50786 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 62252 

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

(June 16, 2010). 

5See Securities Exchange Act Release No. 63507 

(December 9, 2010) (SR–EDGX–2010–22), 75 FR 

78787 (December 16, 2010). 

6See Securities Exchange Act Release No. 64205 

(April 6, 2011) (SR–EDGX–2011–10), 76 FR 20417 

(April 12, 2011). 

7See Securities Exchange Act Release No. 62884 

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

56618 (September 16, 2010). 

8See Securities Exchange Act Release No. 64375 

(June 23, 2011) (SR–EDGX–2011–14), 76 FR 38243 

(June 29, 2011). 

All submissions should refer to File No. 

SR–CHX–2011–23. 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–CHX–2011– 

23 and should be submitted on or before 

September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20732 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65092; File No. SR–EDGX– 

2011–23] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGX Rule 

11.14 To Extend the Operation of the 

Single Stock Circuit Breaker Pilot 

Program Until January 31, 2012 

August 10, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

5, 2011, the EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

EDGX Rule 11.14 to extend the 

operation of the single stock circuit 

breaker pilot program (the ‘‘Pilot’’) 

pursuant to the Rule until January 31, 

2012. The text of the proposed rule 

change is available on the Exchange’s 

Web site at http://www.directedge.com, 

at the Exchange’s principal office, and at 

the Public Reference Room of the 

Commission. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

EDGX Rule 11.14 to extend the 

operation of a Pilot that allows the 

Exchange to provide for uniform 

market-wide trading pause standards for 

NMS stocks through January 31, 2012. 

Background 

Pursuant to Rule 11.14, the Exchange 

is allowed to pause trading in any NMS 

stock when the primary listing market 

for such stock issues a trading pause in 

such NMS stock. The Exchange will 

pause trading in such security until 

trading has resumed on the primary 

listing market. 

EDGX Rule 11.14 was approved by 

the Commission on June 10, 2010 on a 

Pilot basis to end on December 10, 

2010.4 The Pilot was subsequently 

extended until April 11, 2011.5 The 

Pilot was then further extended through 

the earlier of August 11, 2011 or the 

date on which a limit up/limit down 

mechanism to address extraordinary 

market volatility, if adopted, applies.6

In its initial filing to adopt EDGX Rule 

11.14, the Exchange stated that the 

original Pilot list of securities was all 

securities included in the S&P 500®

Index (‘‘S&P 500’’). The Exchange also 

noted in that filing that it would 

continue to assess whether additional 

securities needed to be added or 

removed from the Pilot list and whether 

the parameters of the rule needed to be 

modified to accommodate trading 

characteristics of different securities. As 

noted in comment letters to the initial 

filing to adopt EDGX 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 2010.7 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 would 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 a result of consulting with other 

markets and the staff of the 

Commission, the Exchange 

subsequently included all NMS stocks 

within the Pilot that were not already 

included therein.8 In particular, the 

additional stocks were those not 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50787 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78k–1(a)(1). 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(6). 

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

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 satisfied this requirement. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

included in the S&P 500, Russell 1000 

Index, or specified ETPs, and therefore 

were more likely to be less liquid 

securities or securities with lower 

trading volumes. The Exchange stated 

that it would continue to assess whether 

the parameters for invoking a trading 

pause continued to be appropriate and 

whether the parameters should be 

modified. 

The Exchange believes that an 

extension of the Pilot through January 

31, 2012 would continue to promote 

uniformity regarding decisions to pause 

trading and continue to reduce the 

negative impacts of sudden, 

unanticipated price movements in NMS 

stocks. The Exchange believes that the 

Pilot is working well, that it has been 

infrequently invoked during the past 

four months, and that the Exchange will 

further assess the effect of the Pilot on 

the market or whether other initiatives 

should be adopted in lieu of the current 

Pilot. Therefore, the Exchange requests 

an extension of the Pilot through 

January 31, 2012. 

2. Statutory Basis 

The statutory basis for the proposed 

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

Act,9 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) 10 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. The Exchange 

believes that the Pilot is working well, 

that it has been infrequently invoked 

during the past four months, and that 

the extension of the Pilot will allow the 

Exchange to further assess the effect of 

the Pilot on the market or whether other 

initiatives should be adopted in lieu of 

the current Pilot. 

