Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28837 

5The Commission notes that the Exchange has 

requested accelerated approval of the filing. 

6The Commission believes that a 10-day 

comment period is reasonable, given the urgency of 

the matter. It will provide adequate time for 

comment. 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved.5

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 Exchange 

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–2010–48 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–2010–48. 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 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–ISE– 

2010–48 and should be submitted on or 

before June 3, 2010.6

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12417 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62127; File No. SR– 

NYSEAmex-2010–46] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing of a 

Proposed Rule Change Adding NYSE 

Amex Equities Rule 80C To Provide for 

a Trading Pause for Individual 

Securities When the Price Moves 10 

Percent or More 

May 19, 2010. 

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 May 18, 

2010, NYSE Amex LLC (‘‘NYSE Amex’’ 

or the ‘‘Exchange’’) 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 NYSE Amex. 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 add NYSE 

Amex Equities Rule 80C to provide for 

a trading pause for individual securities 

when the price moves 10 percent or 

more. A copy of this filing is available 

on the Exchange’s Web site at http:// 

www.nyse.com, at the Exchange’s 

principal office, 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 those 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to add NYSE 

Amex Equities Rule 80C to provide for 

a trading pause for individual securities 

for which the Exchange is the primary 

listing market if the price of such 

security moves 10% or more from a sale 

in a preceding five-minute period. The 

Exchange is proposing this rule addition 

in consultation with other markets and 

staff of the Securities and Exchange 

Commission to provide for uniform 

market-wide trading pause standards for 

individual securities in the S&P 500®

Index that experience rapid price 

movement, as set forth below. 

The Exchange is proposing that this 

rule be implemented on a pilot basis, set 

to end on December 10, 2010. During 

this pilot period, the rule would be in 

effect only with respect to securities 

included in the S&P 500 ® Index. During 

that pilot period, the Exchange will 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

28838 Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 

3 15 U.S.C. 78f(b)(5). 

4 15 U.S.C. 78k–1(a)(1). 

5The Commission notes that the Exchange has 

requested accelerated approval of the filing. 

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. 

As proposed, NYSE Amex Equities 

Rule 80C would enable the Exchange to 

pause trading in an individual security 

listed on the Exchange if the price 

moves by 10% as compared to prices of 

that security in the preceding fiveminute period during a trading day, 

which period is defined as a ‘‘Trading 

Pause.’’ To enable the market to absorb 

the opening price of a security and to 

participate in the close, as proposed, the 

proposed rule would be in effect from 

9:45 a.m. to 3:35 p.m., Eastern Time. 

Proposed NYSE Amex Equities Rule 

80C(b) sets forth the re-opening 

procedures following a Trading Pause. 

As proposed, Designated Market Makers 

(‘‘DMM’’) at the Exchange would be 

responsible for re-opening trading at the 

end of the Trading Pause in a manner 

similar to existing procedures set forth 

in Rule 123D, subject to specified 

revisions. First, unlike the regular 

procedures for publishing indications 

after a halt, an indication shall be 

published as close to the beginning of 

the Trading Pause as possible and such 

indications shall be updated until the 

security has re-opened. Note, however, 

that the security may re-open even if the 

DMM does not have an opportunity to 

update an indication to reflect changes 

to order flow before the re-opening time. 

Second, any re-openings following a 

Trading Pause are not subject to the 

requirements that (i) a minimum of 

three minutes must elapse between the 

first indication and a security’s reopening, or (ii) if more than one 

indication is published, a minimum of 

one minute must elapse before a 

security’s re-opening. Third, the 

Exchange shall publish Order Imbalance 

Information, as defined in Rule 15(c), 

approximately every 15 seconds 

following the imposition of the Trading 

Pause until the security re-opens. 

Unlike a re-opening following a 

regulatory halt, the re-opening of a 

security following a Trading Pause shall 

be at the end of the Trading Pause. Such 

re-opening may be either on a trade or 

a quote. However, in the event of a 

significant imbalance, the Exchange 

may delay the re-opening of the security 

past the five-minute Trading Pause 

period. The Exchange will notify other 

markets if it cannot reopen because of 

issues unrelated to an order imbalance, 

thereby enabling other markets to 

resume trading even if the primary 

market has not re-opened. The Exchange 

notes that if it re-opens the security after 

other markets have resumed trading, 

such reopening is subject to Rule 

611(b)(3) of Regulation NMS as an 

exception to the Order Protection Rule. 

The 10% or more move in price will 

be calculated every second by 

comparing each last consolidated sale 

price of a security (‘‘Trigger Trade’’) 

during the preceding second to a 

reference price (the ‘‘Calculation Time’’). 

