Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Excess Order Fee, 39530-39532 [2012-16212]
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srobinson on DSK4SPTVN1PROD with NOTICES
39530
Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Notices
exercise that nondisclosure option (‘‘opt
out notice’’). The Rule applies to brokerdealers, investment advisers registered
with the Commission, and investment
companies (‘‘covered entities’’).
Commission staff estimates that, as of
early May, 2012, the Rule’s information
collection burden applies to
approximately 21,500 covered entities
(approximately 4,700 broker-dealers,
12,600 investment advisers registered
with the Commission, and 4,200
investment companies). In view of (a)
The minimal recordkeeping burden
imposed by the Rule (since the Rule has
no recordkeeping requirement and
records relating to customer
communications already must be made
and retained pursuant to other SEC
rules); (b) the summary fashion in
which information must be provided to
customers in the privacy and opt out
notices required by the Rule (the model
privacy form adopted by the SEC and
the other agencies in 2009, designed to
serve as both a privacy notice and an
opt out notice, is only two pages); (c) the
availability to covered entities of the
model privacy form and online model
privacy form builder; and (d) the
experience of covered entities’ staff with
the notices, SEC staff estimates that
covered entities will each spend an
average of approximately 12 hours per
year complying with the Rule, for a total
of approximately 258,000 annual
burden-hours (12 × 21,500 = 258,000).
SEC staff understands that the vast
majority of covered entities deliver their
privacy and opt out notices with other
communications such as account
opening documents and account
statements. Because the other
communications are already delivered
to consumers, adding a brief privacy
and opt out notice should not result in
added costs for processing or for postage
and materials. Also, privacy and opt out
notices may be delivered electronically
to consumers who have agreed to
electronic communications, which
further reduces the costs of delivery.
Because SEC staff assumes that most
paper copies of privacy and opt out
notices are combined with other
required mailings, the burden-hour
estimates above are based on resources
required to integrate the privacy and opt
notices into another mailing, rather than
on the resources required to create and
send a separate mailing. SEC staff
estimates that, of the estimated 12
annual burden-hours incurred,
approximately 8 hours would be spent
by administrative assistants at an hourly
rate of $65, and approximately 4 hours
would be spent by internal counsel at an
hourly rate of $378, for a total
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annualized cost of $2,032 for each of the
covered entities (8 × $65 = $520; 4 ×
$378 = $1,512; $520 + $1,512 = $2,032).
Hourly cost estimates for personnel time
are derived from the Securities Industry
and Financial Markets Association’s
Management & Professional Earnings in
the Securities Industry 2011, modified
by SEC staff to account for an 1800-hour
work-year and multiplied by 5.35 to
account for bonuses, firm size,
employee benefits, and overhead.
Accordingly, SEC staff estimates that the
total annualized cost for the estimated
total hour burden for the approximately
21,500 covered entities subject to the
Rule is approximately $43,688,000
($2,032 × 21,500 = $43,688,000).
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 on
respondents; (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
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: June 27, 2012.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–16225 Filed 7–2–12; 8:45 am]
[Release No. 34–67272; File No. SR–BX–
2012–042]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Modify Its
Excess Order Fee
June 27, 2012.
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 June 25,
2012, NASDAQ OMX BX, Inc. (‘‘BX’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a 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.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
BX proposes to institute an excess
order fee. [sic] BX will implement the
proposed change on July 2, 2012. The
text of the proposed rule change is
available at https://
nasdaqomxbx.cchwallstreet.com/, at
BX’s principal office, and at the
Commission’s Public Reference Room.
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 those statements may be examined at
the places specified in Item III below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
BX recently submitted a proposed
rule change to introduce an Excess
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COMMISSION
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2 17
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U.S.C. 78s(b)(1).
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Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Notices
Order Fee,3 aimed at reducing
inefficient order entry practices of
certain market participants that place
excessive burdens on the systems of BX
and its members and that may
negatively impact the usefulness and
life cycle cost of market data. The fee is
scheduled to be implemented on July 2,
2012. In general, the determination of
whether to impose the fee on a
particular market participant identifier
(‘‘MPID’’) is made by calculating the
ratio between (i) entered orders,
weighted by the distance of the order
from the national best bid or offer
(‘‘NBBO’’), and (ii) orders that execute
in whole or in part. The fee is imposed
on MPIDs that have an ‘‘Order Entry
Ratio’’ of more than 100.
