Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend BATS Rules in Connection With the Elimination of a Directed Order Program for BATS Options, 45636-45638 [2011-19236]
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45636
Federal Register / Vol. 76, No. 146 / Friday, July 29, 2011 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
As the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
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 office of
FINRA. 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–FINRA–2010–036 and
should be submitted on or before
August 19, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.47
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19193 Filed 7–28–11; 8:45 am]
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–FINRA–2010–036 on the
subject line.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64956; File No. SR–
NASDAQ–2011–073]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on Proposed Rule
Change To Adopt Additional Listing
Requirements for Reverse Mergers
July 25, 2011.
On May 26, 2011, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’) filed with
the Securities and Exchange
• Send paper comments in triplicate
Commission (‘‘Commission’’), pursuant
to Elizabeth M. Murphy, Secretary,
to Section 19(b)(1) of the Securities
Securities and Exchange Commission,
Exchange Act of 1934 (‘‘Act’’),1 and
100 F Street, NE., Washington, DC
Rule 19b–4 thereunder,2 a proposed rule
20549–1090.
change to adopt additional listing
All submissions should refer to File
Number SR–FINRA–2010–036. This file requirements for reverse mergers. The
proposed rule change was published for
number should be included on the
subject line if e-mail is used. To help the comment in the Federal Register on
June 14, 2011.3 The Commission
Commission process and review your
received no comments on the proposal.
comments more efficiently, please use
Section 19(b)(2) of the Act 4 provides
only one method. The Commission will
that within 45 days of the publication of
post all comments on the Commission’s
notice of the filing of a proposed rule
Internet Web site (https://www.sec.gov/
change, or within such longer period up
rules/sro.shtml). Copies of the
to 90 days as the Commission may
submission, all subsequent
designate if it finds such longer period
amendments, all written statements
to be appropriate and publishes its
with respect to the proposed rule
reasons for so finding or as to which the
change that are filed with the
self-regulatory organization consents,
Commission, and all written
the Commission shall either approve the
communications relating to the
proposed rule change, disapprove the
proposed rule change between the
Commission and any person, other than proposed rule change, or institute
proceedings to determine whether the
those that may be withheld from the
public in accordance with the
47 17 CFR 200.30–3(a)(12).
provisions of 5 U.S.C. 552, will be
1 15 U.S.C. 78s(b)(1).
available for Web site viewing and
2 17 CFR 240.19b–4.
printing in the Commission’s Public
3 See Securities Exchange Act Release No. 64633
Reference Room, 100 F Street, NE.,
(June 8, 2011), 76 FR 34781.
4 15 U.S.C. 78s(b)(2).
Washington, DC 20549, on official
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Paper Comments
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proposed rule change should be
disapproved. The 45th day for this filing
is July 29, 2011.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period to take
action on the proposed rule change so
that it has sufficient time to consider the
Exchange’s proposal, which would
establish additional listing requirements
for reverse merger companies, whereby
an operating company becomes public
by combining with a public shell.
Accordingly, pursuant to Section
19(b)(2) of the Act,5 the Commission
designates September 12, 2011 as the
date by which the Commission should
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File Number SR–
NASDAQ–2011–073).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19231 Filed 7–28–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64957; File No. SR–BATS–
2011–023]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend BATS Rules in
Connection With the Elimination of a
Directed Order Program for BATS
Options
July 25, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 22,
2011, BATS Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BATS’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
5 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
6 17
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Federal Register / Vol. 76, No. 146 / Friday, July 29, 2011 / Notices
thereunder,4 which renders it effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
BATS Rule 21.1, entitled ‘‘Definitions,’’
to remove two order types, Market
Maker Price Improving Orders and
Directed Orders, from the types of
approved order types offered by the
BATS options market (‘‘BATS
Options’’). Through this amendment,
the Exchange is eliminating its recently
approved rules related to the
establishment of a directed order
program on a pilot basis for BATS
Options.5
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, at
https://www.sec.gov, 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 parts of such
statements
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange recently received
approval to operate a directed order
program for BATS Options on a pilot
basis.6 The BATS Options directed
order program would allow members of
BATS Options (‘‘Options Members’’) to
direct an order to a particular BATS
Options Market Maker for potential
execution at a price improved over the
existing National Best Bid (‘‘NBB’’) or
National Best Offer (‘‘NBO’’). The goal
of the directed order program was to
4 17
CFR 240.19b–4(f)(6)(iii).
Securities Exchange Act Release No. 64781
(June 30, 2011), 76 FR 39953 (July 7, 2011) (SR–
BATS–2011–023).
6 Id.
5 See
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Jkt 223001
create a competitive structure to
enhance aggressive quoting and shift
economics associated with nontransparent payment for order flow
arrangements to better execution prices
for customer orders on the Exchange.
While pending, the proposal to operate
a directed order program received
several comments from competitors of
the Exchange and other market
participants, some of which raised
concerns that the directed order
program may foster internalization and
a widening of quoted spreads.7 During
this time period, the Exchange also
discussed the proposal with several
Options Members, and the Exchange has
continued these discussions following
the approval of the proposal. While the
Exchange continues to believe that the
proposal is consistent with the Act and
contains appropriate requirements to
incent competitive quotations and
further the public price discovery
process, based on on-going discussions
with Options Members, the Exchange
believes there is sufficient reason to
withdraw the directed order program
and continue analyzing potential
refinements that may better achieve the
Exchange’s goal. The Exchange notes
that it has not yet implemented the
directed order program.
Based on the foregoing, the Exchange
proposes to eliminate the definitions for
Market Maker Price Improving Orders
and Directed Orders from the types of
approved order types offered by the
BATS Options pursuant to Rule 21.1.
2. Statutory Basis
The rule change proposed in this
submission is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
7 See e.g., Letters to Elizabeth M. Murphy,
Secretary, Commission, from Thomas F. Price,
Managing Director, Securities Industry and
Financial Markets Association, dated June 30, 2011;
Christopher Nagy, Managing Director Order
Strategy, TD Ameritrade, dated June 30, 2011;
Jennifer M. Lamie, Assistant General Counsel, Legal
Division, Chicago Board Options Exchange, dated
June 29, 2011; Tom Wittman, The NASDAQ OMX
PHLX, Inc. and The NASDAQ Options Market,
dated June 24, 2011; Janet L. McGinness, SVP &
Corporate Secretary, Legal & Government Affairs,
NYSE Euronext, dated June 17, 2011; Michael J.
Simon, Secretary, International Securities
Exchange, LLC, dated June 17, 2011; Anthony D.
McCormick, Chief Executive Officer, BOX Options
Exchange Group, LLC, dated June 13, 2011; John C.
Nagel, Managing Director and General Counsel,
Asset Management and Markets, Citadel LLC, dated
April 25, 2011; Andrew Stevens, Legal Counsel,
IMC Chicago, LLC d/b/a IMC Financial Markets,
dated April 21, 2011. The Exchange also notes that
other options exchanges filed with the Commission
a joint petition related to the directed order program
following the approval of the directed order
program.
PO 00000
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45637
requirements of Section 6(b) of the Act.8
Specifically, the proposed change is
consistent with Section 6(b)(5) of the
Act,9 because it would promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest. The Exchange believes that
elimination of the directed order
program will provide the Exchange and
the options industry as a whole with
additional time to evaluate the potential
benefits of a program such as the
directed order program.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
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
from the date on which it was filed, or
such shorter time as the Commission
may designate, if consistent with the
protection of investors and the public
interest, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 10 and Rule 19b–4(f)(6)
thereunder.11
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Commission has determined
that waiving the 30-day operative delay
of the Exchange’s proposal is consistent
with the protection of investors and the
public interest because the Exchange
would like additional time to consider
potential refinements to the directed
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). In addition, Rule 19b–
4(f)(6)(iii) requires the self-regulatory organization
to 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.
BATS is deemed to have satisfied this requirement.
