Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to the Extension of the CBSX Individual Stock Trading Pause Pilot Program, 47450-47452 [2012-19356]
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47450
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
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:
wreier-aviles on DSK7SPTVN1PROD with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–BX–2012–055 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 No.
SR–BX–2012–055. 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
10:00 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 Exchange. All comments
received will be posted without change;
the Commission does not edit personal
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Mar<15>2010
15:11 Aug 07, 2012
Jkt 226001
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BX–2012–
055 and should be submitted on or
before August 29, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19353 Filed 8–7–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67574; File No. SR–CBOE–
2012–0690]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to the Extension
of the CBSX Individual Stock Trading
Pause Pilot Program
August 2, 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 July 20,
2012, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder.4
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 extend the
individual stock trading pause pilot
program pertaining to the CBOE Stock
Exchange, LLC (‘‘CBSX,’’ the CBOE’s
stock trading facility). This rule change
simply seeks to extend the pilot. No
other changes to the pilot are being
proposed. The text of the proposed rule
change is available on the Exchange’s
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
Web site (www.cboe.org/Legal), at the
Exchange’s Office of the Secretary and
at 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 those
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Rule 6.3C, Individual Stock Trading
Pauses Due to Extraordinary Market
Volatility, was approved by the
Commission on June 10, 2010 on a pilot
basis. The pilot is currently set to expire
on July 31, 2012.5 The rule was
developed in consultation with U.S.
listing markets to provide for uniform
market-wide trading pause standards for
certain individual stocks that
experience rapid price movement.6 As
the duration of the pilot expires on July
31, 2012, the Exchange is proposing to
5 See Securities Exchange Act Release Nos. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
CBOE–2010–047) (approval order establishing pilot
through December 10, 2010); 63502 (December 9,
2010), 75 FR 78306 (December 15, 2010) (SR–
CBOE–2010–112) (extension of pilot through April
11, 2011); 64194 (April 5, 2011), 76 FR 2–389 (April
12, 2011) (SR–CBOE–2011–031) (extension of pilot
through the earlier of August 11, 2011 or the date
on which a limit up-limit down mechanism to
address extraordinary market volatility, if adopted,
applies to the Circuit Breaker Stocks); 65070
(August 9, 2011), 76 FR 50516 (August 15, 2011)
(SR–CBOE–2011–076) (extension of pilot through
January 31, 2012); and 66166 (January 17, 2012), 77
FR 3311 (January 23, 2012) (extension of pilot
through July 31, 2012).
6 The pilot list of stocks originally included all
stocks in the S&P 500 Index, but it has been
expanded over time to include all NMS stocks,
other than rights and warrants. See Securities
Exchange Act Release Nos. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR–
CBOE–2010–065) (order approving expansion of the
individual stock trading pause pilot to include all
stocks in the Russell 1000 index and a pilot list of
Exchange Traded Products); 64735 (June 23, 2011),
76 FR 38243 (June 29, 2011) (SR–CBOE–2011–049)
(order approving further expansion of the
individual stock trading pause pilot to include all
NMS stocks effective August 8, 2011); and 65824
(November 23, 2011), 76 FR 74111 (November 30,
2011) (SR–CBOE–2011–111) (immediately effective
rule change to amend the individual stock trading
pause pilot to exclude all rights and warrants).
E:\FR\FM\08AUN1.SGM
08AUN1
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
extend the effectiveness of Rule 6.3C
through February 4, 2013. A February 4,
2013 extension date would coincide
with the date on which the pilot
National Market System Plan to Address
Extraordinary Market Volatility (the
‘‘Limit Up-Limit Down Plan’’) becomes
effective.7
2. Statutory Basis
Extension of the pilot period will
allow the Exchange to continue to
operate the pilot on an uninterrupted
basis until the Limit Up-Down Plan
pilot becomes effective. Accordingly,
the Exchange believes the proposed rule
change is consistent with the Act 8 and
the rules and regulations under the Act
applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.9
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirements that
the rules of an exchange be designed to
promote just and equitable principles of
trade, to prevent fraudulent and
manipulative acts and, in general, to
protect investors and the public interest.
The proposed rule change is also
designed to support the principles of
Section 11A(a)(1) 11 of the Act in that it
seeks to assure fair competition among
brokers and dealers and among
exchange markets. The Exchange
believes that the proposed rule meets
these requirements in that it promotes
transparency and uniformity across
markets concerning decisions to pause
trading in a stock when there are
significant price movements.
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
12 15
wreier-aviles on DSK7SPTVN1PROD with NOTICES
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
7 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012).
8 15 U.S.C. 78a et seq.
9 15 U.S.C. 78(f)(b).
10 15 U.S.C. 78(f)(b)(5).
11 15 U.S.C. 78k–1(a)(1).
15:11 Aug 07, 2012
Jkt 226001
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f)(6). 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 Exchange
has satisfied this requirement.
16 17 CFR 240.19b–4(f)(6).
17 17 CFR 240.19b–4(f)(6)(iii).
18 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
13 17
The Exchange neither solicited nor
received comments on the proposal.
