Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 78781 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010). 

4The term ‘‘Listing Markets’’ refers collectively to 

NYSE, NYSE Amex, NYSE Arca, and NASDAQ. 

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–CBOE–2010–110 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–CBOE–2010–110. 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 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 No. SR–CBOE– 

2010–110 and should be submitted on 

or before January 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–31625 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63527; File No. SR– 

BX–2010–088] 

Self-Regulatory Organizations; 

NASDAQ OMX BX; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Period of the Trading Pause for 

Individual Stocks Contained in the 

Standard & Poor’s 500 Index, Russell 

1000 Index, and Specified Exchange 

Traded Products That Experience a 

Price Change of 10% or More During a 

Five-Minute Period 

December 10, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

7, 2010, NASDAQ OMX BX (‘‘BX’’ or 

‘‘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 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 extend the 

pilot period of the trading pause for 

individual stocks contained in the 

Standard & Poor’s 500 Index, Russell 

1000 Index, and specified Exchange 

Traded Products that experience a price 

change of 10% or more during a fiveminute period, so that the pilot will 

now expire on April 11, 2011. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics; proposed deletions are in 

[brackets]. 

* * * * * 

IM–4120–3. Circuit Breaker Securities 

Pilot 

The provisions of paragraph (a)(11) of 

this Rule shall be in effect during a pilot 

set to end on April 11, 2011 [December 

10, 2010]. During the pilot, the term 

‘‘Circuit Breaker Securities’’ shall mean 

the securities included in the S&P 500®

Index, the Russell 1000 Index, as well 

as a pilot list of Exchange Traded 

Products. 

* * * * * 

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 

On June 10, 2010, the Commission 

granted accelerated approval, for a pilot 

period to end December 10, 2010, for a 

proposed rule change submitted by the 

Exchange, together with related rule 

changes of the BATS Exchange, Inc., 

Chicago Board Options Exchange, 

Incorporated, Chicago Stock Exchange, 

Inc., EDGA Exchange, Inc., EDGX 

Exchange, Inc., International Securities 

Exchange LLC, The NASDAQ Stock 

Market LLC, New York Stock Exchange 

LLC, NYSE Amex LLC, NYSE Arca, Inc., 

and National Stock Exchange, Inc. 

(collectively, the ‘‘Exchanges’’), to pause 

trading during periods of extraordinary 

market volatility in S&P 500 stocks.3

The rules require the Listing Markets 4

to issue five-minute trading pauses for 

individual securities for which they are 

the primary Listing Market if the 

transaction price of the security moves 

ten percent or more from a price in the 

preceding five-minute period. The 

Listing Markets are required to notify 

the other Exchanges and market 

participants of the imposition of a 

trading pause by immediately 

disseminating a special indicator over 

the consolidated tape. Under the rules, 

once the Listing Market issues a trading 

pause, the other Exchanges are required 

to pause trading in the security on their 

markets. On September 10, 2010, the 

Commission approved the respective 

rule filings of the Exchanges to expand 

application of the pilot to the Russell 


srobinson on DSKHWCL6B1PROD with NOTICES
78782 Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 

5Securities Exchange Act Release No. 62884 

(September 10, 2010), 75 FR 56618 (September 16, 

2010). 

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. 

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). 

1000® Index and specified Exchange 

Traded Products.5

The Exchange believes that the pilot 

program has been successful in reducing 

the negative impacts of sudden, 

unanticipated price movements in the 

securities covered by the pilot. The 

Exchange also believes that an 

additional four month extension of the 

pilot is warranted so that it may 

continue to assess whether additional 

securities need to be added and whether 

the parameters of the rule need to be 

modified to accommodate trading 

characteristics of different securities. 

Accordingly, the Exchange is filing to 

seek a four-month extension of the 

existing pilot. 

2. Statutory Basis 

The statutory basis for the proposed 

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

Securities Exchange Act of 1934 (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 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 will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

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 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 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–2010–088 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–2010–088. 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– 

2010–088 and should be submitted on 

or before January 6, 2011. 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 241 / Thursday, December 16, 2010 / Notices 78783 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission notes that the Exhibit is 

attached to the filing itself, not to this notice. 

4See Securities Exchange Act Release No. 62252 

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

(June 16, 2010). 

5See Securities Exchange Act Release No. 62884 

(September 10, 2010) (SR–EDGA–2010–05), 75 FR 

56618 (September 16, 2010). 

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

7 15 U.S.C. 78k–1(a)(1). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–31563 Filed 12–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63514; File No. SR–EDGA– 

2010–23] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGA Rule 

11.14 To Extend the Operation of a 

Pilot Pursuant to the Rule Until April 

11, 2011 

December 9, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on December 

8, 2010, the EDGA Exchange, Inc. 

(‘‘EDGA’’ or ‘‘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 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 

EDGA Rule 11.14 to extend the 

operation of a pilot pursuant to the Rule 

until April 11, 2011. The text of the 

proposed rule change is attached as 

Exhibit 5 3 and is available on the 

Exchange’s Web site at http:// 

www.directedge.com, at the Exchange’s 

principal office, at the Public Reference 

Room of the Commission, 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 

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 

EDGA 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 

April 11, 2011. 

Background 

Pursuant to Rule 11.14, the Exchange 

is allowed to pause trading in any 

Circuit Break Securities when the 

primary listing market for such stock 

issues a trading pause in any Circuit 

Breaker Securities. 

EDGA Rule 11.14 was approved by 

the Commission on June 10, 2010 on a 

pilot basis to end on December 10, 

2010.4 As the Exchange noted in its 

filing to adopt EDGA 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 

EDGA 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 in a six-month 

period, 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 April 11, 

2011. 

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 

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 


srobinson on DSKHWCL6B1PROD with NOTICES