78272 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 19b-4(f)(2). 

8The text of the proposed rule change is available 

on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGX, and at the 

Commission’s Public Reference Room. 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

opening cross. Since the Exchange 

routes to multiple trading centers for the 

opening cross, such as NYSE, the 

Exchange proposes to amend the 

description of the ‘‘O’’ flag to state that 

it applies to orders routed to the 

primary exchange’s opening cross. 

The Exchange proposes to add an 

additional rebate and corresponding 

new flag to its fee schedule. Orders that 

are routed to BATS BYX Exchange that 

remove liquidity using order types 

ROUC or ROBY will yield a ‘‘BY’’ flag 

and be rebated $0.0003 per share. 

Finally, the Exchange proposes to 

clarify in the Flag K description that the 

BATS Exchange referred to is the BATS 

BZX Exchange. 

EDGX Exchange proposes to 

implement these amendments to the 

Exchange fee schedule on December 1, 

2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,4

in general, and furthers the objectives of 

Section 6(b)(4),5 in particular, as it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily direct 

order flow to competing venues if they 

deem fee levels at a particular venue to 

be excessive. The proposed rule change 

reflects a competitive pricing structure 

designed to incent market participants 

to direct their order flow to the 

Exchange. The Exchange believes that 

the proposed rates are equitable in that 

they apply uniformly to all Members. 

The Exchange believes the fees and 

credits remain competitive with those 

charged by other venues and therefore 

continue to be reasonable and equitably 

allocated to Members. 

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 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3) of 

the Act 6 and Rule 19b–4(f)(2) 7

thereunder. At any time within 60 days 

of the filing of such 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–EDGX–2010–20 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–2010–20. 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,8 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–EDGX– 

2010–20 and should be submitted on or 

before January 5, 2011. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31432 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63468; File No. SR–EDGX– 

2010–19] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Fee 

Schedule To Add Two New Routing 

Options 

December 8, 2010. 

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 December 

1, 2010, 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 self-regulatory 

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 Exchange proposes to amend its 

fee schedule, which contains a list of 

routing options, to add two new 


hsrobinson on DSK69SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 78273 

3 15 U.S.C. 78f(b)(5). 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires the Exchange 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 on which the 

Exchange filed the proposed rule change, or such 

shorter time as designated by the Commission. The 

Commission has waived the five-day pre-filing 

requirement. 

6 17 CFR 240.19b–4(f)(6)(iii). 

7 Id. 

8For the purposes only of waiving the operative 

date 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). 

additional ones. 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’s fee schedule contains 

a current list of routing options. The 

Exchange proposes to amend this 

schedule to add certain new routing 

options, effective upon filing with the 

Commission. The Exchange intends to 

implement the rule change on or about 

December 1, 2010. 

The Exchange proposes to introduce 

the ROBX and ROBY routing options 

and add these to its routing table, which 

is part of the Exchange fee schedule. 

The Exchange proposes to add the 

following descriptions of the ROBY and 

ROBX routing strategies to its routing 

table: For the ROBY strategy, the order 

sweeps the EDGX book and routes to 

BATS BYX Exchange as an immediate 

or cancel (IOC) order, with the 

remainder being cancelled if there is no 

execution. For the ROBX strategy, the 

order sweeps the EDGX book and routes 

to Nasdaq BX Exchange as an immediate 

or cancel (IOC) order, with the 

remainder being cancelled if there is no 

execution. 

The Exchange believes that the 

proposed introduction of the ROBX and 

ROBY routing strategies will provide 

market participants with greater 

flexibility in routing orders, without 

having to develop their own 

complicated routing strategies. 

Finally, the Exchange proposes to 

clarify in the description of the ROBA 

routing strategy that the BATS Exchange 

referred to is the BATS BZX Exchange. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b)(5) of the Act,3 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 change to introduce the ROBX 

and ROBY routing options will provide 

market participants with greater 

flexibility in routing orders without 

developing complicated order routing 

strategies on their own. In addition, it 

will provide additional clarity and 

specificity to the Exchange’s fee 

schedule regarding routing strategies 

and will further enhance transparency 

with respect to Exchange routing 

offerings. 

