79432 Federal Register / Vol. 75, No. 243 / Monday, December 20, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3Capitalized terms not otherwise defined herein 

shall have the meanings prescribed within the BOX 

Rules. 

4Capitalized terms not otherwise defined herein 

shall have the meanings prescribed within the BOX 

Rules. 

5See Securities Exchange Act Release No. 63539 

(December 3, 2010) (SR–BX–2010–079). 

6See Securities Exchange Act Release No. 53357 

(February 23, 2006), 71 FR 10730 (March 2, 2006) 

(SR–BSE–2005–52). Shortly after the posting of the 

proposed new Pilot Program and BX–2010–079 on 

the Commission’s Web site, the Exchange plans to 

withdraw BSE–2005–52. 

7See Securities Exchange Act Release Nos. 34– 

53516 (March 20, 2006), 71 FR 15232 (March 27, 

2006) (SR–BSE–2006–14); 54082 (June 30, 2006), 71 

FR 38913 (July 10, 2006) (SR–BSE–2006–29); 54469 

(September 19, 2006), 71 FR 56201 (September 26, 

2006) (SR–BSE–2006–38); 55139 (January 19, 2007), 

72 FR 3448 (January 25, 2007) (SR–BSE–2007–01); 

56014 (July 5, 2007), 72 FR 38104 (July 12, 2007) 

(SR–BSE–2007–31); 57195 (January 24, 2008), 73 FR 

5610 (January 30, 2008) (SR–BSE–2008–04); 59311 

(January 28, 2009), 74 FR 6071 (February 4, 2009) 

(SR–BX–2009–007); 59983 (May 27, 2009), 74 FR 

26445 (June 2, 2009) (SR–BX–2009–027); 61065 

(November 25, 2009), 74 FR 62860 (December 1, 

2009) (SR–BX–2009–076); 61577 (February 24, 

2010), 75 FR 9464 (March 2, 2010) (SR–BX–2010– 

017); and 61929 (April 16, 2010), 75 FR 21085 

(April 22, 2010) (SR–BX–2010–031). 

8See Securities Exchange Act Release Nos. 62366 

(June 23, 2010), 75 FR 37863 (June 30, 2010) (SR– 

BX–2010–041). 

9See BSE–2006–14. 

10See Securities Exchange Act Release No. 61929 

(April 16, 2010), 75 FR 21085 (April 22, 2010) (SR– 

BX–2010–031). 

11See Securities Exchange Act Release No. 63539 

(December 3, 2010) (SR–BX–2010–079). 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14See supra note 10. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63540; File No. SR–BX– 

2010–080] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Continue 

the Practice Governing the Exchange’s 

Directed Order Process on BOX and 

Maintain the Effective Date Until 

December 31, 2010 

December 14, 2010. 

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 

13, 2010, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) 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 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to continue 

the practice governing the Exchange’s 

Directed Order 3 process (‘‘Pilot 

Program’’) on the Boston Options 

Exchange (‘‘BOX’’) and maintain the 

effective date until December 31, 2010. 

The text of the proposed rule change is 

available on the Exchange’s Web site at 

http://nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/, on the 

Commission’s Web site at http:// 

www.sec.gov, at 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 

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 Exchange proposes to continue 

the practice governing the Exchange’s 

Directed Order 4 process (‘‘Pilot 

Program’’) on the Boston Options 

Exchange (‘‘BOX’’) and maintain the 

effective date until December 31, 2010. 

On December 3, 2010 the Exchange 

proposed an amendment to the BOX 

Rules governing the Directed Order 

process on BOX to permit Executing 

Participants (‘‘EPs’’) to only receive 

Directed Orders through the Trading 

Host from Order Flow Providers 

(‘‘OFPs’’) whom the EP has designated.5

Shortly thereafter, the original 

corresponding proposal (‘‘BSE–2005– 

52’’) will be withdrawn.6 Upon the 

withdrawal of BSE–2005–52, the 

original Pilot Program (‘‘BSE–2006–14’’), 

which clarified that Directed Orders on 

BOX are not anonymous and has been 

operating successfully for over four-anda-half years,7 will automatically expire.8

BSE–2006–14 has been in effect since 

March 14, 2006 as the Securities and 

Exchange Commission (‘‘Commission’’) 

solicited comments and considered its 

effect on price improvement.9 So as to 

allow BOX’s current Directed Order rule 

and process to continue on an 

uninterrupted basis, this new proposed 

Pilot Program is designed to function in 

exactly the same manner as under BSE– 

2006–14.10 The Exchange believes that 

the proposal does not raise any 

additional or substantive issues from 

those raised when the Exchange sought 

to implement BSE–2006–14. 

Additionally, the expiration date will 

remain December 31, 2010. 

This pilot period will afford the 

Commission the necessary time to 

consider the Exchange’s corresponding 

proposal to amend the BOX Rules to 

permit EPs to only receive Directed 

Orders through the Trading Host from 

OFPs whom the EP has designated.11 In 

the event the Commission reaches a 

decision with respect to the 

corresponding Exchange proposal to 

amend the BOX Rules before December 

31, 2010, the proposed Pilot Program 

governing the Directed Order process on 

BOX will cease to be effective at the 

time of that decision. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Act,12 in general, and Section 6(b)(5) of 

the Act,13 in particular, in that it is 

designed 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 for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, in order to 

continue the Directed Order process on 

an uninterrupted basis, the proposal is 

designed to function in exactly the same 

manner as BOX’s current Directed Order 

process under BSE–2006–14, clarifying 

that Directed Orders on BOX are not 

anonymous.14 This proposed rule filing 

seeks to maintain the rule’s 

effectiveness until December 31, 2010. 

This pilot period will afford the 

Commission the necessary time to 

consider the Exchange’s corresponding 

proposal to amend the BOX Rules to 

permit EPs to only receive Directed 

Orders through the Trading Host from 

OFPs whom the EP has designated. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 243 / Monday, December 20, 2010 / Notices 79433 

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

16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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 met this requirement. 

17 17 CFR 240.19b–4(f)(6). 

18 17 CFR 240.19b–4(f)(6)(iii). 

19 Id. 

20For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received 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: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) 15 of the Act and 

Rule 19b–4(f)(6) thereunder.16

A proposed rule change filed under 

Rule 19b–4(f)(6) 17 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 18 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay, as 

specified in Rule 19b–4(f)(6)(iii),19

which would make the rule change 

effective and operative upon filing. 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 continue the pilot for Directed 

Orders that has operated under BSE– 

2006–14. The Pilot Program is designed 

to function in exactly the same manner 

as under BSE–2006–14. A waiver would 

therefore continue to conform the BOX 

rules to BOX’s current practice without 

interruption and clarify that Directed 

Orders on BOX are not anonymous.20

Accordingly, the Commission 

designates the proposed rule change 

operative upon filing with the 

Commission. 

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–BX–2010–080 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–2010–080. 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 

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 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 

publicly available. All submissions 

should refer to File Number SR–BX– 

2010–080 and should be submitted on 

or before January 10, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–31827 Filed 12–17–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63534; File No. SR–ISE– 

2010–114] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

December 13, 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 International Securities 

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

‘‘ISE’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, and on December 13, 2010, 

filed Amendment No. 1 to 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 the Substance 

of the Proposed Rule Change 

The ISE is proposing to amend its 

transaction fees and rebates for adding 

and removing liquidity. 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, and at the Commission’s 

Public Reference Room. 


jlentini on DSKJ8SOYB1PROD with NOTICES