Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Minimum Quantity Order, 64401-64402 [2011-26920]

Download as PDF Federal Register / Vol. 76, No. 201 / Tuesday, October 18, 2011 / Notices william.dosch@nrc.gov. Determinations on requests for reasonable accommodation will be made on a caseby-case basis. This notice is distributed electronically to subscribers. If you no longer wish to receive it, or would like to be added to the distribution, please contact the Office of the Secretary, Washington, DC 20555 (301–415–1969), or send an e-mail to darlene.wright@nrc.gov. Dated: October 13, 2011. Rochelle Bavol, Policy Coordinator, Office of the Secretary. [FR Doc. 2011–27034 Filed 10–14–11; 4:15 pm] BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION Curian Series Trust and Curian Capital, LLC; Notice of Application September 19, 2011. Correction In notice document 2011–24590 appearing on pages 59455–59456 in the issue of September 26, 2011, make the following correction: On page 59455, in the first column, the date, which was inadvertently omitted from the document heading, is added to read as set forth above. [FR Doc. C1–2011–24590 Filed 10–17–11; 8:45 am] BILLING CODE 1505–01–D [Release No. 34–65537; File No. SR–Phlx– 2011–132] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Minimum Quantity Order mstockstill on DSK4VPTVN1PROD with NOTICES October 12, 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 September 30, 2011, NASDAQ OMX PHLX LLC (‘‘PHLX’’) 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 by PHLX. The Commission is U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:46 Oct 17, 2011 Jkt 226001 PHLX is filing this proposed rule change to modify the operation of its Minimum Quantity Order in the NASDAQ OMX PSX (‘‘PSX’’) system. PHLX proposes to implement the rule change on a date that is at least thirty days after the date of the filing, but prior to November 30, 2011. The text of the proposed rule change is available at http://nasdaqomxphlx.cchwall street.com/nasdaqomxphlx/phlx, at PHLX’s principal office, and at the Commission’s Public Reference Room. 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 SECURITIES AND EXCHANGE COMMISSION 2 17 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Investment Company Act Release No. 29794; File No. 812–13855] 1 15 publishing this notice to solicit comments on the proposed rule change from interested persons. In order to provide enhanced functionality, PHLX is proposing to modify the functionality of its Minimum Quantity Order. Minimum Quantity Orders allow a market participant to specify a minimum share amount that the market participant seeks to obtain; accordingly, a Minimum Quantity Order will not execute unless the volume of liquidity available to execute against the order exceeds the designated minimum. A Minimum Quantity Order provides a means by which a market participant may avoid partial executions of orders at sizes that it considers inadequate to achieve its purposes. For example, a market participant seeking to sell a large position in a trading session with high volatility may use the order type to avoid selling only a small portion of the order at the price it considers acceptable. Currently, Minimum Quantity Orders must be designated with a time-in-force of System Hours Immediate or Cancel or PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 64401 Market Hours Immediate or Cancel. As a result, the order can only be used to ‘‘ping’’ the PSX book to see if there is any posted liquidity that would allow the minimum execution. PHLX is proposing to remove this restriction so that a Minimum Quantity Order could post to the book if it cannot be executed immediately. Once posted, the order will execute if an incoming order that is marketable against it would satisfy its minimum quantity requirement. A Minimum Quantity Order that posts to the book is not displayed. Upon entry, all Minimum Quantity Orders must have a size, and a minimum quantity condition, of at least one round lot. Under PSX’s unique price-size order priority, Minimum Quantity orders at a particular price will be executed after (i) Displayed Orders and (ii) NonDisplayed Orders without a minimum quantity condition and the reserve portion of Reserve Orders (‘‘NonDisplayed Interest’’) with a size of at least on [sic] round lot. As among equally priced Minimum Quantity orders, incoming orders that satisfy the minimum quantity condition will be allocated among the resting orders in the ascending order of the size of their minimum quantity condition.3 Example: The book has four minimum quantity orders to buy at $10 with the following parameters: O1: 300 shares, minimum quantity of 100 shares; O2: 200 shares, minimum quantity of 200 shares; O3: 500 shares, minimum quantity of 300 shares; O4: 1000 shares, minimum quantity of 700 shares. A marketable order to sell 600 shares is entered. 