Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50777 

8 15 U.S.C. 78s(b)(3)(A). 

9 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. 

10For 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). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange believes that the pilot 

program promotes just and equitable 

principles of trade in that it promotes 

transparency and uniformity across 

markets concerning review of 

transactions as clearly erroneous. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

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 8 and Rule 19b– 

4(f)(6)(iii) thereunder.9 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.10 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–BATS–2011–026 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–BATS–2011–026. 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 

publicly available. All submissions 

should refer to File Number SR–BATS– 

2011–026 and should be submitted on 

or before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20701 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65095; File No. SR–NSX– 

2011–08] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

Its Rules To Extend Pilot Program 

Regarding Trading Pauses in 

Individual Securities Due to 

Extraordinary Market Volatility 

August 10, 2011. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 5, 

2011, National Stock Exchange, Inc. 

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 comment on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

National Stock Exchange, Inc. 

(‘‘NSX®’’ or ‘‘Exchange’’) is proposing to 

amend its rules to extend a certain pilot 

program regarding trading pauses in 

individual securities due to 

extraordinary market volatility. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nsx.com, at the principal 

office of the Exchange, http:// 

www.sec.gov, 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 


emcdonald on DSK2BSOYB1PROD with NOTICES
50778 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

3See Securities Exchange Act Release No. 62252 

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

NSX–2010 05). 

4See Securities Exchange Act Release No. 63512 

(December 9, 2010), 75 FR 78786 (December 16, 

2010) (SR–NSX–2010–17). 

5See Securities Exchange Act Release No. 62884 

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

2010) (SR–NSX–2010–08). 

6See Securities Exchange Act Release No. 34– 

64213 (April 6, 2011), 76 FR 20409 (April 12, 2011) 

(SR–NSX–2011–04). 

7 15 U.S.C. 78f(b) and 15 U.S.C. 78k–1, 

respectively. 

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

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). 

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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

With this rule change, the Exchange is 

proposing to extend a pilot program 

currently in effect regarding trading 

pauses in individual securities due to 

extraordinary market volatility under 

NSX Rule 11.20B. Currently, unless 

otherwise extended or approved 

permanently, this pilot program will 

expire on August 11, 2011 or the date 

on which a limit up/limit down 

mechanism to address extraordinary 

market volatility, if adopted, applies to 

the Circuit Breaker Securities as defined 

in Commentary .05 of Rule 11.20. The 

instant rule filing proposes an extension 

to the pilot program until January 31, 

2012. 

NSX Rule 11.20B (Trading Pauses in 

Individual Securities Due to 

Extraordinary Market Volatility) was 

approved by the Securities and 

Exchange Commission (the 

‘‘Commission’’) on June 10, 2010 on a 

pilot basis to end on December 10, 

2010.3 The pilot program end date was 

subsequently extended until April 11, 

2011.4 Similar rule changes were 

adopted by other markets in the national 

market system in a coordinated manner. 

As the Exchange noted in its filing to 

adopt NSX Rule 11.20B, during the pilot 

period, the Exchange, in conjunction 

with other markets in the national 

market system, would continue to assess 

whether additional securities need to be 

added and whether the parameters of 

the rule would need to be modified to 

accommodate trading characteristics of 

different securities. NSX Rule 11.20B 

was expanded to include additional 

exchange traded products on September 

10, 2010.5 The pilot program end date 

was further extended to 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, in 

consultation with the Commission and 

other markets, has determined that the 

duration of this pilot program should be 

extended until January 31, 2012. 

Accordingly, pursuant to the instant 

rule filing, the expiration date of the 

pilot program referenced in 

Commentary .05 to Rule 11.20B is 

proposed to be changed from ‘‘August 

11, 2011 or the date on which a limit 

up/limit down mechanism to address 

extraordinary market volatility, if 

adopted, applies to the Circuit Breaker 

Securities as defined in Commentary .05 

of Rule 11.20’’ to ‘‘January 31, 2012’’. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6(b) and 

Section 11A of the Securities Exchange 

Act of 1934 7 (the ‘‘Act’’), in general, and 

Section 6(b)(5) of the Act,8 in particular, 

in that it is designed, among other 

things, to promote clarity, transparency 

and full disclosure, in so doing, to 

prevent fraudulent and manipulative 

acts and practices, 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 maintain fair and orderly 

markets and protect investors and the 

public interest. Moreover, the proposed 

rule change is not discriminatory in that 

it uniformly applies to all ETP Holders. 

