59304 Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 

7 15 U.S.C. 78q–1. 

8 15 U.S.C. 78s(b)(2). 

9 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Session Order duration type is not available for 

PIP Orders, Primary Improvement Orders or 

Improvement Orders. See proposed Section 16(d)(3) 

of Chapter V of the BOX Rules. 

4References herein to the term Trading Host will 

have the meaning as set forth in Section 1(a)(67) of 

Chapter I of the BOX Rules. 

5See Section 16(b) of Chapter V of the BOX Rules. 

6See Section 5(c)(ii) of Chapter VI of the BOX 

Rules. 

7See Section 5 of Chapter XII of the BOX Rules. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act 7 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (File No. SR– 

OCC–2010–09) be and hereby is 

approved.9

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24174 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62959; File No. SR–BX– 

2010–065] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Provide an 

Additional Order Type Which Will Give 

Options Participants Greater Control 

Over the Circumstances in Which Their 

Orders Are Executed 

September 21, 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 

September 13, 2010, NASDAQ OMX 

BX, Inc. (the ‘‘Exchange’’) 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 self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Chapter V, Section 14 (Order Entry) of 

the Rules of the Boston Options 

Exchange Group, LLC (‘‘BOX’’) to 

provide an additional order type which 

will give Options Participants greater 

control over the circumstances in which 

their orders are executed. 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 

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 provide an additional order 

type, the ‘‘Session Order’’, which will 

give Options Participants greater control 

over the circumstances in which their 

orders are cancelled or executed. By 

designating the Session Order duration 

type for an order, an Options Participant 

will be able to specify on an order by 

order basis that the designated Session 

Order it has sent to BOX should be 

cancelled as soon as the Options 

Participant loses its connection to the 

BOX system and its ability to either 

directly modify or cancel the order.3

The proposal will offer protection to 

Options Participants’ orders in the event 

that they lose communication with the 

BOX Trading Host 4 due to a loss of 

connectivity between their system and 

BOX or when there is a disconnection 

between internal BOX components. 

An order sent to BOX with this 

Session Order duration type will remain 

active in the BOX trading system until 

one of the following events (‘‘Triggering 

Event’’) occurs: 

• The connection between the 

Options Participant and BOX that was 

used to enter the order is interrupted; 

• There is a disconnection between 

internal BOX components used to 

process orders, causing a component to 

lose its connection to the Options 

Participant or the Trading Host while in 

possession of the Session Order; 

• A component of the Trading Host 

experiences a system error in which it 

is unable to process open orders while 

in possession of the Session Order. 

Upon the occurrence of one of these 

Triggering Events, meaning the Options 

Participant has lost its ability to either 

directly modify or cancel the order, only 

those Session Orders residing in the 

affected BOX internal system(s) will be 

automatically cancelled by BOX. Any 

Triggering Events are connection or 

component specific. Therefore, when a 

particular external connection between 

BOX and the Options Participant is 

interrupted, only those Session Orders 

that came through the interrupted 

connection will be automatically 

cancelled by BOX. Similarly, when the 

Triggering Event is a disconnection 

between internal BOX components, the 

BOX system will only automatically 

cancel Session Orders related to the 

component that is not ‘‘responding’’. The 

cancellation of the Session Orders from 

an affected connection will neither 

impact nor determine the treatment of 

the orders of the same or other Options 

Participants entered into the Trading 

Host via a separate and distinct 

connection. All Session Orders will be 

cancelled at the end of the normal 

trading day. 

A Session Order will not be cancelled 

and shall remain active in the BOX 

market if the order is not allowed to be 

cancelled pursuant to another BOX Rule 

or it is in one of the following BOX 

system processes when a Triggering 

Event occurs: 

• The order is being exposed to the 

BOX market pursuant to the NBBO trade 

through filter process; 5

• The order is a Directed Order to 

which the Executing Participant has not 

yet responded; 6

• The order has been routed to an 

away exchange pursuant to the Routing 

Rules.7

When a Session Order is 

automatically cancelled, BOX will 

immediately generate a cancellation 

message to notify the Options 

Participant that its order is no longer 

active. After the Session Order(s) are 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 186 / Monday, September 27, 2010 / Notices 59305 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intention 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 filing of the proposed change, or such 

shorter time as designated by the Commission. The 

Commission notes that the Exchange has satisfied 

this requirement. 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

automatically cancelled for an Options 

Participant that lost its connection to 

BOX, and upon a reconnection between 

the Options Participant and the Trading 

Host on the same trading day, the 

Options Participant will be able to 

retrieve any Session Order cancellation 

notices when it reconnects. 

BOX will inform Options Participants 

via Information Circular about the 

functionality and use of the Session 

Order duration type and the 

implementation date prior to its 

implementation in the BOX trading 

system. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,8

in general, and Section 6(b)(5) of the 

Act,9 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

Exchange believes that this proposed 

rule change will benefit the marketplace 

and protect investors because it will 

reduce the risk of erroneous or stale 

orders on the BOX Book in the event 

that an Options Participant loses 

connectivity with the Trading Host. 

Furthermore, the proposed Session 

Order will provide for the protection of 

Options Participants and their 

customers, who must bear the burden of 

market risk for stale orders caused by 

circumstances outside of their control, 

as well as for the protection of investors 

and the efficiency and fairness of the 

market as a whole. 

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 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 neither solicited 

nor received comments on the proposed 

rule change. 

III. Basis for Summary Effectiveness 

Pursuant to Section 19(b)(3) or for 

Accelerated Effectiveness Pursuant to 

Section 19(b)(2) 

Because the foregoing rule does not (i) 

Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

for 30 days from the date on which it 

was filed, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given the 

Commission written notice of its intent 

to file 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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

Rule 19b–4(f)(6) thereunder.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

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

Number SR–BX–2010–065 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–2010–065. 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 website viewing and 

printing in the Commission’s Public 

Reference Room, located at 100 F Street, 

NE., Washington, DC 20549, on 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–2010–065 and should 

be submitted on or before October 18, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–24077 Filed 9–24–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62954; File No. SR–BX– 

2010–066] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

of a Proposed Rule Change To 

Enhance Quotation Requirements for 

Market Makers 

September 20, 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 

September 17, 2010, NASDAQ OMX 


srobinson on DSKHWCL6B1PROD with NOTICES