9 15
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45638
Federal Register / Vol. 76, No. 146 / Friday, July 29, 2011 / Notices
order program and the directed order
program has not been implemented.12
Therefore, the Commission designates
the proposal operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BATS–2011–023 on the
subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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–BATS–2011–023. 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 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–BATS–2011–023 and
should be submitted on or before
August 19, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–19236 Filed 7–28–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64955; File No. SR–FICC–
2011–05]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change To
Amend the Rules Regarding the GCF
Repo Service To Adopt Changes
Recommended by the Tri-Party Repo
Infrastructure Reform Task Force
July 25, 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 July 12,
2011, the Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared primarily by FICC. 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 purpose of the proposed rule
change is to amend the rules regarding
the GCF Repo service to adopt changes
recommended by the Tri-Party Repo
Infrastructure Reform Task Force
(‘‘TPR’’). Because the GCF Repo service
operates as a tri-party mechanism, FICC
has been requested to incorporate
changes to the GCF Repo service to align
the service with the other changes
recommended by the TPR for the overall
tri-party repo market.
12 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).
VerDate Mar<15>2010
16:17 Jul 28, 2011
Jkt 223001
PO 00000
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00135
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(i) FICC is proposing to make certain
changes to its GCF Repo® 4 service in
order to comply with the
recommendations made by the TPR, an
industry group formed and sponsored
by the Federal Reserve Bank of New
York.5 Because the GCF Repo service
operates as a tri-party repo mechanism,
FICC has been requested to incorporate
changes to the GCF Repo service to align
the service with the other TPR
recommended changes for the overall
tri-party repo market.
FICC is proposing to initially
implement the changes described herein
in a pilot program (‘‘Pilot Program’’).
FICC proposes to run the Pilot Program
for one year starting from the date on
which the Commission approves this
proposed rule change filing. If FICC
decides to extend the Pilot Program or
to implement the changes in the Pilot
Program permanently, FICC shall
submit a proposed rule change filing to
the Commission for that purpose.
Background: Description of the GCF
Repo Service and History
(1) Creation of the GCF Repo Service
The GCF Repo service allows GSD
dealer members to trade general
3 The Commission has modified the text of the
summaries prepared by FICC.
4 GCF Repo is a registered trademark of FICC/
DTCC.
5 The main purpose of the TPR is to develop
recommendations to address the risk presented by
tri-party repo transactions due to the current
morning reversal or ‘‘unwind’’ process and to move
to a process by which tri-party repo transactions are
collateralized all day. Currently, tri-party repo
transactions unwind in the morning between 7 and
8 a.m. EST. The GSD Schedule of GCF Timeframes
provides that the unwind of GCF Repo transactions
(both overnight and term) must be accomplished by
7:30 a.m. The TPR has mandated that the collateral
used in tri-party repo and GCF Repo transactions
be ‘‘locked up’’ until 3:30 p.m. EST. This would
serve to reduce the intraday exposure to the dealers
that the clearing banks currently face with the start
of daily unwind.
E:\FR\FM\29JYN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 146 (Friday, July 29, 2011)]
[Notices]
[Pages 45636-45638]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19236]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64957; File No. SR-BATS-2011-023]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
BATS Rules in Connection With the Elimination of a Directed Order
Program for BATS Options
July 25, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on July 22, 2011, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii)
[[Page 45637]]
thereunder,\4\ which renders it effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend BATS Rule 21.1, entitled
``Definitions,'' to remove two order types, Market Maker Price
Improving Orders and Directed Orders, from the types of approved order
types offered by the BATS options market (``BATS Options''). Through
this amendment, the Exchange is eliminating its recently approved rules
related to the establishment of a directed order program on a pilot
basis for BATS Options.\5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 64781 (June 30,
2011), 76 FR 39953 (July 7, 2011) (SR-BATS-2011-023).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at https://www.batstrading.com, at the principal office of the
Exchange, at https://www.sec.gov, 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 parts of such
statements
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange recently received approval to operate a directed order
program for BATS Options on a pilot basis.\6\ The BATS Options directed
order program would allow members of BATS Options (``Options Members'')
to direct an order to a particular BATS Options Market Maker for
potential execution at a price improved over the existing National Best
Bid (``NBB'') or National Best Offer (``NBO''). The goal of the
directed order program was to create a competitive structure to enhance
aggressive quoting and shift economics associated with non-transparent
payment for order flow arrangements to better execution prices for
customer orders on the Exchange. While pending, the proposal to operate
a directed order program received several comments from competitors of
the Exchange and other market participants, some of which raised
concerns that the directed order program may foster internalization and
a widening of quoted spreads.\7\ During this time period, the Exchange
also discussed the proposal with several Options Members, and the
Exchange has continued these discussions following the approval of the
proposal. While the Exchange continues to believe that the proposal is
consistent with the Act and contains appropriate requirements to incent
competitive quotations and further the public price discovery process,
based on on-going discussions with Options Members, the Exchange
believes there is sufficient reason to withdraw the directed order
program and continue analyzing potential refinements that may better
achieve the Exchange's goal. The Exchange notes that it has not yet
implemented the directed order program.
---------------------------------------------------------------------------
\6\ Id.
\7\ See e.g., Letters to Elizabeth M. Murphy, Secretary,
Commission, from Thomas F. Price, Managing Director, Securities
Industry and Financial Markets Association, dated June 30, 2011;
Christopher Nagy, Managing Director Order Strategy, TD Ameritrade,
dated June 30, 2011; Jennifer M. Lamie, Assistant General Counsel,
Legal Division, Chicago Board Options Exchange, dated June 29, 2011;
Tom Wittman, The NASDAQ OMX PHLX, Inc. and The NASDAQ Options
Market, dated June 24, 2011; Janet L. McGinness, SVP & Corporate
Secretary, Legal & Government Affairs, NYSE Euronext, dated June 17,
2011; Michael J. Simon, Secretary, International Securities
Exchange, LLC, dated June 17, 2011; Anthony D. McCormick, Chief
Executive Officer, BOX Options Exchange Group, LLC, dated June 13,
2011; John C. Nagel, Managing Director and General Counsel, Asset
Management and Markets, Citadel LLC, dated April 25, 2011; Andrew
Stevens, Legal Counsel, IMC Chicago, LLC d/b/a IMC Financial
Markets, dated April 21, 2011. The Exchange also notes that other
options exchanges filed with the Commission a joint petition related
to the directed order program following the approval of the directed
order program.
---------------------------------------------------------------------------
Based on the foregoing, the Exchange proposes to eliminate the
definitions for Market Maker Price Improving Orders and Directed Orders
from the types of approved order types offered by the BATS Options
pursuant to Rule 21.1.
2. Statutory Basis
The rule change proposed in this submission is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\8\ Specifically, the
proposed change is consistent with Section 6(b)(5) of the Act,\9\
because it would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system, and, in general, protect investors and
the public interest. The Exchange believes that elimination of the
directed order program will provide the Exchange and the options
industry as a whole with additional time to evaluate the potential
benefits of a program such as the directed order program.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change imposes
any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
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 from the date on which it was
filed, or such shorter time as the Commission may designate, if
consistent with the protection of investors and the public interest, it
has become effective pursuant to Section 19(b)(3)(A) of the Act \10\
and Rule 19b-4(f)(6) thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the self-regulatory organization to 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. BATS is deemed to have satisfied this requirement.
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The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission has determined that waiving the 30-day
operative delay of the Exchange's proposal is consistent with the
protection of investors and the public interest because the Exchange
would like additional time to consider potential refinements to the
directed
[[Page 45638]]
order program and the directed order program has not been
implemented.\12\ Therefore, the Commission designates the proposal
operative upon filing.
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\12\ 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).
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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.
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-BATS-2011-023 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-BATS-2011-023. 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 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-
BATS-2011-023 and should be submitted on or before August 19, 2011.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19236 Filed 7-28-11; 8:45 am]
BILLING CODE 8011-01-P
