50784 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

4 15 U.S.C. 78f(b). 

5 15 U.S.C. 78f(b)(4). 

6For example, the customer fee is $0.00 per 

contract for products other than Singly Listed 

Indexes, Singly Listed ETFs and FX Options. For 

Singly Listed Options, Singly Listed ETFs and FX 

Options, the customer fee is $0.18 per contract. The 

Exchange also currently has an incentive plan in 

place for certain specific FX Options which has its 

own pricing. See ISE Schedule of Fees. 

7The Exchange currently has a sliding scale fee 

structure that ranges from $0.01 per contract to 

$0.18 per contract depending on the level of volume 

a Member trades on the Exchange in a month. 8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

Act 4 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 5

in particular, in that it is an equitable 

allocation of reasonable dues, fees and 

other charges among Exchange 

members. The Exchange believes that 

the proposed fee changes will generally 

allow the Exchange and its Members to 

better compete for order flow and thus 

enhance competition. More specifically, 

the Exchange believes that its proposal 

to adopt volume-based rebates is 

reasonable as it will encourage Members 

to direct their QCC and Solicitation 

orders to the Exchange instead of to a 

competing exchange. The Exchange 

notes that it has previously adopted 

other incentive programs to promote 

and encourage growth in specific 

business areas. For example, the 

Exchange has lower fees (or no fees) for 

customer orders; 6 and tiered pricing 

that reduces rates for market makers 

based on the level of business they bring 

to the Exchange.7 This proposed rule 

change targets yet another segment in 

which the Exchange seeks to garnish 

greater order flow. The Exchange also 

believes that adopting the proposed 

rebates is reasonable because it is 

designed to give Members who trade a 

lot on the Exchange a benefit by way of 

a lower transaction fee. As noted above, 

once a Member reaches the established 

threshold, all of the trading activity in 

the specified order type by that Member 

will be subject to the proposed rebate. 

The Exchange also believes the 

proposal to adopt the rebates is 

equitable because it would uniformly 

apply to all Members engaged in QCC 

and Solicitation trading in all option 

classes traded on the Exchange. 

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 foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.8 At any time 

within 60 days of the filing of such 

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 rulecomments@sec.gov. Please include File 

Number SR–ISE–2011–47 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–ISE–2011–47. 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–ISE– 

2011–47, and should be submitted on or 

before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20733 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65080; File No. SR–CHX– 

2011–23] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change To Extend 

the Pilot Program Relating to 

Individual Securities Circuit Breakers 

August 9, 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 8, 

2011, the 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 and II below, which Items have 

been prepared by the CHX. CHX has 

filed this proposal pursuant to Exchange 

Act Rule 19b–4(f)(6) 3 which is effective 

upon filing with the Commission. 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50785 

4See Securities Exchange Act Release No. 62252 

(June 10, 2010), 75 FR 34186 (June 16, 2010) 

approving SR–CHX–2010–10. 

5See Securities Exchange Act Release No. 62884 

(September 10, 2010), 75 FR 56618 (September 16, 

2010) approving SR–CHX–2010–14. 

6See Securities Exchange Act Release No. 34– 

63498 (December 9, 2010), 75 FR 78310 December 

15, 2010) approving SR–CHX–2010–24. 

7See Securities Exchange Act Release No. 64203 

(April 6, 2011), 75 FR 20393 April 12, 2011) 

approving SR–CHX–2011–05. 

8See Securities Exchange Act Release No. 64735 

(June 23, 2011), 75 FR 38243 (June 29, 2011) 

approving SR–CHX–2011–09. 

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

10 17 CFR 240.19b–4(f)(6). 

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

12 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. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For 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). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

CHX proposes to amend its rules to 

extend the pilot program relating to 

individual securities circuit breakers. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In June, 2010, CHX obtained 

Commission approval to amend Article 

20, Rule 2 to create circuit breakers in 

individual securities on a pilot basis to 

end on December 10, 2010.4 Shortly 

thereafter, in September, the 

Commission approved another 

amendment to Article 20, Rule 2 to add 

securities included in the Russell 1000®

Index (‘‘Russell 1000’’) and certain 

specified Exchange Traded Products 

(‘‘ETP’’) to the pilot rule.5 This program 

was subsequently extended until April 

11, 2011 6 and was again extended until 

August 11, 2011.7 Then, in June, 2011, 

the Commission approved another 

amendment to Article 20, Rule 2 to add 

all NMS stocks to the pilot rule.8

The proposed rule change merely 

extends the duration of the pilot 

program to January 31, 2012. Extending 

the pilot in this manner will allow the 

Commission more time to consider the 

impact of the pilot program. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b)(5) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), 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) 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. 

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 either 

solicited or received. 

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 9 and Rule 

19b–4(f)(6) thereunder.10 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 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii) 14 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 as operative upon filing.15

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–CHX–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. 


emcdonald on DSK2BSOYB1PROD with NOTICES
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