Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change With Respect to INAV Pegged Orders for ETFs, 22925-22926 [2013-08974]
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Federal Register / Vol. 78, No. 74 / Wednesday, April 17, 2013 / Notices
Government and agency securities.
FICC/GSD provides clearing, netting,
settlement, risk management, central
counterparty services and a guarantee of
trade completion for the following
securities: (i) U.S. Treasury bills, notes,
bonds, Treasury inflation-protected
securities (TIPS), and Separate Trading
of Registered Interest and Principal
Securities (STRIPS), and (ii) Federal
agency notes, bonds and zero-coupon
securities that are book-entry, Fedwire
eligible and non-mortgage backed. FICC/
GSD accepts buy-sell transactions,
repurchase and reverse repurchase
agreement transactions (repos), and
Treasury auction purchases in several
types of U.S. Government securities.
FICC/MBSD is the only centralized
clearing facility in the non-private label
mortgage-backed securities market.
FICC/MBSD provides clearing, netting,
settlement, risk management, pool
notification, central counterparty
services and a guarantee of trade
completion for pass-through mortgagebacked securities issued by the
Government National Mortgage
Association (‘‘Ginnie Mae’’), the Federal
Home Loan Mortgage Corporation
(‘‘Freddie Mac’’) and the Federal
National Mortgage Association (‘‘Fannie
Mae’’). FICC/MBSD also processes
options trades for ‘‘to-be-announced’’
transactions.
Additional information concerning
FICC and its operations may be found in
the schedule and non-confidential
exhibits appended to FICC’s amended
Form CA–1.22 Schedule A to FICC’s
amended Form CA–1 includes a
description of the risk management
procedures utilized by FICC/GSD and
FICC/MBSD. Exhibits A and B provide
a list of FICC’s Board of Directors and
its officers and senior managers,
respectively. Exhibit C includes both a
narrative and graphical depiction of
FICC’s organizational structure, and
Exhibit E includes copies of the current
rulebooks for both FICC/GSD and FICC/
MBSD, along with copies of FICC’s
governing documents. Finally, Exhibit J
provides a description of FICC’s services
and functions.
sroberts on DSK5SPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning FICC’s amended
Form CA–1, including whether FICC
has satisfied the Act’s requirements for
registration. Comments may be
22 FICC’s amended Form CA–1, including the
exhibits, attachments and the schedule referenced
above, is available online at www.sec.gov/rules/
other.shtml, as well as at the Commission’s Public
Reference Room.
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16:50 Apr 16, 2013
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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 600–23 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 600–23. 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 of submission. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the amended Form CA–1, all
subsequent amendments, all written
statements with respect to FICC’s
amended Form CA–1 that are filed with
the Commission, and all written
communications relating to the
amended Form CA–1 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.
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 600–23 and should be
submitted on or before June 3, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–08924 Filed 4–16–13; 8:45 am]
BILLING CODE 8011–01–P
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CFR 200.30–3(a)(12).
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22925
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69363; File No. SR–
NASDAQ–2012–117]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Designation of Longer Period for
Commission Action on Proceedings To
Determine Whether To Approve or
Disapprove a Proposed Rule Change
With Respect to INAV Pegged Orders
for ETFs
April 11, 2013.
On October 2, 2012, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend NASDAQ Rule 4751(f)(4) to
include a new Intraday Net Asset Value
(‘‘INAV’’) Pegged Order for ExchangeTraded Funds (‘‘ETFs’’) where the
component stocks underlying the ETFs
are U.S. Component Stocks as defined
by Rule 5705(a)(1)(C) and 5705(b)(1)(D).
The proposed rule change was
published for comment in the Federal
Register on October 18, 2012.3 The
Commission received one comment
letter on the proposal.4 On November
21, 2012, pursuant to Section 19(b)(2) of
the Act,5 the Commission extended the
time period for Commission action on
the proposed rule change to January 16,
2013.6 The Commission thereafter
received one response letter from the
Exchange.7 On January 16, 2013, the
Commission instituted proceedings to
determine whether to approve or
disapprove the proposed rule change.8
The Commission thereafter received one
comment letter and one response letter
from the Exchange.9
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 68042
(Oct. 12, 2012), 77 FR 64167.
