Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Pilot Period for BOX To Receive Inbound Routes of Orders From NOS, 53507-53509 [2011-21857]

Download as PDF Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices subscribers equally based on the number of ports subscribed. The proposed fees will cover the costs associated with separately offering the service, responding to customer requests, configuring Exchange systems, programming to user specifications, and administering the service, among other things, and may provide the Exchange with a profit to the extent costs are covered. The Exchange also believes that the proposed rule change is consistent with the provisions of Section 6(b)(5) of the Act 9 because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. PRM is designed to assist member firms in avoiding entry of erroneous orders by screening out those that exceed pre-determined limits, which otherwise may harm both the member firm and the quality of the markets. As such, PRM is an important compliance tool that members may use to help maintain the regulatory integrity of the markets. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. emcdonald on DSK2BSOYB1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b– 4(f)(6) thereunder.11 9 15 U.S.C. 78f(b)(5). 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 Exchange to give the 10 15 VerDate Mar<15>2010 19:37 Aug 25, 2011 Jkt 223001 The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest. Such a waiver will allow the Exchange to offer the PRM service, which a member may use as a tool that could assist compliance with certain regulatory obligations and enhance market integrity, as soon as possible. Accordingly, the Commission designates the proposal operative upon filing.12 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–Phlx–2011–115 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–2011–115. 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 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. 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). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 53507 submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Phlx– 2011–115 and should be submitted on or before September 16, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–21852 Filed 8–25–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65177; File No. SR–BX– 2011–058] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Extending the Pilot Period for BOX To Receive Inbound Routes of Orders From NOS August 19, 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 August 15, 2011, NASDAQ OMX BX, Inc. (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 Exchange. The Commission is publishing this notice to solicit 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\26AUN1.SGM 26AUN1 53508 Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices 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 submits this proposed rule change to extend the pilot period of the Exchange’s prior approval for the Boston Options Exchange (‘‘BOX’’) to accept inbound routes by NASDAQ Options Services, LLC (‘‘NOS’’) of Nasdaq Options Market (‘‘NOM’’) Exchange Direct Orders without checking the NOM book and 2) [sic] NOM non-System securities, including Exchange Direct Orders.3 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose emcdonald on DSK2BSOYB1PROD with NOTICES Currently, NOS is the approved outbound routing facility of the NASDAQ Stock Market (the ‘‘NASDAQ Exchange’’) for NOM, providing outbound routing from NOM to other market centers.4 The Exchange and the 3 Pursuant to chapter VI, Section 1(b) of the NOM Rules, ‘‘System Securities’’ are all options that are currently trading on NOM pursuant to chapter IV of the NOM rules. All other options are ‘‘NonSystem Securities.’’ Pursuant to chapter VI, Section (1)(e)(7) of the NOM Rules, Exchange Direct Orders are orders that route directly to other Options Markets on an immediate-or-cancel basis without checking the NOM book for liquidity. 4 NOM Rule chapter VI, Section 11(c). Under NOM Rule chapter VI, Section 11(c): (1) NOM routes orders in options via NOS, which serves as the sole ‘‘routing facility’’ of NOM; (2) the sole function of the routing facility is to route orders in options to away markets pursuant to NOM rules, solely on behalf of NOM; (3) NOS is a member of an unaffiliated self-regulatory organization, which is the designated examining authority for the broker-dealer; (4) the routing facility is subject to regulation as a facility of the NASDAQ Exchange, including the requirement to file proposed rule changes under Section 19 of the Act; (5) use of NOS to route order to other market centers is optional; (6) NOM must establish and maintain procedures and internal controls reasonably designed to adequately restrict the flow of confidential and VerDate Mar<15>2010 19:37 Aug 25, 2011 Jkt 223001 NASDAQ Exchange have previously adopted rules to permit BOX to receive inbound routes of certain option orders, specifically (1) Exchange Direct Orders without checking the NOM book prior to routing, and (2) NOM non-system securities, by NOS on a pilot basis.5 The Exchange specifically has adopted a rule to prevent potential information advantages resulting from the affiliation between BOX and NOS, as related to NOS’s authority to route orders from NOM to BOX.6 NOS’s authority to route these orders to BOX is subject to a pilot period ending on August 16, 2011.7 The Exchange hereby seeks to extend the previously approved pilot period (with the attendant obligations and conditions) to permit BOX to accept inbound routes of (1) exchange Direct Orders without checking the NOM book and (2) NOM non-System securities, including Exchange Direct Orders that NOS routes from NOM for an additional 30 days, through September 15, 2011. The Exchange is also seeking permanent approval of the BOX and NOS inbound routing relationship.8 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,9 in general, and with Section 6(b)(5) of the Act,10 in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and proprietary information between the NASDAQ Exchange and its facilities (including the routing facility), and any other entity; and (7) the books, records, premises, officers, directors, agents, and employees of the routing facility, as a facility of the NASDAQ Exchange, shall be subject at all times to inspection and copying by the NASDAQ Exchange and the Commission. 