38678 Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Notices 

4 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 It is important to keep in mind that Institutional 

Brokers manually enter orders into the Matching 

System through Brokerplex and those orders are 

often competing for priority with system-generated 

orders of algorithmic order senders. 

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 inspection and copying in 

the Commission’s Public Reference 

Section, 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 filings also will be 

available for inspection and copying at 

DTC’s principal office and DTC’s Web 

site at (http://www.dtc.org/impNtc/mor/ 

index.html). 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–DTC–2009– 

13 and should be submitted on or before 

August 25, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.4

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18558 Filed 8–3–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60395; File No. SR–CHX– 

2009–10] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing of a Proposed Rule Change 

To Add the Quote@CHX and 

Reprice@CHX Order Types to 

Brokerplex System 

July 28, 2009. 

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 July 23, 

2009, Chicago Stock Exchange, Inc. 

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

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by CHX. 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 CHX proposes to amend its rules 

to allow Exchange-registered 

Institutional Brokers to enter two new 

order types, known as Quote@CHX and 

Reprice@CHX, when using the 

Brokerplex® order entry system. The 

text of this proposed rule change is 

available on the Exchange’s Web site at 

(http://www.chx.com) and in 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 add 

Interpretations and Policies .04 to the 

Article 17 obligations of CHX-registered 

Institutional Brokers to permit the entry 

of two new order types within 

Brokerplex for Institutional Brokers to 

use when submitting orders to the CHX 

Matching System for display and 

potential execution. The new order 

types are known as ‘‘Quote@CHX’’ and 

‘‘Reprice@CHX.’’ 

The Brokerplex system is an order 

entry and management system 

developed and operated by the 

Exchange for use on a non-exclusive 

basis by CHX-registered Institutional 

Brokers to receive and hold orders from 

their clients while seeking execution on 

the CHX or elsewhere in the National 

Market System. The Exchange seeks to 

add two new order types within 

Brokerplex for Institutional Brokers to 

use when submitting orders to the CHX 

Matching System for display and 

potential execution. 

In many instances, Institutional 

Brokers would like to display orders in 

the CHX Matching System when seeking 

trade execution rather than simply 

hitting bids or lifting offers already 

displayed in the marketplace. By doing 

so, they could achieve a level of price 

improvement for their customers. 

Rapidly changing quotes in today’s 

market environment often make it 

difficult to successfully post a bid or 

offer, however, since a standard limit 

order entered by the Institutional Broker 

may lock or cross the National Best Bid 

or Offer (‘‘NBBO’’) by the time that 

order entry is complete (by our rules, 

the Matching System automatically 

rejects orders in such circumstances).3

The new Quote@CHX order type 

would allow the Institutional Broker to 

submit an order to be priced within 

Brokerplex at a defined limit price 

which is one minimum price increment 

(normally 1 cent for most securities) 

from the relevant side of the National 

Best Bid or Offer (‘‘NBBO’’) at the time 

of order submission. For buy orders, the 

relevant side of the NBBO is the offer; 

for sell orders it is the bid. The pricing 

of the Quote@CHX (and Reprice@CHX) 

order is done solely within Brokerplex 

and the order is then sent as a limit 

order by Brokerplex to the Matching 

System. For example, if the Institutional 

Broker has set the incremental offset at 

1 cent and the NBBO was 20.10 x 20.13, 

a Quote@CHX buy order would be 

automatically priced and submitted by 

Brokerplex to the Matching System as a 

20.12 limit order. The systematic 

pricing of the Quote@CHX (and 

Reprice@CHX) orders is non-dynamic, 

i.e., the order does not automatically 

reprice upon changes to the NBBO once 

it has been accepted by the Matching 

System. 

The Reprice@CHX order type allows 

an Institutional Broker to change an 

existing limit order residing in the 

Matching System and replace it with an 

order generated in the same manner as 

a Quote@CHX order type. Submission of 

a Reprice@CHX order would generate an 

instruction to (1) cancel a limit order 

previously submitted by an Institutional 

Broker to the Matching System and (2) 

generate a new order to either buy or 

sell (priced by Brokerplex in the same 

manner as for Quote@CHX orders as 

described above) and send it to the 

Matching System as a limit order. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Notices 38679 

4A ‘‘not held’’ order is one in which the 

Institutional Broker has been given price and time 

discretion by its customer. See Article 1, Rule 2(w). 

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

6 15 U.S.C. 78f(b)(5). 7 17 CFR 200.30–3(a)(12). 

Generally, usage of an agency 

Quote@CHX or Reprice@CHX order by 

an Institutional Broker should be 

confined to situations in which it is 

handling a non-marketable or ‘‘not 

held’’ limit order on behalf of a 

customer.4 There may be limited 

circumstances in which it could be 

appropriate for an Institutional Broker 

handling a market order to submit a 

Quote@CHX (but not a Reprice@CHX) 

order. Institutional Brokers handling a 

customer limit order would be required 

to enter the limit price into Brokerplex 

when submitting a Quote@CHX or 

Reprice@CHX order. In pricing the 

Quote@CHX and Reprice@CHX orders, 

Brokerplex will reject any entries if the 

systematically-generated price would be 

outside the customer’s specified limit 

price. 

Our standard Matching System 

validations for locked and crossed 

markets would apply equally to these 

orders upon receipt. Neither the 

Quote@CHX nor Reprice@CHX order 

type would be available for Institutional 

Brokers submitting orders to 

destinations other than the CHX 

Matching System. The Matching System 

itself will not be eligible to receive these 

order types. As the owner and operator 

of the Brokerplex system, the Exchange 

would collect and maintain all of the 

order records relating to these two order 

types required by our rules, although 

the responsibility for the accurate entry 

of transaction-related information lies 

with the Brokerplex user. 

Our belief is that these two order 

types will permit Institutional Brokers 

to enter displayable orders in a more 

efficient manner and avoid the delays 

associated with reentering a rejected 

order at a new price. This functionality 

is optional, so an Institutional Broker 

which does not want its order priced by 

Brokerplex can simply enter a 

traditional limit order. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(5) 

in particular,6 in that it is designed to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transaction in securities, to 

remove impediments and perfect the 

mechanisms of a free and open market, 

and, in general, to protect investors and 

the public interest. In this case, 

providing Institutional Brokers with the 

ability to enter display-eligible orders 

on a more efficient basis protects 

investors and removes an impediment 

to a free and open market in that it 

improves the ability of Institutional 

Brokers to seek the best execution of the 

orders which they are handling. 

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 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 

No written comments were solicited 

or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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–CHX–2009–10 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CHX–2009–10. 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 inspection and copying 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 CHX. 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–CHX–2009–10 and should 

be submitted on or before August 25, 

2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18563 Filed 8–3–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Highway Administration 

Buy America Waiver Notification 

AGENCY: Federal Highway 

Administration (FHWA), DOT. 

ACTION: Notice. 

SUMMARY: This notice provides 

information regarding the FHWA’s 

finding that Buy America waivers are 

not appropriate for the use of foreign 

hollow structural section (hollow 

structural section round A500, Grade C, 

10.75 x 0.625 steel pipe) and one-inch 

diameter stainless steel anchor bolts (1 

inch diameter stainless steel, F 593, 

mstockstill on DSKH9S0YB1PROD with NOTICES