Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot Program Related to Trading Pauses Due to Extraordinary Market Volatility, 9955-9957 [2013-03186]
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Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
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–CBOE–2013–007. 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–CBOE–
2013–007 and should be submitted on
or before March 5, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–03103 Filed 2–11–13; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68851; File No. SR–BATS–
2013–009]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot
Program Related to Trading Pauses
Due to Extraordinary Market Volatility
February 6, 2013.
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 January
30, 2013, BATS Exchange, Inc. (‘‘BATS’’
or ‘‘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 Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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
a pilot program previously approved by
the Commission related to Rule 11.18,
entitled ‘‘Trading Halts Due to
Extraordinary Market Volatility.’’
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.
1 15
U.S.C.78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
2 17
13 17
CFR 200.30–3(a)(12).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to extend
the effectiveness of the Exchange’s rule
related to individual stock circuit
breakers, which is contained in Rule
11.18(d) and Interpretation and Policy
.05 to Rule 11.18. The rule, explained in
further detail below, is currently
operating as a pilot program set to
expire on February 4, 2013.
On June 10, 2010, the Commission
approved on a pilot basis changes to
BATS Rule 11.18 to provide for uniform
market-wide trading pause standards for
individual securities in the S&P 500®
Index that experience rapid price
movement.5 Later, the Exchange and
other markets proposed extension of the
trading pause standards on a pilot basis
to individual securities in the Russell
1000® Index and specified Exchange
Traded Products, which changes the
Commission approved on September 10,
2010.6 More recently, the Exchange
proposed expansion of the pilot
program to apply to all NMS stocks.7
This expansion was approved on June
23, 2011.8 The pilot program relating to
trading pause standards has been
extended five times since its inception.9
The Exchange believes the benefits to
market participants from the individual
stock trading pause rule should be
continued on a pilot basis until
individual stocks become, on a rolling
basis, subject to the Plan to Address
Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS
5 Securities Exchange Act Release No. 62252
(June 10, 2010), 75 FR 34186 (June 16, 2010) (SR–
BATS–2010–014).
6 Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (SR–BATS–2010–018).
7 Securities Exchange Act Release No. 64435 (May
6, 2011), 76 FR 27684 (May 12, 2011) (SR–BATS–
2011–016).
8 Securities Exchange Act Release No. 64735
(June 23, 2011), 76 FR 38243 (June 29, 2011) (File
Nos. SR–BATS–2011–016; SR–BYX–2011–011; SR–
BX–2011–025; SR–CBOE–2011–049; SR–CHX–
2011–09; SR–EDGA–2011–15; SR–EDGX–2011–14;
SR–FINRA–2011–023; SR–ISE–2011–028; SR–
NASDAQ–2011–067; SR–NYSE–2011–21; SR–
NYSEAmex-2011–32; SR–NYSEArca-2011–26; SR–
NSX–2011–06; SR–Phlx–2011–64).
9 Securities Exchange Act Release No. 63497
(December 9, 2010), 75 FR 78315 (December 15,
2010) (SR–BATS–2010–037); Securities Exchange
Act Release No. 64207 (April 6, 2011), 76 FR 20424
(April 12, 2011) (SR–BATS–2011–011); Securities
Exchange Act Release No. 65081 (August 9, 2011),
76 FR 50798 (August 16, 2011) (SR–BATS–2011–
027); Securities Exchange Act Release No. 66190
(January 19, 2012), 77 FR 3834 (January 25, 2012)
(SR–BATS–2012–001); Securities Exchange Act
Release No. 67520 (July 27, 2012), 77 FR 46129
(August 2, 2012) (SR–BATS–2012–031).
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Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
under the Act (the ‘‘Limit Up-Limit
Down Plan’’ or ‘‘Plan’’).10
The Exchange, in conjunction with
other national securities exchanges and
FINRA, recently filed an amendment to
the Plan to change the date of initial
operations of the Plan from February 4,
2013 to April 8, 2013. The extension
proposed herein would allow the pilot
to continue to operate without
interruption until implementation of the
Limit Up-Limit Down Plan, which will
occur on a rolling basis.
The Exchange proposes to extend the
effective date of the pilot from the
current scheduled expiration date of
February 4, 2013 until February 4, 2014.
