Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing of Proposed Rule Change To Amend EDGA Rule 11.9, 77877-77878 [2011-32066]

Download as PDF Federal Register / Vol. 76, No. 240 / Wednesday, December 14, 2011 / Notices 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–MSRB– 2011–09 and should be submitted on or before January 30, 2012. Rebuttal comments should be submitted by February 13, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.94 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–32087 Filed 12–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65917; File No. SR–Phlx– 2011–143] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Withdrawal of Proposed Rule Change To Modify Commentary .01 to Rule 1009 Regarding Criteria for Listing an Option on an Underlying Covered Security December 8, 2011. On October 24, 2011, NASDAQ OMX PHLX LLC (‘‘Phlx’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 1 and Rule 19b–4 thereunder 2 to amend Commentary .01 to Rule 1009 to modify the criteria for listing options on an underlying covered security. Notice of the proposed rule change was published in the Federal Register on November 14, 2011.3 The Commission received two comment letters on the proposed rule change.4 On December 2, 2011, Phlx withdrew the proposed rule change (SR–Phlx–2011–143). 94 17 CFR 200.30–3(a)(57). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 65706 (November 8, 2011), 76 FR 70520. 4 See letters to Elizabeth M. Murphy, Secretary, Commission, from Jenny L. Klebes, Senior Attorney, Legal Division, Chicago Board Options Exchange, dated November 25, 2011; and Janet McGinness, Senior Vice President—Legal & Corporate Secretary, Legal & Government Affairs, NYSE Euronext, dated December 1, 2011. mstockstill on DSK4VPTVN1PROD with NOTICES 1 15 VerDate Mar<15>2010 15:14 Dec 13, 2011 Jkt 226001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–32067 Filed 12–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65911; File No. SR–EDGA– 2011–40] Self-Regulatory Organizations; EDGA Exchange, Inc.; Notice of Filing of Proposed Rule Change To Amend EDGA Rule 11.9 December 8, 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 December 2, 2011, the EDGA Exchange, Inc. (‘‘Exchange’’ or ‘‘EDGA’’) 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 The Exchange proposes to amend certain existing routing options contained in Rule 11.9 to provide Users 3 with more flexible routing options. The text of the proposed rule change is available on the Exchange’s Web site at https://www.directedge.com, 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. 5 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 As defined in Rule 1.5(cc). 1 15 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 77877 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 several routing options contained in Rule 11.9(b)(3) to allow Users more discretion if shares remain unexecuted after routing. In particular, Rule 11.9(b)(3) is proposed to be amended to provide that Users may elect that any remainder of an order be posted to the EDGX Exchange, Inc. (‘‘EDGX’’) for any of the routing options listed in the rule, except those in paragraphs (a) and (n)–(q) 4. Currently, Rule 11.9(b)(3)(d) provides that the INET routing strategy checks the System for available shares and then is sent to Nasdaq. If shares remain unexecuted after routing, they are posted on the Nasdaq book. The Exchange proposes to modify this language to subject this posting to Nasdaq to a User instruction as proposed in the introductory paragraph of Rule 11.9(b)(3). This User instruction would thus enable the remainder to post to EDGX instead of Nasdaq. Currently, Rule 11.9(b)(3)(j) provides that the ROLF routing strategy checks the System for available shares and then is sent to LavaFlow ECN. The Exchange proposes to modify this strategy to state that any remainder will be posted to LavaFlow ECN, unless otherwise instructed by the User. This User instruction would thus enable the User to direct the remainder to post to EDGX instead of LavaFlow ECN. Rule 11.9(b)(3)(m) provides that the IOCT 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 as an immediate or cancel (IOC) 5 order to EDGX. If shares further remain unexecuted, they are posted on the EDGA Book, unless otherwise instructed by the User. The Exchange proposes to modify this strategy to delete the phrase ‘‘sent as an IOC order’’ since a Day Order 6 or an IOC order could be sent to EDGX. This change would thus enable 4 Routing options listed in Rules 11.9(b)(3)(a) and (n)–(q) are not altered as a result of this amendment. The routing option in Rule 11.9(b)(3)(a) already posts to EDGX and no amendment to the rule is needed as no discretion is provided to the User. The routing options in Rules 11.9(b)(3)(n)–(q) do not have the option to post the remainder of an order to EDGX. 5 As defined in Rule 11.5(b)(1). 6 As defined in Rule 11.5(b)(2). E:\FR\FM\14DEN1.SGM 14DEN1 77878 Federal Register / Vol. 76, No. 240 / Wednesday, December 14, 2011 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES the User to direct the remainder to post to EDGX instead of EDGA. The Exchange also proposes to amend Rule 11.9(b)(3)(a), which currently states that any shares that remain unexecuted after routing are posted to ‘‘the EDGX Exchange book’’, to eliminate the word ‘‘Exchange’’. In light of the routing options modifications proposed herein, paragraph 11.9(b)(3) would also be modified to define EDGX at the outset and state that except for the routing options provided in paragraphs (a) and (n)–(q), Users can post any remainder of an order to EDGX. Accordingly, the reference to the word ‘‘Exchange’’ in Rule 11.9(b)(3)(a) would be redundant. The Exchange believes the proposed modification of the routing options described above will provide market participants with greater flexibility in routing orders without having to develop their own complicated routing strategies. In addition, the varied routing options allow Users to take primary advantage of EDGA’s low cost fee structure to remove liquidity on EDGA and if applicable, other destinations. Yet, the User retains the option of posting the remainder of the order to EDGX. Assuming the Commission approves the proposed rule change, the Exchange will notify its Members in an information circular of the exact implementation date(s) of this rule change, which will be no later than March 31, 2012. the option of posting the remainder of the order to EDGX. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act,7 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 change to introduce the routing options described above will provide market participants with greater flexibility in routing orders without having to develop their own order routing strategies. In addition, it will provide additional clarity and specificity to the Exchange’s rulebook regarding routing strategies and will further enhance transparency with respect to Exchange routing offerings. Finally, the varied routing options allow Users to take primary advantage of EDGA’s low cost fee structure to remove liquidity on EDGA and if applicable, other destinations. Yet, the User retains 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 on official business days between 10 a.m. and 3 p.m. Copies of the filing will also 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– 2011–40 and should be submitted on or before January 4, 2012. IV. Solicitation of Comments 7 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 15:14 Dec 13, 2011 Jkt 226001 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 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 the proposed rule change, or (b) Institute proceedings to determine whether the proposed rule change should be disapproved. 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 No. SR–EDGA–2011–40 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–2011–40. This file number should be included on the subject line if email is used. To help the Commission process and review your PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2011–32066 Filed 12–13–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65914; File No. SR–CBOE– 2011–114] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Proposed Rule Change Related to Complex Order Processing in Hybrid 3.0 Classes December 8, 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 29, 2011, the Chicago Board Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II, which Items have been prepared by the Exchange. The Commission is 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\14DEN1.SGM 14DEN1

Agencies

[Federal Register Volume 76, Number 240 (Wednesday, December 14, 2011)]
[Notices]
[Pages 77877-77878]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32066]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65911; File No. SR-EDGA-2011-40]


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

December 8, 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 December 2, 2011, the EDGA Exchange, Inc. (``Exchange'' or ``EDGA'') 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend certain existing routing options 
contained in Rule 11.9 to provide Users \3\ with more flexible routing 
options. The text of the proposed rule change is available on the 
Exchange's Web site at https://www.directedge.com, at the Exchange's 
principal office and at the Public Reference Room of the Commission.
---------------------------------------------------------------------------

    \3\ As defined in Rule 1.5(cc).
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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 several 
routing options contained in Rule 11.9(b)(3) to allow Users more 
discretion if shares remain unexecuted after routing. In particular, 
Rule 11.9(b)(3) is proposed to be amended to provide that Users may 
elect that any remainder of an order be posted to the EDGX Exchange, 
Inc. (``EDGX'') for any of the routing options listed in the rule, 
except those in paragraphs (a) and (n)-(q) \4\.
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    \4\ Routing options listed in Rules 11.9(b)(3)(a) and (n)-(q) 
are not altered as a result of this amendment. The routing option in 
Rule 11.9(b)(3)(a) already posts to EDGX and no amendment to the 
rule is needed as no discretion is provided to the User. The routing 
options in Rules 11.9(b)(3)(n)-(q) do not have the option to post 
the remainder of an order to EDGX.
---------------------------------------------------------------------------

