Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Program Relating to Individual Securities Circuit Breakers, 50784-50786 [2011-20732]
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50784
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices
Act 4 in general, and furthers the
objectives of Section 6(b)(4) of the Act 5
in particular, in that it is an equitable
allocation of reasonable dues, fees and
other charges among Exchange
members. The Exchange believes that
the proposed fee changes will generally
allow the Exchange and its Members to
better compete for order flow and thus
enhance competition. More specifically,
the Exchange believes that its proposal
to adopt volume-based rebates is
reasonable as it will encourage Members
to direct their QCC and Solicitation
orders to the Exchange instead of to a
competing exchange. The Exchange
notes that it has previously adopted
other incentive programs to promote
and encourage growth in specific
business areas. For example, the
Exchange has lower fees (or no fees) for
customer orders; 6 and tiered pricing
that reduces rates for market makers
based on the level of business they bring
to the Exchange.7 This proposed rule
change targets yet another segment in
which the Exchange seeks to garnish
greater order flow. The Exchange also
believes that adopting the proposed
rebates is reasonable because it is
designed to give Members who trade a
lot on the Exchange a benefit by way of
a lower transaction fee. As noted above,
once a Member reaches the established
threshold, all of the trading activity in
the specified order type by that Member
will be subject to the proposed rebate.
The Exchange also believes the
proposal to adopt the rebates is
equitable because it would uniformly
apply to all Members engaged in QCC
and Solicitation trading in all option
classes traded on the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
6 For example, the customer fee is $0.00 per
contract for products other than Singly Listed
Indexes, Singly Listed ETFs and FX Options. For
Singly Listed Options, Singly Listed ETFs and FX
Options, the customer fee is $0.18 per contract. The
Exchange also currently has an incentive plan in
place for certain specific FX Options which has its
own pricing. See ISE Schedule of Fees.
7 The Exchange currently has a sliding scale fee
structure that ranges from $0.01 per contract to
$0.18 per contract depending on the level of volume
a Member trades on the Exchange in a month.
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5 15
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.8 At any time
within 60 days of the filing of such
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
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:
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 website 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 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–ISE–
2011–47, and should be submitted on or
before September 6, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–20733 Filed 8–15–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–ISE–2011–47 on the subject
line.
[Release No. 34–65080; File No. SR–CHX–
2011–23]
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–ISE–2011–47. 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
August 9, 2011.
8 15
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
Frm 00070
Fmt 4703
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Self-Regulatory Organizations;
Chicago Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change To Extend
the Pilot Program Relating to
Individual Securities Circuit Breakers
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on August 8,
2011, the Chicago Stock Exchange, Inc.
(‘‘CHX’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the CHX. CHX has
filed this proposal pursuant to Exchange
Act Rule 19b–4(f)(6) 3 which is effective
upon filing with the Commission.
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\16AUN1.SGM
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Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CHX proposes to amend its rules to
extend the pilot program relating to
individual securities circuit breakers.
The text of this proposed rule change is
available on the Exchange’s Web site at
(https://www.chx.com) and in 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
CHX included statements concerning
the purpose of and basis for the
proposed rule changes and discussed
any comments it received regarding the
proposal. The text of these statements
may be examined at the places specified
in Item IV below. The CHX 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
emcdonald on DSK2BSOYB1PROD with NOTICES
In June, 2010, CHX obtained
Commission approval to amend Article
20, Rule 2 to create circuit breakers in
individual securities on a pilot basis to
end on December 10, 2010.4 Shortly
thereafter, in September, the
Commission approved another
amendment to Article 20, Rule 2 to add
securities included in the Russell 1000®
Index (‘‘Russell 1000’’) and certain
specified Exchange Traded Products
(‘‘ETP’’) to the pilot rule.5 This program
was subsequently extended until April
11, 2011 6 and was again extended until
August 11, 2011.7 Then, in June, 2011,
the Commission approved another
amendment to Article 20, Rule 2 to add
all NMS stocks to the pilot rule.8
The proposed rule change merely
extends the duration of the pilot
program to January 31, 2012. Extending
the pilot in this manner will allow the
4 See Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010)
approving SR–CHX–2010–10.
5 See Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) approving SR–CHX–2010–14.
6 See Securities Exchange Act Release No. 34–
63498 (December 9, 2010), 75 FR 78310 December
15, 2010) approving SR–CHX–2010–24.
7 See Securities Exchange Act Release No. 64203
(April 6, 2011), 75 FR 20393 April 12, 2011)
approving SR–CHX–2011–05.
8 See Securities Exchange Act Release No. 64735
(June 23, 2011), 75 FR 38243 (June 29, 2011)
approving SR–CHX–2011–09.
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18:07 Aug 15, 2011
Jkt 223001
Commission more time to consider the
impact of the pilot program.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b)(5) of the
Securities Exchange Act of 1934 (the
‘‘Act’’), which requires the rules of an
exchange 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. The proposed rule
change also is designed to support the
principles of Section 11A(a)(1) of the
Act in that it seeks to assure fair
competition among brokers and dealers
and among exchange markets. The
Exchange believes that the proposed
rule meets these requirements in that it
promotes uniformity across markets
concerning decisions to pause trading in
a security when there are significant
price movements.
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 either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and Rule
19b–4(f)(6) thereunder.10 Because the
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
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6)(iii)
thereunder.12
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
10 17
PO 00000
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50785
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 14 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding the
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change as operative upon filing.15
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
No. SR–CHX–2011–23 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.
to file the proposed rule change along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\16AUN1.SGM
16AUN1
50786
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices
All submissions should refer to File No.
SR–CHX–2011–23. 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 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 No. SR–CHX–2011–
23 and should be submitted on or before
September 6, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–20732 Filed 8–15–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
emcdonald on DSK2BSOYB1PROD with NOTICES
[Release No. 34–65092; File No. SR–EDGX–
2011–23]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend EDGX Rule
11.14 To Extend the Operation of the
Single Stock Circuit Breaker Pilot
Program Until January 31, 2012
August 10, 2011.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
5, 2011, the EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) 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 self-regulatory organization. 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 amend
EDGX Rule 11.14 to extend the
operation of the single stock circuit
breaker pilot program (the ‘‘Pilot’’)
pursuant to the Rule until January 31,
2012. The text of the proposed rule
change is available on the Exchange’s
Web site at https://www.directedge.com,
at the Exchange’s principal office, and at
the Public Reference Room of 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
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
self-regulatory organization 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 Exchange proposes to amend
EDGX Rule 11.14 to extend the
operation of a Pilot that allows the
Exchange to provide for uniform
market-wide trading pause standards for
NMS stocks through January 31, 2012.
Background
Pursuant to Rule 11.14, the Exchange
is allowed to pause trading in any NMS
stock when the primary listing market
for such stock issues a trading pause in
such NMS stock. The Exchange will
pause trading in such security until
trading has resumed on the primary
listing market.
16 17
2 15
1 15
3 17
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PO 00000
U.S.C. 78a.
CFR 240.19b–4.
Frm 00072
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Sfmt 4703
EDGX Rule 11.14 was approved by
the Commission on June 10, 2010 on a
Pilot basis to end on December 10,
2010.4 The Pilot was subsequently
extended until April 11, 2011.5 The
Pilot was then further extended through
the earlier of August 11, 2011 or the
date on which a limit up/limit down
mechanism to address extraordinary
market volatility, if adopted, applies.6
In its initial filing to adopt EDGX Rule
11.14, the Exchange stated that the
original Pilot list of securities was all
securities included in the S&P 500®
Index (‘‘S&P 500’’). The Exchange also
noted in that filing that it would
continue to assess whether additional
securities needed to be added or
removed from the Pilot list and whether
the parameters of the rule needed to be
modified to accommodate trading
characteristics of different securities. As
noted in comment letters to the initial
filing to adopt EDGX Rule 11.14,
concerns were raised that including
only securities in the S&P 500 in the
Pilot rule was too narrow. In particular,
commenters noted that securities that
experienced volatility on May 6, 2010,
including ETFs, should be included in
the Pilot.
In response to these concerns, various
exchanges and national securities
associations collectively determined to
expand the list of Pilot securities to
include securities in the Russell 1000
and specified ETPs to the Pilot
beginning in September 2010.7 The
Exchange believed that adding these
securities would address concerns that
the scope of the Pilot may be too
narrow, while at the same time
recognizing that during the Pilot period,
the markets would continue to review
whether and when to add additional
securities to the Pilot and whether the
parameters of the rule should be
adjusted for different securities.
