2732 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

15For 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). 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62468 

(July 7, 2010), 75 FR 41258. 

4See Letter from Joe Ratterman, Chairman and 

Chief Executive Officer, BATS Global Markets, Inc., 

to Hon. Mary Schapiro, Chairman, Commission, 

dated July 1, 2010 (‘‘BATS Letter’’); Letter from Jose 

Marques, Managing Director, Deutsche Bank 

Securities Inc., to Elizabeth M. Murphy, Secretary, 

Commission, dated July 21, 2010 (‘‘Deutsche Bank 

Letter’’); Letter from Janet M. Kissane, Senior Vice 

President, Legal and Corporate Secretary, NYSE 

Euronext, to Elizabeth Murphy, Secretary, 

Commission, dated August 3, 2010 (‘‘NYSE Letter’’); 

Letter from Ann L. Vlcek, Managing Director and 

Associate General Counsel, Securities Industry and 

Financial Markets Association, to Elizabeth M. 

Murphy, Secretary, Commission, dated June 25, 

2010 (‘‘SIFMA Letter’’). 

5See Letter from T. Sean Bennett, Assistant 

General Counsel, Nasdaq, to Elizabeth M. Murphy, 

Secretary, Commission (‘‘Nasdaq response’’). 

6See Securities Exchange Act Release No. 62740 

(August 18, 2010), 75 FR 52049 (August 24, 2010). 

7See Securities Exchange Act Release No. 63098, 

75 FR 64384 (October 19, 2010). 

8See Letter from Timothy Quast, Managing 

Director, ModernIR, to Elizabeth M. Murphy, 

Secretary, Commission, dated November 11, 2010. 

9 15 U.S.C. 78s(b)(2). 

designates the proposal operative upon 

filing.15

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–BX–2011–002 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–2011–002. 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 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 

a.m. and 3 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–BX– 

2011–002 and should be submitted on 

or before February 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–772 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63685; File No. SR– 

NASDAQ–2010–074] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Designation of Longer Period for 

Commission Action on Proceedings To 

Determine Whether To Disapprove 

Proposed Rule Change, as Modified by 

Amendment No. 1, To Adopt Rule 

4753(c) as a Six Month Pilot in 100 

NASDAQ-Listed Securities 

January 10, 2011. 

I. Introduction 

On June 18, 2010, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or the 

‘‘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 

implement, on a six-month pilot basis, 

a volatility-based trading pause in 100 

Nasdaq-listed securities (‘‘Volatility 

Guard’’). On June 25, 2010, Nasdaq filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended, was published for comment 

in the Federal Register on July 15, 

2010.3 The Commission received four 

comment letters on the proposal.4

Nasdaq responded to these comments 

on August 12, 2010.5 The Commission 

subsequently extended the time period 

in which to either approve the proposed 

rule change, or to institute proceedings 

to determine whether to disapprove the 

proposed rule change, to October 13, 

2010.6 On October 13, 2010, the 

Commission issued an order instituting 

disapproval proceedings.7 The 

Commission thereafter received one 

comment letter, which requested that 

the proposed rule change be 

disapproved.8

Section 19(b)(2) of the Act 9 provides 

that, after initiating dispproval 

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 the 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 July 

15, 2010. January 11, 2011 is 180 days 

from that date, and March 12, 2011, is 

an additional 60 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 and the issues 

raised in the comment letters that have 

been submitted in connection with this 

filing. Specifically, the Commission 

believes the proposal raises issues as to 

whether the Volatility Guard, by halting 

trading on Nasdaq when the price of a 

security moves quickly over a short 

period of time, will exacerbate the 

volatility of trading in that security on 

the other exchanges and over-thecounter trading centers that remain 

open. In addition, because the 

thresholds for triggering the Volatility 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2733 

10 15 U.S.C. 78s(b)(2). 

11The Comission notes that it is extending the 

time period in which to issue an approval or 

disapproval order to March 11, 2011, since the full 

60-day extension would expire on Saturday, March 

12, 2011. 

12 17 CFR 200.30–3(a)(57). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3For a complete description of Phlx XL II, see 

Securities Exchange Act Release No. 59995 (May 

28, 2009), 74 FR 26750 (June 3, 2009) (SR–Phlx– 

2009–32). The instant proposed fees will apply only 

to option orders entered into, and routed by, the 

Phlx XL II system. 

4Select Symbols refer to the symbols which are 

subject to ISE’s Rebates and Fees for Adding and 

Removing Liquidity in Select Symbols in ISE’s 

Schedule of Fees. 

5See SR–ISE–2010–120. 

6See Securities Exchange Act Release No. 59995 

(May 28, 2009), 74 FR 26750 (June 3, 2009) (SR– 

Phlx–2009–32). 

7See SR–ISE–2010–120. See also E-mail from 

Angela S. Dunn, Assistant General Counsel, Phlx, 

to Johnna B. Dumler, Special Counsel, Commission, 

dated January 5, 2011. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

Guard, and the length of the trading halt 

that results, differ from those of the 

recently approved, market-wide singlestock circuit breakers, the Commission 

believes the proposal raises issues as to 

whether the operation of the Volatility 

Guard will interfere with, or otherwise 

limit the effectiveness of, the circuit 

breakers, the goal of which is to prevent 

potentially destabilizing price volatility 

across the U.S. securities markets. 

Extending the time within which to 

approve or disapprove this proposed 

rule change will enable the Commission 

to more fully consider these issues. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the 

Act,10 designates March 11, 2011, as the 

date by which the Commission should 

either approve or disapprove the 

proposed rule change.11

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–771 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63679; File No. SR–Phlx– 

2010–187] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Routing Fees 

January 7, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

29, 2010, NASDAQ OMX PHLX, Inc. 

[sic] (‘‘Phlx’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

fees governing pricing for Exchange 

members using the Phlx XL II system,3

for routing standardized equity and 

index option Customer and Professional 

orders to away markets for execution. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on January 3, 2011. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, at the 

Commission’s Public Reference Room, 

and on the Commission’s Web site at 

http://www.sec.gov. 

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 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 recoup costs that the 

Exchange incurs for routing and 

executing Customer and Professional 

orders in equity and index options to 

the International Securities Exchange 

LLC (‘‘ISE’’) in Select Symbols 4 for 

orders of 100 or more contracts. ISE 

recently amended its fees and the 

amendments proposed herein reflect the 

proposed ISE amendments.5

In May 2009, the Exchange adopted 

Rule 1080(m)(iii)(A) to establish Nasdaq 

Options Services LLC (‘‘NOS’’), a 

member of the Exchange, as the 

Exchange’s exclusive order router.6 NOS 

is utilized by the Phlx XL II system 

solely to route orders in options listed 

and open for trading on the Phlx XL II 

system to destination markets. 

Currently, the Exchange assesses a 

Routing Fee of $0.26 per contract for 

Customer orders and $0.31 per contract 

for Professional orders. The Exchange 

proposes to amend its Routing Fees for 

orders routed to ISE in Select Symbols 

by assessing $0.18 per contract for 

Customer orders and $0.34 per contract 

for Professional Orders. 

The Exchange also proposes to 

remove a footnote reference to the ISE 

Select Symbols which states ‘‘[t]his fee 

applies to orders of 100 or more 

contracts.’’ This proposal reflects recent 

amendments to ISE’s fees, which 

eliminate the fee differential between 

priority customers with 100 or more 

contracts and priority customers with 

less than 100 contracts.7 All other 

orders that are routed to ISE, which are 

not in the Select Symbols, would be 

assessed the rates labeled ‘‘ISE’’. 

The Exchange is proposing these fees 

to recoup the majority of transaction 

and clearing costs associated with 

routing Customer and Professional 

orders to ISE in Select Symbols. These 

proposed fees will enable the Exchange 

to recover the transaction fees assessed 

by ISE, where applicable, plus clearing 

fees for the execution of Customer and 

Professional orders routed from the Phlx 

XL II system. As with all fees, the 

Exchange may adjust these Routing Fees 

in response to competitive conditions 

by filing a new proposed rule change. 

While fee changes pursuant to this 

proposal are effective upon filing, the 

Exchange has designated these changes 

to be operative on January 3, 2011. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 8

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 9 in particular, 

in that it is an equitable allocation of 

reasonable fees and other charges among 

Exchange members. The Exchange 

believes that these fees are reasonable 

because the Exchange is seeking to 

recoup costs that it incurs when routing 

orders to ISE in Select Symbols on 

mstockstill on DSKH9S0YB1PROD with NOTICES