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

28846 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. 

trading even if the primary listing 

market has not re-opened. 

The 10% or more move in price will 

be calculated by comparing the last 

consolidated sale price of a Listed 

Circuit Breaker Security (‘‘Trigger 

Trade’’) to a reference price every 

second. For purposes of this calculation, 

the reference price shall be any 

transaction in that security printed to 

the Consolidated Tape during a fiveminute period before the Trigger Trade. 

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 trade. 

The proposed rule further provides 

that if a Trading Pause is triggered for 

a Listed Circuit Breaker Security, the 

Exchange will immediately notify the 

single plan processor responsible for 

consolidation of information for the 

security. 

In addition, proposed Rule 11.20B(f) 

would allow the Exchange to pause 

trading in an individual security when 

the primary listing market for such 

security issues a trading pause in any 

Circuit Breaker Security. If, however, 

trading has not resumed on the primary 

listing market and ten minutes have 

passed since the individual security 

trading pause message has been 

received from the responsible single 

plan processor, the Exchange may 

resume trading in such security. 

The proposed rule would apply to 

trading pauses issued by primary listing 

markets in ‘‘Circuit Breaker Securities,’’ 

as defined in proposed Commentary .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. Thus, 

proposed Rule 11.20B would be in effect 

only with respect to securities in the 

S&P 500® Index. 

In addition to proposing the addition 

of new Rule 11.20B, the text of the prior 

Rule 11.20 would be reformatted to 

make clear that newly formatted Rule 

11.20A applies to market-wide halts 

whereas proposed new Rule 11.20B 

applies to individual security pauses. 

The time periods specified in Rule 

11.20A are also revised to make Eastern 

time the uniform time zone referenced 

in the rule. Further, the text of Rule 

11.20A(d) is proposed to be moved to a 

new Rule 11.20C to make clear that the 

NSX book is cleared of all outstanding 

orders in the context of both individual 

security pauses and market-wide halts. 

Similarly, the commentary to Rule 11.20 

is proposed to be edited in conformity 

with the edits proposed elsewhere in 

the rule. As proposed, nothing in the 

rule would be construed to affect or 

limit in any way the ability of the 

Exchange to halt or suspend trading n 

[sic] one or more securities pursuant to 

any other Exchange rule or policy. 

Statutory Basis 

The statutory basis for the proposed 

rule change is Section 6(b)(5) of 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 Exchange Act. 

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 such 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–NSX–2010–05 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 

20549–9303. 

All submissions should refer to File No. 

SR–NSX–2010–05. This file number 

should be included in the subject line 

if e-mail is used. To help the 

Commission process and review 

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 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 99 / Monday, May 24, 2010 / Notices 28847 

6 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(b). 

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

5 15 U.S.C. 78k–1(a)(1). 

Reference Section, 100 F Street, NE., 

Washington, DC 20549. Copies of such 

filings will also 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–NSX– 

2010–05 and should be submitted on or 

before June 3, 2010. 

For the Commission by the Division of 

Trading and Markets, pursuant to the 

delegated authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–12424 Filed 5–21–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62132; File No. SR–CBOE– 

2010–047] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of a 

Proposed Rule Change Related to 

Individual Stock Trading Pauses 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, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘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 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 

trading procedures on a pilot basis for 

certain stocks traded on the CBOE Stock 

Exchange (‘‘CBSX’’), the CBOE’s stock 

trading facility. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/Legal), at the Office of the 

Secretary, CBOE and at the Commission. 

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 the 

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 stock if the price of such 

stock 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 

U.S. listing markets and Commission 

staff to provide for uniform market-wide 

trading pause standards for individual 

stocks 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 stocks, and thus, will not be issuing 

any trading pauses pursuant to its rules. 

The Exchange proposes to add a new 

Rule 6.3C to allow CBSX to halt trading 

in an individual stock when the primary 

listing market for such stock issues a 

trading pause in any Circuit Breaker 

Stocks, as defined below and in 

proposed Rule 6.3C.03. CBSX will 

resume trading once trading has 

resumed on the primary listing market. 

If, however, trading has not resumed on 

the primary listing market after ten 

minutes have passed since the 

individual stock trading pause message 

has been received from the responsible 

single plan processor, CBSX may 

resume trading in such stock. 

The proposed rule would apply to 

trading pauses issued by primary listing 

markets in ‘‘Circuit Breaker Stocks,’’ as 

defined in proposed Rule 6.3C.03. 

Specifically, on a pilot basis, set to end 

on December 10, 2010, Circuit Breaker 

Stocks would mean the stocks included 

in the S&P 500 Index. Thus, proposed 

Rule 6.3C would be in effect only with 

respect to stocks in the S&P 500 Index. 

Upon reopening, a rotation shall be 

held in the individual stock on CBSX 

unless the Exchange concludes that a 

different method of reopening is 

appropriate under the circumstances, 

including but not limited to, no rotation, 

an abbreviated rotation or any other 

variation in the manner of the rotation. 

Lastly, nothing in the proposed Rule 

shall be construed to limit the ability of 

the Exchange to halt or suspend trading 

in any security or securities traded on 

the Exchange pursuant to any other 

Exchange rule or policy. 

In addition to adding a new Rule 

6.3C, the Exchange has also proposed 

minor changes to Rules 6.2B and 52.3. 

To make clear that the existing trading 

halt described in Rule 6.2B applies to all 

stocks traded on the Exchange, the 

Exchange has added the word 

‘‘marketwide’’ to the title of Rule 6.2B. 

Finally, the Exchange has proposed to 

include a cross-reference to proposed 

Rule 6.2C in Rule 52.3. 

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 stock when there are 

significant price movements. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES