Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to New EDGX Rule 11.22 Requiring Members To Input Accurate Information Into the System, 22006-22008 [2012-8785]
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22006
Federal Register / Vol. 77, No. 71 / Thursday, April 12, 2012 / Notices
Practices Concerning Elevated Risk
Complex Structured Finance Activities
(‘‘Statement’’) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’) and the
Investment Advisers Act of 1940 (15
U.S.C. 80b et seq.) (‘‘Advisers Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
The Statement was issued by the
Commission, together with the Office of
the Comptroller of the Currency, the
Board of Governors of the Federal
Reserve System, the Federal Deposit
Insurance Corporation, and the Office of
Thrift Supervision (together, the
‘‘Agencies’’), in May 2006. The
Statement describes the types of internal
controls and risk management
procedures that the Agencies believe are
particularly effective in assisting
financial institutions to identify and
address the reputational, legal, and
other risks associated with elevated risk
complex structured finance
transactions.
The primary purpose of the Statement
is to ensure that these transactions
receive enhanced scrutiny by the
institution and to ensure that the
institution does not participate in illegal
or inappropriate transactions.
The Commission estimates that
approximately 5 registered brokerdealers or investment advisers will
spend an average of approximately 25
hours per year complying with the
Statement. Thus, the total compliance
burden is estimated to be approximately
125 burden-hours per year.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
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a valid Office of Management and
Budget (OMB) control number.
Please direct your written comments
to: Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, Virginia 22312 or send an
email to: PRA_Mailbox@sec.gov.
Dated: April 6, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–8793 Filed 4–11–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549–0213.
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to Thomas Bayer, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Remi PavlikSimon, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
email to: PRA_Mailbox@sec.gov.
Extension:
Regulation D and Form D, OMB Control
No. 3235–0076, SEC File No. 270–072.
Dated: April 6, 2012.
Kevin M. O’Neill,
Deputy Secretary.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Regulation D (17 CFR 230.501 et seq.)
sets forth rules governing the limited
offer and sale of securities without
Securities Act registration. The purpose
of Form D (17 CFR 239.500) is to collect
empirical data, which provides a
continuing basis for action by the
Commission either in terms of
amending existing rules and regulations
or proposing new ones. In addition, the
Form D allows the Commission to elicit
information necessary in assessing the
effectiveness of Regulation D (17 CFR
230.501 et seq.) and Section 4(6) of the
Securities Act of 1933 (15 U.S.C. 77d(6))
as capital-raising devices for all
businesses. Approximately 25,000
issuers file Form D and it takes
approximately 4 hours per response. We
estimate that 25% of 4 hours per
response (1 hour per response) is
prepared by the issuer for an annual
reporting burden 25,000 hours (1 hour
per response × 25,000 responses). The
remaining 75% of the burden is
prepared by outside counsel.
[FR Doc. 2012–8792 Filed 4–11–12; 8:45 am]
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66761; File No. SR–EDGX–
2012–13]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to New EDGX
Rule 11.22 Requiring Members To
Input Accurate Information Into the
System
April 6, 2012.
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 April 2,
2012, EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1 15
2 17
E:\FR\FM\12APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12APN1
Federal Register / Vol. 77, No. 71 / Thursday, April 12, 2012 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt new
EDGX Rule 11.22 to require Members to
input accurate information into the
System,3 including, but not limited to,
identifying each order accurately as a
principal, agency, or riskless principal
order. The text of the proposed rule
change is available on the Exchange’s
Web site at 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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to add new
EDGX Rule 11.22 for the purpose of
increasing transparency and to enhance
the surveillance database and audit trail
of transaction data used by the
Exchange in surveillance of its market.
The proposed rule change would
require Members to input accurate
information into the System, including,
but not limited to, identifying the
capacity of each order accurately as a
principal, agency, or riskless principal
order. For purposes of surveillance, the
Exchange currently identifies the
capacity of each order as principal,
agency, or riskless principal; however,
several other capacities are accepted
upon order entry, including no
response, which are thereafter mapped
to one of the above-listed order
capacities. By requiring Members to
accurately submit an order capacity for
each order and to otherwise input
accurate information into the System,
the Exchange will be able to more
precisely identify the type of order
3 The
term ‘‘System’’ is defined in EDGX Rule
1.5(cc).
