Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28831 

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. 

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. 

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 

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

Number SR–NYSEArca–2010–41 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–NYSEArca-2010–41. 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 

Arca. 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–NYSEArca–2010–41 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. 2010–12421 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62126; File No. SR–NYSE– 

2010–39] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of a Proposed Rule Change 

Adding 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, New York Stock Exchange LLC 

(‘‘NYSE’’ 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. 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 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. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

28832 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). 

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 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 fiveminute 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 

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, 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 five-minute 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 Rule 80C(b) sets forth the reopening 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 reopened. 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. 

The Exchange further proposes to 

include in the rule that if the listing 

market for a security that trades on the 

Exchange on an unlisted trading 

privilege (‘‘UTP’’) 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. While the Exchange does not 

currently trade any securities on a UTP 

basis, the Exchange is including this 

provision both to maintain uniformity 

across the ‘‘trading pause’’ rules adopted 

by multiple markets and to ensure that 

if the Exchange does implement a UTP 

program, this rule will already be in 

place. 

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 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28833 

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. 

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 

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

Number SR–NYSE–2010–39 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–NYSE–2010–39. 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. 

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–NYSE–2010–39 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. 2010–12418 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62122; File No. SR–EDGA– 

2010–01] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing of 

Proposed Rule Change To Amend 

EDGA Rule 11.14, Entitled ‘‘Trading 

Halts Due to Extraordinary Market 

Volatility’’ 

May 19, 2010. 

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 May 19, 

2010, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 is proposing to amend 

EDGA Rule 11.14, entitled ‘‘Trading 

Halts Due to Extraordinary Market 

Volatility.’’ 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.directedge.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 

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 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 primary listing markets for U.S. 

stocks are in the process of amending 

their rules so that they may, from time 

to time, issue a trading pause for an 

individual security if the price of such 

security moves 10% or more from a sale 

in a preceding five-minute period. The 

Exchange is proposing the rule change 

described below in consultation with 

other markets and Commission staff 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 not 

currently the primary listing market for 

any securities, and thus, will not be 

issuing any trading pauses pursuant to 

its rules. 

The Exchange proposes to add a new 

paragraph to EDGA Rule 11.14 to allow 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES