Federal Register / Vol. 77, No. 49 / Tuesday, March 13, 2012 / Notices 14845 

8 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). 

4RFQ messages are defined in Chapter I, Section 

1(a)(58); Chapter V, Section 9(h) provides that the 

Market Regulation Center may send an RFQ to aid 

in the opening under certain conditions; and 

Chapter VI, Section 6 requires a market maker to 

post a valid two-sided quote that meets certain size 

and spread requirements within 3 seconds of 

receiving any RFQ message or when called up on 

to submit a quote by an Options Official. 

5See Chapter V, Section 16(b)iii, providing that 

where an order is received which is executable 

against the NBBO and there is not a quote on BOX 

that is equal to the NBBO, that the order is exposed 

on the BOX Book at the NBBO for a period of one 

Continued 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rulecomments@sec.gov. Please include File 

Number SR–BX–2012–016 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–BX–2012–016. This file 

number should be included on the 

subject line if email 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–BX– 

2012–016 and should be submitted on 

or before April 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6032 Filed 3–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66526); File No. SR–BX– 

2012–017] 

Self-Regulatory Organizations; 

NASDAQ OMX BX; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Identify the 

Proprietary Data Feed of BOX Market 

Information That BOX Makes Available 

to Its Options Participants at No 

Charge 

March 7, 2012. 

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 March 2, 

2012, NASDAQ OMX BX (the 

‘‘Exchange’’) 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 Exchange. The Exchange has 

designated the proposed rule change as 

constituting a non-controversial rule 

change under Rule 19b–4(f)(6) under the 

Act,3 which renders the proposal 

effective upon filing with the 

Commission. 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 

Trading Rules of the Boston Options 

Exchange Group, LLC (‘‘BOX’’) to 

identify the proprietary data feed of 

BOX market information that BOX 

makes available to its Options 

Participants at no charge. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

Internet Web site at http:// 

nasdaqomxbx.cchwallstreet.com/ 

NASDAQOMXBX/Filings/. 

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 Exchange is proposing to amend 

subsection 16(a) to Chapter V of the 

BOX Trading Rules to specify the name 

and content of the BOX market trading 

data feed containing information that 

BOX makes available to BOX Options 

Participants without charge and to 

restructure the current subsection to 

provide more clarity. 

BOX provides the BOX High Speed 

Vendor Feed (‘‘HSVF’’) as an alternative 

for BOX Options Participants to receive 

BOX market data directly from BOX 

rather than via a commercial data 

vendor (which receives data from the 

Options Price Reporting Authority 

(‘‘OPRA’’)). The HSVF is available to all 

BOX Participants. 

Current subsection 16(a)ii will be 

removed and replaced with language 

which specifies that the HSVF contains 

the following information: 

(1) Trades and trade cancellation 

information; 

(2) Best-ranked price level to buy and 

the best ranked price level to sell; 

(3) Instrument summaries (including 

information such as high, low, and last 

trade price and traded volume); 

(4) The five best limit prices for each 

option instrument; 

(5) Request for Quote messages (see 

Chapter I, Section 1(a)(58), Chapter V, 

Section 9(h) and Chapter VI, Section 

6); 4

(6) PIP Order, Improvement Order and 

Block Trade Order (Facilitation and 

Solicitation) information (as set forth in 

Sections 18 and 31 of Chapter V of the 

BOX Rules, respectively); 

(7) Orders exposed at NBBO (as set 

forth in Chapter V, Section 16(b)iii and 

Chapter VI, Section 5(c)iii of the BOX 

Rules, respectively); 5

mstockstill on DSK4VPTVN1PROD with NOTICES

14846 Federal Register / Vol. 77, No. 49 / Tuesday, March 13, 2012 / Notices 

second. If the order is not executed during the one 

second exposure period, then the order is either 

routed or cancelled. See also Chapter VI, Section 

5(c)iii setting forth, among other matters, the rules 

regarding exposure within the Directed Order 

process. 

6As noted, BOX does not charge any fee directly 

for the HSVF. BOX does charge an initial setup fee, 

and a monthly maintenance fee, for physical 

connections to BOX, as set forth in Section 5.a., of 

the BOX Fee Schedule. A physical connection 

enables Participants to submit quotes or orders to 

BOX, and receive the HSVF if they choose. All BOX 

Market Makers must accept the HSVF. However, 

BOX Order Flow Providers are not obligated to 

accept the HSVF. 7 15 U.S.C. 78f(b). 

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

9 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. 

10See, e.g., Securitites Exchange Act Release Nos. 

64445 (May 9, 2011), 76 FR 28108 (May 13, 2011) 

(SR–BATS–2011–017); 63983 (February 25, 2011), 

76 FR 12178 (March 4, 2011) (SR–NASDAQ–2011– 

032). 

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). 

(8) Instrument dictionary (e.g. strike 

price, expiration date, underlying 

symbol, price threshold, and minimum 

trading increment for instruments 

traded on BOX); 

(9) Options class and instrument 

status change notices (e.g., whether an 

instrument or class is in pre-opening, 

continuous trading, closed, halted, or 

whether prohibited from trading); and 

(10) Options class opening time. 

The proposed change identifies the 

BOX proprietary data feed containing 

market information that BOX makes 

available to its Options Participants and 

sets forth in the BOX Rules that the 

HSVF is provided at no charge.6 As will 

be set forth in more detail below, all 

orders and executions displayed 

through the HSVF are anonymous and 

do not contain the identity of the party 

submitting the order. 

