Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices 50519 

5 15 U.S.C. 78s(b)(3)(A). 

6 17 CFR 240.19b–4(f)(2). 7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

broker-dealers and other market 

participants to apply to become CBSX 

Trading Permit Holders, and the 

increased number of Trading Permit 

Holders on CBSX will bring greater 

liquidity to CBSX, which would benefit 

all current CBSX Trading Permit 

Holders. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition 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 with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change is 

designated by the Exchange as 

establishing or changing a due, fee, or 

other charge, thereby qualifying for 

effectiveness on filing pursuant to 

Section 19(b)(3)(A) of the Act 5 and 

subparagraph (f)(2) of Rule 19b–4 6

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. 

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–CBOE–2011–070 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–CBOE–2011–070. 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 Number SR–CBOE– 

2011–070 and should be submitted on 

or before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20691 Filed 8–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65058; File No. SR–Phlx– 

2011–110] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Pilot Period of Amendments to the 

Clearly Erroneous Rule 

August 9, 2011. 

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 5, 

2011, NASDAQ OMX PHLX LLC 

(‘‘Exchange’’), 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 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to extend the 

pilot period of recent amendments to 

Rule 3312, concerning clearly erroneous 

transactions, so that the pilot will now 

expire on January 31, 2012. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

Rule 3312. Clearly Erroneous 

Transactions 

The provisions of paragraphs (a)(2)(C), 

(b), and (c)(1) of this Rule, as amended 

by SR–Phlx–2010–125, shall be in effect 

during a pilot period set to end on 

January 31, 2012[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]. If the pilot is not 

either extended or approved permanent 

by January 31, 2012[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], the prior versions 

of paragraphs (a)(2)(C), (b), and (c)(1) 

shall be in effect. 

(a)–(f) No change. 

* * * * * 

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. 


srobinson on DSK4SPTVN1PROD with NOTICES
50520 Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices 

3Securities Exchange Act Release No. 62886 

(September 10, 2010), 75 FR 56613 (September 16, 

2010). 

4Securities Exchange Act Release No. 63023 

(September 30, 2010), 75 FR 61802 (October 6, 

2010). 

5Securities Exchange Act Release No. 63491; 

(December 9, 2010), 75 FR 78297 (December 15, 

2010). 

6Securities Exchange Act Release No. 64239 

(April 7, 2011), 76 FR 20789 (April 13, 2011) (SR– 

Phlx–2011–45). 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78k–1(a)(1). 

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

10 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission 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 filing of the proposed rule change, or 

such shorter time as designated by the Commission. 

The Commission notes that the Exchange has 

satisfied this requirement. 

11For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On September 10, 2010, the 

Commission approved, for a pilot period 

to end December 10, 2010, a proposed 

rule change submitted by the BATS 

Exchange, Inc., NASDAQ OMX BX, Inc., 

Chicago Board Options Exchange, 

Incorporated, Chicago Stock Exchange, 

Inc., EDGA Exchange, Inc., EDGX 

Exchange, Inc., International Securities 

Exchange LLC, The NASDAQ Stock 

Market LLC, New York Stock Exchange 

LLC, NYSE Amex LLC, NYSE Arca, Inc., 

and National Stock Exchange, Inc. 

(collectively, the ‘‘Exchanges’’), to 

amend certain of their respective rules 

to set forth clearer standards and curtail 

discretion with respect to breaking 

erroneous trades.3 The changes were 

adopted to address concerns that the 

lack of clear guidelines for dealing with 

clearly erroneous transactions may have 

added to the confusion and uncertainty 

faced by investors on May 6, 2010. In 

connection with its resumption of 

trading of NMS Stocks through PSX, the 

Exchange amended Rule 3312 to 

conform it to the newly-adopted 

changes to the Exchanges’ clearly 

erroneous rules, so that it could 

participate in the pilot program.4 On 

December 7, 2010, the Exchange filed an 

immediately effective filing to extend 

the existing pilot program for four 

months, so that the pilot would expire 

on April 11, 2011.5 On March 31, 2011, 

the Exchange filed an immediately 

effective filing to extend the existing 

pilot program for four months, so that 

the pilot would expire on 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

The Exchange believes that the pilot 

program has been successful in 

providing greater transparency and 

certainty to the process of breaking 

erroneous trades. The Exchange also 

believes that an additional extension of 

the pilot is warranted so that it may 

continue to monitor the effects of the 

pilot on the markets and investors, and 

consider appropriate adjustments, as 

necessary. 

Accordingly, the Exchange is filing to 

further extend the pilot program until 

January 31, 2012 and to eliminate 

language from the rule concerning the 

‘‘limit up/limit down’’ mechanism. 

2. Statutory Basis 

The statutory basis for the proposed 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),7 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) 8 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 transparency and uniformity 

across markets concerning decisions to 

break erroneous trades. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor 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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6)(iii) thereunder.10 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 because such waiver will 

allow the pilot program to continue 

uninterrupted and help ensure 

uniformity among the national 

securities exchanges and FINRA with 

respect to the treatment of clearly 

erroneous transactions.11 Accordingly, 

the Commission waives the 30-day 

operative delay requirement and 

designates the proposed rule change as 

operative upon filing with the 

Commission. 

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–PHLX–2011–110 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–2011–110. 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 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 157 / Monday, August 15, 2011 / Notices 50521 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Changes are marked to the rules of the Exchange 

found at http://nasdaqomxbx.cchwallstreet.com. 

4Securities Exchange Act Release No. 64696 

(June 17, 2011), 76 FR 36950 (June 23, 2011) (SR– 

NASDAQ–2011–083). 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(3). 

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 PHLX. 

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–PHLX–2011–110 and 

should be submitted on or before 

September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20631 Filed 8–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65063; File No. SR– 

NASDAQ–2011–110] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Regarding a 

Clerical Change to NASDAQ Options 

Market Rules 

August 9, 2011. 

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 2, 

2011, The NASDAQ Stock Market LLC 

(the ‘‘Exchange’’ or ‘‘NASDAQ’’) 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to renumber a 

subsection of NASDAQ Options Market 

Chapter VI, Section 10. The text of the 

proposed rule change is below. 

Proposed new language is in italics; 

proposed deletions are in brackets.3

NASDAQ proposes to implement the 

proposed rule change immediately. 

* * * * * 

Chapter VI, Trading Systems. 

* * * * * 

Section 10. Book Processing. 

System orders shall be executed 

through the Nasdaq Book Process set 

forth below: 

(1)–(5) No Change. 

([5]6) Exception: AntiInternalization—Quotes and orders 

entered by Options Market Makers using 

the same market participant identifier 

will not be executed against quotes and 

orders entered on the opposite side of 

the market by the same market maker 

using the same identifier. In such a case, 

the System will cancel the oldest of the 

quotes or orders back to the entering 

party prior to execution. 

* * * * * 

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 

NASDAQ proposes to make a clerical 

correction to the NASDAQ rulebook. 

Specifically, NASDAQ proposes to 

renumber NASDAQ Options Market 

Chapter VI, Section 10. On June 14, 

2011, NASDAQ submitted a proposed 

rule filing to adopt anti-internalization 

functionality for registered market 

makers on the NASDAQ Options 

Market. The Commission published the 

notice of filing and immediate 

effectiveness on June 23, 2011.4

Although the rule change was effective 

upon filing, the change is not operative 

until August 1, 2011. The Exchange is 

renumbering this previously approved 

rule because another rule change has 

been approved that uses the same 

number. There is no change to the 

substance of the rule. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,5 in 

general, and with Section 6(b)(5) of the 

Act,6 in particular, in that the proposal 

is designed to prevent fraudulent and 

manipulative acts and practices, 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. The proposed rule 

change makes a minor clerical change to 

an existing NASDAQ rule. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A) of the 

Act 7 and Rule 19b–4(f)(3) thereunder,8

NASDAQ has designated this proposal 

as one that is concerned solely with the 

administration of the self-regulatory 

organization. Accordingly, NASDAQ 


srobinson on DSK4SPTVN1PROD with NOTICES