49824 Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 

12 Id. 

13 15 U.S.C. 78s(b)(3)(A). 

14For 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). See also 17 CFR 200.30–3(a)(59). 15 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. 63027 

(October 1, 2010), 75 FR 62160 (October 7, 2010) 

Under Rule 19b–4(f)(6) of the Act,12 a 

proposal does not become operative for 

30 days after the date of its filing, or 

such shorter time as the Commission 

may designate if consistent with the 

protection of investors and the public 

interest. The Exchange requests that the 

Commission waive the 30 day operative 

period for this filing so that it may 

become effective and operative upon 

filing with the Commission pursuant to 

Section 19(b)(3)(A) 13 of the Act and 

subparagraph (f)(6) thereunder. The 

Exchange believes waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest as the waiver will allow the 

Exchange to apply NASDAQ Rule 

1032(c) to all NASDAQ members, not 

just NOM participants, near the same 

time as other exchanges have 

established proprietary trading 

registration and qualification 

requirements. For the reasons stated 

above, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest and 

designates the proposal as operative 

upon filing.14

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. 

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–NASDAQ–2011–107 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–NASDAQ–2011–107. 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 

NASDAQ. 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– 

NASDAQ–2011–107 and should be 

submitted on or before September 1, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20371 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65043; File No. SR–Phlx2011–104] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Extension of a Pilot Program 

Regarding Price Improvement XL 

August 5, 2011. 

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 August 1, 

2011, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘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 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 

Exchange Rule 1080(n), Price 

Improvement XL (‘‘PIXLSM’’) to extend, 

through July 18, 2012, a pilot program 

(the ‘‘pilot’’) concerning (i) The early 

conclusion of the PIXL Auction (as 

described below), and (ii) permitting 

orders of fewer than 50 contracts into 

the PIXL Auction. The current pilot is 

scheduled to expire August 31, 2011. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of 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 

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 

The purpose of the proposed rule 

change is to extend the pilot through 

July 18, 2012. 

Background 

The Exchange adopted PIXL in 

October, 2010 as a price-improvement 

mechanism on the Exchange.3 PIXL is a 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 49825 

(SR–Phlx–2010–108) (Order Granting Approval to a 

Proposed Rule Change Relating to a Proposed Price 

Improvement System, Price Improvement XL). 

4This proposal refers to ‘‘PHLX XL’’ as the 

Exchange’s automated options trading system. In 

May 2009 the Exchange enhanced the system and 

adopted corresponding rules referring to the system 

as ‘‘Phlx XL II.’’ See Securities Exchange Act 

Release No. 59995 (May 28, 2009), 74 FR 26750 

(June 3, 2009) (SR–Phlx–2009–32). The Exchange 

intends to submit a separate technical proposed 

rule change that would change all references to the 

system from ‘‘Phlx XL II’’ to ‘‘PHLX XL’’ for 

branding purposes. 5See supra note 3. 

6See Exchange Rule 1080(n)(vii). 

7 15 U.S.C. 78f. 

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

9 15 U.S.C. 78f(b)(8). 

component of the Exchange’s fully 

automated options trading system, 

PHLX XL® 4 that allows an Exchange 

member (an ‘‘Initiating Member’’) to 

electronically submit for execution an 

order it represents as agent on behalf of 

a public customer, broker dealer, or any 

other entity (‘‘PIXL Order’’) against 

principal interest or against any other 

order it represents as agent (an 

‘‘Initiating Order’’) provided it submits 

the PIXL Order for electronic execution 

into the PIXL Auction (‘‘Auction’’) 

pursuant to the Rule. 

An Initiating Member may initiate a 

PIXL Auction by submitting a PIXL 

Order in one of three ways: 

• First, the Initiating Member could 

submit a PIXL Order specifying a single 

price at which it seeks to execute the 

PIXL Order (a ‘‘stop price’’). 

• Second, an Initiating Member could 

submit a PIXL Order specifying that it 

is willing to automatically match as 

principal or as agent on behalf of an 

Initiating Order the price and size of all 

trading interest and responses to the 

PIXL Auction Notification (‘‘PAN,’’ as 

described below) (‘‘auto-match’’), in 

which case the PIXL Order will be 

stopped at the National Best Bid/Offer 

(’’ NBBO’’) on the Initiating Order side 

of the market (if 50 contracts or greater) 

or, if less than 50 contracts, the better 

of: (i) The PHLX Best Bid/Offer 

(‘‘PBBO’’) price on the opposite side of 

the market from the PIXL Order 

improved by at least one minimum 

price improvement increment, or (ii) the 

PIXL Order’s limit price (if the order is 

a limit order), provided in either case 

that certain circumstances are met and 

that such price is at least one increment 

better than the limit of an order on the 

book on the same side as the PIXL 

Order. 

• Third, an Initiating Member could 

submit a PIXL Order specifying that it 

is willing to either: (i) Stop the entire 

order at a single stop price and automatch PAN responses, as described 

below, together with trading interest, at 

a price or prices that improve the stop 

price to a specified price above or below 

which the Initiating Member will not 

trade (a ‘‘Not Worse Than’’ or ‘‘NWT’’ 

price); (ii) stop the entire order at a 

single stop price and auto-match all 

PAN responses and trading interest at or 

better than the stop price; or (iii) stop 

the entire order at the NBBO on the 

Initiating Order side (if 50 contracts or 

greater) or the better of: (A) The PBBO 

price on the opposite side of the market 

from the PIXL Order improved by one 

minimum price improvement 

increment, or (B) the PIXL Order’s limit 

price (if the order is a limit order) on the 

Initiating Order side (if for less than 50 

contracts), and auto-match PAN 

responses and trading interest at a price 

or prices that improve the stop price up 

to the NWT price. In all cases, if the 

PBBO on the same side of the market as 

the PIXL Order represents a limit order 

on the book, the stop price must be at 

least one minimum price improvement 

increment better than the booked limit 

order’s limit price. 

After the PIXL Order is entered, a 

PAN is broadcast and a one-second 

blind Auction ensues. Anyone may 

respond to the PAN by sending orders 

or quotes. At the conclusion of the 

Auction, the PIXL Order will be 

allocated at the best price(s). 

Once the Initiating Member has 

submitted a PIXL Order for processing, 

such PIXL Order may not be modified 

or cancelled. Under any of the above 

circumstances, the Initiating Member’s 

stop price or NWT price may be 

improved to the benefit of the PIXL 

Order during the Auction, but may not 

be cancelled[.] 

After a PIXL Order has been 

submitted, a member organization 

submitting the order has no ability to 

control the timing of the execution. The 

execution is carried out by the 

Exchange’s PHLX XL® automated 

options trading system and pricing is 

determined solely by the other orders 

and quotes that are present in the 

Auction. 

The Pilot 

Three components of the PILX system 

were approved by the Commission on a 

pilot basis: (1) Paragraphs (n)(i)(A)(2) 

and (n)(i)(B)(2) of Rule 1080, relating to 

auction eligibility requirements; (2) 

paragraphs (n)(ii)(B)(4) and (n)(ii)(D) of 

Rule 1080, relating to the early 

conclusion of the PIXL Auction; and (3) 

paragraph (n)(vii) of Rule 1080, stating 

that there shall be no minimum size 

requirement of orders entered into PIXL. 

The pilots were approved for a pilot 

period expiring on August 31, 2011.5

The Exchange notes that during the 

pilot period it has been required to 

submit, and has been submitting, certain 

data periodically as required by the 

Commission, to provide supporting 

evidence that, among other things, there 

is meaningful competition for all size 

orders and that there is an active and 

liquid market functioning on the 

Exchange outside of the Auction 

mechanism.6 The Exchange will 

continue to provide such data. The 

Exchange believes that, because the 

pilot has been operating for a relatively 

short amount of time, the proposed 

extension should afford the Commission 

additional time to evaluate the pilot. 

The Exchange proposes to extend the 

pilot through July 18, 2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

in general and with Section 6(b)(5) of 

the Act,8 in that it is designed to 

promote just and equitable principles of 

trade, 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 of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest; and is not designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers, 

or to regulate by virtue of any authority 

conferred by the Act matters not related 

to the purposes of the Act or the 

administration of the Exchange. 

The Exchange believes that the 

proposed rule change is also consistent 

with Section 6(b)(8) of the Act 9 in that 

it does not impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

Specifically, the Exchange believes 

that PIXL, including the rules to which 

the pilot applies, result in increased 

liquidity available at improved prices, 

with competitive final pricing out of the 

Initiating Member’s complete control. 

The Exchange believes that PIXL 

promotes and fosters competition and 

affords the opportunity for price 

improvement to more options contracts. 

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 


srobinson on DSK4SPTVN1PROD with NOTICES
49826 Federal Register / Vol. 76, No. 155 / Thursday, August 11, 2011 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

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 satisfied this 

requirement. 12 17 CFR 200.30–3(a)(12). 

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 either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 10 and Rule 19b–4(f)(6) 11

thereunder. 

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 

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 rule-comments@

sec.gov. Please include File Number SR– 

Phlx–2011–104 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–Phlx–2011–104. 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 website 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 Number SR–Phlx– 

2011–104 and should be submitted on 

or before September 1, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20363 Filed 8–10–11; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 7553] 

Bureau of Educational and Cultural 

Affairs (ECA) Request for Grant 

Proposals: Study of the United States 

Institute on U.S. National Security 

Policymaking 

Announcement Type: New 

Cooperative Agreement. 

Funding Opportunity Number: ECA/ 

A/E/USS–12–01. 

Catalog of Federal Domestic Assistance 

Number: 19.401 

DATES: Key Dates: January to March, 

2012. 

Application Deadline: October 11, 2011. 

Executive Summary: The Branch for the 

Study of the U.S., Office of Academic 

Exchange Programs, Bureau of 

Educational and Cultural Affairs (ECA/ 

A/E/USS), invites proposal submissions 

for the design and implementation of 

the Study of the United States Institute 

on U.S. National Security Policymaking. 

This institute will provide a 

multinational group of up to 18 

experienced foreign university 

educators and other professionals with 

a deeper understanding of U.S. 

approaches to national security 

policymaking, past and present, in order 

to strengthen curricula and to improve 

the quality of teaching about the United 

States at universities and other 

institutions abroad. The institute should 

be an intensive, academically rigorous 

program for scholars and other 

professionals from outside the United 

States, and should have a central theme 

and a strong contemporary component. 

I. Funding Opportunity Description 

Authority 

Overall grant making authority for 

this program is contained in the Mutual 

Educational and Cultural Exchange Act 

of 1961, Public Law 87–256, as 

amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to 

enable the Government of the United 

States to increase mutual understanding 

between the people of the United States 

and the people of other countries * * *; 

to strengthen the ties which unite us 

with other nations by demonstrating the 

educational and cultural interests, 

developments, and achievements of the 

people of the United States and other 

nations * * * and thus to assist in the 

development of friendly, sympathetic 

and peaceful relations between the 

United States and the other countries of 

the world.’’ The funding authority for 

the program above is provided through 

legislation. 

Purpose: Study of the U.S. Institutes 

for scholars are intended to offer up to 

18 foreign scholars and other 

professionals, whose professional work 

focuses in whole or in substantial part 

on the United States, the opportunity to 

deepen their understanding of American 

society, culture, and institutions. The 

ultimate goal is to strengthen curricula, 

to improve the quality of teaching, and 

to broaden understanding of U.S. 

national security policymaking in 

universities and other institutions of 

influence abroad. 

The Bureau is seeking detailed 

proposals for a Study of the United 

States Institute on U.S. National 

Security Policymaking from colleges, 

universities, consortia of colleges and 


srobinson on DSK4SPTVN1PROD with NOTICES