The Exchange also proposes to 

restructure subsection 16(a). 

Specifically, the Exchange proposes to 

remove the introductory language to 

16(a). The current introductory language 

of subsection 16(a) does not fully 

describe the entire subsection. The 

removal of ‘‘Order Ranking and 

Display’’ should eliminate any potential 

for confusion regarding information that 

is set forth in that subsection. In 

addition, as proposed, the new first 

sentence sets forth that the rules 

regarding the manner in which BOX 

displays market information are 

provided in subsection (a)ii. The current 

language modifies current subsection 

16(a)ii, and provides, that except as 

provided for in Section 18 (the Price 

Improvement Period), BOX shall display 

all non-marketable Limit Orders in a 

manner described below. This language 

is no longer applicable, because, as 

previously described, proposed 

subsection (a)ii completely replaces 

current subsection 16(a)ii and will now 

set forth the content of the HSVF in this 

portion of the rule. A reference to 

subsection (a)iii is being provided to 

add more clarity to the introductory 

paragraph. The language referencing 

that the information is being displayed 

on an anonymous basis is being 

removed, as it is duplicative and can be 

found in Chapter V, Section 14(e) which 

provides that, ‘‘[t]he identity of Options 

Participants who submit orders to the 

Trading Host will remain anonymous to 

market participants at all times, except 

orders submitted through the Directed 

Order process, during error resolution or 

through the normal clearing process as 

set forth in Chapter V, Section 16(a)(vi) 

of these Rules.’’ Finally, a reference to 

Rule 11Ac–1 is being replaced with a 

reference to Rule 602. Rule 11Ac–1 was 

re-designated as Rule 602 as part of the 

adoption of Regulation NMS. 

2. Statutory Basis 

The Exchange believes that this 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 

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

furthers the objectives of Section 6(b)(5) 

of the Act, in particular, in that it 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 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

In adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations and broker-dealers 

increased authority and flexibility to 

offer new and unique market data to the 

public. It was believed that this 

authority would expand the amount of 

data available to consumers, and also 

spur innovation and competition for the 

provision of market data. The Exchange 

believes that the proposal is in keeping 

with those principles by promoting 

increased transparency through the 

dissemination of more useful 

proprietary data and also by clarifying 

its availability to market participants. 

Additionally, the Exchange is making 

a voluntary decision to make this data 

available, unlike the best bid and offer 

which must be made available under the 

Act. The Exchange chooses to make the 

data available as proposed in order to 

improve market quality, to attract order 

flow, and to increase transparency. 

Once this proposed change becomes 

effective, the Exchange will continue 

making the data available until such 

time as the Exchange changes its 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. 

To the contrary, offering a voluntary and 

free data feed promotes competition 

among trading platforms by advertising 

available trading interest and enabling 

BOX to attract additional liquidity. 

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 significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not 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) thereunder.9

The Exchange has requested that the 

Commission waive the 30-day operative 

delay to allow the Exchange to continue 

to provide the HSVF that it already 

makes freely available and on a 

voluntary basis. The Commission 

believes that waiver of the operative 

delay is consistent with the protection 

of investors and the public interest 

because the proposal is designed to 

promote increased transprancy through 

the dissemination of proprietary data.10

Therefore, the Commission designates 

the proposal operative upon filing.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 49 / Tuesday, March 13, 2012 / Notices 14847 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f. 

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

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 email to rulecomments@sec.gov. Please include File 

Number SR–BX–2012–017 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–BX–2012–017. This file 

number should be included on the 

subject line if email 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 the 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–BX– 

2012–017 and should be submitted on 

or before April 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6033 Filed 3–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66525; File No. SR–ISE– 

2012–09] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Network Fees 

March 7, 2012. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on February 22, 2012, the International 

Securities Exchange, LLC (the 

‘‘Exchange’’ or the ‘‘ISE’’) 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 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 ISE proposes to amend its 

network fees. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.ise.com), 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 

self-regulatory organization 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the Exchange’s 

network fees. Specifically, the Exchange 

proposes to adopt a network fee for a 

new 10 Gigabit (GB) low latency 

Ethernet connectivity option. The 

Exchange currently offers two Ethernet 

connection options, a 1 GB connection 

at a cost of $500 per month and a 10 GB 

connection at a cost of $4,000 per 

month. 

In keeping with changes in 

technology, the Exchange now proposes 

to provide an enhanced bandwidth 

option to enable Members a more 

efficient connection to the Exchange. 

Through the use of new, advanced 

hardware, the proposed new 

connectivity option will provide a 

higher speed network to access the 

Exchange’s Optimise trading system. 

The Exchange proposes to charge 

Members $7,000 per month for this 

connection. ISE has expended 

significant amount of resources in 

developing this infrastructure and the 

proposed fees will allow the Exchange 

to recoup its investment. The 

Exchange’s new network connectivity 

option will provide Members the option 

to select the bandwidth that is 

appropriate for their current needs. This 

new connectivity option is voluntary 

and therefore, the Exchange will retain 

the existing connectivity options for 

those Members who choose not to 

utilize the new network connection. 

The Exchange has designated this 

proposal to be operative on March 1, 

2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 

(‘‘Act’’),3 in general, and with Section 

6(b)(4) of the Act,4 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among Exchange members and 

other persons using its facilities. In 

particular, the proposed rule change 

will provide greater transparency into 

the connectivity options available to 

Members. 

The Exchange’s proposal for a low 

latency 10 GB Ethernet network 

mstockstill on DSK4VPTVN1PROD with NOTICES