Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Perform a Test of Routing Functionality, 72486-72488 [2011-30179]
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Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
Parts A and B. The remaining text will
reflect the existing fees.
2. Statutory Basis
NASDAQ believes that the proposed
rule changes are consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which
NASDAQ operates or controls.
The Exchange believes that the
amendment to the BATS Professional
Routing Fee is reasonable because it
seeks to recoup costs that are incurred
by the Exchange when routing
Professional orders to BATS on behalf of
its members. Each destination market’s
transaction charge varies and there is a
standard clearing charge for each
transaction incurred by the Exchange.
The Exchange believes that the
proposed Professional Routing Fee
would enable the Exchange to recover
the professional taker fee assessed by
BATS, plus clearing fees for the
execution of Professional orders. The
Exchange also believes that the
proposed Routing Fee is equitable and
not unfairly discriminatory because it
would be uniformly applied to all
Professionals.
In addition, the Exchange believes
that the proposed amendments to
Exchange Rule 7053 are reasonable,
equitable and not unfairly
discriminatory because the amendments
seek to remove outdated and
unnecessary language from the Rule
text. The amendments will clarify the
current Rule for all NOM Participants.
NASDAQ is one of nine options
market in the national market system for
standardized options. Joining NASDAQ
and electing to trade options is entirely
voluntary. Under these circumstances,
NASDAQ’s fees must be competitive
and low in order for NASDAQ to attract
order flow, execute orders, and grow as
a market. NASDAQ thus believes that its
fees are fair and reasonable and
consistent with the Exchange Act.
sroberts on DSK5SPTVN1PROD with NOTICES
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and paragraph
(f)(2) of Rule 19b–4 9 thereunder. 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–NASDAQ–2011–151 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–NASDAQ–2011–151. 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 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–
NASDAQ–2011–151 and should be
submitted on or before December 14,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30191 Filed 11–22–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65780; File No. SR–BX–
2011–076]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; 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 BX, Inc. (the
‘‘Exchange’’ or ‘‘BX’’) 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
BX is filing this proposed rule change
to allow a limited use of its brokerdealer affiliate, Nasdaq Execution
10 17
6 15
U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
17:03 Nov 22, 2011
8 15
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
Jkt 226001
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
Services LLC (‘‘NES’’), to perform a test
of routing functionality to be introduced
by the Exchange. BX proposes to
implement the rule change prior to
November 14, 2011. The text of the
proposed rule change is available at
https://nasdaqomxbx.cchwallstreet.com,
at BX’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.
sroberts on DSK5SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
As provided in Rule 4758, BX
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.
3 Securities Exchange Act Release No. 65470
(October 3, 2011), 76 FR 62489 (October 7, 2011)
(SR–BX–2011–048).
VerDate Mar<15>2010
17:03 Nov 22, 2011
Jkt 226001
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
BX 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, BX 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
BX 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
4 15
5 15
PO 00000
U.S.C. 78f.
U.S.C. 78f(b)(5).
Frm 00101
Fmt 4703
Sfmt 4703
72487
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
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:
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.
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).
7 17
E:\FR\FM\23NON1.SGM
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72488
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
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–BX–2011–076 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.
sroberts on DSK5SPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–BX–2011–076. 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 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–
2011–076 andshould 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. 2011–30179 Filed 11–22–11; 8:45 a.m.]
BILLING CODE 8011–01–P
9 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
17:03 Nov 22, 2011
Jkt 226001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65774; File No. SR–CBOE–
2011–108]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Expand the Weeklys
Program
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 14, 2011, the Chicago Board
Options Exchange, Incorporated (the
‘‘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 Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
Rules 5.5 and 24.9 to increase the
number of option classes on which
Short Term Options Series (‘‘Weekly
options’’) may be opened in the
Exchange’s Short Term Option Series
Program (‘‘Weeklys Program’’) from 15
to 25 classes.5 The text of the proposed
rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 This rule filing assumes that proposed changes
to Rules 5.5(d)(1) and 24.9(A)(i) contained in a
separate rule filing are effective. See Securities
Exchange Act Release No. 65445 (September 30,
2011), 75 FR 62102 (October 6, 2011) (noticing SR–
CBOE–2011–086, which proposes to increase the
number of series permitted per class in the Weeklys
Program from 20 series to 30 series).
2 17
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
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 purpose of this proposed rule
change is to amend Rules 5.5 and 24.9
by increasing the number of option
classes on which Weekly options may
be opened in the Exchange’s Weeklys
Program.6 Currently, the Exchange may
select up to 15 currently listed option
classes on which Weekly options may
be opened in the Weeklys Program.7
The Exchange is proposing to increase
this to a total of 25 classes on which
Weekly options may be opened for
trading. This is a competitive filing and
is based on certain aspects of filings
previously submitted by International
Securities Exchange, LLC (‘‘ISE’’), The
NASDAQ Stock Market LLC for the
NASDAQ Options Market (‘‘NOM’’),
and NASDAQ OMX PHLX, Inc.
(‘‘PHLX’’).8
6 On July 12, 2005, the Commission approved the
Weeklys Program on a pilot basis. See Securities
Exchange Act Release No. 52011 (July 12, 2005), 70
FR 41451 (July 19, 2005) (SR–CBOE–2004–63). The
Weeklys Program was made permanent on April 27,
2009. See Securities Exchange Act Release No.
59824 (April 27, 2009), 74 FR 20518 (May 4, 2009)
(SR–CBOE–2009–018).
7 The Exchange previously increased the total
number of classes on which Weekly options may be
opened from 5 to 15 classes. See Securities
Exchange Act Release No. 63877 (February 9, 2011),
76 FR 8794 (February 15, 2011) (SR–CBOE–2011–
012) (Notice of Filing and Immediate Effectiveness
of Proposed Rule Change to Expand the Short Term
Option Series Program).
8 See Securities Exchange Act Release Nos. 65503
(October 6, 2011), 76 FR 63691 (October 13, 2011)
(SR–ISE–2011–60); 65528 (October 11, 2011), 76 FR
64142 (October 17, 2011) (SR–NASDAQ–2011–138)
and 65529 (October 11, 2011), 76 FR 64144 (October
17, 2011) (SR–PHLX–2011–131).
CBOE notes that on September 19, 2011, it
formally submitted a filing to the Commission to
increase the number of strikes that may be listed per
class that participates in the Weeklys Program. That
filing was noticed by the Commission on September
30, 2011. See Securities Exchange Act Release No.
65445 (September 30, 2011), 75 FR 62102 (October
6, 2011) (noticing SR–CBOE–2011–086). On
September 23, 2011, ISE formally submitted a filing
to the Commission similarly proposing to increase
the number of strikes per class that participates in
ISE’s Weeklys Program. However, in that filing ISE
also requested to increase the number of classes
(from 15 to 25) that are eligible to participate in
ISE’s Weekly Program. CBOE’s current filing is
competitive in that it seeks to permit CBOE to
increase the number of classes that may participate
in its Weeklys Program at the same time similar
changes become operative at other exchanges.
E:\FR\FM\23NON1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72486-72488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30179]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65780; File No. SR-BX-2011-076]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; 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 BX, Inc. (the ``Exchange'' or ``BX'')
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
BX is filing this proposed rule change to allow a limited use of
its broker-dealer affiliate, Nasdaq Execution
[[Page 72487]]
Services LLC (``NES''), to perform a test of routing functionality to
be introduced by the Exchange. BX proposes to implement the rule change
prior to November 14, 2011. The text of the proposed rule change is
available at https://nasdaqomxbx.cchwallstreet.com, at BX'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
As provided in Rule 4758, BX 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. 65470 (October 3, 2011),
76 FR 62489 (October 7, 2011) (SR-BX-2011-048).
---------------------------------------------------------------------------
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
BX 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, BX 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
BX 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\
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\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:
[[Page 72488]]
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-BX-2011-076 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-2011-076. 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 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-2011-076 and should be
submitted on or before December 14, 2011.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30179 Filed 11-22-11; 8:45 a.m.]
BILLING CODE 8011-01-P
