28844 Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

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

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

5 15 U.S.C. 78k–1(a)(1). 

6The Commission notes that the Exchange has 

requested accelerated approval of the filing. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62123; File No. SR–EDGX– 

2010–01] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing of 

Proposed Rule Change To Amend 

EDGX 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 18, 

2010, EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) 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 

EDGX 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 EDGX Rule 11.14 to allow 

the Exchange to pause trading in an 

individual stock when the primary 

listing market for such stock issues a 

trading pause in any Circuit Breaker 

Securities, as defined below and in 

proposed Interpretation and Policy .05 

of Rule 11.14. If, however, trading has 

not resumed on the primary listing 

market and ten minutes have passed 

since the individual stock trading pause 

message has been received from the 

responsible single plan processor, the 

Exchange may resume trading in such 

stock. 

The proposed rule would apply to 

trading pauses issued by primary listing 

markets in ‘‘Circuit Breaker Securities,’’ 

as defined in proposed Interpretation 

and Policy .05. Specifically, on a pilot 

basis, set to end on December 10, 2010, 

Circuit Breaker Securities would mean 

the securities included in the S&P 500®

Index. 

In addition to adding a new paragraph 

to Rule 11.14 as paragraph (d), and 

renaming existing paragraph (d) as 

paragraph (e), the Exchange has also 

proposed minor changes to Rule 11.14. 

To make clear that the existing trading 

halt described in Rule 11.14 applies to 

all stocks traded on the Exchange, the 

Exchange has added the word ‘‘all’’ to 

the text of paragraphs (a) and (b) of Rule 

11.14. Finally, the Exchange has 

proposed certain minor changes to the 

references in its rules, specifically: 

(1) Deleting references to the number of 

the Rule to avoid inaccurate crossreferences in the event there are other 

changes to the Exchange’s Rules; and 

(2) renaming sections .01 to .04 and 

proposed section .05 of the Rule as 

‘‘Interpretations and Policies’’ rather 

than ‘‘Commentary’’ to be consistent 

with the rest of the Exchange’s rules. 

2. Statutory Basis 

Approval of the rule change proposed 

in this submission is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.3

In particular, the proposed change is 

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

Act,4 because it would promote just and 

equitable principles of trade, remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. The proposed rule change is 

also designed to support the principles 

of Section 11A(a)(1) 5 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 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 

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.6

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 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28845 

7The Commission believes that a 10-day 

comment period is reasonable, given the urgency of 

the matter. It will provide adequate time for 

comment. 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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–EDGX–2010–01 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–EDGX–2010–01. 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–EDGX– 

2010–01 and should be submitted on or 

before June 3, 2010.7

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12414 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62131; File No. SR–NSX– 

2010–05] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing of a Proposed Rule Change 

To Establish a Trading Halt for 

Individual Stocks Contained in the 

Standard & Poor’s 500 Index That 

Experience a 10 Percent Price Change 

of 10% or More During a Five-Minute 

Period Pursuant to Exchange Rule 

11.20 

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 18, 

2010, National Stock Exchange, Inc. 

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 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 the ‘‘Exchange’’) is proposing 

to establish a trading halt 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 available on the Exchange’s Web site 

at http://www.nsx.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 

Purpose 

The Exchange proposes to add NSX 

Rule 11.20B 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 listing 

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 (for which the 

Exchange is the primary listing market) 

that experience rapid price movement, 

as set forth below (‘‘Circuit Breaker 

Securities’’). Consistent with the other 

markets, the Exchange is proposing that 

this rule be implemented as a six-month 

pilot so that all of the markets may 

assess the effect of this rule proposal on 

the national market system. 

As proposed, Rule 11.20B would 

enable the Exchange to pause trading in 

an individual security that is primary 

listed [sic] on the Exchange (a ‘‘Listed 

Circuit Breaker Security’’) 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 (all 

times referenced in the Rule have now 

been converted to reflect Eastern time). 

Proposed Rule 11.20B(b) sets forth the 

re-opening procedures of a Listed 

Circuit Breaker Security following a 

Trading Pause. As proposed, the 

Exchange will re-open trading in the 

Listed Circuit Breaker Security at the 

end of the Trading Pause subject to 

Exchange procedures. As proposed, 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 system changes, 

thereby enabling other market to resume 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES