46814 Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 60395 

(July 28, 2008), 74 FR 38678 (‘‘Notice’’). 

4 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

6According to CHX, rapidly changing quotes in 

today’s market environment often make it difficult 

to successfully post a bid or offer. See Notice, supra 

note 3, at 38678. 

7 Id. at 38678 n.3. 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60620; File No. SR–CHX– 

2009–10] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Order 

Approving Proposed Rule Change To 

Add the Quote@CHX and 

Reprice@CHX Order Types to the 

Brokerplex System 

September 3, 2009. 

On July 23, 2009, Chicago Stock 

Exchange, Inc. (‘‘CHX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

adopt the Quote@CHX and 

Reprice@CHX order types for the 

Brokerplex order entry system. The 

proposed rule change was published for 

comment in the Federal Register on 

August 4, 2009.3 The Commission 

received no comments regarding the 

proposal. This order approves the 

proposed rule change. 

The Quote@CHX order type is 

designed to provide CHX Institutional 

Brokers with an additional method to 

enter displayable orders into the CHX 

Matching System. A Quote@CHX order 

will be priced within Brokerplex at a 

defined limit price, which is one 

minimum price increment from the 

relevant side of the National Best Bid 

and Offer (‘‘NBBO’’) at the time of order 

submission, before it is entered into the 

CHX Matching System as a limit order. 

The Reprice@CHX order type will 

enable an Institutional Broker to cancel 

an existing limit order residing in the 

CHX Matching System and replace it 

with an order generated in the same 

manner as a Quote@CHX order. 

The Quote@CHX and Reprice@CHX 

functionality will only be available to 

Institutional Brokers entering orders 

into the Brokerplex system for 

submission to the CHX Matching 

System for display and execution. The 

CHX Matching System itself will not be 

eligible to receive these order types, but 

instead Brokerplex would convert the 

Quote@CHX and Reprice@CHX order 

types into limit orders for submission to 

the CHX Matching System. In addition, 

the use of Quote@CHX and 

Reprice@CHX will be optional, and 

entries for both order types will be 

rejected if the systematically generated 

price would be outside the customer’s 

specified limit price. The Exchange’s 

standard validations for locked and 

crossed markets will apply. 

The Commission has carefully 

reviewed the proposed rule change and 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange 4 and, in particular, 

Section 6(b)(5) of the Act,5 which 

requires that an exchange have rules 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

to remove impediments to and perfect 

the mechanism of a free and open 

market and a national market system, 

and to protect investors and the public 

interest. 

These Brokerplex order types are 

designed to help Institutional Brokers 

submit limit orders that they wish to 

display on the CHX Matching System, 

rather than execute against displayed 

bids or offers.6 Institutional Brokers 

currently manually enter orders into the 

CHX Matching System through 

Brokerplex.7 Under the proposed rule 

change, an Institutional Broker using the 

Quote@CHX or Reprice@CHX order 

types would have such orders 

automatically priced and entered into 

the CHX Matching System by 

Brokerplex. 

The Commission believes that the 

Quote@CHX and Reprice@CHX order 

types provide an additional method for 

Institutional Brokers to submit customer 

orders to the CHX Matching System for 

display, and to seek price improvement 

for those orders. Therefore, the 

Commission believes that the proposal 

is consistent with the Act. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act, that the 

proposed rule change (SR–CHX–2009– 

10) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21882 Filed 9–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60613; File No. SR–FINRA– 

2009–055] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing of 

Proposed Rule Change To Adopt 

FINRA Rules 5210 (Publication of 

Transactions and Quotations) and 

5220 (Offers at Stated Prices) Into the 

Consolidated Rulebook 

September 2, 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 August 

18, 2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. 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 

FINRA is proposing to adopt NASD 

Rule 3310 (Publication of Transactions 

and Quotations), NASD Rule 3320 

(Offers at Stated Prices), IM–3310 

(Manipulative and Deceptive 

Quotations) and IM–3320 (firmness of 

Quotations) as FINRA rules in the 

consolidated FINRA rulebook without 

material changes. The proposed rule 

change would combine NASD Rule 

3310 and IM–3310 into FINRA Rule 

5210 and would combine NASD Rule 

3320 and IM–3320 into FINRA Rule 

5220 in the consolidated FINRA 

rulebook. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA, 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, 

FINRA 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 


cprice-sewell on DSKGBLS3C1PROD with NOTICES