5 See Securities Exchange Act Release Nos. 60349 (July 20, 2009), 74 FR 37071 (July 27, 2009) (SR– BX–2009–035); 60354 (July 21, 2009), 74 FR 37074 (July 27, 2009) (SR–NASDAQ–2009–065); 62555 (July 22, 2010), 75 FR 44835 (July 29, 2010) (SR– BX–2010–051); 63364 (November 23, 2010), 75 FR 74121 (November 30, 2010) (SR–BX–2010–078); 64530 (May 20, 2011), 76 FR 30746 (May 26, 2011) (SR–BX–2011–027). 6 See chapter XXXIX, Section 2(c) of the Grandfathered Rules of the Exchange. 7 See Securities Exchange Act Release No. 64530 (May 20, 2011), 76 FR 30746 (May 26, 2011) (SR–BX–2011–027). 8 See Securities Exchange Act Release No. 64896 (July 15, 2011), 76 FR 30476 (July 21, 2011) (SR–BX–2011–045). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 open market and a national market system, and, in general, to protect investors and the public interest. Specifically, the proposed rule change would permit inbound routing of certain orders from NOM to BOX through NOS in a manner consistent with prior approvals and established protections. The Exchange believes that extending the previously approved pilot period for thirty days is a sufficient length to permit both the Exchange and the Commission to assess the impact of the Exchange’s authority to permit BOX to receive direct inbound routes of certain option orders via NOS (including the attendant obligations and conditions), while the Commission evaluates the pending proposal to make the pilot permanent.11 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 significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act12 and Rule 19b– 4(f)(6) thereunder.13 The Exchange has requested that the Commission waive the 30-day operative delay. The Exchange believes that the proposed rule change does not significantly affect the protection of investors or the public interest because it seeks to extend for a limited period a currently operating pilot program so as 11 See supra at note 8. U.S.C. 78s(b)(3)(A). 13 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. 12 15 E:\FR\FM\26AUN1.SGM 26AUN1 Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Notices communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–BX– 2011–058 and should be submitted on or before September 16,2011. 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.16 Elizabeth M. Murphy, Secretary. 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–BX–2011–058 on the subject line. emcdonald on DSK2BSOYB1PROD with NOTICES to allow the Exchange and Commission to assess whether to make the pilot permanent in accordance with its attendant obligations and conditions.14 The Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because such waiver would allow the pilot period to be extended without undue delay through September 15, 2011 while the Exchange’s proposal to make the pilot permanent is under consideration. Therefore, the Commission designates the proposal 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. SECURITIES AND EXCHANGE COMMISSION [FR Doc. 2011–21857 Filed 8–25–11; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–65185; File No. SR– NYSEArca–2011–61] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Amending NYSE Arca Equities Rule 7.45(c)(2) To Make Paper Comments Permanent the Pilot Program That • Send paper comments in triplicate Permits the Exchange To Accept to Elizabeth M. Murphy, Secretary, Inbound Orders Routed by Securities and Exchange Commission, Archipelago Securities LLC in Its 100 F Street, NE., Washington, DC Capacity as a Facility of Affiliated 20549–1090. Exchanges and To Clarify the Text of NYSE Arca Equities Rule 7.45(c)(1)(B) All submissions should refer to File to More Accurately Reflect the Number SR–BX–2011–058. This file Regulatory Services Agreement number should be included on the subject line if e-mail is used. To help the Between the Exchange and the Financial Industry Regulatory Commission process and review your Authority comments more efficiently, please use only one method. The Commission will August 22, 2011. post all comments on the Commission’s Pursuant to Section 19(b)(1) of the Internet Web site (https://www.sec.gov/ Securities Exchange Act of 1934 rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on August amendments, all written statements 18, 2011, NYSE Arca, Inc. (‘‘NYSE with respect to the proposed rule Arca’’ or the ‘‘Exchange’’) filed with the change that are filed with the Securities and Exchange Commission Commission, and all written (‘‘Commission’’) the proposed rule change as described in Items I, II, and 14 See SR–BX–2011–058, Item 7. 15 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 19:37 Aug 25, 2011 Jkt 223001 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 53509 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Rule 7.45(c)(2) to make permanent the pilot program that permits the Exchange to accept inbound orders routed by Archipelago Securities LLC (‘‘Arca Securities’’) in its capacity as a facility of affiliated exchanges (with the attendant obligations and conditions) and to clarify the text of NYSE Arca Equities Rule 7.45(c)(1)(B) to more accurately reflect the regulatory services agreement (‘‘RSA’’) between the Exchange and the Financial Industry Regulatory Authority (‘‘FINRA’’). The text of the proposed rule change is available at the Exchange, at the Exchange’s Web site at https:// www.nyse.com, at the Commission’s Public Reference Room, and at the Commission’s Web site at https:// www.sec.gov. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, 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 proposes to amend NYSE Arca Equities Rule 7.45(c)(2) to make permanent the pilot program that permits the Exchange to accept inbound orders routed by Arca Securities in its capacity as a facility of affiliated exchanges (with the attendant obligations and conditions) and to clarify the text of NYSE Arca Equities Rule 7.45(c)(1)(B) to more accurately reflect the RSA between the Exchange and FINRA.3 3 The change to the rule text to more accurately reflect the RSA between the Exchange and FINRA Continued E:\FR\FM\26AUN1.SGM 26AUN1

Agencies

[Federal Register Volume 76, Number 166 (Friday, August 26, 2011)]
[Notices]
[Pages 53507-53509]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21857]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65177; File No. SR-BX-2011-058]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Extending 
the Pilot Period for BOX To Receive Inbound Routes of Orders From NOS

August 19, 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 August 15, 2011, NASDAQ OMX BX, Inc. (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 Exchange. The Commission is publishing this 
notice to solicit

[[Page 53508]]

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 submits this proposed rule change to extend the pilot 
period of the Exchange's prior approval for the Boston Options Exchange 
(``BOX'') to accept inbound routes by NASDAQ Options Services, LLC 
(``NOS'') of Nasdaq Options Market (``NOM'') Exchange Direct Orders 
without checking the NOM book and 2) [sic] NOM non-System securities, 
including Exchange Direct Orders.\3\
---------------------------------------------------------------------------

    \3\ Pursuant to chapter VI, Section 1(b) of the NOM Rules, 
``System Securities'' are all options that are currently trading on 
NOM pursuant to chapter IV of the NOM rules. All other options are 
``Non-System Securities.'' Pursuant to chapter VI, Section (1)(e)(7) 
of the NOM Rules, Exchange Direct Orders are orders that route 
directly to other Options Markets on an immediate-or-cancel basis 
without checking the NOM book for liquidity.
---------------------------------------------------------------------------

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Currently, NOS is the approved outbound routing facility of the 
NASDAQ Stock Market (the ``NASDAQ Exchange'') for NOM, providing 
outbound routing from NOM to other market centers.\4\ The Exchange and 
the NASDAQ Exchange have previously adopted rules to permit BOX to 
receive inbound routes of certain option orders, specifically (1) 
Exchange Direct Orders without checking the NOM book prior to routing, 
and (2) NOM non-system securities, by NOS on a pilot basis.\5\ The 
Exchange specifically has adopted a rule to prevent potential 
information advantages resulting from the affiliation between BOX and 
NOS, as related to NOS's authority to route orders from NOM to BOX.\6\ 
NOS's authority to route these orders to BOX is subject to a pilot 
period ending on August 16, 2011.\7\ The Exchange hereby seeks to 
extend the previously approved pilot period (with the attendant 
obligations and conditions) to permit BOX to accept inbound routes of 
(1) exchange Direct Orders without checking the NOM book and (2) NOM 
non-System securities, including Exchange Direct Orders that NOS routes 
from NOM for an additional 30 days, through September 15, 2011. The 
Exchange is also seeking permanent approval of the BOX and NOS inbound 
routing relationship.\8\
---------------------------------------------------------------------------

