Self-Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating to Routing Priority, 40976-40978 [2011-17428]
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40976
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
more members will be eligible to receive
the credits for such orders. NYSE Arca
also believes that the higher rebates
would incent liquidity, and such
increased volume increases potential
revenue to the Exchange, allowing the
Exchange to pass on the savings to
members in the form of a higher rebate.
Similar to the Baseline Month approach,
NASDAQ and EDGX have established
credits and fees which are based on
increased volumes from a previous
month baseline.6
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
the Exchange must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. The Exchange
believes that the proposed rule change
reflects this competitive environment
because it will broaden the conditions
under which members may qualify for
higher liquidity provider credits.
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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
emcdonald on DSK2BSOYB1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 7 of the Act and
subparagraph (f)(2) of Rule 19b–4 8
thereunder, because it establishes a due,
fee, or other charge imposed by the
NYSE Arca.
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
6 See
n.4 above.
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(2).
7 15
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16:14 Jul 11, 2011
Jkt 223001
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–17427 Filed 7–11–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64822; File No. SR–Phlx2011–91]
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2011–41 on the
subject line.
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by NASDAQ
OMX PHLX LLC 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, NASDAQ OMX PHLX LLC
Securities and Exchange Commission,
(‘‘Phlx’’ or ‘‘Exchange’’) filed with the
100 F Street, NE., Washington, DC
Securities and Exchange Commission
20549–1090.
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
All submissions should refer to File
and III below, which Items have been
Number SR–NYSEArca–2011–41. This
prepared by the Exchange. 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
The Exchange proposes to correct
submission, all subsequent
Rule 1080(m) to reflect the priority of
amendments, all written statements
routed orders that are not executed on
with respect to the proposed rule
the destination exchange, as described
change that are filed with the
further below.
Commission, and all written
The text of the proposed rule change
communications relating to the
is available on the Exchange’s Web site
proposed rule change between the
Commission and any person, other than at https://www.nasdaqtrader.com/
micro.aspx?id=PHLXRulefilings, at the
those that may be withheld from the
principal office of the Exchange, and at
public in accordance with the
the Commission’s Public Reference
provisions of 5 U.S.C. 552, will be
Room.
available for Web site viewing and
printing in the Commission’s Public
II. Self-Regulatory Organization’s
Reference Room, 100 F Street, NE.,
Statement of the Purpose of, and
Washington, DC 20549, on official
Statutory Basis for, the Proposed Rule
business days between the hours of
Change
10 a.m. and 3 p.m. Copies of the filing
In its filing with the Commission, the
also will be available for inspection and
Exchange included statements
copying at the principal office of the
concerning the purpose of and basis for
Exchange. All comments received will
the proposed rule change and discussed
be posted without change; the
any comments it received on the
Commission does not edit personal
proposed rule change. The text of these
identifying information from
statements may be examined at the
submissions. You should submit only
places specified in Item IV below. The
information that you wish to make
Exchange has prepared summaries, set
available publicly. All submissions
should refer to File Number SR–
9 17 CFR 200.30–3(a)(12).
NYSEArca–2011–41 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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12JYN1
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
emcdonald on DSK2BSOYB1PROD with NOTICES
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 more accurately reflect the
priority of routed orders in Rule 1080.
Currently, Rule 1080(m) governs the
routing of orders on the Exchange and
describes when orders are routed.
Specifically, it provides that the System
will route only customer FIND and
SRCH Orders with no other
contingencies, that IOC Orders will be
cancelled immediately if not executed
and will not be routed and that eligible
orders can be designated as either
available for routing or not available for
routing. Customer FIND and SRCH
Orders, as defined in Rule 1080(m)(iv),
designated as available for routing will
first be checked by the System for
available contracts for potential
execution. After checking the System for
available contracts, orders are sent to
other available market centers for
potential execution. When checking the
book, the System will seek to execute at
the price at which it would send the
order to a destination market center.
In situations where the Exchange’s
disseminated bid or offer is inferior to
the NBBO price, the System will
contemporaneously: (i) Route an order
marked as an ISO to each away market
disseminating prices better than the
Exchange’s price, for the lesser of: (a)
The disseminated size of such away
markets, or (b) the order size and, (ii) if
order size remains after such routing,
trade at the Exchange’s disseminated
bid or offer up to its disseminated size.
If contracts still remain unexecuted after
routing, they are posted on the book.
Once on the book, should the order
subsequently be locked or crossed by
another market center, the System will
not route the order to the locking or
crossing market center, except as
specified in Rule 1080(m).
Because the System routes the lesser
of the disseminated size of the away
markets or the order size, it is possible
for part of an order to be routed, with
a portion of the order remaining on the
Exchange. Respecting the part of an
order that is routed (‘‘routed order’’),
that order can either be executed in full,
in part or not at all on the destination
exchange.
Currently, Rule 1080(m)(i) describes
the priority of routed orders as follows:
orders sent to other markets do not
VerDate Mar<15>2010
16:14 Jul 11, 2011
Jkt 223001
retain time priority with respect to other
orders in the System and the System
shall continue to execute other orders
while routed orders are away at another
market center. It further provides that
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 order, or its remainder, shall
receive a new time stamp reflecting the
time of its return to the System.
However, there is a situation where
the order does not receive a new time
stamp. Specifically, as described above,
a routed order can be for less than the
original incoming order’s size with a
portion of the order remaining on the
Exchange. If a routed order is
subsequently returned, in whole or in
part, that routed order, or its remainder,
will not receive a new time stamp
reflecting the time of its return to the
System if any portion of the original
order remains on the System when the
routed order returns to the System, in
which case the routed order shall retain
its timestamp and its priority;
specifically, the routed order, when
returned, retains the timestamp and
priority of the order which remains on
the Exchange. The Exchange proposes to
codify this in Rule 1080(m)(i).
Where the original incoming order
resides on the book when the routed
order returns unexecuted or executed in
part, the Exchange’s System does not
treat the routed order as a new order but
rather resumes treating it as part of the
original incoming order, thereby
retaining 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.
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
40977
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 3 in general, and furthers the
objectives of Section 6(b)(5) of the Act 4
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
more accurately reflecting the priority of
routed orders, the rules will be clearer;
at the same time, the Exchange also
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.
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
3 15
4 15
E:\FR\FM\12JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12JYN1
40978
Federal Register / Vol. 76, No. 133 / Tuesday, July 12, 2011 / Notices
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 Act5 and Rule 19b–4(f)(6)6
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
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
Paper Comments
emcdonald on DSK2BSOYB1PROD with NOTICES
• 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-2011–91. 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
5 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.
6 17
16:14 Jul 11, 2011
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–17428 Filed 7–11–11; 8:45 am]
BILLING CODE 8011–01–P
• 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-2011–91 on the
subject line.
VerDate Mar<15>2010
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room on official business
days between the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal offices 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-2011–91, and should
be submitted on or before August 2,
2011.
Jkt 223001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64818; File No. SR–CBOE–
2011–060]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Fees
Schedule Relating to the Marketing Fee
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 29,
2011, the Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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 Exchange has
designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by CBOE under
Section 19(b)(3)(A)(ii) of the Act 3 and
PO 00000
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
1 15
Frm 00107
Fmt 4703
Sfmt 4703
Rule 19b–4(f)(2) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CBOE proposes to amend its
Marketing Fee Program to extend for an
additional three months a pilot program
it implemented on December 1, 2010,5
and extended on April 1, 2011,6 relating
to the assessment of the marketing fee
in the SPY option class. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary and at the
Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
CBOE proposes to amend its
Marketing Fee Program to extend for an
additional three months a pilot program
it implemented on December 1, 2010,7
and extended on April 1, 2011,8 relating
to the assessment of the marketing fee
in the SPY option class. Specifically,
CBOE previously determined not to
assess the marketing fee on electronic
transactions in SPY options, except that
it would continue to assess the
marketing fee on electronic transactions
resulting from its Automated
Improvement Mechanism (‘‘AIM’’)
pursuant to CBOE Rule 6.74A and
4 17
CFR 240.19b–4(f)(2).
