20430 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 63097 

(October 13, 2010), 75 FR 64767 (October 20, 2010) 

(SR–BYX–2010–002). 

4Securities Exchange Act Release No. 63513 

(December 9, 2010), 75 FR 78784 (December 16, 

2010) (SR–BYX–2010–007). 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78k–1(a)(1). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an exchange is required to give 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 Commission 

notes that the Exchange has satisfied this 

requirement. 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 Id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64214; File No. SR–BYX– 

2011–007] 

Self-Regulatory Organizations; BATS 

Y–Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Extend the Pilot 

Program Related to Trading Pauses 

Due to Extraordinary Market Volatility 

April 6, 2011. 

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 April 1, 

2011, BATS Y–Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) 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 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 filing with the 

Commission a proposal to extend a pilot 

program 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 http://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, was approved to 

operate under a pilot program set to 

expire on April 11, 2011. The Exchange 

proposes to extend the pilot program to 

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. 

On October 4, 2010, the Exchange 

filed an immediately effective filing to 

adopt various rule changes to bring BYX 

Rules up to date with the changes that 

had been made to the rules of BATS 

Exchange, Inc., the Exchange’s affiliate, 

while BYX’s Form 1 Application to 

register as a national securities exchange 

was pending approval. Such changes 

included changes to the Exchange’s 

Rule 11.18, on a pilot basis, to provide 

for uniform market-wide trading pause 

standards for individual securities in 

the S&P 500® Index, the Russell 1000®

Index and specified Exchange Traded 

Products that experience rapid price 

movement.3 The pilot program relating 

trading pause standards was then 

extended to April 11, 2011.4 The 

Exchange believes the benefits to market 

participants from the individual stock 

trading pause rule should be continued 

on a pilot basis. 

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.5

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,6 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 7 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. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

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 

Because the foregoing 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 for 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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 8 and Rule 19b4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 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) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20431 

12For the purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b-4. 

3The Commission previously approved the 

trading of options on NZD, PZO, SKA, BRB, AUX, 

BPX, CDD, EUI, YUK and SFC. See Securities 

Exchange Act Release No. 55575 (April 3, 2007), 72 

FR 17963 (April 10, 2007) (SR–ISE–2006–59). 

4See Securities Exchange Act Release No. 60536 

(August 19, 2009), 74 FR 43204 (August 26, 2009) 

(SR–ISE–2009–59). 

5See Securities Exchange Act Release No. 61459 

(February 1, 2010), 75 FR 6248 (February 8, 2010) 

(SR–ISE–2010–07). 

6See Securities Exchange Act Release No. 64012 

(March 2, 2011), 76 FR 12778 (March 8, 2011) (SR– 

ISE–2011–11). 

operative delay. 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.12 For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–BYX–2011–007 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–BYX–2011–007. 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 website 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 such filing 

also will be available for inspection and 

copying at the principal offices 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–BYX– 

2011–007, and should be submitted on 

or before May 3, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8684 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64202; File No. SR–ISE– 

2011–16] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to a Market Maker 

Incentive Plan for Foreign Currency 

Options 

April 6, 2011. 

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 March 31, 

2011, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 selfregulatory organization. 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 ISE is proposing to extend an 

incentive plan for market makers in a 

number of foreign currency options (‘‘FX 

Options’’) traded on the Exchange. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.ise.com), at the principal 

office of the Exchange, on the 

Commission’s Web site at http:// 

www.sec.gov, 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 

self-regulatory organization 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 

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 this proposed rule 

change is to extend an incentive plan for 

market makers in options on the New 

Zealand dollar (‘‘NZD’’), the Mexican 

peso (‘‘PZO’’), the Swedish krona 

(‘‘SKA’’), the Brazilian real (‘‘BRB’’), the 

Australian dollar (‘‘AUX’’), the British 

pound (‘‘BPX’’), the Canadian dollar 

(‘‘CDD’’), the euro (‘‘EUI’’), the Japanese 

yen (‘‘YUK’’) and the Swiss franc 

(‘‘SFC’’).3 On August 3, 2009, the 

Exchange adopted an incentive plan 

applicable to market makers in NZD, 

PZO and SKA,4 and on January 19, 

2010, added BRB to the incentive plan,5

and on March 1, 2011, added AUX, 

BPX, CDD, EUI, YUK and SFC.6 The 

Exchange has since extended the date 


srobinson on DSKHWCL6B1PROD with NOTICES