VerDate Mar<15>2010
19(b)(3)(A)(iii) of the Act 12 and Rule
19b–4(f)(6) thereunder.13 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) 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 pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b–4(f)(6)(iii)
thereunder.15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 17 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding the
investor confusion that could result
from a temporary interruption in the
pilot program. For this reason, the
Commission designates the proposed
rule change to be operative upon
filing.18
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.
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47451
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
No. SR–CBOE–2012–069 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 No.
SR–CBOE–2012–069. 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
10:00 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 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 No. SR–CBOE–
2012–069 and should be submitted on
or before August 29, 2012.
19 17
E:\FR\FM\08AUN1.SGM
CFR 200.30–3(a)(12).
08AUN1
47452
Federal Register / Vol. 77, No. 153 / Wednesday, August 8, 2012 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–19356 Filed 8–7–12; 8:45 am]
BILLING CODE 8011–01–P
Sections A, B and C below, of the most
significant aspects of such statements.
be changed from ‘‘July 31, 2012’’ to
‘‘February 4, 2013.’’
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) and
Section 11A of the Securities Exchange
Act of 1934 8 (the ‘‘Act’’), in general, and
Section 6(b)(5) of the Act,9 in particular,
in that it is designed, among other
things, to promote clarity, transparency
and full disclosure, in so doing, to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to maintain fair and orderly
markets and protect investors and the
public interest. Moreover, the proposed
rule change is not discriminatory in that
it uniformly applies to all ETP Holders.
The Exchange believes that the
extension of the pilot program will
promote uniformity among markets with
respect to clearly erroneous executions
and should continue uninterrupted
until the February 4, 2013
implementation date of the marketwide
limit up/limit down mechanism to
address extraordinary market volatility.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67576; File No. SR–NSX–
2012–11]
Self-Regulatory Organizations;
National Stock Exchange, Inc.; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change To Amend
Its Rules To Extend Pilot Program
Regarding Clearly Erroneous
Executions
August 2, 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 July 25,
2012, the National Stock Exchange, Inc.
(‘‘Exchange’’) 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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
wreier-aviles on DSK7SPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
National Stock Exchange, Inc.
(‘‘NSX®’’ or ‘‘Exchange’’) is proposing to
amend its rules to extend a certain pilot
program regarding clearly erroneous
executions.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.nsx.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
self-regulatory organization has
prepared summaries, set forth in
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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15:11 Aug 07, 2012
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With this rule change, the Exchange is
proposing to extend the pilot program
currently in effect regarding clearly
erroneous executions under NSX Rule
11.19. Currently, unless otherwise
extended or approved permanently, this
pilot program will expire on July 31,
2012. The instant rule filing proposes to
extend the pilot program until February
4, 2013 as defined in Commentary .05
of Rule 11.20.
NSX Rule 11.19 (Clearly Erroneous
Executions) was approved by the
Securities and Exchange Commission
(the ‘‘Commission’’) on September 10,
2010 on a pilot basis to end on
December 10, 2010.3 The pilot program
end date was subsequently extended
until April 11, 2011.4 Similar rule
changes were adopted by other markets
in the national market system in a
coordinated manner. During the pilot
period, the Exchange, in conjunction
with the Commission and other markets,
has continued to assess the effectiveness
of the pilot program. The pilot program
end date was further extended until
August 11, 2011 or the date on which
a limit up/limit down mechanism to
address extraordinary market volatility,
if adopted applies.5 The pilot program
was then again lengthened until January
31, 2012.6 Finally, the date was
extended until July 31, 2012.7 The
Exchange, in consultation with the
Commission and other markets, is now
proposing that this pilot program be
extended until February 4, 2013 to
coordinate with the implementation of a
limit up/limit down mechanism to
address extraordinary market volatility.
Accordingly, pursuant to the instant
rule filing, the expiration date of the
pilot program referenced in the first two
sentences of Rule 11.19 is proposed to
3 See Securities Exchange Act Release No. 62886
(September 10, 2010), 75 FR 56613 (September 16,
2010) (SR–NSX–2010–07).
4 See Securities Exchange Act Release No. 63484
(December 9, 2010), 75 FR 78330 (December 15,
2010) (SR–NSX–2010–16).
5 See Securities Exchange Act Release No. 34–
64242 (April 7, 2011), 76 FR 20763 (April 15, 2011)
(SR–NSX–2011–05).
6 See Securities Exchange Act Release No. 34–
65067 (August 9, 2011), 76 FR 50533 (August 15,
2011) (SR–NSX–2011–09).
7 See Securities Exchange Act Release No. 34–
66221 (January 24, 2012), 77 FR 4597 (January 30,
2012) (SR–NSX–2012–02).
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Sfmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any inappropriate burden on
competition.
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.
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 10 and Rule
19b–4(f)(6) thereunder.11 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) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
8 15 U.S.C. 78f(b) and 15 U.S.C. 78k–1,
respectively.
9 15 U.S.C. 78f(b)(5).
10 15 U.S.C. 78s(b)(3)(A)(iii).
11 17 CFR 240.19b–4(f)(6).