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 on 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 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and Rule 

19b–4(f)(6) thereunder.12 Because the 

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 

prior to 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, the 

proposed rule change has become 

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

of the Act 13 and Rule 19b–4(f)(6)(iii) 

thereunder.14

A proposed rule change filed under 

Rule 19b–4(f)(6) 15 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii) 16 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. 

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. For this reason, the 

Commission designates the proposed 

rule change to be operative upon 

filing.17

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 

No. SR–EDGX–2011–23 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 No. 

SR–EDGX–2011–23. 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 


emcdonald on DSK2BSOYB1PROD with NOTICES
50788 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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. 63514 

(December 9, 2010) (SR–EDGA–2010–23), 75 FR 

78783 (December 16, 2010). 

6See Securities Exchange Act Release No. 64204 

(April 6, 2011) (SR–EDGA–2011–11), 76 FR 20394 

(April 12, 2011). 

7See Securities Exchange Act Release No. 62884 

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

56618 (September 16, 2010). 

8See Securities Exchange Act Release No. 64375 

(June 23, 2011) (SR–EDGA–2011–15), 76 FR 38243 

(June 29, 2011). 

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–EDGX– 

2011–23 and should be submitted on or 

before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20726 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65091; File No. SR–EDGA– 

2011–24] 

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 the 

Single Stock Circuit Breaker Pilot 

Program Until January 31, 2012 

August 10, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on August 

5, 2011, the EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

EDGA Rule 11.14 to extend the 

operation of the single stock circuit 

breaker pilot program (the ‘‘Pilot’’) 

pursuant to the Rule until January 31, 

2012. The text of the proposed rule 

change is available on the Exchange’s 

Web site at http://www.directedge.com, 

at the Exchange’s principal office, and at 

the Public Reference Room of the 

Commission. 

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 the 

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 

NMS stocks through January 31, 2012. 

Background 

Pursuant to Rule 11.14, the Exchange 

is allowed to pause trading in any NMS 

stock when the primary listing market 

for such stock issues a trading pause in 

such NMS stock. The Exchange will 

pause trading in such security until 

trading has resumed on the primary 

listing market. 

EDGA Rule 11.14 was approved by 

the Commission on June 10, 2010 on a 

Pilot basis to end on December 10, 

2010.4 The Pilot was subsequently 

extended until April 11, 2011.5 The 

Pilot was then further extended through 

the earlier of August 11, 2011 or the 

date on which a limit up/limit down 

mechanism to address extraordinary 

market volatility, if adopted, applies.6

In its initial filing to adopt EDGA Rule 

11.14, the Exchange stated that the 

original Pilot list of securities was all 

securities included in the S&P 500®

Index (‘‘S&P 500’’). The Exchange also 

noted in that filing that it would 

continue to assess whether additional 

securities needed to be added or 

removed from the Pilot list and whether 

the parameters of the rule needed to be 

modified to accommodate trading 

characteristics of different securities. As 

noted in comment letters to the initial 

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 2010.7 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 would 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 a result of consulting with other 

markets and the staff of the 

Commission, the Exchange 

subsequently included all NMS stocks 

within the Pilot that were not already 

included therein.8 In particular, the 

additional stocks were those not 

included in the S&P 500, Russell 1000 

Index, or specified ETPs, and therefore 

were more likely to be less liquid 

securities or securities with lower 

trading volumes. The Exchange stated 

that it would continue to assess whether 

the parameters for invoking a trading 

pause continued to be appropriate and 

whether the parameters should be 

modified. 

The Exchange believes that an 

extension of the Pilot through January 

31, 2012 would continue to promote 

uniformity regarding decisions to pause 

trading and continue to reduce the 

negative impacts of sudden, 

unanticipated price movements in NMS 

stocks. The Exchange believes that the 

Pilot is working well, that it has been 

infrequently invoked during the past 

four months, and that the Exchange will 

further assess the effect of the Pilot on 

the market or whether other initiatives 

should be adopted in lieu of the current 

Pilot. Therefore, the Exchange requests 

an extension of the Pilot through 

January 31, 2012. 


emcdonald on DSK2BSOYB1PROD with NOTICES