    \4\ NOM Rule chapter VI, Section 11(c). Under NOM Rule chapter 
VI, Section 11(c): (1) NOM routes orders in options via NOS, which 
serves as the sole ``routing facility'' of NOM; (2) the sole 
function of the routing facility is to route orders in options to 
away markets pursuant to NOM rules, solely on behalf of NOM; (3) NOS 
is a member of an unaffiliated self-regulatory organization, which 
is the designated examining authority for the broker-dealer; (4) the 
routing facility is subject to regulation as a facility of the 
NASDAQ Exchange, including the requirement to file proposed rule 
changes under Section 19 of the Act; (5) use of NOS to route order 
to other market centers is optional; (6) NOM must establish and 
maintain procedures and internal controls reasonably designed to 
adequately restrict the flow of confidential and proprietary 
information between the NASDAQ Exchange and its facilities 
(including the routing facility), and any other entity; and (7) the 
books, records, premises, officers, directors, agents, and employees 
of the routing facility, as a facility of the NASDAQ Exchange, shall 
be subject at all times to inspection and copying by the NASDAQ 
Exchange and the Commission.
    \5\ See Securities Exchange Act Release Nos. 60349 (July 20, 
2009), 74 FR 37071 (July 27, 2009) (SR-BX-2009-035); 60354 (July 21, 
2009), 74 FR 37074 (July 27, 2009) (SR-NASDAQ-2009-065); 62555 (July 
22, 2010), 75 FR 44835 (July 29, 2010) (SR-BX-2010-051); 63364 
(November 23, 2010), 75 FR 74121 (November 30, 2010) (SR-BX-2010-
078); 64530 (May 20, 2011), 76 FR 30746 (May 26, 2011) (SR-BX-2011-
027).
    \6\ See chapter XXXIX, Section 2(c) of the Grandfathered Rules 
of the Exchange.
    \7\ See Securities Exchange Act Release No. 64530 (May 20, 
2011), 76 FR 30746 (May 26,
     2011) (SR-BX-2011-027).
    \8\ See Securities Exchange Act Release No. 64896 (July 15, 
2011), 76 FR 30476 (July 21,
     2011) (SR-BX-2011-045).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\9\ in general, and with 
Section 6(b)(5) of the Act,\10\ in particular, in that the proposal is 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Specifically, 
the proposed rule change would permit inbound routing of certain orders 
from NOM to BOX through NOS in a manner consistent with prior approvals 
and established protections. The Exchange believes that extending the 
previously approved pilot period for thirty days is a sufficient length 
to permit both the Exchange and the Commission to assess the impact of 
the Exchange's authority to permit BOX to receive direct inbound routes 
of certain option orders via NOS (including the attendant obligations 
and conditions), while the Commission evaluates the pending proposal to 
make the pilot permanent.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
    \11\ See supra at note 8.
---------------------------------------------------------------------------

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 significantly 
affect the protection of investors or the public interest, does not 
impose any significant burden on competition, and, by its terms, does 
not become operative for 30 days from the date on which it was filed, 
or such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act\12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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.
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day 
operative delay. The Exchange believes that the proposed rule change 
does not significantly affect the protection of investors or the public 
interest because it seeks to extend for a limited period a currently 
operating pilot program so as

[[Page 53509]]

to allow the Exchange and Commission to assess whether to make the 
pilot permanent in accordance with its attendant obligations and 
conditions.\14\ The Commission believes that waiver of the operative 
delay is consistent with the protection of investors and the public 
interest because such waiver would allow the pilot period to be 
extended without undue delay through September 15, 2011 while the 
Exchange's proposal to make the pilot permanent is under consideration. 
Therefore, the Commission designates the proposal operative upon 
filing.\15\
---------------------------------------------------------------------------

    \14\ See SR-BX-2011-058, Item 7.
    \15\ 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).
---------------------------------------------------------------------------

    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-BX-2011-058 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-BX-2011-058. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BX-2011-058 and should be 
submitted on or before September 16, 2011.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21857 Filed 8-25-11; 8:45 am]
BILLING CODE 8011-01-P
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