The Exchange believes that the 

extension of the pilot program will 

promote uniformity among markets with 

respect to trading pauses. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any inappropriate burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50779 

16 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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–NSX–2011–08 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–NSX–2011–08. 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–NSX–2011– 

08 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. 2011–20736 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65094; File No. SR– 

NASDAQ–2011–11] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Pilot Period of the Trading Pause for 

NMS Stocks 

August 10, 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 8, 

2011, The NASDAQ Stock Market 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

pilot period of the trading pause for 

individual stocks contained in the 

Standard & Poor’s 500 Index, Russell 

1000 Index, and specified Exchange 

Traded Products that experience a price 

change of 10% or more during a fiveminute period, so that the pilot will 

now expire on January 31, 2012. 

The text of the proposed rule change 

is below. Proposed new language is 

italicized; proposed deletions are in 

brackets. 

* * * * * 

4120. Trading Halts 

(a) Authority to Initiate Trading Halts 

or Pauses 

In circumstances in which Nasdaq 

deems it necessary to protect investors 

and the public interest, Nasdaq, 

pursuant to the procedures set forth in 

paragraph (c): 

(1)–(10) No change. 

(11) Shall, between 9:45 a.m. and 3:35 

p.m., or in the case of an early 

scheduled close, 25 minutes before the 

close of trading, immediately pause 

trading for 5 minutes in any Nasdaqlisted security when the price of such 

security moves a percentage specified 

below within a 5-minute period. 

(A) The price move shall be 10% or 

more with respect to securities included 

in the S&P 500® Index, Russell 1000® 

Index, and a pilot list of Exchange 

Traded Products; 

(B) The price move shall be 30% or 

more with respect to all NMS stocks not 

subject to section (a)(i) of this Rule with 

a price equal to or greater than $1; and 

(C) The price move shall be 50% or 

more with respect to all NMS stocks not 

subject to section (a)(i) of this Rule with 

a price less than $1. 

The determination that the price of a 

stock is equal to or greater than $1 

under paragraph (a)(11)(B) above or less 

than $1 under paragraph (a)(11)(C) 

above shall be based on the closing 

price on the previous trading day, or, if 

no closing price exists, the last sale 

reported to the Consolidated Tape on 

the previous trading day. 

At the end of the trading pause, 

Nasdaq will re-open the security using 

the Halt Cross process set forth in 

Nasdaq Rule 4753. In the event of a 

significant imbalance at the end of a 

trading pause, Nasdaq may delay the reopening of a security. 

Nasdaq will issue a notification if it 

cannot resume trading for a reason other 

than a significant imbalance. 

Price moves under this paragraph will 

be calculated by changes in each 

consolidated last-sale price 

disseminated by a network processor 

over a five minute rolling period 

measured continuously. Only regular 

way in-sequence transactions qualify for 

use in calculations of price moves. 

Nasdaq can exclude a transaction price 

from use if it concludes that the 

transaction price resulted from an 

erroneous trade. 

If a trading pause is triggered under 

this paragraph, Nasdaq shall 

immediately notify the single plan 

processor responsible for consolidation 

of information for the security pursuant 

to Rule 603 of Regulation NMS under 

the Securities Exchange Act of 1934. If 

a primary listing market issues an 

individual stock trading pause, Nasdaq 

will pause trading in that security until 

trading has resumed on the primary 

listing market or notice has been 

received from the primary listing market 

that trading may resume. If the primary 

listing market does not reopen within 10 

minutes of notification of a trading 

pause, Nasdaq may resume trading the 

security. 


emcdonald on DSK2BSOYB1PROD with NOTICES