Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices 66407 

11The text of the proposed rule change is 

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

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGA, and at the 

Commission’s Public Reference Room. 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Facilitation Crosses are governed by Rule 

6.47(b), and are not affected by this proposal. 

Number SR–EDGA–2010–15 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–EDGA–2010–15. 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 website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission,11 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, 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–EDGA– 

2010–15 and should be submitted on or 

before November 18, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27243 Filed 10–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63166; File No. SR– 

NYSEArca–2010–90] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To Amend Rule 6.47 To 

Describe New Procedures for 

Executing a Cross Transaction 

October 22, 2010. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on October 

21, 2010, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (the ‘‘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 change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.47 to describe new procedures 

for executing a cross transaction. The 

text of the proposed rule change is 

available at the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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 

NYSE Arca proposes to modify Rule 

6.47(a) to describe new procedures for 

Floor Brokers wishing to execute a NonFacilitation cross transaction.4

Currently, after requesting a market, 

Floor Brokers are required to disclose 

the terms of a cross, after which Market 

Makers are allowed to revise their bids 

and offers to block the cross. 

NYSE Arca proposes that Market 

Makers, after being informed of a 

potential cross, should provide their 

best bid and best offer, but not be 

allowed to step ahead of subsequently 

disclosed trading interest. The Exchange 

intends for Market Makers to make 

markets and not prevent better priced 

trading interests from interacting with 

each other. 

The proposed rule change would 

allow a Floor Broker to request, after 

revealing the size of the orders, a final 

quote for a cross from the Trading 

Crowd, and then to cross above the 

highest bid, or below the lowest offer, 

and, if not on a price provided by the 

Crowd, to execute the cross in its 

entirety. If the cross were to take place 

on the price provided by the Crowd, the 

Floor Broker would be obligated to trade 

with that interest prior to crossing the 

orders. The cross would be required to 

be within the National Best Bid/Offer, 

and would also be obligated to satisfy 

any bids or offers in the Consolidated 

Book equal to or better than the crossing 

price. 

For example, if the prices of the 

orders to be crossed allowed for a range 

of possible crossing prices, and the 

Trading Crowd provided a final quote 

that was two or more Minimum Price 

Variations (‘‘MPV’’) wide, the Floor 

Broker could bid above the Trading 

Crowd’s bid and consummate the cross 

without trading on a final quote price. 

If, alternatively, the final quote was 

only one MPV wide, (i.e., 3.10 bid for 

20 contracts at 3.20 offer for 50 

contracts) the Floor Broker could not 

meet the obligation to the orders 

without trading on a final quote price. 

In this case, the Floor Broker would bid 

above the final quote bid (i.e., bid 3.20) 

or offer below the final quote offer (i.e., 

offer at 3.10), each instance of which is 

equal to a final quote price. The Floor 

Broker would then be obligated to trade 

with the final quote interest at that price 

(i.e., buy 50 at 3.20 or sell 20 at 3.10) 

before crossing the balance of the 

orders. 

Additionally, if, because of movement 

in the markets while the order was 

being brought to the crowd, the limit on 

one of the orders only allowed for a 

cross to be effected at a final quote 

price, regardless of the width of the final 

quote, the Floor Broker would be 


emcdonald on DSK2BSOYB1PROD with NOTICES
66408 Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices 

5The text of the proposed rule change is available 

on the Commission’s Web site at www.sec.gov. 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

required to bid above the final quote bid 

or offer below the final quote offer yet 

still be at a final quote price. Again, the 

Floor Broker would be obligated to trade 

with the final quote interest at that price 

before crossing the balance of the 

orders. For instance, the electronic 

market in the series is 3.00 bid offered 

at 3.30, and the Floor Broker receives 

orders to cross at 3.10 or 3.20. When the 

Floor Broker requests a Final Quote, the 

crowd responds with a market of 3.20 

bid at 3.30. In order to meet the 

obligation to execute the order, the 

Floor Broker would have to offer at 3.20, 

fill the bids in the crowd at 3.20, and 

then cross the balance of the orders. 

Additionally, the Exchange proposes 

to add two commentaries to Rule 6.47. 

Commentary .02 would allow an OTP 

Holder to submit an order that has been 

solicited prior to transmittal to the 

Floor, but would not allow the new 

procedures to be used to circumvent 

limitations on principal transactions as 

described in Rule 6.47A, nor allow the 

OTP Holder to solicit a contra order 

from an NYSE Arca Market Maker 

assigned to the class of options to trade 

against an agency order. 

Commentary .03 would state it is a 

violation of a Floor Broker’s duty for 

best execution to cancel an agency order 

to avoid execution at a better price. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with and 

furthers the objectives of Section 6(b)(5) 

of the Act, in that it is designed to 

promote just and equitable principles of 

trade, remove impediments to and 

perfect the mechanisms 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 will provide 

encouragement for Market Makers to 

provide their best prices earlier, upon 

the initial presentation of trading 

interest to the crowd, and the broker 

will be required to better the crowd’s 

price in order to execute the cross 

transaction. The proposed new process 

should thus increase the possibility of 

price improvement for Customer orders. 

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 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate 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 or disapprove 

such proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2010–90 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–NYSEArca–2010–90. 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.5 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– 

NYSEArca–2010–90 and should be 

submitted on or before November 18, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27266 Filed 10–27–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63163; File No. SR–EDGX– 

2010–14] 

Self-Regulatory Organizations; EDGX 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend EDGX Rule 

11.5 

October 22, 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 October 

20, 2010, the EDGX Exchange, Inc. (the 

‘‘Exchange’’ or the ‘‘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 self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 


emcdonald on DSK2BSOYB1PROD with NOTICES