4 See Letter from Dorothy Donohue, Deputy
General Counsel, Investment Company Institute,
dated Nov. 8, 2012.
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 68279,
77 FR 70857 (Nov. 27, 2012).
7 See Letter from Stephen Matthews, Senior
Associate General Counsel, NASDAQ OMX, dated
Jan. 15, 2013.
8 See Securities Exchange Act Release No. 68672,
78 FR 4949 (Jan. 23, 2013).
9 See Letter from Dorothy Donohue, Deputy
General Counsel, Investment Company Institute,
dated Feb. 13, 2013. See Letter from Jeffrey S. Davis,
Vice President and Deputy General Counsel,
NASDAQ OMX, dated Feb. 27, 2013.
2 17
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22926
Federal Register / Vol. 78, No. 74 / Wednesday, April 17, 2013 / Notices
Section 19(b)(2) of the Act 10 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
October 18, 2012. April 16, 2013 is 180
days from that date, and June 15, 2013
is 240 days from that date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
this proposed rule change, the issues
raised in the comment letters that have
been submitted in response to the
proposed rule change, including
comment letters submitted in response
to the Order Instituting Proceedings,
and the Exchange’s responses to such
comments.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Act,11 designates June 15, 2013 as the
date by which the Commission should
either approve or disapprove the
proposed rule change (File Number SR–
NASDAQ–2012–117).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary .
[FR Doc. 2013–08974 Filed 4–16–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69364; File No. SR–CBOE–
2013–026]
sroberts on DSK5SPTVN1PROD with NOTICES
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing of a
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to
Complex Orders
April 11, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
10 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
12 17 CFR 200.30–3(a)(57).
11 15
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16:50 Apr 16, 2013
Jkt 229001
‘‘Act’’),1 and Rule 19b-4 thereunder,2
notice is hereby given that on March 28,
2013, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. On April 11,
2013, the Exchange filed Amendment
No. 1 to the proposed rule change. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as amended, from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposed to amend its
rules related to complex orders. The text
of the proposed rule change is provided
below.3
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Chicago Board Options Exchange,
Incorporated Rules
*
*
*
*
*
Rule 6.53. Certain Types of Orders
Defined
One or more of the following order
types may be made available on a classby-class basis. Certain order types may
not be made available for all Exchange
systems. The classes and/or systems for
which the order types shall be available
will be as provided in the Rules, as the
context may indicate, or as otherwise
specified via Regulatory Circular.
(a)–(w) No change.
(x) Leg Order. A leg order is a limit
order on the EBook that represents one
leg of a complex order resting on the
COB if the ratio of that leg is equal to
or can be reduced to one (1) (e.g. 1:1,
1:2, 1:3) and the complex order is
noncontingent. A leg order is a firm
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The Exchange notes that it has separately
proposed, among other things, to add Interpretation
and Policy .01 to Rule 6.53 and to add paragraph
(f) to Rule 6.53C, Interpretation and Policy .06. See
Exchange Act Release No. 34–69082 (March 8,
2013), 78 FR 16351 (March 14, 2013) (SR–CBOE–
2013–030) (as amended by Amendment No. 1, filed
March 26, 2013) (proposed rule change to modify
the Exchange’s rules to address certain option order
handling procedures and quoting obligations on the
Exchange after the implementation of the market
wide equity Plan to Address Extraordinary Market
Volatility). Those proposed changes are pending
approval of the Commission and thus are not
included in the rule text in this rule filing. The
Exchange does not believe that the changes
proposed in SR–CBOE–2013–030 have any effect on
the proposed changes in this rule filing.
2 17
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Frm 00085
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order that may be included in the
Exchange’s displayed best bid or offer
(‘‘Exchange BBO’’) on the EBook. A leg
order functions as set forth in Rule
6.53C(c)(iv) .
*
*
*
*
*
Rule 6.53C. Complex Orders on the
Hybrid System
(a) Definition: No change.
(b) Types of Complex Orders: No
change.
(c) Complex Order Book
(i)–(iii) No change.
(iv) Leg Orders:
(1) Generation of Leg Orders. Leg
orders may be automatically generated
on behalf of complex orders so that they
are represented in the individual leg
markets. Specifically, the System will
evaluate the COB when a complex order
enters the COB, when the Exchange BBO
changes and at a regular time interval
to be determined by the Exchange
(which interval shall not exceed one (1)
second) to determine whether leg orders
may be generated or displayed in
accordance with the provisions in
subparagraphs (A) through (C) below.
The Exchange may determine to limit
the number of leg orders generated on
an objective basis.
(A) A leg order will be automatically
generated for a leg of a complex order
resting on the top of the COB: (I) if the
price of the complex order is inside the
‘‘derived net market,’’ which is based on
the derived net price of the best-priced
orders or quotes (other than leg orders)
in the EBook, and (II) at a price at which
net price execution of the complex order
can be achieved if the other leg(s) of the
complex order executes against the bestpriced orders or quotes (other than leg
orders). Notwithstanding the foregoing,
a leg order will not be generated if it
would lock or cross the NBBO.
(B) A leg order will only be displayed
in the EBook if the price matches or
improves the Exchange BBO. If multiple
resting complex orders in different
strategies generate leg orders for the
same price on the same side of a series,
then the leg order with the largest size
will be displayed. If such leg orders are
also for the same size, then the first leg
order generated will be displayed.
(C) The size of a leg order will be the
lesser of (I) the size of the complex order
and (II) the maximum size available in
the EBook for the other leg(s) of the
complex order (divided by the leg ratio,
if applicable). If multiple resting
complex orders in the same strategy
generate leg orders for the same price on
the same side of a series, then the sizes
of the leg orders will be aggregated
(those leg orders will be treated as a
single order until execution).
E:\FR\FM\17APN1.SGM
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]]>Agencies
[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Notices]
[Pages 22925-22926]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08974]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69363; File No. SR-NASDAQ-2012-117]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Designation of Longer Period for Commission Action on
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change With Respect to INAV Pegged Orders for ETFs
April 11, 2013.
On October 2, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend NASDAQ Rule 4751(f)(4) to include a new
Intraday Net Asset Value (``INAV'') Pegged Order for Exchange-Traded
Funds (``ETFs'') where the component stocks underlying the ETFs are
U.S. Component Stocks as defined by Rule 5705(a)(1)(C) and
5705(b)(1)(D). The proposed rule change was published for comment in
the Federal Register on October 18, 2012.\3\ The Commission received
one comment letter on the proposal.\4\ On November 21, 2012, pursuant
to Section 19(b)(2) of the Act,\5\ the Commission extended the time
period for Commission action on the proposed rule change to January 16,
2013.\6\ The Commission thereafter received one response letter from
the Exchange.\7\ On January 16, 2013, the Commission instituted
proceedings to determine whether to approve or disapprove the proposed
rule change.\8\ The Commission thereafter received one comment letter
and one response letter from the Exchange.\9\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 68042 (Oct. 12,
2012), 77 FR 64167.
\4\ See Letter from Dorothy Donohue, Deputy General Counsel,
Investment Company Institute, dated Nov. 8, 2012.
\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 68279, 77 FR 70857
(Nov. 27, 2012).
\7\ See Letter from Stephen Matthews, Senior Associate General
Counsel, NASDAQ OMX, dated Jan. 15, 2013.
\8\ See Securities Exchange Act Release No. 68672, 78 FR 4949
(Jan. 23, 2013).
\9\ See Letter from Dorothy Donohue, Deputy General Counsel,
Investment Company Institute, dated Feb. 13, 2013. See Letter from
Jeffrey S. Davis, Vice President and Deputy General Counsel, NASDAQ
OMX, dated Feb. 27, 2013.
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[[Page 22926]]
Section 19(b)(2) of the Act \10\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on October 18, 2012. April 16, 2013 is 180 days from
that date, and June 15, 2013 is 240 days from that date.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change, the issues raised in the comment letters that have been
submitted in response to the proposed rule change, including comment
letters submitted in response to the Order Instituting Proceedings, and
the Exchange's responses to such comments.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\11\ designates June 15, 2013 as the date by which the Commission
should either approve or disapprove the proposed rule change (File
Number SR-NASDAQ-2012-117).
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary .
[FR Doc. 2013-08974 Filed 4-16-13; 8:45 am]
BILLING CODE 8011-01-P
