Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Price Improvement Mechanism Pilot Program, 36589-36590 [2012-14906]
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Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices
Simon, 6432 General Green Way,
Alexandria, VA 22312; or send an email
to: PRA_Mailbox@sec.gov.
Dated: June 14, 2012.
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67202; File No. SR–ISE–
2012–54]
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Extension of
the Price Improvement Mechanism
Pilot Program
Sunshine Act Meeting
June 14, 2012.
[FR Doc. 2012–14908 Filed 6–18–12; 8:45 am]
BILLING CODE 8011–01–P
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 Thursday, June 21, 2012 at 2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matters at the Closed
Meeting.
Commissioner Gallagher, as duty
officer, voted to consider the items
listed for the Closed Meeting in a closed
session.
The subject matter of the Closed
Meeting scheduled for Thursday, June
21, 2012 will be:
srobinson on DSK4SPTVN1PROD with NOTICES
Institution and settlement of injunctive
actions;
Institution and settlement of
administrative proceedings;
Other matters relating to enforcement
proceedings; and
Disclosure of non-public information.
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: June 14, 2012.
Elizabeth M. Murphy,
Secretary.
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 June 11,
2012, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission the proposed
rule change as described in Items I and
II below, which items 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 is proposing to extend
two pilot programs related to its Price
Improvement Mechanism (‘‘PIM’’). The
text of the proposed rule amendment is
as follows, with proposed deletions in
[brackets], and proposed additions in
italics:
Rule 723. Price Improvement
Mechanism for Crossing Transactions
*
*
1 15
BILLING CODE 8011–01–P
2 17
16:39 Jun 18, 2012
Jkt 226001
*
*
Supplementary Material to Rule 723
.01–.02 No Change.
.03 Initially, and for at least a Pilot
Period expiring on July 18, 2013 [July
18, 2012], there will be no minimum
size requirements for orders to be
eligible for the Price Improvement
Mechanism. During the Pilot Period, the
Exchange will submit certain data,
periodically as required by the
Commission, to provide supporting
evidence that, among other things, there
is meaningful competition for all size
orders within the Price Improvement
Mechanism, that there is significant
price improvement for all orders
executed through the Price
Improvement Mechanism, and that
there is an active and liquid market
functioning on the Exchange outside of
the Price Improvement Mechanism. Any
[FR Doc. 2012–15057 Filed 6–15–12; 4:15 pm]
VerDate Mar<15>2010
*
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00113
Fmt 4703
36589
data which is submitted to the
Commission will be provided on a
confidential basis.
.04 No Change.
.05 Paragraphs (c)(5), (d)(5) and
(d)(6) will be effective for a Pilot Period
expiring on July 18, 2013 [July 18,
2012]. During the Pilot Period, the
Exchange will submit certain data
relating to the frequency with which the
exposure period is terminated by
unrelated orders. Any data which is
submitted to the Commission will be
provided on a confidential basis.
.06–.07 No Change.
*
*
*
*
*
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange currently has two pilot
programs related to its PIM.3 The
3 See Securities Exchange Act Release Nos. 50819
(December 8, 2004), 69 FR 75093 (December 15,
2004) (Approving the PIM pilot (the ‘‘Approval
Order’’)); 52027 (July 13, 2005), 70 FR 41804 (July
20, 2005) Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to
a One-Year Pilot Extension for the Price
Improvement Mechanism); 54146 (July 14, 2006),
71 FR 41490 (July 21, 2006) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Relating to a One-Year Pilot Extension Until July
18, 2007 for the Price Improvement Mechanism);
56106 (July 19, 2007), 72 FR 40914 (July 25, 2007)
(Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Relating to a One-Week
Extension for the Price Improvement Mechanism
Pilot Program); and 56156 (July 27, 2007), 72 FR
43305 (August 3, 2007) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Relating to an Extension for the Price Improvement
Mechanism Pilot Program); 58197 (July 18, 2008),
73 FR 43810 (July 28, 2008) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of the Price Improvement
Mechanism Pilot Program); 60333 (July 17, 2009),
74 FR 36792 (July 24, 2009) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
Relating to the Extension of the Price Improvement
Mechanism Pilot Program); and 62513 (July 16,
2010), 75 FR 43221 (July 23, 2010) (Notice of Filing
and Immediate Effectiveness of Proposed Rule
Continued
Sfmt 4703
E:\FR\FM\19JNN1.SGM
19JNN1
36590
Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices
current pilot period provided in
paragraphs .03 and .05 of the
Supplementary Material to Rule 723 is
set to expire on July 18, 2012.4
Paragraph .03 provides that there is no
minimum size requirement for orders to
be eligible for the Price Improvement
Mechanism. Paragraph .05 concerns the
termination of the exposure period by
unrelated orders. In accordance with the
Approval Order, the Exchange has
continually submitted certain data in
support of extending the current pilot
programs. The Exchange proposes to
extend these pilot programs in their
present form, through July 18, 2013, to
give the Exchange and the Commission
additional time to evaluate the effects of
these pilot programs before requesting
permanent approval of the rules. To aid
the Commission in its evaluation of the
PIM Functionality, ISE will also
continue to provide additional PIMrelated data as requested by the
Commission.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Exchange
Act’’) for this proposed rule change is
found in Section 6(b)(5), in that the
proposed rule change is designed to
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system and, in general, to protect
investors and the public interest. In
particular, the Exchange believes the
pilot programs are consistent with the
Exchange Act because they provide
opportunity for price improvement for
all orders executed in the Exchange’s
Price Improvement Mechanism. The
Exchange further believes it is
appropriate to extend the pilot periods
to provide the Exchange and
Commission more data upon which to
evaluate the rules.
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 written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 5 and Rule
19b–4(f)(6) thereunder.6 Because the
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) by its terms,
become operative prior to 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, if consistent with the
protection of investors and the public
interest, the proposed rule change has
become effective upon filing with the
Commission pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6)(iii) thereunder.8
At any time within 60 days of the
filing of the proposed rule change, the
Commission may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
5 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Commission
deems this requirement to have been met.
Number SR–ISE–2012–54 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–ISE–2012–54. 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 Commissions
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 7 Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the ISE. 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–ISE–
2012–54 and should be submitted by
July 10, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–14906 Filed 6–18–12; 8:45 am]
BILLING CODE 8011–01–P
srobinson on DSK4SPTVN1PROD with NOTICES
6 17
Change Relating to the Extension of the Price
Improvement Mechanism Pilot Program).
4 See Securities Exchange Act Release No. 64931
(July 20, 2011), 76 FR 44642 (July 26, 2011) (Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Extension of the Price
Improvement Mechanism Pilot Program).
VerDate Mar<15>2010
16:39 Jun 18, 2012
Jkt 226001
PO 00000
Frm 00114
Fmt 4703
Sfmt 9990
9 17
E:\FR\FM\19JNN1.SGM
CFR 200.30–3(a)(12).
19JNN1
]]>Agencies
[Federal Register Volume 77, Number 118 (Tuesday, June 19, 2012)]
[Notices]
[Pages 36589-36590]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14906]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67202; File No. SR-ISE-2012-54]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to the Extension of the Price Improvement Mechanism
Pilot Program
June 14, 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 June 11, 2012, the International Securities Exchange, LLC (the
``Exchange'' or the ``ISE'') filed with the Securities and Exchange
Commission the proposed rule change as described in Items I and II
below, which items 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 is proposing to extend two pilot programs related to
its Price Improvement Mechanism (``PIM''). The text of the proposed
rule amendment is as follows, with proposed deletions in [brackets],
and proposed additions in italics:
Rule 723. Price Improvement Mechanism for Crossing Transactions
* * * * *
Supplementary Material to Rule 723
.01-.02 No Change.
.03 Initially, and for at least a Pilot Period expiring on July 18,
2013 [July 18, 2012], there will be no minimum size requirements for
orders to be eligible for the Price Improvement Mechanism. During the
Pilot Period, the Exchange will submit certain data, periodically as
required by the Commission, to provide supporting evidence that, among
other things, there is meaningful competition for all size orders
within the Price Improvement Mechanism, that there is significant price
improvement for all orders executed through the Price Improvement
Mechanism, and that there is an active and liquid market functioning on
the Exchange outside of the Price Improvement Mechanism. Any data which
is submitted to the Commission will be provided on a confidential
basis.