For purposes of this calculation, the 

reference price shall be any transaction 

in that security printed to the 

Consolidated Tape during the fiveminute period before the Calculation 

Time. Because the calculation period 

begins at 9:45 a.m., trades occurring 

after 9:45 a.m. may be a Trigger Trade; 

however, the reference price(s) for such 

Trigger Trades will begin at 9:45 a.m. In 

such case, in the first five minutes of the 

calculation period, the reference prices 

for a Trigger Trade will not be based on 

five minutes of trading in that security. 

For example, a trade at 9:45:05 will be 

compared only to trades between 

9:45:00 and 9:45:05. The last potential 

Trigger Trade will be at 3:35 p.m., so 

that such Trading Pause will end at 3:40 

p.m. 

As proposed, only regular way, insequence transactions qualify as either a 

Trigger Trade or a reference price. To 

ensure that erroneous executions do not 

trigger a Trading Pause, the Exchange 

also proposes that it can exclude a 

transaction price from use as a reference 

price or Trigger Trade if it concludes 

that the transaction price resulted from 

an erroneous execution. 

The proposed rule further provides 

that if a Trading Pause is triggered, the 

Exchange will immediately notify the 

single plan processor responsible for 

consolidation of information for the 

security. 

In addition, if the listing market for a 

security that trades on the Exchange on 

an unlisted trading privilege basis 

pauses under its respective rules, the 

Exchange will also pause trading in that 

security until the listing market has 

either resumed trading or the Exchange 

has received notice from the primary 

listing market that trading may resume. 

If the primary listing market does not 

reopen trading in the security within 10 

minutes of notification of a trading 

pause, the Exchange may resume 

trading of the security. 

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’’),3 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) 4 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 

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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved.5

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 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28839 

6The Commission believes that a 10-day 

comment period is reasonable, given the urgency of 

the matter. It will provide adequate time for 

comment. 

7 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 rule text that appears 

in the electronic manual of NASDAQ found at 

http://nasdaqomx.cchwallstreet.com. 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEAmex–2010–46 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2010–46. 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 NYSE 

Amex. 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–NYSEAmex–2010–46 and 

should be submitted on or before June 

3, 2010.6

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12419 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62129; File No. SR– 

NASDAQ–2010–061] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of a Proposed Rule Change To 

Establish a Trading Pause for 

Individual Stocks Contained in the 

Standard & Poor’s 500 Index That 

Experience a Price Change of 10% or 

More During a Five-Minute Period 

May 19, 2010. 

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 May 18, 

2010, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or the ‘‘Exchange’’) 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 Nasdaq. 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 is filing with the 

Commission a proposed rule change to 

establish a trading pause for individual 

stocks contained in the Standard & 

Poor’s 500 Index (‘‘S&P 500’’) that 

experience a price change of 10% or 

more during a five-minute period. 

The text of the proposed rule change 

is below. Proposed new language is in 

italics and proposed deletions are in 

[brackets].3

* * * * * 

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., 

immediately pause trading for 5 minutes in 

any Nasdaq-listed security when the price of 

such security moves 10 percent or more 

within a 5-minute period. 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 re-opening 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 insequence 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. 

The provisions of this paragraph shall only 

apply to securities in the Standard & Poor’s 

500 Index. 

The provisions of this paragraph shall be 

in effect during a pilot set to end on 

December 10, 2010. 

(b) No Change. 

(c) Procedure for Initiating a Trading Halt 

(1)–(6) No Change. 

(7) 

(A) A trading halt or pause initiated under 

Rule 4120(a)(1), (4), (5), (6), (9), [or] (10), (11) 

or Rule 4120(b) shall be terminated when 

Nasdaq releases the security for trading. Prior 

to terminating the halt, there will be a 5- 

minute Display Only Period during which 

market participants may enter quotations and 

orders in that security in Nasdaq systems. At 

the conclusion of the 5-minute Display Only 

Period, the security shall be released for 

trading unless Nasdaq extends the Display 

Only Period for an additional 1-minute 

period pursuant to subparagraph (C) below. 

At the conclusion of the Display Only Period, 

trading shall immediately resume pursuant to 

Rule 4753. 

(B) No Change. 

(C) If at the end of a Display Only Period, 

Nasdaq detects an [liquidity] order imbalance 

in the security, Nasdaq will extend the 

Display Only Period as permitted under 

subparagraphs (A) and (B) above. [Liquidity] 

Order [I]imbalances shall be established 

when (i) the Current Reference Prices, as 

defined in Rule 4753(a)(2)(A), disseminated 

15 seconds and immediately prior to the end 

of the Display Only Period differ by more 

than the greater of 5 percent or 50 cents, or 

(ii) all buy or sell market orders will not be 

executed in the cross. 

* * * * * 

4753. Nasdaq Halt and Imbalance Crosses 

(a) No Change. 

(b) Processing of Nasdaq Halt Cross. For 

Nasdaq-listed securities that are the subject 

of a trading halt or pause initiated pursuant 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES