Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule To Amend EDGA Rule 11.9, 74092-74093 [2011-30830]

Download as PDF 74092 Federal Register / Vol. 76, No. 230 / Wednesday, November 30, 2011 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65826; File No. SR–EDGA– 2011–37] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule To Amend EDGA Rule 11.9 November 23, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 17, 2011, the EDGA Exchange, Inc. (the ‘‘Exchange’’ or the ‘‘EDGA’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Item II below, which item have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to introduce an additional routing option to Rule 11.9 and amend existing routing options. The text of the proposed rule change is available on the Exchange’s Web site at www.directedge.com, on the Commission’s Web site at www.sec.gov, at the Exchange’s principal office, and at the Public Reference Room of the Commission. emcdonald on DSK5VPTVN1PROD with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange’s current list of routing options are codified in Rule 11.9(b)(3). In this filing, the Exchange proposes to amend the language of two routing options contained in Rule 11.9(b)(3) to modify the behavior of unexecuted shares and distinguish the execution path if an order is sent as a Day Order 3 versus an Immediate-or-Cancel (‘‘IOC’’) 4 order. Specifically, Rule 11.9(b)(3)(h) provides that the RDOT routing option checks the System for available shares and then is sent sequentially to destinations on the System routing table. If shares remain unexecuted after routing, they are sent to the NYSE. The Exchange proposes to modify this strategy to provide that any unexecuted shares can be re-routed by the NYSE and any remainder after routing will be posted to the NYSE book, unless otherwise instructed by the User. The phrase ‘‘unless otherwise instructed by the User’’ is proposed to be added to the rule to account for the fact that if a User sends an IOC order, it will not post to the NYSE book. Rule 11.9(b)(3)(i) provides that the RDOX routing option checks the System for available shares and then is sent to the NYSE. The Exchange proposes to amend this strategy to provide that the unexecuted shares can be re-routed by the NYSE and any remainder after routing will be posted to the NYSE book, unless otherwise instructed by the User. The phrase ‘‘unless otherwise instructed by the User’’ is proposed to be added to the rule to account for the fact that if a User sends an IOC order, it will not post to the NYSE book. The Exchange also proposes to amend Rule 11.9(b)(3)(n), which currently has an incorrect cross reference to the ROUT routing option as being in paragraph (h) in its description. The Exchange proposes to correct the citation to cross reference paragraph (c) for the ROUT routing option. The Exchange believes the proposed modification of the routing options described above will provide additional specificity to the Exchange’s rulebook regarding routing strategies and will further enhance transparency with respect to Exchange routing offerings. 2. Basis The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,5 which requires the rules of an exchange to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect 3 As defined in Rule 11.5(b)(2). defined in Rule 11.5(b)(1). 5 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Mar<15>2010 17:30 Nov 29, 2011 4 As Jkt 226001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 investors and the public interest. The proposed changes to the two routing options described above will provide additional specificity to the Exchange’s rulebook regarding routing strategies and will further enhance transparency with respect to Exchange routing offerings. B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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– 4(f)(6)(iii) thereunder.7 A proposed rule change filed under 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.8 However, Rule 19b– 4(f)(6)(iii) 9 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Exchange notes that waiver of this requirement will allow the Exchange to offer Exchange Users the modified routing strategies, on or about December 5, 2011. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public 6 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6)(iii). 8 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 19b–4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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. 9 Id. 7 17 E:\FR\FM\30NON1.SGM 30NON1 Federal Register / Vol. 76, No. 230 / Wednesday, November 30, 2011 / Notices interest because such waiver would allow the modified routing strategies to become available on or about December 5, 2011, and would immediately provide additional specificity to the Exchange’s rules regarding routing strategies and further enhance transparency with respect to Exchange routing offerings. For this reason, the Commission designates the proposed rule change to be operative upon filing with the Commission.10 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. 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–EDGA– 2011–37 and should be submitted on or before December 21, 2011. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. 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 email to rulecomments@sec.gov. Please include File Number SR–EDGA–2011–37 on the subject line. emcdonald on DSK5VPTVN1PROD with NOTICES 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–EDGA–2011–37. 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 (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 10 For the 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 17:30 Nov 29, 2011 Jkt 226001 74093 text of the proposed rule change is attached as Exhibit 5 3 and is available on the Exchange’s Web site at http:// www.directedge.com, at the Exchange’s principal office, at the Public Reference Room of the Commission, and at http:// 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 Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B and C below, of the most significant aspects of such statements. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION 1. Purpose [FR Doc. 2011–30830 Filed 11–29–11; 8:45 am] [Release No. 34–65823; File No. SR–EDGX– 2011–36] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend EDGX Rule 11.14 to Exclude from the Pilot Rule All Rights and Warrants November 23, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 22, 2011, the EDGX Exchange, Inc. (the ‘‘Exchange’’ or the ‘‘EDGX’’) 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 the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend EDGX Rule 11.14 to exclude from the pilot rule all rights and warrants. The 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 The Exchange proposes to amend EDGX Rule 11.14(d) to exclude all rights and warrants from the single stock circuit breaker under the rule. The Commission approved EDGX Rule 11.14 on a pilot basis on June 10, 2010 to provide for trading pauses in individual securities due to extraordinary market volatility (‘‘Trading Pause’’) in all securities included within the S&P 500® Index (‘‘S&P 500’’) (‘‘Pause Pilot’’).4 The Exchange noted in its filing to adopt EDGX Rule 11.14 that during the Pause Pilot period it would continue to assess whether additional securities need to be added and whether the parameters of EDGX Rule 11.14 would need to be modified to accommodate trading characteristics of different securities. The Exchange subsequently received approval to add to the Pause Pilot the securities included in the Russell 1000® Index (‘‘Russell 1000’’) and a specified 3 The Commission notes that Exhibit 5 is attached to the rule filing, but not to this Notice. 4 The Commission approved the Pause Pilot for all equities exchanges and FINRA. See Securities Exchange Act Release No. 62252 (June 10, 2010), 75 FR 34186 (June 16, 2010) (File Nos. SR–BATS– 2010–014; SR–EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010–037; SR–ISE–2010–48; SR–NYSE– 2010–39; SR–NYSEAmex–2010–46; SR–NYSEArca– 2010–41; SR–NASDAQ–2010–061; SR–CHX–2010– 10; SR–NSX–2010–05; and SR–CBOE–2010–047) and Securities Exchange Act Release No. 62251 (June 10, 2010), 75 FR 34183 (June 16, 2010) (SR– FINRA–2010–025). E:\FR\FM\30NON1.SGM 30NON1

Agencies

[Federal Register Volume 76, Number 230 (Wednesday, November 30, 2011)]
[Notices]
[Pages 74092-74093]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30830]



[[Page 74092]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65826; File No. SR-EDGA-2011-37]


Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule To Amend EDGA Rule 
11.9

November 23, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on November 17, 2011, the EDGA Exchange, Inc. (the ``Exchange'' or 
the ``EDGA'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Item II 
below, which item have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 proposes to introduce an additional routing option to 
Rule 11.9 and amend existing routing options. The text of the proposed 
rule change is available on the Exchange's Web site at 
www.directedge.com, on the Commission's Web site at www.sec.gov, at the 
Exchange's principal office, and at the Public Reference Room of the 
Commission.

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

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

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

1. Purpose
    The Exchange's current list of routing options are codified in Rule 
11.9(b)(3). In this filing, the Exchange proposes to amend the language 
of two routing options contained in Rule 11.9(b)(3) to modify the 
behavior of unexecuted shares and distinguish the execution path if an 
order is sent as a Day Order \3\ versus an Immediate-or-Cancel 
(``IOC'') \4\ order.
---------------------------------------------------------------------------

    \3\ As defined in Rule 11.5(b)(2).
    \4\ As defined in Rule 11.5(b)(1).
---------------------------------------------------------------------------

    Specifically, Rule 11.9(b)(3)(h) provides that the RDOT routing 
option checks the System for available shares and then is sent 
sequentially to destinations on the System routing table. If shares 
remain unexecuted after routing, they are sent to the NYSE. The 
Exchange proposes to modify this strategy to provide that any 
unexecuted shares can be re-routed by the NYSE and any remainder after 
routing will be posted to the NYSE book, unless otherwise instructed by 
the User. The phrase ``unless otherwise instructed by the User'' is 
proposed to be added to the rule to account for the fact that if a User 
sends an IOC order, it will not post to the NYSE book.
    Rule 11.9(b)(3)(i) provides that the RDOX routing option checks the 
System for available shares and then is sent to the NYSE. The Exchange 
proposes to amend this strategy to provide that the unexecuted shares 
can be re-routed by the NYSE and any remainder after routing will be 
posted to the NYSE book, unless otherwise instructed by the User. The 
phrase ``unless otherwise instructed by the User'' is proposed to be 
added to the rule to account for the fact that if a User sends an IOC 
order, it will not post to the NYSE book.
    The Exchange also proposes to amend Rule 11.9(b)(3)(n), which 
currently has an incorrect cross reference to the ROUT routing option 
as being in paragraph (h) in its description. The Exchange proposes to 
correct the citation to cross reference paragraph (c) for the ROUT 
routing option.
    The Exchange believes the proposed modification of the routing 
options described above will provide additional specificity to the 
Exchange's rulebook regarding routing strategies and will further 
enhance transparency with respect to Exchange routing offerings.
2. Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act,\5\ which requires the rules of an 
exchange to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system and, in general, to protect investors and the 
public interest. The proposed changes to the two routing options 
described above will provide additional specificity to the Exchange's 
rulebook regarding routing strategies and will further enhance 
transparency with respect to Exchange routing offerings.
---------------------------------------------------------------------------

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

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

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

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

    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-
4(f)(6)(iii) thereunder.\7\
---------------------------------------------------------------------------

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

    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\8\ However, 
Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has requested that the Commission 
waive the 30-day operative delay. The Exchange notes that waiver of 
this requirement will allow the Exchange to offer Exchange Users the 
modified routing strategies, on or about December 5, 2011. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public

[[Page 74093]]

interest because such waiver would allow the modified routing 
strategies to become available on or about December 5, 2011, and would 
immediately provide additional specificity to the Exchange's rules 
regarding routing strategies and further enhance transparency with 
respect to Exchange routing offerings. For this reason, the Commission 
designates the proposed rule change to be operative upon filing with 
the Commission.\10\
---------------------------------------------------------------------------

    \8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
    \9\ Id.
    \10\ For the 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-EDGA-2011-37 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-EDGA-2011-37. 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 (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 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-EDGA-2011-37 and should be 
submitted on or before December 21, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30830 Filed 11-29-11; 8:45 am]
BILLING CODE 8011-01-P