Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Perform a Test of Routing Functionality, 72467-72469 [2011-30178]
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Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
be included in the record pursuant to
FINRA Rule 9261(a), which could be
based on fairness concerns.
Third, the proposed rule change
protects the public interest by requiring
an attorney seeking to withdraw from a
disciplinary case to file a motion (which
will provide contact information for the
party previously represented) before
withdrawal would be approved. The
proposed revision seeks to reduce any
uncertainly as to whether a respondent
is represented by an attorney. By
requiring an attorney to file a motion for
withdrawal, adjudicators and the parties
will know that an attorney continues to
represent the respondent until the
motion is granted. This proposed
revision promotes an effective
disciplinary system in which cases can
proceed to a hearing. By furthering an
effective disciplinary system, the
proposed rule change is consistent with
the public interest in imposing
disciplinary sanctions on FINRA firms
and associated persons who violate
FINRA Rules or the federal securities
laws.
For each of these reasons, FINRA
believes that the proposed rule change
will improve the process and
procedures that govern the adjudication
of disciplinary cases and expedited
proceedings.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA 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.
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.
sroberts on DSK5SPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
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17:03 Nov 22, 2011
Jkt 226001
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.17
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30255 Filed 11–22–11; 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 email to rulecomments@sec.gov. Please include File
Number SR–FINRA–2011–044 on the
subject line.
Paper Comments
[Release No. 34–65779; File No. SR–Phlx–
2011–152]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Perform a
Test of Routing Functionality
November 17, 2011.
• 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–FINRA–2011–044. This file
number should be included on the
subject line if email 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
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–FINRA–2011–044 and
should be submitted on or before
December 14, 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 November
10, 2011, NASDAQ OMX PHLX LLC
(the ‘‘Exchange’’ or ‘‘PHLX’’) 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 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
PHLX is filing this proposed rule
change to allow a limited use of its
broker-dealer affiliate, Nasdaq
Execution Services LLC (‘‘NES’’), to
perform a test of routing functionality to
be introduced by NASDAQ OMX PSX
(‘‘PSX’’). PHLX proposes to implement
the rule change prior to November 14,
2011. The text of the proposed rule
change is available at https://
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
1 15
17 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00081
Fmt 4703
72467
Sfmt 4703
2 17
E:\FR\FM\23NON1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
23NON1
72468
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
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
sroberts on DSK5SPTVN1PROD with NOTICES
1. Purpose
As provided in Rule 3315, PSX
recently adopted rules that will allow it
to route orders to other trading venues
for execution.3 Routing will be
performed by NES, a registered brokerdealer that is an affiliate of the
Exchange. In order to ensure that the
routing functionality is operating
properly prior to making it available to
members, the Exchange proposes to use
NES to perform test trades in an actual
security, so as to track the performance
of the systems to be used by the
Exchange from order entry to clearance
and settlement.
The test will be performed through
two buy orders for 100 shares in a
highly liquid security, such as the
Power Shares QQQ Trust. Upon the
execution of each buy order, NES will
enter an offsetting sell order in the same
security for the same quantity, in order
to close out the test position and
minimize financial impact on the
Exchange. For the buy orders, NES will
submit a routable marketable limit order
with a time-in-force of Immediate or
Cancel to the Exchange, with
instructions to route to a directed away
market. The Exchange will then deliver
the order to NES, as the routing broker,
which will route to the designated away
market and receive an execution back.
The first offsetting sell order will be
handled in a similar manner. The
second offsetting sell order will be
executed at the Exchange itself, to
ensure that the Exchange’s systems are
correctly distinguishing between routed
and non-routed trades. To the extent
that the offsetting trades require the
Exchange to pay out funds, the funds
will be provided out of the cash
accounts of the Exchange; to the extent
that the trades result in a profit, the
funds will be deposited in the cash
accounts of the Exchange.
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
3 Securities Exchange Act Release No. 65469
(October 3, 2011), 76 FR 62486 (October 7, 2011)
(SR–Phlx–2011–108).
4 15 U.S.C. 78f.
5 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
17:03 Nov 22, 2011
Jkt 226001
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 will allow it to
perform adequate testing of its systems
for routing member orders before such
systems become operational. The
Exchange believes that adequate testing
of market functionality is an important
component of the operation of the
national market system.
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.
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 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 6 and Rule 19b–
4(f)(6) thereunder.7
The Exchange has requested that the
Commission waive the 30-day operative
delay. The Exchange believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it would allow the Exchange to
6 15
U.S.C. 78s(b)(3)(A).
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.
7 17
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
conduct a limited test to assess the
performance of its routing functionality
and related systems prior to
implementation and use by its members.
The Exchange believes that a limited
test prior to the launch of its routing
functionality will assist the Exchange in
uncovering and fixing any potential
‘‘bugs’’ so as to increase the likelihood
of a successful implementation. 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 Exchange to conduct a limited
test without undue delay to ensure that
its routing functionality and related
systems are operating properly prior to
implementation. Therefore, the
Commission designates the proposal
operative upon filing.8
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 email to rulecomments@sec.gov. Please include File
Number SR–Phlx–2011–152 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–2011–152. This file
number should be included on the
subject line if email 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/
8 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).
E:\FR\FM\23NON1.SGM
23NON1
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
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 Number SR–Phlx–
2011–152 and should be submitted on
or before December 14, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30178 Filed 11–22–11; 8:45 am]
BILLING CODE 8011–01–P
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
Rule 52.8 to clarify that CBOE Stock
Exchange (‘‘CBSX’’), CBOE’s stock
trading facility, will only process roundlot orders 3 of HOLDRS Trust Issued
Receipts (‘‘HOLDRS’’) that trade on
CBSX. The text of the proposed rule
change is available on the Exchange’s
Web site (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–65781; File No. SR–CBOE–
2011–101]
1. Purpose
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Clarify That CBSX Will
Process Only Round-Lot Orders of
HOLDRS
sroberts on DSK5SPTVN1PROD with NOTICES
November 17, 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 November
15, 2011, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) 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
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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17:03 Nov 22, 2011
Jkt 226001
Rule 52.8 states that odd-lot orders
(including the odd-lot potion of a
mixed-lot order) are processed in the
same manner as are round-lot orders,
except (i) If an incoming odd-lot order
trades against a quote in the CBSX Book,
the new quantity remaining in the quote
will be rounded down to the nearest
lower round-lot amount (zero or
multiple of 100) for display purposes,
with the remaining odd-lot amount
being cancelled, or (ii) if an incoming
order trades against a limit order resting
on the CBSX Book and an odd-lot
amount remains from the limit order
resting on the CBSX Book, that odd-lot
amount will remain in the system
eligible for execution but will not be
displayed.
3 A ‘‘round-lot’’ order is an order for a quantity
that is a multiple of 100 (e.g. 100, 400, 1200). An
‘‘odd-lot’’ order is an order for a quantity that is less
than 100. A ‘‘mixed-lot’’ order is an order for a
quantity that is greater than 100 but not a multiple
of 100 (e.g. 135, 372, 1126).
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
72469
HOLDRS are Trust Issued Receipts
that trade on CBSX and represent an
investor’s beneficial ownership of a
specified group of stocks in various
industries, sectors or groups.4 Currently,
CBSX processes odd-lot and mixed-lot
orders of HOLDRS in accordance with
Rule 52.8, as described above. However,
the prospectuses describing the terms of
HOLDRS provide that investors may
only acquire, hold, transfer, and
surrender a round-lot of HOLDRS.5 The
purpose of the proposed rule change is
to amend Rule 52.8 to state that CBSX
will only process round-lot orders of
HOLDRS that trade on CBSX in
accordance with the trading terms of
HOLDRS. CBSX will no longer accept
odd-lot or mixed-lot orders of HOLDRS
it receives.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) of the Act 6 in general and furthers
the objectives of Section 6(b)(5) 7 in
particular in that it is designed to
prevent fraudulent and manipulative
acts and practices and to promote just
and equitable principles of trade, and in
general to protect investors and the
public interest. Specifically, the
Exchange believes that the proposed
rule change serves to foster investor
protection by ensuring that investors not
only are aware of this restriction on
transactions in HOLDRS but also
comply with this restriction going
forward, as CBSX will no longer accept
transactions that do not.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CBOE 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 solicited
or received with respect to the proposed
rule change.
4 The following is a list of current outstanding
HOLDRS: Biotech (BBH), Broadband (BDH), B2B
Internet (BHH), Europe 2001 (EKH), Internet (HHH),
Internet Architecture (IAH), Internet Infrastructure
(IIH), Market 2000+ (MKH), Oil Services (OIH),
Pharmaceutical (PPH), Regional Bank (RKH), Retail
(RTH), Semiconductor (SMH), Software (SWH),
Telecom (TTH), Utilities (UTH), and Wireless
(WMH).
5 The prospectuses also provide, however, that
bid and ask prices are quoted per single HOLDR.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
E:\FR\FM\23NON1.SGM
23NON1
]]>Agencies
[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72467-72469]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30178]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65779; File No. SR-Phlx-2011-152]
Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Perform a
Test of Routing Functionality
November 17, 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 November 10, 2011, NASDAQ OMX PHLX LLC (the ``Exchange'' or
``PHLX'') 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 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 allow a limited use of
its broker-dealer affiliate, Nasdaq Execution Services LLC (``NES''),
to perform a test of routing functionality to be introduced by NASDAQ
OMX PSX (``PSX''). PHLX proposes to implement the rule change prior to
November 14, 2011. The text of the proposed rule change is available at
https://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
[[Page 72468]]
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
As provided in Rule 3315, PSX recently adopted rules that will
allow it to route orders to other trading venues for execution.\3\
Routing will be performed by NES, a registered broker-dealer that is an
affiliate of the Exchange. In order to ensure that the routing
functionality is operating properly prior to making it available to
members, the Exchange proposes to use NES to perform test trades in an
actual security, so as to track the performance of the systems to be
used by the Exchange from order entry to clearance and settlement.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 65469 (October 3, 2011),
76 FR 62486 (October 7, 2011) (SR-Phlx-2011-108).
---------------------------------------------------------------------------
The test will be performed through two buy orders for 100 shares in
a highly liquid security, such as the Power Shares QQQ Trust. Upon the
execution of each buy order, NES will enter an offsetting sell order in
the same security for the same quantity, in order to close out the test
position and minimize financial impact on the Exchange. For the buy
orders, NES will submit a routable marketable limit order with a time-
in-force of Immediate or Cancel to the Exchange, with instructions to
route to a directed away market. The Exchange will then deliver the
order to NES, as the routing broker, which will route to the designated
away market and receive an execution back. The first offsetting sell
order will be handled in a similar manner. The second offsetting sell
order will be executed at the Exchange itself, to ensure that the
Exchange's systems are correctly distinguishing between routed and non-
routed trades. To the extent that the offsetting trades require the
Exchange to pay out funds, the funds will be provided out of the cash
accounts of the Exchange; to the extent that the trades result in a
profit, the funds will be deposited in the cash accounts of the
Exchange.
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 will allow it to perform adequate testing of its
systems for routing member orders before such systems become
operational. The Exchange believes that adequate testing of market
functionality is an important component of the operation of the
national market system.
---------------------------------------------------------------------------
\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.
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 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 \6\ and Rule 19b-
4(f)(6) thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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 waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because it would allow the Exchange to conduct a
limited test to assess the performance of its routing functionality and
related systems prior to implementation and use by its members. The
Exchange believes that a limited test prior to the launch of its
routing functionality will assist the Exchange in uncovering and fixing
any potential ``bugs'' so as to increase the likelihood of a successful
implementation. 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 Exchange to conduct a
limited test without undue delay to ensure that its routing
functionality and related systems are operating properly prior to
implementation. Therefore, the Commission designates the proposal
operative upon filing.\8\
---------------------------------------------------------------------------
\8\ For purposes only of waiving the 30-day operative delay, the
Commission has considered
the proposed rule's impact on efficiency, competition, and
capital formation. See 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments:
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-Phlx-2011-152 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-2011-152. This file
number should be included on the subject line if email 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/
[[Page 72469]]
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 Number SR-
Phlx-2011-152 and should be submitted on or before December 14, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30178 Filed 11-22-11; 8:45 am]
BILLING CODE 8011-01-P