As a result of consulting with other
markets and the staff of the
Commission, the Exchange
subsequently included all NMS stocks
within the Pilot that were not already
included therein.8 In particular, the
additional stocks were those not
4 See Securities Exchange Act Release No. 62252
(June 10, 2010) (SR–EDGX–2010–01), 75 FR 34186
(June 16, 2010).
5 See Securities Exchange Act Release No. 63507
(December 9, 2010) (SR–EDGX–2010–22), 75 FR
78787 (December 16, 2010).
6 See Securities Exchange Act Release No. 64205
(April 6, 2011) (SR–EDGX–2011–10), 76 FR 20417
(April 12, 2011).
7 See Securities Exchange Act Release No. 62884
(September 10, 2010) (SR–EDGX–2010–05), 75 FR
56618 (September 16, 2010).
8 See Securities Exchange Act Release No. 64375
(June 23, 2011) (SR–EDGX–2011–14), 76 FR 38243
(June 29, 2011).
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]]>Agencies
[Federal Register Volume 76, Number 158 (Tuesday, August 16, 2011)]
[Notices]
[Pages 50784-50786]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-20732]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65080; File No. SR-CHX-2011-23]
Self-Regulatory Organizations; Chicago Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Extend the Pilot Program Relating to Individual Securities Circuit
Breakers
August 9, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on August 8, 2011, the Chicago Stock Exchange, Inc. (``CHX'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the CHX. CHX has filed this
proposal pursuant to Exchange Act Rule 19b-4(f)(6) \3\ which is
effective upon filing with the Commission.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
[[Page 50785]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CHX proposes to amend its rules to extend the pilot program
relating to individual securities circuit breakers. The text of this
proposed rule change is available on the Exchange's Web site at (https://www.chx.com) and in 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 CHX included statements
concerning the purpose of and basis for the proposed rule changes and
discussed any comments it received regarding the proposal. The text of
these statements may be examined at the places specified in Item IV
below. The CHX 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
In June, 2010, CHX obtained Commission approval to amend Article
20, Rule 2 to create circuit breakers in individual securities on a
pilot basis to end on December 10, 2010.\4\ Shortly thereafter, in
September, the Commission approved another amendment to Article 20,
Rule 2 to add securities included in the Russell 1000[supreg] Index
(``Russell 1000'') and certain specified Exchange Traded Products
(``ETP'') to the pilot rule.\5\ This program was subsequently extended
until April 11, 2011 \6\ and was again extended until August 11,
2011.\7\ Then, in June, 2011, the Commission approved another amendment
to Article 20, Rule 2 to add all NMS stocks to the pilot rule.\8\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) approving SR-CHX-2010-10.
\5\ See Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) approving SR-CHX-2010-14.
\6\ See Securities Exchange Act Release No. 34-63498 (December
9, 2010), 75 FR 78310 December 15, 2010) approving SR-CHX-2010-24.
\7\ See Securities Exchange Act Release No. 64203 (April 6,
2011), 75 FR 20393 April 12, 2011) approving SR-CHX-2011-05.
\8\ See Securities Exchange Act Release No. 64735 (June 23,
2011), 75 FR 38243 (June 29, 2011) approving SR-CHX-2011-09.
---------------------------------------------------------------------------
The proposed rule change merely extends the duration of the pilot
program to January 31, 2012. Extending the pilot in this manner will
allow the Commission more time to consider the impact of the pilot
program.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b)(5) of the
Securities Exchange Act of 1934 (the ``Act''), which requires the rules
of an exchange 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. The proposed rule change also is
designed to support the principles of Section 11A(a)(1) of the Act in
that it seeks to assure fair competition among brokers and dealers and
among exchange markets. The Exchange believes that the proposed rule
meets these requirements in that it promotes uniformity across markets
concerning decisions to pause trading in a security when there are
significant price movements.
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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the 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 prior to
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \14\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change as operative upon filing.\15\
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\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 No. SR-CHX-2011-23 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.
[[Page 50786]]
All submissions should refer to File No. SR-CHX-2011-23. 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 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 No. SR-CHX-2011-23 and should be
submitted on or before September 6, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-20732 Filed 8-15-11; 8:45 am]
BILLING CODE 8011-01-P