Securities Exchange Act Release No. 63470
(December 8, 2010), 75 FR 78284 (December 15,
2010) (SR–CBOE–2010–108).
6 See Securities Exchange Act Release No. 64212
(April 6, 2011), 76 FR 20411 (April 12, 2011) (SR–
CBOE–2011–033).
7 See Note 5.
8 See Note 6.
5 See
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Agencies
[Federal Register Volume 76, Number 133 (Tuesday, July 12, 2011)]
[Notices]
[Pages 40976-40978]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17428]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64822; File No. SR-Phlx-2011-91]
Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC 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, 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, II, and III 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 correct Rule 1080(m) to reflect the
priority of routed orders that are not executed on the destination
exchange, as described further below.
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
[[Page 40977]]
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 more accurately
reflect the priority of routed orders in Rule 1080. Currently, Rule
1080(m) governs the routing of orders on the Exchange and describes
when orders are routed. Specifically, it provides that the System will
route only customer FIND and SRCH Orders with no other contingencies,
that IOC Orders will be cancelled immediately if not executed and will
not be routed and that eligible orders can be designated as either
available for routing or not available for routing. Customer FIND and
SRCH Orders, as defined in Rule 1080(m)(iv), designated as available
for routing will first be checked by the System for available contracts
for potential execution. After checking the System for available
contracts, orders are sent to other available market centers for
potential execution. When checking the book, the System will seek to
execute at the price at which it would send the order to a destination
market center.
In situations where the Exchange's disseminated bid or offer is
inferior to the NBBO price, the System will contemporaneously: (i)
Route an order marked as an ISO to each away market disseminating
prices better than the Exchange's price, for the lesser of: (a) The
disseminated size of such away markets, or (b) the order size and, (ii)
if order size remains after such routing, trade at the Exchange's
disseminated bid or offer up to its disseminated size. If contracts
still remain unexecuted after routing, they are posted on the book.
Once on the book, should the order subsequently be locked or crossed by
another market center, the System will not route the order to the
locking or crossing market center, except as specified in Rule 1080(m).
Because the System routes the lesser of the disseminated size of
the away markets or the order size, it is possible for part of an order
to be routed, with a portion of the order remaining on the Exchange.
Respecting the part of an order that is routed (``routed order''), that
order can either be executed in full, in part or not at all on the
destination exchange.
Currently, Rule 1080(m)(i) describes the priority of routed orders
as follows: orders sent to other markets do not retain time priority
with respect to other orders in the System and the System shall
continue to execute other orders while routed orders are away at
another market center. It further provides that 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
order, or its remainder, shall receive a new time stamp reflecting the
time of its return to the System.
However, there is a situation where the order does not receive a
new time stamp. Specifically, as described above, a routed order can be
for less than the original incoming order's size with a portion of the
order remaining on the Exchange. If a routed order is subsequently
returned, in whole or in part, that routed order, or its remainder,
will not receive a new time stamp reflecting the time of its return to
the System if any portion of the original order remains on the System
when the routed order returns to the System, in which case the routed
order shall retain its timestamp and its priority; specifically, the
routed order, when returned, retains the timestamp and priority of the
order which remains on the Exchange. The Exchange proposes to codify
this in Rule 1080(m)(i).
Where the original incoming order resides on the book when the
routed order returns unexecuted or executed in part, the Exchange's
System does not treat the routed order as a new order but rather
resumes treating it as part of the original incoming order, thereby
retaining 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 \3\ in general, and furthers the objectives of Section
6(b)(5) of the Act \4\ 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 more accurately reflecting the priority of routed orders, the rules
will be clearer; at the same time, the Exchange also 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.
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\3\ 15 U.S.C. 78f(b).
\4\ 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
Because the foregoing proposed rule change does not: (i)
Significantly affect
[[Page 40978]]
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\5\ and Rule 19b-4(f)(6)\6\ thereunder.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 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 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-2011-91 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-2011-91. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal offices
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-2011-91, and should be submitted on or before August 2, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17428 Filed 7-11-11; 8:45 am]
BILLING CODE 8011-01-P