E:\FR\FM\08AUN1.SGM
08AUN1
]]>Agencies
[Federal Register Volume 77, Number 153 (Wednesday, August 8, 2012)]
[Notices]
[Pages 47450-47452]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19356]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67574; File No. SR-CBOE-2012-0690]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Related to the Extension of the CBSX Individual Stock
Trading Pause Pilot Program
August 2, 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 July 20, 2012, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the
Exchange. The Exchange has designated the proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the individual stock trading pause
pilot program pertaining to the CBOE Stock Exchange, LLC (``CBSX,'' the
CBOE's stock trading facility). This rule change simply seeks to extend
the pilot. No other changes to the pilot are being proposed. The text
of the proposed rule change is available on the Exchange's Web site
(www.cboe.org/Legal), at the Exchange's Office of the Secretary and at
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 those 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
Rule 6.3C, Individual Stock Trading Pauses Due to Extraordinary
Market Volatility, was approved by the Commission on June 10, 2010 on a
pilot basis. The pilot is currently set to expire on July 31, 2012.\5\
The rule was developed in consultation with U.S. listing markets to
provide for uniform market-wide trading pause standards for certain
individual stocks that experience rapid price movement.\6\ As the
duration of the pilot expires on July 31, 2012, the Exchange is
proposing to
[[Page 47451]]
extend the effectiveness of Rule 6.3C through February 4, 2013. A
February 4, 2013 extension date would coincide with the date on which
the pilot National Market System Plan to Address Extraordinary Market
Volatility (the ``Limit Up-Limit Down Plan'') becomes effective.\7\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 62252 (June 10,
2010), 75 FR 34186 (June 16, 2010) (SR-CBOE-2010-047) (approval
order establishing pilot through December 10, 2010); 63502 (December
9, 2010), 75 FR 78306 (December 15, 2010) (SR-CBOE-2010-112)
(extension of pilot through April 11, 2011); 64194 (April 5, 2011),
76 FR 2-389 (April 12, 2011) (SR-CBOE-2011-031) (extension of pilot
through the earlier of August 11, 2011 or the date on which a limit
up-limit down mechanism to address extraordinary market volatility,
if adopted, applies to the Circuit Breaker Stocks); 65070 (August 9,
2011), 76 FR 50516 (August 15, 2011) (SR-CBOE-2011-076) (extension
of pilot through January 31, 2012); and 66166 (January 17, 2012), 77
FR 3311 (January 23, 2012) (extension of pilot through July 31,
2012).
\6\ The pilot list of stocks originally included all stocks in
the S&P 500 Index, but it has been expanded over time to include all
NMS stocks, other than rights and warrants. See Securities Exchange
Act Release Nos. 62884 (September 10, 2010), 75 FR 56618 (September
16, 2010) (SR-CBOE-2010-065) (order approving expansion of the
individual stock trading pause pilot to include all stocks in the
Russell 1000 index and a pilot list of Exchange Traded Products);
64735 (June 23, 2011), 76 FR 38243 (June 29, 2011) (SR-CBOE-2011-
049) (order approving further expansion of the individual stock
trading pause pilot to include all NMS stocks effective August 8,
2011); and 65824 (November 23, 2011), 76 FR 74111 (November 30,
2011) (SR-CBOE-2011-111) (immediately effective rule change to amend
the individual stock trading pause pilot to exclude all rights and
warrants).
\7\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012).
---------------------------------------------------------------------------
2. Statutory Basis
Extension of the pilot period will allow the Exchange to continue
to operate the pilot on an uninterrupted basis until the Limit Up-Down
Plan pilot becomes effective. Accordingly, the Exchange believes the
proposed rule change is consistent with the Act \8\ and the rules and
regulations under the Act applicable to a national securities exchange
and, in particular, the requirements of Section 6(b) of the Act.\9\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts and, in general, to
protect investors and the public interest. The proposed rule change is
also designed to support the principles of Section 11A(a)(1) \11\ of
the Act in that it seeks to assure fair competition among brokers and
dealers and among exchange markets. The Exchange believes that the
proposed rule meets these requirements in that it promotes transparency
and uniformity across markets concerning decisions to pause trading in
a stock when there are significant price movements.
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\8\ 15 U.S.C. 78a et seq.
\9\ 15 U.S.C. 78(f)(b).
\10\ 15 U.S.C. 78(f)(b)(5).
\11\ 15 U.S.C. 78k-1(a)(1).
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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 neither solicited nor received comments on the
proposal.
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 \12\ and Rule 19b-4(f)(6) thereunder.\13\
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) 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 pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6)(iii) thereunder.\15\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). 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
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \17\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the pilot program to continue uninterrupted, thereby
avoiding the investor confusion that could result from a temporary
interruption in the pilot program. For this reason, the Commission
designates the proposed rule change to be operative upon filing.\18\
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\18\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 No. SR-CBOE-2012-069 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 No. SR-CBOE-2012-069. 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
10:00 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 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 No. SR-CBOE-2012-069 and should be
submitted on or before August 29, 2012.
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\19\ 17 CFR 200.30-3(a)(12).
[[Page 47452]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19356 Filed 8-7-12; 8:45 am]
BILLING CODE 8011-01-P
