Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20417 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 62252 

(June 10, 2010) (SR–EDGX–2011–01), 75 FR 34186 

(June 16, 2010). 

4See Securities Exchange Act Release No. 63507 

(December 9, 2010) (SR–EDGX–2011–22), 75 FR 

78787 (December 16, 2010). 

5See Securities Exchange Act Release No. 62884 

(September 10, 2010) (SR–EDGX–2011–05), 75 FR 

56618 (September 16, 2010). 

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

7 15 U.S.C. 78k–1(a)(1). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64205; File No. SR–EDGX– 

2011–10] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGX Rule 

11.14 To Extend the Operation of the 

Single Stock Circuit Breaker Pilot 

Program 

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 5, 

2011, the EDGX Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘EDGX’’) 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 proposes to amend 

EDGX Rule 11.14 to extend the 

operation of the single stock circuit 

breaker pilot program pursuant to the 

Rule until 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. The text of the 

proposed rule change is attached as 

Exhibit 5 and is available on the 

Exchange’s Web site at http:// 

www.directedge.com, at the Exchange’s 

principal office, and at the Public 

Reference Room of the Commission. 

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 

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 Exchange proposes to amend 

EDGX Rule 11.14 to extend the 

operation of a pilot that allows the 

Exchange to provide for uniform 

market-wide trading pause standards for 

individual securities in the S&P 500 

Index, securities included in the Russell 

1000® Index (‘‘Russell 1000’’), and 

specified Exchange Traded Products 

(‘‘ETP’’) that experience rapid price 

movement (collectively known as 

‘‘Circuit Breaker Securities’’) through 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. 

Background 

Pursuant to Rule 11.14, the Exchange 

is allowed to pause trading in any 

Circuit Breaker Securities when the 

primary listing market for such stock 

issues a trading pause in any Circuit 

Breaker Securities. 

EDGX Rule 11.14 was approved by 

the Commission on June 10, 2010 on a 

pilot basis to end on December 10, 

2010.3 The pilot was subsequently 

extended until April 11, 2011.4 As the 

Exchange noted in its filing to adopt 

EDGX Rule 11.14, during the pilot 

period, the Exchange would continue to 

assess whether additional securities 

need to be added and whether the 

parameters of the rule would need to be 

modified to accommodate trading 

characteristics of different securities. 

The original pilot list of securities was 

all securities included in the S&P 500®

Index (‘‘S&P 500’’). As noted in comment 

letters to the original filing to adopt 

EDGX Rule 11.14, concerns were raised 

that including only securities in the S&P 

500 in the pilot rule was too narrow. In 

particular, commenters noted that 

securities that experienced volatility on 

May 6, 2010, including ETFs, should be 

included in the pilot. 

In response to these concerns, various 

exchanges and national securities 

associations collectively determined to 

expand the list of pilot securities to 

include securities in the Russell 1000 

and specified ETPs to the pilot 

beginning in September 2010.5 The 

Exchange believed that adding these 

securities would address concerns that 

the scope of the pilot may be too 

narrow, while at the same time 

recognizing that during the pilot period, 

the markets will continue to review 

whether and when to add additional 

securities to the pilot and whether the 

parameters of the rule should be 

adjusted for different securities. 

As noted above, during the pilot, the 

Exchange continued to re-assess, in 

consultation with other markets 

whether: (i) Specific ETPs should be 

added or removed from the pilot list; (ii) 

the parameters for invoking a trading 

pause continue to be the appropriate 

standard; and (iii) the parameters 

should be modified. 

The Exchange believes that an 

extension of the pilot would continue to 

promote uniformity regarding decisions 

to pause trading and continue to reduce 

the negative impacts of sudden, 

unanticipated price movements in 

Circuit Breaker Securities. The 

Exchange believes that the pilot is 

working well, that it has been 

infrequently invoked during the past 

four months, and that the Exchange will 

be in a better position to determine the 

efficacy of providing any additional 

functionality or changes to the pilot by 

continuing to assess its operation in 

consultation with other exchange and 

national securities associations. 

Therefore, the Exchange requests an 

extension of the pilot through 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. 

2. Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of the 

Act,6 which requires the rules of an 

exchange to promote just and equitable 

principles of trade, 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. The proposed rule 

change also is designed to support the 

principles of Section 11A(a)(1) 7 of the 

Act in that it seeks to assure fair 

competition among brokers and dealers 

and among exchange markets. The 

Exchange believes that the proposed 

rule meets these requirements in that it 

promotes uniformity across markets 


srobinson on DSKHWCL6B1PROD with NOTICES
20418 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

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. 

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 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

concerning decisions to pause trading in 

a security when there are significant 

price movements. Specifically, an 

extension will allow the Exchange 

additional time to determine the 

efficacy of providing any additional 

changes to the pilot. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is 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 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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 19b– 

4(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 

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–EDGX–2011–10 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–EDGX–2011–10. 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 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–EDGX–2011–10, 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. 2011–8625 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64206; File No. SR– 

NYSEAmex–2011–23] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending NYSE Amex 

Equities Rule 80C, Trading Pauses in 

Individual Securities Due to 

Extraordinary Market Volatility, To 

Extend the Effective Date of the Pilot 

Until 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 

April 6, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on March 31, 

2011, NYSE Amex LLC (the ‘‘Exchange’’ 

or ‘‘NYSE Amex’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I and II 


srobinson on DSKHWCL6B1PROD with NOTICES