Sunshine Act Meeting, 29398 [2012-12093]
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29398
Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Notices
The BOX Book’s matching system
algorithm permits orders originated by a
Participant to execute against other
orders from the same Participant on the
same basis as orders from other
Participants. In the BOX Book’s
handling of displayed orders, which is
based on strict price-time priority, a
Participant could receive an execution
against itself, and under the Exchange’s
Rules, the Participant would not know
that it was the contra-side of the trade
at the time of execution. BOX does,
however, permit a Participant to prevent
its incoming orders from being executed
against its own trading interest.
Specifically, Participants have the
ability to use Participant match trade
prevention. A Participant may direct
that its Market Maker or Principal
Orders entered on BOX not execute
against its own Market Maker quotes or
orders, or its Principal Orders that are
resting on the BOX Book. In such a case,
the quantity of the incoming order that
would otherwise trade against the
quote/order from the same Participant
will be cancelled back to the entering
party.11
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b. Rule 10b–10
Rule 10b–10 under the Exchange Act
generally requires broker-dealers
effecting a customer transaction in
securities (other than U.S. savings bonds
or municipal securities) 12 to provide a
written notification to its customer, at or
before completion of a securities
transaction, that discloses information
specific to the transaction. In particular,
under Rule 10b–10(a)(2)(i)(A), when a
broker-dealer acts as agent for a
customer, some other person, or for both
the customer and some other person, the
broker-dealer must disclose ‘‘[t]he name
of the person from whom the security
was purchased, or to whom it was sold,
for such customer or the fact that the
information will be furnished upon
written request of such customer’’ (the
‘‘Contra-Party Identity Requirement’’).
III. Relief Sought
As explained in the Application,
trades are executed with total
anonymity on BOX, where the identity
of the actual contra-party is not revealed
when the trade is executed, except with
respect to Directed Orders.13 Because of
this, Participants will not know the
identity of the party to whom they sold
securities or from whom they purchased
securities. Without this information,
11 See
Exchange Rule 7130(a)(4).
securities are subject to the
transaction confirmations requirements under Rule
G–15 of the Municipal Securities Rulemaking
Board.
13 See supra note 9.
12 Municipal
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17:20 May 16, 2012
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Participants would not be able to
comply with the Contra-Party Identity
Requirement of Rule 10b–10. To permit
Participants to utilize BOX without
violating Rule 10b–10, the Exchange, on
behalf of such Participants, is seeking an
exemption under Rule 10b–10(f), from
the Contra-Party Identity Requirement
of Rule 10b–10 when Participants
execute transactions on BOX, as
described in the Application.
IV. Conclusion
Based on the facts and representations
contained in the Application, we find
that it is appropriate and in the public
interest and consistent with the
protection of investors to grant the
Exchange, on behalf of its Participants,
a limited exemption from the ContraParty Identity Requirement in Rule 10b–
10(a)(2)(i)(A).
It is hereby ordered, pursuant to Rule
10b–10(f) of the Exchange Act, that
Exchange Participants, based on the
representations and facts contained in
the Application, are exempt from the
requirements of Rule 10b–10(a)(2)(i)(A)
of the Exchange Act, to the extent that
Participants execute trades for their
customers on the Exchange using the
BOX Trading System. This exemption is
limited to trades that Participants
execute on BOX using the post trade
anonymity feature described in the
Application.14
The foregoing exemption is subject to
modification or revocation if at any time
the Commission determines that such
action is necessary or appropriate in
furtherance of the purposes of the
Exchange Act.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–11931 Filed 5–16–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Tuesday, May 15, 2012 at 2:00 p.m.
14 This exemption does not apply: (a) To orders
routed to an away trading center for execution; (b)
to Directed Orders; (c) under the situation described
in note 3 supra; or (d) to the situation described in
note 13 of the Application.
15 17 CFR 200.30–3(32).
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The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions as set forth in
5 U.S.C. 552b(c)(4) and (8) and 17 CFR
200.402(a)(4) and (8), permit
consideration of the scheduled matter at
the Closed Meeting. Certain staff
members who have an interest in the
matter also may be present.
Commissioner Gallagher, as duty
officer, voted to consider the item listed
for the Closed Meeting in closed
session, and determined that no earlier
notice thereof was possible.
The subject matter of the May 15,
2012 Closed Meeting will be an
examination of a financial institution.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items. For further
information and to ascertain what, if
any, matters have been added, deleted
or postponed, please contact the Office
of the Secretary at (202) 551–5400.
Dated: May 15, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–12093 Filed 5–15–12; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission held a Closed Meeting on
Saturday, May 12, 2012 at 11:00 a.m.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions as set forth in
5 U.S.C. 552b(c)(4) and (8) and 17 CFR
200.402(a)(4) and (8), permit
consideration of the scheduled matter at
the Closed Meeting. Certain staff
members who have an interest in the
matter also were present.
Commissioner Gallagher, as duty
officer, voted to consider the item listed
for the Closed Meeting in closed
session, and determined that no earlier
notice thereof was possible.
The subject matter of the May 12,
2012 Closed Meeting was an
examination of a financial institution.
Dated: May 14, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–12020 Filed 5–15–12; 11:15 am]
BILLING CODE 8011–01–P
E:\FR\FM\17MYN1.SGM
17MYN1
Agencies
[Federal Register Volume 77, Number 96 (Thursday, May 17, 2012)]
[Notices]
[Page 29398]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12093]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a Closed Meeting on Tuesday, May 15,
2012 at 2:00 p.m.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions as set
forth in 5 U.S.C. 552b(c)(4) and (8) and 17 CFR 200.402(a)(4) and (8),
permit consideration of the scheduled matter at the Closed Meeting.
Certain staff members who have an interest in the matter also may be
present.
Commissioner Gallagher, as duty officer, voted to consider the item
listed for the Closed Meeting in closed session, and determined that no
earlier notice thereof was possible.
The subject matter of the May 15, 2012 Closed Meeting will be an
examination of a financial institution.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items. For further information and to
ascertain what, if any, matters have been added, deleted or postponed,
please contact the Office of the Secretary at (202) 551-5400.
Dated: May 15, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-12093 Filed 5-15-12; 4:15 pm]
BILLING CODE 8011-01-P