The Exchange also proposes to modify
the definition of ‘‘Circuit Breaker
Securities’’ subject to the individual
stock circuit breaker pilot to mean all
NMS stocks other than NMS stocks
subject to the Limit Up-Limit Down
Plan. Accordingly, as securities become
subject to the Limit Up-Limit Down
Plan, they will no longer be Circuit
Breaker Securities subject to the
individual stock trading pause pilot.
become subject to the Limit Up-Limit
Down Plan on a rolling basis.
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. The
proposed changes are being made to
extend the operation of the trading
pause pilot to allow the pilot to
continue to operate without interruption
until implementation of the Limit UpLimit Down Plan, which contributes to
the protection of investors and the
public interest. Other competing equity
exchanges are subject to the same
trading pause requirements specified in
the Plan. Thus, the proposed changes
will not impose any burden on
competition while providing trading
pause requirements specified in the
Plan.
tkelley on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the
Act.11 In particular, the proposal is
consistent with Section 6(b)(5) of the
Act,12 because it would promote just
and equitable principles of trade,
remove impediments to, and perfect the
mechanism of, a free and open market
and a national market system. The
proposed rule change is also consistent
with Section 11A(a)(1) of the Act 13 in
that it seeks to assure fair competition
among brokers and dealers and among
exchange markets. The Exchange
believes that the pilot program promotes
just and equitable principles of trade in
that it promotes transparency and
uniformity across markets concerning
decisions to pause trading in a security
when there are significant price
movements. The Exchange believes that
the pilot program is working well, that
it has been infrequently invoked during
the previous months, and that the
extension of the pilot will allow the
Exchange to further assess the effect of
the pilot on the market until securities
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 14 and Rule
19b–4(f)(6) thereunder.15 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 and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
10 See Securities Exchange Act Release No. 67091
(May 31, 2012), 77 FR 33498 (June 6, 2012) (the
‘‘Limit Up-Limit Down Release’’).
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
13 15 U.S.C. 78k–1(a)(1).
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14 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) 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).
15 17
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Sfmt 4703
to Rule 19b4(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 because such waiver
would allow the pilot program to
continue uninterrupted. Accordingly,
the Commission hereby grants the
Exchange’s request and designates the
proposal operative upon filing. 18
At any time within 60 days of the
filing of such 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 rulecomments@sec.gov. Please include File
Number SR–BATS–2013–009 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–BATS–2013–009. 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
17 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
18 For
E:\FR\FM\12FEN1.SGM
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Federal Register / Vol. 78, No. 29 / Tuesday, February 12, 2013 / Notices
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
publicly available. All submissions
should refer to File Number SR–BATS–
2013–009 and should be submitted on
or before March 5, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–03186 Filed 2–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68839; File No. SR–
NASDAQ–2013–014]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Add
Routing Functionality to the NASDAQ
System
tkelley on DSK3SPTVN1PROD with NOTICES
February 6, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1, and Rule 19b–4 2 thereunder,
notice is hereby given that on January
23, 2013, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by Nasdaq. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
19 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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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to amend Rule 4758,
Order Routing, to add routing
functionality to the NASDAQ System
(‘‘System’’).
The text of the proposed rule change
is below. Proposed new language is
italicized.
*
*
*
*
*
*
*
Equity Rules
*
*
*
4750. Execution Services
*
*
*
*
*
4758. Order Routing
(a) Order Routing Process
(1) No change.
(A) No change.
(i)–(xi) No change.
(xii) QDRK is a routing option under which
orders check the System for available shares
and simultaneously route the remaining
shares to destinations on the System routing
table that are not posting Protected
Quotations within the meaning of Regulation
NMS. If shares remain un-executed after
routing, they are posted on the book. Once
on the book, should the order subsequently
be locked or crossed by another market
center, the System will not route the order to
the locking or crossing market center.
(xiii) QCST is a routing option under which
orders check the System for available shares
and simultaneously route the remaining
shares to destinations on the System routing
table that are not posting Protected
Quotations within the meaning of Regulation
NMS and to certain, but not all, exchanges.
If shares remain un-executed after routing,
they are posted on the book. Once on the
book, should the order subsequently be
locked or crossed by another market center,
the System will not route the order to the
locking or crossing market center.
Orders that do not check the System for
available shares prior to routing may not be
sent to a facility of an exchange that is an
affiliate of Nasdaq, except for orders that are
sent to the NASDAQ OMX BX Equities
Market or to the NASDAQ OMX PSX facility
of NASDAQ OMX PHLX.