300 shares of the incoming order will be assigned to O1, and 200 shares will be assigned to O2. The remainder of the incoming order will skip O3 and O4 because their minimum quantity conditions cannot be satisfied. In the event that the shares remaining in the size of a Minimum Quantity Order following a partial execution are less than the minimum quantity specified by the market participant entering the order, the minimum quantity value of the order will be reduced to the number of shares remaining. Thus, for example, if a market participant entered a Minimum Quantity Order with a size of 1,000 and a minimum quantity of 500, and the order was marketable against a 600 share order on the book, the remaining 3 If there are two or more Minimum Quantity Orders with an equal minimum quantity condition, the System will determine the order of execution on the basis of a random function that assigns each order an equal probability of execution. E:\FR\FM\18OCN1.SGM 18OCN1 64402 Federal Register / Vol. 76, No. 201 / Tuesday, October 18, 2011 / Notices 400 shares of the Minimum Quantity Order would post to the book with a minimum quantity restriction of 400 shares. If the shares remaining in the size of a Minimum Quantity Order following a partial execution are less than one round lot, however, the minimum quantity restriction will no longer be effective. 2. Statutory Basis PHLX believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,4 in general, and with Section 6(b)(5) of the Act,5 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, PHLX believes that the change to the functioning of the Minimum Quantity Order will provide market participants with better control over their trading patterns, thereby providing them with greater potential to improve the quality of their order executions. B. Self-Regulatory Organization’s Statement on Burden on Competition PHLX 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. The changes to the Minimum Quantity Order will enhance the functionality offered by PHLX to its members, thereby promoting its competitiveness with other exchanges and non-exchange trading venues that already offer similar functionality. mstockstill on DSK4VPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant 4 15 5 15 U.S.C. 78f. U.S.C. 78f(b)(5). VerDate Mar<15>2010 16:46 Oct 17, 2011 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act 6 and Rule 19b– l4(f)(6) thereunder.7 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Phlx–2011–132 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–2011–132. 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 (http://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 6 15 7 17 Jkt 226001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). Frm 00105 Fmt 4703 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 PHLX. 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–2011–132 and should be submitted on or before November 8, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–26920 Filed 10–17–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65379; File No. SR–CBOE– 2011–079] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt a Market-Maker Trade Prevention Order September 22, 2011. Correction In notice document 2011–24866 appearing on pages 60108–60110 in the issue of September 28, 2011, make the following correction: On page 60108, in the third column, the Release No. and File No., which were inadvertently omitted from the document heading, are added to read as set forth above. [FR Doc. C1–2011–24866 Filed 10–17–11; 8:45 am] BILLING CODE 1505–01–D 8 17 Sfmt 9990 E:\FR\FM\18OCN1.SGM CFR 200.30–3(a)(12). 18OCN1

Agencies

[Federal Register Volume 76, Number 201 (Tuesday, October 18, 2011)]
[Notices]
[Pages 64401-64402]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26920]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65537; File No. SR-Phlx-2011-132]


Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Modify 
the Minimum Quantity Order

October 12, 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 September 30, 2011, NASDAQ OMX PHLX LLC (``PHLX'') 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 by PHLX. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    PHLX is filing this proposed rule change to modify the operation of 
its Minimum Quantity Order in the NASDAQ OMX PSX (``PSX'') system. PHLX 
proposes to implement the rule change on a date that is at least thirty 
days after the date of the filing, but prior to November 30, 2011. The 
text of the proposed rule change is available at http://nasdaqomxphlx.cchwallstreet.com/nasdaqomxphlx/phlx, at PHLX's principal 
office, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
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
    In order to provide enhanced functionality, PHLX is proposing to 
modify the functionality of its Minimum Quantity Order. Minimum 
Quantity Orders allow a market participant to specify a minimum share 
amount that the market participant seeks to obtain; accordingly, a 
Minimum Quantity Order will not execute unless the volume of liquidity 
available to execute against the order exceeds the designated minimum. 
A Minimum Quantity Order provides a means by which a market participant 
may avoid partial executions of orders at sizes that it considers 
inadequate to achieve its purposes. For example, a market participant 
seeking to sell a large position in a trading session with high 
volatility may use the order type to avoid selling only a small portion 
of the order at the price it considers acceptable.
    Currently, Minimum Quantity Orders must be designated with a time-
in-force of System Hours Immediate or Cancel or Market Hours Immediate 
or Cancel. As a result, the order can only be used to ``ping'' the PSX 
book to see if there is any posted liquidity that would allow the 
minimum execution. PHLX is proposing to remove this restriction so that 
a Minimum Quantity Order could post to the book if it cannot be 
executed immediately. Once posted, the order will execute if an 
incoming order that is marketable against it would satisfy its minimum 
quantity requirement. A Minimum Quantity Order that posts to the book 
is not displayed. Upon entry, all Minimum Quantity Orders must have a 
size, and a minimum quantity condition, of at least one round lot.
    Under PSX's unique price-size order priority, Minimum Quantity 
orders at a particular price will be executed after (i) Displayed 
Orders and (ii) Non-Displayed Orders without a minimum quantity 
condition and the reserve portion of Reserve Orders (``Non-Displayed 
Interest'') with a size of at least on [sic] round lot. As among 
equally priced Minimum Quantity orders, incoming orders that satisfy 
the minimum quantity condition will be allocated among the resting 
orders in the ascending order of the size of their minimum quantity 
condition.\3\
---------------------------------------------------------------------------

    \3\ If there are two or more Minimum Quantity Orders with an 
equal minimum quantity condition, the System will determine the 
order of execution on the basis of a random function that assigns 
each order an equal probability of execution.

    Example: The book has four minimum quantity orders to buy at $10 
---------------------------------------------------------------------------
with the following parameters:

O1: 300 shares, minimum quantity of 100 shares;
O2: 200 shares, minimum quantity of 200 shares;
O3: 500 shares, minimum quantity of 300 shares;
O4: 1000 shares, minimum quantity of 700 shares.

    A marketable order to sell 600 shares is entered. 300 shares of 
the incoming order will be assigned to O1, and 200 shares will be 
assigned to O2. The remainder of the incoming order will skip O3 and 
O4 because their minimum quantity conditions cannot be satisfied.

    In the event that the shares remaining in the size of a Minimum 
Quantity Order following a partial execution are less than the minimum 
quantity specified by the market participant entering the order, the 
minimum quantity value of the order will be reduced to the number of 
shares remaining. Thus, for example, if a market participant entered a 
Minimum Quantity Order with a size of 1,000 and a minimum quantity of 
500, and the order was marketable against a 600 share order on the 
book, the remaining

[[Page 64402]]

400 shares of the Minimum Quantity Order would post to the book with a 
minimum quantity restriction of 400 shares. If the shares remaining in 
the size of a Minimum Quantity Order following a partial execution are 
less than one round lot, however, the minimum quantity restriction will 
no longer be effective.
2. Statutory Basis
    PHLX believes that the proposed rule change is consistent with the 
provisions of Section 6 of the Act,\4\ in general, and with Section 
6(b)(5) of the Act,\5\ 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, PHLX believes 
that the change to the functioning of the Minimum Quantity Order will 
provide market participants with better control over their trading 
patterns, thereby providing them with greater potential to improve the 
quality of their order executions.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    PHLX 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. The changes to the 
Minimum Quantity Order will enhance the functionality offered by PHLX 
to its members, thereby promoting its competitiveness with other 
exchanges and non-exchange trading venues that already offer similar 
functionality.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
l4(f)(6) thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-Phlx-2011-132 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-2011-132. 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 (http://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 PHLX. 
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-2011-132 
and should be submitted on or before November 8, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26920 Filed 10-17-11; 8:45 am]
BILLING CODE 8011-01-P