.04 No Change.
.05 Paragraphs (c)(5), (d)(5) and (d)(6) will be effective for a
Pilot Period expiring on July 18, 2013 [July 18, 2012]. During the
Pilot Period, the Exchange will submit certain data relating to the
frequency with which the exposure period is terminated by unrelated
orders. Any data which is submitted to the Commission will be provided
on a confidential basis.
.06-.07 No Change.
* * * * *
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange currently has two pilot programs related to its
PIM.\3\ The
[[Page 36590]]
current pilot period provided in paragraphs .03 and .05 of the
Supplementary Material to Rule 723 is set to expire on July 18,
2012.\4\ Paragraph .03 provides that there is no minimum size
requirement for orders to be eligible for the Price Improvement
Mechanism. Paragraph .05 concerns the termination of the exposure
period by unrelated orders. In accordance with the Approval Order, the
Exchange has continually submitted certain data in support of extending
the current pilot programs. The Exchange proposes to extend these pilot
programs in their present form, through July 18, 2013, to give the
Exchange and the Commission additional time to evaluate the effects of
these pilot programs before requesting permanent approval of the rules.
To aid the Commission in its evaluation of the PIM Functionality, ISE
will also continue to provide additional PIM-related data as requested
by the Commission.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 50819 (December 8,
2004), 69 FR 75093 (December 15, 2004) (Approving the PIM pilot (the
``Approval Order'')); 52027 (July 13, 2005), 70 FR 41804 (July 20,
2005) Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to a One-Year Pilot Extension for the Price
Improvement Mechanism); 54146 (July 14, 2006), 71 FR 41490 (July 21,
2006) (Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to a One-Year Pilot Extension Until July 18, 2007
for the Price Improvement Mechanism); 56106 (July 19, 2007), 72 FR
40914 (July 25, 2007) (Notice of Filing and Immediate Effectiveness
of Proposed Rule Change Relating to a One-Week Extension for the
Price Improvement Mechanism Pilot Program); and 56156 (July 27,
2007), 72 FR 43305 (August 3, 2007) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to an Extension for
the Price Improvement Mechanism Pilot Program); 58197 (July 18,
2008), 73 FR 43810 (July 28, 2008) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to the Extension of
the Price Improvement Mechanism Pilot Program); 60333 (July 17,
2009), 74 FR 36792 (July 24, 2009) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to the Extension of
the Price Improvement Mechanism Pilot Program); and 62513 (July 16,
2010), 75 FR 43221 (July 23, 2010) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to the Extension of
the Price Improvement Mechanism Pilot Program).
\4\ See Securities Exchange Act Release No. 64931 (July 20,
2011), 76 FR 44642 (July 26, 2011) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change Relating to the Extension of
the Price Improvement Mechanism Pilot Program).
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Exchange
Act'') for this proposed rule change is found in Section 6(b)(5), in
that the proposed rule change is designed to promote just and equitable
principles of trade, remove impediments to and perfect the mechanisms
of a free and open market and a national market system and, in general,
to protect investors and the public interest. In particular, the
Exchange believes the pilot programs are consistent with the Exchange
Act because they provide opportunity for price improvement for all
orders executed in the Exchange's Price Improvement Mechanism. The
Exchange further believes it is appropriate to extend the pilot periods
to provide the Exchange and Commission more data upon which to evaluate
the rules.
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 written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(6) thereunder.\6\
Because the 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) by its terms, become
operative prior to 30 days from the date on which it was filed, or such
shorter time as the Commission may designate, if consistent with the
protection of investors and the public interest, the proposed rule
change has become effective upon filing with the Commission pursuant to
Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6)(iii)
thereunder.\8\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 17 CFR 240.19b-4(f)(6).
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission deems this requirement to have been met.
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission 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-ISE-2012-54 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-ISE-2012-54. 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 Commissions 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 7 Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of the ISE. 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-ISE-2012-54 and should be submitted by
July 10, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-14906 Filed 6-18-12; 8:45 am]
BILLING CODE 8011-01-P