(B) No change.
(b)–(d) 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
Exchange included statements
concerning the purpose of and basis for
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,
PO 00000
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9957
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 purpose of the proposed rule
change is to attract additional business
to and enhance the functionality offered
by Nasdaq by providing additional
optional outbound routing services.
Most equities exchanges today provide
routing services and the Exchange offers
a variety of routing strategies. Currently,
Rule 4758, Order Routing, describes the
order routing process and states that all
routing shall be in compliance with
Rule 611 of Regulation NMS under the
Act.3 Furthermore, it enumerates
Nasdaq’s routing strategies: DOT, DOTI,
STGY, SKNY, SCAN, SKIP, TFTY,
MOPP, SAVE, SOLV, LIST and CART.
Proposed Rule 4758(a)(1)(A)(xii) will
provide that QDRK is a routing option
under which orders check the System
for available shares and simultaneously
route to certain destinations on the
System routing table that are not posting
Protected Quotations within the
meaning of Regulation NMS (i.e. ‘‘dark
venues’’ or ‘‘dark pools’’). If shares
remain un-executed after routing, they
are posted on the book. Once on the
book, should the order subsequently be
locked or crossed by another market
center, the System will not route the
order to the locking or crossing market
center. This strategy is intended to
attract market participants that seek to
execute on Nasdaq or on dark pools
without executing on another exchange.
Members may seek to execute in this
manner to interact with resting liquidity
in addition to that available on Nasdaq,
while also minimizing market impact
and transaction fees.
For example, if the National Best Bid/
Offer (‘‘NBBO’’) is $10.00–$10.01, and
Nasdaq, DarkVenueA and ARCA each
offer 100 shares at $10.01, a QDRK order
to buy 1000 shares at $10.01 IOC will
be handled as follows: 100 shares for
execution on Nasdaq and 100 shares
routed to DarkVenue A simultaneously
at $10.01; the remaining 800 shares are
not routed and not executed, and
cancelled back to the entering
participant because it was an IOC order.
The order did not route to ARCA
because it is not a dark venue. As a
second example, if the NBBO is $10.00–
$10.01, and Nasdaq, DarkVenueA and
ARCA each offer 100 shares at $10.01,
a QDRK order to buy 1000 shares at
3 17
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12FEN1
]]>Agencies
[Federal Register Volume 78, Number 29 (Tuesday, February 12, 2013)]
[Notices]
[Pages 9955-9957]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03186]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68851; File No. SR-BATS-2013-009]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Pilot Program Related to Trading Pauses Due to Extraordinary Market
Volatility
February 6, 2013.
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 January 30, 2013, BATS Exchange, Inc. (``BATS'' or
``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 Exchange. The Exchange
has designated this 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)(iii) thereunder,4 which renders it effective upon filing with
the Commission. 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to extend a pilot program previously
approved by the Commission related to Rule 11.18, entitled ``Trading
Halts Due to Extraordinary Market Volatility.''
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
The purpose of this filing is to extend the effectiveness of the
Exchange's rule related to individual stock circuit breakers, which is
contained in Rule 11.18(d) and Interpretation and Policy .05 to Rule
11.18. The rule, explained in further detail below, is currently
operating as a pilot program set to expire on February 4, 2013.
On June 10, 2010, the Commission approved on a pilot basis changes
to BATS Rule 11.18 to provide for uniform market-wide trading pause
standards for individual securities in the S&P 500[supreg] Index that
experience rapid price movement.\5\ Later, the Exchange and other
markets proposed extension of the trading pause standards on a pilot
basis to individual securities in the Russell 1000[supreg] Index and
specified Exchange Traded Products, which changes the Commission
approved on September 10, 2010.\6\ More recently, the Exchange proposed
expansion of the pilot program to apply to all NMS stocks.\7\ This
expansion was approved on June 23, 2011.\8\ The pilot program relating
to trading pause standards has been extended five times since its
inception.\9\ The Exchange believes the benefits to market participants
from the individual stock trading pause rule should be continued on a
pilot basis until individual stocks become, on a rolling basis, subject
to the Plan to Address Extraordinary Market Volatility Pursuant to Rule
608 of Regulation NMS
[[Page 9956]]
under the Act (the ``Limit Up-Limit Down Plan'' or ``Plan'').\10\
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 62252 (June 10, 2010),
75 FR 34186 (June 16, 2010) (SR-BATS-2010-014).
\6\ Securities Exchange Act Release No. 62884 (September 10,
2010), 75 FR 56618 (September 16, 2010) (SR-BATS-2010-018).
