973]]
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-NASDAQ-2011-088 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-NASDAQ-2011-088. 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-
NASDAQ-2011-088 and should be submitted on or before August 2, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17394 Filed 7-11-11; 8:45 am]
BILLING CODE 8011-01-P
