[Federal Register Volume 75, Number 5 (Friday, January 8, 2010)]
[Notices]
[Pages 1102-1104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-78]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61271; File No. SR-BX-2009-085]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Extending
the Pilot Period To Receive Inbound Routes of Orders From Nasdaq
Execution Services
December 31, 2009.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on December 23, 2009, NASDAQ OMX BX, Inc. (the ``Exchange'' or
``BX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule
[[Page 1103]]
change as described in Items I and II, below, which Items have been
prepared by BX. BX has designated the proposed rule change as
constituting a non-controversial rule change under Rule 19b-4(f)(6)
under the Act,\3\ which renders the proposal effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
BX submits this proposed rule change to extend the pilot period of
BX's prior approval to receive inbound routes of equities orders from
Nasdaq Execution Services, LLC (``NES'') through March 23, 2010.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, BX 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. BX has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Currently, NES is the approved outbound routing facility of the
NASDAQ Stock Market LLC (``NASDAQ'') for cash equities, providing
outbound routing from NASDAQ to other market centers.\4\ BX also has
been previously approved to receive inbound routes of equities orders
by NES in its capacity as an order routing facility of NASDAQ.\5\ The
Exchange's authority to receive inbound routes of equities orders by
NES is subject to a pilot period ending December 23, 2009. The Exchange
hereby seeks to extend the previously approved pilot period (with the
attendant obligations and conditions) for an additional 3 months,
through March 23, 2010.
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\4\ See Securities Exchange Act Release Nos. 50311 (September 3,
2004), 69 FR 54818 (September 10, 2004) (Order Granting Application
for a Temporary Conditional Exemption Pursuant To Section 36(a) of
the Exchange Act by the National Association of Securities Dealers,
Inc. Relating to the Acquisition of an ECN by The Nasdaq Stock
Market, Inc.) and 52902 (December 7, 2005), 70 FR 73810 (December
13, 2005) (SRNASD-2005-128) (Order Approving a Proposed Rule Change
To Establish Rules Governing the Operation of the INET System). See
also Securities Exchange Act Release Nos. 58752 (October 8, 2008),
73 FR 61181 (October 15, 2008) (SR-NASDAQ-2008-079); 58135 (July 10,
2008), 73 FR 40898 (July 16, 2008) (SR-NASDAQ-2008-061); 58069 (June
30, 2008), 73 FR 39360 (July 9, 2008) (SR-NASDAQ-2008-054); 56708
(October 26, 2007), 72 FR 61925 (November 1, 2007) (SR-NASDAQ-2007-
078); 56867 (November 29, 2007), 72 FR 69263 (December 7, 2007) (SR-
NASDAQ-2007-065); 55335 (February 23, 2007), 72 FR 9369 (March 1,
2007) (SR-NASDAQ-2007-005); 54613 (October 17, 2006), 71 FR 62325
(October 24, 2006) (SR-NASDAQ 2006-043); 54271 (August 3, 2006), 71
FR 45876 (August 10, 2006) (SR-NASDAQ-2006-027); and 54155 (July 14,
2006), 71 FR 41291 (July 20, 2006) (SR-NASDAQ-2006-001).
\5\ See Securities Exchange Act Release No. 59154 (December 23,
2008), 73 FR 80468 (December 31, 2008).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\6\ in general, and with
Section 6(b)(5) of the Act,\7\ in particular, in that the proposal is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Specifically,
the proposed rule change will allow the Exchange to continue receiving
inbound routes of equities orders from NES acting in its capacity as a
facility of Nasdaq, in a manner consistent with prior approvals and
established protections. The Exchange believes that extending the
previously approved pilot period for three months is of sufficient
length to permit both the Exchange and the Commission to assess the
impact of the Exchange's authority to receive direct inbound routes of
equities orders via NES (including the attendant obligations and
conditions).
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
BX does not believe that the proposed rule change will impose any
burden on competition 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. BX has requested that the Commission
waive the 30-day operative delay. BX notes that the proposal will allow
the Exchange to continue receiving inbound routes of equities orders
from NES, in a manner consistent with prior approvals and established
protections, while also permitting the Exchange and the Commission to
assess the impact of the pilot.\12\ 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 period to be extended without interruption through March 23,
2010. For this reason, the Commission designates the proposed rule
change to be operative upon filing with the Commission.\13\
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\10\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its 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.
\11\ Id.
\12\ See supra at II.A.2.
\13\ For the 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 may summarily abrogate
[[Page 1104]]
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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-BX-2009-085 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-2009-085. This file
number should be included on the subject line if e-mail 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 (http://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 inspection and
copying 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 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-BX-
2009-085 and should be submitted on or before January 29, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-78 Filed 1-7-10; 8:45 am]
BILLING CODE 8011-01-P