    Currently, Rule 11.9(b)(3)(d) provides that the INET routing 
strategy checks the System for available shares and then is sent to 
Nasdaq. If shares remain unexecuted after routing, they are posted on 
the Nasdaq book. The Exchange proposes to modify this language to 
subject this posting to Nasdaq to a User instruction as proposed in the 
introductory paragraph of Rule 11.9(b)(3). This User instruction would 
thus enable the remainder to post to EDGX instead of Nasdaq.
    Currently, Rule 11.9(b)(3)(j) provides that the ROLF routing 
strategy checks the System for available shares and then is sent to 
LavaFlow ECN. The Exchange proposes to modify this strategy to state 
that any remainder will be posted to LavaFlow ECN, unless otherwise 
instructed by the User. This User instruction would thus enable the 
User to direct the remainder to post to EDGX instead of LavaFlow ECN.
    Rule 11.9(b)(3)(m) provides that the IOCT 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 as an immediate or cancel (IOC) \5\ order 
to EDGX. If shares further remain unexecuted, they are posted on the 
EDGA Book, unless otherwise instructed by the User. The Exchange 
proposes to modify this strategy to delete the phrase ``sent as an IOC 
order'' since a Day Order \6\ or an IOC order could be sent to EDGX. 
This change would thus enable

[[Page 77878]]

the User to direct the remainder to post to EDGX instead of EDGA.
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    \5\ As defined in Rule 11.5(b)(1).
    \6\ As defined in Rule 11.5(b)(2).
---------------------------------------------------------------------------

    The Exchange also proposes to amend Rule 11.9(b)(3)(a), which 
currently states that any shares that remain unexecuted after routing 
are posted to ``the EDGX Exchange book'', to eliminate the word 
``Exchange''. In light of the routing options modifications proposed 
herein, paragraph 11.9(b)(3) would also be modified to define EDGX at 
the outset and state that except for the routing options provided in 
paragraphs (a) and (n)-(q), Users can post any remainder of an order to 
EDGX. Accordingly, the reference to the word ``Exchange'' in Rule 
11.9(b)(3)(a) would be redundant.
    The Exchange believes the proposed modification of the routing 
options described above will provide market participants with greater 
flexibility in routing orders without having to develop their own 
complicated routing strategies. In addition, the varied routing options 
allow Users to take primary advantage of EDGA's low cost fee structure 
to remove liquidity on EDGA and if applicable, other destinations. Yet, 
the User retains the option of posting the remainder of the order to 
EDGX.
    Assuming the Commission approves the proposed rule change, the 
Exchange will notify its Members in an information circular of the 
exact implementation date(s) of this rule change, which will be no 
later than March 31, 2012.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b)(5) of the Act,\7\ 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 change to introduce the routing options 
described above will provide market participants with greater 
flexibility in routing orders without having to develop their own order 
routing strategies. In addition, it will provide additional clarity and 
specificity to the Exchange's rulebook regarding routing strategies and 
will further enhance transparency with respect to Exchange routing 
offerings. Finally, the varied routing options allow Users to take 
primary advantage of EDGA's low cost fee structure to remove liquidity 
on EDGA and if applicable, other destinations. Yet, the User retains 
the option of posting the remainder of the order to EDGX.
---------------------------------------------------------------------------

    \7\ 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

    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 the proposed rule change, or
    (b) Institute proceedings to determine whether the proposed rule 
change should be 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 https://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File No. SR-EDGA-2011-40 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-2011-40. 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 on official business 
days between 10 a.m. and 3 p.m. Copies of the filing will also 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-2011-40 and should be submitted on or before January 4, 2012.

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

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

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-32066 Filed 12-13-11; 8:45 am]
BILLING CODE 8011-01-P
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