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: (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 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 4 and Rule 19b– 

4(f)(6) thereunder.5

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.6 However, Rule 19b– 

4(f)(6) 7 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 so that the proposal may become 

operative upon filing. The Commission 

notes (i) The proposal could provide 

market participants with more options 

to route orders; (ii) it presents no novel 

issues; and (iii) it may provide a benefit 

to market participants. For these 

reasons, the Commission believes it is 

consistent with the protection of 

investors and the public interest to 

waive the 30-day operative delay, and 

hereby grants such waiver.8

At any time within 60 days of the 

filing of such 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–EDGX–2010–19 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–2010–19. 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 


hsrobinson on DSK69SOYB1PROD with NOTICES
78274 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Notices 

9The text of the proposed rule change is available 

on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGX, and at the 

Commission’s Public Reference Room. 

10 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. 

4See Securities Exchange Act Release No. 62886 

(September 10, 2010), 75 FR 56613 (September 16, 

2010) (SR–NYSE–2010–47). 

5Terms not defined herein are defined in NYSE 

Rule 128. 

6Separately, the Exchange has proposed extend 

the effective date of the trading pause pilot under 

NYSE Rule 80C, which requires the Exchange to 

pause trading in an individual security listed on the 

Exchange if the price moves by 10% as compared 

to prices of that security in the preceding fiveminute period during a trading day. See SR–NYSE– 

2010–81. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

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,9 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–EDGX– 

2010–19 and should be submitted on or 

before January 5, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31435 Filed 12–14–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63479; File No. SR–NYSE– 

2010–80] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Amending 

NYSE Rule 128, Which Governs Clearly 

Erroneous Executions, To Extend the 

Effective Date of the Pilot 

December 9, 2010. 

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 December 

7, 2010, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

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 Exchange proposes to amend 

NYSE Rule 128, which governs clearly 

erroneous executions, to extend the 

effective date of the pilot by which 

portions of such Rule operate until the 

earlier of approval by the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) to make such pilot 

permanent or April 11, 2011. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, http:// 

www.sec.gov, and http://www.nyse.com. 

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 those 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

NYSE Rule 128, which governs clearly 

erroneous executions, to extend the 

effective date of the pilot by which 

portions of such Rule operate, until the 

earlier of Commission approval to make 

such pilot permanent or April 11, 2011. 

The pilot is currently scheduled to 

expire on December 10, 2010.4

On September 10, 2010, the 

Commission approved, on a pilot basis, 

market-wide amendments to exchanges’ 

rules for clearly erroneous executions to 

set forth clearer standards and curtail 

discretion with respect to breaking 

erroneous trades. In connection with 

this pilot initiative, the Exchange 

amended NYSE Rule 128(c), (e)(2), (f), 

and (g). The amendments provide for 

uniform treatment of clearly erroneous 

execution reviews (1) in Multi-Stock 

Events 5 involving twenty or more 

securities, and (2) in the event 

transactions occur that result in the 

issuance of an individual security 

trading pause by the primary market 

and subsequent transactions that occur 

before the trading pause is in effect on 

the Exchange.6 The amendments also 

eliminated appeals of certain rulings 

made in conjunction with other 

exchanges with respect to clearly 

erroneous transactions and limited the 

Exchange’s discretion to deviate from 

Numerical Guidelines set forth in the 

Rule in the event of system disruptions 

or malfunctions. 

If the pilot were not extended, the 

prior versions of paragraphs (c), (e)(2), 

(f), and (g) of Rule 128 would be in 

effect, and the NYSE would have 

different rules than other exchanges and 

greater discretion in connection with 

breaking clearly erroneous transactions. 

The Exchange proposes to extend the 

pilot amendments to NYSE Rule 128 

until the earlier of permanent approval 

by the Commission or April 11, 2011 in 

order to maintain uniform rules across 

markets and allow the pilot to continue 

to operate without interruption during 

the same period that the Rule 80C 

trading pause rule pilot is also in effect. 

Extension of the pilot would permit the 

Exchange, other national securities 

exchanges and the Commission to 

further assess the effect of the pilot on 

the marketplace, including whether 

additional measures should be added, 

whether the parameters of the rule 

should be modified or whether other 

initiatives should be adopted in lieu of 

the current pilot. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 7 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 8 in particular in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 


hsrobinson on DSK69SOYB1PROD with NOTICES