Through this proposed rule change,
the Exchange is modifying the
parameters of the fee slightly to provide
that all calculations under the rule
establishing the fee will be based on
orders received by BX during regular
market hours (generally, 9:30 a.m. to 4
p.m.) 4 and will exclude orders received
at other times, even if they execute
during regular market hours. BX is
making the change because the concerns
about inefficient order entry practices
that have prompted the fee are generally
not present with regard to trading
activity outside of regular market hours,
when volumes are light. BX is also
concerned that lower execution rates
outside of regular market hours may
skew calculations under the rule, such
that an MPID that is considered
acceptably efficient during regular
market hours would be required to pay
a fee under the rule due to its activity
outside of regular market hours.
srobinson on DSK4SPTVN1PROD with NOTICES
2. Statutory Basis
BX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act,5 in general, and
with Sections 6(b)(4) and 6(b)(5) of the
Act,6 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using any facility or system which BX
operates or controls, and is not designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
As originally proposed and as
modified by this proposed rule change,
BX believes that the Order Entry Fee is
3 Securities Exchange Act Release No. 67007 (May
17, 2012), 77 FR 30579 (May 23, 2012) (SR–BX–
2012–033).
4 Regular market hours may be different in some
circumstances, such as on the day after
Thanksgiving, when regular market hours on all
exchanges traditionally end at 1 p.m.
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(4) and (5).
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reasonable because it is designed to
achieve improvements in the quality of
displayed liquidity and market data that
will benefit all market participants. In
addition, although the level of the fee
may theoretically be very high, the fee
is reasonable because market
participants may readily avoid the fee
by making improvements in their order
entry practices that reduce the number
of orders they enter, bring the prices of
their orders closer to the NBBO, and/or
increase the percentage of their orders
that execute. The proposed change to
the fee is reasonable because it will
reduce the likelihood of the fee being
imposed on an MPID that is considered
acceptably efficient during regular
market hours, when the impact of
inefficient trading on BX and other
market participants is highest.
For similar reasons, the fee is
consistent with an equitable allocation
of fees, because although the fee may
apply to only a small number of market
participants, the fee would be applied to
them in order to encourage better order
entry practices that will benefit all
market participants. Ideally, the fee will
be applied to no one, because market
participants will adjust their behavior in
order to avoid the fee. The proposed
change will increase the likelihood that
the fee will not be imposed in
unwarranted circumstances. Finally, BX
believes that the fee is not unfairly
discriminatory. Although the fee may
apply to only a small number of market
participants, it will be imposed because
of the negative externalities that such
market participants impose on others
through inefficient order entry practices.
The proposed modification to the fee is
not unfairly discriminatory because
although it will lessen the potential
impact of the fee on MPIDs that are
active outside of regular market hours,
this change is rationally related to the
fee’s purpose of promoting efficient
trading practices in conditions where
inefficiency may negatively impact BX
and other market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
BX does not believe that the proposed
rule change will result in any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act, as amended.
Specifically, BX believes that the fee
will constrain market participants from
pursuing certain inefficient and
potentially abusive trading strategies. To
the extent that this change may be
construed as a burden on competition,
BX believes that it is appropriate in
order to further the purposes of Section
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39531
6(b)(5) of the Act.7 The proposed change
will lessen any burden on competition
by removing from consideration orders
entered outside of regular market hours,
when concerns about the impact of
inefficient trading on BX and other
market participants are diminished.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.8 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. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or 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 rulecomments@sec.gov. Please include File
Number SR–BX–2012–042 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–BX–2012–042. 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
7 15
8 15
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U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(a)(ii). [sic]
03JYN1
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Federal Register / Vol. 77, No. 128 / Tuesday, July 3, 2012 / Notices
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 the hours of 10 a.m. and
3 p.m. Copies of such filing also will be
available for inspection and copying at
the principal offices 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–BX–2012–042, and should
be submitted on or before July 24, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–16212 Filed 7–2–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67274; File No. SR–BYX–
2012–011]
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 filing with the
Commission a proposal to amend Rule
11.13 entitled ‘‘Order Execution’’ to
modify Exchange system functionality
when the consolidated market is crossed
and to modify the handling of orders
that have been rejected after routing
away through the Exchange’s affiliated
broker-dealer.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Modify Exchange Rule
11.13, Entitled ‘‘Order Execution’’
srobinson on DSK4SPTVN1PROD with NOTICES
June 27, 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 15,
2012, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) 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
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The Exchange is proposing changes to
its system functionality to implement a
price constraint in the event the
Exchange receives a non-routable order
and a Protected Bid 3 and a Protected
Offer 4 are crossed (a ‘‘Crossed Market’’).
The Exchange is also proposing to
provide its Users with the option to
avoid any execution when there is a
Crossed Market. Finally, the Exchange is
proposing a change to the way that it
3 As defined in BYX Rule 1.5(t), Protected Bid
means a bid in a stock that is displayed by an
automated trading center, disseminated pursuant to
an effective national market system plan, and an
automated quotation that is the best bid of a
national securities exchange or association.
4 As defined in BYX Rule 1.5(t), Protected Offer
means an offer in a stock that is displayed by an
automated trading center, disseminated pursuant to
an effective national market system plan, and an
automated quotation that is the best offer of a
national securities exchange or association.
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responds to rejections of orders that
were routed to a Protected Quotation.5
Under current BYX Rules, for any
execution to occur during Regular
Trading Hours,6 the price must be equal
to or better than the Protected NBBO,7
unless the order is marked ISO or unless
the execution falls within another
exception set forth in Rule 611(b) of
Regulation NMS. For any execution to
occur during the Pre-Opening Session 8
or the After Hours Trading Session,9 the
price must be equal to or better than the
highest Protected Bid or lowest
Protected Offer. As noted below, the
Exchange also currently allows
executions of orders outside of Regular
Trading Hours when an order is marked
ISO and there is a Crossed Market.
The restrictions on executions
described above reflect the Exchange’s
implementation of the trade-through
rule of Regulation NMS, Rule 611,
which only applies during Regular
Trading Hours; however the Exchange
has also implemented trade-through
protection outside of Regular Trading
Hours in order to promote the handling
of orders in a consistent and orderly
fashion. Pursuant to the exception of
Rule 611(b)(4) during Regular Trading
Hours, as well as during the PreOpening Session and the After Hours
Trading Session, the Exchange does not
currently impose trade-through
protections when there is a Crossed
Market. In order to constrain the price
of executions when there is a Crossed
Market, in the event that a Protected Bid
is crossing a Protected Offer, whether
during or outside of Regular Trading
Hours, unless an order is marked ISO,
the Exchange will not execute any
portion of a bid at a price more than the
greater of 5 cents or 0.5 percent higher
than the lowest Protected Offer or any
portion of an offer that is not marked
ISO that would execute at a price more
than the greater of 5 cents or 0.5 percent
lower than the highest Protected Bid. In
order to provide an additional option for
Users 10 that do not want any orders to
5 As defined in BYX Rule 1.5(t), Protected
Quotation means a quotation that is a Protected Bid
or Protected Offer.
6 As defined in BYX Rule 1.5(w), Regular Trading
Hours means the time between 9:30 a.m. and 4:00
p.m. Eastern Time.
7 As defined in BYX Rule 1.5(s), Protected NBBO
means the national best bid or offer that is a
Protected Quotation.
8 As defined in BYX Rule 1.5(r), the Pre-Opening
Session means the time between 8:00 a.m. and 9:30
a.m. Eastern Time.
9 As defined in BYX Rule 1.5(c), the After Hours
Trading Session means the time between 4:00 p.m.
and 5:00 p.m. Eastern Time.
10 As defined in BYX Rule 1.5(cc), a User is any
Member or Sponsored Participant who is
authorized to access the Exchange’s system
pursuant to Exchange Rules.
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]]>Agencies
[Federal Register Volume 77, Number 128 (Tuesday, July 3, 2012)]
[Notices]
[Pages 39530-39532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16212]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67272; File No. SR-BX-2012-042]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Its Excess Order Fee
June 27, 2012.
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 June 25, 2012, NASDAQ OMX BX, Inc. (``BX'' or the ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') a
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
BX proposes to institute an excess order fee. [sic] BX will
implement the proposed change on July 2, 2012. The text of the proposed
rule change is available at https://nasdaqomxbx.cchwallstreet.com/, at
BX's principal office, and at the Commission's Public Reference Room.