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16:27 Apr 11, 2012
Jkt 226001
received and more effectively surveil for
abusive trading.
EDGX does not currently have a rule
that makes an explicit statement
regarding a Member’s obligation to
input accurate information into the
System. However, currently, in FIX tag
47,4 Members are asked to populate
their capacity when entering orders into
the Exchange’s System; however, if the
field is left blank by the Member, it is
automatically populated with an ‘‘A’’
value (denoting agency).
Notwithstanding, EDGX believes that
disciplinary cases against Members
entering inaccurate or incomplete
information may be brought
appropriately under EDGX Rule 3.1,
which requires Members to observe high
standards of commercial honor and just
and equitable principles of trade. Rule
3.1 protects the investing public and the
securities industry from dishonest
practices that are unfair to investors or
hinder the functioning of a free and
open market, even though those
practices may not be illegal or violate a
specific rule or regulation. Because of
the regulatory importance of inputting
accurate information into the System,
EDGX believes a rule that directly
addresses Members’ obligation to
provide accurate information is
warranted. The proposed rule makes
clear Members’ obligation to input
accurate information into the System
and that failure to do so would be
considered a violation of EDGX Rules.
In addition, once the rule is effective, if
Members do not input the capacity in
which they are acting (principal, agent,
or riskless principal) into the System,
the order will be rejected back to the
Member by the Exchange.
EDGX notes that both BATS Exchange
Inc. (‘‘BATS’’) and BATS–Y Exchange,
Inc. (‘‘BYX’’) have adopted rules
materially identical to proposed EDGX
Rule 11.22.5 Similarly, the Commission
has previously approved rules proposed
by the NASDAQ Stock Market LLC
(‘‘NASDAQ’’) requiring participants to
ensure that accurate information is
entered into NASDAQ’s system,
including, but not limited to, the
capacity in which the participant is
acting.6 Thus, the proposed rule change
would bring EDGX Rules in line with
4 Members utilize an industry standard Financial
Information eXchange (‘‘FIX’’) protocol to
electronically enter orders into the System.
Members populate certain FIX fields (i.e., tags) to
indicate certain terms of the order. FIX tag 47 is
used to identify the Member’s capacity.
5 See Securities Exchange Act Release No. 63969
(February 25, 2011), 76 FR 12155 (March 4, 2011);
and Securities Exchange Act Release No. 63970
(February 25, 2011), 76 FR 12204 (March 4, 2011).
6 See Securities Exchange Act Release No. 59547
(March 10, 2009), 74 FR 11386 (March 17, 2009).
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22007
those of other self-regulatory
organizations.
In order to allow Members sufficient
time to review and complete any
systems changes necessitated by this
filing, the Exchange will notify
Members via information circular of an
exact implementation date for the
proposed rule change, which will be no
later than August 31, 2012.
2. Statutory Basis
The rule change proposed in this
submission is consistent with the
requirements of Section 19(b)(1) of the
Act 7 and the rules and regulations
thereunder that are applicable to a
national securities exchange, and, in
particular, with the requirements of
Section 6(b) of the Act.8 Specifically, for
the reasons described above, the
proposed change is consistent with
Section 6(b)(5) of the Act,9 because it 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 to
protect investors and the public interest.
Specifically, the changes proposed
herein will serve to promote the
accuracy of information input into the
Exchange. Accurate information is
necessary for the efficient and fair
operation of the Exchange, and will
assist the Exchange in surveilling the
markets for abusive or otherwise
violative trading activity.
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 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 neither solicited
nor received written comments on the
proposed rule change.
7 15
U.S.C. 78s(b)(1).
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
8 15
E:\FR\FM\12APN1.SGM
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Federal Register / Vol. 77, No. 71 / Thursday, April 12, 2012 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule
filing as non-controversial under
Section 19(b)(3)(A) of the Act 10 and
paragraph (f)(6) of Rule 19b–4
thereunder.11 The Exchange asserts that
the proposed rule change: (1) Will not
significantly affect the protection of
investors or the public interest, (2) will
not impose any significant burden on
competition, and (3) will not become
operative for 30 days from the date on
which it was filed, or such shorter time
as designated by the Commission. The
Exchange provided the Commission
with written notice of its 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,
or such shorter time as the Commission
may designate.12 In addition, the
Exchange believes that the proposal to
require Members to identify the capacity
of each order as either a principal,
agency, or riskless principal order does
not present any policy issues that have
not previously been considered by the
Commission, but rather, is a minor
change to the Exchange’s existing rules
that is consistent with the rules of other
national securities exchanges.13 For the
foregoing reasons, this rule filing
qualifies for immediate effectiveness as
a ‘‘non-controversial’’ rule change under
paragraph (f)(6) of Rule 19b–4.
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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–EDGX–2012–13 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–EDGX–2012–13. 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–EDGX–
2012–13 and should be submitted on or
before May 3, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–8785 Filed 4–11–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66763; File No. SR–EDGA–
2012–13]
Self-Regulatory Organizations; EDGA
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Amendments
to the EDGA Exchange, Inc. Fee
Schedule
April 6, 2012.
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 March 30,
2012 the EDGA Exchange, Inc. (the
‘‘Exchange’’ or the ‘‘EDGA’’) 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 its
fees and rebates applicable to Members 3
of the Exchange pursuant to EDGA Rule
15.1(a) and (c). All of the changes
described herein are applicable to EDGA
Members. The text of the proposed rule
change is available on the Exchange’s
Internet 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
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 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.
1 15
10 15
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4 (f)(6).
12 17 CFR 240.19b–4 (f)(6)(iii).
13 See, e.g., NASDAQ Rule 4611(a)(6), BATS Rule
11.21 and BYX Rule 11.21.
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16:27 Apr 11, 2012
Jkt 226001
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A Member is any registered broker or dealer, or
any person associated with a registered broker or
dealer, that has been admitted to membership in the
Exchange.
2 17
14 17
PO 00000
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 77, Number 71 (Thursday, April 12, 2012)]
[Notices]
[Pages 22006-22008]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8785]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66761; File No. SR-EDGX-2012-13]
Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
New EDGX Rule 11.22 Requiring Members To Input Accurate Information
Into the System
April 6, 2012.
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 April 2, 2012, EDGX Exchange, Inc. (the ``Exchange'' or
``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 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.
---------------------------------------------------------------------------
[[Page 22007]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt new EDGX Rule 11.22 to require
Members to input accurate information into the System,\3\ including,
but not limited to, identifying each order accurately as a principal,
agency, or riskless principal order. The text of the proposed rule
change is available on the Exchange's Web site at www.directedge.com,
at the Exchange's principal office, and at the Public Reference Room of
the Commission.
---------------------------------------------------------------------------
\3\ The term ``System'' is defined in EDGX Rule 1.5(cc).
---------------------------------------------------------------------------
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to add new EDGX Rule 11.22 for the purpose of
increasing transparency and to enhance the surveillance database and
audit trail of transaction data used by the Exchange in surveillance of
its market. The proposed rule change would require Members to input
accurate information into the System, including, but not limited to,
identifying the capacity of each order accurately as a principal,
agency, or riskless principal order. For purposes of surveillance, the
Exchange currently identifies the capacity of each order as principal,
agency, or riskless principal; however, several other capacities are
accepted upon order entry, including no response, which are thereafter
mapped to one of the above-listed order capacities. By requiring
Members to accurately submit an order capacity for each order and to
otherwise input accurate information into the System, the Exchange will
be able to more precisely identify the type of order received and more
effectively surveil for abusive trading.
EDGX does not currently have a rule that makes an explicit
statement regarding a Member's obligation to input accurate information
into the System. However, currently, in FIX tag 47,\4\ Members are
asked to populate their capacity when entering orders into the
Exchange's System; however, if the field is left blank by the Member,
it is automatically populated with an ``A'' value (denoting agency).
---------------------------------------------------------------------------
\4\ Members utilize an industry standard Financial Information
eXchange (``FIX'') protocol to electronically enter orders into the
System. Members populate certain FIX fields (i.e., tags) to indicate
certain terms of the order. FIX tag 47 is used to identify the
Member's capacity.
---------------------------------------------------------------------------
Notwithstanding, EDGX believes that disciplinary cases against
Members entering inaccurate or incomplete information may be brought
appropriately under EDGX Rule 3.1, which requires Members to observe
high standards of commercial honor and just and equitable principles of
trade. Rule 3.1 protects the investing public and the securities
industry from dishonest practices that are unfair to investors or
hinder the functioning of a free and open market, even though those
practices may not be illegal or violate a specific rule or regulation.
Because of the regulatory importance of inputting accurate information
into the System, EDGX believes a rule that directly addresses Members'
obligation to provide accurate information is warranted. The proposed
rule makes clear Members' obligation to input accurate information into
the System and that failure to do so would be considered a violation of
EDGX Rules. In addition, once the rule is effective, if Members do not
input the capacity in which they are acting (principal, agent, or
riskless principal) into the System, the order will be rejected back to
the Member by the Exchange.
EDGX notes that both BATS Exchange Inc. (``BATS'') and BATS-Y
Exchange, Inc. (``BYX'') have adopted rules materially identical to
proposed EDGX Rule 11.22.\5\ Similarly, the Commission has previously
approved rules proposed by the NASDAQ Stock Market LLC (``NASDAQ'')
requiring participants to ensure that accurate information is entered
into NASDAQ's system, including, but not limited to, the capacity in
which the participant is acting.\6\ Thus, the proposed rule change
would bring EDGX Rules in line with those of other self-regulatory
organizations.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 63969 (February 25,
2011), 76 FR 12155 (March 4, 2011); and Securities Exchange Act
Release No. 63970 (February 25, 2011), 76 FR 12204 (March 4, 2011).
\6\ See Securities Exchange Act Release No. 59547 (March 10,
2009), 74 FR 11386 (March 17, 2009).
---------------------------------------------------------------------------
In order to allow Members sufficient time to review and complete
any systems changes necessitated by this filing, the Exchange will
notify Members via information circular of an exact implementation date
for the proposed rule change, which will be no later than August 31,
2012.
2. Statutory Basis
The rule change proposed in this submission is consistent with the
requirements of Section 19(b)(1) of the Act \7\ and the rules and
regulations thereunder that are applicable to a national securities
exchange, and, in particular, with the requirements of Section 6(b) of
the Act.\8\ Specifically, for the reasons described above, the proposed
change is consistent with Section 6(b)(5) of the Act,\9\ because it 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
to protect investors and the public interest. Specifically, the changes
proposed herein will serve to promote the accuracy of information input
into the Exchange. Accurate information is necessary for the efficient
and fair operation of the Exchange, and will assist the Exchange in
surveilling the markets for abusive or otherwise violative trading
activity.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(1).
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 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 neither solicited nor received written comments on
the proposed rule change.
[[Page 22008]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) of the Act \10\ and paragraph (f)(6) of Rule
19b-4 thereunder.\11\ The Exchange asserts that the proposed rule
change: (1) Will not significantly affect the protection of investors
or the public interest, (2) will not impose any significant burden on
competition, and (3) will not become operative for 30 days from the
date on which it was filed, or such shorter time as designated by the
Commission. The Exchange provided the Commission with written notice of
its 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, or such shorter time as the
Commission may designate.\12\ In addition, the Exchange believes that
the proposal to require Members to identify the capacity of each order
as either a principal, agency, or riskless principal order does not
present any policy issues that have not previously been considered by
the Commission, but rather, is a minor change to the Exchange's
existing rules that is consistent with the rules of other national
securities exchanges.\13\ For the foregoing reasons, this rule filing
qualifies for immediate effectiveness as a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4 (f)(6).
\12\ 17 CFR 240.19b-4 (f)(6)(iii).
\13\ See, e.g., NASDAQ Rule 4611(a)(6), BATS Rule 11.21 and BYX
Rule 11.21.
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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-EDGX-2012-13 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-EDGX-2012-13. 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-EDGX-2012-13 and should be
submitted on or before May 3, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-8785 Filed 4-11-12; 8:45 am]
BILLING CODE 8011-01-P
