Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 81691 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63163 

(October 22, 2010), 75 FR 66408 (October 28, 2010) 

(SR–EDGX–2010–14). 

4A User is defined in Exchange Rule 1.5(cc) as 

‘‘any Member or Sponsored Participant who is 

authorized to obtain access to the System pursuant 

to Rule 11.3’’. 

5Rule 11.5(c)(10) defines a Destination-on-Open 

order, in part, as ‘‘a market or limit order that 

instructs the System to route the order to a specified 

away trading center to participate in said trading 

center’s opening process, without being processed 

by the System as described below in Rule 

11.9(b)(1).’’ 

6The Exchange notes that when orders are routed 

to an away trading center, such away trading 

centers’ collar rules apply, when applicable, 

regardless of the Exchange’s proposed exclusion for 

Destination-on-Open orders. 

7See, e.g., Nasdaq Rule 4751(f)(13) which 

excludes market on open orders from the definition 

of ‘‘collared orders.’’ See also Securities Exchange 

Act Release No. 60371 (July 23, 2009), 74 FR 38075 

(July 30, 2009) (SR–Nasdaq–2009–070). 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2010–183. 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–Phlx– 

2010–183 and should be submitted on 

or before January 18, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32623 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63589; File No. SR–EDGX– 

2010–24] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Amend EDGX Rule 

11.5 

December 21, 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 

13, 2010, 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 the Substance 

of the Proposed Rule Change 

EDGX proposes to amend EDGX Rule 

11.5(a)(2) to provide that the system 

functionality that cancels any portion of 

a market order submitted to the 

Exchange that would execute at a price 

that is more than $0.50 or 5 percent 

worse than last sale at the time the order 

initially reaches the Exchange, 

whichever is greater, does not apply to 

Destination-on-Open orders, as defined 

in Rule 11.5(c)(10). The text of the 

proposed rule change is available on the 

Exchange’s Internet Web site at http:// 

www.directedge.com, 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 

As provided in SR–EDGX–2010–14,3

Exchange Rule 11.5(a)(2) protects 

market participants from executions at 

prices that are significantly worse than 

the last sale at the time of order entry 

by providing Exchange system 

functionality that cancels any portion of 

a market order (as defined in Rule 

11.5(a)(2)) that would execute at a price 

that is 50 cents or 5 percentage points 

worse than the consolidated last sale, 

whichever is greater. Any portion of a 

market order that would otherwise 

execute outside of these thresholds is 

immediately cancelled back to the 

User.4

The Exchange proposes to modify 

Rule 11.5(a)(2) to provide that 

Destination-on-Open orders, as defined 

in Rule 11.5(c)(10),5 are not subject to 

these market collars.6 The rationale for 

this exception is twofold. First, using a 

reference price calculation for market 

collar thresholds at the open of trading 

is problematic because of the potential 

lack of trading activity just prior to the 

open and the resulting price dislocation. 

Therefore, the reference price for a 

market collar on a Destination-on-Open 

order could be out of line with the 

market at the open of the regular trading 

session. In addition, other Exchanges 

also address this issue similarly by 

excluding market on open orders as 

well.7

2. Statutory Basis 

The statutory basis for the proposed 

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


emcdonald on DSK2BSOYB1PROD with NOTICES
81692 Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Notices 

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

9 15 U.S.C. 78s(b)(3)(A). 

10 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. 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13 Id. 

14For 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). 

15See supra note 7. 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Act,8 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 Exchange believes 

that excluding Destination-on-Open 

orders from the application of market 

collars is appropriate in order to avoid 

the potential dislocation between the 

reference price for a market collar on a 

Destination-on-Open order and the 

market at the open of the regular trading 

session. Accordingly, the modifications 

to Exchange Rule 11.5 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 Exchange will issue an 

information circular to all Members 

prior to implementation, which will be 

on or about December 14, 2010. 

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 Regarding 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: (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) 9 of the Act and Rule 

19b–4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) 11 normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 12 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),13

which would make the proposed 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.14 The 

Commission notes that the proposal is 

based on the rules of another SRO that 

similarly excludes market on open 

orders from its market collar 

functionality.15 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–EDGX–2010–24 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–2010–24. 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 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–EDGX–2010–24 and should 

be submitted on or before January 18, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–32613 Filed 12–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63581; File No. SR– 

NYSEArca–2010–117] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to Listing and 

Trading Shares of the Grail Western 

Asset Ultra Short Duration ETF Under 

NYSE Arca Equities Rule 8.600 

December 20, 2010. 

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

Securities Exchange Act of 1934 

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


emcdonald on DSK2BSOYB1PROD with NOTICES