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 those statements may be examined at
the places specified in Item III below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
BX recently submitted a proposed rule change to introduce an Excess
[[Page 39531]]
Order Fee,\3\ aimed at reducing inefficient order entry practices of
certain market participants that place excessive burdens on the systems
of BX and its members and that may negatively impact the usefulness and
life cycle cost of market data. The fee is scheduled to be implemented
on July 2, 2012. In general, the determination of whether to impose the
fee on a particular market participant identifier (``MPID'') is made by
calculating the ratio between (i) entered orders, weighted by the
distance of the order from the national best bid or offer (``NBBO''),
and (ii) orders that execute in whole or in part. The fee is imposed on
MPIDs that have an ``Order Entry Ratio'' of more than 100.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 67007 (May 17, 2012), 77
FR 30579 (May 23, 2012) (SR-BX-2012-033).
---------------------------------------------------------------------------
Through this proposed rule change, the Exchange is modifying the
parameters of the fee slightly to provide that all calculations under
the rule establishing the fee will be based on orders received by BX
during regular market hours (generally, 9:30 a.m. to 4 p.m.) \4\ and
will exclude orders received at other times, even if they execute
during regular market hours. BX is making the change because the
concerns about inefficient order entry practices that have prompted the
fee are generally not present with regard to trading activity outside
of regular market hours, when volumes are light. BX is also concerned
that lower execution rates outside of regular market hours may skew
calculations under the rule, such that an MPID that is considered
acceptably efficient during regular market hours would be required to
pay a fee under the rule due to its activity outside of regular market
hours.
---------------------------------------------------------------------------
\4\ Regular market hours may be different in some circumstances,
such as on the day after Thanksgiving, when regular market hours on
all exchanges traditionally end at 1 p.m.
---------------------------------------------------------------------------
2. Statutory Basis
BX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\5\ in general, and with Sections
6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees and other charges
among members and issuers and other persons using any facility or
system which BX operates or controls, and is not designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
As originally proposed and as modified by this proposed rule
change, BX believes that the Order Entry Fee is reasonable because it
is designed to achieve improvements in the quality of displayed
liquidity and market data that will benefit all market participants. In
addition, although the level of the fee may theoretically be very high,
the fee is reasonable because market participants may readily avoid the
fee by making improvements in their order entry practices that reduce
the number of orders they enter, bring the prices of their orders
closer to the NBBO, and/or increase the percentage of their orders that
execute. The proposed change to the fee is reasonable because it will
reduce the likelihood of the fee being imposed on an MPID that is
considered acceptably efficient during regular market hours, when the
impact of inefficient trading on BX and other market participants is
highest.
For similar reasons, the fee is consistent with an equitable
allocation of fees, because although the fee may apply to only a small
number of market participants, the fee would be applied to them in
order to encourage better order entry practices that will benefit all
market participants. Ideally, the fee will be applied to no one,
because market participants will adjust their behavior in order to
avoid the fee. The proposed change will increase the likelihood that
the fee will not be imposed in unwarranted circumstances. Finally, BX
believes that the fee is not unfairly discriminatory. Although the fee
may apply to only a small number of market participants, it will be
imposed because of the negative externalities that such market
participants impose on others through inefficient order entry
practices. The proposed modification to the fee is not unfairly
discriminatory because although it will lessen the potential impact of
the fee on MPIDs that are active outside of regular market hours, this
change is rationally related to the fee's purpose of promoting
efficient trading practices in conditions where inefficiency may
negatively impact BX and other market participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
BX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Specifically, BX
believes that the fee will constrain market participants from pursuing
certain inefficient and potentially abusive trading strategies. To the
extent that this change may be construed as a burden on competition, BX
believes that it is appropriate in order to further the purposes of
Section 6(b)(5) of the Act.\7\ The proposed change will lessen any
burden on competition by removing from consideration orders entered
outside of regular market hours, when concerns about the impact of
inefficient trading on BX and other market participants are diminished.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\8\ 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. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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\8\ 15 U.S.C. 78s(b)(3)(a)(ii). [sic]
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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-BX-2012-042 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-BX-2012-042. 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
[[Page 39532]]
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 the hours of 10 a.m.
and 3 p.m. Copies of such filing also will be available for inspection
and copying at the principal offices 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-BX-2012-042, and should be
submitted on or before July 24, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-16212 Filed 7-2-12; 8:45 am]
BILLING CODE 8011-01-P