\7\ Securities Exchange Act Release No. 64435 (May 6, 2011), 76
FR 27684 (May 12, 2011) (SR-BATS-2011-016).
\8\ Securities Exchange Act Release No. 64735 (June 23, 2011),
76 FR 38243 (June 29, 2011) (File Nos. SR-BATS-2011-016; SR-BYX-
2011-011; SR-BX-2011-025; SR-CBOE-2011-049; SR-CHX-2011-09; SR-EDGA-
2011-15; SR-EDGX-2011-14; SR-FINRA-2011-023; SR-ISE-2011-028; SR-
NASDAQ-2011-067; SR-NYSE-2011-21; SR-NYSEAmex-2011-32; SR-NYSEArca-
2011-26; SR-NSX-2011-06; SR-Phlx-2011-64).
\9\ Securities Exchange Act Release No. 63497 (December 9,
2010), 75 FR 78315 (December 15, 2010) (SR-BATS-2010-037);
Securities Exchange Act Release No. 64207 (April 6, 2011), 76 FR
20424 (April 12, 2011) (SR-BATS-2011-011); Securities Exchange Act
Release No. 65081 (August 9, 2011), 76 FR 50798 (August 16, 2011)
(SR-BATS-2011-027); Securities Exchange Act Release No. 66190
(January 19, 2012), 77 FR 3834 (January 25, 2012) (SR-BATS-2012-
001); Securities Exchange Act Release No. 67520 (July 27, 2012), 77
FR 46129 (August 2, 2012) (SR-BATS-2012-031).
\10\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
---------------------------------------------------------------------------
The Exchange, in conjunction with other national securities
exchanges and FINRA, recently filed an amendment to the Plan to change
the date of initial operations of the Plan from February 4, 2013 to
April 8, 2013. The extension proposed herein would allow the pilot to
continue to operate without interruption until implementation of the
Limit Up-Limit Down Plan, which will occur on a rolling basis.
The Exchange proposes to extend the effective date of the pilot
from the current scheduled expiration date of February 4, 2013 until
February 4, 2014. The Exchange also proposes to modify the definition
of ``Circuit Breaker Securities'' subject to the individual stock
circuit breaker pilot to mean all NMS stocks other than NMS stocks
subject to the Limit Up-Limit Down Plan. Accordingly, as securities
become subject to the Limit Up-Limit Down Plan, they will no longer be
Circuit Breaker Securities subject to the individual stock trading
pause pilot.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\11\ In particular,
the proposal is consistent with Section 6(b)(5) of the Act,\12\ because
it would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system. The proposed rule change is also
consistent with Section 11A(a)(1) of the Act \13\ in that it seeks to
assure fair competition among brokers and dealers and among exchange
markets. The Exchange believes that the pilot program promotes just and
equitable principles of trade in that it promotes transparency and
uniformity across markets concerning decisions to pause trading in a
security when there are significant price movements. The Exchange
believes that the pilot program is working well, that it has been
infrequently invoked during the previous months, and that the extension
of the pilot will allow the Exchange to further assess the effect of
the pilot on the market until securities become subject to the Limit
Up-Limit Down Plan on a rolling basis.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ 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. The proposed changes are
being made to extend the operation of the trading pause pilot to allow
the pilot to continue to operate without interruption until
implementation of the Limit Up-Limit Down Plan, which contributes to
the protection of investors and the public interest. Other competing
equity exchanges are subject to the same trading pause requirements
specified in the Plan. Thus, the proposed changes will not impose any
burden on competition while providing trading pause requirements
specified in the Plan.
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 \14\ and Rule 19b-4(f)(6) thereunder.\15\
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
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 prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(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 because such waiver
would allow the pilot program to continue uninterrupted. Accordingly,
the Commission hereby grants the Exchange's request and designates the
proposal operative upon filing. \18\
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\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 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 such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BATS-2013-009 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-BATS-2013-009. 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
[[Page 9957]]
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 publicly available. All submissions should refer to
File Number SR-BATS-2013-009 and should be submitted on or before March
5, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03186 Filed 2-11-13; 8:45 am]
BILLING CODE 8011-01-P
